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OFFICE OF THE CITY CLERK
K.\REEMAH FOWLER, CITY CLERK
HEALTH &PUBLIC SAFETY FEBRUARY 6, 2019 5:30 P.M.
Committee Members Present: Jo M. Broden, John Voorde, Karen White (late)
Committee Members Absent: Oliver Davis
Other Council Present: Regina Williams-Preston, Tim Scott (late)
Other Council Absent: Gavin Ferlic, Jake Teshka, Sharon L. McBride
Others Present: Jennifer Coffman, Bob Palmer
Presenters: Suzanna Fritzberg, Tracy Skibins, Marlaina Johns, Jamie
Morgan, Judy Fox
Agenda: Bill No. 03-19- Rental Safety Verification Program
Overview and Updates- Suzanna Fritzberg, Deputy Chief
of Staff to the Mayor and Tracy Skibins, Director of Code
Enforcement
Committee Chair Jo M. Broden called to order the Health and Public Safety Committee meeting
at 5:30 p.m. She introduced members of the Committee and announced the lack of a quorum,
rendering the Committee incapable of taking official legislative action. She stated, Everything is
taped tonight and there will be minutes, so everyone will have access to the video and the minutes.
The plan for this meeting is really an easy agenda. We will first (1St) let the Administration and
staff who are proposing this as petitioners to the Council present. I don't think we set a time limit
on that,I know we discussed it though.Would you be able to nail it in thirty(30)minutes,possibly?
I think we would all be appreciative of that. Then, we will have an opportunity for questions from
Council Members but, more importantly, there will be a time for members of the public to speak
and ask questions. I think we can make the promise that anybody that speaks tonight or has been
receiving notifications from either the Administration side or you've been in touch with me as
Committee Chair or other Council Members, we will try to proactively reach out to you and get
you that information, so you don't have to search for it on the City's website. She then gave the
floor to the presenters.
Bill No. 03-19- Rental Safety Verification Program Overview and Updates- Suzanna
Fritzberg, Deputy Chief of Staff to the Mayor and Tracy Skibins, Director of Code
Enforcement
Suzanna Fritzberg, Deputy Chief of Staff and Policy Director to the Mayor of South Bend with
offices located on the 14th floor of the County-City Building, stated, Please let me know if you
can't hear me well enough. I would like to thank the Council Members here, especially
INTEGRITY SERVICE'ACCESSIBILITY
JENNIFER M.COFFMAr Bic L.TIRADO JOSEPH R.MOLNAR
CHIEF DEPUTY/DIRECTOR OF OPERATIONS DEPUTv/DIRECTOR OF POLICY ORDINANCE VIOLATION CLERK
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CITY OF SOUTH BEND OFFICE OF THE CLERK
Councilmembers Broden and Williams-Preston who are sponsors of the bill. Also, I would like to
thank all the members of the community here to engage in dialogue about this. Many individuals
who are here are individuals my team and I have met with previously but there are some new faces.
We are eager to continue the discussion that has been focused around this proposal. So, this really
has emerged from a variety of things including conversations with President Scott who has been a
leader on rental housing issues, the Administration's focus and concern regarding lead poisoning
which is more likely to affect low-income renters,a desire to improve Code Enforcement processes
and then some targeted community engagement efforts that helped us pinpoint some issues around
access to safe and affordable housing. The presentation we are making today (which is available
in the City Clerk's Office)is a product of a group that included representation from a broad variety
of City departments including Code, IT, the Economic Empowerment team, the Mayor's Office
and the Fire Department as well as input from community partners that include renters, landlords,
property owners, legal experts, community neighborhood organizations and service providers.
She continued, To give you the outset, I would like to quickly overview rental housing in South
Bend. I won't read every part of this(referencing the presentation)but there are about 16,000 rental
housing units in South Bend. It is approximately forty percent (40%) of the housing in the City.
That comes from Census records. We know that a large majority of that is considered aging
housing stock.
Committee Chair Broden interjected, Will your presentation be available?
Ms. Fritzberg replied, Yes, the City Clerk's Office has it.
She went on, So, 16,000 rental units,forty percent(40%)of the City,and it really varies depending
on neighborhoods. We know that about seventy percent(70%)of our units were built before 1969.
There was a qualitative engagement process that took place last year through a partnership with
Results for America. That is a consultancy lead by the former Mayor of Philadelphia, Michael
Nutter. We worked closely with some City team members who conducted a qualitative
engagement exercise with service providers, banks, property management organizations,
neighborhood organizations and CDCs on a range of issues. One (1) of the things that strongly
emerged was a shared concern about access to decent and safe housing in South Bend. We know
that is something that has been at the forefront of Council Members' minds but also borne out in
deeper engagement with service providers and community members.
She continued, We also know there is a really powerful link between housing and resident health.
So,our records suggest that a significant portion of rental units in South Bend contain hazards that
compromise safety and habitability. Those can be things that can be associated with chronic health
issues such as mold or lead, or even acute dangers like fire safety. In particular, in South Bend
there are issues with lead paint. It isn't necessarily the presence of lead paint itself as the problem,
but the condition of the paint. When lead paint starts to chip, flake and deteriorate, that's when it
can become respirable and can get into the bloodstream. I want to note, the proposal we bring
today reflects deep engagement with health officials including Dr. Mark Fox, the Dean of the IU
Med School and the Head of the St. Joseph County Health Department, the Lead Affinity Group
which includes public health faculty and workers and then also the support of the Fire Department.
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She went on, That is kind of a high level of overview of the conditions that lead us to what we
would like to talk about today. Tracy and I will do a little bit of back and forth. She will take us
through some examples of what Code sees when it comes to rental housing.
Tracy Skibins, Director of Code Enforcement with offices located on the 13th floor of the County-
City Building, stated, I first (1St) would like to echo everything Suzanna just said. I appreciate
everyone being here today. As you can see from the map right here(referencing the presentation),
in 2018 we had approximately eight hundred and twenty-five(825)new housing cases.As Suzanna
mentioned before, we have approximately 16,000 rental properties in the City. Eight hundred and
twenty-five (825) is such a small number that we know there are other concerns out there that we
are just not aware of yet. The dots on the map indicate where those kinds of Code violations were
located.
She continued, Here (referencing a slide in the presentation) is an example of what we will be
looking for. This right here was an initial call to our office with the tenant saying they had no heat.
It was forty-five(45)degrees inside the house. Once the inspector went inside the house to inspect,
these (referencing the slide in the presentation) are some of the things they found while they were
in there. Had we not been going to the house in the first (1st) place, we would never have known
anything about the conditions you see right here.As you can see,there is water damage,the ceiling
is caving in, the next one (1) has ceiling tiles that are falling. Here is another example of a water
heater rusted out and past its normal life expectancy with water leaking out of the bottom. Right
here we have a burst pipe which resulted in a flooded basement. Here we have a missing cover on
an electrical outlet and right there is a fuse box without a cover on it. These are some of the things
we are concerned about. Had we not been invited to the homes in the first (Pt) place, we would
have never seen these concerns. This is what we want to try and prevent. Right here you can see a
dangling light fixture as well as a missing smoke detector. Outside the house, you see the
possibility of lead paint along the window sill. Cosmetic issues are not something we will be
looking for,however. We are looking for issues that contribute to bare minimum health and safety
standards.
Ms. Fritzberg stated, I'm going to provide an overview of the policy perspective. I want to start by
talking a little bit about how rental housing inspection generally works. There are two (2) main
mechanisms for housing inspection. Either it is a complaint-based inspection, which is what we
operate now, or it is a proactive inspection, which is what we are proposing. So really, what we
are here to advocate for today and to propose to Council is a process change. Rather than reviewing
housing safety complaints on a case by case basis and relying on tenants to report issues, we want
to proactively conduct inspections to ensure compliance with basic safety standards. I want to
really emphasize that these are existing safety standards. We are not creating any new safety
requirements for property owners. The standards required for compliance with rental inspection
already exist in the International Property Maintenance Code and the Unsafe Building Law. This
is really about a process change and not about a new set of safety standards.
