RentalOwner agai August 2015 ne...RentalOwner agai ne the voice of the rental housing industry dition 120 110 100 90 80 70 60 50 August 2015 Revenue and Expense Management RentalOwner

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

1201101009080706050

August 2015

Revenue and Expense Management

RentalOwner Magazine®

2015 Reverse Trade Show!•Unlawful Detainers•Disparate Impact

Professional CertificationsandDesignations

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: A Property Manager's Disaster Guide

Natural catastrophes and man-made disasters caused a worldwide economic loss of $218 billion in 2010. With so much of your property assets at stake, understanding and conveying your disaster plan is vital in being a successful apartment manager. Gary A. Pudles, President and CEO of AnswerNet, will navigate you through the development of a successful property disaster plan. This webinar will include the best processes to identifying risks and hazards, constructing and implementing a plan, how to effectively communicate that plan to your tenants and stakeholders.

Cost: $71Register at naahq.org

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.

September• Sept. 2, 2015 - Why People Think Your Service Stinks and How To Change It! • Sept. 16, 2015 - Merchandising 101 -

Creating Spaces that Encourage Buying

Webinars

Takeonlinecoursesorrecordedwebinars24hoursaday.Over80coursesareavailableinEng-lishandSpanish.Viewthebro-chureatwww.sdcaa.com.

Moreinformationoncostandregistrationisavailableonwww.sdcaa.com

5PreparingforTrialThe author covers the most important aspects to prepare for an Unalwful Detainer and notifications required.

FairHousingandDisparateImpactThe U.S. Supreme Court has upheld disparate impact liability under the Fair Housing Act, a legal theory that prohibits neutrally-applied practices with a disproportionate impact on minority groups protected by the law.

RentalOwner-RHCMagazine

Cover:®NationalApartmentAssociation

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.

MagazineStaffPublisher Alan Pentico, CAEExecutive Director

Design & Layout Olivia GalvezDirector of Publications

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

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

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Columns

13 LocalLegislative 17 FromtheCapitol-NAAUpdate21Travelandlearnprogram

9

4 |RHC-RentalOwnerAugust2015

It is important for the RHC to provide its members the most relevant and most recent information on the rental housing industry. In the past few months, RHC articles addressed the importance of starting your budgeting process early for 2016, the new state rules for employees working outdoors

under high temperatures, emergency preparedness for your rental properties, and California’s new paid sick leave law. Over the next few months, our articles will focus on new laws and regulations that will take effect in 2016 regarding electricity rates, plumbing retrofit requirements, smoke detectors and carbon monoxide detectors, among many other relevant topics.

In this month’s issue, the column on the U.S. Supreme Court’s decision regarding Disparate Impact on page 9; certainly, the high court’s decision could have long-term implications for the rental housing industry. Read the article on evictions on page 5, the past president’s column on marketing your property, and the local legislative and state updates on pages 13 and 17.

If you are in South Riverside, I encourage you to make the brief drive and attend North County Luncheon on Crime-Free Multi-Housing in San Marcos on August 25. If the luncheon is too far away for you, the RHC will have its Fair Housing Seminar at the Murrieta Library on September 17. If you want to spend the day along the coast, join us at the SDCAA’s 29th Annual Charity Golf Tournament happening on September 24. And, before you know it, the Mark of Excellence Awards on November 20 will be here. We hope to see you and your associates at these great events. Stay tuned for our other upcoming events by visiting the RHC’s website at http://rhcsoriverside.org/. We always want feedback from our members on how we can provide the products, seminars, and services they need – call or email us if you want the RHC to cover a specific topic for a future class.

Please contact our staff if you need assistance.

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

From the Executive Director's Desk

RHC-RentalOwnerAugust2015 5

It’s an otherwise lovely day, but your tenant has responded to your Unlawful Detainer

with an answer and you need to prepare for trial. These are the immediate need-to-know items: the date and time of trial, location of the court and parking, in which department is the trial being held and the name of the attorney with whom you will be meeting. These are the basics, but far more important is the testimony and evidence that you will bring with you.

