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RentalOwner Magazinet h e v o i c e o f t h e r e n t a l h o u s i n g i n d u s t r y

Edition

June 2015

Inside this issue:

•Prepared Before the Crisis•Serving Notices•Outdoor Employee Laws

Emergency Prepardness

1201101009080706050

Professional Certifications and Designations

Take your career to the next level with the National Apartment Association Education Institute (NAAEI) Professional Certifications and/or Designations.

These Programs are available online at www.sdcaa.com

Online LearningOnline ClassesSeminars

ONLINE: 20 Apartment Marketing Ideas for Under $500 & More

No budget? No problem! There are plenty of mar-keting opportunities that do not cost thousands of dollars. In most cases, the magic is in the imple-mentation. Over the years, Kate Good has become the expert in bargain hunting when it comes to marketing (and shoes too but that is another Webinar!). This idea-packed program will deliver ideas every property can afford and put into ac-tion before the next time your Regional Manager visits. Remember, there is no better way to spend your hump day than on a Webinar Wednesday.

Cost: $29

Register at www.sdcaa.com Have your RHC login information ready.Forgot your login? Contact RHC Monday through Friday between 8am and 5pm

Get up-to-date information through the convenience of learning on the Internet while providing the opportunity and bene-fits of peer-to-peer interaction through the Webinar Wednesday series or the NAAEI webinars.

July

• July 8- Dear Resident: We Love You So Much We're Raising Your Rent

• July 22-Secrets of a Closing Artis

Webinars

Take online courses or recorded webinars 24 hours a day. Over 80 courses are available in Eng-lish and Spanish. View the bro-chure at www.sdcaa.com.

More information on cost and registration is available on www.sdcaa.com

6Prepared Before the Crisis How prepared are you and your staff in the event of an emergency? The author covers the important areas to consider in advance of a crisis, whether it be a

fire, flood or other natural disaster.

Serving Notices – A Framework for Success article that provides a step-by-step process for serving notices.

10Outodoor Workers? You Need to Review and Update Your Policies Now: New Heat Illness

Prevention Requirements – Many outdoor workers face exposure to increasingly dangerous temperatures while working outside. The author covers the guidelines employers must follow to protect their employees while working outside.

RentalOwner-RHC Magazine

Cover: ® Illustrations | Dreamstime.com

We are very excited to bring you RentalOwner-RHC! Our main objective is to bring you informative articles that will help you manage your rental property. Whether you are a regional manager, onsite manager, leasing agent, independent owner or maintenance person, we hope you will find the articles and services useful.

Magazine StaffPublisher Alan Pentico, CAEExecutive Director

Design & Layout Olivia GalvezDirector of Publications

RentalOwner-RHCMagazineispublishedbytheSanDiegoMulti-HousingCorporation(SDMHC)awhollyownedsubsidiaryoftheSanDiegoCountyApartmentAssociation(SDCAA).ThemagazineispublishedmonthlyandisprovidedtoRHCmembersonly.Theviewsexpressedinthesearticlesaretheauthors'sanddonotnecessarilyreflectthoseoftheSDCAA,RHCorSDMHC.

All Rights ReservedMaterialsmaynotbereproducedortranslatedwithoutpriorwrittenpermissionbythepublisher.FormoreinformationonRentalHousingCoalition-SouthRiversideCountyorRentalHousingCoalition-DesertCitiesorRentalOwner-RHCMagazinecontactthepublicationsdepartmentatogalvez@sdcaa.comorat858.751.2217,visitwww.rhcsoriverside.org,www.rhcdesertcities.org.

To Advertise: IfyouwouldliketoadvertiseyourproductsorservicesinRentalOwner-RHCMagazine,[email protected].

To Write for RHC: Ifyouwouldliketosubmitastoryidea,writeoradvertiseinRentalOwnerRHCorRentalOwnermagazine,[email protected]

Columns

12 Local Legislative 14 From the Capital-State Update21 Travel and learn program

7

4 | RHC-RentalOwner June2015

In our commitment to provide value and increase the return on investment of membership, the SDCAA-RHC has added new services, discounts on coveted services, and new products at no cost to our members. One of the perks of membership is the SDCAA-RHC’s Partnership Solutions program and the National

Apartment Association’s (NAA) Open Door program.

The NAA’s Open Door program is available to RHC members. As a benefit of your membership, the Open Door program provides our members exclusive discounts on a variety of top name products and services provided by reputable companies – Visit the NAA’s website at http://www.naahq.org/ to learn more.

Like the NAA’s Open Door program, the SDCAA-RHC’s Partnership Solutions program connects you to our industry partners that offer discounts on services and products only available to our members. In addition, the SDCAA-RHC’s new database allows members to make payments online, even make payments through emails you receive from the SDCAA-RHC. On our website, you can assess the SDCAA’s Career Center, download and print InfoLink Rental Forms, and White Papers - Visit us at http://rhcsoriverside.org/ and login.

Now that the State Water Resources Control Board approved water reduction targets that went into effect on June 1, please download our new Water Conservation Information Packet for RHC members. Learn more about the new water restrictions in your area to conserve water and share the information with your tenants – You can access the SDCAA and RHC information packets by logging into the SDCAA website and clicking the ‘White Papers’ hyperlink under the ‘Quick Links’ heading.

On page 5, ‘Prepared before the Crisis’ by Paul Rhodes is about preparing plans to respond quickly to emergencies. On page 7, we have an article on Unlawful Detainers, and learn about the rules for workers working outdoors in high temperatures on page 10. Of course, don’t forget to read our Local Legislative Update on page 12.

As always, please contact us if you need assistance.