She went on, Proactive rental inspection is a tool that is used in cities across the United States
including both of the two (2) other major college towns in Indiana, Bloomington and West
Lafayette. I know the materials we circulated to Council previously (which are available in the
City Clerk's Office)include some detailed case studies from a few other cities including Rochester,
New York, Kansas City, Sacramento, Los Angeles, and Washington D.C. and it is fairly wide-
spread as a policy tool. The major benefit is it allows for greater efficiency because it is a
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realignment of process. Also, because these are the complaints we do know about, one (1) of the
biggest things that has emerged in all of our conversations with community groups and renters is
that there is a real fear of reporting an unsafe housing condition. People may feel they are likely to
be evicted and they may actually be evicted. I want to emphasize that this is a thing that actually
happens. We are finding that if we are getting eight hundred and twenty-five (825) complaints in
a year but the conditions we are seeing when we happen to go into properties are as bad as the
cases we've shown you, we know that signal is wrong and there are people afraid to reach out to
us. We want to realign this so that the burden of ensuring those safety standards are met is not on
the vulnerable tenant,but instead on the property owner and City to ensure we are protecting them
as best as possible. The appropriate analogy for this is a restaurant safety inspection.You wouldn't
eat in a restaurant that hadn't received a health grade. We know you get over food poisoning in a
day or so,but housing can be associated with quite severe health problems.Just like we proactively
enforce safety standards in restaurant inspection, we believe that is an example of how we can
address housing safety standards.
She continued, As Tracy touched on, we are looking at minimum safety standards. We are really
taking our cues from HUD guidelines which outline about eight(8)qualities associated with a safe
and healthy home. It is meant to be kept dry, clean, safe, well-ventilated, contaminant-free, well-
maintained and femerally controlled. These are fairly basic criteria and our goal is to ensure those
are standards that are uniformly followed so that tenants across South Bend can access safe and
healthy housing. As I mentioned,the goal is to promote the health and safety of renters by ensuring
the properties meet existing minimum safety standards for environmental and building
maintenance. The way this works is a Code Enforcement Inspector will look at the conditions of
the property inside and outside of the unit and have a checklist of items to look for and I think we
have some copies of that which I believe have been circulated to Council, but we will certainly
make it available. It is a visible inspection, so it would take about twenty (20) minutes. We are
looking at things like chipping and peeling paint, visible leaks, electrical systems and adequate
heat. Following the successful completion of the inspection, Code Enforcement would issue a
Certificate of Rental Safety. Our hope and goal is that the vast majority of units will qualify for a
five(5)year certificate,meaning this is not an annual inspection. There is then a sliding scale. One
(1)thing we've heard from a lot of people is that it is difficult for people to find safe and affordable
housing just because they don't know where to look.Part of this will help us create sort of a register
of properties that have this safety certification that we could then put on the City's website. That
is a marketing tool for landlords and property owners but also a resource for residents.
She went on,A question I'm sure you may have deals with what the financial impact will be of all
of this. As you may recall, in the budget cycle prior to this previous one (1), Council approved
about $180,000 for the hire of two (2) Code Inspectors that would be targeted for this program.
Tracy can speak more to this, but Code has realigned the inspection team, so we are actually
looking at about four(4) inspectors including our Chief Inspector, Jim, who is here today. When
we are thinking about financial impact, we look at this as an investment in the health and safety of
City residents as well as the maintenance of the City's housing stock. There is no direct cost to
property owners unless they are renting housing that doesn't meet safety guidelines and they aren't
making appropriate repairs to that in a timely fashion. I would like to point this out as well that we
see this as an investment that when funds are invested in public health it generates savings over
time. So, one dollar ($1), according to the American Public Health Association, invested in lead
poisoning prevention generates savings between seventeen and twenty-one dollars ($17 - $21) in
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CITYOFSOUTH BEND OFFICE OF THE CLERK
future health care costs. I won't lie and say this is a free program, but it is a very worthwhile
investment in the health and safety of our residents.
Ms. Skibins stated, The Rental Safety Verification Program (RSVP) is a new City service and it
will take some time for all rental properties to be inspected. The plan is a four(4)month phase-in
period. So, for four(4)months after implementation, the landowners will have the opportunity to
make repairs or to reach out to us and request an appointment. After four (4) months, Code will
phase-in the program by Census Tract. The plan is to start with Census Tract number six (6) since
that was the Census Tract with the highest level of lead. We then identify the next Census Tracts.
We will then transition to the Census Tracts that have the highest number of rental properties. The
program will inspect twenty percent(20%) of rental housing per year the first(1st) three(3) years
of the program. So, in three (3) years we hope to accomplish twenty percent (20%) of the rental
housing stock. The certificate of rental safety is issued for a period of one(1)to five(5) years. So,
as Suzanna mentioned before, if there is a landlord that reaches out and we go out and inspect the
property and the property is fine, and we have a lot of responsible landlords that will do this, they
wouldn't have to see us again for five (5) years.
She went on, The inspection should only take approximately twenty (20) minutes. The landlords
will know, in advance,what we are looking for. We will supply a checklist in hard copy and it will
also be found on the City's website. So, there is nothing that is going to be hidden so everyone
will know in advance what it is we are looking for. So,landlords have to the ability to make repairs
in advance to us even coming up and that is the goal. We know landlords' time is very valuable
and Code Inspectors' time is as well. We want this to be as quick as possible. Again, we are
focusing on minimum safety standards. Here are some examples(referencing the presentation)and
we do have checklists we are happy to supply. We did make some revisions to the list after
speaking to some community members as well. All residential rental properties will be required to
be on file with the Department of Code Enforcement and obtain a Certificate of Rental Safety.
There are certain properties, however, that will be able to apply for a waiver of exemption. For
example, rental properties built within the last ten (10) years and federal or state subsidized
properties that have an annual inspection every year anyway. Additionally, group homes, contract
sales, short-term occupancy, and owners that live on the premise and rent out to someone else.
Owners may engage in private inspection as well. So, if you decide you don't want the City to
inspect the property, we are happy to have them hire someone to do that.
She continued, We have some enforcement tools,too, as I know this was a question by many.
Marlaina Johns,Deputy Director of Code Enforcement with offices located on the 13th floor of the
County-City Building, stated, I do want to add to Tracy's remarks. After speaking with the public,
we did make an exemption added if there had been real estate inspection done within the last three
(3) years as long as that report is provided. For Code Enforcement to gain inspection compliance,
what we are looking at is first (1st) sending a postcard to owners and occupants. We are going to
give them a heads up that this program has started and that they should contact our office to
schedule an inspection. If after we send that postcard we don't receive any kind of follow up, we
will send a letter out to both the owner and property occupant. That would serve as a little bit of a
warning. If they don't comply they would face potential fees or an inspection warrant. After that
letter has been mailed out,fourteen(14)days later we will start issuing weekly penalties for failure
to comply. About thirty (30) days after we start issuing those weekly penalties, we will send a
second(2nd)letter that has strong language that will warn them that if they continue to not schedule
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CITY OF SOUTH BEND OFFICE OF THE CLERK
an inspection, then we are going to seek an inspection warrant on the property. We'll also post it
as a No Inspection Certificate and that will be a placard that will go on the outside of the unit or
structure. We will then go ahead and obtain an inspection warrant from the court and carry that
out.
She continued, What happens when we go out there and they fail the inspection? We are going to
give them a period to be able to make the repairs. So, they will receive the inspection report from
our department. They will also be on the property during the inspection, whether it is the tenant or
the property owner, they will be able find out what it is we would like for them to repair. Then in
the mail,within ten(10)business days,they will receive the inspection report that will specifically
lay out what it is we saw to serve as a reminder of what needs to be addressed. Re-inspections will
have to occur every sixty(60)days to make sure some kind of work is being done on the property.
The first(1St)inspection is free and the first(1St)re-inspection is free,the third(3rd)inspection and
thereafter, each inspection will be one hundred dollars ($100). Weekly penalties may also be
ensued if there is something going on and they aren't making any repairs to the property, we do
want to motivate people to make those repairs. If nothing happens then,we might post that property
for No Inspection Certificate and illegal to occupy for non-owner occupancy.
She went on, One (1) of the big and special certification compliance pieces we have is if we go
into a structure and actually need to condemn the property, that is like the worst of the worst that
nobody should live in. The inspector would go out and verify that is the condition, then the
inspector will need to get approval from the Chief Inspector, the Deputy Director or the Director
of the Department to go ahead and condemn that property. The person will be told they have
twenty-four(24)hours to remedy the situation. They will also be sent a letter that gives them that
twenty-four (24) hours to make those repairs or get those tenants out. If they fail to do that, we
will try to get the occupants to a safe location. So, we are going to work with St. Vincent DePaul
to try and help get them assistance to have a place to go. Hopefully the landlord might also have
other properties to move them into. We will post the unit as No Inspection Certificate and illegal
to occupy for non-owner occupancy and we are going to issue fines that will double for every week
they continue to be in violation going up to $7,500 per week. I believe the fifth(5th)week is when
that kicks in. As I mentioned, people that we do have to relocate because of the worst properties,
we are going to help them either do a down payment, break their lease or whatever the case may
be to give them some financial assistance, up to eight hundred dollars ($800) depending on their
household size and what their need is.
