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Minutes

Committee Hearing, June 15, 2011

Philadelphia City Council Committee HearingsJun 15, 2011

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COUNCIL OF THE CITY OF PHILADELPHIA1 COMMITTEE ON LICENSES and INSPECTIONS - - - Room 400, City Hall3 Philadelphia, Pennsylvania Wednesday, June 15, 2011, 1:20 p.m.4 - - - BILL 100613 - An Ordinance amending Chapter6 9-2800 of The Philadelphia Code, entitled "Universities, Property Owners or Managers and7 Students," by amending Section 9-2805, entitled "Zoning Compliance," by providing for additional8 penalties for certain violations with respect to properties located within Educational Housing9 Districts, all under certain terms and conditions.10 COMMITTEE MEMBERS PRESENT: Maria Quiñones-Sanchez, Chair12 Bill Green William K. Greenlee13 Curtis Jones, Jr. Jack Kelly14 - - -15 2 6.15.11 L&I - BILL 1006131

Councilwoman Sanchez

Good2 afternoon. The Committee on Licenses and3 Inspections will begin its public hearing4 with a quorum being established with5 Councilman Jack Kelly, Councilman Bill6 Greenlee, and temporary appointment of7 Councilman Curtis Jones, and myself as8 the chair, Councilwoman Quiñones-Sanchez.9 We have several folks on these10 panels. If folks have written testimony11 that they want to submit for the record,12 we will make sure that it's on the13 record, and they can summarize their14 testimonies. That would be greatly15 appreciated.16 And we will begin with the17 reading of the bill.18

The Clerk

Bill 100613, an19 ordinance amending Chapter 9-2800 of The20 Philadelphia Code, entitled21 "Universities, Property Owners or22 Managers and Students," by amending23 Section 9-2805, entitled "Zoning24 Compliance," by providing for additional25 3 6.15.11 L&I - BILL 1006131 penalties for certain violations with2 respect to properties located within3 Educational Housing Districts, all under4 certain terms and conditions.5

Councilwoman Sanchez

Thank6 you.7 Before we take testimony, the8 bill's sponsor will open up with some9 comments.10

Councilman Jones

Thank you,11 Madam Chair and members of the committee.12 I, along with Councilman13 Darrell Clarke, want to amend the code to14 provide a process in which landlords,15 property owners, and often offenders will16 face the revocation of their rental17 license through an effective, yet fair,18 three-strikes rule.19 Bill No. 100613 I like to20 affectionately call "a good-neighbor21 bill." This good-neighbor bill will22 allow new and existing residents to23 coexist in a better -- with a better24 coexistence in neighborhoods.25 4 6.15.11 L&I - BILL 1006131 Most importantly the goal of2 this amendment is not to go after and3 punish violators but to improve the4 quality of life for those Philadelphians5 who live in Educational Housing6 Districts. This amendment seeks to be7 more effectively administer existing8 Zoning Code laws that call for three9 non-related members of a household to10 coexist within a domicile.11 Too often, property owners get12 away with illegal housing of as many as13 six, seven, eight non-related members in14 a single-family household, housing15 students often because of the increases16 in population attributed to things that17 I'm not against. I've been a college18 student for the record, but sometimes19 their exuberance gets out of control, and20 existing neighbors, long-term neighbors,21 have suffered. And you will hear22 testimony to that effect.23 We've tragically seen24 intoxicated students often become victims25 5 6.15.11 L&I - BILL 1006131 of crime. In fact, in 19 -- in 2007, I2 had the problem-some distinction of3 picking a St. Joe's student out of my4 neighbor's bushes after being robbed and5 then shot. He went on and then6 recovered, I want to say for the record,7 but that trauma followed him throughout8 the course of his college experience.9 So this is not just for10 residents, this is not just about11 property owners; this is about the12 students as well.13 So what we hope to do today is14 a couple of things. One, we've15 circulated an amendment that deals with16 the length of time that violations occur17 and over what period of time that would18 be. And also, then, what the subsequent19 length of revocation of a renter's20 license would be, which is up to three21 years.22 I want to state for the record,23 Madam Chair, that HAPCO has submitted24 testimony. They have not chose to come25 6 6.15.11 L&I - BILL 1006131 here, but they have submitted written2 testimony, and they are against this bill3 for their own reasons.4 But I think what we will hear5 is a number of stakeholders, from6 universities to community groups to7 individual residents, who have had to8 live with this.9 I'd like to also acknowledge,10 Madam Chair, that this didn't start with11 my election to City Council. Another12 Councilperson from the Fourth started13 this process; he went on to become mayor14 but had to deal with a lot of the issues15 from the Overbrook Farms side to the16 Wynnefield side to the Manayunk side to17 the East Falls side, dealing with a18 number of universities in between. And19 so, we are building upon the shoulders of20 giants that have had to live with this21 before and have had to legislate before.22 So I thank you for your23 indulgence, Madam Chair.24

Councilwoman Sanchez

Thank25 7 6.15.11 L&I - BILL 1006131 you.2 We will now proceed with the3 Administration testifying first.4 Miss Maura Kennedy, Director of Strategic5 Initiatives, at the Department of6 Licenses and Inspections.7 (Witnesses come forward.)8

Councilwoman Sanchez

Good9 afternoon.10

Ms. Maurer

Good afternoon,11 Madam Chair and members of the Committee12 on Licenses and Inspections. My name is13 Maura Kennedy, Director of Strategic14 Initiatives for the Department of15 Licenses and Inspections.16 I appreciate the opportunity to17 present testimony on Bill No. 100613,18 which was introduced by Councilman Jones,19 and to answer any questions that you may20 have.21 The Administration supports the22 bill, with the proposed amendments23 offered by the bill's sponsor. The24 proposed ordinance amends a portion of25 8 6.15.11 L&I - BILL 1006131 the code related to Educational Housing2 Districts in order to hold landlords who3 repeatedly violate City laws related to4 housing more accountable5 The goal of this legislation is6 twofold: It prevents landlords who7 repeatedly break the law from being able8 to benefit from their behavior by cutting9 off the source of their income. It also10 provides neighbors relief from the daily11 quality-of-life issues that can be caused12 by noncompliant rental properties.13 Under the proposed ordinance,14 property owners that have been found by15 the courts to be in violation of the16 provisions contained in the Educational17 Housing District Code three times within18 three years will immediately have their19 property-management-related licenses20 revoked. The revocation will also occur21 should the property owner fail to pay22 fines or fail to comply with any orders23 related to previous offenses.24 In addition to the immediate25 9 6.15.11 L&I - BILL 1006131 revocation of the licenses held by the2 scofflaw property owner, the ordinance3 provides that no new property-management4 license shall be granted to that property5 for a period of three years after the6 revocation. This three-year prohibition7 runs with the property in order to avoid8 the straw transfer of the property to9 circumvent the ordinance10 A person that purchases a11 property subject to the prohibition can12 reapply for the necessary housing13 licenses and can strike the prohibition14 from the property by producing a realty15 transfer tax receipt as evidence of a16 legitimate purpose.17 I'd like to thank Councilman18 Jones and his staff for working with the19 Administration in crafting the language20 for this proposed amendment21 I'm happy to answer any22 questions that you may have at this time.23 Thank you24 COUNCILWOMAN SANCHEZ:25 10 6.15.11 L&I - BILL 1006131 Commissioner, did you want to add2 something?3 DEP. COMM. MAENNER: No.4

Councilman Jones

I'm going to5 limit -- my chairperson says less is more6 by way of comment, but I want to, for the7 record, say the Administration has worked8 from day one to help this situation,9 whether with residents from the community10 working on a task force, a strike force11 that has paid particular attention to12 some of the town-and-gown issues. The13 university has cooperated to the degree14 that they can.15 And so, I am thankful for the16 cooperation. And on behalf of the17 residents of the Fourth Councilmatic18 District, we hope that this is a step in19 the right direction to send a signal that20 we take these things seriously.21 We welcome new neighbors and we22 want them to enjoy everything that23 college experience has to offer. We even24 want them to stay beyond their25 11 6.15.11 L&I - BILL 1006131 educational experience and become2 residents. But we want them to be3 respectful of folk that have made a4 commitment, a permanent commitment to5 these communities.6 So I just want to thank you for7 your insight and letting us know about8 unintended consequences and sharpening9 our pencils to the legislation.10 So thank you.11

