News

December 5, 2003

The Gordon administration has put forth a version of a rental code for unincorporated areas of New Castle County that is significantly different in several respects from a proposed code developed over a period of about 18 months by a taskforce and ready for introduction into County Council by its president, Christopher Coons.

The alternate proposal was prepared by the Department of Land Use in order to "give us (the department) the ability to administer it efficiently and enforce it effectively," general manager Charles Baker told a meeting of umbrella civic association officers who meet monthly with County Executive Tom Gordon.

Its more immediate effect could well be igniting a major political squabble among members of Council and between Council and the executive branch at the beginning of an election year.

The department’s proposed ordinance not only would require registration of the estimated 35,000 rental units -- both apartments and houses -- but also that owners acquire a license, valid for five years, for each unit. As Delaforum previously reported, Coons's proposed ordinance would require only registration, for which there would be no charge. The amount of the fee to obtain a license is not specified in the draft of the administration's proposed ordinance distributed at the meeting on Dec. 4.

Under that proposal, the department would be empowered to inspect living units using a "systematic managed system" rather than a random system that would be required by Coons's version. In both versions, code enforcement officers would continue the present practice of responding to complaints from tenants and other sources.

The combination of licensing and inspection would be backed up in both versions by a variety of civil and criminal actions in justice-of-the-peace court, but the department version also contains a provision giving it authority to revoke or suspend a license and thereby put a landlord at least partly out of business until violations are corrected.

The department's version does not contain a so-called 'sunset' clause. Coons's does. 'Sunset' is legislative jargon for a requirement that a law be renewed after being in effect for a stated period of time or else allowed to expire. Coons's proposed 'sunset' time is two years.

Both versions contain the text of a printed guide informing tenants of their rights and avenues for redress of complaints along with a requirement that landlords distribute it to all present tenants and give it to new tenants at the time they sign a lease or enter into another form of rental agreement. The department's draft claims, however, that including the guide in a law is not necessary.

Both versions provide for penalties for failure to register properties or to distribute the tenants' guide.

Gordon said the key difference between the two versions is that the department's "is the one that has some teeth in it." For the most part, that version addresses the concerns which Gordon raised in an interview with Delaforum when Coons first made public his version at a Council executive committee meeting.

Coons, who did not attend the civic leaders meeting, later told Delaforum that he intends to follow through with plans to introduce his version into Council on Dec. 16. Theoretically, at least, Council could enact the measure by mid-January.

He said he is open to considering compromise, but is not willing to negotiate without participation by several members of the taskforce. He said he is all but certain that there cannot be any compromise on the registration-permitting issue nor on random-vs.-universal inspection.

"I am willing to talk, but I resent their coming in at the 11th hour after we've been talking and working on this for 18 months." he said. He noted that the land use department has been represented at taskforce meetings for that entire time.

"I am disappointed that their proposal still differs from the consensus product of the broadly-representative working group on more than a dozen points," he said. He characterized the department's version as "largely the version they presented [to the taskforce] back in May."

Coons said he recognizes there is a good possibility that there will be competing ordinances before Council. "I'd like to see us come together as close as possible, but this is something that may have to be fought out on the floor of Council.

He declined to speculate on his ability to garner support from three other Council members to enact his ordinance. Even more difficult would be rounding up the four other votes necessary to override Gordon's likely veto of the legislation

"I don't like to count my votes in advance. All I can say at this point is that I am confident that Council members, when they hear the testimony, will decide the issue on its merits." he said.

Baker has given copies of the department's proposed ordinance to Coons and the other members of Council and said that further discussions with the law makers are planned. Several participants at the civic leaders meeting suggested reconvening the taskforce to review the land use department's proposal.

If the intensity of the discussion at the civic leaders meeting is any indication, the rental code is looming as a major public issue with the turning of the year.

William Dunn, of the Milltown-Limestone Civic Association, argued in favor of passing Coons's version as a viable starting point toward enactment of a strong code. "Nobody thinks [it] is perfect, but it's a step in the right direction," he said. Dunn participated in some of the taskforce's meetings.