Jamie Morgan, Project Manager for the Mayor of the City of South Bend with offices located on
the 14th floor of the County-City Building, stated, Rental Inspection for us is going to be part of a
suite of programs that the City is offering in order to assist with homes and home repair to really
make sure we are providing decent, safe and sanitary housing. Moving forward, we are looking at
two (2) big programs through the City that allow us to utilize grants in order to help people make
repairs on homes that are identified either through this program or self-identification. Our first(1st)
one (1) is our lead hazard reduction grant. The City received about $674,000 through the State in
which we are doing interim control repairs for lead. This is in addition to winning $2.3 million
from HUD which should kick in within the next six (6) to eight (8) months. We are hopeful for
that as well. These will be grants distributed directly to homeowners and rental properties so that
they can make the repairs needed to live lead-safe here in South Bend. Additionally, we've
launched a suite of home repair grants that provide small-scale home repairs of up to five hundred
dollars ($500). In addition to our UEA Pilot Program that will help a certain geography of homes
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CITY OF SOUTH BEND I OFFICE OF THE CLERK
within the City with major home repair programs. As we look toward expanding both of those
programs,we are working with our community groups currently doing weatherization and building
up programs to support them with that as well. So, we are really trying to build a comprehensive
suite of both enforcement tools and home repair grants so that we are able to improve the housing
stock within South Bend.
She continued, What was very important to us as we started this process of building this policy
and the legislation was our community engagement piece. I provided here (referencing a slide in
the presentation)a brief list of the amazing people we were able to meet with.We are very thankful
for them lending their time and talent to us to build this policy. In particular, our partner in this is
St. Vincent DePaul and they've been taking on our relocation assistance. Some others include our
area landlord groups,property investors, St. Joseph County Health Department, our Lead Affinity
Group, Neighborhood Resource Connection and the neighborhood associations, some of our
housing providers such as South Bend Heritage Foundation, Southmore Mutual Properties,
Neighborhood Development Association, the properties that Anne Mannix manages, and Tim
Sexton from Notre Dame Public Affairs. In addition,there are non-profit community partners such
as United Way, La Casa de Amistad, our migrant worker community, The Community Forum for
Economic Justice and various other valuable community leaders. We've also been in talks with
the South Bend Human Rights Commission and their relationships with HUD in addition to our
relationship with the South Bend Housing Authority who feels this will be a very cooperative
program with them. So, South Bend Housing Authority has a lot of trouble trying to find quality
rentals and so being able to provide those on the private market will help alleviate the stress of our
public housing. At this time, I would like to enter into the record various letters of support that
we've received from our community members (available in the City Clerk's Office).
Committeemember Karen White arrived at the meeting at 6:01 p.m. Committeemember White's
arrival initiated a quorum for the Health and Public Safety Committee.
Judy Fox, 725 Howard Street, stated, I did put my letter in the mail to you all, as well, but you
probably haven't gotten it yet. I want to point out that I've worked in this community for more
than twenty(20) years and I represent low-income renters and home owners. We have seen a real
increase, I think since the financial crisis, in properties with really serious problems. Part of that
has to do a lot with, I think,people bought properties after the crisis and they were in bad condition
thinking they were going to flip them and make money but perhaps they didn't have the capital to
do it and they rented them anyway. The properties I'm talking about have extremely serious
problems. I think it's really important to point out how these problems impact communities. It's
not just those renters that are impacted. The children have to change schools often and they don't
do as well. They get sicker and that stresses our health programs. The legal system is extremely
difficult, it is not user friendly and it is very hard to deal with these problems if you happen to be
a renter in this situation. A common situation we have is that a renter agrees to rent a place, they
go and look at it and it is not quite ready, they are assured it will be ready in thirty(30) days after
they give notice, those thirty(30)days come and they go to move in and it is not ready. The kinds
of things I am seeing, you saw on the presentation. I had a renter who had no heat last week. All
of you can imagine what last week without heat must have been like. Luckily,we found temporary
housing for her and the landlord finally put heat in. I have had homeowners go ninety(90) days in
the summer with no water. I had a student at Notre Dame who had to walk to campus everyday to
use the bathroom because his toilet was left disconnected for three(3)weeks. I had another woman
rent an apartment and her toilet sat in her bathtub for three(3)weeks.These are the kinds of things
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CITY OF SOUTH BEND I OFFICE OF THE CLERK
we are talking about. We aren't talking about cosmetic issues. We are talking about basic human
dignity and allowing people to live, essentially, a safe life. I think it is incumbent on all of us to
care about how our neighbors are living and to work with, frankly, the good landlords out there
who, perhaps, if people knew they were there they could rent from them. I have no qualms in
putting the bad landlords out of business. We have mostly good landlords in town, but we have a
handful of slumlords who are taking advantage of our community and renting properties for eight
hundred dollars ($800) to $1,000 a month that have no heat, no water, holes in the foundation,
holes in the roof and no electrical systems. These are basic things that need to be done. Frankly, if
you can't afford to maintain the property with those basic needs, you shouldn't be in the business
of renting property. I also have a lot of research data on this issue that I can supply that speaks to
the negative effects of unstable housing to a community.
Ms. Morgan continued, I've got one(1)more slide(referencing the presentation). So, since filing
the bill, we've had the opportunity to meet with a lot of our community partners. We've
incorporated their feedback into the bill and so, we do have the following changes. We looked at
simplifying the minimum safety standards. So, for example we are changing the line that said all
windows needing to be operable to one(1)window operable per habitable space. We are focusing
on those hazards and really defining that so people know what to expect and that people are able
to succeed in this program upon first(Pt) inspection. We did remove a certificate transfer fee. We
added waiver eligibility for real estate sales transactions, if we are able to see an inspection has
been done within a three (3) year window because those are very comprehensive and would
certainly meet the minimum standards we are looking for. We did remove the requirement to post
the rental occupancy certificate outside the property so that wouldn't tag the property as the one
(1)rental on the street. We added the potential of self-inspection if a property has met the five(5)
year certification protocol, as part of the monitoring process ongoing with this. We made a change
to the multi-unit inspection. So, if a property has six (6) units, we would look at doing sampling
of that rather than inspecting every unit, rather than having them meet the criteria of having ten
(10)units. Our property owners asked us if the designated agent could be the tenant for the purpose
of scheduling and attending inspections and that is totally fine with us. And we are also planning
on doing a lot of community engagement and workshops moving forward with this program,again,
with the intention that we really want people to understand and succeed with this program moving
forward.
Committee Chair Broden then opened the floor to questions and comments from Committee and
Council Members.
Committeemember John Voorde stated, At first (1St) brush of this, obviously the intent of this is
commendable. But, I just wonder if the numbers are realistic. If you've got 16,000 rentals and
you're going to do 3,200 a year, with three (3) inspectors, and the ones found in non-compliance
will have to have a re-inspection, then you've got the office costs,just seems like it's a program
that is well-intentioned but may expand into, I don't want to say bureaucracy,but something much
more than is advertised. I suppose you can defend all these numbers and you wouldn't just throw
them out there, but that is the first (Pt) thing that strikes me. Can this really be done effectively?
And, if the numbers themselves appear to be cumbersome or not manageable, I'm still not
convinced that a complaint-driven program wouldn't work well-enough. If you've got the
associations that represent landlords and you've got neighborhood organizations promoting this,
and you do an effective job communicating all these things that rental properties have to have, and
you can monitor whether or not someone's rights are violated if they feel threatened or,in fact are,
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removed from the property. Isn't that enough? Three(3) years will only yield sixty percent(60%)
of the properties.
Ms. Skibins interjected, Twenty percent(20%), actually, after three (3) years.
Committeemember Voorde continued, Wow. So, how long will it take to inspect all 16,000
properties? Well, I suppose you wouldn't have to inspect all of them, but still.