The testimony and evidence to support your complaint (lawsuit) at trial is dependent upon the witness appearing. Often the plaintiff (landlord) believes that it is the attorney who will do the talking. Unfortunately, the only times that it is permissible for an attorney to testify is on television and in the movies. The attorney will guide you, but facts concerning the tenancy and the books and records, which

accompany it, are not knowledge possessed by the attorney.

Preparing for TrialMuch of the preparation for trial---or lack thereof---began when the landlord was initially renting the property. The application to rent will supply information of value when collecting the judgment. Social Security numbers, places of work and bank accounts should all be collected prior to any rental or lease agreement. They are necessary to determine the financial qualification of the tenant and are of even greater importance when enforcing a judgment. The landlord should have conducted a “walk-thru” before giving keys to any tenant. This is a check off sheet which goes through the amenities, appliances, and conditions of the rental; so the tenant cannot later claim that the premises were not habitable and that they have the legal right to withhold rent. The “walk-thru” should be signed

and dated by both the lessor and lessee. Always bring the “walk-thru” to court.

The lease or month-to-month agreement needs to be brought to court, along with any notices of change which were made during the course of the tenancy. These changes might include increase or decrease in rent or changing the date on which rent is due. The agreement and addendums may already be in the possession of the attorney, but as most are copies, it is always wise to bring originals. Communications made during the course of the tenancy are also important. All evidence of work completed and work requested are important. And, as most evictions are based upon non-payment of rent, it is extremely important to have an accurate accounting which can easily be understood by the judge. If you have been allowing tenants to deposit directly into a bank account, they may have a better accounting than

Preparing for TrialByLeslieBorn,Attorney

A Framework for Success Article


you. This is never good. Please remember that judges are NOT accountants and a ledger must be simple to read. Many a case has been lost due to sloppy accounting records.

The attorney does not keep your records and cannot save you if your ledger tells a story which is different from the demand made in your 3 day notice.

NoticingWith regard to the notice… Any adult can serve the notice. A process server is preferable, but not necessary. Just remember that whoever does it must be available for court. Do not let Uncle Jerry, visiting from Tennessee do it, unless Uncle Jerry is ready to be back in California and available for trial. Not all notices served are disputed, but many are and then the server must come to court. The landlord or manager who expects to be the witness at the trial is usually the best person to serve the notice.

Pay attention to the “answer” filed by the tenant/defendant. The answer is the tenant’s response to your lawsuit and it outlines the defenses that the tenant will raise at trial. If the tenant claims lack of repairs, then it is your work orders, invoices, and repair records which will be the most important. Alternatively, if the tenant says an amount demanded is inaccurate, then it will be your accounting which will be called into the court’s spotlight. Sometimes it is both. Additional defenses include retaliation, refusal to accept rent (my personal favorite), violation of rent control, and can go as far as any imagination will permit.

The filed answer is your guide for preparation and needs to be considered seriously. It is also noteworthy that the tenant is bound by the parameters of the answer and cannot raise issues at trial which were not first outlined in the answer.

WitnessesA few words about the proper witness at trial. The proper witness--- and usually there will only be one witness--- is the person most familiar with the tenancy. This may be an owner, but if the property is managed, it is usually the management company who has the necessary repair records and accounting needed for trial. The manager is usually the one who has had the daily interaction with the tenant as well. The named plaintiff must be the owner, but do not travel across country for an unlawful detainer trial if someone else has been collecting rents and maintaining your property. Not only is the trip expensive, but the testimony of an absentee owner has no value. The trial court requires the best witness. This is the one who can explain the accounting and refute any affirmative defenses raised in the tenant’s answer.

The Superior Court of the State of California conducts its business in English. Your unlawful detainer takes place in the civil section of the court.

The criminal courts must provide an interpreter, but the civil courts are not required to do so. If you have any doubt about your competency in the English language, you must bring your own interpreter. Even if your

attorney speaks your language, they cannot translate for you at court. (Counsel would then be asking and answering his/her own questions.) Often plaintiffs overestimate their proficiency in English and a courtroom is NOT the place for that type of overconfidence. Even native English speakers can have difficulty understanding courtroom proceedings, so if you are not fluent in English, bring a translator.

Your attire demonstrates your respect for the court. Do not wear shorts or tank tops. You need not be formal but smart casual attire is best. The impression that you make upon the court can and does potentially influence the outcome of your case. Dressing appropriately adds to the integrity of your case.

