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Home Dirt  Landlords and advocates team up in demise of inspection program
Wednesday, September 3,2008

Landlords and advocates team up in demise of inspection program

By Jordan Green

A panel handpicked by the city of Greensboro’s inspection department agreed last week to eliminate mandatory inspection of rental properties and grant lifetime certification to those that have been documented as being up to code.

The city has received widespread publicity and acclaim for nearing complete inspection of rental housing as a five-year cycle begun in 2004 comes to a close at the end of this year. Dan Reynolds, the city’s code enforcement manager, said as of July 31 the city had inspected and certified 31,351 out 32,392 properties — or 96.8 percent of the total.

Still, the total number only counts rental units identified in 2003 through city planning records and doesn’t include units that have come into the rental market since then or those added through annexation. It also excludes dormitories and nursing homes.

An investigation by YES! Weekly suggests that less than half of the city’s rental housing stock has been inspected and certified. The newspaper requested certificates of occupancy for 25 separate addresses confirmed as occupied rental properties. The blind sample — to ensure reliable results, the reporter did not know the properties’ status beforehand — included both apartment complexes and single-family homes. Many of the addresses were gleaned through personal contacts.

In response to the request, inspections staff indicated that only 11 of the 25 properties had been inspected and certified.

Reynolds said he was not surprised by the result. “Aunt May might have just started renting the family home,” he said. “A lot of what we have to do is education of new landlords. These places will continue to be rented unless we come up with a way to identify it through the tax records.”

Engineering and Inspections Director Butch Simmons said once the five-year inspection cycle ends in December the city will start identifying rental properties that previously fell through the cracks.

“All the properties will be inspected at the end of the year,” he said. “Because of the education process people will be looking for that inspection certificate before people rent anything.”

Eliminating mandatory inspections of the city’s rental housing stock will essentially return Greensboro to a complaint driven system.

City staff members have warned in the past that many tenants, particularly immigrants, are reluctant to bring code violations to the attention of their landlord or city inspectors.

A handful of tenants who requested anonymity told YES! Weekly they tolerate violations in their homes for a variety of reasons, including concern that landlords would retaliate by pursuing eviction or that the costs of repairs would be passed along to them in the form of rent hikes. Tenants interviewed ranged from a professional to a man who has been at risk of homelessness in the past. In the face of heavy pressure from real estate interests to scrap the certification program altogether, representatives of a tenant advocacy group and neighborhood associations proposed a new system requiring property owners to vouch for the good standing of their rental property. The specially appointed stakeholder group, which met with city staff in the basement of the inspection department building on 4th Street passes its recommendation up through the more formal Rental Unit Certificate of Occupancy Board, also known as the RUCO Board, to the city council. The council, in turn, is almost certain to approve the amendment, considering that representatives of tenants and the property management industry alike back the recommendation.

In a remarkable display of cooperation, the jovial and collegial group concluded an agreement in about two hours. It largely ratified a handful of face to-face meetings and e-mail exchanges between representatives of various real estate lobbies and Simmons.

“Butch had thrown out that the RUCO certificate would be permanent unless the certificate had been revoked,” said Marlene Sanford, president of the Triad Real Estate and Business Industries Coalition, adding, “I think we talked about whether the ordinance could be sunsetted. I don’t think we came to any resolution on that.” Changes to the rental inspection program were discussed in a July 10 e mail from Simmons to Peter Placentino, vice president for property management at Brown Investment Properties, a board member of the Triad Apartment Association and a key broker in the agreement sealed on Aug. 28. “If no complaints resulting in a loss of a RUCO certificate [occur] within the 5 year period the existing certificates would remain valid,” Simmons wrote. Amy Williams, an Elon Law School student and intern with the Greensboro Neighborhood Congress, said her organization supported automatic renewal of the certificates. “If we have automatic renewal for everyone,” she asked, “what is the point [of the program]?” “That’s what we’ve been asking for years,” Sanford replied.

Many of those meeting at the inspections department building on Aug. 28 indicated that they are comfortable with doing away with mandatory inspections.

“Everything is complaint-driven,” said Todd Rotruck, a designated representative of the Greensboro Neighborhood Congress, who remodels houses for resale.

“It would be consistent for this board [RUCO] to function in the same manner.” Beth McKee-Huger, executive director of the Greensboro Housing Coalition, argued in favor of allowing property owners to police themselves.

“Complaint-driven alone did not take care of the problem,” she said. “I think that rather than automatic renewal, it would help for the owners to say, ‘I still own this property. I manage it correctly, and I respond to calls for repairs promptly.’ And if they don’t, then they get re-inspected.”

Placentino pushed back. “Part of me, it just rubs me the wrong way that I have to certify that I’m good,” he said. The panelists agreed on a proposal to have property owners check off a questionnaire included in their annual property tax bill. The plan depends on the cooperation of the Guilford County Tax Department. In theory, property owners would check off a box stating that their property holds a certificate in good standing. Failure to do so would prompt a new inspection.

The panelists concluded that an arrangement allowing property owners to report annually on the status of their properties would render largely meaningless any requirement that the certificates be periodically renewed.

“Do we need to renew certificates every five years,” asked Rotruck of the neighborhood congress, “or do we do lifetime certification?” “Let’s do lifetime certification,” answered Sanford of TREBIC.

Placentino of Brown Investment Properties said he anticipated that the recommendations would be discussed in detail by the RUCO Board, but would encounter few hurdles.

 “I believe the proposed recommendations discussed today will be adopted by the RUCO board, and recommended to council,” he said. Two key members of the council’s liberal voting bloc have indicated comfort with the changes under discussion. Mayor Yvonne Johnson enjoys strong support from the real estate lobby, but often displays rhetorical sympathy for the city’s poorest residents. At-large Councilman Robbie Perkins, a registered Republican on the nonpartisan board, presides over one of the Triad’s largest commercial real estate companies. His liberal leanings have been displayed in votes to keep the White Street Landfill in northeast Greensboro closed and in his support of City Manager MitchellJohnson’s handling of the resignation of former police Chief David Wray. Mayor Johnson indicated in comments two days before the agreement was made that she would support such an amendment.

“I would support some way of verifying that the property owner is still the property owner, and that certification of the property is in good standing, and the property is in satisfactory condition,” she said. Perkins has indicated full confidence in Simmons’ initiative to change the rental inspection program in previous comments.

“Are the changes reasonable? Yes,” he said. “Are the recommendations being made by someone who knows what they’re doing? Yes. Why should I dispute that?” The city council’s conservative bloc — a bipartisan coalition consisting of District 3 Councilman Zack Matheny, District 4 Councilman Mike Barber and District 5 Councilwoman Trudy Wade — favoring reduced regulation and smaller government is also unlikely to oppose the changes.

At the conclusion of the deal hammered out in the basement of the inspections department building on 4th Street, Placentino summed up the spirit of cooperation in a comment to Reynolds.

“Dan, let it be known there was a meeting of Greensboro citizens,” he said, “where everybody actually agreed on something.”

To comment on this story, e-mail Jordan Green at jordan@yesweekly.com.

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