After being investigated by the Philadelphia Office of Inspector General and Department of Licenses and Inspections, Rock Haven Builders LLC and V2 Properties LLC, entered into settlement agreements.
PHILADELPHIA – Inspector General Amy L. Kurland announced today that real estate developer V2 Properties LLC and its general contractor Rock Haven Builders LLC agreed to pay a total of $160,000 in permit fees and fines and to implement a compliance program with additional conditions for the companies’ use of fraudulently altered permits and failure to obtain required Right of Way permits at 94 different construction sites in Philadelphia.
“This case clearly shows that the City will not tolerate companies that cut corners. If you want to do business within the City, you must always play by the rules,” said Amy L. Kurland.
In close collaboration with both the Department of Licenses and Inspections (L&I) and the Streets Department, the Office of Inspector General (OIG) identified 94 different residential construction projects where developer, V2 Properties, and general contractor, Rock Haven Builders, failed to obtain Right of Way permits from the Streets Department. The Philadelphia Code required a sidewalk and/or street closure permit at each of the sites, which neither the developer nor the contractor ever obtained. On four construction sites, L&I found that Rock Haven Builders had posted previously-used permits, altered to appear as if they had been issued for the projects on those sites.
After the OIG and L&I investigations and cooperation of both companies, V2 agreed to pay the City $100,000 for owed permit fees and Rock Haven agreed to pay $60,000 in fines.
“Skirting the City’s permitting process and construction codes will not be tolerated,” said L&I Commissioner David Perri, “L&I has strengthened its audit, investigation, and enforcement units and will continue to work closely with OIG to protect the safety of our community.”
Streets Commissioner Carlton Williams added, “The City will use all available enforcement tools to hold developers and contractors accountable. This collaborative effort sends a strong and unified message.”
In addition to the financial compensation, V2 Properties also agreed to implement a permit compliance program that includes periodic training for subcontractors and a designated permit conformance manager for all projects. Rock Haven’s Philadelphia contractor’s license will also be subject to a one-year probationary period.
Read the full Executive Summary of the Inspector General’s investigation here: https://www.phila.gov/ig/ContractCompliance/Pages/default.aspx.
About the Office of the Inspector General
The mission of the Office of the Inspector General (OIG) is to enhance public confidence in the integrity of City government by rooting out corruption, fraud, misconduct, waste and mismanagement. For more information, visit: http://www.phila.gov/ig.
About the Streets Department
The Philadelphia Streets Department and the divisions within it are responsible for the City’s vast network of streets and roadways. The Streets Department’s mission is to provide clean, green, and safe streets in a cost-effective and efficient manner. The department delivers a number of City services that are critical to maintaining the public health and safety in our communities.
About the Department of Licenses and Inspections
The Department of Licenses and Inspections (L&I) enforces the City’s codes for the safe and lawful construction and use of buildings. L&I embraces best practices in technology and customer service to enable the public to access information, secure required approvals, and comply with building safety requirements in a convenient, reliable, and transparent manner. L&I achieves code compliance through collaboration, education, and effective enforcement measures that hold businesses, contractors, and property owners accountable.