Allentown, Penn. Landlords Suing City Over Fees
Two rental property owners have sued the city of Allentown, Penn., claiming the city has no right to charge rental license fees that exceed the cost of running the rental inspection program.
Fees have increased by nearly 600% in one year, the landlords say, from about $11 per unit to $75 per unit. And the city won’t give clear answers about why the hike was necessary. So they filed a lawsuit to challenge the rate increase.
Records show 2010 revenue from the fees increased to $1.9 million, from $557,000 under the old structure. The cost of running the program, however, was budgeted at $1 million, and includes administrative expenses and fuel, parking and other vehicle expenses for 11 rental housing inspectors.
The Mayor of Allentown, Ed Pawowski, said the rental inspection program was making a big difference in the quality of housing. Landlords say they have no problem with inspections—just the huge fee increase. While the fee is due annually, landlords say the inspections don’t occur on a yearly basis. In some cases, units are inspected only every five to eight years.
The suit asks the court to declare the fee unconstitutional and to refund the past three years of fees to the plaintiffs.