Ms. Skibins replied, No, and that is our hope. That is another reason why it is very important we
get all the information out to everyone in advance and they know what it is that we are looking
for. We don't have a lot of time, landlords don't have a lot of time, and we want to make it as easy
as possible.We have crunched the numbers and we think it is going to work. We will also have an
evaluation period we will do every few months,just to make sure we are on top of everything. I
feel like on our end, we've done as much as we can to get the word out that people can report
violations. Our inspectors, on a very regular basis, including the both of us, go out and speak with
as many neighborhood organizations as we can on a monthly basis. The resources are available. I
feel we've done as much as we can to let people know they can come to us if there are some sorts
of violations inside their home. However, the feedback we continue to get is they feel retaliation
from the landlord. I truly believe that is a major issue. If we were able to depend on people to have
the courage and not be afraid, then yes, I don't think we would be in the situation we are in now.
Honestly, I don't think that is what is happening.
Committeemember Voorde followed up, I confess I've only had feedback from one (1) landlord.
Their feedback wasn't as much objections to this as it was questions to this. It raises questions in
my mind, as well. In general, would you say landlords are supportive of this?
Ms. Skibins replied, I think everyone agrees that everyone wants a healthy and safe situation for
all tenants. What I'm hearing is concern to why responsible landlords have to go through the
process. That is the major feedback. What I say to that is, if they reach out to us,they pass the first
(1St) inspection, they won't see Code again for five (5) years. We can't pick and choose who we
inspect. We have to be fair across the board.
Committeemember Voorde then asked, Is there an estimate as to how many bad properties are out
there out of the 16,000?
Ms. Skibins replied, We don't know and using this, we hope to find out.
Councilmember Regina Williams-Preston stated, That is kind of where I want to begin. What is
the data on this? You said in 2018, you had eight hundred and twenty-five (825) complaints. We
know people don't complain and I believe that may be true. But,that would be like point zero five
percent(.05%)of all the properties. But ok,people don't complain. What percent do we anticipate
having health and safety issues? I'm wondering if there is a more effective way to get at the
problem. Again, everyone agrees we need to have something.As Dr. Fox stated,there are negative
effects to the community from unsafe housing. Everybody gets that.The question is if taking three
(3) years to just do twenty percent (20%) will be worth it. That is a long time for people, who we
know already, are in really bad situations. Because in three(3) years, what is mold going to do? Is
there a way to address the problem that is more targeted without breaking the law? We've had
people come before Council and say they know of three (3) large housing complexes who are
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notorious for having problems. And in just two (2) of those complexes there are three hundred
(300) families that we know are suffering and that are in bad conditions. Is there a way to look at
those large housing complexes across the board and use those are a starting place? Let's see where
we can target our focus and get a high concentration of families taken care of. We already know
they are there. We know people are suffering. We already know of places with these large issues.
Is there a way to address those?Part of what I've heard is the Health Department doesn't shut them
down. They have nowhere to go and to me that is not acceptable. Again, if our concern is health
and safety, we have to find safe and healthy places for people to live. I'm really interested in what
we are doing to really address the problems we already know about.We've already had complaints,
we already know, and we should be able to do it just based on those complaints.
Ms. Fritzberg replied, I can defer to Code for the inspections in areas we have had particular
complaints. I will respond to your questions about the data. We have the data we get from our
partners. And then we know that, in general,health and safety issues are correlated with the age of
housing. One (1) of the reasons why actually prioritizing, say, an apartment building, may not
always be the right approach is that especially as we look at things like lead, that is more likely to
be found in aging single-family homes in our neighborhoods. So, you are right that it is tricky, but
we know that if we're looking at the age of the property and the factors associated with the types
of health and safety issues we see, we are far more likely to see those in single-family rental units.
Those tend to be the majority of our rental units here. I want to flag that this is not something that
replaces the ability to make a complaint. We are not looking at treating every inspection as if it's
a comprehensive audit. What we are saying is, if we know there is a particular issue, we go after
that aggressively,but we don't believe that excludes anyone from needing to meet basic safety and
health standards.
Councilmember Williams-Preston interjected,I want to question one(1)statement you made. You
said it's true and I'm not sure it is true. I would like to clarify. I thought I heard that one (1) of the
parables you used to describe the problems had to deal with the age of the property.
Ms. Fritzberg clarified, I'm saying what we know about housing stock is that housing built before
1978 has a higher likelihood of having lead paint. So, with that factor, we are looking at the age
of the property as a predicter.
Councilmember Williams-Preston followed up, Absolutely, for lead. Not necessarily for some of
these other structural issues and things like that. I just want to clarify that because I think clearly
lead is a problem and we know we have a commitment to address that,but this goes much beyond
lead and I think we need to look at other factors to help guide us to maybe where we should begin.
So, we know lead is a problem and a whole lot of them have lead. I would guess seventy percent
(70%) of housing doesn't have all these other violations.
Ms. Skibins replied, Well, we won't know until we get into these homes.
Councilmember Williams-Preston continued, So, this is what I'm saying in terms of being
effective. As a policy maker, I'm very interested in health and safety. I'm not interested in doing
stuff because it sounds good and looks good and we can check a box and say we tried. I'm
interested in doing something that is really actually going to help people right now that we know
need help. That is where I think we all would agree. I think looking at the different variables to
make decisions as to when, why and where to go in, those variables need to reflect the highest
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concentration and highest probability that there are real and true health and safety violations that
people are suffering, rather than saying we don't really have the data and we won't know until we
go in. To me, that sounds like it's not data-driven, obviously. I think it is kind of like throwing
things to the wind. It might increase cost, time and energy and still not be as effective, do you
know what I'm saying? It won't hit the families we need.Again,I'll repeat,we already know about
some of these large housing complexes. We've had complaints. So,maybe now is not the time but
maybe it is. I want to understand what it is we are doing about that and do those, somehow, fall
under this in a way? So, are there a certain number of complaints you have to receive before you
go in? What's the plan? How does this address those large complexes? How can we get in there?
I thought I heard you say something about that at another meeting. I would like to know more.
Ms.Johns replied,First(1st)of all, I would like to clarify.The eight hundred and twenty-nine(829)
housing cases that were open this year, the majority of those are not going to be complaint based.
Our inspectors drive around the neighborhoods to identify, from the exterior only, issues they see.
That is one(1) of the reasons why we can't extrapolate the information on what is going on inside.
Some of these cases have been open since 1998 and nothing has been done. So, based on the
exterior conditions we see, such as holes, you can assume there are some kind of interior issues
going on but we have not been invited into those properties and that is why we don't know. That
is the reason we can't give good information on that because the majority of them we have are
exterior.
She continued, As for multi-units, if we go out and find one (1) structure or unit is in violation,
once we go out and we see there is an issue on that property, even if they have passed previously
and their certificate is valid, if there is a property that is found to be in violation, that does give us
the authority to go in and reinspect as many of those properties as we want to, based on that
percentage we've established. So, if we do get a call about a multi-unit, they may have had a five
(5) year certificate originally, but we see there is a unit in terrible condition and it has been
neglected, then we would be able to question the other units and we can go in and take a look at
those, too.
Councilmember Williams-Preston followed up, So, to clarify, a complex with one hundred and
fifty(150), and let's not talk about right now,today, if someone calls and there is a complaint,you
go in and there is a real problem, and you see that, what do you do?
Ms. Johns replied, It would be in our best interest to go ahead and do that inspection on that unit
then because then we wouldn't have to come back and do it separately. We can start that process
at that moment.
Councilmember Williams-Preston followed up, So, you do that, and then if you've heard people
say there are others in that complex who have that same problem,what do you do?
Ms. Johns replied, Well,one (1)of our goals was to take all this information to the owners as well
as the tenants. Hopefully, those other tenants will contact us. We want to make sure they know
they won't get in trouble for calling us. If they do, or if we have someone call in a complaint, as
long as it is the owner or the tenant, we will be able to go into those properties and take a look at
it to do the report.
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Ms. Fritzberg stated, Correct me if I'm wrong, Councilmember, but part of what you're trying to
clarify is what the current state is. What are we doing right now? Right now, as I understand it,
each occupant, each unit would have to call. We don't have the authority to go into any interior
space unless we receive a call from the tenant from that space.
Councilmember Williams-Preston clarified, So, under this, you would then now have the ability
to, if one(1)person called and suspected there were others, you could then go into others.
Ms. Johns confirmed,Yes.