Alan PenticoExecutive Director Rental Housing Coalition of South Riverside County and Desert Cities

From the Executive Director's Desk

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Prepared before the CrisisBy Paul Rhodes

I was awoken at 12:42am on Monday of last week to the strobe light and alarm going off over my bed. After getting dressed and running down the stairs I found the rest of the hotel guests gathered outside at the front

doors.

As I continued to wake up the sirens approached from the fire truck. Behind it was the Fire Marshall’s response vehicle and in the distance could be seen the flashing lights of two other fire trucks. The fire department looked ready to go as they leapt off of their trucks and quickly walked into the hotel to assess the situation.

It’s at this point that the difference in preparedness level became apparent. The Shreveport Fire department was swift and confident as the firefighters spread out throughout the building to find the source of the alarm. The Fire Marshal went directly to the desk to speak with the night manager, who was completely flustered.

The Fire Marshal asked questions that appeared to cause the hotel staff member to throw about paperwork. It seemed that he had no ready area for the information that was requested. He didn’t know where the valves were for the sprinkler system, when the last time the alarms were tested, whom


he should call to reset the system or even where the main panel was physically located in the building. I saw him frantically try to call seemingly anyone on his staff that would know that information all the while that the alarms continued to sound.Eventually he was able to contact someone from a fire alarm company (it didn’t seem like the company called was the one with whom the hotel had a contract) to reset the system from this false alarm. Finally we were able to return to our rooms at about 2:00am.

How prepared is the staff on our apartment communities for emergencies? As an emergency is generally a sudden event, our response should be discussed and even practiced; just like the response of the fire department before a crisis occurs. Here’s a couple of ways to get ready:Ensure that the staff has an idea of what should be priority and proper reactions to different situations.

As a group, discuss how to handle:• A fire on the property (both during business

hours and in an on-call situation)

• Large flooding (due to weather or a water main break)

• A death at the community

• Fire alarm panel problems

• Various Police and Law Enforcement actions

• Press and camera crews arriving at the community

• Large destruction on the property such as if someone drives through the fence, or runs into a building

• Create an emergency notebook that contains relevant information and ensure it is always found in the same location. Some information to include would be:• A site map with utility cut offs marked (Water

valves, sewer clean outs and electrical meters)

• A current contact list of employees and upper management include all numbers. (One idea is to have a “contact party” where during the staff meeting everyone inputs the information into their own phones)

• Contact information for reputable emergency response companies such as water extraction, mechanical contractors, plumbers and electricians.

• Contract information for any contracted services that may be needed quickly (alarm monitoring company; both fire and intrusion)

• Necessary management paperwork or reporting forms such as an incident report or property insurance information

With some preparation our response can be reassuring to our residents, such as how the fire department responded. Hopefully we can avoid the response of the night manager, where the hotel lost some guests…

RHC EducationPractical training to advance at each

step of your career.

Designations:Certified Apartment Manager (CAM)

Certified Apartment Supplier (CAS)

National Apartment Leasing (NALP)

Professional

Continuing education Contact RHC at 858.278.8070


Unlawful detainer litigation is an extremely technical area of the law. While the unlawful detainer process seems very slow to the owner who has not been paid rent, unlawful detainer cases proceed very quickly by court standards. Because the right to possession of real property is at issue, the

courts give statutory priority to unlawful detainer actions. Perhaps as a counter balance to the perceived speedy trial advantage given to landlords, the courts and legislature require the Plaintiffs to be very precise in how they handle their evictions. The slightest misstep may result in the Plaintiff’s case being unsuccessful. In general civil litigation, which often takes multiple years to litigate errors in the court, pleadings can typically be fixed even on the trial. This is not case in unlawful detainer where even the slighted error can be fatal to a landlord’s case. There are a number of areas in which mistakes with serious consequences can easily be made. This article touches just one of these areas. The focus of this article is service of notices on residential tenants. The rules are slightly different for commercial tenancies.

California Code Of Civil Procedure Section §1162 sets forth rules for services of notices. The notices whose service are governed by CCP Section §1162 include notices terminating tenancy, pay rent or quit notices, perform covenant or quit notices, and post foreclosure eviction notices. CCP Section §1162 is far more clear and concise than many code sections. You can search the section in your web browser and read the language of the statute. I will nonetheless summarize the requirements for service. The landlord must first attempt to

A Framework for Success Article

Serving NoticesBy Mark D. Feinberg, Heinz & Feinberg and Law Offices of Richard C. Alter

Three Day Notice to Pay or Quit

California Civil Code § 1161, 1785.26,& 1174,

Form 400 © 2013 Page 1 of 1

The unauthorized copying, duplicating, downloading, display or any other use of this form is not permitted.

This form does not constitute legal advice. For legal advice, please consult your attorney.

Resident(s):

and All Unnamed Occupants.

Owner/Agent:

Leased Premises:

Unit #:

City:

State:

Zip:

Within THREE DAYS after the service on you of this Notice, you are hereby required to PAY to Owner/Agent the rent for the premises

amounting to the total sum of $

calculated as follows:

$

for the rental period from

/ /

through /

/

$


/ /

through /

/

$


/ /

through /

/

Within three days after service of this notice upon you, the total overdue rent payment, in the amount stated above, must be made by cash,

check or Certified Funds payable to

, and must be delivered to the following address:

_________________________________________________________________________________________________________. Days

and time of operation:____________________________________________________________________________________________.

The telephone number for the above address is (___) __________. In the alternative, you are required to vacate and deliver possession

(keys) of the premises to Owner/Agent, within three days after service of this notice upon you.