Ms. Maurer

You're welcome.12

Councilwoman Sanchez

I have13 one question as it relates to this, as14 stipulated in HAPCO's letter around the15 legality of it.16 Could you speak to that? They17 have a concern. I don't know if you have18 a copy of the letter that HAPCO19 submitted.20

Councilwoman Sanchez

'Cause22 they challenge our ability to have the23 power to implement this ordinance, that24 this -- that only the General Assembly.25 12 6.15.11 L&I - BILL 1006131 Can you, for the record, state whether2 this is true?3

Ms. Maurer

Which section of4 the letter are you referencing?5

Councilwoman Sanchez

On page6 2 of the HAPCO letter, it says "concerns7 about the legality of the proposed8 amendment, specifically around the Home9 Rule Charter delineates the City's10 powers." And they're saying that in11 that, the General Assembly is the only12 one that would have the power to13 legislate this around the denial of the14 license.15 I just want for the record --16 I'm assuming this issue came up with the17 initial bill that created the Student18 Housing Districts, so I just wanted to19 clarify that for the record.20 Have we been challenged in the21 student housing bills before? Has22 anybody legally challenged us in the23 past?24

Ms. Maurer

To my knowledge,25 13 6.15.11 L&I - BILL 1006131 no.2

Councilwoman Sanchez

Okay.3

Ms. Maurer

And revoking HILs4 is something we do do regularly.5

Councilman Jones

Also, Madam6 Chair, if I may.7 For the record, HAPCO submitted8 this letter this morning, and we9 immediately called the Law Department to10 check on that.11

Councilwoman Sanchez

Okay.12

Councilman Jones

And they13 assured us that that would be like if a14 license in a store, because of a15 violation, was revoked, that we had, we16 are well within our purview to do this.17 But, obviously, that's why we have the18 City Solicitor's Office that will19 safeguard our interests as a municipality20 in this regard.21

Councilwoman Sanchez

Okay.22 Thank you.23 I just wanted that for the24 record in response to that, because I25 14 6.15.11 L&I - BILL 1006131 would think that HAPCO, if there were2 some concerns around the initial creation3 of the housing districts, that they would4 have challenged us before versus now.5 And if nothing like that's happened, then6 I just wanted to make sure that that was7 the case.8 Okay. Well, thank you. Thank9 you, Commissioner.10 DEP. COMM. MAENNER: Thank you.11

Councilwoman Sanchez

Next we12 have a panel from the community:13 Kevin Maurer;14 Michael Reid, from Wynnefield15 Residents Association and Overbrook16 Farms;17 Chris Roller, from Wissahickon18 Interested Neighbors;19 And a Tom Saurman from East20 Falls;21 And a Meg Greenfield.22 (Witnesses come forward.)23

Councilwoman Sanchez

We can24 start with three, and the other two can25 15 6.15.11 L&I - BILL 1006131 stand by.2

Mr. Maura

Madam Chairperson,3 I am Kevin Maura, President of the4 Overbrook Farms Club, and I am here today5 to testify in support of the bill.6 The Overbrook Farms community7 is on the National Historic Register and8 is a neighborhood single-family9 residential homes with historical10 significance.11 Due to our proximity to the12 St. Joseph's University campus, we are13 plagued with a number of rental14 properties that do not stay within the R115 zoning requirements of no more than three16 unrelated persons in a residence, and17 have an adverse impact on our community.18 We support our councilman,19 Curtis Jones, in this legislation because20 within our neighborhood, our community21 members have been continually reporting22 violations to Licenses and Inspections,23 in attempts to get the current zoning24 enforced, with little success.25 16 6.15.11 L&I - BILL 1006131 We have found that boarding2 houses in our community create hardship3 for the neighboring property owners due4 to the creation of insufficient parking5 and the trash and noise that typically6 spill from these properties.7 The City is also missing out on8 tax revenue that is owed because many of9 these priorities are unlicensed and are10 not paying taxes on the revenue they11 produce.12 The single-family house located13 next to mine has been used to house up to14 eight St. Joseph's University students15 for the past seven years, resulting in16 calls to the police for underage drinking17 and excessive noise; and, in two cases,18 an assault on my family and damage to our19 property after students came over our20 fence, into our yard to escape the21 police.22 Clearly, the current law does23 not prevent the abuses that Overbrook24 Farms and other neighborhoods that are in25 17 6.15.11 L&I - BILL 1006131 close proximity to a university campus2 are experiencing at the hands of these3 landlords, many of whom don't even live4 in the City.5 As taxpayers and voters in the6 City of Philadelphia, the residents of7 Overbrook Farms and the Overbrook Farms8 Club would like to see more stringent law9 and enforcement that is being proposed by10 Councilman Jones passed by the11 Philadelphia City Council.12 Thank you.13

Councilwoman Sanchez

Thank14 you.15 Michael Reid.16

Mr. Reid

Yes, Madam Chair.17 My name is Michael Reid, and I live at18 2341 North 52nd Street, in Wynnefield. I19 am Vice President of the Wynnefield20 Residents Association, and I'm here to21 support Bill No. 100613.22 I'd like to state for the23 record that I live -- next door to me, a24 house was bought in 2009 by a Kimberly25 18 6.15.11 L&I - BILL 1006131 Wannop. And when I met Ms. Wannop, she2 told me, in 2009, that she had no plans3 to put students in there. Well, six4 months later, here comes eight students5 moving.6 In 2009, I called L&I. L&I's7 been very helpful. They came and8 inspected the property on August 2009,9 and they were found to be more than three10 unrelated persons there. A reinspection11 was done on 11/18/09, and the property12 was found noncompliant, and the inspector13 immediately sent the case to court.14 This case was heard in the15 Court of Common Pleas on May 13th, and16 the judge found the owner out of17 compliance and handed a $10,00018 injunction to be imposed if they ever19 were found to have that situation again.20 Well, that didn't deter the21 owner. In fact, two weeks after that,22 two more students moved in. Licenses and23 Inspections returned to the house and24 found it to be out of compliance. The25 19 6.15.11 L&I - BILL 1006131 case was brought back to court.2 Not to belabor. What happened3 was, it went to court again, and the4 judge gave the owner three, four weeks to5 comply to get the house down into6 compliance. Well, what the owner did was7 brought pictures back that showed that8 there were -- three of the rooms9 padlocked.10 We live in a neighborhood where11 there's single-family homes, and there's12 six to seven bedrooms per house. Well,13 the judge said he did not like the law,14 and he was not going to impose the fine15 because he did not like the law.16 So consequently, when they17 brought the pictures back, the judge said18 he was satisfied, and the case was19 dismissed. So we get no help even from20 the courts.21 It appears L&I does their jobs;22 the community leaders, we do our jobs.23 Subsequently now, these students live --24 they look at us with disdain and with the25 20 6.15.11 L&I - BILL 1006131 behavior as "We can do what we want to2 do, and there's nothing you can do about3 it."4 We have to clean trash up on5 Saturdays and Sundays from after parties.6 There's no parking on our block; and not7 only on my block; there's quite a few8 houses in Wynnefield that are in the same9 condition.10 So we are strongly in favor of11 the bill so that, hopefully, we can get12 some relief.13

Councilwoman Sanchez

Thank14 you.15 I have someone that was added,16 a Charles Dennis.17

Councilman Jones

Saurman, I18 think.19

Councilwoman Sanchez

Okay.20 You can proceed. I just want to make21 sure I don't miss out on the community22 residents.23

Mr. Sauerman

Sure. 11 L&I - BILL 1006131 and I am President of the East Falls2 Community Council. 8 We very much appreciate the9 support of Councilman Jones in this10 regard. The bill that he has introduced,11 as amended, will strengthen the tools L&I12 has at its disposal. 11 L&I - BILL 1006131 East Falls is the home of2 Philadelphia University, Eastern3 University, and Drexel University School4 of Medicine. Our quality housing, good5 public transportation, and location6 attract other students from Temple7 University, St. Joe's, LaSalle, and many8 other schools around the City. 18 However, college students are19 not always the best neighbors. 3 All too often, the students4 exceed the City's limit of no more than5 three unrelated persons in one6 residential unit. Each of those students7 is often likely to have their own car,8 and those cars crowd our streets. 17 And while the actions of the18 college students are often the cause of19 the complaint, the source of the problem20 is the landlord. 2 If you look at that sheet, you3 will see three pages of single-spaced4 listings of landlords who rent. The5 majority of those landlords do not pay6 their renter's license fees. 17 We have contacted many of these18 landlords to request their cooperation19 only to be met, in most cases, with20 silence. 11 L&I - BILL 1006131 problem. Or they say, Oh, they didn't2 know. 11