Set aside a generous block of time for your trial. If your trial is in the morning, leave the entire morning open. An afternoon trial may last the entire afternoon. Unlawful Detainer trials are scheduled in multiples and the order in which they proceed is not predictable. The times for each can vary as well. Do not put your attorney in the position of having to rush you through your trial. Do not appear for an 8:30 matter, informing your counsel that you have a 9:30 dentist appointment. Be relaxed. The lengthy trial heard before yours could be the one that teaches you the flaws in your own case. Take a deep breath. Justice will proceed at its own pace.

Preparation for your unlawful detainer trial is very important. These cases are simple and straightforward and so is the


preparation for them. Your case should be submitted to the court in an organized fashion that clearly states your cause of action and negates any defenses raised by the defendant. And finally, do not underestimate the value of a good night’s sleep.

About the author: Ms. Born is another managing attorney for the firm. She attended school at University of Riverside and received her Juris Doctor from California Southern Law School. Ms. Born was admitted to the California State Bar in 1998 and is licensed to practice before all state and federal courts in California.

The views and opinions expressed in this article and do not necessarily reflect the official policy or position of the SDCAA. For more information about the eviction process conrtact your attorney.

Landlord Advice--Need Help?

Ask us!Small operational issues can become

significant problems over time.

Whether you have questions about serving notices, or about normal wear and tear, or when you need a reliable tenant screening service we can help by providing expert, reliable advice, guidance and

services on all kinds of landlord/tenant operational matters.

Call the RHC at 888.685.0980


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To view a resume or post a job listing, visit the Career Center, under the Services tab of SDCAA.com


After much anticipation, speculation and contemplation of the potential ruination of the apartment nation…the Supreme Court of the United States (SCOTUS) finally released its decision on Texas Department of Housing and Community Development v. The Inclusive Communities Project, Inc.

For those unfamiliar with the name, this is the case that answers the question of whether the Federal Fair Housing Act supports the concept of disparate impact in housing discrimination cases. In other words, can someone be liable without intent to discriminate. The answer, by a vote of 5 to 4, is yes…with some caveats and provisos.

The majority opinion, authored by Justice Kennedy on behalf of Justices Sotomayor, Ginsberg, Kagan and Breyer, would not be considered a ringing endorsement of disparate impact. In fact, Harry Kelly, Esq., an attorney with the firm of Nixon Peabody in Washington, D.C., and the lawyer who crafted the amicus brief on this case to which NAA and several other organizations put their names, put it this way in his recent article

FairHousingandDisparate ImpactByGregBrown,NationalApartmentAssociation


Landlord Advice--Need Help? Ask us!Small operational issues can become signi�cant problems over time. Get business advice on strategy and operational matters. Whether you have questions about serving notices, or about normal wear and tear, or when you need a reliable tenant screening service we can help by providing expert, reliable advice, guidance and services on all kinds of landlord/tenant operational matters.

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on the decision. “Having found that disparate impact liability exists under the FHAct, [Justice] Kennedy thus spent much of his decision narrowing the scope of that liability and offering a series of “safeguards” intended to prevent abuse of disparate impact theory.” These safeguards have the effect of raising the threshold which must be reached to validate a disparate impact liability claim. So, while the headline is certainly

not what the apartment industry wanted to see, the fine print offers some promise.

The safeguards contained within the majority’s opinion go right to the common sense arguments about disparate impact. For example, there must be a cause and effect relationship between the policy in question and the resulting impact on a protected class. Justice Kennedy writes “…

statistical disparity must fail if the plaintiff cannot point to defendant’s policy or policies causing that disparity.” Plaintiffs in disparate impact cases would also, under the majority’s opinion, need to clearly show that the policy in question raises “artificial, arbitrary and unnecessary barriers.” Harry Kelly again acknowledges that this is not new to the disparate impact debate but its emphasis in Justice Kennedy’s opinion does have the effect of raising its importance to the process.