Additional Instructions:

______________________________________________________________________________________________________________

______________________________________________________________________________________________________________

______________________________________________________________________________________________________________

If you fail to either pay the amount of rent demanded in this notice or to vacate and deliver the premises to the person designated above within

three days, the undersigned will commence legal proceedings against you to (1) declare a forfeiture of your lease agreement, (2) recover

possession of the premises, (3) recover the rent demanded herein, due for the periods covered by this notice, and (4) recover damages for each

day that you occupy the premises after the periods covered by this notice (plus statutory damage) and costs of suit including attorney’s fees.

If you decide to vacate, state law permits former tenants to reclaim abandoned personal property left at the former address of the tenant, subject to

certain conditions. You may or may not be able to reclaim property without incurring additional costs, depending on the cost of storing the property and

the length of time before it is reclaimed. In general, these costs will be lower the sooner you contact your former landlord after being notified that

property belonging to you was left behind after you moved out.

Further, if you fail to timely pay the amount demanded by this notice, the undersigned declares the forfeiture of the lease agreement under which you

hold possession of the premises.

Owner/Agent:

_____________________________________ Date___________________

Date Served

OR QUIT AND DELIVER THE POSSESSION OF THE PREMISES

If you fail to perform or otherwise comply, Owner/Agent declares the forfeiture of your Lease/Rental Agreement and will institute Unlawful Detainer legal

proceedings to obtain possession. Such proceedings could result in a judgment against you, which may include attorney’s fees and court costs as allowed by law. If

the Court determines that you have maliciously withheld the payment of rent, it may award an additional punitive award of six hundred dollars ($600) in accordance

with California law.

You are responsible for ensuring that the Owner/Agent actually receives your full payment in legally sufficient funds within the 3‐day time period. Once the 3 days

have expired, the Owner/Agent is not required to accept your payment and may proceed to file an Unlawful Detainer lawsuit without further notice. This Three‐Day

Notice to Pay Rent or Quit supersedes all previous Three‐Day Notices to Pay Rent or Quit, if any.

Credit Warning: If an Unlawful Detainer lawsuit is filed against you, it could result in a judgment against you that may include monetary amounts, attorney’s fees and

other court costs permitted by law. After a lawsuit is filed with the Court, it is a public record and may later appear on your Credit Report or have a negative impact

on your credit even if no judgment is entered against you or the case is later dismissed. Therefore, you are notified that a negative credit report reflecting on your

credit history may be submitted to a credit reporting agency if you fail to fulfill the terms of your credit obligations. This could seriously affect your ability to obtain

credit, including rental housing in the future so govern your actions accordingly.

Three Day Notice to Pay or Quit

California Civil Code § 1161, 1785.26,& 1174,

Form 400 © 2013 Page 1 of 1

The unauthorized copying, duplicating, downloading, display or any other use of this form is not permitted.

This form does not constitute legal advice. For legal advice, please consult your attorney.

Resident(s):

and All Unnamed Occupants.

Owner/Agent:

Leased Premises:

Unit #:

City:

State:

Zip:

Within THREE DAYS after the service on you of this Notice, you are hereby required to PAY to Owner/Agent the rent for the premises

amounting to the total sum of $

calculated as follows:

$


/ /

through /

/

$


/ /

through /

/

$


/ /

through /

/

Within three days after service of this notice upon you, the total overdue rent payment, in the amount stated above, must be made by cash,

check or Certified Funds payable to

, and must be delivered to the following address:

_________________________________________________________________________________________________________. Days

and time of operation:____________________________________________________________________________________________.

The telephone number for the above address is (___) __________. In the alternative, you are required to vacate and deliver possession

(keys) of the premises to Owner/Agent, within three days after service of this notice upon you.

Additional Instructions:

______________________________________________________________________________________________________________

______________________________________________________________________________________________________________

______________________________________________________________________________________________________________

If you fail to either pay the amount of rent demanded in this notice or to vacate and deliver the premises to the person designated above within

three days, the undersigned will commence legal proceedings against you to (1) declare a forfeiture of your lease agreement, (2) recover

possession of the premises, (3) recover the rent demanded herein, due for the periods covered by this notice, and (4) recover damages for each

day that you occupy the premises after the periods covered by this notice (plus statutory damage) and costs of suit including attorney’s fees.

If you decide to vacate, state law permits former tenants to reclaim abandoned personal property left at the former address of the tenant, subject to

certain conditions. You may or may not be able to reclaim property without incurring additional costs, depending on the cost of storing the property and

the length of time before it is reclaimed. In general, these costs will be lower the sooner you contact your former landlord after being notified that

property belonging to you was left behind after you moved out.

Further, if you fail to timely pay the amount demanded by this notice, the undersigned declares the forfeiture of the lease agreement under which you

hold possession of the premises.

Owner/Agent:

_____________________________________ Date___________________

Date Served

OR QUIT AND DELIVER THE POSSESSION OF THE PREMISES

If you fail to perform or otherwise comply, Owner/Agent declares the forfeiture of your Lease/Rental Agreement and will institute Unlawful Detainer legal

proceedings to obtain possession. Such proceedings could result in a judgment against you, which may include attorney’s fees and court costs as allowed by law. If

the Court determines that you have maliciously withheld the payment of rent, it may award an additional punitive award of six hundred dollars ($600) in accordance

with California law.

You are responsible for ensuring that the Owner/Agent actually receives your full payment in legally sufficient funds within the 3‐day time period. Once the 3 days

have expired, the Owner/Agent is not required to accept your payment and may proceed to file an Unlawful Detainer lawsuit without further notice. This Three‐Day

Notice to Pay Rent or Quit supersedes all previous Three‐Day Notices to Pay Rent or Quit, if any.