Councilmember Williams-Preston followed up, So, if we pass this on Monday, how soon could
we be putting a focus on some of these large housing units? Or would we even? They might not
be in the Census Tract. Let's say you get a complaint, how soon can you get in there and start
inspecting all of those rooms?
Ms. Johns replied, We are thinking March is when we will be able to start doing inspections.
Ms. Fritzberg stated, And if we are talking about prioritization, right now there is a geographic
prioritization.It sounds like one(1)idea you have is to look at the size of a property and the number
of units to prioritize, and we are certainly open to having that dialogue about what might be most
appropriate.
Councilmember Tim Scott arrived at the meeting at 6:24 p.m.
Committeemember Voorde stated, Let's say whatever triggered the inspection, the inspection is
done, you found something in non-compliance, you notify the landlord that something has to be
remedied. How long do they have to do it?
Ms. Johns replied, There is an inspection that has to occur every sixty (60) days but if it is
something really minor that they can get done quickly, we would come back sooner.
Committeemember Voorde followed up, And if it's not done, the fines kick in?
Ms. Johns replied, Yes. If we keep going out, they get charged for the re-inspections after the first
(1st).
Committeemember Voorde stated, I have to confess, in this term on the City Council, I've only
been to one(1) Code Enforcement hearing and that was for,unfortunately,the Washington/Colfax
Apartments. By all descriptions, they were non-habitable. But I went to the hearing, which was in
the spring, but the official ruling was they had until November to fix that up. So, they had six (6)
months to do this. Sometimes now when something has to be fixed, the non-good citizen landlord
will say, Well, I'm working on it. Or they say they've done half of it so they get more time. It just
seems this is a cumbersome inspection program to get into compliance while in the meantime, if
there is a disincentive and it becomes so cumbersome,well,let me back up. First(1St)of all, I agree
everybody ought to have clean and affordable housing. But, you have to think of the landlord,too,
sometimes. Sometimes it is legitimate. You can easily say, well, if you can't do it, you shouldn't
be in the business. Well, it's not that simple I don't think. As I'm sitting here I'm thinking, God,
how are we going to do this? Is it going to work?
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Councilmember Williams-Preston stated, One (1) of the things I like about this is we are offering
assistance and help, too. So, the grants and referrals for the federal dollars are great. And this is
where I feel like it might be a marketing issue, I don't know, and I've said this before, I'm in the
business of behavior modification as a teacher of students and teachers with emotional disabilities,
but anyway, that's another thing. But all of the research of behavior modification actually focuses
on the change of behavior which is what I think we are really here about, right? We want people
who are renting out sub-standard properties, we want that to change. Behavior really changes, not
with severe penalties or high fines, but with the likelihood that you will be caught, quite frankly.
That is basic research. What I'm concerned about are these super high fines and you want to fine
them to death and then they are going to do it. The research does support that. Also, the broad
brush we paint ends up taking those smaller landlords and putting them in situations where they
might end up being pushed out of the market.That is the whole thing about smaller landlords being
able to adjust for people who have the lowest income and are of highest need. That market is really
important in our community with fifty-four percent (54%) of people living paycheck to paycheck.
So, is there a way we can do more of making sure people understand? Even with the complaint-
based stuff, as we are educating tenants about their rights to complain, what can they bring to the
table? I don't know how many really need these resources and I don't know how much money
there is to really assist and help,maybe you could share that,but do you feel there is a significant
amount of assistance that will even matter so we won't run through that and be like,sorry,we can't
help you anymore? You know what I'm saying? Those are a lot of questions. But I would like to
see us, somehow, and I mentioned at the last meeting about working with the media,turn this into
something positive. Right now, it is just so much about the bad landlords and bad properties. The
vast number of landlords are not bad. How can we focus more on the resources to help? Any
thoughts on that?
Ms. Skibins replied, We definitely feel the way it's promoted is important. We are going to do our
very best to promote it. We are very well aware that there are so many responsible landlords out
there and those are not, at all, the people we want to penalize. We are hoping by the postcard, first
(1st)letter and second(2nd)letter,all of which are worded very nicely by the way,along with social
media and the media outlets, we will get that information out along with the resources for both
tenants and landlords.
Councilmember Williams-Preston stated, Great, and so that is where my other question from
before would come in. I also don't want to tie all those inspectors up walking through properties
that are already great. So, I still want to figure out how to make sure we are really using our time
and money effectively by targeting areas we already know there are big problems.
Ms. Johns replied, I'm hoping by sending the word out there will be phone calls. I'm hoping they
will call us and keep us busy.
Councilmember Williams-Preston stated, Good, and I'm looking forward to organizing with
people, too, and helping. Again, I'm always talking about reaching to the community and the
neighborhood associations and things to help identify those.
Ms. Skibins stated, That is a key element.
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Committee Chair Broden stated, I'm going to roll through some questions to your presentation. I
do want to acknowledge that, as Committee Chair, I will get this to the rest of the Committee but
late incoming was a letter from Mr. Myron Larimer who is the Chief Executive Officer of the
Greater South Bend Mishawaka Association of Realtors. That has been received by me and I also
know it has been copied to Suzanna Fritzberg,Jamie Morgan and a couple others. Thank you very
much and I appreciate that input. Contained in that,for the benefit of Council Members,were some
key concerns listed as well as some recommendations as we evaluate this. You'll have that
available asap this evening.
She went on, Just a couple of things, and these are in no particular order, it is just based on the
flow of your presentation. You had mentioned eight (8) health and safety criteria, I'm assuming
your presentation enumerated those, I believe?
Councilmember Williams-Preston interjected, Can you say them real quickly again?
Ms. Fritzberg stated, It's in the PowerPoint.
Committee Chair Broden continued, I just wanted to make sure that is common knowledge with
everybody here this evening. You mentioned healthcare costs, for every dollar spent there is a
return on investment, and you characterized that as healthcare savings. I can't let that go without
saying that is only one (1) piece and is only the tip of the iceberg from where I stand. With my
professional background and now over twenty (20) years of cycling through the lead stuff since
the Harvard report. You know, educational attainment,job, life-long earnings, this is just the tip
of the iceberg of the issue. I can't let that stand out there without adding that other piece. The
enforcement plus help is great. Congratulations on the lead grant, I don't know if anyone has said
that yet from Council or at least on behalf of this Committee, but those are huge to actually get
those for the benefit of our community. Congratulations to the grant writers and all the people who
prepared that, staff-wise. I know that is not an easy task and it requires collaboration, so, kudos to
you all. I know many of us were aware of it and we saw it tucked in the budget but the home repair
and the small-scale grants, all of those are great. I do think for the communication of those, and I
know there has been an uptick on it, but it would be good to locate that on our website. In real
proactive ways, I think regardless of what happens with or without this program, we have to nail
that. We have to nail that hard. We have to promote it.
She went on, In terms of the Census Tract, your roll-out, you indicated that you have a priority
list. You're going to go from Census Tract Six (6), blah, blah, blah. I mean, I think in fair
disclosure, I think as a community, we need to let that list be known. That is just my opinion. I
don't think we should hide the ball on this. If we've got the data that supports it, then we should
share that data, ok? I also understand there might be some concerns about, and this is from
meetings I had sat in with many of the individuals here tonight, an inequitable treatment giving
one (1) landlord a leg-up and another not so much,right? I do think, and I'll venture here because
we have to be smart about it,but the legality of that and the ability to do that to actually do targeted
programs and actually take programs to where they are most needed. My understanding is we
reserve that right and even if we don't have that right outright, it is smart, given our resources as a
City, ok? So, I do think that list would be helpful, at least as a Council Member, I would be
interested in that. And, as a business person. I have rentals and I would like to know that as well,
right? When is it going to hit? When can I prepare for it?
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She continued, I do think, too, additionally, we don't want any surprises on that actual check list.
Also, I heard twenty percent(20%)per year, for each of the three(3) years. But you're saying the
outcome is twenty percent (20%). So, are we going to have twenty percent (20%) after year three
(3) or are we going to have sixty percent(60%)? I need some clarification.
Ms. Skibins replied, Twenty percent(20%). My apologies for the confusion.
Committee Chair Broden stated, Alright. And I heard you tick off the waivers, federal or state
oversight properties, group homes and there were some exclusionary folks in there, I appreciate
some of that clarification. Then I heard an adjustment from the earlier drafts for the real estate
inspection as a possibility with a three(3) year look back, correct?
Ms. Skibins confirmed, Yes.
