Professional Documents
Culture Documents
Apartment Age Jan 2020 PDF
Apartment Age Jan 2020 PDF
”
A publication of the Apartment Association of Greater Los Angeles • January 2020 • $7.50
SALES | DELIVERY | INSTALLATION – APPLIANCES, LAUNDRY, ROOM AIR CONDITIONERS & MORE SINCE 1966
$269 0 0 $359 0 0 $379 0 0 $189 0 0 $549 0 0 $299 0 0 $549 0 0 $639 0 0 $199 0 0 $99900
$82800
Always Available
SAME-DAY OR NEXT-DAY DELIVERY AND INSTALLATION AVAILABLE! CALL US FOR MORE INFORMATION
PRICES, SIZES, AVAILABILITY & MODELS ARE SUBJECT TO CHANGE ANYTIME WITHOUT NOTICE
14 Guest Editorial
44 Something Is “Rotten in the State
23 Federal Rent Control Cannot be a Solution 62 Landlords and Their Attorney’s Suffer Cruel
to the Affordability Crisis and New Members and Unusual Punishment
1
10 Korean News
Apartment Age Magazine is Available Here AAGLA Satellite Offices HCIDLA Office Locations
Apartment Age Magazine and Apartment Age Magazine Available Here
Feder’s Distributors Downloadable Forms Available Here
5720 Lankershim Blvd., North Hollywood Central Regional Office
(818) 769-8000 E.G.L. Properties 3550 Wilshire Blvd., Suite 1500
1543 Pontius Ave. Los Angeles, CA 90010
Mission Valley Bank: Los Angeles, CA 90025
East Regional Office
Santa Clarita Sullivan-Dituri Realtors 2215 N. Broadway
26415 Carl Boyer Drive, Suite 120, Santa Clarita 2111 Wilshire Boulevard Los Angeles, CA 90031
Santa Monica, California 90403
Sun Valley North Regional Office
9116 Sunland Blvd., Sun Valley 6640 Van Nuys Blvd.
Fast Eviction Services
(818) 394-2324 Van Nuys, CA 91405
474 W Orange Show Rd.
San Bernardino, CA 92408
South Regional Office
(909) 889-2000 690 Knox St., Suite 125
Torrance, CA 90502
RST & Associates
11866 Wilshire Blvd Suite 101 West Regional Office
Los Angeles CA 90025 1645 Corinth Ave., Suite 104
(310) 479-2565 Los Angeles, CA 90025
Statements and opinions expressed in Apartment Age are solely those of their respective authors and may not represent the views of
the Apartment Association of Greater Los Angeles, its Board of Directors nor of its employees. The Apartment Association of Greater
Los Angeles is not responsible for the accuracy of any of the information supplied by third-party authors. Products and services
advertised herein are not warranted by the Apartment Association of Greater Los Angeles, either expressly or implied. No testing
or other investigation has been conducted to assess the quality of any of the products or services advertised in Apartment Age. The
Apartment Association of Greater Los Angeles takes no responsibility in the event the cost or quality of products and services herein
are not as advertised.
Let's Add to
In the past 9 years, Opus Bank’s Commercial
Real Estate Banking Division has funded over
$9 Billion dollars – that’s Billion with a “B” – so
If you have your eye on a multi-family or commercial property that has great
potential, we’re here to help you add it to your portfolio. Opus Bank® has capital to
lend, a broad range of financing options, and the expertise to tailor any one of
these options to your specific needs. Our team will explain the selection of new
and unique lending options, explore different scenarios, and put a financing
package together that works best for you.
Joseph Kim
FVP, Sr. Relationship Banker
949.258.7261
Call us at 213.429.4042
OpusBank.com/LetsDoThis
6 year tank & part warranty
30 Gallon $
Reliance 6-30-UORT...................... 498
Reliance 6-40-UBRT...................... 498
40 Gallon $
BRADFORD WHITE RESIDENTIAL & COMMERCIAL
WATER HEATERS ALSO IN STOCK
WE STOCK AND ORDER
ALL RAYPAK PARTS
ALSO AVAILABLE:
$
Model RBF121.................. 149.96
1/3HP.......$64.97
1/2HP.......$74.97
84.97
Badger 5 disposer $
1/2 HP disposer...............
25,000 btu Monterey
1/3 HP disposer............... 77.
Badger 1 disposer $ 97 Model 2509822...............
$
527.00
35,000 btu Monterey
Model 3509822............... 547.
$ 00
SMOKE & CARBON MONOXIDE ALARMS 50,000 btu Monterey
Model 5009822............... 727.
$ 00
BRK 9120B Smoke Alarm
$
with 9 Volt Battery Back Up.............. 8.97
7010B Photoelectronic 14,000 btu Direct Vent $
$
with 9v Battery Back Up.....................17.97 Model 1403822............. 617.00
22,000 btu Direct Vent $
Model 2203822............. 727.
SC9120B Smoke Alarm & Carbon 00
Monoxide with 9v Battery Back Up.... 34.97
$
30,000 btu Direct Vent $
Model W3003822...........747.
Carbon Monoxide Detector 00
17.77
$
Battery Only CO 400.........................
1.
FLANGE.....................$ 50
FOR PRICE PFISTER
SEISMIC
ENGINEERING &
OPTIMUM | SEISMIC MAKING OUR CITIES SAFER TM
CONSTRUCTION
EXPERTS
MESSAGE FROM
AAGLA’S PRESIDENT
By Earle Vaughan
There You Go Again! As I said, “there you go again!” And here we go again by
launching yet another campaign to beat back Proposition
As the late, great President of the United States, Ronald 10’s evil twin, the so-called “Rental Affordability Act.”
Reagan, once said: “There you go again!” And, there we The title and summary that will be seen on the ballot will
go once again. Not much more than a year after nearly state: ““Expands Local Governments’ Authority to Enact
two-thirds of California’s voters rejected Proposition Rent Control on Residential Property.” Sadly, many fellow
10, backers of that measure have garnered enough Californians, not knowing any better, will think this is a
signatures, more than 625,000, to qualify a similar rent good idea. But obviously, this new, proposed measure is
control measure for the November 2020 ballot. deeply flawed and would still stymie new growth. Like its
evil twin, this proposal does not target the true problem
This time, called the “Rental Affordability Act,” the
that’s going on in California – there is just not enough
proposed ballot initiative would “chip-away” at the
housing for the people that live here. And, this will do
Costa-Hawkins Rental Housing Act by imposing rent
nothing but make matters worse.
control on single family homes and condominiums, and by
eliminating the very one thing that keeps all of us rental
Rumor has it that the initiative’s principal proponent
property owners in business, “vacancy de-control.” The
and backer, Michael Weinstein, President of the A.I.D.S.
