IPL helped organize testimony surrounding Tax Increment Financing for Omaha landlord, Dave Paladino. Paladino Development Groups has thousands of low-income units that rent to a wide range of tenants, including many refugees. In the unprecedented hearing, over ten opposing testimonies shared stories of Paladino’s treatment of tenants and business practices, lack of maintenance and upkeep, and unsafe and unsanitary conditions. TIF cases tend to be automatically approved, but the city council, who listened for over an hour and a half to emotional, moving testimony, voted to postpone to vote for three weeks. They want to look into TIF approval laws, which currently do not allow decisions to be made based on the applicant’s other business practices. Click hear for complete Omaha World Herald coverage of the TIF hearing.
Need for enforcement
IPL trained leaders with OTOC’s Housing and Neighborhood Revitalization Action Team testified neutrally (read Gloria Austerberry’s testimony here), saying that Paladino does have a bad reputation among tenants, but works well with housing agencies that have case workers to hold him accountable. He meets the standards that are enforced, but when there is no enforcement, he gets away with neglecting properties and using a business model that seems to exploit tenants (read Hannah Wyble of Restoring Dignity’s testimony at the hearing for examples), proving again that proactive inspections of units will keep properties up to code when landlords don’t do it themselves.
Several testifiers called for inspections on all of Paladino’s properties if he is to qualify for tax dollars on his new development project, and guarantees that rent will remain at market rate (read testimony by Jack Dunn from Policy Research Innovation and Rosalyn Volkmer).
IPL continues to research Omaha’s substandard rental housing and complaint-based code enforcement system, and looking at national best practices, especially a proactive inspection ordinance. Leaders continues to call the City of Omaha to adopt a rental registration AND inspection ordinance so that all rental properties are routinely inspected. The testimony at this hearing showed city council and city staff that Yale Park is not the only substandard property in Omaha. Council member Pete Festersen said in his remarks that the City Council Planning Committee, which has been meeting regularly since Yale Park last September is getting ready to release it’s recommendation on what the city can do to address substandard rental housing. It is clear the tides are turning in the city, and that there is growing attention to substandard rentals and city code enforcement. The question is, when the committee’s plan is released, will it prevent another Yale Park?