Councilwoman Sanchez

Thank12 you.13 You may proceed.14

Ms. Greenfield

My name is Meg15 Greenfield. I chair the Zoning and Land16 Use Committee of East Falls Community17 Council, and I appreciate, Madam Chair,18 and Councilman Jones and Councilman19 Greenlee, the opportunity to speak to you20 today.21 I have worked for a number of22 years with neighbors who suffer through23 the problems that Tom has described and24 Philadelphia University and the Police25 26 6.15.11 L&I - BILL 1006131 Department to deal with the students who2 are not good neighbors; and, I should3 say, to deal with the landlord who are4 not good neighbors.5 We need your help to deal with6 the landlords who fail to register their7 rental properties and fail to abide by8 the ordinances of the City. The9 violations have resulted in anguish on10 the part of longtime residents and the11 departure of newer residents who had12 hoped to stay and raise families here.13 And those are very significant losses.14 We appreciate the support of15 Councilman Jones in trying to address our16 problems which are shared with our17 friends who live near St. Joe's18 University.19 I want to address the20 amendments proposed by Councilman Jones.21 Enforcement of all code requirements for22 licensing is key to improving compliance.23 Any landlord who repeatedly violates any24 of the rules, whether by not obtaining a25 27 6.15.11 L&I - BILL 1006131 license, not adhering to the no-more-2 than-three-unrelated-persons-in-a-3 residential-unit rule, which is across4 the City and not merely in Educational5 Housing Districts, or failure to comply6 with the other terms of the Educational7 Housing Ordinance, or failure to pull a8 permit when he's doing construction,9 should not be allowed to continue to rent10 the property in question to anyone.11 We suggested, and our12 councilman agreed, that three strikes is13 a good rule, whether you're fined or not.14 A violation is a violation; three15 strikes, and you're out of the game for16 three years.17 But it's unclear to me whether18 safety violations would trigger this19 three-strike rule. They clearly should.20 Whether it's the failure to21 have working smoke detectors, failure to22 meet the fire code, or construction done23 without required permits or inspections,24 each of these presents a safety hazard to25 28 6.15.11 L&I - BILL 1006131 the tenants and to all neighbors in a row2 of attached houses.3 Each such violation should be a4 strike against you under this ordinance;5 and to the extent it's not, I would ask6 for further amendment.7 I have a question for the8 panel, and I don't know whether you know9 the answer, and I'm sorry that L&I has10 left.11

Councilwoman Sanchez

They're12 here.13

Ms. Greenfield

Maybe they can14 tell us.15 Does L&I share a list of rental16 properties, licensed or otherwise, with17 the Revenue Department so that the18 Revenue Department can make sure that the19 income is being reported and taxes paid?20 L&I should be required to do so, and the21 Revenue Department should be required to22 follow up.23 I suspect strongly, though I24 can't prove it, that the people who don't25 29 6.15.11 L&I - BILL 1006131 bother to pull licenses are also not2 reporting their income to the feds, the3 State, or the City. The cost of the4 license is too little; unless, of course,5 they don't want to be inspected and found6 otherwise out of compliance.7 So I ask that that information8 be shared on a regular basis and that9 whenever L&I finds an unlicensed10 property, it immediately reports that11 property owner to the Revenue Department12 for follow-up.13 We commend Councilman Jones for14 this bill. We urge your support in15 making this bill as strong as can be.16 We need one more thing from17 you: A mandate for enforcement. A part18 of our problem is the landlord's19 perception that L&I cannot, or will not,20 enforce the rules. And that means it21 needs the support of the City Solicitor's22 Office. Please give L&I the tools, and23 make sure that enforcement happens.24 Perceptions and reality must25 30 6.15.11 L&I - BILL 1006131 change for the health, safety, and peace2 of mind of the neighbors and tenants and3 to preserve and improve our4 neighborhoods.5 Thank you for the opportunity6 to appear before you.7

Councilwoman Sanchez

Thank8 you.9 I don't know if anybody else10 has any testimony. I don't know if11 Miss Kennedy wants to come back and12 clarify for the record, 'cause we do do a13 cross reference with the Revenue14 Department and recently, over the last15 couple of years, have strengthened that.16 But I don't know if she wants to put that17 on the record so folks get that18 clarified.19 And if you could please stay,20 because councilman Greenlee has some21 questions for the panel, so you can stay.22 (Ms. Kennedy and Deputy23 Commissioner Maenner return to witness24 table.)25 31 6.15.11 L&I - BILL 1006131

Councilwoman Sanchez

But I2 just wanted Miss Kennedy to --3

Ms. Maurer

Thank you,4 Councilwoman.5 We do cross-reference when find6 that someone is not in compliance and7 does not have a housing inspection8 license. We make them -- you know, they9 have to come in into compliance and get10 one.11 And before you can do that, you12 need to obtain a business-privilege13 license and a Philadelphia tax ID number,14 and that's the mechanism through which15 Revenue, and that's the mechanism through16 which Revenue enforces the fact that they17 are paying taxes.18 And also, to address the19 previous panel's other question regarding20 what types of violations would fall under21 this enforcement tool: All types of22 violations.23 So any violations that are24 adjudicated by the courts, you know, to25 32 6.15.11 L&I - BILL 1006131 be deemed an issue would fall under this,2 whether they're a fire code or you know,3 property maintenance issues.4

Councilwoman Sanchez

Thank5 you. I thought that was important to say6 for the record.7 I want to acknowledge8 Councilman Bill Greenlee.9

Councilman Greenlee

Thank10 you, Madam Chair.11 Actually, two questions. One12 you brought up. Just so I'm clear on the13 bill, these are violations that the14 strikes, if you will, they go just on the15 written violations, or when they go to16 court? I'm not clear.17

Ms. Maurer

So this would be18 triggered by three types -- three issues19 that are adjudicated by the courts and20 found to be an issue, so deemed out of21 compliance by the courts.22

Councilman Greenlee

So they23 have to go to the court.24

Ms. Maurer

Right.25 33 6.15.11 L&I - BILL 1006131

Councilman Greenlee

So in2 that case, Mr. Reid's issue, that3 wouldn't have counted as a strike because4 the judge threw out the violation,5 correct?6

Councilman Greenlee

Am I8 right?9

Ms. Maurer

Right.10

Councilman Greenlee

Okay.11

Ms. Maurer

So our procedure12 is that we issue three citations, three13 violations.14

Councilman Greenlee

Right,15 right.16

Ms. Maurer

And then after17 that, we take them to court.18

Councilman Greenlee

Mm-hmm.19

Ms. Maurer

And then it's in20 the court's hands to decide what the next21 appropriate action is.22

Councilman Greenlee

So --23 wait a minute. Just so I'm clear, so24 that strike doesn't count until there's a25 34 6.15.11 L&I - BILL 1006131 judgment by the court; am I right?2

Ms. Maurer

Right.3

Councilman Greenlee

Okay. I4 wasn't clear on that 'cause I -- and I5 don't -- judging by Ms. Greenfield's6 face, I don't think she understood that7 either.8

Ms. Greenfield

Yeah, I9 didn't. And may I say that that bothers10 me, because all the landlord has to do is11 say, Okay, you're right, I did it, I'll12 pay my fine. And it never goes to court,13 and he never get three strikes.14

Councilwoman Sanchez

No, no,15 no. I think the clarification is that16 once there's some sort of judgment issued17 in Equity Court. So a fine is a18 demonstration of a definite strike.19

Ms. Greenfield

Yeah, but if20 I'm a landlord, and I agree with your21 finding, and it never goes to court, then22 it won't count, from what I understand23 her to be saying.24

Ms. Maurer

So if we went25 35 6.15.11 L&I - BILL 1006131 through the court process and they came2 into compliance after the court process3 has been started, we would have a4 negotiated guilty plea, and that would5 still count as a strike in that case.6