Credit Warning: If an Unlawful Detainer lawsuit is filed against you, it could result in a judgment against you that may include monetary amounts, attorney’s fees and

other court costs permitted by law. After a lawsuit is filed with the Court, it is a public record and may later appear on your Credit Report or have a negative impact

on your credit even if no judgment is entered against you or the case is later dismissed. Therefore, you are notified that a negative credit report reflecting on your

credit history may be submitted to a credit reporting agency if you fail to fulfill the terms of your credit obligations. This could seriously affect your ability to obtain

credit, including rental housing in the future so govern your actions accordingly.


SDCAA White Papers

Smart insight to industry issues and practices that

help you comply with the law and learn best

practices.

Log in to your RHC account today and

download the White Papers!

WhiteFiles

• City of San Diego Recycling Info Packet

• County of San Diego Recycling Ordinance

• Craigslist Tips Paper• Dealing with the

Death of a Tenant• Dept of Energy Water

HeaterEfficiencyStandards

• Do Not Track Disclosure Law (AB 370)

• Domestic Violence in Rental Housing

• Mandatory Recycling at Multi-family Properties

• Mini-dorm Fact Sheet

• NMHC - Music Licensing

• Plumbing Requirements

• Pool Safety and Maintenance Requirements - effective Jan. 1, 2015

Other topics availabeonline!

deliver a copy of the notice to the tenant personally. Landlords usually first attempt personal service at the residential rental unit. If unable to serve personally at home, an attempt to personally serve at the tenant’s place of employment must be made. If the place of employment is not known to the landlord, it is obviously not possible to obtain service at work and is therefore not required.If personal service cannot be obtained at the tenant’s home or work, a copy can be left with a person of suitable age and discretion at either the home or work and sending a copy by regular U.S. Mail addressed to the tenant at the home or business address. While the code is silent on this issue, any notice left at or mailed to the tenant’s place of employment should be in an envelope addressed to the tenant and marked on the outside of the envelope as “Personal and Confidential.”

If unable to either serve personally or by leaving at home or work with a person of suitable age or discretion and mailing, the notice may be served by posting in a conspicuous location and mailing to the tenant at the at issue property.

By following these steps, the landlord will obtain legal service of the notice. There are now many attorneys who regularly represent residential tenants in unlawful detainer actions. Very often there is no substantive defense to the unlawful detainer cause of action. Even when it is clear that the tenant has a substantive defense, many judges will rule in favor of the tenant if a technical defect is brought to the attention of the court by the tenant’s attorney . Serving notices in strict compliance with CCP Section §1162 will eliminate potential arguments as to improper service.

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For those employers who have employees who work outside or in a work environment that is subject to high temperatures, you need to be aware of new major changes to the California’s heat illness prevention regulations that will go into effect on May 1, 2015. In summary:

• Under current regulations, employers must make available one quart of water (at least) per hour, per employee. The water must be “fresh, pure, suitably cool and free”. A new requirement is that the water must be as close as practicable to the employee’s immediate work area.

• Shade must be provided. Temporary shade such as a canopy is acceptable and the employee must be allowed the opportunity to cool off in the shade for at least five minutes anytime they feel that a “recovery period” is required. Shade is required if temperatures rise above 80 degrees but is still required if temperatures are below 80 degrees but the employee requests a recovery period in the shade. New to this requirement is that the shade must be large enough to accommodate all of the employees on a cool-down period and/or rest break as well as large enough to accommodate the number of employees who remain onsite for meal periods.

OUTDOOR WORKERS? YOU NEED TO REVIEW AND UPDATE YOUR POLICIES NOW: NEW Heat Illness Prevention RequirementsBy Jennifer Jacobus, PHR-CA San Diego Employers Association


• Recovery periods are designed to prevent heat illness. Cal/OSHA regulation 3395(d)(3) states that "employees shall be allowed and encouraged to take a cool-down rest in the shade for a period of no less than five minutes at a time when they feel the need to do so to protect themselves from overheating. Such access to shade shall be permitted at all times." New language to the regulations require that the employee must be monitored and asked if they are experiencing any heat illness symptoms; must be encouraged to stay in the shade; must not be ordered back to work until they have had at least five minutes (net) resting time; and must not be ordered back to work “until any signs or symptoms of heat illness have abated”. Employers must be able to provide first-aid or implement emergency response procedures when necessary.

• Employers in industries that include agriculture, construction, landscaping, oil and gas extraction and transportation, delivery of agricultural products, construction materials or other heavy materials must have high-heat procedures (95 degrees). Newly added to the “high-heat” requirement is that when the temperature reaches 95 degrees the employer must conduct “pre-shift” meetings, with pay. The meetings need to include information on high-heat procedures, reminders to drink plenty of water and to remind

employees to take their cool-down periods.

• The employer must also monitor signs of heat illness during the day by any “effective means of observation”.

• The employer is now required to designate at least one employee at each worksite as the person authorized to call for emergency medical services.

• For those employers with agricultural employees, when the temperatures reach or exceed 95 degrees, employers are required to ensure that the employees take a 10-minute cool-down period every two hours. The 10 minutes can be combined with meal and rest periods.

• During a heat wave (defined as any day in which the predicted high temperature for the day is at least 80 degrees and at least ten degrees higher than the “average high daily temperature preceding five days) a supervisor or designee must closely observe all employees at the worksite.

• The revised regulations now require that all employees at a worksite be able to contact a supervisor or summon medical services if experiencing heat illness symptoms. If an onsite supervisor observes or receives a report of heat illness symptoms, immediate action such as offering first aid or other medical services, must be required. An employer

must be able to transport an affected employee to a location where they can be reached by a medical provider or be able to offer clear directions to the worksite. Using a cell phone or other mobile device for calling or texting is considered “effective communication” only if reception in the work area is reliable.

• Both supervisors and employees must be provided with training on prevention, detection, and appropriate responses to possible heat illness. Specific topics would include: drinking plenty of water, personal risk factors such as weight and fitness, and company policy regarding potential heat injuries.

