Wednesday, April 25, 2012

Investors Snatching and Peddling Homes Near Aurora University to Convert to Rooming Houses; Alderman Rick Lawrence Proposes Process to Protect ALL Neighborhoods and Quality of Life

If you live in a single family home anywhere in Aurora, what stops investors from snatching your neighbor's home in a depressed market and converting it into a rooming house or student housing or even a frat house?

Nothing.

But, that's been a growing problem on Aurora's west side in the areas surrounding Aurora University.

With an increasing student population and demand for housing, investors are targeting homes that are in foreclosure or depressed values to snatch them up, convert them into rooming houses and peddle them to students or others.

A four bedroom house next door could suddenly go from a family to 8 college kids with 8 cars, not including their friends and leaving aside if they are wild and crazy college kids with parties, booze and noise.

Alderman Rick Lawrence took the initiative to address this issue in 2011 and, with the cooperation of Aurora University, a Neighborhood Council was created to deal with how to deal with existing problems with those students, creating consequences between the students from the university.

However, that dealt with the problems after they happened.  Lawrence suggested a process, similar to how it's done in Evanston with Northwestern University that would evaluate each situation before converting a home and providing a special-use permit only to those situations where it would not negatively impact a neighborhood.

In those situations where dorm-like, rooming houses were approved, a special-use permit would also mean that investors would have accountability if the situation turned out not to be in the best interest of the neighborhood.

Lawrence says not all investors are the same.  Some may seek situations to exploit and turn a big profit without any regard to the negative impact to the community and taxpayers.  Others may seek to add value and improve the neighborhood, but the current situation lacks any guidelines or process to determine what is coming or for taxpayers to express their view before it happens.

"Aurora University has been very cooperative on addressing concerns with the neighborhood, but while AU has a level of control over their students, they don't have any control over the investors.  As a city, we need to make sure that we protect quality of life in our neighborhoods and investments of taxpayers in their homes when considering any impact" said Lawrence.

In 2011, Lawrence's proposal to create such a process was discussed by the Planning and Development Committee, but then later put on hold to allow for time for the Neighborhood Council to form and address problems.

Meanwhile, investors are continuing to snatch up more homes.

One investor, Kevin Fitzpatrick, recently bought a home on LeGrande, on the same street as City Assistant Chief of Staff Chuck Nelson and So-Called Corporation Counsel Alayne Weingartz, saying he would just put a family there for a rental.

Instead, it's now going to stuffed with college kids.

Lawrence, in a letter to Mayor Tom Weisner and the Aurora City Council, is urging the Planning and Development Committee to resume the discussion to come up with a process that would evaluate these situations and prevent a neighborhood from suddenly being impacted without warning.

But, Lawrence also points out this doesn't affect just the neighborhoods around Aurora University on the west side.  This could and does happen anywhere.  Rooming houses have sprung up in various parts of the city for different purposes and creating a process would protect all neighbhorhoods in the same manner.

"Every homeowner in Aurora, regardless of where they live, deserves to their quality of life protected and an opportunity to evaluate any potential change or impact before it happens.  And, when we make decisions as a city council on a given situation, we are accountable for them, too" said Lawrence.

Continue reading for excerpts of Lawrence's letter to Mayor Weisner and the Aurora City Council:





To all,

Back in March of 2011, I suggested that we look into enacting a similar ordinance to one that Evanston adopted to control and monitor homes being converted into off campus housing for students (see email below).

The P&D committee heard several ideas on the matter ranging from the Evanstons ordinance to a wide expansion of building code requirements. The issue was tabled to allow us time to work with Aurora University.

Over the past year a Neighborhood Council has been formed consisting of myself, Dr Lora De Lacey, Dean of Student life at A.U., members of her staff, coaches, A.U. Police, a student representative, Aurora Police, area residents and landlords.

The program has been extremely effective at dealing with issues as they arise. The addition of the student representative on the council has been a great tool for communication with the estimated 120-plus students living off campus in our neighborhood.  He has done a great job.

The response by Aurora University to residents concerns or issues such as parties, property conditions and the general impact of have having a university in the middle of a residential area has been outstanding. It has been a very positive and proactive approach to build a strong relationship between the surrounding neighborhood and Aurora University.

However, the issue that is beyond the control of the Neighborhood Council and is still having a tremendous impact on our city is the ever expanding conversion of single family homes into dorm style living arrangements.

We are seeing an increase of investor groups packaging and peddling our neighborhoods as a great investment to convert homes from their original intent.

Some of these homes having four bedrooms will house up to 8 individuals, with 8 cars, and various levels of maintenance, changing the dynamics of a neighborhood.

The Evanston approach is simple and can be applied across our city to many rental properties in our city. Evanston by ordinance classifies such use to be a "rooming house" and along with various code requirements it requires a special use permit approved by City Council.

* It allows for a process by which to follow to change the intended use of a single family home.

* It allows for the residents and taxpayers of any particular area to have a voice of converting these homes by investors looking to profit off of depressed property values.

* It allows us as City Council prior to approving a special use permit, to do our due-diligence, to understand the impact, to make a judgement if the development fits any particular neighborhood and to understand the over-all situation of a particular property being converted to this use.

Currently, we have little ability to protect the neighbors from this type of investment group. A special use permit can be removed if the investors are not responsive to or acting in the best interest of the neighborhood.

Lets be clear, this is not about bringing families to our neighborhoods, this is purely about generating the highest return on investment, many times at the expense of the neighbors quality of life and their investment in their own homes.