“new” but no way improved Proposition 10-like ballot
Healthcare Foundation, will invest about $25 million to
initiative greatly expands these draconian rent control
$30 million to seek passage of his new initiative. That
measures without local governments taking required any
means, “WE” as an industry must again raise at least
sort of local action.
three-times that amount, or about $80 million to $90
Under this newly, ill-conceived initiative, property owners million to defeat Weinstein’s latest attack on our industry,
who rent out two or fewer single-family homes would our investments and our retirement. We need your
automatically be exempt, and the law would apply to only support once again. Heed the call when we contact you
the “larger” landlords who own 3 or more single-family for your support and your money – please don’t wait
homes or condominiums that are available for rent. And, around expecting others to do the job you must do. Give
far, far worse, if passed, we lose “vacancy de-control.” please and please give generously. Also, please give
us your time and energy by helping to tell your friend,
Yes folks, the proposed ballot initiative also seeks to by making phone calls, by writing letters to your local
regulate how much landlords may increase rent when a newspaper and elected officials, and by distributing lawn
tenant voluntarily leaves and a new tenant moves in. The signs. This will be all-out war and “all hands-on deck”
proposed limit? That would be only 15% over a three- are needed.
year period based upon the last rent paid by the previous
tenant. That would be bad news for those of us in the Although bad for housing and bad for our business,
multifamily rental housing industry. If you have any units our one saving grace may be newly in-effect Assembly
renting for far below market, you will never catch up, and Bill 1482. This new law has many tenant protections
your property value will suffer. and imposes statewide rent “caps.” As a result of our
K - Town Pest & Termite Control mailing your check to AAGLA PAC,
c/o Reed & Davidson, LLP, 515 South
Figueroa Street, Suite 1110, Los
Angeles, California 90071-3301;
Attn. C. Davidson, Treasurer, or
contribute online at: https://aagla.
org/pac/.
GUEST EDITORIAL
Rent Control Will Do Nothing to Solve California’s Housing Crisis
By Logan Graham
The conceit of the free market is that generally it supplies complexes. Doing so would dramatically increase the
most things efficiently to most people. Whenever it fails to amount of people who can live in these neighborhoods
supply, it is a market failure. and, as the vehement opposition of local homeowners’
associations tell us, would decrease property value (and,
There is, unquestionably, a market failure at play in therefore, rent).
California’s housing market. This market failure has
managed to place California as one of the richest states A secondary benefit of this policy would be reducing the
with the most homelessness. The question is simple: Why environmental impact of these neighborhoods. With urban
has the market failed to provide enough affordable housing expansion, the need for cars would decrease and maybe
to Californians? The answer is simple: There’s not enough finally the famous Los Angeles traffic would start to be
housing is being built. reduced. Furthermore, the people living within California’s
largest cities have some of the lowest environmental impacts
The California legislature has just passed a bill to limit in the U.S. This comes from a combination of not needing air
rent price increases, which, while well-intentioned, will conditioning, being less likely to drive cars and environmental
ultimately fail to help the housing problem. The problem regulation in the cities and California. Increasing the size of
in California is not that existing housing is too expensive, urban parts of these city areas would dramatically reduce
it is that this expense happens because there is simply not the carbon footprint of California as a whole.
enough housing options in the first place. If it were just a
rent price problem, then there would be a surplus of empty This bill has sat stagnant for months, as it has divided the
apartments and homes in California, with people just California legislature. Some are scared that the increased
unable to rent there. The simple truth is that not enough development could price people out of the market, as
housing is being built. developers may elect to build high-cost places to live rather
than homes that could be afforded. With all due respect
This is not just a practical question in California – rent to California’s politicians, this idea is at best ignorant and
controls have time and time again proven ineffective in at worst pandering spurred on by a detest for any and all
reducing housing costs and homelessness. In fact, the of the economic literature on the topic. When looked at
Washington Post referred to rent controls as “the one policy in a contemporary or historical lens, the development of
all economists can agree is bad,” as it is fundamentally inept and creation of more housing in a market with a constant
at solving the real problem at hand; there are not enough demand will always decrease price. Gentrification is
places to live. This is not a carte-blanche, conservative, already a massive problem in California’s urban centers and
anti-government intervention argument. In fact, there is suburbs, specifically because not enough housing is built
a state intervention in the California housing market that to satisfy the demand.
would do a whole lot to address this issue. Furthermore,
it is contained in a bill already proposed in the California If the California legislature truly wanted to actually make
State Senate. movement on solving California’s housing crisis, they
would pass the bill they’ve already written, Senate Bill 50.
California Senate Bill 50 would attack existing zoning laws
in California. Outside of the very center of California’s The author, Logan Graham, is a student at St.
major cities, local zoning laws prohibit housing that is not Olaf College in Minnesota. His major is presently
single-family housing. This is because the constituents undecided. The opinions expressed in this article are
deeply involved in local governments want to see their those of its author and not necessarily those of the
home values go up and have misaligned incentives that Apartment Association of Greater Los Angeles. This
lead them to pass zoning law to keep others out of the article was first published in the Manitou Messenger
market. This bill would forcefully change much of the and is being reprinted with permission from that
zoning law in California to allow for the spread of more publication and the author.
urban housing, including apartment and condominium
The Apartment Association of Greater Los Angeles (AAGLA) is one of the largest multifamily organizations in our area and
we value networking with owners as well as other colleagues that are in the sector. Even though Los Angeles is a large
city, the organization makes it feel smaller and it is great to have resources that you can go to for anything. With their
long-established history, it just makes no sense not being a member.
What type of experience have you had in the multifamily housing industry?
As a general contractor we have built multifamily buildings from the ground up as well as having remodeled hundreds of
apartment units through the years. We are experienced in working in tenant occupied settings and know all the pertinent
building codes that apply to multifamily commercial applications.
Interacting with professionals that “live and breathe” this space every day. Even with our vast experience and knowledge,
we still run into new things almost daily. Codes are changing, laws are changing, and the multifamily business continues
to evolve. Technology is just starting to break into the space both on the management side as well as the contracting side.
Yet, this space is highly specialized and very different from the other commercial real estate asset classes. We can all relate
to one another regardless of the role we have.
Know the laws and know the codes. Be patient and hang on to knowledgeable and loyal team members. They are hard
to come by and are worth their weight in gold.
Gloria Lee is the Coordinator, Membership Communications & Events at the Apartment Association of Greater Los Angeles.
If you would like to be featured in the next issue of Apartment Age, please contact Gloria Lee at gloria@aagla.org.
To access the benefits associated with your membership in the National Apartment Association, register on their website
at www.naahq.org by following the steps outlined below.
Step #1: Access the National Apartment Association website landing page at www.naahq.org.
Step #2: Once you have accessed the landing page of the National Apartment Association website at www.naahq.org,
at the top of the page, go to Login/Register as shown in the figure below:
Step #3: After you have accessed “Login/Register” then click on “Need Help Signing In?” You then have the option to
either create a new account or reset the password if you have logged in once before.
Do it today and get yourself registered with NAA at www.naahq.org. Be sure you are taking full advantage of the many
benefits of your membership in the Apartment Association of Greater Los Angeles.
Residential
Sullivan-Dituri Realtors Income
Commercial
PROPERTY MANAGEMENT
SALES Call...
LEASES Joseph E. Fitzsimons
EXCHANGES William T. Dawson
2111 Wilshire Boulevard
Santa Monica, California 90403 310-453-3341
Serving The Apartment www.Sullivan-Dituri.com
Industry Since 1962 Member of the Apartment Association
❖ Parking Lots ❖ Garage Floor Epoxy Coatings Licensed and Bonded Lic#1018649
8 8 8www.americandecking.org
-203-2083
APARTMENT AGE • JANUARY 2020 19
Member Update
The building, known as the Overlook Hotel, is located on Ocean Front Walk near the Santa Monica Pier. In the
lawsuit, the tenants asserted the building’s 2015 fire was caused by the building’s substandard electrical system
– one of several slum-like conditions cited that also included defective plumbing and fire prevention systems,
insufficient or no heat, mold, and infestations of bedbugs and cockroaches.
