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ORDINANCE NO. 17,502
AN ORDINANCE AMENDING CHAPTER 8 OF LITTLE
ROCK, ARK. REV. CODE (1988), ADDING A DEFINITION
OF RENTAL HOUSING UNIT; AND FOR OTHER
PURPOSES.
WHEREAS, City code enforcement inspectors have experienced some confusion in the
interpretation of the legal responsibility of owners for code compliance in situation where the owner
claims that the unit under consideration is not a rental unit but is being sold on contract to the
occupant; and
WHEREAS, the housing code does not currently provide for acceptance of contracts of
purchase for the purpose of making a determination whether the unit is a rental dwelling unit or an
owner occupied residence; and
WHEREAS, the Rental Inspection Task Force has recommended that the code be amended
to allow City staff to accept contracts of purchase that contain certain minimum provisions in order
to distinguish between a tenancy and an owner occupied residence; and
WHEREAS, it is in the best interest of the health, safety and welfare of the citizens of the
City that the code be amended to reflect this recommendation.
NOW, THEREFORE BE IT ORDAINED BY THE BOARD OF DIRECTORS OF
THE CITY OF LITTLE ROCK, ARKANSAS:
SECTION 1. Chapter 8 of Little Rock, Ark. Rev. Code (1988) ( "LRC ") is hereby amended
by deleting the definition of Rental housing unit as stated in LRC §8 -574.
SECTION 2. LRC §8 327 is amended by adding to the list in alphabetical order the
following term and its definition:
Rental housing unit. A rental housing unit is defined the same way as Dwelling unit
in this section. The only difference between a dwelling unit and a rental housing unit is that a rental
housing unit is intended to be leased or rented to the occupant.
A unit shall not be deemed a rental housing unit for purposes of this chapter if the
owner of record shall provide to the City satisfactory evidence that another person in possession
and control of the premises has a contractual right to purchase the unit on a date certain for a
specified price and is entitled to receive a warranty deed when the purchase price is paid.
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Satisfactory evidence shall include a valid and enforceable written contract, filed in the deed
records of the Pulaski County Circuit Clerk, which should contain the following provisions:
property;
1. A term for payment or escrow of taxes and assessments levied against the real
2. A term for payment of property insurance covering loss or damage to the
improvements on the property;
3. A tern stating that the buyer is responsible for any and all repairs and maintenance
necessary to maintain the structure and premises in compliance with this code;
4. In a lease with option to purchase arrangement, the buyer or optionee pays the
seller or optionor up -front a reasonable nonrefundable option consideration at the beginning of the
contract which is applied toward the purchase price in the event the option is exercised, and that a
portion of the rent paid during the term of the lease is applied toward the purchase price if the option
is exercised.
PASSED: June 3, 1997
ATTEST:
ROBBIE HANCOCK
CITY CLERK
APPROVED AS TO FORM:
THOMAS M. CARPENTtk
CITY ATTORNEY
APPROVED:
J DAILEY
MAYOR
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