You are currently browsing the archives for the Apartment News Magazine category.

Archive for the ‘Apartment News Magazine’ Category

President’s Message

 :: Posted by vcopeland on 05-22-2013

“Sausage Making” in Sacramento

19th century Prussian statesman, Otto von Bismarck, was the clever original author of the now oft repeated quote, “Laws are like sausages.  It’s better not to see them being made”. 

It’s a hilarious comment of epic proportions and certainly apt as to the sausage analogy part.

But while Bismark’s suggestion that sausage making is a turn off is a no brainer – hey, I just wanna enjoy my hot dog at the game, don’t need particulars on what’s in it –  I cannot concur that law making in the US is somehow gross.   In a democracy, the making of law, by definition, is a thing of beauty.  Flawed, by all means; corrupted, no doubt.  But nonetheless a magnificently evolved manifestation of humanity and civilization.

And thus, notwithstanding Bismark’s warning, a delegation from the Apartment Association of Orange County  journeys to Sacramento each year to partake of and participate in “Legislative Day” and get a first hand look inside “where the sausage is made”.   The delegation this year was composed of five members of AAOC’s legislative committee, plus our Executive Director and our Sacramento lobbyist.

Leg Day, which took place April 17th this year, is about jumping into the process.  It’s about interfacing with the lawmakers that crank the legislative machine.

But there is some strategy to Leg Day participation.

Specifically, this year AAOC elected to focus on four bills only…that’s four out of over 2,000 that will be introduced this legislative season between the Assembly and Senate.

With this agenda in hand the AAOC contingency moved from one Leg Day meeting to the next ultimately  connecting with nine legislators, all of whom had districts within or partly within Orange County.  Six were Republican, three were Democrat.  We were accorded about fifteen minutes with each.  That’s three to four minutes each for the four bills selected.  Definitely prioritizes being direct and concise.

Interestingly, in most cases the legislators will know almost nothing about the bills you come to discuss.

But just imagine trying to be familiar with 2,000 bills.  It’s daunting and, of course, impossible.

The good news is that in the typical situation where an elected official has minimal “intel” on a bill, there’s a prime opportunity to make a sizeable imprint on his or her understanding.

The four bills that made AAOC’s short list this Leg Day (and our positions on each) are:

  1. AB 969 (Ammiano) – Warranty of Habitability Defense (oppose)
  2. AB 1229 (Atkins) – Rent Control on Newly Constructed Housing (oppose)
  3. SB 603 (Leno) Interest on Security Deposits (oppose)
  4. SB 750 (Wolk) Water Submetering (oppose)

Board members, staff and lobbyists from the other National Apartment Association affiliates located in California were also out in force on Leg Day.  There are now eight NAA affiliates in California of which AAOC is one.  Coordination among these NAA affiliates on bills that will impact rental housing legislation is obviously important.

To that end AAOC has taken a leadership role among the eight NAA affiliates in California.  John Tomlinson, AAOC’s immediate past president, has been an effective leader in bringing these affiliates toward collective consensus on important rental housing issues.

At this year’s pre-Leg Day meeting with all eight of the California affiliates, attendance was up 25% from 2012, thanks in part to Tomlinson’s efforts to effectuate cohesion.  The more unified the voice among regional apartment associations within the state, the greater the potentiality to affect outcomes at the capital.

In the final analysis, getting a law on the books is an arduous task, as it should be.  Unlike sausage making though, the production of laws in most US jurisdictions is nuanced and complex.  AAOC has great respect for this process and will continue to work within it to preserve and protect private property rights in Sacramento and elsewhere.

PSC Corner – DirecSupply

 :: Posted by vcopeland on 05-22-2013

COMPANY OVERVIEW:

DirecSupply provides renovation and new construction products to the multi-family housing industry.

DirecSupply (DS) was established in 2006 to provide outstanding customer service and project management support for multi-family housing. DS offers a “New Century” level of support that will help make your renovation project successful. Our highly trained project managers and staff will assist you step by step from the walk through to the product delivery assuring your projects are accurate, on time and on budget. We have a very successful business model, which has been embraced at the national and property level in the multi-family housing industry in the Mid-West, and East Coast. With that success and overwhelming positive response, we have now expanding into the Southern California market.

Each member of the team is here to serve you and help make your renovation projects a success. In addition to the outstanding customer service, we offer the most aggressive pricing todays industry can offer.  The business model that DirecSupply uses includes-

  • Your project will be thoroughly walked and measured based on your renovation needs and desires.
  • Your products will arrive either by bulk or packaged together by unit based on your projects time frame.
  • Your invoices can be tailored to your billing process, ie. ( unit, invoice date, billing codes)

DirecSupply offers a highly competitive bid package through global sourcing; the very latest product designs and trends are stocked in large project quantities available for immediate single source shipment. DirecSupply takes great pride in our advanced methodologies in product kitting and accuracy of deliveries. We do it right the first time. We look forward to the opportunity to know and serve you.