After the fire, the tenants were displaced and the landlords failed to pay for required, temporary relocation
benefits. Instead, the owner had filed paperwork with the Santa Monica Rent Control Board to withdraw the
property from the residential rental housing market under the Ellis Act. The former tenants then sought temporary
shelter in local motels provided by the Red Cross and the City. One of the 77-year-old displaced tenants alleged
that the landlords offered her a sleeping bag on the manager’s office floor.
Longtime apartment owner and college professor, Dr. Michael Agopian, was recently elected to
the Apartment Association of Greater Los Angeles Board of Directors for a one-year term starting in
January 2020. Dr. Agopian is a criminology Professor, Researcher and Policy Advisor. He holds executive
management experience in criminal justice from leadership positions in Federal, State and local justice agencies.
Dr. Agopian served by appointment from President George H.W. Bush as Deputy Director, Bureau of Justice Statistics, in
the United States Department of Justice. In 1992 he was appointed Deputy Administrator, Office of Juvenile Justice and
Delinquency Prevention, United States Department of Justice and served until 1993. He was the Juvenile Justice advisor
to two Attorney Generals: Richard Thornburgh and William Barr. Previously he served as Chairman of the California State
Commission on Juvenile Justice and as a Member of the California Council on Criminal Justice, both by appointment of
Governor George Deukmejian (1983-1988).
He is the author of the pioneering book Parental Child Stealing (D.C. Health: 1981) and has published over 18 journal
articles dealing with: youth gangs, missing children, community service orders for juveniles, court diversion, forcible rape,
school violence, jail over-crowding, and drug treatment programs. His research has been cited twice in decisions by the
United States Supreme Court. He has also authored numerous government research studies.
He has been a Professor of Criminal Justice (Graduate Program Director) at California State University, Long Beach; The
Claremont Graduate University; and Chapman University. Professor Agopian earned his Doctorate Degree from the
University of Southern California.
20 JANUARY 2020 • WWW.AAGLA.ORG
MEMBERSHIP SURVEY! PLEASE HELP US
BY TAKING THE SURVEY
Last month, we asked members to help us understand about their experiences and challenges as owners and/or
managers of rental housing, and how they have been impacted by the seemingly endless barrage of new laws and
regulations like rent control and other tenant protections. We asked our members to “TELL US YOUR “STORY” from
the perspective of landlords.
All of us are tired of hearing the tenant groups do all the complaining, much of which is just a bunch of overblown
conjecture. We need to tell our personal stories as owners and property managers who have worked diligently to
provide safe and affordable housing to those living in our local communities, and that have sacrificed and taken
significant risks by investing in rental property.
We asked YOU, our members, to tell us about your concerns associated with owning rental property or if you regret
having invested in rental property. We asked to hear your worst tenant nightmares. We want to know if you’ve
depended on your rental income for retirement and how your earnings may be negatively impacted due to regulations
such as rent control and tenant protections (e.g., just-cause eviction, relocation fees, right to counsel, etc.). WE WANT
LANDLORD STORIES SO WE CAN TELL OUR SIDE OF THE STORY. THERE IS A STORY TO TELL HERE. So far, 34
of our members did just that, they told their story through our survey, and about 20 have said they are willing to help
us by speaking to the media to share their experiences. So far, the survey says:
• 85% “strongly agree” that “Assembly Bill 1482 and other rent regulations will do NOTHING to help relieve the
housing crisis in California.”
• 82% indicated that their property is subject to local (city or county) rent control ordinances.
• 67% indicated that they have owned a rental property for more than 20 years.
• 67% are not the first person in their family to own or manage a rental property.
• 62% indicated that they will own the same number of rental units in the next 5 years, neither planning to buy or to sell.
• 74% “strongly agree” that “Assembly Bill 1482 and other rent regulations make it harder to operate in the rental
housing business.”
• 61% indicated that rent control impacts decisions on making capital improvements or major repairs and that they will
likely reduce such expenditures in the future.
• 50% depend on their rental property income for retirement.
• 50% “strongly disagree” when asked if elected officials take into consideration the viewpoints of landlords.
• 48% reported that their net income from their rental properties has increased over the past five years.
• 38% on their rental property income to support their family’s living expenses and daily needs.
• 29% of responders depend on their rental properties for extra spending money.
So, PLEASE TELL US YOUR STORY. Take the survey at: https://www.surveymonkey.com/r/69VV86Y.
Ms. Sawant, the only socialist on Seattle’s City Council, is well aware of the statewide restriction, but still has proposed
enacting a rent-control policy that would limit annual rent increases to the rate of inflation only if the state Legislature lifts
the moratorium on local rent-control measures. Her hopes hang on the enactment of statewide rent control measures in
Oregon and California and counts on that to help advance the conversation at Washington’s state Capitol.
State Representative Nicole Macri (D-Seattle), who sponsored unsuccessful legislation in 2018 that attempted to have
repealed the state’s ban on local rent-control ordinances, plans to introduce legislation next year that may borrow some
pieces of Oregon and California’s statewide rent-control policies with the intention of limiting how much landlords can
raise rents from year to year, give localities the authority to adopt their own regulations, and set rules governing when
landlords can evict tenants.
The Washington city of Federal Way recently enacted a “good cause” eviction policy through an initiative that local voters
approved in November.
White’s family was shocked and deeply saddened to learn that he had been in the apartment dead
for three years. Distressed by the loss of her son, his mother stated: “My biggest question is, how
in the world could my son have been dead in that apartment and nobody knows anything?” Apparently, White’s mother
had been concerned about her son’s welfare since being unable to reach him, on his birthday in April 2017, and was
completely unaware her son had been living at the building where he was found dead. As an adult and because he was
known to move around, past requests from White’s mother to file a missing person’s report were denied by authorities.
She knew that her son suffered from diabetes and other medical conditions, which was a cause for great concern about
her son’s welfare and her loss of contact. Toxicology tests have been ordered to determine a cause of death.
“JUST KIDDING”
Landlord-Tenant Resolutions for the New Year!
• The landlord’s New Year’s resolution is to help all his friends gain ten pounds so he can
look skinnier.
• The tenant’s New Year’s resolution was to read more so she put the subtitles on here television.
• To kick start his New Year, the tenant took an IQ test and the results were negative.
• The landlord was going to quit all her bad habits for the new year, but then she remembered that nobody likes
a quitter.
• The landlord did not have any New Year’s resolutions because his wife still hadn’t told him what his New Year’s
resolutions are.
• The landlord told his tenant that he loves when they drop the ball in Times Square. He said to his tenant: “It’s a nice
reminder of what I did all year.”
Apartment Age magazine wishes all our readers a very happy and healthy New Year. May all your troubles during the
upcoming year last only so long as your New Year’s resolutions!!!
21 KITCHEN STYLES
ASSEMBLED & IN STOCK
FEATURING
Made in USA
75 VANITY STYLES
ASSEMBLED & IN STOCK
CARMEL
ARCTIC WHITE BELFAST CHESTNUT DARK MAPLE Made in USA
FARMINGTON BLUE GLAZED CHOCOLATE JAMESTOWN
VANITY & TOP CHERRY Made in USA
According to Candidate Warren, “Tenants deserve a cop on the beat, too,” Her
plans for the proposed, new Tenant Protection Bureau are to enforce federal tenant protections such as just-cause eviction
rules for tenants in all federally funded affordable housing developments, regulations to ensure safe and decent living
conditions, and policing landlords to that they do not illegally raise rents or fees in federally-subsidized housing.