Committee Chair Broden followed up, So there are some modifications there but I guess I would
also share some of the concerns with the other Council Members in terms of roll out and actually
be able to do what we say we are going to do. And then,just quickly, the fee is at the one hundred
dollars ($100) for the third (3rd) time, I think it is important as we look at fees and, or, fines that
come across our desk as a Council or individually, one (1) of the things I think is responsible to
ask is what the justification is of that fee being set at one hundred dollars ($100) versus ninety
($90) or three hundred dollars ($300), ok? Why have we chosen that? I'm assuming you've done
the math, with the twenty (20) minutes, you know your staff level and ancillary benefits that we
give the City of South Bend, I want to make sure that number is right in terms of what it is set at.
The background on that is important to us from a fiscally responsible standpoint. It also gives us
the ability as Council,if we are going to go with this and we're saying this isn't adding up in terms
of impact, then that gives us some framework for us to build capacity in the next year's budget. I
do think it's important for all of us, and I meant to go back and look at this, but the program
evaluation piece you mentioned,what is that process?Who is at the table? I'm hoping it's as broad-
based as what I've seen in the collaborative efforts thus far. I think it would be significant if we
actually identify the timeframe when we will go back and evaluate. If this does pass and it is
implemented, what is our reevaluation criteria? What, specifically, would be the timing on that?
We don't just reevaluate to sit there and let the thing go the same way. So, I think I want to make
sure, incorporated in this, and I apologize I didn't do my homework with regard to this, but that
reevaluation piece, from my standpoint, I want to make sure it's actually embedded in our
ordinance.
Ms. Skibins replied, It is.
Committee Chair Broden continued, Ok, good. I'm glad it is embedded because I've seen a lot of
things embedded in our ordinance that we lose track of. I do want to just affirm, in my mind,
because I don't think I caught it here yet tonight,but as an announcement, what is the roll out date
intended for this?Have there been any adjustments in terms of when this would go into effect once
the Council passes it and the Mayor signs it?
Ms. Skibins replied, March 1St,2019 is the date we were shooting for.We would take calls as soon
as possible but that is when we would actually start the inspections.
Ms. Johns stated,The first(lst)Monday of March, I think that maybe the third(3rd)or fourth(4th).
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Committee Chair Broden followed up, Ok, great. I consider these open questions and stuff that can
work, additional information. I do think it is important that,before we go to the public,we need to
encourage the dialogue. I indicated we had received letters and I will transfer those to other
members of the Committee.
Jennifer Coffman, Chief Deputy City Clerk with offices located on the 4th floor of the County-City
Building, stated, Any other supporting material for this legislation can be submitted to
ccouncil@southbendin.gov
Committee Chair Broden stated, Also,jbroden@southbendin.gov is mine and I would chase that
in as Committee Chair.
Committee Chair Broden then opened the floor to members of the public wishing to speak in favor
of or in opposition to the legislation.
Myron Larimer, 402 East South Street, stated, I'm with Greater South Bend Mishawaka
Association of Realtors. I appreciate the opportunity to be here. Thank you for all your time and
efforts. I know it is a thankless task working in government as elected representatives. So, thank
you for your commitment. Briefly, we've been involved in some of the conversations. We believe
this is well-intended. We recognize there are a lot of problems with a lot of rental properties in
South Bend. But, logistically, and I think it's been mentioned but we think this is overwhelming.
We think the need is really to focus on the problem properties immediately and then if that doesn't
work, then we can retool and look at the bigger picture. But we don't want the City to waste the
time and resources going after people or addressing people and properties that are already in
compliance and doing a good job. It is too important to address the problem properties. Secondly,
as it has been mentioned,we have concerns about Census Tracts and zip codes in terms of redlining
or targeting areas. The legal ramification could jeopardize the City in terms of it being embroiled
in a lot of legal discourse. Also, the sustainability of the program, where are the funds going to
come from on a regular basis to make this program succeed? Our concern is that at some point, it
will be looked at as the fines and fees associate with the program, which brings into question
whether or not there will be some subjective enforcement. A big problem is right now, the City
can't really effectively identify the problem landlords. I know the landlord registry was intended
to identify all landlords and register everybody with properties. That didn't solve the problem then
and I don't think it is going to solve it now. Those that are bad players aren't going to cooperate.
Our concerns on this issue include the high potential that the landlords that aren't cooperating and
playing nice now won't play nice and cooperate later. There are going to need to be a lot of time,
effort and resources spent simply trying to enforce the ordinance on people again that are already
in compliance, already doing their job and already cooperating. That seems to be without a
purpose. We encourage you to focus on the problem properties and landlords first (1St). Utilize
Code Enforcement tools in place. Provide a voluntary program where good landlords that have
done x, y and z are on a list and promote those to renters. We really, again, would like to see this
problem go away. As realtors, we are concerned about property values.
Amanda Govaert-Konrath, 1015 College Street, stated, I'm speaking to you as a renter. I live on
the west side of South Bend. When we moved into our home about two (2) years ago, the home
had been vacant for four(4) years. The landowner was very upfront with that. It didn't have heat.
NIPSCO had disconnected the gas meter, we didn't have water and none of that was set up. We
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had it all set up within a week though and we were fine with it. We knew it going in, it's just my
husband and I,and we were good.The thing that concerns me about this is, I think it's a great start,
but with re-inspection to take place in sixty (60) days, the landlord will be able to start eviction
proceedings. What is there in place to stop a tenant from losing their home? We know evictions
are high in South Bend. I think it's eighteenth(18th)in the country. Three(3) families per day lose
their home here in South Bend. I'm not really seeing anything in this ordinance that puts any
protections into place. That up to eight hundred dollars ($800) of assistance for relocation is
nothing to a poor family. That is basically spitting on them.When there is a poor family living pay
check to three (3) days before paycheck, that not going to move them. It's barely going to cover
the U-Haul and moving expenses. Most poor families at least have one (1) eviction already on
their record. So now, you have a family in crisis, students that can't go to their school, parents
frantically rearranging their work schedule, hope they don't get points or lose their job in the
meantime. I think this is a great step,but South Bend can do more for tenants. We are forty percent
(40%) of the population, we deserve to be treated with the same respect that property owners
receive.
Pete Taddeo, 2537 Grape Road, stated, I'm president of Access Properties and we have a large
number of rentals, especially in South Bend. We have close to 1,000 rentals and I've been at this
for fifty-five(55)years as of last month. I'm in favor of this program. I think there are some needed
modifications in it and I've already spoken to Jamie Morgan and others about those modifications.
I think there needs to be an appeal process built into this ordinance where if there is a disagreement
between an inspector and landlord,it can be brought up in an independent-based appeal process to
work it out in a very common sensical way. A lot of this depends on the International Property
Maintenance Code. I'd venture to say that close to one hundred percent (100%) of the people in
this room, and landlords,have no idea what that means. Actually, there are a lot of common-sense
requirements in that code. I think outside of this ordinance, you need to have an educational
program available to landlords. Also, I have two (2) fast food restaurants. I'm saying this for a
reason. You open up a fast food restaurant, the Health Department has to come in and approve it
for occupancy. Then they come back on a random basis to make sure you follow it. If you get a
complaint, you'll be shut down until you open. Well, if you have a couple of minor problems,
you're not shut down, but you have a certain amount of time to correct that. Also, every store has
to have their managers that go through an educational program. It is one hundred fifty dollars
($150)per person and I think landlords should have the same opportunity. They should go through
a program to learn about this International Property Maintenance Code, which this whole thing
and program is based on. Secondly, I think we have some smart people and we need to think in
smart ways. We could do far more inspections than what is proposed if we can do the vacant
homes.You could probably do ten(10)a day,vacant homes.We do it for our company and it takes
about forty-five (45) seconds to go through a home to decide if it is livable, ok? Thirdly, what
would help this ordinance a lot is something called receivership. If a landlord is uncooperative,
you put it in receivership, an independent person comes in, takes charge of the property, cleans it
up and that would help this a lot.
Andre Stoner, 628 Cushing Street, stated, I am a homeowner, a neighbor, a landlord and through
my work with the Near Northwest Neighborhood, I also connect with and relate to a lot of tenants.
On all of those counts, I am supportive of this initiative. I would like to commend the staff of the
City. I think they really did their homework. It's complicated.They've really done a lot of research
and, I think,have been engaged with a lot of people and really prepared a good piece of work here.