OUR MISSION:

DirecSupplys’ primary mission is to insure customer success and satisfaction in their efforts to enhance the multi-housing renovation and redevelopment industry.

DirecSupply is committed to provide the best in service, product quality and product availability. Great results will allow the customer to recognize and appreciate DirecSupply as the preferred source and partner in their business.

OUR METHODOLOGY:

  1. Job/Project Management – Every customer will have a personal job/project manager to rely on.
  2. Product Choices – The customer will have latest style product choices that satisfy the project/end client.
  3. Product Cost – The customer will realize best value/cost for product choices for their job/project.
  4. On Time Delivery – Deliveries to the customer will be made on time and complete as expected.
  5. Product/Project Kitting – The customer will receive innovative packaging/kitting techniques for efficient product handling and project support.

Southern California Sales Team:

Janet Hubbell- Regional Area Manager- 323-213-6021 Bill Thornburg- Sales Support/Estimator

Joan Heinmiller- 714-728-7090                                  Marisa Bentley- 951-283-2799

Deanna Higuera- 818-941-7259                                    Diane Avalos- 714-376-2997

www.direcsupply.com

Sacramento Report

 :: Posted by vcopeland on 05-22-2013

An AAOC leadership team met in Sacramento on April 17 with fellow leaders from other regional associations to meet with their legislators on important bills affecting the rental housing industry.  Led by AAOC President Nick Lieberman and Legislative Committee Chairman John Tomlinson, the group included AAOC Board Members Alan Dauger, Rick Roshan, Director Emeritus Ray Maggi, and Executive Director Valerie Teeter.  Bills, bills and more bills were the topics for discussion with legislators and their staffs.

The date chosen for this event coincided with committee hearings taking place on significant measures of particular interest.  In fact, one of the bills targeted for discussion was originally scheduled for hearing on that same date.  But the hearing was postponed for two weeks, a vivid reminder of the fluid nature of the legislative process and how quickly things may change.

Legislators meet regularly with a variety of constituent groups to discuss many diverse issues throughout the year.  The time made available for this activity in Sacramento is constrained by many other responsibilities involving committee membership and ongoing hearings on their own bills.  Hence, a few minutes with each legislator to hit the high points on a few bills is about all one can expect.  We commend our Orange County legislators and their staffs for being gracious with their time and attentive to the positions articulated by the group.

AAOC and other local associations oppose each of the four bills chosen for discussion at this event.  Why these four?  In relative terms, it is a choice of picking a few really, really awful bills from among several other bad bills that affect the housing industry.  There also is the issue of scope, that is, are we targeted alone or just swept up in a larger universe?  And, if we are the target, how pervasive is the circumstance sought to be corrected or imposed?  Also, can our position be explained and easily understood without lengthy commentary?  With these characteristics in mind, consider the four measures targeted for discussion this year.

Interest on security deposits. Senate Bill 603 meets all important selection criteria as being an awful bill ripe for discussion on April 17. The bill has been described in detail in these pages over the last several months.  It has been amended to change some of the details, but those are not really important here because the overriding administrative burdens that would impose increased costs on housing providers has not been changed at all.

Water meters and RUBS. Senate Bill 750 would require the installation of a water meter or submeter to measure water supplied to each individual unit in newly constructed multifamily housing.  It also would prohibit separate charges for water in all existing structures unless a water meter or submetering system is installed, operated, and maintained as specified in the bill.  It has been amended in insubstantial form that does not change its overall effect.

Jury trials on habitability claims. Assembly Bill 969 would require a jury in unlawful detainer cases determine whether a substantial breach of obligations has occurred, a legal question now determined by the court with or without a jury.  The quantum difference amounts to little more than extortion in the marketplace and a huge burden on a court system reeling from underfunding.

Price control.  Assembly Bill 1229 seeks “to reaffirm the authority of local jurisdictions to enact and enforce” ordinances that “establish as a condition of development, inclusionary housing requirements,” a euphemism for rental and ownership price controls. It expressly disapproves the landmark Palmer decision that upheld the new construction exemption in the Costa Hawkins Act that effectively required tangible, direct financial contributions from local entities before imposing low rent housing set asides.

Before moving on to other matters, the smoking bill (Assembly Bill 746) died in the Assembly Housing Committee.  The Legislature appears not quite ready to take the next BIG step in stemming this activity.  There are enforcement issues galore, particularly the interaction of local governments and voluntary action by multifamily owners.