Candidate Warren has also proposed a national “right-to-council” fund that would provide legal representation for
renters facing eviction or other issues, and the establishment of federal “just-cause” eviction standards and a right to
lease renewal. She has also proposed creating a national small dollar grant program that prevents families from being
evicted because of financial emergencies.
She also wants to force corporate landlords to publicly disclose data on rental rates and evictions, among other things, to
HUD. What’s next? Perhaps Ms. Warren wants to completely eliminate private property ownership in this country?
OpenScope Studio
Architects
openscopestudio.com
info@openscopestudio.com
(415) 891-0954
• Multi-family specialists
• Value add remodels
• Accessory Dwelling Units
• Pre-purchase consultations
• Feasibility and capacity studies
• Interior / Exterior renovations
• Urban infill
• Mixed-use
RENT CONTROL’S
SELF-DEFEATING EFFECTS
By Steven Malanga, City Journal
When New York State’s legislature passed a bill Rent regulation has insidious consequences. Unable to
strengthening rent controls on apartments in June, New recoup their costs, landlords invest less. Conditions in
York City mayor Bill de Blasio crowed that the legislation buildings, especially those with lower-income tenants,
“will halt displacement . . . and keep working families worsen. Higher-income renters spend their own money on
in the homes they love.” Yet one of the biggest eras of upkeep, and the additional costs wipe out much of the
displacement in Gotham’s history happened decades ago
money they save from cheaper rent. “The benefits of rent
because of rent control. Enacted during World War II,
control, from the tenant’s standpoint, are likely to decline
controls squeezed landlords unable to increase rents for
steadily over time,” a 1997 study by the Department of
maintenance, repairs, and fuel prices until owners began
Housing and Urban Development found.
abandoning buildings by the thousands during the late
1960s, driving out middle-class residents, stranding the poor
in deteriorating apartments, and creating immense tracts Fallout from rent regulation accelerates during recessions,
of poverty in formerly stable blue-collar neighborhoods. suggesting that the effects in New York will become worse
when the economy slows. That’s what happened in the
Billed as tenant-protection legislation, New York’s latest sixties and seventies, when the city faced a bloated budget,
rent regulations, which make it more difficult for landlords business-killing taxes, and a worsening national economy.
to raise prices on apartments that they upgrade or that Landlords, charging rents that hadn’t kept up with costs
become vacant, mark a return to the disastrous policies of for 20 years, were buffeted by escalating inflation and
the displacement era. But because New York’s progressive soaring fuel costs. Thousands of owners, many of them
legislators can’t repeal the laws of the marketplace, the
small landlords, lost their buildings to lenders, or simply
effects have already begun to show. Two owners of large
walked away from them. One former Bronx landlord,
portfolios of buildings with rent-regulated apartments
Gertrude Schneider, told City Journal in 1990 that she and
have already started falling behind on mortgage payments.
Sales of rental apartment buildings in New York plunged her husband had accumulated 15 small rental buildings
50 percent in the first quarter after the legislation was that they hoped to use for their retirement. They lost all
enacted, and now some owners face the prospect of being but one. Values declined to the extent that one of their
saddled with buildings operating at a loss, with a value less buildings—carrying a $65,000 mortgage—could sell for
than their mortgages. only $12,000. The city took control of more than 100,000
units of abandoned housing, spending $5 billion to
None of this should be surprising. Decades of bipartisan rehabilitate many of them.
research tell us that controls on rent suppress real estate
values, diminish property taxes, and reduce investments in By contrast, after Massachusetts voted to abolish rent
housing. A 1988 Peat Marwick study estimated that rent
regulations in 1994, property values soared in Cambridge,
controls resulted in a $4 billion loss of taxable assessed
which had had controls for decades. A 2014 study
residential property in New York, depriving the city of
published in the Journal of Political Economy estimated
$370 million in annual property taxes—the equivalent of
that deregulation boosted values some $2 billion over 10
more than $800 million in today’s dollars. A 1994 study in
Berkeley, California, a city of 110,000 residents that had years, thanks in part to a 45 percent increase in the worth
rent regulations for more than a decade, found that the of deregulated properties. The study found that values rose
city lost some $1.6 million a year in property taxes, the even in buildings not subject to regulation because of the
equivalent of $3 million in today’s dollars. spillover effect of higher values in neighborhoods.
As in past years, the annual festivities included the installation of the Association’s Board of Directors and of its
Board of Directors President, Earle Vaughan, who will be leading the Association for the third consecutive year. At
the event, re-installed President Vaughan also gave thanks to two of the Association’s retiring directors, Leonardo
Wilborn and Danielle Elliott.
Honored guests in attendance included many current and past elected officials from both State and local elected
offices, including: City of Grand Terrace Council Member, Sylvia Robles; Los Angeles City Council Member, Mitch
O’Farrell; Los Angeles City Controller, Ron Galperin; Los Angeles County Assessor, Jeffrey Prang; Former State
Senator, Kevin de Leon; Former State Senator, Roderick Wright; Assembly Member, Mike Gipson; Assembly
Member, Miguel Santiago; Assembly Member, Sydney Kamlager-Dove; Assembly Member, Tom Lackey; Assembly
Member, Al Muratsuchi; Former Los Angeles City Council Member, Jan Perry; Culver City Vice Mayor, Goran
Eriksson; and Fontana Council Member, Jesse Sandoval.
The 2020 Annual Bill was issued in December 2019, and it contains the updated annual RSO fee of $38.75 per unit. As
this RSO fee is effective for 2020 and thereafter, if an automatic payment has been scheduled through your
bank, please update your authorized payment amount. This will prevent underpayment of your RSO fees.
The 2020 SCEP fee remains unchanged and is still $43.32 per unit.
NEW for 2020: Owners can still pass-through 50% of the costs of the RSO fee but may do so only on a monthly basis
instead of one-time per year in the amount of $1.61 per month. You no longer have the option to pass-through the
RSO fee at one-time and may only do so monthly in equal installments. Owners may still pass-through the SCEP
fee on a monthly basis in an amount equal to $3.61 per month.
Your payment should be RECEIVED by HCID+LA on or before March 2, 2020 to be considered on-time. If payment is not
received by the due date, starting March 3, 2020, delinquent fees will be assessed on the account. To avoid delinquency,
HCID+LA highly recommends you use the Online Customer Payment Portal, which includes the option to make mobile
payments, making the payment effective immediately. You can access our secure and user-friendly CP through the
website www.hcidlabill.org. It is fast, you can avoid the lines or postal service delivery delays, and you are certain that
payment is made correctly by receiving an electronic payment confirmation email.
We have worked hard to enhance the user’s experience of the Customer Payment Portal, and this can be easily accessed
via a computer or a mobile device. Customers can:
• Add all the properties owned and manage their billings using one single account;
• Pay HCID+LA fees and request exemptions;
• Receive payment confirmation emails and RSO certificates;
• Submit forms online to HCID+LA by attaching documents;
• Save time registering by using our FAST Payment feature;
• Set-up an owner-representative account to allow online access to your agent/management company;
• Use credit/debit card or ACH (E-check) to make payments, with no service fees;
• Access helpful online video tutorials to guide you through any doubt about the payment process;
• Consult the Frequently Asked Questions (FAQs) and easily contact HCIDLA for any questions concerning the bill received.