Ms. Greenfield

And suppose7 the person agrees with you before you8 ever get to the court process? You serve9 a notice of violation, and the person10 says, "You're right."11

Councilwoman Sanchez

That's a12 guilty plea. That's what her point is.13 (Indiscernible; parties talking14 over each other.)15

Ms. Maurer

If you come into16 compliance prior to we escalate it to17 court, that would be our end goal there.18 The property would be back into19 compliance with the Property Maintenance20 Code standards.21

Ms. Greenfield

And that would22 be the end of it, and it wouldn't count.23 And yet, they could do that over and over24 and over again.25 36 6.15.11 L&I - BILL 1006131

Councilman Greenlee

No.2 Madam Chair?3

Councilwoman Sanchez

Go4 ahead.5

Councilman Greenlee

I'm6 trying to help straighten this out. The7 fine doesn't happen till there starts to8 be a court action, right?9

Ms. Maurer

Right.10

Councilman Greenlee

I mean,11 when your initial violation is written --12

Ms. Maurer

Fines are imposed13 by the court.14

Councilman Greenlee

Okay,15 right. So if they paid a fine,16 Miss Greenfield, they would be --17

Ms. Greenfield

I know -- I18 understand that. I had understood that19 we were no longer going to require a fine20 in order to be found -- or an order to21 have a strike.22 Now I -- because it is my23 understanding that sometimes the courts24 do not impose fines. They may find you25 37 6.15.11 L&I - BILL 1006131 guilty not impose a fine.2

Councilwoman Sanchez

But the3 guilty is the trigger.4

Ms. Maurer

Right.5 (Indiscernible; parties talking6 over each other.)7

Ms. Greenfield

And that's8 what my problem is, that it requires a9 guilty plea of some kind at the court10 level, even if it's by agreement, in11 order to be a strike.12 And, therefore, you could have13 a landlord who, three times in three14 years, rents to five kids, gets caught,15 comes into compliance conveniently at the16 end of the school year, and does it all17 over again at the next year. And he will18 never lose his license.19

Councilman Jones

Well, let's20 clarify. I think it's important; that's21 why we have hearings, to clarify what a22 strike is.23 And so, for the record, so that24 it is encoded in the law, that a strike25 38 6.15.11 L&I - BILL 1006131 means that you have cited him, and that2 they have gone to court irrespective -- I3 guess, Miss Greenfield's issue is, if I4 negotiate it out of court, I said, Well,5 you know, that fire extinguisher was not6 there; I just went and got one. Is that7 a strike?8 DEP. COMM. MAENNER: No.9

Ms. Maurer

Not all violations10 are strikes. Only ones that have been11 adjudicated by the courts are strikes.12

Ms. Greenfield

That's my13 problem.14

Councilman Jones

All right.15

Councilwoman Sanchez

Duly16 noted.17 Councilman Greenlee had another18 question.19

Councilman Greenlee

Okay.20 And just to add to that, there's probably21 a legal reason why it has to be that way,22 I think.23

Ms. Greenfield

Not if they24 agree.25 39 6.15.11 L&I - BILL 1006131 (Indiscernible; parties talking2 over each other.)3

Councilwoman Sanchez

Wait,4 wait, wait, wait.5

Ms. Maurer

We always need to6 give the owner the legal right --7

Councilman Greenlee

Yeah.8 There has to be a process.9

Ms. Maurer

-- to comply with10 the violation before we can take11 enforcement action.12

Councilman Greenlee

Right.13 And let me just ask another question14 while you're up here. I was thinking15 about it and forgot it before you16 finished your testimony.17 What are the kind of things18 that you look for, or an inspector looks19 for, to determine if you're violating the20 more than three persons. Like in21 Mr. Reid's thing, it was kind of obvious22 that there's six bedrooms, and they all23 look occupied. But I know there are some24 that aren't maybe as clear-cut. You25 40 6.15.11 L&I - BILL 1006131 know, maybe, you know, two or three2 people staying in a bedroom that's only a3 two- or three-bedroom house. You know,4 that kind of thing.5

Councilman Greenlee

So I'm7 wondering what you kind of look for.8

Ms. Maurer

I'll defer to9 Deputy Commissioner Maenner for this10 question.11

Councilman Greenlee

All12 right.13 DEP. COMM. MAENNER: Good14 afternoon.15

Councilman Greenlee

Good16 afternoon.17 DEP. COMM. MAENNER: My name is18 Mike Maenner. I'm Deputy Commissioner of19 Licenses and Inspections.20 The inspector goes into the21 field, they can walk through a property.22 They look for personal items --23

Councilman Greenlee

Right.24 DEP. COMM. MAENNER: -- of more25 41 6.15.11 L&I - BILL 1006131 than three people; maybe pictures, books,2 computers.3 They look for a lease, whether4 it's signed by three or less people.5 There are many properties that6 do have four bedrooms.7

Councilman Greenlee

Right.8 DEP. COMM. MAENNER: I have9 four bedrooms in my house, but there's10 only three people that live there. So11 you can't go by the number of bedrooms.12

Councilman Greenlee

Mm-hmm.13 DEP. COMM. MAENNER: So they do14 their due diligence in trying to15 ascertain how many people live in the16 property.17

Councilman Greenlee

Yeah.18 The reason I bring that up, I know19 sometimes that's a dispute. And,20 obviously, these problems are more21 intense, I think, around universities.22 But it's really all over the23 City. I know in my area, we have a lot24 of that. You know, students live in25 42 6.15.11 L&I - BILL 1006131 houses; they're renters. Oftentimes the2 renters, like in Mr. Reid's case and, I'm3 assuming, in East Falls from the evidence4 you gave, they don't live anywhere near5 the community, so they don't really care6 a heck of a lot about what goes down7 there. It's kind of an income-producing8 thing.9 So, okay. I just wanted to10 make clear what you kind of look for in11 determining, you know, what decides12 whether there's more than three people13 there, 'cause I know sometimes in my14 area, we got this thing, "Well, this is15 my brother. He's staying over for a16 couple of days."17

Councilwoman Sanchez

Mm-hmm.18

Councilman Greenlee

Or "This19 is my girlfriend, who stayed over20 tonight." You know, that kind of thing,21 you know.22 So I guess in some ways it has23 to be a judgment call, I guess.24 DEP. COMM. MAENNER: Well, you25 43 6.15.11 L&I - BILL 1006131 understand the difficulties.2

Councilman Greenlee

Yeah, no.3 That's what I mean. That's why I sort of4 wanted to get it on the record.5 All right. Thank you.6 Thank you, Madam Chair.7

Councilman Jones

Madam Chair?8

Councilwoman Sanchez

Yes,9 Councilman Jones.10

Councilman Jones

One of the11 things we have to clarify -- and I see12 Meg's point -- is that when we have13 that -- where there is a citation and14 then there is a remediation, that that15 fire extinguisher was not there, and16 then, you know, we allow them opportunity17 to correct it, that still doesn't18 mitigate the strike.19 And how do we -- the question20 becomes: How do we then maintain that?21 Even though the court interprets that you22 should have a time to correct the23 violation or remove the problem. But24 it's still a cited problem that we have25 44 6.15.11 L&I - BILL 1006131 memorialized somehow.2 And I don't know how -- speak3 freely.4 DEP. COMM. MAENNER: Sometimes5 property owners are victims of vandalism;6 for instance, graffiti. The property7 owner didn't put the graffiti. Now, in a8 case like that, they may be victimized9 twice.10

Councilman Jones

Mm-hmm.11 DEP. COMM. MAENNER: Somebody12 could come by and tear down their copper13 downspout; now the property owner gets14 victimized twice.15 So it's clear that when a court16 or a negotiated guilty plea happens, then17 that's a strike.18

Councilman Jones

Okay. What19 I would like to do is work with Judge20 Dembe to have a different -- there's two21 things that have to happen in concert22 with this law:23 One, enforcement. That's one24 shoe that has to fall that we are going25 45 6.15.11 L&I - BILL 1006131 to vigorously go out and look for these2 things.3 And then the second thing is4 that once it gets into the court system,5 that there is a greater emphasis placed6 on the concerns of town-and-gown issues7 in the court.8 And I think that may be a9 meeting that we will have over the summer10 with Judge Dembe, to try to kind of11 sensitize the courts to some of the12 gravity of the issues.13 And I don't know if there's a14 way to tighten it without -- tighten the15 law today without violating the rights of16 the property owners, which I do not want17 to do.18 But I want to kind of intensify19 what the potential loss is, and I think20 this bill does that.21 But what we have to do is two22 prongs: Enforcement and also the23 interpretations of the court on how24 serious this is.25 46 6.15.11 L&I - BILL 1006131 Thank you, Madam Chair.2

