The Eviction ProcessFor private landlords and PHA landlords

Background• PHA has, roughly, 14,000 public housing units.

• Provides subsidy assistance to 18,000 units under HCV program

• 85,000 people on public housing waiting list

• Each tenant’s rent is set at 28% of their annual income.

• A change in income will result in a change in rent.

• Handles approximately 340 cases in landlord/tenant court each month.

• Less than 3% of our units have cases in litigation in any given month.

• PHA completes about 268 evictions per year.

• That number is 1.8% of our public housing units.

Before Filing a Complaint • Contact tenant in attempt to resolve lease violation

• Payment agreements and/or attempt to resolve dispute

• Tenant served with at least 2 official written notices of intent to file for eviction

• Eviction filed in Landlord Tenant Court

Before Filing a Complaint: PHA

• PHA provides tenants with three (3) pre-trial resolution opportunities before a Complaint is filed in Municipal Court:

1) Pre-trial repayment agreements for rent owed for less than two months, and

2) Grievance hearings for lease terminations due to issues disputed by the tenant, and

3) Conflict resolution meetings between tenants in dispute with one another.

What Makes a Landlord Move for Eviction?• Breach of Lease

Non Payment of Rent

Unauthorized Occupants

Criminal or Nuisance activity that disturbs other’s right to peacefully enjoy the property

Failure to complete recertification

Landlord Communication with Tenants • Rent reminders are sent to tenants after the 5th of the

month.

• Letters/calls requesting payment of rent and/or curing breach of lease.

• Notices of Lease Termination are mailed to tenants.

• A Notice of Proposed Action is sent to the tenant.

PHA: Required Landlord Communication with Tenant• Monthly rental statements are mailed to tenants.

• Rent reminders are sent to tenants after the 5th of the month.

• Letters requesting rent conferences are mailed to tenants.

• Letters requesting conflict resolution meetings.

• Two (2) notices for recertification compliance meetings are sent to tenants.

• Notices of Lease Termination are mailed to tenants.

• A Notice of Proposed Action is sent to the tenant.

• Phone calls to tenants regarding the breach.

Notice of Lease Termination • PHA issues a Notice of Lease Termination (NLT).

Notifies tenant of nature of breach

Offers tenant the option of a grievance hearing

Offers tenant a pre-trial payment plan

Advises tenant to address the issue with management within 30 days

• If tenant does not respond to the NLT, PHA files a Complaint in Municipal Court.

Tenant has until the day of trial to resolve the breach

• If no resolution is reached, PHA will take the case to trial.

What happens when there is a judgment against a tenant?• The tenant has 10 days to appeal.

• A landlord can not gain possession until the court has awarded possession of the property to the landlord.

• A landlord can not gain possession until a minimum of 21 days have passed and the appropriate Writs of Possession have been filed.

• PHA: If there is a money judgment against the tenant, the tenant can have the money judgment satisfied by paying the amount of the judgment.

Consequences to the landlord• Cost

Filing a Complaint - $95

Filing Writs of Possession - $11.60

Serving a Writ of Possession - $95

Serving an Alias Writ of Possession - $35

Moving truck fees - $949 - $1,350 (including 30 days of storage)

Storage of belongings (on or off site) - $2,500-$9,000

Turnover/Rehab of Property - $3,000-$50,000

• Timing A landlord can not take possession until a minimum of 21 days

has passed.

• Loss of Income Landlord can only collect the judgment amount to stop the

eviction, not the total amount due at time of eviction.

• Possible damage to the property

City of Philadelphia Department of

Licenses & InspectionsCity of Philadelphia Task Force on Eviction Prevention and Response

November 21, 2017

1

L&I’s Roles and Responsibilities • The mission of the Department of Licenses & Inspections is to enforce

the City of Philadelphia’s codes for the safe and lawful construction and use of buildings.

• L&I issues and inspects all construction and demolition permits; conduct code inspections for fire, property maintenance, and business compliance; issue business and trade licenses; and seal and demolish vacant buildings.

• Scope of the Department’s authority:• 570,000 parcels in the city• 53,790 permits and 119,320 licenses issued in FY17 = $60 million in revenue

to the general fund • 61,341 complaints received in FY17• 356,027 inspections performed in FY17• 140 inspectors

2

Rental Landscape • Number of rental units (estimated) = 273,000 (self-reported)

• 260,000 require licenses. PHA units not required to be licensed.