One (1) question I have has to do with the experience of tenants who are in really substandard
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housing. I want to underscore there are many good landlords. It was wonderful to hear those
accounts but there are some who are really preying on my neighbors. Why does that persist? I just
learned a couple months ago, a block from my house there is a family that moved in in June, and
they found out in September that they don't have heat. They have three(3) children and they were
dealing with space heaters. I haven't been able to connect with them and I don't know what their
situation is now but that is a case with a bad landlord. I wouldn't have known that walking down
that street many times. They didn't call. The broader context I wonder is what is the state of the
law that makes tenants fearful about lodging complaints against bad landlords? I think that's an
issue with Indiana State Law. That is part of this context and that is why local ordinances like this
are really critical to hold those landlords accountable and to be able to provide safe and decent
housing for our neighbors. Again, as a homeowner who has neighbors living in substandard
housing, as a landlord who manages a home and as someone who works in a neighborhood, I'm
really supportive of this initiative. Thank you for considering it.
Alicia Ortiz, 6212 US Highway 247, stated, I have rental properties in South Bend. I am also the
chairman for the Legislative Committee for the Indiana State Real Estate Investors. In one (1) of
the slides of the presentation it said eighty-one percent(81%) of the housing stock in South Bend
has lead conditions. One(1)of the main focuses of this inspection is on lead.Why are only children
in rentals being worried about?All children should be important in owner-occupied and in rentals.
If you're going to inspect rentals for lead, owner-occupied should be inspected also because those
children are just as important as children in rentals. Also mentioned was Bloomington and the
West Lafayette ordinance, that was grandfathered into the State Law. There is a State Law that
covers the majority of the things in this ordinance and I don't think that was followed. The fees
that are charged, by law, could be passed onto tenants, so you're raising rents. Every time you
charge a fee, you're raising rents because we can pass that on. It was mentioned that the eight
hundred dollars ($800) was going to help move the tenant. The fees that are collected can only be
used to run the program. There can be no charge for inspections or certificates. The financial
impact of this program is going to be a lower tax base. Landlords from this City are already calling
Indianapolis saying they are getting rid of their rental properties. I was down there all day today
in Committee meetings. My last question is, they are expected to do twenty percent(20%), which
is 3,200 houses within three (3) years. What if they have 4,000 rentals that are in this four (4)
month evaluation period? How will they handle that?
Steve Weldy, 54500 Ironwood Drive, stated, I'm a local realtor and have been for nearly thirty
(30) years. I have a lot of concerns about the program but am very sympathetic to the desired
effects of the program to protect tenants and their health. I think something needs to be done. I'm
not sure this program is the appropriate way to do it. It is sort of the typical shotgun approach,
hitting everybody, good or bad, to try and solve a limited problem. I think there has got to be a
much more effective and targeted way to hit the problem landlords.The unanticipated consequence
of this well-intentioned program is, one(1)more program that adds a burden and regulation on the
landlord. These are potential fines that could be assessed by simply not receiving a notice and not
scheduling an appointment. Landlords eventually unload their properties. There is a supply and
demand and when you run off good landlords, you're left with a higher percentage of bad
landlords. That has already happened. A number of investors have decided not to buy rental
properties in the City limits and I think you're already seeing the effect of that. This program only
will worsen that,in my opinion. It's been compared to the need to have restaurant inspections,but
I don't think that is a valid comparison because when I go to a restaurant, I can't see the kitchen.
I can't go back there. The inspectors can go back there, though. As a tenant, they get to see every
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place in the place they are renting. It's not like they are sitting in a restaurant and I wonder what's
going on in the kitchen. They can see the whole house and if they have a problem with it,they can
see it. I have concerns about the International Property Maintenance Code that I don't think very
many people are familiar with. I feel like we have good City, County and State Building and Code
requirements. If you read through it all, it makes us subject not only to the IPMC but the
International Fire Code, International Building Code, and I don't think anyone has read all that.
Regarding the evicted tenants, I don't think offering them eight hundred dollars ($800) is helpful.
If you don't have a better place to go and you're replacing them, don't kick them out.
Allen Grace, 332 N. Ironwood Drive, stated,Thank you very much for having this meeting and an
opportunity to present information. I'm a property owner in South Bend and a realtor by
profession. As a realtor, I do not do property management for rental properties but because of my
business, I have a little knowledge of the situation regarding properties and property ownership
issues. As a realtor, I have significant interest in property rights issues for all property owners
regardless of it being owner-occupied or a landlord. I want to make it clear that I'm not speaking
on behalf of the Realtors Association or for realtors, in general. I am speaking as a citizen and
property owner in South Bend. Over the past few weeks as the ordinance was publicly announced,
I have attended most, if not all, of the public meetings about this process and other meetings
intended to address some of the issues of affordable rental housing in South Bend. I am saddened,
surprised and disappointed by the notification of some of the reported abusive operations of some
landlords and hope they are the extreme. No, they are not the norm. I hope their reported actions
are somewhat mischaracterized in detail, but if not, I agree in principal that some action needs to
be taken. While I understand the intent of this proposal and agree with it, I believe the current
proposal is full of problems in interpretation and implementation. This punishes all of the people
who are spending their money to supply housing in this City in an effort to eliminate the minority
of people that are causing the problems expressed. I don't know what the statistics are, but I
question if this is another eighty-twenty (80-20) rule or even a ninety-ten (90-10) rule where ten
percent (10%) are causing ninety percent (90%) of the problems. The solution proposed does
address those ten percent(10%)but hitting all one hundred percent(100%)is an unfair distribution
of cost and results. There may be satisfactory possibilities or solutions without affecting the
property rights of citizens. By penalizing them for a small portion of abuse owners that are not
there and not a part of it, I am thus concerned that the property as written is not what is intended.
There are a number of things I would like to address in detail but there is one(1)thing we need to
pay attention to. While under the best intentions, this proposal is allowing a single government
department and, in some cases, possibly, the very same individual to define the inspection
requirements, inspect for compliance to the requirements, interpret the results of the inspection
and, as a result, impose penalties with the penalties going to a dedicated fund for the department.
In effect, self-funding the department, inspectors and process for perpetuation and growth. I
believe that is a bad concept and I have a lot of details that go into the specifics of the Code which
I would be glad to address at another time.
Judy Fox, 725 Howard Street, stated,I wanted to address some of the questions that came up about
what the current state of the law is. We do have some of the weakest landlord tenant laws in the
country. That is well established and well known. The law currently requires properties to meet
housing and building codes but there is absolutely no enforcement mechanism. If your property
doesn't meet it, there's really no effective way to do anything about it. You can possibly go into
court to get a protective order but that takes many trips. I've had clients lose their jobs trying to do
this. It is not an easy process. I'm a lawyer and it's not an easy process for me so you can imagine
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what it is like for everybody else. Tenants, unfortunately, don't have lobbyists to go to
Indianapolis. There are three (3) bills right now before the Indiana Legislature and it is only the
lobbyists for the landlord associations that are ever there, and they continually defeat. One (1) of
the very basic principles we were asking for is that people could not rent properties under a vacate
and seal order. I have two (2) clients who were rented properties this year under a vacate and seal
order. The landlord's association has gone down and opposed that measure. So, that is a problem.
I would also like to clarify the issue of the fees. I've looked at the statute and we've had this
conversation before. The statute does not allow the landlords to pass on the fines. They can pass
on the fee for the program, but they can't legally pass on the fines. Even the fee, it depends on
what your lease is. I've had clients who have called into Code Enforcement and I had my student
call in this week with the same issue,many of my clients are on month-to-month oral leases. They
don't have a written lease. When they call in to make a complaint, they are asked if they have a
lease,they say no and then Code Enforcement says they can't come out. That is a problem in how
the system is working and that is a problem with our complaint-based system. They do have a
lease,really,but it's not a written lease so they say they don't have one(1) and Code says they can
come into the property. The final thing I would like to say, I do think the restaurant analogy is true.
Yes, you can walk through an apartment, but you can't look into the plumbing, heating and
electrical systems.
Committee Chair Broden stated, Process from here, you can still contact your Council Members
with phone calls, conversations, emails and by way of the Clerk's Office. She then turned the floor
back to the Committee for further comment or main motion.
Committeemember White asked, Based on the meeting we just had and hearing the comments and
questions, when will this meeting's contents be available for review?