Access to your online account can be completed easily by entering the Assessor’s Parcel Number (APN) and Statement
Number, available at the top-right corner of your Annual Bill. We also make sure that options are available for those
customers who do not have access to a computer, making dedicated computers available at HCIDLA public counters
(listed online at http://hcidla.lacity.org/Public-Counters or on the reverse side of your bill), where trained staff can help you
accessing the Customer Payment Portal. Please note that payments in-person at the HCID+LA Public Counters are limited
to six properties per visit.
You can also pay by mail. The USPS “Postmark” is not accepted as an indicator of a timely payment. Mail delays are also
not accepted as justification for a payment received after the due date. If paying by mail, you are encouraged to mail all
payments at least 10-days prior to the deadline, to ensure timely receipt.
Our Annual Bill package also comes with a Frequently Asked Question or “FAQ” sheet to assist you with the general
questions. Moreover, through our website www.hcidlabill.org you can receive assistance in accessing your account or
registering your property online, and also contact us using the portal or via email at HCIDLA.billing@lacity.org or calling
the HCID+LA Billing Helpline at (877) 614-6873.
We encourage you to visit our website at, www.hcidlabill.org and make all fees’ payments online, to ensure that the
payment is received on time. We want this to be an easy experience for you, we are positive the process is more efficient,
and we are always eager to learn from your experience in paying your Annual Bill.
Socal Retrofit
12222 Bell Ranch Drive
Santa Fe Springs, CA 90670
Tel 323-300-6630 Fax 323-300-6029
info@socalretrofit.org www.socalretrofit.org
Lic No. 967771
SPECIALIZING IN APARTMENTS
& COMMERCIAL BUILDINGS
CALL US TODAY!
Take advantage of our experience to FOR YOUR FREE QUOTE
get the most out of your investment 213.487.0800
Fire District Parcel Tax. On Tuesday, December 3, 2019, Interim Rent Control Ordinance, Related Expenses and
FOR SALE
determine the most economical way to strengthen
your buildings with minimum impact on the
function and use of the building.
(310) 474-1013
FREE STRUCTURAL EVALUATION CONTACT: STEVEN FOONBERG
CALL 800.443.2125 or 310.625.3467 WESTSIDE REALTY GROUP, INC.
THE OLDEST INDEPENDENT REAL ESTATE OFFICE IN LOS ANGELES (SINCE 1911)
We have learned that you might be the owner of a wood soft-story building
that may need to be retrofitted.
Step 2: Prepare seismic retrofit plans and submit for review and approval.
AMA
AMA Construction Services, Inc.
536 W. Arrow Hwy, Ste. 201
Covina, CA 91722
8
06
35 $891 03 50,000 (dual) $792
APARTMENT FINANCING
M I S S I O N VA L L E Y B A N K . C O M
Branches located in:
SAN FERNANDO VALLEY SANTA CLARITA VALLEY
CORPORATE HEADQUARTERS CENTRE POINTE BUSINESS BANKING CENTER
9116 Sunland Blvd., Sun Valley 26415 Carl Boyer Drive, Santa Clarita
818.394.2300 661.753.5693
310-397-3220
12216 Venice Blvd , Los Angeles, CA 90066
www.dickstruevalue.com
CO &CO/Smoke Detectors
Combo Photoelectric Smoke & CO Detector
BRK SC7010B
Heater Valve
710-502
$54.99
$79.99 Ionization Smoke & CO Detector
BRK SC9120B
Kidde Carbon Monoxide Alarms (6-Pack) 21006249 at The Home Depot
$44.99
6-Pack Kidde Battery Only
CO Detector
21008908
$119.99
ALL APARTMENTS MUST HAVE EITHER CO
P188200LF OR COMBO CO/SMOKE DETECTORS BY 12/31/2012
AMM COUPON
FLUIDMASTER SALE AMM COUPON
91¢
$5.49 20% off
Single Sided....
KEY SPECIAL:
Double Sided....$128
$4.00 House lock cyclinder:
Expires 1/31/20 all new window screens (no limit)
rekeyed or masterLimit
keyed (no
25 with limit)
coupon only *COMPLETE SCREEN SERVICE AVAILABLE
http://www.homedepot.com/buy/electrical/home-automation-security/kidde/contractors-6
Gavin Newsom wrapped up legislative business in his first his veto. Several lawmakers this year reintroduced bills
year as Governor on Sunday, October 13, approving 870 of that Brown vetoed, taking their chances with a new,
the 1,042 bills that made it to his desk. Governor Newsom’s more progressive Administration. Those bets paid off in
final decisions were mostly as anticipated, but his veto rate many cases. Smoking at state parks and beaches will now
was higher than many predicted and the delivery of his be banned. Childcare workers will now be able to form
signings and vetoes was noteworthy. unions and public universities must provide medication
abortions to students.
Most of Newsom’s bill signings occurred in press releases
packaged by issue areas, allowing him to demonstrate Assembly Bill 1482, Statewide Rent Control and
his Administration’s priorities. For example, on October Tenant Protections Signed by the Governor
12 he announced his approval of six anti-fossil fuel bills
in conjunction with the appointments of two individuals Governor Newsom opposed Proposition 10 last year,
to the California Department of Conservation. Consistent the ballot measure that would have repealed the Costa-
with this pattern, Newsom launched a statewide “rent and Hawkins Rental Housing Act. After its failure, Governor
housing tour” on October 8 during which he visited different Newsom asked the Legislature to introduce bills that
California cities while signing multiple bills that seek to would give renters some stability. In his signing message of
address the state’s housing crisis – including Assembly Bill Assembly Bill 1482, he stated “about a third of California
1482, which caps rent increases across the state.
renters pay more than half of their income to rent and
are one emergency away from losing their housing…One
The Governor completed his work on bills Sunday night
essential tool to combatting this crisis is protecting renters
with a press release thanking the Legislature and touting
from price-gouging and evictions. The bills signed into law
California’s efforts to “defend our state from Trump’s
today are among the strongest in the nation to protect
attacks.” He highlighted his signature and the Legislature’s
tenants and support working families.”
action on “passing the Nation’s strongest statewide rent
protections” (Assembly Bill 1482), in addition to measures
Assembly Bill 1482 limits annual rent increases at 5% plus
that expand access to healthcare, enhance wildfire mitigation,
the change in cost of living, as measured by the Consumer
and expanding tax credits for low income families.
Price Index (CPI), for all rent increases occurring on or after
March 15, 2019. Beginning on January 1, 2020, it also
Governor Newsom’s veto rate this year matched Governor
requires rental property owners to have “just-cause” in
Brown’s highest veto rate at 16.5%. He emphasized that
the bills he vetoed would have cost the state $1.2 billion order to evict tenants for tenants who have occupied a
and referred-back to his inauguration speech, in which he unit for at least 12 months, or up to 24 months when an
“spoke of the California Dream as a house – one that must adult tenant is added onto a lease (change in roommates).
be built on a strong fiscal foundation”. He said that for that The new law does not amend the Costa-Hawkins Rental
reason, he vetoed bills that “would significantly increase Housing Act, so existing local rent control ordinances that
costs outside of the state’s regular budget process.” One are more stringent than Assembly Bill 1482 still apply.
of his high-profile vetoes was Senate Bill 5 by Democrat
Senator Jim Beall, which would have allowed for millions Despite passage of Assembly Bill 1482, another initiative
of dollars in property tax funds to be used for affordable on statewide rent control is likely in November 2020,
housing. Even though Newsom has made housing a as tenant protection groups (e.g. the AIDS Healthcare
priority and has called for 3.5 million new units by Bulletin Foundation’s Michael Weinstein) do not believe Assembly
2025, he rejected Senate Bill 5, stating such a significant Bill 1482 goes far enough.
cost should be considered through the budget process.
