TAXING CRIMINALS FOR REVENUES: PART ONE (OF TWO)

The power of slumlords throughout the Nation calls to mind the scene in the 1987 movie, The Untouchables, where Sean Connery’s veteran cop tells Eliot Ness: “Everybody knows where the liquor is. It’s just a question of: Who wants to cross Capone?”

This holds true even in San Francisco, the so-called “renters paradise.” The files of the City’s Department of Public Health (DPH) and Department of Building Inspection (DBI) are filled with the names of slumlords whose buildings pose real dangers to those living in them.

All that the City needs to do is find the courage to enforce its own laws protecting tenants.

By refusing to do so, the City is losing millions of dollars in revenues that it could be collecting every year from slumlords violating its health/safety laws.

Here’s the way DBI and DPH now work: A landlord is given 30 days to correct a health/safety violation. If he drags his feet on the matter, the tenant must live with that continuing problem until it’s resolved.

If the landlord claims for any reason that he can’t fix the problem within one month, DBI and DPH automatically give him another month.

A slumlord has to really work at being hit with a fine—and that means letting a problem go uncorrected for three to six months. And even then the slumlord may well avoid the fine by pleading for leniency.

Many tenants have lived with rotting floors, nonworking toilets, chipping lead-based paint and other outrages for not simply months but years.

The City could vastly improve life for its thousands of renters—and bring millions of desperately-needed dollars’ worth of revenues into its cash-strapped coffers—by making the following reforms:

1. Hit slumlord violators up-front with a fine—payable immediately—for at least $2,000 to $5,000 for each health/safety code violation.
2. The slumlord would be told he can reclaim most of this money only if he fully corrected the violation within 30 days.
3. If he fails to correct the problem within that time, he should be hit again with a fine that’s at least twice the amount of the first one. The fine should increase twice as much for each month the violation goes uncorrected. Thus, if it’s $2,000 in January, it should be $4,000 in February, and $8,000 in March. And so on.
4. The slumlord would be allowed to reclaim 75% to 80% of the fine levied against him. This appeal to his greed would ensure his willingness to comply with the ordered actions. The other portion would go directly into the city coffers to maintain needed services.
5. If he fails to comply with the actions ordered, the entire fine should go into the City’s coffers.
6. Inspectors for DPH and DBI should be armed with cross-jurisdiction authority. Thus, if a DBI Inspector spots a health/safety violation covered by DPH, he should be able to cite the slumlord for this—and pass this information on to DPH for its own investigation. And the same would apply for Inspectors from DPH.
7. This would instantly turn DBI and DPH into allies, not competitors—and would mean that whether a citizen called DBI or DPH, s/he could be assured of getting the assistance s/he needed. (Currently, DPH and DBI Inspectors often tell citizens, “I’m sorry, that doesn’t lie within our jurisdiction. You’ll have to call—.”)
8. DPH and DBI should have their Inspectors divisions greatly expanded.  Cutting back these units is a no-win situation for San Francisco renters–and for desperately-needed City revenues.
9. Turning these agencies into revenue-producing ones would enable the City to raise desperately-needed revenues—in a highly popular way. Fining delinquent slumlords would be as unpopular as raising taxes on tobacco companies. Only slumlords and their hired lackey allies would object.
10. Slumlords, unlike drug-dealers, can’t move their operations from one street or city to another.  Landlords aren’t going to demolish their buildings and rebuild them somewhere else. So they have to stay put.
11. Landlords should be legally required to give each tenant a list of the major city agencies (such as DBI, DPH and the Rent Board) that exist to help tenants resolve problems with their housing. 
12. Landlords should be legally required to rehabilitate a unit every time a new tenant moves in, or at least have it examined by a DBI inspector every two years.  A tenant can occupy a unit for ten or more years, then die or move out, and the landlord immediately rents the unit to the first person who comes along, without any repairs or upgrades whatsoever.
13. Landlords should be required to bring all the units in a building up to existing building codes, and not just those in need of immediate repair.
14. Landlords should be legally required to hire a certified-expert contractor to perform building repairs.  Many landlords insist on making such repairs despite their not being trained or experienced in doing so, thereby risking the lives of their tenants. 

Andrew Jackson once said: “One man with courage makes a majority.” And one city—acting with courage—can ensure protection for its tenants and general revenues for vitally-needed services.

If San Francisco can do this, so can California. And then so can the rest of the Nation.