The question in all of our minds is what does this mean for the day-to-day behavior of apartment owners and operators? How should they change their policies or procedures based on this opinion? The bad news is that there is no clear guidance in that area contained within this opinion. Justice Kennedy did establish some good rules for evaluating polices for disparate impact liability but it will ultimately be up to lower courts to do the actual evaluation when litigation come before them. That means owners and operators will continue to operate in somewhat of a murky area when it comes to their exposure to disparate impact liability. It has been suggested by some fair housing attorneys that the SCOTUS opinion does raise the value of documenting that you considered potential disparate impacts when you developed a policy and why the policy you choose was still “necessary to achieve a valid interest.” It likely will not protect you from litigation, but it could help in your efforts to respond. More to come on that.


InfoLink Rental FormsInfoLink Rental Forms:• Reviewed by California Attorneys• Updated annually to current regulations• Easy to use

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Staying with fair housing for a moment, during its recent 2015 Education Conference and Exposition, the NAA Board of Directors passed a statement of policy on the issue of reasonable accommodation for requests for emotional support animals. This issue is trending as one of the most significant current operational challenges for apartment operators. Existing rules from the Department of Housing and Urban Development (HUD) allow for abuse by individuals who do not require an emotional support animal attempting to skirt pet restrictions in apartment communities. A working group of NAA members spent two months looking at all aspects of the issue and crafted a statement of policy that (1) reaffirms the industry’s support for those who legitimately need an emotional support animal and (2) urging HUD to amend its

rules to curb such abuse. It has been encouraging to see support for this position from psychiatric and animal rights organizations and NAA will seek their support in advocating before HUD on this issue.

Finally, to update you on another case recently decided by the SCOTUS, by a 5 to 4 vote the Court upheld the Arizona Independent Redistricting Commission established by voters in that state to draw the Congressional district lines and rejected claims by the state legislature that such a move was unconstitutional. The decision in Arizona State Legislature v. Arizona Independent Redistricting Commission not only preserves the Commission and current map in Arizona, but bolsters similar commissions in other states, like California. It also strengthens arguments by reformers in states that currently allow district lines

to be drawn on a partisan basis who are in favor of a commission-like process. In my view, the SCOTUS decision is a huge win for nonpartisanship and a shot across the bow of ridiculous gerrymandering that is conducted by both parties.

To see both the article from Harry Kelly on the SCOTUS disparate impact decision and NAA’s statement of policy on emotional support animals, go to www.naahq.org. Remember, nothing in this column should be considered legal advice. It is for informational purposes only


DISCUSSION QUESTIONS FOR RCTC TRANSPORTATION SUMMITS

The questions that follow will be discussed during four RCTC Transportation Summits that will be held in August – September 2015. Details are: 1. Thursday, August 26, 2015 - Perris City Council Chambers, Perris City Hall, 101 N. D Street, Perris, CA 92570 2. Saturday, August 29, 2015 - California Baptist University, Meeting room location TBD, 8432 Magnolia

Avenue, Riverside, CA 92504 3. Tuesday, September 2, 2015 - Harveston Center, 40135 Village Road, Temecula, CA 92591 4. Wednesday, September 3, 2015 - UC Riverside Palm Desert Center, 75080 Frank Sinatra Drive, Building B,

Palm Desert, CA 92211

If you are unable to attend, please feel free to write in your responses and send to the Riverside County Transportation Commission (RCTC), 4080 Lemon Street, 3rd Floor, Riverside, CA 92501, or by email to [email protected]. JOBS AND THE ECONOMY 1. What two transportation projects or programs will be most beneficial for helping the Riverside County

economy grow and reducing workers’ commute times? ______________________________________________________________________________________

2. What are the two biggest challenges to achieving those changes, and what are the best strategies to overcome the challenges? ______________________________________________________________________________________

INNOVATION AND TECHNOLOGY 1. What are the two most important changes needed to make it possible or convenient for people to use

alternative modes of transportation? ______________________________________________________________________________________


3. What are the two innovations or technological changes that could beneficially change transportation in Riverside County in the next 20 years? ______________________________________________________________________________________

ACCESS FOR ALL 1. What are the two most important changes needed so that non-drivers -- including seniors, students, and

people with special needs -- can get where they need to go? ______________________________________________________________________________________


ENVIRONMENT 1. What would be the two best new transportation policies or programs to help protect the Riverside County

environment without hurting people’s ability to get where they need to go? ______________________________________________________________________________________



StateCommissionadoptsnewstandardsforshowerheadsThe California Energy Commission (CEC) again adopted new rules reducing water flows on plumbing fixtures. This time the rules will affect water flow rates for showerheads produced after July 2016 and July 2018.