Moving on to additional worthy candidates for intensive legislative scrutiny consider all of these measures in today’s real world. The housing construction market is just beginning to emerge from the economic woes of recent years.  Why would anyone want to throw additional roadblocks and hurtles in the path of a robust building surge?  And the need for multihousing projects in particular is exacerbated by the renewed public policy emphasis on infill projects close to public transportation in urban areas.  By all measurable counts, the condition of the judiciary is in the worst state it has ever been.  Do we need to foist additional litigation on a system already underwater?

Assembly Bill 5 was described in the space several months ago.  It has since been amended several times but still cuts a broad swath across the mostly urban landscape.  The many pervasive issues surrounding homelessness are set forth in stark relief in this measure.  Among them, how do you legally qualify a prospective tenant applicant if all the pertinent information needed for proper financial screening is hidden in vague language cloaking one’s background in layers of confidentiality?

Assembly Bill 1164 is something of a shocker running across the entire employment world.  This measure would permit an employee to record a lien on the employer’s real and personal property for the full amount of any wages, other compensation, and related penalties and damages owed to the employee.  There is much more detail to this enforcement mechanism, including exceptions for an employer’s personal residence, but the broad thrust of expansion of labor rights is manifest.

There is movement on all of these and a number of other bills of special interest that will by reported in future articles as bills move from legislative committees to the Assembly or Senate Floor and from one house to the other.  As always, it’s a long process with plenty of bumps in the road.  Next up, a report on how our legislators voted on these and other bills of interest to the extent they have had the opportunity to vote on one or more of them.

The "Men in Black" from left: Boardmembers Rock Roshan, Ray Maggi, Alan Dauger, Vice President Legislative Council, John Tomlinson, and President Nick Lieberman

Just another beautiful day at the Capitol!

Taking a break from his Sacramento Report, Jon Smock "shines" in his shades!

AAOC's Legislator of the Year 2012, Don Wagner, was just one of the many friendly faces that greeted our committee.

Legal Corner – Questions & Answers

 :: Posted by vcopeland on 05-22-2013

Question I just received a very strange letter.  Seems my local police department has identified one of my residents as an undesirable; they say he’s suspected of being a gang banger and is dealing drugs and tagging the neighborhood.  They say that if I don’t evict him, the police will prosecute me for allowing a criminal to operate on my property.  I may even lose my property!  The family has been there for several years, other than a couple bounced checks they have been model tenants.  This is the first I’ve heard of this, no one has ever complained before, no complaints, no drugs, no graffiti or tagging around my building, Help!  I can’t afford a vacancy right now, and I think that the police might be wrong, what do I do?

Answer In this upside down and crazy world we live in today, this actually is a growing trend in law enforcement.  With a judicial system acting more like a ‘catch and release’ fishing excursion than one that metes out consequences for truly bad behavior, law enforcement is focusing on the easier prey, landlords, in controlling crime in their jurisdictions.  Rather than prosecute the criminal, many law enforcement agencies are taking the lazy way out and threatening the law abiding landlord, forcing them to evict the resident. Rather than locking up the bad guys, seems like the current trend is to simply shuffle them off to another community. If the police are certain he is dealing drugs and tagging, seems like the right thing to do would be to arrest him, prosecute him fully and send him off to the “gray bar hotel.”   If the letter you received is inconsistent with your experience with your resident, follow up with the police department by asking for documentation supporting their claim.  Ask them to provide specific incidents, dates and times of wrongdoing.  Have there been arrests on the property?  Have illegal drugs been found there?  Ask the office to identify any witnesses that would be willing to testify in court, if necessary.  Ask other residents in the building, gather independent information.  If the information you gather supports your resident’s involvement in criminal activity, take action immediately.  Consult your attorney to determine if you have enough facts to support a three day nuisance notice, or if a thirty day or a sixty day notice is appropriate.  Remember, a letter from the police department is not sufficient evidence in court to base a nuisance notice on; testimony from percipient witnesses will be required in the event the resident contests the unlawful detainer action.

Question

Can’t take it anymore, every time I visit my building, there is another satellite dish bolted to my building facia or attached to the roof.  It’s not just the satellite dish folks; I’m having the same problem with the cable guys.  They spread cable all over my brand new roof; leave nails and screws scattered all around, and certainly are causing premature wear to the roof by all of their activities up there, and of course, all without my permission.  No one should be on my roof!  What do I do?