• Number of rental licenses = approximately 77,000

• Number of licensed rental units = approximately 208,000

• Capture rate = 80%• Where is the other 20%? Many are tangled title, deed fraud, rent-to-own

agreements, and other complicated legal situations. Suspected 14,000 tangled titles.

• Who are our landlords? • 86% of licenses for 1 or 2 unit buildings • 6% of licenses for 5+ unit buildings• 40% of units (~ 90,000) owned by landlords with 4 or fewer total units

3

Rental License Process

• License must be renewed annually. Cost is $55 per unit (as of 7/1/17). All units in one building are on same license.

• Landlords can apply: online (eCLIPSE), through mail, or in person. Approximately 60% are done online – this is the preferred process.

• License application requires a mailing address within Philadelphia.

• Landlords cannot obtain a rental license if:• There are code violations at the property (Phila. Code 9-3902).• They are not tax compliant (business taxes or property taxes at the property at

issue).

• If no rental license, landlord can be cited for code violation.

• Rental licenses not required if owner occupies one unit in a building with four or fewer units or if unit is being rented to family member.

4

Inspection Process• L&I inspects rental units on a complaint basis.

• Complaints received through 311. Most complaints from tenants re: interior issues. Also receive complaints from neighbors re: exterior issues.

• For most complaints, response time is within 20 days. More serious complaints can be within 48 hours.

• Inspector will attempt to schedule appointment with tenant if contact information is provided in complaint.

• If tenant is not home or does not provide access to inspector, inspector will leave contact information.

• Inspector will make two attempts to enter the property. If no access provided after two visits, complaint will be closed.

5

Violation Process • STEP 1: INSPECTION. If inspector finds code violations, a Notice of Violation

is issued to the owner at addresses provided on license and in city records.• Reinspection scheduled in 35 days (for most violations).

• Owner has opportunity to appeal to L&I Review Board within 30 days of initial violation. Appeals stop enforcement pending outcome of hearing.

• STEP 2: REINSPECTION. If violations remain upon reinspection, a final Notice of Violation is issued to the owner.• Second reinspection scheduled in 35 days.

• STEP 3: FINAL INSPECTION: If no compliance upon second reinspection, the inspector forwards the case to court processing unit and case is reviewed for court eligibility.

• Average 70% compliance rate after two inspections.

6

Enforcement Process • Once a case is sent to court, L&I no longer controls process.

• Court process can be several months, depending on volume of cases and available court time.

• Most violations sent to Municipal Court (fines only, up to $12,000). • If only violation is failure to have a rental license, most likely will not be sent

to court.

• Serious violations sent to Equity Court (fines and remedy in equity).• Violations involving fire alarm systems, plumbing and heating systems, etc.

• All fines and orders at discretion of judge.

• Unpaid fines sent to collections agency.

7

Cease Operations Procedure• L&I has authority to issue a cease operations order at buildings determined

to pose an immediate threat to the health and safety of occupants or the public. Examples: • No operating heating system in the winter with elderly or young child occupants. • No running water or functioning plumbing system.• Serious fire hazards including non-functioning alarm or suppression systems (multi-

family buildings) or excessive trash or debris blocking exits, etc.• Imminently dangerous structural conditions.

• Cease operations orders are an absolute last resort in residential occupancies. • Must be approved by a judge – high degree of proof required. • Involves extensive coordination with police and social services agencies.• Results in a homeless family and a vacant building.

8

Landlord Responsibilities• Keep active rental license.

• If license lapses, owner will be required to pay back years at next renewal.

• At time of each new lease, provide tenant with copies of:• “Partners for Good Housing” booklet and supplement (Phila. Code 9-3903)• Certificate of Rental Suitability (Phila. Code 9-3903)

• Certificate includes all serious violations issued more than 90 days prior. • Lead disclosure certification (Phila. Code 6-803)• Rental license (pending legislation)

• Be aware of all Property Maintenance and Fire Code requirements.

• Make prompt attempts to repair any violations.• If tenant prevents repairs from being made, appeal violations to L&I Review Board and

contact inspector.

• Keep records in order – remain tax compliant, update mailing addresses with city, apply for licenses and permits online.

• Hire a property manager if necessary.

