On September 2nd I went to the Triad Apartment Association office to get an update on the City of Greensboro's erroneous and misguided use of taxpayer dollars in an attempt at improving housing stock, also known as the Rental Unit Certificate of Occupancy program (RUCO). Lisa Dellinger with the Koury Corporation and Marlene Sanford with TREBIC could out talk me on RUCO any day of the week (and twice on Sunday). So why, do you ask, am I the one writing the blog? Well, it’s because I'm the one with the password to the admin site. So there.
RUCO was adopted in May 2003. At the time, there was thought to be 60,000 rental units in the City. It was heralded as a grand initiative to combat minimum housing issues in all rental housing throughout the City. Each and every rental property was to be inspected every 5 years. This way, in just 5 years time, the City of Greensboro could eradicate all substandard (rental) housing within their limits. There would be joy throughout the land and dancing in the streets. What an idea! And how much would it cost? Nothing, advocates said. The City already has inspectors on hand ready to do the job.
Fast forward 7 years later, and what have we learned? Well, for one, there is actually more like 35,000 rental units in Greensboro and they still have not all been inspected. We've also learned that 90% of the units inspected passed on the first inspection, and more than 1/3 of the failures are due to tenant violations. And here's the kicker: to date, this initiative has cost the City nearly 3 million dollars! I would be remiss if I failed to mention that there are some Council members and RUCO proponents who still argue that it costs nothing. To those people I will ask you to take a minute and google "TANSTAAFL". Go on. I'll wait. Finished? Good. Live it, love it, remember it: TANSTAAFL.
Cities throughout North Carolina keep trying to solve minimum housing issues by taking on behemoth ordinances like RUCO. And in each City where it is attempted, it is dropped due to the cost and the fact that universal inspection programs simply do not work. You spend 90% of the time inspecting rental units that pass on the first try. If Cities would have targeted inspections, they could cut down on cost and save time by getting to the heart of the matter and combating serious problem properties.
No one wants substandard housing to plague their city. It’s a shame that in a country as great as ours that there are some people who still live in squalor. But why should we punish the people who do the right thing and keep their properties repaired and up to code by burdening them with bureaucracy and red tape? Targeted inspections will go a long way to solving the problem. And heck, if you are really just itching to spend money, why not offer low interest loans to investors who would like to repair their properties? They aren't all "slumlords" by choice. Shocking, I know. The real tragedy is that everyone has been hit hard by this economy and it's all some investors can do to stay on top of their mortgage.
The City Council will be making tough choices on what to do with the RUCO program in the next few weeks. If you live in the City of Greensboro and feel that RUCO needs to be eliminated (or at least drastically altered) please contact your City Councilperson and let them know. It's your tax dollars their spending.
Thank you, I hope that you have enjoyed reading my inaugural IREM Legislative blog. I certainly have enjoyed writing it. Is there a pressing issue that you feel needs to be addressed? Just let me know!