The new standards will require showerheads manufactured after July 2016 to reduce their water flow by 20 percent, and showerheads produced after July 2018 must have their water flow reduced an additional 10 percent. Current state rules cap the flow of showerheads to 2.5 gallons per minute (GPM). The new rules will cap the water flow to 2 gpm in July 2016, and to 1.8 gpm in July 2018.

According to the CEC, Californians use an estimated 186 billion gallons a year for showering. Faucets and showers account for almost 40 percent of residential indoor water use. The new standards could save more than 2.4 billion gallons a year in the first year.

Last April, the CEC adopted new rules for faucets, toilets, and urinals manufactured after January 1, 2016. Bathroom faucet water flow rates will be capped at 1.2 gpm, kitchen faucets will be capped at 1.8 gpm, and faucets in public restrooms will be capped at .5 gpm. Wall-mounted urinals will be capped at 0.125 gpm, and 1.28 gpm for toilets. The April ruling did not address showerheads.

State law requires any improvement or remodel of

multi- or single-family residences more than 20 years old to install water-saving plumbing fixtures. Look for the SDCAA’s updated White Paper on Plumbing Retrofit Requirements in the White Papers Section on the SDCAA website, www.sdcaa.com, in the coming weeks.

CountySupervisorElectionsUpdateElection season is heating up with Riverside County Supervisor races. Murrieta City Councilman Republican Randon Lane announced his candidacy earlier this year for the County Supervisor, 3rd District. Incumbent Democrat Chuck Washington announced that we will run for reelection for the seat. Supervisor Washington was appointed by Governor Jerry Brown last March to serve the remainder of the term left by former Supervisor, now State Senator, Jeff Stone. Randon Lane is supported by fellow Republicans County Supervisor Kevin Jeffries and Lake Elsinore Councilman Bob Magee. Hemet City Councilwoman Shellie Milne, former Tea Party organizer, announced her candidacy on August 11 for the 3rd District seat. The 3rd District includes the cities and communities of Temecula, Murrieta, Hemet, and Idyllwild. If none of the three candidates receives more than 50 percent of the votes in the June primary, the top two candidates receiving the most votes will run against each other in the general election in November 2016. So far, Supervisor Washington is the frontrunner in raising the most campaign contributions.

RHC LocalIssues

• StateCommissionadoptsnewstandardsforshowerheads

• CountySupervisorElectionsUpdate

• Interesting times forlocalcitypolitics

• RTCtoholdpublicforumsontransportationplanning

By Molly Kirkland, Director of Public Affairs


In the other County Supervisor races, Jaime Hurtado, candidate for the 5th District is running uncontested and is collecting campaign donations. Hurtado is Chief-of-Staff for County Supervisor Marion Ashley; Ashley announced that he is not seeking reelection at the end of his term. The 5th District covers areas of Menifee, Moreno Valley, and Perris. Supervisor John Tavaglione, 2nd District, also announced that he will not run for reelection; so far, no one has announced their candidacy for the seat. The 2nd District covers the areas of Corona, Eastvale, Riverside, and Norco. Current Supervisor John Benoit, 4th District, stated that he is running for reelection and is currently raising contributions; so far no one has challenged Benoit. The 4th District stretches from Desert Springs, Palm Springs, Indio, and Coachella Valley all the way eastward to Blythe.

InterestingtimesforlocalcitypoliticsOn August 9, freshman Hemet City Council Member K. Paul Raver announced his immediate resignation via email to the City Clerk. For reasons not specified, Councilmember Raver stated that he could no longer continue to serve as councilmember. Paul Raver, elected last November, succeeded in reversing a decision that would have disbanded the city’s fire department. Raver’s positions often countered the opinions of other councilmembers. In reaction to the resignation, several councilmembers voiced their disappointment and disdain with Raver’s decision at a time

when Hemet faces a large budget shortfall. On August 10, Raver announced in a separate email that he changed his mind and will not be resigning from the council seat. Raver’s decision not to resign received more criticism from councilmembers calling Raver’s ‘about face’ a distraction that will hurt the council’s credibility.