Outside of Assembly Bill 1482, multiple other key bills
As with every California Governor over the last several were considered by the Governor within the housing
decades, far more bills received Newsom’s signature than space. Below is an overview of some of the notable bills:
• Senate Bill 5 (Beall), Affordable Housing and Community Assembly Bill 36, which would have amended the Costa-
Investment Program – Senate Bill 5 was one of the first bills Hawkins Rental Housing Act to allow local governments to
introduced this year to address the housing crisis. It would apply rent control units in use for 20 years or more, and
have allocated up to $2.0 billion in property tax revenue Senator Durazo carried Senate Bill 529, which would have
to fund affordable housing over the next three decades. imposed just-cause eviction rules and the formation of
Cities and counties could have applied for the funding tenant associations. Bills outside the rent control / just-cause
and used it for transit oriented or other housing related space that did not make it to the Governor this year include:
initiatives. In his veto, Newsom said “legislation with such
a fiscal impact needs to be part of budget deliberations so • Assembly Bill 36 (Bloom), Costa-Hawkins – Assembly Bill
that it can be considered in light of other priorities.” 36 was introduced in March by Assembly Member Richard
Bloom (D-Santa Monica). It would have modified Costa-
• Senate Bill 127 (Wiener), Transportation Funding: Hawkins and allowed local governments to apply rent
Active Transportation: Complete Streets - This bill would control policies to units that have been in use for at least
have established a process for Caltrans to add complete 20 years. It also would have allowed local jurisdictions to
streets components to certain state highway projects. apply rent control to single-family homes if the property
The Governor, again, supports the concept of the bill but owner owns ten or more single-family residences. It was
believes the bill is costly and too prescriptive. In his veto strongly opposed by the realtors and rental housing groups
message, he referred to his executive order under which and was pulled from consideration in April. Assembly Bill
Caltrans is increasing its investments in active transportation 1482 was ultimately the bill that contained the rent control
where feasible. deal that passed.
• Assembly Bill 386 (E. Garcia), Agricultural Working • Assembly Bill 53 (Jones-Sawyer), Tenant Applications –
Poor Energy Efficient Housing Program - This bill would Criminal History - This bill would have prohibited landlords
have created the Agricultural Working Poor Energy from inquiring or requiring applicants to disclose criminal
Efficient Housing Program to improve energy efficiency history when applying for housing. The AIDS Healthcare
for farmworker housing. Similar to Senate Bill 5, Newsom Foundation, labor and others supported the bill and several
vetoed Assembly Bill 386 because of the fiscal pressure rental housing and business groups opposed. It was never
it would have placed on the state, believing it should be heard in Policy Committee so it became a 2-year bill and
addressed through the budget process. will be back in 2020.
• Assembly Bill 684 (Levine), Building standards: Electric • Assembly Bill 69 (Ting), Accessory Dwelling Units -
Vehicle Charging Infrastructure – Assembly Bill 684 sought This bill would require the Department of Housing and
to establish building standards for the installation off electric Community Development to submit building standards for
vehicle charging infrastructure for existing multifamily ADUs and homes under 800 square feet to the Building
dwellings and nonresidential developments. Although Standards Commission by 2021. The bill had a long list
he agreed with the intent of the bill, Governor Newsom of supporters but was opposed by the Fire Chiefs and
believed the issue should be addressed administratively. Fire Districts Associations, who had concerns with the
increased pressure the bill would place on fire departments
• Assembly Bill 1590 (Rubio), First-time Homebuyer Tax due to increased construction of ADUs. Assembly Bill 69 is
Credit - This bill would have created a nonrefundable tax a 2-year bill, so it will be eligible to be considered next year.
credit for low-moderate income first-time homebuyers.
Although it cleared the Legislature with no opposition, • Assembly Bill 234 (Nazarian), Seismic Retrofit Tax Credit
the Governor believes it should be addressed through the - This bill would have created a tax credit until 2025 equal
budget process given the potential costs. to 30% of the costs paid by a taxpayer for seismic retrofits.
It died in the spring on the Assembly Appropriations
Bills That Did Not Make it Out of the Legislature Suspense File.
Assembly Bill 1482 was not the only rent control bill • Senate Bill 50 (Weiner), Development Incentives - This bill
introduced this year. Assembly Member Bloom authored would have required local governments to allow for the
• Senate Bill 529 (Durazo), Tenant Associations - Senate Upon conclusion of his bill signings and vetoes, Governor
529 would have allowed renters to form tenant associations Newsom stated that he looks forward to a continued
and required landlords to allow those associations to meet partnership with the Legislature. Lawmakers will return
and distribute leaflets and information on the site of the to Sacramento on January 6th for the second year of
property. Property owners would be prohibited from the 2019-20 session, and Governor Newsom’s proposed
attending association meetings unless invited. In addition, budget will be released the same week. The budget will
the bill would have implemented a just cause requirement for provide a glimpse into what his priorities will be for 2020,
the eviction of tenant association members. Tenant groups and we expect housing to once again be one of the
and other consumer groups supported the bill, which was Governor’s priorities.
sponsored by Tenants Together. Rental housing groups were
opposed and were ultimately successful in stopping Senate
Capitol Advocacy has been consistently ranked
Bill 529. It failed on the Senate floor in May.
as one of California’s top lobbying firms. The firm
• Senate Bill 592 (Wiener), Housing Accountability Act specializes in lobbying, strategic planning, coalition
- This bill is sponsored by the California Association of building, budget advocacy, procurement, and political
Realtors and amends the Housing Accountability Act to involvement. Capitol Advocacy represents the
extend the Act’s protections to Accessory Dwelling Units interests of the Apartment Association of Greater
(ADUs) and certain ministerial decisions. When it initially Los Angeles in association with its affiliation with the
surfaced, opponents erroneously believed that it was a California Rental Housing Association.
reintroduction of Senate Bill 50. It is much narrower. It was
The threat of a major earthquake looms large in 2020 Los Angeles County ranks as the number one region for
and presents major concerns for California. Thirty years earthquake damage and loss, according to the United
after the devastating Loma-Prieta earthquake of 1989, a States Geological Survey. A recent study at U.C. Berkeley
U.S. Geological Survey geologist is calling the Bay Area a performed by the California Geological Survey supported
“tectonic time bomb,” and the head of the U.C. Berkeley that finding, ranking potential damage in Southern
Seismological Lab is warning that “Loma-Prieta was not California higher than that of any other part of the
the big one” — an even more destructive quake is waiting state, including San Francisco. The California Geological
to strike. Survey found that in Southern California, a magnitude
WWW.KTSLAW.COM | 915 WILSHIRE BLVD, SUITE 1650, LOS ANGELES, CA 90017 | 213 3370050
1st Month's Free Management Service for properties Los Angeles Ordinance #183893
10 Units and Up with a 6 Month Signed Contract
SERVICES OFFERED
Leasing Only Service(With or Without Property Management)
24/7 Full Service Property Management Service
Regular Property Inspections
Code Enforce Inspection Compliance
Maintenance Coordination License #599455 Since 1990
Aggressive Rent Collection
Eviction Coordination Engineering & Construction
Monthly Financial Reports
Rent Control Inspection & Compliance
Tenant Complaints
R&R Property Management & Leasing Service
626-818-7654 / 626-797-1214
R.Leasing@yahoo.com
www.rnrpropertymanagementandleasingservice.com
818-965-9800
www.nadconstruc on.com
60 JANUARY 2020 • WWW.AAGLA.ORG
Looking for a reliable
COMMERCIAL PEST MANAGEMENT
TERMITE TREATMENTS
HEAT TREATMENTS
Since 1967, Corky’s has been effectively servicing Southern California. Our RODENT SERVICE
business is built on providing custom pest control solutions based on each
customer’s needs and industry challenges. Corky’s licensed technicians work BED BUG SERVICE
with you and your tenants on-site for immediate solutions as well as long term
maintenance and prevention. And unlike most pest services, we physically remove
the pests and the unsightly debris. COCKROACH SERVICE
Go with a reliable company. Call Corky’s today for a free commercial consultation BIRD SERVICE
and estimate.