9

eCLIPSE Application

• New in 2017 – questions re: lead disclosure certification

10

Tenant Responsibilities

• Before renting a unit, review the property history online. All information is on our website in real time:• License status• Violation status• Owner name and contact information

• If there are code violations, call 311 to report. Leave contact information (always anonymous).

• Provide inspector access to the unit. Obtain inspector’s contact information for follow-up questions.

• Provide landlord prompt access to unit to make repairs.

• Follow up through website to see status of violations.

11

Property History Search

12

Rental License Search

13

Violation Search

14

How Does All of This Affect Eviction? • L&I is not a party to any landlord/tenant actions, whether in L/T court or Fair Housing

Commission hearings. We do not have access to L/T or FHC records.

• L&I information can be used as evidence in all proceedings. • Judges and FHC should accept website printouts of licenses and violations, including printout

showing lack of a license.• In early 2019, more “official” information will be available online – including actual copies of

licenses and copies of Notices of Violation.

• L&I frequently caught in middle of landlord/tenant disputes. • Our role is code enforcement. We cannot provide legal advice, make a determination as to who

caused damage, judge whether landlord made legitimate attempts to repair, or review leases. • Example: If landlord obtains license shortly before filing eviction action, we would have no way to know that at

time of license issuance. Up to court or FHC to determine whether license was obtained for the purpose of eviction.

• If landlords/tenants maintain a good relationship, code enforcement is not usually necessary.• L&I receives complaints about approximately 20,000 rental properties annually – less than 10% of

the total number of units. That means that the majority of landlords and tenants follow the law.

15

²Created by L&I GIS Unit - 11/13/2017

Active Rental Licenses - Heat MapDepartment of Licenses and Inspections, City of Philadelphia

Low Density of Active Rental Licenses

Medium Density of Active Rental Licenses

High Density of Rental Licenses

0 2 41 Miles

Philadelphia Fair Housing Commission

Philadelphia Fair Housing Ordinance

• City Council enacted FHO in 1962

• Philadelphia Code § 9-800

• FHO established Fair Housing

Commission

• Granted investigative and

enforcement authority

• De facto enforcement

for L&I

Fair Housing Commission Key Points

• Agency where Tenants file complaints to exercise their legal rights

• Free, do not need a lawyer, efficient

• Cases end with positive outcomes for tenants, landlords and neighborhoods

Fair Housing Commission Overview

• Composed of 5 members appointed by the Mayor

• Power to hold hearings and conduct investigations in connection with any unfair rental practice

• Authority to compel the attendance of witnesses and production of documents.

FHO §9-800History (legislative intent from 1962)

• City enacted health and safety Codes to protect its residents

• Code enforcement hampered when owners evicted tenants who filed complaints

• Fearful of eviction, tenants were hesitant to report violations

The Law - FHO § 9-804Unfair Rental Practices

Whenever a premises is found in violation of any provision of The Philadelphia Code and a violation notice is issued, it shall be illegal for a landlord to:

• (a) Terminate the lease

• (b) Transfer possession of the property

• (c) Modify any term or condition of the lease

• (d) Modify the lease to collect cost of making repairs and/or if violations remain uncorrected for 1 year or more

FHO § 9-804Retaliation is also prohibited

• An owner or landlord cannot terminate or modify any terms of a lease with a tenant in retaliation for:

• Violations found against the premises

• Filing of a complaint alleging a violation

• Joining of any lawful organization

• Any other exercise of a legal right

• An incident of domestic violence or sexual assault

FHO §9-804Unfair Rental Practices (continued)

• Landlord Exceptions to FHO:

• Sale of the premises but a subsequent landlord must comply

• L&I determines that the premises must be vacant for the work to be completed

Additional DV and SA Protections§ 9-804 (6)

• Landlord must allow a tenant, who is a victim of DV or sexual assault, to terminate the lease early without penalty provided the tenant follows certain procedures.