Councilwoman Sanchez

I have3 one more question.4 Do you have another questions,5 Councilman Greenlee?6

Councilman Greenlee

Yeah,7 just one thing on a kind of a follow-up8 if I could.9 I guess maybe a legal problem10 could be -- and I'm just throwing this11 out there as a thought. Basically, the12 L&I violations, I guess, could almost be13 called "accusations" against the owner.14 And until it gets to the court,15 you can't really probably make that16 legally enforceable as far as these17 penalties. Am I saying that kind of18 right?19 I mean, they're violations but,20 they're -- you know, they're contestable,21 I guess is the --22 DEP. COMM. MAENNER: They're23 contestable, correct.24

Councilman Greenlee

It isn't25 47 6.15.11 L&I - BILL 1006131 until they get to court or pay the fine2 that they're actually guilty.3 DEP. COMM. MAENNER: Correct.4

Councilman Greenlee

I mean,5 am I saying that sort of right?6 DEP. COMM. MAENNER: Yes.7

Councilman Greenlee

Okay.8

Ms. Greenfield

And my,9 question with all due respect, is whether10 there this is a way that this can be11 shaped so that at least certain12 violations, where the landlord is clearly13 in violation and in control; I'm not14 talking about downspouts, which are15 outside.16 But a landlord should have some17 responsibility for figuring out how many18 people are living in his house. And a19 landlord has an uncontestable20 responsibility for putting certain things21 in his lease under the terms of the22 Educational Housing Act and doing certain23 things there; which, if he doesn't do24 them, he can't blame on somebody else.25 48 6.15.11 L&I - BILL 1006131 And I don't think it should2 turn on whether he's gotten a fine or3 whether he kind -- to make it a strike,4 or whether he brought himself into5 compliance and does so repeatedly only6 after he's caught, when he cannot blame7 anyone but himself.8 And there has to be some kind9 of presumption, at least for some of10 these violations, that you didn't do it,11 and you should have done it, and you12 don't have any excuse, and you can't13 blame anyone else, and you've been told,14 and you had notice, and you haven't15 proven to us that it didn't happen.16 You're not contending it didn't happen.17 And it goes on over and over and over18 again.19 Now, I've never drafted20 legislation. I don't remember enough21 from law school to be able to say whether22 it's draftable to cover this kind of23 situation.24 But for chronic evaders, there25 49 6.15.11 L&I - BILL 1006131 ought to be something we can do short of2 having to go to court. The resources it3 takes to do that. Maybe we need an4 administrative procedure, which is a5 formal hearing. And then if they want to6 appeal to the court, fine, but they've7 had their day in court and the8 administration process. And that is used9 in many areas.10

Councilman Jones

I'm sorry,11 Madam Chair.12 Two parts of your question.13 Are there violations that you deem so14 serious that there's a cease-and-desist15 right away?16 DEP. COMM. MAENNER: Yes.17

Councilman Jones

Pardon me?18 DEP. COMM. MAENNER: Yes.19

Councilman Jones

All right.20 So what are they?21 DEP. COMM. MAENNER: We have a22 cease-operations policy. Severe23 life-safety issues, structural24 instability of a building, violations of25 50 6.15.11 L&I - BILL 1006131 putting up an addition without a permit.2

Councilman Jones

So those3 things we still have as tools right away,4 that if we came on a building and that5 was in violation of those particular6 categories, we could shut 'em down right7 away.8 DEP. COMM. MAENNER: And that's9 still subject to a temporary restraining10 order. The person could get a temporary11 restraining order against our action.12

Councilwoman Sanchez

I want13 to recognize Councilman Green.14 I guess one of the15 frustrations, and we see it all the time16 sitting at this side of the table, is17 that we write laws for the bad guys. And18 bad guys are bad guys. And so then, you19 have all of these good guys and then you20 have all of these bad guys.21 My question is, if you can22 clarify, cause, for instance, I'm looking23 at the list provided by Mr. Saurman. And24 there's a William H. Ross III who has25 51 6.15.11 L&I - BILL 1006131 eleven properties. No licenses.2 And I think the frustration is,3 what are we --4

Ms. Greenfield

That's just in5 the three-block area.6

Councilwoman Sanchez

That's7 just in the three-block area?8

Ms. Greenfield

He owns a lot9 more than that.10

Councilwoman Sanchez

So I11 guess the question is, notwithstanding12 this legislation that obviously has to13 pass legal muster: What do we do with14 these chronic of kind violators?15 DEP. COMM. MAENNER: That list16 is approximately a year, a year-and-a-17 half old. I can provide an updated list18 for --19

Councilwoman Sanchez

So he's20 come into compliance for all these21 properties?22 DEP. COMM. MAENNER: I don't23 know.24

Councilwoman Sanchez

Okay.25 52 6.15.11 L&I - BILL 1006131 So that's the frustration.2 (Indiscernible; parties talking3 over each other.)4

Councilman Jones

Madam Chair,5 you're right on point. There are two6 things that we have to do. We have to7 tighten the laws and then8 administratively tighten the screws.9

Councilwoman Sanchez

Mm-hmm.10

Councilman Jones

And to be11 able to kind of take this a little more12 seriously.13 We've got a lot of other14 problems as a municipality but these are15 problems that are the quality-of-life16 problems that drive people out of the17 City.18

Councilwoman Sanchez

I agree.19 Councilman Green you wanted to20 add?21

Councilman Green

Yeah.22 Mr. Maenner, can you explain23 why a list has been floating around with24 a landlord that does not have rental25 53 6.15.11 L&I - BILL 1006131 licenses, and we don't know the answer2 for this hearing of whether or not the3 person is in compliance?4 In other words, isn't a large5 part of the frustration of communities6 the complete lack of enforcement of the7 laws that we do pass and that exist. And8 isn't that just as likely to be the case9 when we pass this law?10 DEP. COMM. MAENNER: I didn't11 see that list until I came into this12 room.13

Ms. Greenfield

I received it14 from you, Mr. Maenner.15 DEP. COMM. MAENNER: A16 year-and-a-half ago.17

Ms. Greenfield

A year-and-a-18 half ago.19

Councilwoman Sanchez

Okay.20

Ms. Greenfield

And you can't21 tell us whether --22 (Indiscernible; parties talking23 over each other.)24

Councilwoman Sanchez

Okay.25 54 6.15.11 L&I - BILL 1006131 This back-and-forth is not appropriate.2 Let the Commissioner respond.3 DEP. COMM. MAENNER: We've4 provided updates since then. I don't5 have the updated list with me.6 But yes, we go out -- every7 time we get a complaint, we go out and we8 make an inspection of that property.9

Councilman Green

So I10 personally would like to get to see11 what -- if you could provide to the Chair12 a copy of that list updated to today,13 with any violations that were issued14 during that time period.15 I mean, the fundamental problem16 here is one of enforcement. And you17 won't answer the question, not because --18 'cause you can't, 'cause of the position19 you're in. But I'll answer it for you.20 And the answer is: We don't21 have enough inspectors. Inspectors don't22 work on weekends usually. They have23 to -- okay, our problem is, we're not24 investing the resources in L&I, in25 55 6.15.11 L&I - BILL 1006131 Revenue, in the departments that really2 are in charge of quality of life in3 neighborhoods. And so, I think that's4 part of the problem.5 With respect to your issue6 about the law, I'm not sure we can do7 something on a violation. It has to be8 proven to actually be true, so there'd9 have to be a hearing process.10 So I think the way the law is11 written works. And if it doesn't work,12 then we can amend the law. But let's see13 if we can make some progress here, is14 what I would suggest.15 So those are my only comments.16 Thank you.17

Ms. Greenfield

Thank you very18 much, Councilman.19 DEP. COMM. MAENNER: Just to20 add to that, we have an R2 program. And21 what do is, we get a delinquent list of22 licenses, and our inspectors go to those23 properties to make the -- sometimes the24 license is -- the property was bought by25 56 6.15.11 L&I - BILL 1006131 a property owner and it's no longer a2 rental property.3 But we do -- we are proactive4 in the delinquent licensing list.5