BAT SERVICE
corkyspest.com
1-800-333-7138
Call for a FREE estimate.
Mon.-Thu. 7 a.m.- 9 p.m. • Fri. 7 a.m.- 7 p.m. • Sat. 8 a.m.- 2 p.m.
© 2015 Corky’s Pest Control registered trademark
your arguments rehearsed. You sit and wait for your case
to be called. You sit and wait. You sit. You wait. Then
suddenly you realize, it’s lunchtime.
Imagine if you will that you keep on coming into court landlord’s attorney in an Unlawful Detainer Court.
trial scheduled for July 17, 2019 not held – continued to “Updated – Amended Complaint 1st: Name Extension:
August 16, 2019.” Stipulation? Really? I appeared ready 1st; as to Parties changed from Erica Hurrah (Defendant),
for trial with proposed joint documents in hand on each Louie Hurrah (Defendant), Socorro Sassy (Defendant),
and every trial date. Eric Hurrah (Defendant) to Louie Hurrah (Defendant),
Erica Hurrah (Defendant), Socorro Sassy (Defendant), Eric
The period of June 3, 2019 to July 17, 2019 became a Hurrah (Defendant)”
bizarre odyssey of Defendant’s Motions to Compel Discovery
responses for discovery never served, which was denied, What does that mean? And why is that even a court
and for further discovery on the discovery served which docket entry? The complaint and First Amended Complaint
was granted “in part.” What were the further discovery are identical as to parties. It is continuing madness from
responses granted “in part?” Changing all “N/A” answers 14 pages of 49 court docket entries beginning with
to “Responding Party is not aware of any” and to change “Updated” regarding Defendants’ Motions to Compel said
a small handful of the hundreds of discovery requests to
entries providing no information and don’t even appear to
conform with the “a-b-c-d-e” response format. There were
be internal corrections, just a bunch of gobbledygook!
no substantive changes or additions. No sanctions were
imposed, however, Judge Wrong invited us to file a motion
BUT…backing up just a tad…After we filed the first
for sanctions for having to appear and oppose a motion
amended complaint, the Defendants served HUNDREDS
to compel discovery that was never served. Following the
OF PAGES OF DISCOVERY REQUESTS and Deposition
judge’s advice, we did. The motion was denied.
Notices, substantially identical to the first set, and even
called them each “Set One.” I spent hours responding with
But Judge Wrong didn’t JUST deny it, it was a long and
objections. And they filed a NEW SLEW OF MOTIONS TO
drawn out process requiring multiple appearances:
COMPEL to further delay the case.
2019 in order to review the paperwork and purportedly to proposed joint documents trial binder in hand. Defense
give us an opportunity to reply. He called this continuance counsel shows up unprepared and requests a continuance.
a “Stipulation” of the Parties.” If a stipulation can be Court docket entry: “Pursuant to oral stipulation (meaning
unwilling and forced, then it was a stipulation. forced and unwilling), Non-Jury Trial scheduled for
September 20, 2019...held - continued was rescheduled to
Oddly missing from the court’s docket is Defendants’ October 11, 2019.”
Motion for Judgment on the Pleadings. The basis? The
Three-Day Notice to Quit attached to the complaint refers Then on October 11, 2019, I show up in court prepared,
to the 60 day notice NOT attached. As a result, the judge fresh cleaned suit, and again, hair brushed flat, and with
granted it, and we filed a First Amended Complaint (using proposed joint documents binder (pursuant to The Los
“60 day” notice). Angeles Superior Court Third Amended Standing Order) in
hand. In comes another BASTA attorney who has never
But the oddness does not end there. There is an entry on before appeared on the case. This new attorney says trial
August 21, 2019 that goes like this: counsel is on vacation. He also served me with a Motion
Delta Carpet
Servving California Since 1985
Warehouse, Inc.
979 S. La Brea
B Avenue Store ho
ours:
Inglewood CA 90301 10:00 am
m– 5:00 pm (M - F)
Weekendds by appointmeent only
Every housing provider should try to fill vacancies nine months ago and has been paying it consistently on
as quickly as possible (after all, time is money), but time. She is building her credit history and her score will
skipping the following essential screening steps may likely trend positively if she keeps making timely payments
result in renting to a nightmare tenant and loss of rental and perhaps opens more lines of credit. When comparing
substantial income. TenantAlert’s recent survey of 1,100 John and Jane, Jane would be a lower risk applicant even
rental property owners showed that 20% of owners do though their scores are the same.
not collect a valid proof of identification and only 32%
collect a social security number. When it comes time to MISTAKE No. 2: Not Running a Criminal Background
sue or collect from a delinquent tenant, it can be nearly Check
impossible to locate them without the right name or
government issued identification. To ensure you keep Many owners have a “feeling” about an applicant and
your rental income (and your sanity), make sure you think it’s not necessary to run a background check on
aren’t committing the following common mistakes when every tenant, but on some tenants they may. Although
screening your tenants. your intent may not be to discriminate, changing your
screening policies based on your intuition could be
MISTAKE No. 1: Relying Solely on a Credit (FICO) deemed a violation of the Fair Housing Act, so make sure
Score to Make Your Decision to treat and screen every tenant equally.
A tenant’s credit score is only one data point of many that The only reason not to run a criminal background check
should be considered when determining an applicant’s is if your applicant is under the age of 18 or if you plan to
financial state. Don’t just look at the FICO score but look never run a criminal background check on any applicant –
at trends. which we advise against. Your due diligence as an owner
or manager is to first ensure that your other residents
For example, let’s say John Smith has a 680 FICO score are safe. Should anything happen on your property
– not bad right? Think again! For many years he has you’ll want proof that you ran a background check and
had six credit cards, a car loan, and a student loan, and considered the nature of the crime, if any. If the reason
although he has always paid his bills on time, about 6 you are not running a criminal background check is that
months ago he made several late car payments and was you fear a housing discrimination lawsuit, be sure to
sent to a collection agency for an unpaid phone bill and review HUD’s guidelines on the topic and consult with
auto insurance bill. His score may be at a 680 for now, the Apartment Association of Greater Los Angeles or your
but he is certainly trending negatively. His score is not attorney to verify the records and how to properly decline
bad, but that’s really because he has an extensive credit the applicant.
history of which he spent most of it paying his bills on
time. His recent trends, though, can make him a high-risk MISTAKE No. 3: Not Collecting a Government Issued
applicant. Identification or Social Security Number
On the other hand, for example, Jane Doe also has a 680 Although California law prevents you from requiring that
FICO credit score. She just opened her first credit card an applicant provide their Social Security number, you
Kyle Crown: President | David Crown: Founder and CEO DRE: 01931033
www.coadyinsurance.com
nets &
i
Cab uartz
q nters
TARZANA, CA
Includes:
coutalled
*
FREE Stainless Steel Sink
ins
$5995 FREE 2 pcs Solid Quartz Counters
FREE Handles up to $100
Visit our showrooms and let our expert
*Pricedesigners
based on 20LFhelp create
of cabinets your
& two next
pieces kitchen
of solid today!
quartz pre-fab
Visit our showroom and let our expert designers help create your next kitchen today!
