The Committee on Licenses and Inspections moved forward bill 250722 on Wednesday, a measure intended to prevent unauthorized unit conversions by requiring evidence of a valid housing rental license before a public utility may install a second meter at small residential properties.

Councilmember O'Neil introduced the bill, which witnesses described as applying to residential properties with three or fewer dwelling units. Sarah Adamo, director of zoning and legislation for the Department of Licenses and Inspections Quality of Life, testified on the bill and said the administration supports a circulated amendment that shifts primary responsibility to the property owner while exempting certain family-occupied configurations.

Adamo said L&I is not expected to actively enforce routine meter installations but will continue to respond to complaints and issue violations when inspectors confirm unpermitted uses. “This legislation requires that property owners confirm that a property has an active rental license prior to the installation of multiple meters,” she said, and added the administration will work with the sponsor to prevent unintended consequences.

Stakeholder concerns and suggested fix
Nonprofit and development advocates supported the bill's goal of inhibiting illegal conversions but warned of an operational problem: several witnesses said meters are often required to obtain a certificate of occupancy and that a rental license may in turn require a certificate of occupancy. Garrett O'Dwyer, policy director of the Philadelphia Association of Community Development Corporations (PACDC), told the committee the original draft could create a “catch-22” for new development and gut rehabilitation projects, including scattered-site affordable housing or infill work.

O'Dwyer recommended an amendment requiring utilities to rely on L&I‑approved permits or plans demonstrating legality of the units rather than a completed rental license as the precondition for meter installation. Committee members and the administration indicated an amendment addressing that concern was circulated and approved.

Committee action
The committee approved the circulated amendment to bill 250722 and then voted to report 250722, as amended, with a favorable recommendation and to suspend rules to permit first reading at the next Council meeting.

Quote
- “We support the aims of the bill's sponsor…to increase adherence with city building codes, inhibit illegal conversions, and increase compliance with rental license requirements,” Garrett O'Dwyer, policy director at PACDC, said. He added the bill should be amended to require L&I‑approved permits or plans for new construction to avoid a meter-versus-license catch‑22.

Next steps
Bill 250722 was approved by the committee with an amendment and will be transmitted to the full Council with a favorable recommendation; the committee signaled it had accepted language intended to avoid obstructing lawful new construction while preserving an enforcement path against illegal conversions.