Ms. Maurer

One other thing I6 wanted to add too is that you probably7 saw an announcement we made a couple8 weeks ago about our lapsed license9 project.10 We're actually just taking the11 time right now to cull through all of12 our -- there's approximately 65,000 HILs13 along with all of our other different14 types of licenses. We contact the owners15 of the lapsed licenses, go out there and16 reinspect, and try get those people back17 on our rolls.18 So we are attempting to improve19 our data and improve our inspections.20 COUNCILWOMAN SANCHEZ:21 Councilman Jones, did you have something22 to add?23

Councilman Jones

The only24 thing I would say is: Again, it's a25 57 6.15.11 L&I - BILL 1006131 three-pronged strategy. Tighten the laws2 that exist up to be more detrimental to3 property owners that do not comply, which4 is what we're attempting to do today.5 That does not work unless we on6 the enforcement side actually go out and7 knock on some doors and do some detective8 work to prove these violations.9 And the third is to sensitize10 the courts to what this means to the11 average person who has to live next to12 this.13 And I just personally -- at14 56th and Windell, the first time I ever15 saw a keg roll down the street at 2:00 in16 the morning. It can disturb your sleep.17 So we have to sensitize the courts.18

Councilwoman Sanchez

We have19 one more neighbor, I believe, Charles20 Dennis, and now he's going to testify.21 And I just want to add and I22 think it's important. I mean, I agree23 with Councilman Green that we need more24 inspectors, and this becomes a budgetary25 58 6.15.11 L&I - BILL 1006131 issue. And as Chair of L&I, I constantly2 fight about how L&I has been gutted over3 the last few years.4 And it's one of those things5 that if quality of life is important to6 us, we're going to have to give L&I some7 additional resources so that these issues8 can be resolved. I just had to put that9 the on the record because it's one of the10 budgets that we constantly cut at all the11 time.12

Mr. Sauerman

Madam13 Chairperson, can I ask one question in14 terms of the license? Is the license15 considered a strike if the --16 DEP. COMM. MAENNER: Yes.17

Mr. Sauerman

-- if they have18 not done a license?19

Councilman Jones

Yes.20

Mr. Sauerman

So if they buy21 the license immediately afterwards, does22 that negate the strike? Or the fact that23 they've been out of compliance24 potentially for years, does that apply?25 59 6.15.11 L&I - BILL 1006131

Councilwoman Sanchez

I'll let2 the Commissioner respond to that.3 DEP. COMM. MAENNER: I would4 say it would. It's a violation.5

Ms. Greenfield

But there's no6 judgment.7

Mr. Sauerman

Well, that's the8 question. That's why I was wondering.9 Because it is a license versus a physical10 violation.11 DEP. COMM. MAENNER: It would12 have to be adjudicated by the courts.13

Mr. Sauerman

Okay, all right.14 Thank you.15

Councilwoman Sanchez

So,16 obviously, we have a little bit more work17 to do. I think Councilman Jones is very,18 very much committed to working through --19

Councilman Jones

These are20 good points.21

Councilwoman Sanchez

--22 potential loopholes that we're finding23 here.24 I just want to get through the25 60 6.15.11 L&I - BILL 1006131 rest of the list 'cause we have three2 more people.3

Ms. Greenfield

Thank you very4 much.5

Councilwoman Sanchez

Thank6 you so very much.7 We have three additional8 people.9 And I want to invite up the10 local universities:11 Rob Skomorucha, from12 Philadelphia University, Director of13 Corporate and Foundation Relationships;14 John Henfy, from St. Joseph's15 University, Director of Public Safety and16 Security;17 And then after that, I have our18 good friend Phil Lord, who lives there.19 I don't know if there's anybody20 else.21 As soon as we finish with the22 universities, then I'll ask Mr. Charles23 Dennis to join Phil Lord, who will be our24 final witness.25 61 6.15.11 L&I - BILL 1006131 (Witnesses come forward.)2

Councilwoman Sanchez

Please3 proceed.4

Mr. Skomorucha

Good5 afternoon, Madam Chair and members of the6 committee. I am Robert Skomorucha, the7 Director of Corporate Foundation and8 Government Relations at Philadelphia9 University.10 And I ask to revise and extend11 my written testimony because I need to12 correct something with regard to how I13 spelled Madam Chair's name.14

Councilwoman Sanchez

(Laughs.)15 You see? That's okay. Don't worry about16 it. It will be reflected in the record.17

Mr. Skomorucha

6 My testimony is plain and7 direct: Philadelphia University supports8 Bill No. 9 Philadelphia University10 endorses the effort to ensure compliance11 with the Philadelphia Code, including12 that owners of rental properties abide by13 the proper license and certification14 requirements, especially those requiring15 that no more than three unrelated persons16 may live in a single household unit. 13 To the landlords in our14 community, we encourage that they observe15 and comply with all local ordinances,16 especially occupancy restrictions. 11 L&I - BILL 1006131 responds to violators of laws in our2 community. 6 While we have limited7 jurisdiction for responding to off-campus8 disturbances by our students, we may9 hold, and we have held, students10 accountable under the community standards11 policies in our student handbook for any12 violation of the law. 15 I'd like you to know that our16 Philadelphia University Dean of Students,17 Dr. Mark Govoni, along with Captain Steve18 Gwenn of the 39th Police District, meet19 with civic and community leaders on a20 quarterly basis. 2 Which leads us this to this3 point: At its core, the adoption of Bill4 No. 11

Councilwoman Sanchez

Thank12 you.13 Any questions from the members?14

Councilman Greenlee

Real15 quick.16 COUNCILWOMAN SANCHEZ:17 Councilman Greenlee.18

Councilman Greenlee

Thank19 you, Madam Chair.20 I just was wondering. In your21 testimony, you talk about, in addition,22 on those occasions when we interact with23 landlords. Do you make any attempt -- I24 know there's one university in the City25 68 6.15.11 L&I - BILL 1006131 who has tried this, and I know you have2 to have the landlord's cooperation in3 this, to have some kind of formal4 interaction, maybe a group of landlords5 that you meet with and go over problems,6 that kind of thing?7 Have you tried that, or is that8 something that, you know, you think could9 happen?10

Mr. Skomorucha

In my relative11 newness to Philadelphia University, I do12 nonetheless have a lot of familiarity13 with this particular law and its14 application in Philadelphia and asked a15 lot of those questions upon my arrival at16 Philadelphia University.17

Councilman Greenlee

Mm-hmm.18

Mr. Skomorucha

And I've been19 advised by Presidents Spinelli and20 Dr. Mark Govoni and Dr. Jeff Cromarty21 that yes, we have engaged landlords in22 formal and informal dialogues. In some23 ways, it still continues.24

Councilman Greenlee

Mm-hmm.25 69 6.15.11 L&I - BILL 1006131

Mr. Skomorucha

It is, to take2 a quote from the national stage, "a3 coalition of the willing."4

Councilman Greenlee

Sure.5

Mr. Skomorucha

And so, that6 is one reason, and a strong reason, why7 we enforce the additional enforcement8 opportunities associated with this bill.9

Councilman Greenlee

And I10 guess another question. Has there been11 much willingness on the part of the12 landlords, in your opinion? In general.13 I mean, I'm just --14

Mr. Skomorucha

Well, in15 general, yes. The overwhelming majority16 of folks want to do the right thing.17

Councilman Greenlee

Mm-hmm.18

Mr. Skomorucha

And,19 certainly, for those who are relying on20 priority managers for an investment where21 they may be far afield from22 Philadelphia --23

Councilman Greenlee

Mm-hmm.24

Mr. Skomorucha

-- some can be25 70 6.15.11 L&I - BILL 1006131 characterized as absentee landlords. But2 other ones, a large majority of them,3 want a solid, reliable investment4 property, with no problems, and they want5 to make sure that they're doing the right6 next thing.7 So they want the University to8 keep them informed, they want the9 students to be operating properly. They10 expect property enforcement from L&I, and11 they expect their property manager to be12 doing the right thing. It is not to13 their financial interest to have that14 happen.15 However, we can observe the16 same kind of things we noticed in the17 previous panel about those particular18 landlords that are on the most popular19 list.20

