Authorizing the Committee on Licenses and Inspections to hold hearings on the alarming increase in rental properties in certain sections of Northeast Philadelphia and to also explore the possibility of creating a Rental Housing Unit within the Department of Licenses and Inspections to ensure that all proper permits and licenses are being obtained by these owners.

WHEREAS, There has been a tremendous increase in the number of investors purchasing middle-range row homes and turning these homeowner occupied properties into rentals; and

WHEREAS, An informal survey conducted by inspectors from the Community Life Improvement Program (CLIP) show that a majority of these owners are not applying for the appropriate licenses or building permits. Furthermore most of the owners are “absentee landlords” residing in New York and Northern New Jersey; and

WHEREAS, While these types of investment properties have significantly increased the value of real estate in the Northeast, there is a serious concern among residents about how these properties will affect homeowners’ quality of life: and

WHEREAS, Failure to apply for Business Privilege or Rental Licenses could be costing the City of Philadelphia thousands of dollars annually in revenue; and

WHEREAS, Title 4 of The Philadelphia Code makes it illegal for a person to collect rent with respect to any property unless a valid rental license has been issued. Owners who fail to comply with the provisions under PM-102.7.2 are also subject to revocation; and

WHEREAS, Bill No. 000602, passed by City Council on June 14, 2001 provides for the suspension or revocation of a rental license for failure to correct Code Violations; now therefore

RESOLVED, BY THE COUNCIL OF THE CITY OF PHILADELPHIA, That the Committee on Licenses and Inspections is authorized to hold hearings on the alarming increase in rental properties in certain sections of Northeast Philadelphia.

FURTHER RESOLVED, That the Committee explore the possibility of creating a Rental Housing Unit within the Department of Licenses and Inspections to ensure that all proper permits and licenses are being obtained by these owners.

End