Committee Chair Broden replied, The audio is available tomorrow. The PowerPoint is available
already. Earlier in the meeting, we will know tomorrow by 4:00 p.m. by either the Clerk or
Council's website what time this will be set for Monday's Committee.Keep your eyes on both and
we'll make a commitment to reach out to partners and people you've been talking to as an
Administration. If you don't think you've been included in the conversations, please submit your
name and we can do a group list and announce that. Easiest and best going forward, we'll know
what time this is set for the Health and Public Safety Committee on Monday. My inclination is to
hear this in Committee, I know there are three(3)here tonight but we should catch Councilmember
Davis up to speed. I will do my duty to share the letter we received with everybody as soon as I
get back to my office.
Councilmember Tim Scott stated, I was late, and I just want to make two (2) comments. One (1),
we've looked at different ways on how to respond to people who aren't doing a good job in terms
of landlords. We did have an ordinance on the books that deals with chronic nuisances. That deals
with bad landlords dealing with code violations and police calls. That was stricken downstate by
everybody that had any type of problem with that. There are different politics up here than down
there but the one(1)thing with this is basically a seal of approval once this is done. I propose that
those who are on this seal of approval, that list should be made public. The thing about chronic
nuisance is, there were more landlords wanting not to go on the list and work through solutions
than those who ignored it. Same thing here. I think it would be great for tenants to see that there
are people who have a seal of approval from the City and if I want to rent a property, these are the
people I'll rent a property from. I think the good landlords,just like us getting a driver's license,
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they won't have issues and they will get it and it is pretty simple. We are looking at ways of doing
this down the road and those doing the right job have an easier time than those not doing the right
job. The other thing is there are times,and I'm a big critic of Code at times,but we give everybody
the second(2nd) chance. We are going to be at a Code hearing tomorrow for someone that has two
(2)years to clean up their act and it still isn't done. One(1)other thing for landlords to think about
is some of this stuff like lead with the house, that is a federal law. That is on the books and people
should be notified if they are moving into a house with lead. How many are doing that? That is a
question you need to ponder.This is bringing some of this to the forefront. We are looking at long-
term ways of taking care of that and this is one (1) of the steps. I appreciate all the feedback and
we take all of that into consideration.
Committee Chair Broden stated, I have a few announcements from Health and Public Safety. The
Council passed a Hate Crime and Biased Crime Resolution on behalf of the City of South Bend.
There is information about the statewide campaign on that. In addition to the information here,
there will be a folder on the Clerk/Council website that contains the relevant information such as
letters of support and fact sheets.The third(3`d)piece is we are looking for involvement for a local
event to get general awareness out about that issue. We are looking at that for no other date than
Valentine's Day, so, February 14th. There will be more information out about that. Up and coming
items, I know we are looking at a rewrite of the South Bend Animal Care and Control Ordinance,
if staff could share a little bit about that before you leave, I would appreciate that.
Ms. Skibins stated, Currently, we are going through the proposed ordinance with the Animal Care
and Control Commission. So,that is where we are at right now.
Committee Chair Broden followed up,And people can connect up to that most easily by attending
those monthly meetings.
Ms. Skibins stated, The next one is at 6:30 p.m. tomorrow on the thirteenth (13th) floor of the
County-City Building.
Committee Chair Broden followed up, I would also like to cue to another ongoing effort.
Councilmember White, could you do a little bit of announcement on Not In Our Community?
Councilmember White stated, About two (2) years ago, community leaders along with our Mayor
in January 2017 experienced three (3) young males while they were coming out of a program.
They were on the ground and foaming at the mouth. They had to call emergency assistance for
these young individuals. It was in regard to what our community had and continues to experience
which is the sale of synthetic drugs. For two (2) years, a group of community leaders have come
together under Not In Our Community. We have addressed this issue on different levels in terms
of working with our religious communities,our schools,and throughout the community to educate
and share with the community that we will not tolerate the sales of these drugs in our community.
We've been working with a number of the local businesses as well as continuing to work with our
State representatives. There is information on our website along with three (3) or four (4) videos
that really illustrate the impact of synthetic drugs on our youth. But also, we have received
statistical data from Beacon Health Systems that shows the number of different individuals who
have been in the emergency room, all ages and race, due to taking synthetic drugs. Our position
paper is on our website along with other supporting data.
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Councilmember Williams-Preston stated, So, in keeping with this concept of how we can focus on
positive things and look at ways this ordinance could benefit our community in other ways, and
then also the question of capacity, if we're doing all these inspections, we said we have no idea
and we don't have the data of how many of these properties might need this inspection,but looking
at this, I think especially the lower tiers of income, we are going to have a lot of repairs needed,
ok? You're talking about flooring, walls, and ok, we need that. But we are also going to have, I
think,is the need to do a lot of repairs. Where are those contractors?From what I understand,there
are lot of people already getting people that can build homes and do work and things like that. So,
how can we turn that into a positive? What are we already doing with training people? Let's think
about that in terms of minority businesses and things like that. How can we prepare for the work
load we are going to have if we do this and then kind of make these opportunities for work,training
and all that, available to people who live in these neighborhoods? I know we are doing tenant
education and stuff like that, but that needs to happen. Also, the point was made about the eight
hundred dollars ($800) not being enough. That is another thing and we've had that conversation.
If we are going to be putting people out on the street,there are going to be problems, do you know
what I'm saying?We don't have the capacity to stop landlords from not signing the contract again.
Maybe they don't evict the resident but if they are on month to month, maybe they don't sign the
contract again. Where are these people going to go? Eight hundred dollars ($800) is not going to
get it.How can we look at this issue of rental insurance? I mentioned that before and, I don't know,
we haven't reconnected about that,but I don't know if there is a way to build that in because what
I've learned in the few conversations I've had is rental insurance, and though we are talking about
people who maybe can't afford it, is generally less than twenty dollars ($20) a month and it is
beneficial for the landlord and the tenant. That might be a way to actually begin to solve some of
those problems. The real issues that come across, how do you deal with it? Maybe that is part of
incentivizing and creating those partnerships. So,if we are saying landlords need to fix something,
and we have support and resources to help. But also, tenants, wherever you go, you're going to
need protection. So, even more than incentivizing landlords, we need to in some way incentivize
tenants and say we will help match landlords. Landlords are going to prefer tenants who make this
smaller investment. Maybe there is a way the City can work with insurance agents to even reduce
some of these costs if we have this large influx of people who are going to start doing this, do you
see what I'm saying? So, how can we do this? What I'm saying is I want to support this and I'm
sponsoring this because I want to tweak it, so it works for everybody, ok? I want to have those
conversations if possible by Monday to see what you've already looked into.
Committee Chair Broden stated, There will be two (2)joint Health and Public Safety and Utilities
Committee meetings. One (1) is on Monday, February 18th from 5:30 p.m. to 7:30 p.m. That will
basically be a briefing on Climate Change and understanding Climate Change in South Bend.
Then, Wednesday, February 27th from 5:30 p.m. to 7:30 p.m. will be a follow-up meeting to that,
basically looking at local solutions and the potential of an ordinance that would help establish
some goals across the community, relative to that topic. So, those notices are here. If you aren't
already part of the Health and Public Safety distribution list, leave your information with me and
I will be sure to add you to that. It is a good way to keep in touch on these issues tonight and things
that are upcoming. I would like to thank you all for attending. I would like to thank Jennifer
Coffman. She does an outstanding job. She is here on overtime and thank you for that and your
very capable services linking everybody and resourcing us as a Council and taking input from the
public and sharing that. I also want to thank our attorney, Bob Palmer, for his support and
attendance tonight. It is really important to us when we are looking at new legislation and
ordinances, it is law,right? So, to have his eyes on everything is, you know, a nice support to us.
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She went on, My last piece of information is to thank the City staff members here tonight. You're
on overtime. I don't care if you're salaried or not, you're on overtime. You're always on overtime
and we all need to acknowledge that across our Committee. We can't thank you enough. Thank
you for your work on this. Thank you for your presentation tonight and attendance tonight. Also,
I would be remiss if I didn't commend you and if you could convey this to the other partners within
the Administration and partners from the community that we leaned on, in order to serve our
community and our fellow citizens during the polar vortex.Many of our citizens were in vulnerable
situations and the responsiveness that I saw, even relative to last year's event, I think we did an
outstanding job. We collaborated with resource partners and that's the way to do it. I'm grateful
for that and I wanted to give a shout out for that.
With no further business, Committee Chair Broden adjourned the Health and Public Safety
Committee meeting at 7:27 p.m.
Respectfully Submitted,
F
Jo M. Broden, Committee Chair
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