Training needs to be done for both employees and supervisors that should include topics on the availability of water, shade, cool-down breaks and first aid; impermissible retaliation; the concept of acclimation, the importance of acclimation and the acclimation procedures included in the employer’s plan; appropriate first aid/emergency responses; and heat illness symptoms from mild to serious and how these symptoms may progress quickly.

Employers who are affected by this would be wise to closely review your current policies and training procedures to ensure that they are ready for the May 1 changes and the upcoming summer months.


Local Water Agencies rush to figure out how to respond to new water cutsNew drought rules are now in effect in all water districts in Riverside and San Bernardino Counties as of June 1. Each district must cut their water use from 12 to 36 percent and the new rules will remain in effect through February 2016. In May, the California Water Resources Control Board approved new water regulations on all water districts across the state. The mandates comply with Governor Jerry Brown’s executive order requiring all water districts to decrease their water consumption by 25 percent of 2013 levels.

Like many other water districts across the state, local districts have criticized the State Water Board’s order – so far, one jurisdiction filed a lawsuit contesting the state’s order. While many districts agree with the need to reduce water consumption by 25 percent, they disagree with the State Water Board’s manner of achieving the 25 percent reduction. Some districts like the Coachella Valley Water District have invested millions of dollars to improve local water supplies and reduce their water usage. Likewise, many residents and businesses have invested a lot of money to reduce their water consumption over the past few years. Local water districts and customers alike state it will be difficult to comply with the state order. The City of Riverside just filed a restraining order against the state contending that the supply of water it receives from

groundwater should be applied to its reduction target – a request that was denied by the State Water Board.

With each district receiving a different reduction target, districts are imposing their own set of rules – be sure that you know the specific rules in your area. Water districts like Coachella Valley and Rancho California Water Districts that received the maximum 36 percent reduction have adopted ‘Stage 4b’ drought regulations. For now, water districts will continue to issue water meters for new development, but that could change if the drought gets worse. Most, if not all, rules from the water districts prohibit new developments from using potable water for irrigation; all customers must reduce their outdoor irrigation by 50 percent and limit watering to 2 days a week or less; no water is permitted to run-off the property into sewer; and, customers are encouraged to replace lawns with artificial turf or drought tolerant landscaping. Customers are also asked to cut their indoor use by saving excess water used during showering or washing, and installing water smart fixtures and toilets. Customers caught violating the new rules could face stiff fines and water districts that do not meet their targets can be fined up to $10,000/day. Water districts have eliminated tiers in their rate structure, meaning customers that use too much water could see their water bills increase significantly.

RHC Members can download the RHC Water Conservation Information Packet by visiting RHC’s webpage at http://

RHC Local Issues

• Local water agencies rush to figure out how to respond to new water cuts

• Riverside County holds public hearings on the next housing element

• Riverside Housing Authority warns about possible scams

• Riverside County seeks Property Owners for 25 Cities Initiative

By Molly Kirkland, Director of Public Affairs


rhcsoriverside.org/ and logging in the Members Only Portal. The information packet is in the White Papers hyperlink under the ‘Quick Links’ tab. The SDCAA-RHC strongly encourages its members to conserve water, and share the information with your employees and residents.

Riverside County holds public hearings on next Housing ElementThe Riverside County Housing Authority held a series of workshops open to the public on the County’s draft Housing Element to the County’s General Plan. The workshops give residents and other interested parties an opportunity to comment on the draft housing element.

The state requires local governments to update their elements to help cities and counties plan and determine where to place its future housing. Under the 2013-2021 Housing Element, the county must identify 1,000 acres (1,700 parcels) of land for the development of high density, subsidized, and mixed-use development.

The County’s next steps is to release its ‘Notice of Preparation’ and the new maps showing the prospective sites selected for re-designation and rezoning – the sites will be on the Riverside County Planning Department’s website later this month. The draft EIR and Housing Element will be available for public comment for 60 days starting in September. The County Planning Commission

is expected to vote on the element in December and be voted on by the Board of Supervisors in January 2016. For more information or if you would like to comment on the element, please contact Bill Gayk, at (951) 955-8514, or [email protected].

Riverside Housing Authority warns about possible scams Riverside County’s Housing Authority asks residents and property owners to be aware of potential scams and to protect your personal information at all times. The Housing Authority urges people, if they are contacted by people posing as Housing Authority staff, not to provide any personal or financial information such as social security numbers, PIN numbers, credit or debit card account information, etc. The Housing Authority stresses that staff will never request personal or financial information, or charge fees on people who want to participate in their housing programs. The agency asks people to contact the agency directly if they have any questions, at (951) 351-0700 or (760) 863-2828. Or, visit the Riverside County Housing Authority Website at http://www.harivco.org/ for more information or other housing programs.

Riverside County seeks Property Owners for 25 Cities InitiativeThe Housing Authority is partnering with the 25 Cities Initiative to find rental property

owners willing to participate in their program – the County is recruiting property owners to provide spare rental units to house individuals currently in the program.

The county is holding a rental fair on Thursday, June 18th from 12:00 pm – 4:00 pm in Fairmount Park. There will be a Landlord Orientation at the fair from 12-1 pm for owners who want to learn about housing programs. Owners may contact Carol Singh at (951) 343-5417 or [email protected] for more information.

To learn more about the Riverside County Housing Authority’s programs, visit its website at http://www.harivco.org/.

Water Conservation

Packet available at

www.rhcsoriverside.org


I know you are as shocked as I am at the behavior of our Congress before they left for

their spring break recess. Just when you thought they could do nothing more to surprise us, to stop us in our tracks, to make us question all that we know and thought we understood about our legislative process, they do something crazy. They actually brought up, debated and voted on legislation! But wait, there’s more! The House actually passed a

solution to one of the toughest issues they have avoided for years – the Medicare payment standard for doctors – and it appears the Senate will follow suit in just a few weeks.