"Everybody wants to see something. Something is better than nothing," said Ken Murphy of the Greater Hockessin Area Development Association.

George Lossé, of the Claymont Community Coalition, who was a member of the taskforce, said he does not agree with some of the elements of Coons's proposal, but added that he is "more concerned with improving conditions of some of our rental housing."

"We've worked out and nailed down certain things [but] we're deadlocked on others. ... The taskforce got about as far as they were going to go," Dunn said. "Let's move forward at this time and get something on the books."

Sherry Freebery, the county's chief administrative officer, challenged that line of thinking. "That is not the way to get good legislation," she said. "The differences [between the versions] are not as great as you make them sound. We've come this far; let's keep working until we get something that is right."

She specifically advocated going beyond simple registration of rental units. "Registration is nice, but it is hollow unless there is a permit issued," she said.

She came down even more strongly in opposition to random inspection of rental units. "Courts hate random and will overturn it every time," she said. "There is no body of law [providing for] random inspection of people's homes. We'd end up fighting this all the way to the Supreme Court."

Baker said that 40% of the apartments the department now inspects are not up to standard. But, to a large extent, code enforcers are stymied by difficulty in imposing penalties with deterrent qualities.  Fines actually collected from all types of code enforcement during 2002 totaled only $277, he said. On the other hand, having the authority to administratively "yank a permit" is a potentially potent weapon.

Contending that inquiries around the nation were unable to locate any jurisdiction with a rental code dependent upon random property inspection, Baker proposed a system that would radiate out from complaint-initiated inspections and announced inspections of apartment complexes. That, he said, would result in some 7,000 inspections a year and 35,000 in five years. Coons's proposal calls for an attempt to conduct random inspection of at least 5% of all units each year. Baker said that approach would force the department to employ resources against properties which are code-complaint to the detriment of being able to go after those likely not to be.

Assistant general manager George Haggerty later said such a targeted approach would be effective. He noted that 57 complexes averaging 313 units account for half of the total rental housing in the county. Moreover, he added, professional code enforcers know where to look for problems that need remedying. "You don't need a statistical journey to find out there are problems in housing that is 20 and 30 years old," he said.

Baker said a random inspection system would cost more and result in fewer inspections, but he was not specific about the difference nor did he indicate how great an expansion of the code enforcement force would be required. In a different context, he did refer to Coons's proposed two-year 'sunset' provision as not providing stuffiest time to recruit and train inspectors.

Throughout the discussion, there was considerable effort by the administration officials not to disparage the work of the taskforce. Scattered among several comments favorable to its work and accomplishment, however, they offered some barbed criticism.

Gordon, for instance, said the taskforce was "stacked" and attributed active support for a rental code by the Delaware Apartment Association as a thinly veiled attempt to get a weak law enacted. Otherwise, he said, that trade association would not have assessed its members a total of more than $100,000 to hire Shipley Associates to further its effort. Larry Nagengast, a Shipley vice president, has been the  spokesman for the group at some civic association presentations.

Responding in a statement to that comment at Delaforum's request, Fred Quercetti, president of the association, said it assessed members $6 per rental unit to finance all its activity in connection with the rental code. He described the assessment as "a mere pittance compared with an annual registration fee of $30 or more that the Gordon administration wants to impose on responsible landlords to pay for a burdensome inspection program whose need the administration has not been able to justify."

Coons said he resents "an implication by the county executive that any one group dominated the taskforce when a very wide range of groups very broadly representative of varied interests made significant investments of time, money and effort to participate in 18 months of deliberation to come up with a result that is fair and balanced."

Baker at one point referred to Coons's draft as favoring "a screwed-up random [inspection] process I can't implement." Haggerty said that when he presented the department's position opposing random inspection at a taskforce meeting "all we got was an intellectual discussion about how you can do random sampling to determine if you have a problem."

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