Rental cap exemptions are on the way after City Council’s July 31 meeting.

The exemptions will provide relief to property owners facing financial hardships — but opponents to the exemptions say they will allow for more people to rent than expected.

The rental cap, passed in May, limits the number of rental properties in neighborhoods near campus to 25 percent.

The ordinance creates a new set of criteria for people to recieve a Letter of Compliance (LoC), the document needed to rent out a property.

Under the first exemption, which is the broader of the two exemptions, the property owner must have owned the property as of October 27, 2017, and the property must be the primary residence of the property owner, or the property owner must have obtained a building, electrical, plumbing or mechanical permit within one year before the date of October 27.

Based on a staff report provided at the July 10 meeting, 52 properties would be able to receive an LoC under the permit section of the exemption. Ward One representative Gloria Betcher said the time period used would allow too many people to get an LoC who never intended to get one.

All applications for this exemption must be received by Sept. 1, 2018, and property owners will then be given six months to make the necessary changes to fall in compliance with the LoC.

The second exception is for people who have had a hard time selling their house as a result of the rental cap.

Homeowners may be able to apply for the exemption if they have rental properties surrounding them on three sides — or the substantial equivalent of three sides — and have been on the market for nine consecutive months.

People who apply for this exemption will be required to provide all declined offers on their house.

These houses must have home inspections similar to the previous exception.

At the meeting, the council talked about adding additional language which included “a bonafide rental property.”

The language was created to make exemptions apply for people who rent out single rooms or rent out specifically to family members while continuing to use their property as their main residence. Someone who rents out a single room is referred to as a roomer rather than a renter and does not typically adhere to renting code.

Mark Lambert, lawyer for the City of Ames, recommended the changes, as he believed there could be issues with equal protection of renters under the constitution.

If the city were to define who is a legal renter and who isn’t based on family status, the courts could take issue with that, Lambert said.

At Large representative Amber Corrieri said she has had a family member living with them for years who has been paying rent in that time and asked why they, like other roomers, should not be applicable to the exemptions.

Ward One representative Gloria Betcher said she did not support it, as it would undermine the cap.

“I think it is just one more way to undermine the cap,” Betcher said. “People can get around the cap.”

Betcher started a motion to remove the bonafide renter language which passed 3-2. Ward Four representative Chris Nelson and Corrieri voted against the motion. Ward Three representative David Martin was absent.

“I don’t know how we got this idea that living next to a rental property is the worst thing possible,” Corrieri said, following the motion.

The final passage of the bill, similar to the previous meeting, failed at first on a 2-3 vote. Corrieri and Nelson voted it down so they could take a second look at the “bonafide” language.

At-Large representative Bronwyn Beatty-Hanson, who originally voted against extending the exemptions to non-bonafide renters, said she took issue with not passing the exemptions at all.

“If it fails, no exceptions would be harsh,” Beatty-Hanson said.

After reconsidering the bonafide language addition, the council voted to add the language on a 4-1 vote and subsequently voted for third passage on a 4-1 vote.

Betcher was the sole vote against both motions, while Martin was absent.