The Eviction Process For private landlords and PHA landlords - City of Philadelphia
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The Eviction Process For 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 5 th 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 5 th 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 propertyCity of Philadelphia
Department of
Licenses & Inspections
City of Philadelphia Task Force on Eviction Prevention and Response
November 21, 2017
1L&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 2Rental 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
3Rental 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.
4Inspection 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.
5Violation 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.
6Enforcement 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.
7Cease 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.
8Landlord 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.
9eCLIPSE Application
• New in 2017 – questions re: lead disclosure certification
10Tenant 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.
11Property History Search
12Rental License Search
13Violation Search
14How 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.
15Active Rental Licenses - Heat Map
Department of Licenses and Inspections, City of Philadelphia
Low Density of Active Rental Licenses
Medium Density of Active Rental Licenses
High Density of Rental Licenses
Created by L&I GIS Unit - 11/13/2017
0 1 2 4 Miles
²Philadelphia Fair Housing
CommissionPhiladelphia 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&IFair 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 neighborhoodsFair 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 §9-800 History (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 § 9-804
Unfair 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
moreFHO § 9-804
Retaliation 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
assaultFHO §9-804
Unfair 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 completedAdditional 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 Defense
• No cost to file • Cost to file
• Multiple Commissioners • One judge
• Violations do not have to be
• Violations must be closed closed
• Judgments usually involve • Judgments usually involve
repairs and payments payments and possession of
• Informal rules of evidence property; enforced by
• Standard for appeal eviction
• Formal rules of evidence
• Standard for appealMunicipal 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 • Ancestry
• Ethnicity • Disability
• Color • Age
• Sex • Marital status
• Sexual orientation • Source of income
• Gender identity • Familial status
• Religion • Domestic or sexual
• National origin violence victim statusThank You! Rue Landau, Esq. Executive Director PCHR/FHC 601 Walnut St, Ste 300 South Philadelphia, PA 19106 Phone 215-686-4673 Rue.Landau@phila.gov www.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, Oh Establishes procedures to remove squatters from property. A person who In Committee on Housing,
Rental occupies a property without the permission of the owner of record of a Neighborhood
License property is presumed to be a squatter. If the current owner complains to the Development, and the
Police, the Police immediately notify the squatter, who has 48 hours to leave Homeless
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.”
Res. 170841 Squatters, Taubenberger, Authorizes the Committee on Housing, Neighborhood Development, and the Adopted
Rental Reynolds Brown, Homeless to hold hearings to discuss the impact of squatting in Philadelphia,
License Domb, O’Neill the victims of squatting, and additional measures and best practices to Hearing held 11/6
prevent squatting.
Bill 170853 Tenant Henon, Greenlee Requires that tenants of rental units be provided with a written disclosure of In Committee on Rules
Rights, the Landlord’s Rental License Information to accompany lease. The disclosure
Rental will provide contact information for L&I to verify the information provided
License before the lease is executed
Bill 170854 Tenant Jones, Parker, Amends the code section “Unfair Rental Practices” to include language about In Committee on Law and
Rights Gym good cause evictions. Requires that landlords not evict tenants upon Government
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.
Bill 170560 Tenant Jones, Parker, This bill adds language about rental housing to the Philadelphia code section In Committee on Law and
Rights Blackwell, Gym, relating to Condominium and Cooperative Conversions. It would require Government
Greenlee, property owners to give their rental tenants six months’ notice before
Reynolds Brown making a significant lease change involving a planned significant building
renovation or a change in the general use of the property.You can also read