Councilman Greenlee

Okay. I21 gotcha.22 Okay, thank you.23 COUNCILWOMAN SANCHEZ:24 Councilman Jones.25 71 6.15.11 L&I - BILL 1006131

Councilman Jones

Just to2 touch on that a bit further. You have a3 combination of issues. Sometimes it's4 the students, sometimes it's the5 landlords. Sometimes it's the students6 and the landlords.7

Mr. Skomorucha

Right.8

Councilman Jones

The point9 is, who's responsible and who is going to10 be held accountable?11 And what we found in some cases12 is that there are landlords that entered13 into three leases, complied with the law14 as they knew it. And then some15 enterprising young people decided, you16 know, I'm going to get my cousin over17 here and sublet, and this is going to be18 off the books.19 But that does not relinquish20 the responsibility of the property owner21 to maintain what the law says.22 And so, a lot of people have23 hidden behind the fact, Well, no, here24 are my three leases, I thought I was25 72 6.15.11 L&I - BILL 1006131 doing -- no, you have to come back, you2 have to be responsible, you have to be3 vigilant. If there are more than those4 people, you're held accountable.5 And your financial loss, the6 potential -- as cumbersome as the court7 process may be, you could lose three8 years' worth of income. And that's what9 is at risk.10 Because, you know, based on the11 infrequency of sometimes inspection, it's12 worth it to do the Russian roulette and13 say, When I get caught, I'll just pay the14 fine.15 But what we're trying to do is16 increase that level of penalty so that is17 onerous to the property owner.18

Mr. Skomorucha

May I? I hope19 that I conveyed complete support for that20 idea. By offering up the larger21 exceptions I wanted to set them aside so22 that we focus on the problems.23 And I want to take a moment of24 personal privilege. I distinctly25 73 6.15.11 L&I - BILL 1006131 remember -- I was the -- I had an2 opportunity in a previous career to work3 with the former Councilman who is now in4 a different position, who started this5 bill.6 And I distinctly remember the7 conversation, at around 11 o'clock one8 evening, about our ability to reach back9 to that 1933 law about the application of10 enforcement for keeping no more than11 three unrelated people in a building,12 because I thought then and I'm encouraged13 to see these many years later, that this14 is an avenue of pursuit for enforcement.15 It seems to be right here for us to use.16 We encourage it heartily.17

Councilwoman Sanchez

I will18 remind folks that this committee recently19 passed a law requiring owners who don't20 live in the City to have someone21 registered in the City. And I say that22 to say that we have tried every which way23 around to go around this.24 Unfortunately, sometimes, as25 74 6.15.11 L&I - BILL 1006131 the Mayor has done in the past with tax2 delinquency, we got to shame some of3 these folks.4

Councilman Jones

Yes.5

Councilwoman Sanchez

And as a6 stakeholder in the community,7 notwithstanding your formal and informal8 attempts, when you have some really bad9 actors, you may want to step up your game10 and really tell your students, Don't rent11 from these people. These people are not12 good neighbors.13 Because they're only -- the14 only way we get 'em into compliance is15 when we hurt their pockets. And for us,16 it becomes a very expensive endeavor17 'cause we got to go to Equity Court, we18 got to go through that process.19 So, you know, I encourage you20 to look at ways that you could help us21 with the bad actors, especially when you22 have folks who have numerous properties.23 And they're popular because they may be24 cheap.25 75 6.15.11 L&I - BILL 1006131

Mr. Skomorucha

Right.2

Councilwoman Sanchez

And the3 fact that you have to tell your student4 population that they also have a5 responsibility to the neighborhood, you6 know, 'cause it's reflected back on you.7 When the students are a8 problem, none of the neighbors remember9 the students' names; they just remember10 that they attended Philadelphia11 University and that Philadelphia12 University students continue to live13 there.14 So, you know, not easy to deal15 with, but I think the one thing we've16 learned from the testimony this afternoon17 is that all stakeholders are going to18 have to -- we're all going to have to19 step up our game on this one 'cause it's20 such a big issue.21 So with that, Mr. John Henfy,22 from St. Joseph's University.23

Mr. Henfy

Madam Chair,24 Councilman Jones, Councilman Greenlee,25 76 6.15.11 L&I - BILL 1006131 Councilman Green, good afternoon. My2 name is John Henfy, and I serve as the3 Director of Public Safety and Security at4 St. Joseph's University.5 I'm here on behalf of the6 University to indicate the University7 support for the intent of Bill No.8 100613, amending Chapter 9-2805, entitled9 "Zoning Compliance."10 St. Joseph's University11 believes it is a good neighbor and, in12 this regard, shares the City's desires to13 enhance the quality of life for all14 residents of the Fourth Councilmatic15 District, including the University16 students, faculty, and staff, as well as17 the Philadelphia region overall.18 St. Joseph's University19 supported the original version of the20 Educational Housing District bill.21 Although the vast majority of22 our students who reside off-campus are23 good neighbors, we also know that24 students, as they evolve into their25 77 6.15.11 L&I - BILL 1006131 adulthood, may not always make the same2 decisions we might. It is the3 University's mission to educate students4 not only as persons but as responsible5 citizens.6 It is in this spirit that the7 University is attentive to its students'8 conduct, whether on or off-campus. For9 example, SJU informs all students via the10 web, printed materials, and one-on-one11 meetings that more than three unrelated12 persons living in a household is in13 violation of the Philadelphia Housing14 Code.15 Recently, we have cooperated16 with the office of Councilman Jones, the17 Philadelphia Police Department, Licenses18 and Inspections, and others to create a19 Community Task Force dedicated to reduce20 off-campus events, including parties and21 related noise.22 Notwithstanding the23 University's commitment as an educator to24 its students and through being a good25 78 6.15.11 L&I - BILL 1006131 neighbor, the proposed bill focuses the2 issue of off-campus housing, where it3 begins and where it can most effectively4 be addressed: On the landlords who5 violate the code by renting to more than6 three individuals, whether they be7 students or others.8 Thank you.9

Councilwoman Sanchez

Thank10 you.11 Any questions for this witness?12 (No questions.)13

Councilwoman Sanchez

Thank14 you so very much again for coming here15 and testifying and being good neighbors.16 Our last panel will include:17 Mr. Charles Dennis, who's the18 with the neighbors of the 5600 block of19 Woodcrest Avenue;20 And our friend Phil Lord, from21 the Tenant Union Representative Network.22 (Witnesses come forward.)23

Councilwoman Sanchez

And as24 Councilman Jones mentioned, Darryl Zaslow25 79 6.15.11 L&I - BILL 1006131 from HAPCO has submitted written2 testimony that will be put in the record.3 Mr. Dennis, if you would.4

Mr. Dennis

If I may, madam5 Chair and members of the committee, I say6 good afternoon.7

Councilwoman Sanchez

Good8 afternoon.9

Mr. Dennis

I have submitted a10 written statement of my concerns for --11 that I've experienced as a resident of12 the 5600 block of Woodcrest Avenue.13 And as has already been14 indicated, my name is Charles Dennis.15 I'm an attorney, and I've been a resident16 of the 5600 block of Woodcrest Avenue for17 a period of just about 42 years.18 And I'm here to, you know,19 offer any support that I can with respect20 to the amendment to Bill No. 100613 and21 any legislation that's going to offer22 some type of relief for the communities23 of Wynnefield and its surrounding areas,24 'cause I think it's very important.25 80 6.15.11 L&I - BILL 1006131 But I've been told that my2 presentation should be limited to3 anywhere from two to three minutes, so4 I'm going to try to abide by that5 mandate.6 But I'm going to go through my7 statement, and I think it's important for8 me to do that, even though you have a9 copy of it for the purpose of --10

Councilwoman Sanchez

Excuse11 me. Who did you give that copy to?12

Mr. Dennis

Miss Morgan? I13 thought she had made copies of it.14

Councilwoman Sanchez

She15 might be making copies of it now. That's16 fine. Thank you. We'll make sure we17 give it to the stenographer.18

