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Landlords, city working out rental registration compromise
Friday, November 27, 2009

Approved nearly two years ago, a city of Pittsburgh ordinance requiring landlords to register their properties is on indefinite hold.

But it may re-emerge soon.

The city's Web site says that landlords have to register by Dec. 1. But a Nov. 5 court order signed by Allegheny County Common Pleas Judge Joseph James nixed that latest of many deadlines, and postponed implementation until either the city, or landlord groups that have sued to overturn the ordinance, petitions the court.

Outgoing city Solicitor George Specter, who plans to cede his post to nominee Daniel D. Regan next month, said he's "very optimistic" that a compromise rental registration ordinance can be crafted and submitted to City Council soon. He's been in recent talks with landlord groups, and he's trying to arrange conference calls for next week.

But sticking points remain, notably including a proposed $12-per-unit annual fee.

The ordinance was introduced in February 2007 and approved by council that December because of perceived problems with absentee landlords.

"The majority of the problems in the neighborhoods unfortunately come from rental properties," said Councilman Jim Motznik, one of the ordinance's sponsors, who will be a district judge next year. "When we try to address it, it's sometimes difficult to identify who owns the property."

The ordinance requires that landlords pay the fee; produce documents showing that their properties conform to zoning rules; turn over tenant names and contact information; and submit to inspections when there are complaints.

Mayor Luke Ravenstahl's administration missed the ordinance's Sept. 30, 2008 implementation deadline. Council then set a new deadline of April 1, but that was postponed in March when landlord groups filed suit.

The city's preoccupation with the G-20 summit pushed rental registration to the back burner for most of the summer. Talks between the city and landlords resumed in October. Both sides agreed in November to cancel a Dec. 1 target date, and not to bother setting another deadline.

Mr. Specter's impending departure to become general counsel of the Urban Redevelopment Authority is a blow to the effort, and Sergei Matveiev's resignation from the job of chief building inspector, effective last Friday, also could slow things, said Brad Dornish, attorney for ACRE of Pittsburgh Inc., which represents small landlords. The Bureau of Building Inspection would enforce the ordinance.

"It's two steps forward, one step back," said Lawrence Fisher, an attorney representing the Apartment Association of Metropolitan Pittsburgh, another group that sued the city. "We believe that we have made substantial progress in resolving those aspects of the ordinance which caused us to file the lawsuit in the first place."

Mr. Specter said that the requirement to show compliance with zoning rules -- which already led some landlords to pay hundreds of dollars in fees in anticipation that the law would take effect -- will likely be left out of a revised ordinance.

Talks continue on how much information landlords need to provide regarding their tenants. Mr. Dornish said landlords might agree to disclose names of tenants on their leases, as long as the city keeps the information confidential.

Landlords want a fee that only reflects the city's costs to implement the program, and they don't want to pay annually.

"Why register every year?" asked John Kostelac, CEO of the North Huntingdon-based Landlord Service Bureau, another plaintiff in the lawsuit. Landlords should pay once, he said, and if the property is sold, the new owner can pay to re-register.

Mr. Dornish said that perhaps the fees should be placed in an account, to be spent only on program implementation, and any end-of-the-year balance refunded to the landlords.

Regardless of the resolution, landlords may still feel unfairly targeted.

"You're attacking one segment as if they're the sole culprit, but they are not," said Mr. Kostelac. "[Landlords] are the ones buying dilapidated buildings, putting money into rehabbing them, and putting them on the market for rent."

Rich Lord can be reached at rlord@post-gazette.com or 412-263-1542.
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First published on November 27, 2009 at 12:00 am