Other provisions in FHO

• Landlord may not unlawfully retain

security deposit

• Landlord may not accept rent until lease is executed and parties given copy

• Landlord must give tenant 30 or 60 days written notice of rent increase

• Landlord of multi-family building must disclose smoking policy at lease signing

• No provisions of the FHO can be waived

Enforcement and Penalties

• If Commission finds an unfair rental practice has been committed, can issue an order appropriate under the circumstances

• Violations of the Fair Housing Ordinance are subject to fines of $300 per incident and cost of prosecution

Intake Process

• Interview

• Provide documentation such as lease, rent receipts, letters to and from landlord etc…

• Documentation of condition of property

• L&I violations or Service File Number

• Docket complaint

• Serve on landlord/owner

• Schedule hearing

FHC Hearings

• Trial structure (plaintiff, defendant, attorneys)

• Court reporter to make a record

• Testimony and evidence

• Commissioners weigh facts presented and render decision

• Issue formal orders

• 30 days to appeal to Court of Common Pleas

Fair Housing Commission Stats

• 250 cases a year

• Multiple hearings for each case

• 2015 55% of landlords without licenses

• 2016 42% landlords without licenses • 20% cases went to Municipal Court

• 2017 40% landlords without licenses • 28% cases went to Municipal Court (caveat)

FHC v. Municipal Court

Offense

• No cost to file

• Multiple Commissioners

• Violations must be closed

• Judgments usually involve repairs and payments

• Informal rules of evidence

• Standard for appeal

Defense• Cost to file

• One judge

• Violations do not have to be closed

• Judgments usually involve payments and possession of property; enforced by eviction

• Formal rules of evidence

• Standard for appeal

Municipal Court Rule 134

• If a tenant files a complaint with the FHC, before the landlord files an eviction action, the Municipal Court shall continue the case for a sufficient period to enable the FHC to hold its hearings

• If a landlord files an eviction action in Municipal Court first, the FHC will not accept the case prior to the date of the eviction hearing

Municipal Court Rule 134 (cont)

• Judge has the authority to send cases to the Fair Housing Commission.

• The cases should be continued for at least 60 days if the tenant can prove the rent is current and the property has Code violations, or the eviction action is retaliatory

Philadelphia Commission on Human Relations Fair Practices Ordinance § 9-1108

Housing Discrimination

• Race• Ethnicity • Color• Sex• Sexual orientation • Gender identity• Religion • National origin

• Ancestry • Disability • Age• Marital status• Source of income• Familial status• Domestic or sexual

violence victim status

Thank You!Rue Landau, Esq.Executive DirectorPCHR/FHC601 Walnut St, Ste 300 South Philadelphia, PA 19106Phone 215-686-4673Rue.Landau@phila.govwww.phila.gov/fairhousingcommission

Mayor’s Task Force on Eviction Prevention and Response

Relevant Legislative Proposals

November 11, 2017

Number Topic Councilmembers Summary Current Status

Bill 170827 Squatters, Rental License

Oh Establishes procedures to remove squatters from property. A person who occupies a property without the permission of the owner of record of a property is presumed to be a squatter. If the current owner complains to the Police, the Police immediately notify the squatter, who has 48 hours to leave the property. Describes a squatter as someone who is “creating a condition that could erupt in violence endangering lives and promoting the prospect of injuries to persons and damage to properties.”

In Committee on Housing, Neighborhood Development, and the Homeless

Res. 170841 Squatters, Rental License

Taubenberger, Reynolds Brown, Domb, O’Neill

Authorizes the Committee on Housing, Neighborhood Development, and the Homeless to hold hearings to discuss the impact of squatting in Philadelphia, the victims of squatting, and additional measures and best practices to prevent squatting.

Adopted Hearing held 11/6

Bill 170853 Tenant Rights, Rental License

Henon, Greenlee Requires that tenants of rental units be provided with a written disclosure of the Landlord’s Rental License Information to accompany lease. The disclosure will provide contact information for L&I to verify the information provided before the lease is executed

In Committee on Rules

Bill 170854 Tenant Rights

Jones, Parker, Gym

Amends the code section “Unfair Rental Practices” to include language about good cause evictions. Requires that landlords not evict tenants upon expiration of a lease without good cause. “Good cause” includes failure to comply with a material provision of the lease or with reasonable rules for the premises. “Good cause” does not include a proposed rent increase or other change to the terms of the lease unless the tenant has been given the option of accepting the proposed changes, and has declined the option. The option must be offered even when the landlord is renovating the premises and the tenant would have to vacate during renovations.

In Committee on Law and Government

Bill 170560 Tenant Rights

Jones, Parker, Blackwell, Gym, Greenlee, Reynolds Brown

This bill adds language about rental housing to the Philadelphia code section relating to Condominium and Cooperative Conversions. It would require property owners to give their rental tenants six months’ notice before making a significant lease change involving a planned significant building renovation or a change in the general use of the property.

In Committee on Law and Government