The City of Murrieta also is experiencing its own discord. Back in June, the city council ordered an investigation to look into allegations of abuse of power, and other code of conduct violations by Councilmember Harry Ramos, who is serving as Murrieta’s Mayor currently. In July, an allegation of sexual harassment that took place during a public event surfaced against the mayor. Since the first incident, several more allegations of sexual harassment involving Ramos became public. Critics of Mayor Ramos have asked him to resign, but Mayor Ramos insists that all of the accusations are false and he does not plan to step down. Murrieta residents do not elect their mayor, the title of Mayor is honorary and rotated among the councilmembers every several years. If the code of conduct violations are proven to be true, Ramos could be stripped of his title as Mayor, removed from regional boards, and censured.

RCTCtoholdpublicforumsontransportationplanning.The Riverside County Transportation Commission (RCTC) is holding a series of public

forums throughout the county on its transportation planning. All four upcoming forums are free to attend and the public is invited. The RCTC encourages the public to participate at the forums by providing feedback on its transportation planning. The summits are to be held at the following locations:

•PerrisCityCouncilChambers - Perris City Hall, 101 N. D Street, Perris, CA 92570. Wednesday, August 26, 2015, 6:30 - 8:30 PM

• CaliforniaBaptistUniversity,8432 Magnolia Avenue, Riverside, CA 92504 (meeting room location to be determined), Saturday, August 29, 2015, 10:00 AM – Noon

• HarvestonCenter,40135VillageRoad-Temecula, CA 92591, Wednesday, September 2, 2015, 6:30 - 8:30 PM

•RiversidePalmDesertCenter,75080 Frank Sinatra Drive, Building B, Palm Desert, CA 92211Thursday, September 3, 2015, 6:30 - 8:30 PM, UC

For more information on the transportation summits, please see the RCTC’s flyer at: http://www.rctc.org/uploads/media_items/rctc-savethedate-final-8052015.original.pdf


Your framework for success

E d u c a t i o n

Federal and state fair housing laws are always changing and can be tricky! It is important that you remain up to date on the current laws and issues that can arise in today’s market. Understanding these laws is the best way to protect yourself from any claim that fair housing rights have been violated. Do not leave yourself unprotected!

From the property managers to the maintenance technicians, this course will provide basic coverage of federal and state fair housing law from a risk management perspective.

Topics Include: Laws and Enforcement Protected Classes Immigration Issues Applications, Screening & Tenant Selection Community Policies & Operational Procedures

Date: September 17, 2015

Location:

Murrieta Public Library 8 Town Square

Murrieta, CA 92562

Time: 1:00pm – 4:00pm

Price: Members: Free

Non-Members: $20

This seminar is taught

by Attorney Todd Brisco

Brisco & Associates

[email protected] │ Phone 858.751.2209 │ Fax 858.565.6708

Fair Housing

Register online at www.sdcaa.com or fax form below to 858.565.6708. Name: Payment type: AMEX Discover MC Visa

Company/Member #: Card #:

Address: Name on Card:

City: State: Zip: Exp Mo: Exp Yr: Sec Code:

Signature:

*Cancellation Policy: Cancellations only accepted in writing. Fees are not refunded for cancellations received within 72 hours of the seminar, no shows, late arrivals, and early departures. NO EXCEPTIONS!



CaliforniaCAPITOL NEWS

AninsidersviewtoCaliforniaRentalHousingIndustryPoliticsandGovernment

ByAaronRead&Associates,LLC

The Legislature is winding down to the summer break (July 17 – August 17), which

means we are once again up against committee deadlines. The policy committees are required to meet and have their bills heard by July 17th. As that date approaches, legislators are hurrying to get bills amended. This escalated effort also involves many of the key bills on which SDCAA is actively involved. Alan Pentico, SDCAA Executive Director, Molly Kirkland, SDCAA committee members and our lobbying team continue to closely review the flurry of amendments flying back and forth. The Legislature will be out for a month, and SDCAA will use that time to assess and strategize on the bills that have survived in varying forms.