I’m reminded of the scene from “A Few Good Men” where Tom Cruise, an attorney who prefers to negotiate plea agreements rather than actually try cases, steps into where his clients will be tried and says, “So this is what a courtroom looks like!” There are members of Congress who really don’t know what the legislative process is supposed to look like since it’s never actually been used during their tenure. Let’s hope this is the start of a new normal for our political leaders.The apartment industry also benefitted from this great

awakening in the political process. Two bills of significant importance were passed by one of the two chambers; critical steps toward ultimately becoming law. In the House, the “Tenant Income Verification Relief Act of 2015” was passed under suspension of the rules, meaning that the support was so strong that only a voice vote was necessary. This legislation would reduce the administrative burden under the Section 8 Housing Choice Voucher program by requiring income verification every three years instead of annually for voucher holders who are on fixed incomes. Miraculously, this bill has the support of both property owners and tenant activists and we hope that an equally quick path can be found in the Senate.

In the Senate, the “Energy Efficiency Improvement Act” (also known as “Tenant Star”) passed the Senate by voice vote at the very end of a marathon debate on the federal budget and immediately before the chamber adjourned for the spring break recess. This legislation directs the EPA to create an incentive similar to its Energy Star program for use by tenants in commercial real estate. This marks the first time the issue of split incentives in energy efficiency between building owners and tenants has been addressed.

The 2015 NAA Capitol Conference also took place this past month and the apartment industry once again showed its power and broke all previous records for lobby day participation. Four hundred owners, operators, property managers, C-suite

THE

By Greg Brown, Vice President of Government Affairs, NAA


executives, suppliers and affiliate staff stormed the Hill and lobbied Congress on enhancements to the Section 8 program, reform of the nation’s tax system and needed federal leadership on immigration. An estimated 250 to 300 Congressional offices were visited over the course of the day which is an impressive show of force for any industry. It’s worth noting that the Tenant Income Verification Relief Act mentioned above and passed by the House was a specific bill on which the apartment industry lobbied during the Capitol Conference. Grassroots advocacy works!

Of course, we will wait to see if this new found collegiality leads to other legislative successes for the Congress. There are plenty of hills left to climb, some symbolic, some substantive. For example, the House and Senate Republicans will have to reconcile the differences between their two budget blueprints. The budget has no force of law but does guide the activities of the appropriations committees and so issues like how much to spend on defense versus how much to sacrifice to the national debt reduction gods will be at the forefront. On the other hand, the nation’s debt limit is a real thing. We actually reached our borrowing limit in early March, but the Treasury Department has several measures it can take to keep us afloat for several more months. Still, this cannot go on forever and Congress will have to increase that limit at some point in the very near future.

One issue with a firm deadline

is the Highway Trust Fund. This is the pot of money that is used to pay for federal and state infrastructure – roads, bridges, rail, ports and a lot more – and it runs out on May 31. Congress needs to agree on how to replenish the fund – increase the gas tax, place a one-time levy on untaxed foreign earnings or as part of broader tax reform. It also needs to find a way to get a long-term

deal in place to increase the certainty in the system. This will not be easy and will be the

next major test of the

ability of

Congressional leaders to thread the needle and move critical legislation that the country desperately needs. They will almost certainly face challenges from those in the GOP who are drawing a hard line on any federal government spending.

executives, suppliers and affiliate staff stormed the Hill and lobbied Congress on enhancements to the

Section 8

program,

reform of the nation’s tax

system and

needed federal

leadership on immigration. An estimated 250 to 300 Congressional offices were visited over the

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course of the day which is an impressive show of force for any industry. It’s worth noting that the Tenant Income Verification Relief Act mentioned above and passed by the House was a specific bill on which the apartment industry lobbied during the Capitol Conference. Grassroots advocacy works!

Of course, we will wait to see if this new found collegiality leads to other legislative successes for the Congress. There are plenty of hills left to climb, some symbolic, some substantive. For example, the House and Senate Republicans will have to reconcile the differences between their two budget blueprints. The budget has no force of law but does guide the activities of the appropriations committees and so issues like how much to spend on defense versus how much to sacrifice to

the national debt reduction gods will be at the forefront. On the other hand, the nation’s debt limit is a real thing. We actually reached our borrowing limit in early March, but the Treasury Department has several measures it can take to keep us afloat for several more months. Still, this cannot go on forever and Congress will have to increase that limit at some point in the very near future.

One issue with a firm deadline is the Highway Trust Fund. This is the pot of money that is used to pay for federal and state infrastructure – roads, bridges, rail, ports and a lot more – and it runs out on May 31. Congress needs to agree on how to replenish the fund – increase the gas tax, place a one-time levy on untaxed foreign earnings or as part of broader tax reform. It also needs to find a way to get a long-

term deal in place to increase the certainty in the system. This will not be easy and will be the next major test of the ability of Congressional leaders to thread the needle and move critical legislation that the country desperately needs. They will almost certainly face challenges from those in the GOP who are drawing a hard line on any federal government spending.

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www.sdinfolink.comor call 858.278.8070 or

e-mail [email protected]

An SDCAA product powered by MOCO


CaliforniaCAPITOL NEWS

An insiders view to California Rental Housing Industry Politics and Government

By Aaron Read & Associates, LLC

The last four weeks have been a busy time in Sacramento. With bill

deadlines approaching the Legislature heard the majority of the 1600 plus bills introduced this year during this four week time frame, including bills affecting SDCAA and the rental housing industry.

