An applicant, individual, organization, partnership or
corporation which established, conducts or operates an apartment rental business
or office shall, prior to opening said business or office:
Post a bond or money in the amount of $2,500 with the City Clerk's office to be placed in an interest-bearing account, payable to the applicant subject to § 145-2 (if posted directly by the applicant).
"Apartment rental business or office" shall not include
any business or office which receives a payment conditioned upon the actual
rental of a dwelling unit. "Apartment rental business or office" shall mean
any business or office receiving payment in exchange for one or more addresses
of dwelling units supposedly or allegedly available for rental purposes.
It shall be unlawful for any apartment rental business
or office to advertise, offer or sell a list of one or more address(es) of
dwelling units allegedly available for rental purposes, which address or addresses
are not bona fide available at said time.
In the event that a complaint is registered with the
City Clerk's office regarding the alleged loss of any payment made to an apartment
rental business or office for one or more address(es) of dwelling units allegedly
available for rental purposes, the Housing Officer (or his designee), upon
notice to the apartment rental business or office, shall make a hearing determination
as to whether or not said address(es) are bona fide available rental units.
"Bona fide available rental units" shall mean rental units available for occupancy
contemporaneously with the issuance of the address lists and not advertised
in newspapers or elsewhere and not listed with any real estate agent or broker.
Upon a finding by the Housing Officer (or his designee)
that said address(es) are not bona fide available rental units, the City Clerk
shall be authorized to refund from the posted bond to the consumer the amount
paid by him/her.
In the event that more than one claim is involved and
the total loss exceeds the amount of the posted bond or money, an appropriate
share shall be refunded to the complaining parties.
Any business or office which violates the provisions
of this chapter or which has not complied with the provisions of this chapter
shall not be permitted to operate, and those individuals or corporations found
guilty of violating any of these provisions shall be subject to a fine of
$500 or imprisonment for 90 days, or both.