Fitler Square Condo Complex Wins Zoning Battle, Paving Way for Continued Short-Term Rentals
By James Young
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. City Living Philly, a local realty corporation, has been offering them as short-term rentals on sites like VRBO since they acquired them in 2020.
However, the property is zoned as “commercial mixed-use,” which does not permit “visitor accommodations,” including short-term rentals.
In fact, its zoning 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.
Despite the fact that both City Living Philly and the 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. The permit was denied, which is common for such zoning petitions.
Laver appealed the denial and 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 properties to be used for visitor accommodations until March 13, 2027.
“Difficult to imagine a viable commercial use”
City Living Philly argues that the layout of the complex makes it infeasible to use as a ground-floor commercial space.
During his presentation to the Center City Residents’ Association Zoning Committee on January 23, 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.”
Neighborhood Opposition
In protest of the proposal by City Living Philly, Naudain St. resident Terry Gillen circulated a petition to prevent the zoning change. As of the January 23 CCRA meeting, this petition had over 30 signatures from neighborhood residents.
At the meeting, Gillen stated that the “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 Philly] started buying up these properties.”
According to Gillen, the short-term rentals have caused a “significant deterioration in the quality of life on our block.” Gillen claimed to have 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 “booking requests are vetted, and identities are verified prior to accepting any booking.” He said the majority of renters are familiar with the neighborhood and its community. Laver said typical renters are neighborhood residents who have rented the property while renovating their own homes, and patients “seeking treatment at hospitals in University City.”
Other Naudain St. residents also voiced their concerns at the January CCRA meeting. One resident, Joanne Granger, was concerned about the possibility for City Living Philly to purchase and convert more properties in the neighborhood to short-term rentals. “Inventory is tight for long-term rentals, and even for properties to purchase, and it’s particularly tight in this neighborhood,” Granger said.
City Living Philly declined to be interviewed for this story.
Convincing the Zoning Board
At the March 13 ZBA meeting, some officials voiced skepticism about the proposed change. 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 Philly had applied for a permit to use the properties for long-term rentals, CCRA would have recommended its approval.
Despite these objections, 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 Philly will need to file another request for zoning variance, leaving the eventual future of the properties uncertain.
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