I would ask for the P& D Committee to bring the issue back for discussion and that City Council would implement an ordinance similar to what other communities have adopted.

Respectfully,

Rick Lawrence
Alderman, City of Aurora

18 comments:

Anonymous said...

there really should be a process to evaluate these on a case-by-case basis. I wouldn't want to see the home next to me become a dorm overnight.

Anonymous said...

You live right next to a college... what do you expect. I agree hugh parties and loud noise shouldn't be tolerated, but that is a police matter. Call the cops if something gets out of hand and they will take care of it. But you can't stop students from renting homes from investors in the area.

Anonymous said...

Openline, where's the story about Bob Bonifas, our local businessman who returned home after 2 dangerous weeks surviving the arctic?

He's a hero yet no story.
Shame on you.

Anonymous said...

bonifas is hero for going on a cruise?

boo hoo

Anonymous said...

The City has added ordinance after ordinance trying to control what they deem to be bad landlords. Should one of those not address this situation? If not, then live with it. If the kids are behaving themselves (crime free ordinance). The landlord is addressing any problems (nusiance abatement ordinance) and the structure is being maintained (single family rental inspection ordinance) then what the heck is the problem? Please dont make another law, one of the many alreadynwritten should address this if it is a real problem!

Anonymous said...

Who cares?

Lawrence needs to shut up.

Anonymous said...

Maybe they can consider limiting overnight parking in those crowded neighborhoods. Maybe every address can get one permit for street parking. Oswego and other towns limit overnight parking and it seems to work. All a temporary visitor has to do is call the Police dept for temporary permission.

Anonymous said...

The other option would be for the city to buy out every house around the university for 2 blocks, then the city could rent the houses out to the kids. Let the city collect the money, and we'd close our deficit! The heck w/ the neighbors, we want to squeeze as much money out of those college kids as we can! We could also have city owned beverage carts, like they have on golf courses, cruising those streets selling beer. Cha ching!!!

Anonymous said...

Doesn't sound to me like Mr. Lawrence likes his job much. We have current laws that deal with this issue and making more laws isn't going to help but to give more power to the government...NOT GOOD. I have worked well with the police department on issues that have come up and I feel we have had great success with this relationship because we are all adults, not bad people. These homes that have been bought up by investors would still be on the market further depressing the market if these investors didn't buy them. So I say work with these people and do what it takes, aside from new laws to get a grip on the situation. I am sure the landlords don't want further depressed house values as well.

Donald "Buzz" Foley said...

I have novel idea. The problem isn't the landlords, its really the college, or the city, (albeit a good problem), as it doesn't provide enough dormitories for its student population. IDEA, City or University should buy the homes around the university (level them) and build high rises to house these kids that come to Aurora for an education(That's a good thing). Maybe even making a profit on further parking facilities and opportunities that come with a larger student population.....Maybe the alderman may want to look in this direction. I am sure there is a opportunity here, not just further punishment for people that are trying to fill a need( That's Capitalism). These investors are filling a need that is not being properly addressed by the city or the university. I love Aurora and I went to Aurora University. So I do care. And I don't want the area around the University to become a slum area either. Properly addressed, this issue could become a gold mine for all involved( that's capitalism) as the university isn't getting smaller it seems to be growing nicely(That's a good thing). I am certain that Mr. Laurence does care about the area but we need to be creative thinkers here, not just punitive. This really is a good problem.
Don"Buzz"Foley

AU Friend said...

Rick,

Once again Rick wants to create more big government controls on a non existent problem. Come on Rick, can you give us some addresses and names of these new dorms and there owners? I don't think you can!

You just like to hear your own voice.

It is a great neighborhood as it is. We already have laws in place, that covers this issue, and they are working quite well.

You were once just a guy helping your neighbors. I don't know if it was the Weisner issues you had, or something else, but you are outta control.

Regardless, your time has just about come and gone in city govt.

Anonymous said...

There are already numerous laws and ordinances a landlord must follow. Those laws effectively deal with the exterior condition of the property, how many people per room, nuisance, drugs, etc. I am quite sure all those issues can be dealt with under current licensing ordinances. I admit I do not know what the economic impact AU has for the city...but I assume it's positive. Inadequate supply of student housing has to be a huge obstacle for enrollment of any college or university.

Anonymous said...

Hear the facts. A single family 4 Bedroom Home located 7 blocks from the University was purchased by the individual mentioned. How can it be justified in anyone's mind that turning that residence into a dormitory setting for eight College Students will have a positive effect on property values for those in the neighborhood? Ask yourself the simple question, what would your response be if you were faced with the same situation in your immediate area? It's not against the students or the University, it's making a statement for protecting homeowners to assure their choice for selecting their homes at time of purchase doesn't change overnight under these circumstances.

Anonymous said...

would you buy a home next to a house that has been converted into a college dorm?

Anonymous said...

It might suck but it's not against the law... As long as the obey fire codes and other laws there is nothing the city can do about it. It's the price of living near a college. Its a very nice neighborhood partially because of the college.

Anonymous said...

Its a very nice neighborhood partially because of the college.

Can you explain how the college improves the neighborhood?

Anonymous said...

Are you out of your mind.

Take a look across town. The college
anchors this neighborhood. Get real, this is the best neighborhood in Aurora. THE UNIVERSITY is a blessing for all who live by here. Quit micro managing a wonderful University neighborhood. This neighborhood is doing just fine,
without Ricks big government intervention. It is actually a better neighborhood now then 10 years ago.

Anonymous said...

Yeah, Pierce lived there back then