“Obnoxious” – DOB Acting Director Calls Out Commercial Use of Residential Property

CM Charles Allen and Acting Director of Department of Buildings Brian Hanlon at last Wednesday’s nomination hearing.

“Obnoxious” – DOB Acting Director Calls Out Commercial Use of Residential Property

by Larry Janezich

Posted October 25,2023

At last week’s hearing on Brian Hanlon’s nomination to be Director of the Department of Housing (DOH), CM Charles Allen grilled Hanlon on where DOB stands in terms of investigating residential properties being used for commercial purposes.  As it turns out, it’s complicated.

Hanlon:  “I find encroachment into residential areas of properties being used in a manner not consistent with residential use obnoxious.  I want to stem and stop that if we can.  When we start discussing enforcement it becomes more thorny.”  He says he is looking at a two pronged approach – what to do about the enforcement regarding the existing problem, and then what to do to stop the conversions from continuing.

Regarding what to do about the existing problem, “We are trying to figure out what tools and resources we have to deal with this….We’re talking about … a series of incredibly well funded enterprises that will stall/push back – so we’re trying to get our arms around what it will take to enforce against these ongoing issues.”  He added, “This is a bipartisan problem,” and cited the Freedom Caucus, the Congressional Black Caucus, and the Navajo Nation.

As for the how to stop the conversions from continuing, Hanlon cited an on-going conversation with Tiffany Crowe, Acting Director of the Department of Licensing and Consumer Protection (DLCP) regarding finding ways to prevent commercialization of these properties.  Hanlon said, “This will take some doing – there are all sorts of ways for people to find loopholes in the system.”

Allen responded, “I can appreciate it will take time to come up with different strategies,” but added that he needs to be able to share with ANC Commissioners and with community members what that looks like.  “It seems right now we don’t have any enforcement taking place when concerns are raised about residential properties used as commercial properties.  Is there any enforcement on that?”

Hanlon admitted there is not, saying, the last enforcement or inspection was in 2020, related to the Navajo Nation.

Allen probed, asking what enforcement barriers are there and how to identify them. 

Hanlon’s response went straight to the difficulty of enforcing existing regulations against illegal use of residential properties.  It’s not the barriers regarding the initial issuing of a Notice of Intent for violating DOB regulations, it’s the follow-up.  Then the barriers start becoming apparent.  In addition to the aforementioned stalling and pushback, Hanlon said, “We have a team of line attorneys working every day every week 10 to 12 hours a day just on the work that we have.  For the adjudication process this type of enforcement is likely to introduce we would need additional resources – which I can’t quantify – to meet that demand.”  He added that in DOB’s “triage of enforcement” the primary focus is on life, safety and health.  Resources are largely deployed looking at these issues first.  The illegal use of residential properties is related – as a quality of life issue – but it’s not a priority.

Allen proposed creating two task forces (similar to the one that addresses vacant and blighted buildings) comprised of the several agencies that have responsibilities for these issues – one for enforcing regulations against existing illegal uses and another for stopping the ongoing illegal conversion of properties to commercial use.  Both problems, he said, need a multi-agency strategic approach.

Hanlon said that communication and gathering of ideas is always a good thing; the emphasis is on a moving forward strategy – how to stem the conversions going forward.  That’s a conversation that is underway.

Allen replied, that he is looking to hold accountable those illegal commercial operations we have already.  In addition, “Every day that goes by we’re seeing houses being sold and bought and converted to these uses.  We’re losing homes.  When they come off the market were seeing housing pressures that force home buyers to look farther out and that affects affordability.” 

He thinks twin parallel tracks to create tailored solutions are needed.  He said, “I think that’s the right approach to start momentum.  I need to see momentum – the ANCs need to see it – and I know,” he told Hanlon, “you would like to see it as well.” 

Hanlon, former head of the Department of General Services, did not encounter any opposition during the hearing which would stand in the way of his confirmation as Director of DOB before the end of the current City Council session in December.