SB 364 – SDCAA Oppose - As was the case last year, Senator Leno’s Ellis Act bill, SB 364 (a bill SDCAA opposes) was heard in the Senate Transportation and Housing Committee during SDCAA’s legislative day. This bill is nearly identical to Senator Leno’s Ellis Act bill from last year. SB 364 significantly amends the Ellis Act and creates a host of challenges for rental property owners and their families.

• It Changes the Rules for Owners Who Purchased Within the Last Five Years: SB 364 retroactively applies to property owners who purchased their property within the last 5 years.

• Forces Property Owners into Bankruptcy: If SB 364 becomes law, rental property owners may no longer be able to sell a property, even if they are losing money every month.

• Prevents Small Owners from Moving into Their Own Homes: SB 364 would prevent owners and families who own small rental buildings from moving into their own units.

• Reduces the Value of Rental Property: By limiting the ability of owners and buyers to sell or convert their properties, SB 364 significantly reduces the value and marketability of a property.

• Sharp Decline in the Use of the Ellis Act in 2014-2015: According to a San Francisco Residential Rent Stabilization Board, in the

fiscal year 2014-2015, there has been a huge decline in the number of owners who have relied upon the Ellis Act. In a city with over 218,000 rental units, that amounts to 0.015% of all rental units.

After intense lobbying by SDCAA and other apartment associations, SB 364 fell one vote short and was held in committee. It was granted reconsideration and we are waiting to see if he will hear the bill again in committee. He has until May 15th. If he elects not to hear it AB 364 will become a two-year bill. This, however, does not mean the issue is dead. Senator

AaronRead&Associates

Aaron Read

Pat MoranJennifer TannehillTerrance McHale


Leno still can gut-and-amend a Senate bill in the Assembly later in the year so, while we are looking good, nothing is ever over until session ends.

SB 655 (Mitchell) – SDCAA Oppose - SB 655 would add mold to the conditions that make housing substandard. It makes housing substandard if there is “any visible or otherwise demonstrable mold growth, excluding the presence of mold that is caused by inappropriate housekeeping practices or improper use of natural or mechanical ventilation.”

SDCAA believes that SB 655 overreaches and does not provide a workable standard for code enforcement or for property owners who want to stay in compliance. Also, the reference to “any visible mold” is inconsistent with the existing substandard housing code sections, which require that a listed condition must exist to an extent that it endangers health. There is no standard relative to how much mold endangers health. At the same time, the terms “inappropriate housekeeping practices” and “improper use of natural or mechanical ventilation” are too vague to be enforceable.

The California Department of Public Health strongly recommends that property owners address water damage and dampness. However, the department recommends against using mold to determine the level of health hazard or the need for urgent remediation. The definition of substandard housing already includes “dampness of habitable

rooms.” Mold cannot exist in the absence of moisture.

Unfortunately, SB 655 will elevate mold to the top of the eviction-delays list. Tenants will use this as the number one reason when they fight a nonpayment-of-rent eviction. Because rental property owners cannot perform random inspections of the unit any time they want, it is during the eviction process, that most rental property owners hear there is a problem with the unit.

Bottom line, given that conditions related to general dilapidation, improper maintenance, and anything injurious to health already exists in law, the inclusion of mold in the code is unnecessary and unreasonable. The bill was heard in the Senate Transportation and Housing Committee on April 21st. While the bill passed with bipartisan support, it was only after Senator Mitchell agreed to work with the opponents on issues apartment association’s raised in committee. We will keep you posted.

AB 396 (Jones-Sawyer) – SDCAA Opposed - will prohibit the use of criminal background checks by rental property owners. After engaging the author and his staff, Assembly Member Jones-Sawyer amended the bill. It no longer prohibits the use of criminal background checks, but it does make it unlawful for the owner of any rental housing accommodation to deny the rental or lease of a housing accommodation without first satisfying specified requirements relating to the application process.

As amended, it now establishes a new screening process for rental property owners to follow if they utilize criminal background information in their application process.

• AB 396 would prohibit a rental property owner from disclosing up front to all applicants that certain criminal convictions may disqualify them. The owner could not provide this information, or ask any questions about criminal history, until after the “initial application assessment phase,” then run the criminal background check.

• AB 396 then requires rental property owners to wait 14 days after “tentative denial” to give the ex-offender applicant a chance to explain his/her record.

• The owner must then delay the process further thereafter for a “reasonable period” in order to reconsider the applicant.

• Once the ex-offender has provided the explanation, the owner is required to make an “individualized assessment of the criminal record” and “the evidence of rehabilitation and mitigating factors” to determine if the applicant has an “unacceptable criminal record” to decide whether to accept or deny the applicant.

SDCAA remains opposed to the bill and testified in opposition to it when the bill was heard in the Assembly Housing Committee. Despite vigerous opposition form opponents, the bill passed, however not before Assembly Member Jones-Sawyer agreed to


work with us on amending the bill. Until SDCAA’s concerns are addressed, we will remain opposed to the bill.

Split- RollIn 1978 voters approved Prop 13 by a 65% vote to protect property owners from drastically increasing property taxes that had threatened the existence of small business and the ability of families to stay in their homes. Prop 13 has provided a stable, consistent, and growing revenue stream for local government and the state.

Last year there were several bills introduced seeking to amend Proposition 13. Specifically the intent was to enact a “split-roll” for Prop 13, removing tax limits on business property – residential property taxes would not be affected. SDCAA opposed those bills and worked with a coalition of other like-minded groups to help defeat them.

When the 2015-16 legislative session began we expected to see a similar bill introduced, however, as the bill introduction deadline came and went, no “split-roll” legislation was introduced. Now we know why. The group, Make It Fair, headed by the California Teachers Association (CTA) and the Service Employees International Union (SEIU) and several churches are seeking to qualify an initiative for the 2016 November ballot.

