Lancaster city short-term rental host pleads guilty to building code violations

A Lancaster city property owner at the center of a multiyear short-term rental controversy pleaded guilty Tuesday to violating building code standards.

City officials cited 42 code violations committed by Vincent Palazzotto and his company, Melody Investments Ltd., at multiple properties serving as short-term rentals.

City residents had lodged complaints against Palazzotto for years, arguing he improperly renovated houses in their neighborhoods without proper building permits.

The city on Tuesday waived all fines associated with the citations on condition that Palazzotto pay several thousand dollars in attorney fees and court costs.

“We’re satisfied with the decision,” Palazzotto said. “We’re happy to be working with the city to ensure the homes are safe.”

Sheila O’Rourke of Gibbel Kraybill & Hess, an attorney representing the city, declined to comment.

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Rentals to recovery homes

The city reached multiple settlement agreements with Palazzotto and another property owner, Robert Radicevich, last spring on whether their properties could be used as short-term rentals.

The settlement agreements ended short-term rental use at two properties on North Shippen Street. A handful of other properties on South Lime, East Lemon, East Chestnut and North Duke streets were granted permission to continue as short-term rentals under the condition that the properties be rented to only one family at a time.

City Council in 2022 tightened short-term rental laws, effectively banning their operation in most parts of the city. The ordinance confines short-term rentals to commercial and mixed-use districts, which are primarily downtown and around Franklin & Marshall College.

Shortly after the settlements, Palazzotto began an addiction recovery business called Porchlight Recovery with plans to convert short-term rentals into recovery homes, which do not require permission from the city to operate.

Palazzotto on Tuesday said two properties are currently operational as recovery homes, while many other properties are still being used as short-term rentals. He said he still plans to use more properties for Porchlight Recovery, though a few will continue to operate as short-term rentals for family and friends to visit patients in recovery.

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