Housing plan worries locals and landlords

Following the announcement of a Penn-supported initiative to buy and manage housing in University City, some of the community's residents and landlords have voiced their objections to the plan. While some praised the Partnership for Quality Housing Choices in University City as a good idea, many more have expressed concern that it will stifle competition in the local housing market and fail in its stated mission of keeping rents low. In addition, and perhaps even more importantly, questions have been raised about the University's true intentions in the Partnership. "They're going to drive people out of business," landlord Thomas Kerr said of the five-member coalition. The initiative is a joint venture between Penn, national mortgage giant Fannie Mae, the University of the Sciences in Philadelphia, First Union National Bank and Trammell Crow. Together, the group has pledged more than $40 million to the project. A top official for one of University City's major landlord offices who asked to remain anonymous said he wonders if Penn's motives in joining the venture are entirely pure. "I'm suspicious that their stated goal isn't what their actual goal is," the source said. Because Penn seems to have little to gain directly from such a hefty investment, he and others wondered if the Partnership was actually created as a way to generate more income -- and if so, what would then motivate it to keep rents low. "I don't think they would be going into it if they couldn't make money," said John Woodin, a landlord who controls 13 units in University City. While he noted that the Partnership has the potential to benefit the neighborhood, Woodin still doubted that it would keep prices down. "I don't believe that what they're doing is going to do anything to keep prices moderate," he said. "By improving the housing stock, prices will increase." And a University City resident who wished to remain anonymous was very skeptical of the University's involvement in the Partnership. "I don't tend to believe Penn when they come out with plans like these," he said, referring to some of the school's recent for-profit development projects such as Sansom Common and the unopened Sundance Cinemas. "I don't think that their first priority is the residents, or even the students," he said. "It's about money." He also pointed out that the University already operates a for-profit real estate venture through University City Associates, a Penn-owned company that controls more than 700 units. Despite the criticism, however, some area landlords said the Partnership could still benefit residents of University City -- especially when it comes to dealing with some of the neighborhood's deadbeat landlords. "Ostensibly [the Partnership] would be a more responsible housing provider than average," said Al Krigman, president of landlord corporation KRF, which owns 45 units. But while Krigman believes the Partnership will be a good administrator, he also pointed out that having Trammell Crow -- a national corporation that will manage the Partnership's properties -- as superintendent might cause problems in maintenance services. "You find a disconnect," he said of off-site superintendents. "You get [maintenance] people who are totally removed from the situation." In fact, Trammell Crow was removed as the University's primary facilities services manager last spring due to poor performance. But it retained its position managing real estate affairs and construction at Penn. And with so many small landlords in the area, Kerr stressed the tough competition Penn will mount through its role in the Partnership. "They're the 800-pound gorilla around here," said Kerr, who owns 36 units in Powelton Village. "They should stimulate growth, not dominate it."

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