Part of the process includes bills being gutted and amended. This means the content of one bill is completely stripped out and amended with language unrelated to its original content. For example, a gut-and-amend that significantly impacts SDCAA members is AB 723 (Rendon).

The bill recasts underlying law – SB 407 (Padilla-2009) – and turn what was a cooperative

agreement into a matter that promotes confrontation and possible legal disputes.

In 2009, SB 407 was passed and signed into law. The law is simple: owners of single-family housing must install water-saving fixtures throughout their properties by January 1, 2017. Owners of multifamily housing have until January 1, 2019, to do likewise. Cognizant of the difficulties inherent with meeting the requirements of SB 407, single-family owners were given 8-years to comply and multifamily owners were given 10-years.

AB 723 implies that owners are not complying with the law as “quickly” as the sponsors may like; a law that does not take effect until 2019. If that is the motivation for the bill, where is the evidence? Our opposition is premised on this particular legislation being a solution in search of a problem.

The bill proposes new “disclosure” requirements on property owners – forcing them to throw out their leases and remake them with a disclosure that states, “I will install new showerheads by January 1, 2019.” The purpose of this caveat is lost on us. Common

AaronRead&Associates

Aaron Read

Pat MoranJennifer TannehillTerrance McHale


sense and appropriate business practices beg the question; “Why would a property owner change all their leases to mention a law that does not take effect until 2019?” Also, with no advance notice or discussion, the author of AB 723 is considering amendments to establish an AB 407 enforcement regime squarely aimed at penalizing rental property owners – including unilateral rent reductions and new lawsuits – turning the original, negotiated law into an us vs. them policy.

Thousands of state laws are on the books that compel millions of California citizens and business owners to follow their provisions. The presumption of AB 723, however, is that owners and property managers do not understand the laws andwill not comply with the law. This heavy-handed legislation does not take into account local ordinances requiring retrofitting under certain circumstances. AB 723 also suggests property owners aren’t motivated to meet or aren’t already meeting the objectives of the law. The bill is being promulgated with a disregard for facts and collaborative discussion. Oddly, the bill’s content suggests that the author believes the laws of California require secondary laws to simply re-state the purpose of the original laws.

We don’t want to keep kicking the same horse, but AB 723 undermines an agreement reached in good faith over five years ago. For those reasons, SDCAA is opposing the bill and has notified San Diego legislators of their position.

We have also been working on amendments to other bills of importance to SDCAA. They include:

SB 328 (Hueso) – Pesticide application by landlord: The bill requires a landlord or a landlord's agent to provide a tenant, and any tenant of adjacent units, with advance written notice of the use of pesticides at a dwelling unit if the landlord or authorized agent applies any pesticide without a licensed structural pest control operator. We had significant concerns regarding the bill. It overcomplicated a process that did not need to be complicated. However, we have been working with Senator Hueso’s office and, as of this writing, are close to amending the bill to make it workable for all parties concerned.

SB 551 (Nazarian) – Bedbugs: SDCAA has an oppose unless amended position. This is another bill we have been working on and are close to resolving our issues. We have one last amendment in which we are seeking to eliminate the requirement to purchase a bedbug management plan from a PCO if we already have one. After extensive talks with the sponsor’s, we have shared language with them to address our concerns. In the end, I believe our last remaining concern will be addressed.

SB 655 (Mitchell) – Mold: SDCAA is opposed to SB 655 and we have been seeking amendments to address our concerns. SDCAA supports proven and scientifically sound

approaches to help ensure safe housing while encouraging property owners, managers and occupants to follow best practices for controlling excess moisture and mold in buildings. However, SB 655 went overboard in its application. As a practical matter, the author has been working on amendments with us and other opponents of the bill and as they began to sign-off on amendments it has become more difficult to stop the bill from moving forward. To that end, SDCAA has been engaging the author’s office and sponsors on amending the bill to address our concerns. As of this writing, we continue to work on addressing those issues.

We believe the SDCAA promotes safe, healthy living for our communities and are proud to be able to assist you in having your voice heard in the Capitol. We will continue to keep you informed and up-to-date on the issues affecting SDCAA.

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www.rhcsoriverside.com


SDCAAMEMBERBENEFITS

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Insurance Programs…

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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]


Documents

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