Vandergrift backed off a fourfold increase to its rental licensing fee on Monday but pushed ahead with the rest of a proposal to rein in unscrupulous landlords.

The draft ordinance calls for annual inspections on rental properties and a $50-per-unit fee for their owners. Only after a code enforcement officer finds a property is compliant, without liens and up to date on taxes, would a license be granted.

Vandergrift put these rules on the books more than a decade ago but failed to meaningfully enforce them.

Most officials weren’t even aware of the existing ordinance until this renewed effort to address run-down rentals. Council President Tom Holmes attributed the lack of knowledge to high turnover.

The ordinance being advertised is similar in substance to the existing one. It will replace that section of code, if approved.

Council’s decision to not increase the fee came after resistance from landlords and their representatives who claimed a $200 annual registration would force up rents, harm tenants and expose the borough to legal action.

Sylvia Maxwell, president of the Greater Allegheny-Kiski Area Board of Realtors, reiterated many of the concerns she raised at the March meeting.

“Our association took action on this proposal to protect taxpayers, landlords and tenants from the unintended consequences of a legal challenge that could deplete borough funds,” Maxwell said. “We are also concerned about the potential for displacement of seniors, struggling families and those on fixed incomes.”

State law says fees must be based on the cost of administering the associated service. That is, rental licensing fees can’t be a money maker for Vandergrift.

At $200 a unit, with roughly 1,200 units in town, Vandergrift would have collected about $240,000 in annual revenue — likely far beyond the price of running the program.

The courts have been willing to enforce this concept, most notably in 2021, when an Allegheny County Common Pleas judge struck down Pittsburgh’s $45 to $65 rental registration fee as “excessive” and an “impermissible tax.”

Holmes estimated it will take between $10,000 and $20,000 to get enforcement going. The day-to-day costs are unknown at this point, he said, and could drive future changes to the fee.

“If we collect more money than we need, we’re going to have to, by resolution, reduce the amount of money that we collect,” Holmes said. “We’re not using this for some kind of backdoor tax, but we have to get control of these properties in this town.”

He added: “We have to have some kind of leverage.”

Council is expected to vote on the ordinance in May.

Several other area communities charge landlords on an annual basis to register their properties, including Manor Township at $10 per unit, Apollo at $50 and Kittanning at $75 for the first unit and $10 for each additional.

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