Answer

The problem you describe is one that owners have been facing for years.  Often it is the tenants who are the cause of the improper installation, but recently we’ve noticed the problems are more often caused by the actual dish or cable provider, by one of their subcontractors or employees.  The transgressions are many; certainly the installation by attaching the dish to your building facia or structure, and the stringing of cable on your roof is neither permitted by the rental agreement, nor by law.   More importantly, the entry upon your roof without your permission is an illegal trespass.  The damage caused to your roof by directly attaching the dish to facia, or by the scattered nails and other debris working their way into the roofing material causing the roof membrane to leak is certainly unacceptable and is actionable.  Don’t be surprised when your roofing contractor seeks to void his warranty due to your failure to prevent persons from abusing the roof, the lack of maintenance by allowing nails, screws and debris to remain on the roof, and the intentional penetrations of the roof membrane by the installers.  Enforcing the terms of the agreement against the tenant is of course the obvious choice, but not necessarily the best.  The fix has become a bit more complicated given the current climate of increasing vacancy and declining rents.  In strong rental markets, a notice of default could be served on the tenant requiring the tenant to correct the problem, and if he failed to do so, evict him.  Once evicted, the replacement tenant then moves in, calls the dish or cable guys, and the exact same problem happens again, déjà vu.  Problem solved?  No.  In the current rental market, owners want to solve the problem, keep it from re-occurring, and yet maintain the tenancy if at all possible.  The best solution in today’s market, assuming the installation was not done by the resident, is to put the resident on notice of the breach, and with the tenant’s co-operation, demand that the dish or cable installer correct the problem, and repair any damage done to the roof.  A written demand should be served upon the dish or cable provider, as well as the installer, that you intend to pursue them civilly and will seek damages for their trespass on to your property, the roof, for recovery of the damages you have suffered and will suffer due to the damage to the roof and facia, and for further damages due to their ‘unfair business practices’ of engaging in illegal activity, trespassing and causing damage to property.   Provide them a reasonable amount of time, ten days, to contact you to make arrangements to remove the offending equipment and to repair any damage done to your roof.  Upon receipt of your letter, or your attorney’s letter, the provider will certainly prefer to correct the situation and will certainly not repeat the transgression on your property.

Question I’m getting conflicting advice about whether or not I must rent to some one that does not have a valid social security or tax identification number, or an official government issued picture ID.  Seems like most of the attorneys and the Fair Housing guys say I ‘cannot discriminate’ and that I must rent to all, regardless of whether or not the prospect can prove who he is, or verify his tenancy history, or his ability to pay the rent.  I have been following that advice for years, and now have a building full of undocumented people, that I could never find in a million years if I ever had to collect from them.  The rent usually gets paid, but the building and the neighborhood, look like hell.  I want to take my building back and only rent to persons that qualify, that have verifiable identities and credit, and are good credit risks.  What are my rights?

Answer The dirty little secret is that our industry has passively allowed this erosion to occur over many years.  Many landlords have looked the other way, in favor of the quick rental, the cash payments, the full building, the reduced confrontation; we’ve taken the easy way out.  Landlords have been wary of lawsuits claiming discrimination, and have believed the bullying taunts and threats from the tenant and immigrant rights activists, that we have just taken the easier and less confrontational course of allowing it to happen.  We blame our government for not addressing the illegal immigration issue; one side of the aisle wanting cheap labor, the other wanting cheap votes.  We blame employers for hiring, and our ‘welfare state’ for creating the magnet that keeps drawing.  Landlords are part of the problem as well. By succumbing to the short term temptation of the quick rental to the unverified, the undocumented, we are contributing to the problem.  Many landlords are realizing that rather than just complaining, they can be a part of the solution.  Landlords have absolutely no obligation whatsoever to rent to an individual who is unable to independently verify his identity, his past tenant history, and his ability to comply with the terms of the rental agreement, including his financial ability to pay the rent.  Our system of society is built around a numeric social security or tax ID number.  Our life history, good and bad, is reported more often than not, into a data base that is organized by, and sorted by the social security number.  Names are common, but social security numbers are unique.  No two people should share the same number.  Credit as well as criminal convictions are reported similarly.  These very basic requirements should be applied uniformly to all applicants, regardless of race, national origin or ethnicity.  It is just good business sense.  With average rents over $1,200.00 a month, landlord investment of $175,000 or more per rental unit, and a litigation climate that is out of control, landlords must know who their residents are, must reduce their risk of financial loss and must know how to recover from a breaching resident.

Question I’ve been thinking of installing a drop box somewhere on my property so that the residents can put their rent checks in it.  I’m thinking I’ll save them a stamp and get the rents sooner.  Any problem with doing this?