As we understand it, the measure would remove Proposition 13 limits on commercial property (as they define it) that includes industrial, retail and office complexes while leaving the

limits in place for owner occupied homes, residential rental property and agricultural land.

Of course there will be stiff opposition to this campaign to revise Proposition 13, most notably from a business-backed coalition called Californians to Stop Higher Property Taxes. It counts among its members the following (partial list):

• Building Owners and Managers Association of California

• California Association of Realtors

• California Business Properties Association

• California Business Roundtable • California Chamber of

Commerce • California Council National

Association of Industrial and Offices

• California Taxpayer Protection Committee

• California Taxpayers’ Association

• California Restaurant Association

• Central Coast Taxpayers Association

• Commercial Real Estate Development Association (SoCAL Chapter)

• Contra Costa Taxpayers Association

• Fullerton Chamber of Commerce

• Glendale Chamber of Commerce

• Howard Jarvis Taxpayers Association

• International Council of Shopping Centers

• Los Angeles Area Chamber of Commerce

• Montclair Chamber of Commerce

• National Federation of Independent Business, California

• Orange County Business Council

• Palm Desert Area Chamber of Commerce

• Retail Industry Leaders Association

• San Diego Tax Fighters • Santa Clara Chamber of

Commerce • Silicon Valley Taxpayers

Association • Small Business Action

Committee • Southwest California

Legislative Council • Sutter County Taxpayers

Association • Valley Industry and Commerce

Association -

The timing of the proposed initiative has not been lost on some. Some speculate that Make It Fair is using this to leverage the business community into supporting extending the Proposition 30 taxes approved in 2012 that are set to expire shortly.This is a complicated maneuver. Since voter turnout will be higher in 2016, as it is a presidential election year, proponents may feel this is the time to strike considering the turnout will probably be more democratic and tax friendly.

However, there are other tax proposals being bandied about; one for higher cigarette taxes and a possible oil extraction tax also, 2016 will be a crowded ballot. The number of signatures need to qualify an initiative is considerably lower as a result of the dismally low voter turnout in 2014, so the cost to qualify an


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initiative will be lower too. If the ballot is too crowded with tax increases and other confusing and competing initiatives, voters tend to reject them.

It will be interesting to watch this play out in the coming months ahead


The journey starts in the highest capital city in the world, Quito, Ecuador. Perched 9,350 ft. at the base of the Andes, this is the perfect place for exploration into the surrounding highlands of the Imbabura province with its stunning lakes and outstanding beauty. We’ll also explore the Antisana Volcano

area before we descend into the Pastaza river canyon with its abundance of waterfalls.

Cuenca-Unesco Heritage SiteWe’ll discover the incredible UNESCO World Heritage town of Cuenca, which stuns travelers with its beautiful 500-year-old architecture. We’ll live the history at Ingapirca Fortress, the most important Inca ruins in Ecuador and travel to the coast to experience the bustling city of Guayaquil. Spending multiple nights in most locations, our home will often be thematic and beautiful hacienda-style hotels. When it could not get any better, a quick flight from Guayaquil finds us in the Galapagos Islands.

Touring the IslandsThere, on the coast of the Galapagos Island of San Cristobal, is the 191-foot yacht, Evolution. Its gleaming decks and vintage lines announce its position as one of the top yachts in the Galapagos with one of the most experienced ©

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Galapagos & EcuadorMake your holiday's a life changing experience. Join fellow rental owners and managers on a trip of a lifetime.

Tour dates: March 5-20, 2016

An SDCAA Partner Program

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© Michael Muller | Dreamstime.com


expedition companies in the region, celebrating 29 years. With top-level naturalist guides, we’ll visit the islands of South Plaza, Mosquera, Santiago, Genovesa, North Seymore, Sante Fe, Floreana, Santa Cruz and Baltra. As a full sea-going yacht, we’ll reach the outer islands that the smaller catamarans and day boats can’t visit.

In March, the water is the calmest of the year and also the warmest (72 degrees), ideal for snorkeling and kayaking, all which is included. Between wonderful meals including alfresco dining and relaxing sundowners on the intimate back deck, we’ll have a packed schedule of expedition experiences, such as Zodiac boat landings with our naturalists. The yacht moves twice a day, maximizing the islands visited and animal encounters. Don’t wait if you wish to join us for this once-in-a-lifetime tour.

For more information on this very inclusive adventure, Visit StewartTours.com or Call 1.866.944.3036.

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The San Diego County Apartment Association,The Rental Housing Coalitions of South Riverside County

and Desert Cities and

Present the 29th Annual Charity Golf Classic

SDCAA Charity Golf Classic participants look forward to the stunning bay views and gorgeous greens in Coronado. Come join us for a full day of golfing, networking and reconnecting with friends and

colleagues from the multi-family housing industry in Southern California!

DATEThursday, September 24, 2015

VENUE

Coronado Municipal Golf Course200 Visalia Row, Coronado CA 92118

TIMELINE10:30 a.m.

Check in, Putting Contest, Driving Range and Lunch

12:00 p.m.Shotgun Start

6:00 p.m.Tournament Play Ends

6:15 p.m.Reception and Dinner

COST(Includes green fees, cart, lunch, dinner & sponsor gift)

FOURSOME$899 Members/$949 Non-Members

Individuals

$250 Members/$280 Non-Members

Additional MealsLunch

Golf Committee Members: $15Additional Sponsors: $20

Dinner

Golf Committee Members: $38Additional Sponsors: $45

REGISTER TODAY!Only available online at www.sdcaa.com under the “Events” tab!

Questions?

Call 858-751-2219 or Email: [email protected]

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