Mr. Dennis

I'm going to start19 out my presentation with a question and20 follow it with an answer. The question21 is: What incentive do college students22 have to maintain the esthetic values of23 the community? 8 I have lived on Woodcrest9 Avenue since 1969 and have never had to10 endure what we're facing now. Since the11 influx of students, I have recorded in12 excess of 400 rodents being caught since13 the summer of 2010. Raccoons have been14 observed walking up and down the street15 as though they own the place. "18 In addition, I have presented19 to Councilman -- then-Councilman Nutter a20 video of students urinating in the21 streets, with no intent on being22 discreet. There are parties that last23 well into the early mornings. 11 L&I - BILL 1006131 that they need help standing. 22 And students have been seen23 jumping from the porch roof of their24 residence onto the lawns. 6 Then what have we, as7 residents, done to try to solve the8 problems? We have met with9 representatives from the universities,10 representatives from City Council,11 representatives from the Police12 Department. 11 We have tried. 19 After one meeting with the20 University, they started sending vehicles21 marked "public safety" into the22 neighborhood. 11 L&I - BILL 1006131 that this was not his problem; it was a2 police matter, call the police. 10 100613 will provide some help. To do it,11 it needs teeth, it needs someone to take12 a bite out of what's happening. 6 Now, in addition, as I7 indicated, I have submitted the written8 statement, but I was given some9 photographs. I don't know if it's10 appropriate for me to submit those, but I11 would like to submit 'em because I've12 always learned that -- and it's six13 photographs. I've learned that a picture14 speaks 1,000 words or 10,000 words or15 something like that. 18

Councilwoman Sanchez

Are they19 X-rated?20 (Laughter.)21

Mr. Dennis

It depends on your22 interpretation of them, but if you23 consider trash -- I would consider them24 X-rated 'cause that's trash.25 87 6.15.11 L&I - BILL 1006131

Councilwoman Sanchez

And2 thank you. We appreciate your coming3 forth today and testifying.4 We're going to end with Phil5 Lord. I don't know if anybody else is6 left to testify. If not, Phil.7

Mr. Lord

Thank you. 12 I think you all are familiar13 with TURN, so I don't have to go into14 details on that. We do have, as you15 know, tenants' rights classes, and they16 are attended by students. 11 L&I - BILL 1006131 To put it in context, we heard2 about the party motive. 8 A lot of times, tenants are9 being put into units, given rooms10 essential, and they're being treated like11 rooming houses when, in fact, they're not12 zoned to be that. 15 So I'm very concerned that we16 not think about it as merely a way to get17 tenants to party less. 8 First of all, the law, as it9 stands now on Educational Districts, I10 believe, has never been enforced. I11 think it's safe to say that the12 requirement of having an inspection 9013 days before the license renewal has not14 been imposed ever. 17 And, secondly, the way I -- as18 it gets amended, it would, of course,19 relate now to even a broader scope. 7 It has to be reinspected8 because, obviously, it may not be your9 fault, but if you get cited for having an10 overcrowded situation and the inspector11 goes back and it's not cured, you can be12 sited at that point, and that can be a13 strike. 14 Those strikes only add up to15 one year's suspension. This provides for16 three years' suspension. 2 And, finally, we need to be3 realistic about what a suspension of4 license means. 8 The way licenses get enforced9 in Philadelphia, from my knowledge, is10 that when a landlord tries to evict a11 tenant, he has to get a license. 18 But the bottom line is that19 suspending licenses aren't enough if20 there aren't actual penalties for not21 having a license and if judges don't22 consistently enforce the law that23 requires a landlord to have a license to24 collect rent. 2

Councilwoman Sanchez

Thank3 you.4 Any questions for the witness?5 Councilman Jones.6

Councilman Jones

Yeah. I7 just wanted to say thank you, residents,8 for your patience; attorneys, for your9 advice; civic associations, for keeping10 the situation as manageable as possible.11 But let me say this: If this12 bill is a part of a process, that's going13 to require that continued cooperation14 with all of the stakeholder.15 We are going to take a course16 over the summer to work with L&I and work17 with the courts on a task force. This18 model has worked well in limited19 situations. When we worked with the20 Wynnefield residents to do a strike force21 during known party times, both in22 midterms and finals, we did an23 anticipated air strike, if you will,24 which helped quelled things a little bit,25 93 6.15.11 L&I - BILL 1006131 but there were other instances that2 popped up.3 It worked well with the bike4 race when we incorporated that with LCB5 and the night courts, where we, for the6 first time, got them to take seriously7 the unruly drinking that was happening,8 which resulted into 32 violations the9 weekend before, which sent the signal to10 some of the party houses that were11 raided.12 So this is a arrow in the13 quiver to deal with the issue and14 shooting at the target. And we're going15 to continue to tighten it up.16 I've talked to some of my17 colleagues up here off the record that18 said we need to look at other areas to19 kind of create these kind of floating20 task forces to lock at different areas21 that have similar problems. So this is a22 good step in the right direction.23 And I really appreciate you.24 I've heard some of the frustrations where25 94 6.15.11 L&I - BILL 1006131 it got really macho, like you're not2 going to disrespect my property anymore,3 and I worked all my life for this, and4 you're not going to just urinate on my5 lawn.6 So I appreciate your restraint,7 your restraint and patience in a lot of8 situations. And I know of personal cases9 where you've shown great restraint. And10 I just want to thank you for it.11

Mr. Dennis

May I say one more12 thing before I conclude?13 And I have to -- living on the14 5600 block of Woodcrest Avenue, I have15 some of my neighbors here, and they16 wanted me to say this, and if I don't say17 it, I don't know how I'm going to go back18 on the 5600 block of Woodcrest Avenue.19 They wanted me to remind the20 panel, and I don't have to do it because21 it's somewhat redundant, and that is:22 Because of the large number of23 students that are coming into the area,24 it is also bringing a large number of25 95 6.15.11 L&I - BILL 1006131 automobiles into our block, and it is2 posing a problem for the residents of at3 least our block and not only the 56004 block of was Woodcrest Avenue but, I'm5 sure, other areas as well.6

Councilwoman Sanchez

Thank7 you very much.8 This concludes our hearing, and9 we will now enter into our public10 meeting.11 I do agree with the neighbors.12 I do travel to the Fourth, even when my13 councilman doesn't invite me. My14 brother-in-law lives off the university15 area. So as I listen to the neighbors,16 those are things that I've personally17 witnessed as I travel on University18 Avenue to -- I think he's in Overbrook19 Farms so I have been witness to it.20 So with that, we are going to21 go into our public meeting. I am going22 to ask for a motion from the bill's23 sponsor, Councilman Jones, on the24 amendment to Bill No. 100613.25 96 6.15.11 STREETS AND SERVICES PUBLIC MEETING1

Councilman Jones

Thank you,2 Madam Chair.3 I make a motion to amend Bill4 No. 100613.5 (Motion duly seconded.)6

Councilwoman Sanchez

All in7 favor?8 (None opposed.)9 The amendment to Bill No.10 100613 has been moved.11 I now recognize Councilman12 Jones for a motion on the amended Bill13 No. 100613.14

Councilman Jones

Thank you,15 Madam Chair.16 I make a motion to move, as17 amended, Bill No. 100613 out of committee18 with a favorable recommendation and a19 suspension of the rules to allow for20 first reading at the next scheduled21 meeting.22 (Motion duly seconded.)23

Councilwoman Sanchez

The bill24 has been properly moved and seconded.25 97 6.15.11 STREETS AND SERVICES PUBLIC MEETING1 All in favor?2 Any oppositions?3 (None opposed.)4 Bill No. 100613, as amended,5 will be moved out of committee, with a6 favorable recommendation and that the7 Council rules will be suspended to allow8 for first reading at our next session.9 Thank you all.10 (Proceedings end at 2:33 p.m.)11 * * *12 13 14 15 16 17 18 19 20 21 22 23 24 25 98 C E R T I F I C A T E1 2 I HEREBY CERTIFY that the3 proceedings of the City of Philadelphia4 Council Committee on Streets and Services are5 contained fully and accurately in the6 stenographic notes taken by me on Wednesday,7 June 15, 2011, and that this is a true and8 correct statement of same.9 10 11 12 _________________________________ 13 JOSEPHINE CARDILLO Registered Professional Reporter14 15 16 17 18 19 (The foregoing certification of20 this transcript does not apply to any21 reproduction of the same by any means, unless22 under the direct control and/or supervision of23 the certifying reporter.)24