Answer Many landlords do exactly that, most with absolutely no problems whatsoever.  If you are considering the practice, it is very important to install a secure box that cannot be removed or broken into, and provide your residents with written procedures regarding the use of the drop box.  Specifically, inform the residents that use of the box is optional; that they may use it for their convenience, but that there always is a risk of loss or theft.  Rent will not be considered paid until you actually receive their check.  And of course, never deposit cash.  Also provide the residents with a physical address where they can personally deliver the rent, not a PO Box, if they prefer not to deposit the rent into the drop box.  By not requiring the use of the drop box, the resident will bear the risk of loss, until you actually receive the rent.  If you mandate the use of a drop box, and fail to provide a physical address for payment, or require payment to be made to a PO Box, courts will find that the risk of loss transfers to you upon their placement in the drop box, or in the mail.

The foregoing is presented in a general nature to address general legal issues.  Specific inquiries regarding a particular situation should be addressed to your attorney.  The Duringer Law Group, PLC is one of the largest and most experienced landlord tenant law firms, specializing in evictions and in the collection of debt, representing landlords throughout Southern California.  The firm may be reached at 714.279.1100 or 800.829.6994 or 877.387.4643.  Visit our website at www.DuringerLaw.com for copies of our legal publications “Eviction and Debt Collection, a Landlord’s Guide,” and “Asset Preservation Strategies.”

Dear Maintenance Men

 :: Posted by vcopeland on 05-22-2013

Dear Maintenance Men:

My tenant has a toilet that has little cracks in various places.  It has small cracks, but no leakage.   I looked online and they said you could epoxy it or replace it…but you must do something.   How can you tell what will work? What would be the best thing?  Also, do toilets just crack over time? (“I read your column every time!  That and the Legal Corner one.”)

Kristina

Dear Kristina:

Our first thought is that the toilet is not on level ground.  It might not rock, but it may have pressure points between the floor and the bottom of the toilet or the between the sewer ring and the toilet.

Toilets do not typically crack by themselves.  They are either abused by the tenant or the installation is poor. (Sometimes both!)  We would recommend replacing the toilet and doing a bit of sub-floor work to determine what is causing pressure on the toilet.  Epoxy is a short-term fix without repairing the cause of the cracks.  Being a rental, you do not want the toilet breaking dramatically while in use!  This would not only be a liability for you, but could cause water damage to your property.

Dear Maintenance Men:

We have been reviewing our safety procedures and have decided to make a safety checklist to help avoid a possible disaster in the future.  What is your opinion of earthquake safety measures such as auto shut-off gas meters, water heater strapping and the seismic retrofitting of older buildings?  Where can I find information about protecting my property in a disaster?  Where would I find a contractor who specializes in seismic retrofitting?

John

Dear John:

Seismic shut-off gas valves are a very good addition to your safety list.  There are several manufactures and a wide price range depending on the size of your gas pipe.  A simple web search will give you many companies to choose from or call a licensed plumber.  Water heater earthquake straps are a must.  If you are handy, your local hardware store supplies straps, they are inexpensive and easy to install.

Before you start any seismic retrofitting for your building, we recommend talking to your local building department for building code information, and it is a good idea to consult with a structural engineer.

The following publications will provide you with most of the information you will need to make an informed decision:

1-                  The Homeowners Guide to Earthquake Safety. Written and compiled by the California Seismic Safety Commission in Sacramento.  Phone: (916) 263-5506.

2-                  Introduction to Earthquake Retrofitting, 80 page illustrated book from the “Building Education Center” in Berkeley, CA.  Phone: (510) 525-7610.

3-                  Damage Control booklet. Simpson Strong Tie Products for earthquake resistant construction. You can pick up a copy at any hardware store or home improvement center.

Your local apartment association should have earthquake information handy for you. They should also be able to lead you to a contractor that specializes in seismic retrofitting.

Dear Maintenance Men:

I have a unit that has pocket doors between the kitchen and living room and also between the hallway and the living room.  The door has fallen off its track and no matter what I do; I can’t get it to work properly.  How do I fix this problem?

Jack

Dear Jack:

Pocket doors … a love/hate relationship.  We love them because they are an efficient use space, but when they go bad, we hate them.  Pocket doors by their nature are very secretive and getting to their internal working parts is almost impossible.  Pocket doors operate very similarly to sliding closet doors.  The door has a set of rollers that attach to a track above the door.  Typically what goes wrong is that either a roller bracket has come loose or one of the rollers has broken.  Unlike a sliding closet door, the pocket door cannot easily be angled away from the track and removed.  The only way to extract the pocket door is to remove the casing around the door opening and the vertical jamb on the side where the door that goes into the wall.  The door can than be tipped out and removed.  This is not easy, as sometimes the top jamb must be removed first depending on original installation.  A second method is to make a four-inch hole in the wall in line with the track.  This will allow access for your hand and a tool for repairs.  Every door is different; a close inspection of the hardware should help determine which side of the wall to open.  The most common problem with pocket doors is the screws holding the roller brackets becoming loose and getting out of adjustment.  Replace the screws with a larger more aggressive thread pattern and try to use new holes if possible.  Lastly, check that there are no nails or screws protruding through the drywall into the pocket door; check for hanging picture frames or other decorations.

