Laserfiche WebLink
REGULAR MEETING May 9, 2016 <br />help out his residents not every landlord will do so. It will take almost four (4) hours for him to <br />register all of his properties. This would be a much better bill if the extra information like the <br />IRS Responsible Party information was not required to register. The bill also asks for <br />outstanding citations but Code Enforcement should already have that information. Code <br />Enforcement should be not be in charge of monitoring the success of the program because that is <br />a conflict of interest and the measure of success is also wrong as well. It should be measured on <br />the values of real estate. <br />Steve Weaver, 3321 Mishawaka Avenue, disclosed he is a landlord in South Bend and spoke <br />against the bill. There is a disconnect between what this bill is supposedly attempting to do with <br />the database and the problem you are trying to solve. As a landlord, Mr. Weaver feels he is being <br />treated the same as bad landlords. His name and address are easily able to find by any <br />government source. He only has two (2) remedies when a tenant is causing a problem. He can <br />either ask the tenant to fix the Code violation or sue for eviction and those are the only two (2) <br />remedies landlords have. If tenants pay their rent it is very hard to get them evicted and Code <br />violations will probably be enough to convince the court to evict that family. The tenant is <br />protected to the landlord. The landlord has to give notice of twenty -four (24) hours to inspect the <br />property. If neighbors call him about a problem on a property he directs them to Code <br />Enforcement or the Police Department. This bill will not solve those problems the presenters <br />spoke about. This bill puts landlords in a spot where they cannot do anything to remedy the <br />problems. This registry is not going to solve the problems discussed today. <br />Bob Coffee, 10586 Jefferson Rd. Osceola, spoke on behalf of the Greater South Bend - <br />Mishawaka Association of Realtors. They have tried to work with Councilmember Scott to help <br />craft a bill that is acceptable to all because they are not against cleaning up the neighborhoods or <br />going after the nuisance properties. As was mentioned briefly before creating a database will not <br />solve a problem. The problem is you have these people that you cannot find they are certainly <br />not going to come out of the shadows to sign up for this registry and you are still not going to be <br />able to find those people. This ordinance will not accomplish its goals. On behalf of the Real <br />Estate Association, Mr. Coffee asked the Council to table the bill to bring more voices to the <br />table and create a better law. <br />Dan Witcamp, P.O. Box 2611 South Bend, owns and manages properties in South Bend. He <br />asked that all the other businesses, not just landlords, have to register not just the rental property <br />owners. Mr. Witcamp expressed doubt that this information will be vetted properly because if <br />you are going to have a database and vet it you need information to vet it against. Also, the <br />vacated properties that are owned by a bank or the City are not addressed in this bill. There is <br />also nothing in this bill to limit the registration fees or penalties from going up every year. <br />Steve Eslinger, a practicing attorney and landlord in South Bend, spoke against the bill especially <br />the excessive fines. In 1998 the U.S. Supreme Court ruled that excessive fines are a violation of <br />the 8th Amendment to the Constitution and in 2002 Indiana courts ruled that the Indiana <br />Constitution also deems excessive fines unconstitutional. The courts analyzed these cases based <br />not on what a landlord gets in rent a month but rather assess the excessive nature of the fine <br />between the cost of compliance and the cost of the fine. The cost of compliance for this bill is $5 <br />which is set by the Indiana Code and that ties your hands to how much the fine can be. A sixty <br />(60) times the amount of the registration fee for a fine will not pass muster in any court. This will <br />come up when Code Enforcement charges these fines and then two (2) years down the road you <br />are going to have a class action lawsuit on behalf of the people who pay those fines and those <br />people will demand all that money back plus their attorney fees for prosecuting that case. Mr. <br />Eslinger asked the Council to revisit these fines and bring the bill back then and all the cities that <br />passed landlord registrations with fines comparable to South Bend's were enacted before the <br />2014 state law was passed. The rules regarding this issue have changed. <br />Penny Hughes, a landlord for forty -two years and a realtor for thirty -nine years in this <br />community, thanked the Council for their services because it is a thankless job. Ms. Hughes also <br />thanked Code Enforcement for the hard work they do in contacting them about their tenants and <br />keeping the neighborhoods nice. People deserve decent housing and they deserve to live in nice <br />neighborhoods. The good landlords are the ones who rehab the housing after tenants trash the <br />house. We are not a bunch of fat -cats getting rich off of these properties. Part of the problem is <br />14 <br />