A controversial proposal to modify the zoning code of a Fitler Square condo complex has been passed, despite some opposition from the neighborhood community. The property in question is 2216 Naudain St., which consists of four three-story condo units. Previously, these units were long-term single-family residences, but since their acquisition in 2020 by local realty corporation City Living Philly, the units have been used for short-term rentals such as AirBnB, VRBO, etc. However, the property is zoned under code CMX-2 (“Commercial Mixed-Use”), which does not permit “visitor accommodations,” including short-term rentals.

In fact, the CMX-2 zoning code does not allow for single- or multi-family residences, short- or long-term, unless the entire ground floor of the property is used for commercial purposes. Other permitted uses under this zoning code include parks and open spaces, community centers, food and beverage shops, and religious assembly spaces, among others. Despite the fact that both City Living and previous owners operated the property in violation of City zoning ordinances, the City government has never issued any citations or fines against the property’s owners.

Adam Laver, a real estate lawyer with Blank Rome LLP, who represents City Living, requested a permit from the City Zoning Board of Adjustment (ZBA) to allow for the property to be used for short-term rentals, but this permit was denied. The denial was appealed by Laver, who appeared in front of the ZBA on March 13 to argue in favor of the zoning adjustment. In this hearing, the ZBA voted unanimously to grant a temporary permit allowing the use of the properties for visitor accommodations to continue until March 13, 2027.

During the January 23 meeting of the Center City Residents’ Association Zoning Committee, Laver stated, “[City Living has] recognized that the visitor accommodations use, which actually has existed here for several years, is not properly documented in the L&I (Department of Licenses and Inspections) zoning records… They are seeking to do the right thing and come before CCRA and the Zoning Board, in part due to changes in visitor accommodations regulations.” It is unclear which specific changes Laver is referring to.

During his presentation to the CCRA, Laver shared documents showing the external and internal layout of the condo complex; the condos are accessible only through a private driveway off Naudain St. There is also a gate on the South St. side of the driveway, but according to City Living employee Tom Hallinan, it is only used by maintenance personnel. Due to this layout, Laver said that “it is quite difficult to imagine a viable commercial use that could be in this location.”

In protest of the proposal by City Living, Naudain St. resident Terry Gillen circulated a petition to prevent the change in zoning. As of the January 23 CCRA meeting, this petition had over 30 signatures from neighborhood residents. At the meeting, Gillen stated, “These four properties were single-family residential. We had terrific neighbors… They were people that you could leave your key with.” She continued, “Those are the sorts of uses that existed before [City Living] started buying up these properties.”

Gillen’s concern is based in the quality of life and sense of community for homeowners on Naudain St. According to her, the short-term rental use of the condos has caused a “significant deterioration in the quality of life on our block.” Gillen shared a recent anecdote in which she witnessed a man who was renting the property “urinating” in the street; she believes that this incident, among others, is due to a lack of care by short-term renters for the standards of living of long-term residents.

In contrast to this account, Laver stated that the majority of short-term renters of the property are familiar with the neighborhood and its community. Examples provided by Laver include neighborhood residents who have rented the property while renovating their own homes, and patients or families of patients “seeking treatment at hospitals in University City.” Laver continued, “booking requests are vetted, and identities are verified prior to accepting any booking.”

Other Naudain St. residents also voiced their concerns at the January CCRA meeting: one resident, Joanne Granger, shared her mixed feelings on the zoning issue, stating that the short-term rentals are “pretty non-intrusive into the community.” However, Granger also noted that “inventory is tight for long-term rentals, and even for properties to purchase, and it’s particularly tight in this neighborhood.” Her main point of contention was the possibility for City Living to purchase and convert more properties in the neighborhood to short-term rentals, further reducing the availability of long-term rentals and homes for sale. Laver did not comment on any plans by City Living to purchase additional properties in the neighborhood.

At the March 13 ZBA, David Fecteau of the Philadelphia City Planning Commission (PCPC) reported that “the comprehensive plan recommends no change to the commercial mixed-use zoning at this location.” He continued, “the City Planning Commission recommends that the board deny the proposed use variances for visitor accommodations.” Wade Albert, legal counsel for the CCRA, also commented at the ZBA hearing, stating, “the CCRA is generally opposed to visitor accommodation variances… there are many hotels in and around Center City, and our organization supports them, the workers they employ, and the business they bring to our communities.” In the CCRA’s view, short-term rentals such as AirBnB conflict with the economic benefits that hotels bring to the area, and have various other negative impacts including raising the cost of housing. Albert implied that if City Living had applied for a permit to use the properties for long-term rentals, CCRA would have recommended its approval.

Despite these objections from the CCRA, PCPC, and Fitler Square residents, the properties will be permitted to continue operating as short-term rentals for the next three years due to the results of the hearing. After that period has expired, City Living will need to file another request for zoning variance, leaving the eventual future of the properties uncertain.