An alternative if the pocket door is not a critical use door.  Using jamb or casing material, seal in the pocket door in the wall.  In other words, abandon the pocket door, seal and paint the repair, call it a day.

QUESTIONS?   QUESTIONS?  QUESTIONS?     We need more Maintenance Questions!!!

To see your maintenance question in the “Dear Maintenance Men:” column, please send submission to: Questions@BuffaloMaintenance.com
Please “Like” us on Facebook.com/BuffaloMaintenance

Bio:

Please call: Buffalo Maintenance, Inc for maintenance work or consultation.

JLE Property Management, Inc for management service or consultation

Frankie Alvarez at 714 956-8371
Jerry L’Ecuyer at 714 778-0480 
CA  contractor lic: #797645, EPA
Real Estate lic. #: 01216720

Certified Renovation Company

Websites:    www.BuffaloMaintenance.com  & www.ContactJLE.com
www.Facebook.com/BuffaloMaintenance

AAOC’s Golf Tournament… a “TEE”rific Day!

 :: Posted by vcopeland on 08-17-2012

Enjoy this slideshow of AAOC’s 20th Annual Golf Classic put together by Gabe Jones of Move.com

Section 8 Survey – Your Help Needed

 :: Posted by vcopeland on 03-09-2012

Assisted Housing/Section 8 Survey

To better serve our members the Apartment Association of Orange County (AAOC) is surveying our membership on assisted housing.  If you participate in the Section 8 Rental Assistance Program, or have in the past, please consider completing the form below.  The final results of the survey will be given to those who participate, and will be discussed at our General Membership Meeting on Tuesday, May 15th.  The deadline to complete the survey is Friday, April 27th.

Please send completed surveys to:

AAOC

525 Cabrillo Park Dr., Ste. 125

Santa Ana, CA 92701

Or

Fax: 714-245-9505     Email: info@aaoc.com.

_________________________________________________________________________________

If you have ever participated in the Section 8 Rental Assistance Program, please complete the following:

Which Program have you participated in (please fill out a separate form for each property where Sec. 8 is accepted)?

Garden Grove Housing          Anaheim Housing       Orange County Housing         Santa Ana Housing

Name: _________________________________________________________________________________

Email: _____________________________________        Telephone: _______________________________

Property Address: ________________________________    City: __________________________________

Type/Number of Non-Sec 8 Units: 1 BD x____________ 2 BD x_______________ 3 BD x_______________

Type/Number of Sec. 8 Units:  1 BD x _____________ 2 BD x ________________ 3 BD x _______________

Rental rate for Non-Sec. 8 Housing:  1 BD _____________ 2 BD ______________ 3 BD ________________

Rental rate for Sec. 8 Housing: 1 BD _______________ 2 BD _________________ 3 BD_______________

When did you start the program? :____________________________________________________________

Are you still participating in the program? : _____________________________________________________

If no, when did you stop? : _________________________________________________________________

Why did you stop? : _______________________________________________________________________

_______________________________________________________________________________________

_______________________________________________________________________________________

[    ]  Please check this box if you would like your answers to remain anonymous.

President’s Message

 :: Posted by vleimbach on 10-26-2011

New Apartment Construction arrives in Orange County!

For the past several months, I have watched a very large wall being constructed along the I-5 North between Sand Canyon and Jeffrey Road.   Can anyone guess what is behind that very large wall?  If you answered, apartments then you are correct, or just maybe you are familiar with the happenings in Irvine.  This new project, called Cypress Village is being developed by Irvine Apartment Communities, and will highlight four rental communities with approximately 1,677 new apartment homes.  The company also plans to build 1,750 apartments at the former Wild Rivers site.

 Construction of new units proves that some leaders in the multifamily-industry are bullish on apartments, enough so to make huge capital investments in a less than spectacular market.    Investors reconverting unfinished condominium projects to for rent units, is another piece of evidence that suggests a wave of new apartments is on the horizon. Thus, it seems that the supply constraints I referred to in my previous article are correcting themselves rapidly.

Many owners may be afraid of new competition on the block, but others embrace the competition as a way to improve themselves.   The development of a new project within your market is significant for several reasons. First, it is highly likely that the new project will cannibalize residents from your building.  A new project will always attract residents from the surrounding community, as some people prefer a brand new apartment. However, new construction increases traffic, as the new community pumps money into advertising to attract prospective residents.  A prospective resident that came to visit the new apartments might find your community more appealing and in turn rent from you.  Take advantage of the increased traffic and use it to your benefit.

Secondly, new construction often improves values in the neighborhood, and increases market rental rates in the community.  New communities are expensive to build, and thus require a higher market rental rate to make the new projects economically feasible.   Prospective residents that cannot afford the rent at the new apartment community might find your units more affordable and in turn rent at your community.  Increased demand for your units, equals higher occupancy, which translates into increased opportunity for rent increases. 

Finally and most importantly, new units will cause you to evaluate your community and analyze how it compares up to the competition.  Examine the completion in detail, and determine your strengths and weaknesses.  Gear the marketing presentation to accentuate those features of your units that are better than the competition.  You will more than likely make some changes based on your observations.  Maybe you reinvent yourself, maybe refresh your sign, or even an exterior color change.  The important point is that you have taken the time to look at your community with the eyes of a prospective tenant. 

The Thanksgiving holiday is right around the corner, and soon we will be gathering with our families for the holiday season.   I would to encourage everyone to take a moment to reflect upon the opportunities this great nation affords its many citizens.  Let us not forget that many of world’s nations are less fortunate than ourselves.   Have a Happy Thanksgiving!

Sacramento Report

 :: Posted by vleimbach on 10-26-2011

The Buck Stops Here

“The Buck Stops Here” is an affirmation of responsibility often associated with President Harry S Truman who proudly displayed that phrase with a sign on his White House desk.  A prominent radio and television personality capitalizes on that theme by promoting the notion that “spin stops” when you enter “the no spin zone” because “we’re looking out for you.”   These concepts come to mind when one considers the task imposed on the Governor in connection with his consideration of legislative measures that have passed the earlier hurdles.

In candid remarks shortly after the close of this year’s legislative session, Governor Brown is quoted as saying:  “I’m going to veto a lot of bills over the next 30 days.”  He continued, “You’ve given me 600 bills, and there’s not 600 problems that we need those solutions for.”  He had already remarked that many bills “should not see the light of day.”  A sampling of his actions on a variety of bills gives some insight into the extent to which he is “looking out for you.”

Here is one quotable jewel that is refreshingly positive:  “Not every human problem deserves a law.”  To put in context, here is the entire veto message:

I am returning Senate Bill 105 without my signature.

This measure would impose criminal penalties on a child under the age of 18 and his or her parents if the child skis or snowboards without a helmet.

While I appreciate the value of wearing a ski helmet, I am concerned about the continuing and seemingly inexorable transfer of authority from parents to the state. Not every human problem deserves a law.

I believe parents have the ability and responsibility to make good choices for their children.

In permitting Assembly Bill 412 (relating to funding emergency medical services) to become law without his signature, the Governor expressed concern over the growing use of penalty assessments to fund a variety of activities.  While each is of merit, collectively they impose an undue burden on a narrow group of citizens for costs that should be borne by the general public at large.  This concern is reflected in this veto message:

I am returning Senate Bill 28 without my signature.

I certainly support discouraging cell phone use while driving a car, but not ratcheting up the penalties as prescribed by this bill.

For people of ordinary means, current fines and penalty assessments should be sufficient deterrent.

In a nod to small business, the Governor had this to say about a bill regarding language discrimination in the workplace:

I am returning Senate Bill 111 without my signature.

Existing law already prohibits businesses from limiting the use of language without a business necessity.  In addition, existing law specifically protects against discrimination based on language when it is used as a pretext to discriminate against persons due to their national origin.

I am concerned that businesses, especially small businesses, could run afoul of this measure without any malice or bad intent, thereby subjecting themselves to costly litigation.

Also on the litigation front is this jewel, veto of Assembly Bill 559:

This measure would reverse a California Supreme Court decision allowing judges, in cases filed under the Fair Employment an Housing

Act, to deny the recovery of lawyer fees to parties who fail to use established procedures that reduce litigation costs.

 In this case, I think the Supreme Court got it right.  Judges are in the best position to decide whether to award or deny fees in these instances.

 And this one:

I am returning Assembly Bill 312 without my signature.

This bill would expand the provisions of the Ralph Civil Rights Act to include homelessness or the perception that one is homeless, thereby creating new private and administrative enforcement remedies.

It is undeniable that homeless people are vulnerable to victimization, but California already has very strong civil and criminal laws that provide sufficient protection.

And here is a nod to common sense versus government proscription:

I am returning Senate Bill 759 without my signature.

Under this bill, homeowners associations that govern Common Interest Developments would be forced to approve the installation of Astro Turf.  The decision about choosing synthetic turf instead of natural vegetation should be left to individual homeowners associations, not mandated by state law.  For this reason, I am returning this bill.

On the election front, here is one that smacks of the Scarlet Letter:

I am returning Senate Bill 448 without my signature.

I find this bill provocative, but ultimately unpersuasive.

If it is acceptable to force paid signature gatherers to place identifying badges on their chests, will similar requirements soon be placed on paid campaign workers?

I choose not to go down this slippery slope where the state decides what citizens must wear when petitioning their government.

Finally, here is a measure that evokes real passion:

I am returning Senate Bill 888 without my signature.

This measure seeks to address the offensive conduct of those who protest at private funerals to gain publicity for their causes, and I am very tempted to sign it.  When I was the Attorney General, I joined an amicus brief in the Supreme Court arguing that funeral protesters should be held accountable to their victims.  But earlier this year, the Supreme Court ruled that funeral protests are protected by the First Amendment and can be circumscribed in only extremely limited ways.

 I cannot in good faith sign this measure because it plainly fails to comport with the Supreme Court’s decision.

At this writing, the fate of Senate Bill 337, relating to display of political signs, posters, etc. in rental housing, is unknown.  More to come on the political front when the guy in the Governor’s seat decides the fate of all pending measures.  That’s when the spin stops.

Orange County Legislative Watch

 :: Posted by vleimbach on 10-26-2011

On November 15th the Apartment Association of Orange County (AAOC) will be celebrating our 3rd Annual PAC Appreciation Reception.  This is a night where we get to thank our members who so generously donate to our AAOC Candidate PAC and Orange County Property Rights PAC. During the reception, members are able to network with State Senators, Members of the State Assembly, City Council Members, Water District Director, and many other representatives from various levels of government whom we have supported over the past year. 

Our Political Action Committees (PACs) give AAOC the ability to financially support candidates and causes that will benefit our industry or defeat those that will be detrimental to our members’ rights as property and business owners. With redistricting changing the political landscape in Orange County and a Presidential Election in 2012, it is now more important than ever to have a strong PAC in the upcoming year.

As mentioned before, we have two different PACs:

The Apartment Association of Orange County Political Action Committee (AAOC PAC) is designed to help elect state and local candidates who share the Apartment Association of Orange County’s belief in private property and business rights.  Every year the AAOC PAC contributes to numerous candidates campaigns in the hopes that our efforts will help the right candidate for our industry succeed in their election.  The PAC has been very influential to Orange County leadership and relies on membership support to become even stronger.

The Orange County Property Rights Political Action Committee (PAC) was formed to contribute to (or in some cases fight against) state and local measures and initiatives that affect the multi-housing industry.  Examples are fighting against measures or initiatives that promote rent control, eminent domain and higher taxes and supporting measures and initiatives that hope to limit these factors.  

Both these entities play a critical role in helping shape the political climate in Orange County and Sacramento.  It also gives us the ability to collaborate with other organizations in the business community.  Some local organizations we have worked with are PAC West Realtors (PWR), Orange County Association of Realtors (OCAR), Business Industry Association or Orange County (BIA OC) and the Orange County Taxpayers Association (OCTax).  Our PACs allow us to come to the table with these other organizations to really make a difference in Orange County. 

We are also constantly working with other apartment associations affiliated with the National Apartment Association (NAA) to ensure that the multi-family industry is in the forefront of any legislation that will affect our members.  Apartment Associations in Los Angeles, Long Beach, San Diego, San Joaquin County and East Bay (Northern Alameda and Contra Costa Counties) are just some of the organizations we are working with to change the pro-tenant mentality in Sacramento. By working together we now have the ability to not only impact legislators in Orange County, but others throughout the state.   One vote can be the difference between an anti-landlord bill passing or being defeated.

For those of you who have contributed to the PACs this past year, THANK YOU!  We are so very appreciative for all your support and hope you will be joining us November 15th.    If you have not yet contributed, but are interested in doing so, we will also have envelopes available at the event. For more details on the PAC Appreciation Reception please call (714) 638-5550. Space is limited, however, so contact us today!

If you are unable to attend, but are interested in donating you can visit our website at www.aaoc.com and click on “Donate Now” under Legislative Resources.  If you prefer mail you can fill out the form below and send with a check made out to AAOC PAC to:

AAOC PAC

12822 Garden Grove Blvd., Ste D

Garden Grove, CA 92843

Name    ________________________________________________________________

 

Address ________________________________________________________________

 

City ________________________________    State___________   Zip_______________

 

*Occupation _____________________________________________________________

 

*Employer ______________________________________________________________

                 *Required by law

Please make your check payable to: AAOC PAC

 If you have questions on this or any other legislative issue, please contact Emily Osterberg, Director of Public Affairs, at 714-638-5550 or eosterberg@aaoc.com.