Check the lights on the entire property, including pool Your Los Angeles City Business license is due for renewal.
light once every week. Clean the trash areas once per City of Los Angeles Code Enforcement and City of Los
month. Check / repair all railings at least once per month. Angeles Rent Registration is due by the end of the month.
Meet with vendors to go over safety at your property and
Re-seed grass and add seasonal flowers. Schedule to
discuss what is going right or wrong and how to improve
have laundry service clean behind dryers (e.g., prevent fire
conditions at your building. Calendar professional service
hazard). Clear rain gutters and check roofs for debris.
of all fire extinguishers and fire equipment.
March
January
Business tax returns must be filed by March 15th. Service
Make a schedule and calendar residents rent increases for all heating and air conditioning units, including cleaning
the entire year. Get a current market survey to determine coils and checking freon for leaks (cheaper to check air
market rents for upcoming rent increases and any vacancy conditioning system before the hotter months). Check and
if needed repair and seal all magnesite decks. Order smoke
(many people move during February and March). Update
and carbon monoxide combination alarms with ten-year
manager contracts and tenant leases with any changes in
battery life and buy a can of smoke to test alarms. Check
law (there are new ones every year such as notices required
walkways for fall or trip hazards, and grind concrete as
for Assembly Bill 1482). Make sure all the signs on your
necessary or call city (in Los Angeles you just need to dial
property are up to date - check with the Apartment
“311”) to remove trip hazards on city sidewalks.
Association of Greater Los Angeles to see if any laws
have changed so you can be compliant. Send 1099’s to April
vendors. Review financial data for improvements and
prepare and send the financial statements to your Certified Smoke and carbon monoxide alarm should be checked.
Public Accountant. Make sure all required devices are present and have not
November
June
Trim trees, re-seed grass, clear roofs, clean gutters and
Service water heaters and lubricate 100-gallon boilers and downspouts of leaves, etc. Make sure tenants have
Raypak units. Palm trees should be trimmed during the someone to contact over the Thanksgiving holiday in case
months of June to August - get bids Have all parking of emergency. Clean sediment build-up from 100-gallon
gates serviced and checked for proper operation and safety tanks, lubricate circulating pumps. Ask anyone to turn on
equipment. Schedule paint touch ups - meet painter at their ovens in early November and actually cook something
the building and have them do a mock-up if complete in oven (even a frozen dinner or pie) before the holidays
repainting is required. as many vendors will not come out on those days. Finalize
budget for the upcoming year.
July
December
Obtain bids for monthly recurring services (pool, trash, Distribute notes on tree disposal and fire prevention tips
elevator, pest control, gardening, alarm, etc.). Apply such as disposing of Christmas trees, lighting and candle
touch-up paint on buildings and fences. Schedule to use safety. Winter is known to be one of the slower seasons
have laundry service clean behind dryers. Serve notices to for rentals, but also the season that sees increases in
tenants on July 2nd to collect rent registration in August accidents and crime. Reduce occurrence of winter-related
for Rent Controlled buildings only. risks and injuries, including: Carbon Monoxide poisoning,
Fires, Slips and Falls by making sure your property is well
August maintained and that your tenants are well informed.
Inspect and make repairs to asphalt and re-seal as necessary. Kari Negri is the Chief Executive Officer of Sky
Hydro-jet all main sewer lines to clear sludge and grease Property Management and is a member of the Board
build-up. Get tree trimming bids prior to the month of of Directors of the Apartment Association of Greater
November. Trim palm trees. Have furnace serviced before Los Angeles. For questions, you can reach Kari at
the cold season begins. Kari@SKYprop.LA
www.ReassureRent.com/AAGLA
833-3TENANT (833-383-6268)
info@reassurerent.com
O
ALS • SEWER & DRAIN CLEANING • GAS MAINS • DISPOSALS
• WATER HEATERS • LEAK DETECTION • EARTHQUAKE VALVES
Contemporary Information Corporation (CIC) has just 1. Summer Vacations. According to Business Insider,
released the credit, criminal and eviction data for July people spend an average of $1,979 annually on summer
2019 through September 2019 and discovered that your vacations – with both West and East coasters spending
tenant’s FICO scores have trended downward. “FICO,” more on vacations than Midwesterners do. As this quarter
originally known as Fair, Isaac and Company, is a data was in the thick of Summer, its likely rental applicants
analytics company based in San Jose, California focused used their credit cards to take care of their Summer
on credit scoring services - its FICO score has become the vacation expenses.
standard measure of consumer credit risk.
2. New Renters Enter the Market. A big factor that
CIC’s quarterly data analysis highlights the number of could be contributing to the decline in FICO scores are
rental applicants that have criminal and eviction records the newest generation of renters. In our full credit score
on their tenant background checks, as well as the average
analysis, you can see that the rise in ‘poor’ and ‘very poor’
FICO credit score. Compared to the last quarter (April 2019
scores increase month-to-month. For ‘very poor’ scores
to June 2019), the average FICO score has declined slightly,
alone, it goes from 13.1% in July to 15.2% in September!
which is likely due to Summer vacation spending and the
As most colleges start their Fall semester in September, it’s
increased number of college student rental applicants.
likely that rental applicants with student-debt, or first-time
renters, might be aiding in the average FICO score decline.
FICO Scores Dipped in the Third Quarter
Dear Maintenance Men: once a year may help cure your chronic grease stoppages.
We highly recommend doing a mainline drain maintenance
just before the holidays each year.
I have an opportunity to buy a small
power snake for cleaning out kitchen and Dear Maintenance Men:
bathroom drains. At the rate my tenants I have a parking area at my building with
block their drains it should pay for itself concrete bumper stoppers. The problem
in no time! Is this a good idea? is that when the cars touch the stopper,
Dale S., Alhambra they move. How do I attach them to the
Dear Dale:
parking lot? Bill W., Oxnard, CA
Dear Bill:
From our standpoint, almost any excuse is a good reason to
If you have an asphalt parking lot, it is quite easy. Most
buy a power tool! However, most bathroom and kitchen
concrete bumper stoppers have two holes that go through
drains can be cleared with a three-foot hand snake. The
from top to bottom. These holes are just the right size to
tub or shower will typically have a hair stoppage just past
fit a piece of half inch rebar rods. Pick up two either 12-
the tub shoe and the bathroom sink will have a toothpaste
inch to 18-inch pieces of rebar for each stopper. Place
and hair stoppage in the trap before the wall. The kitchen
the rebar through the holes in the stopper and then use a
sink will typically be stopped on the garbage disposal
sledgehammer and pound the rebar into the asphalt.
side because of improper usage of the disposer. When
both sides of the kitchen sink are blocked, then it may be
If your parking area is concrete, use a hammer drill with
necessary to use the power snake.
a ½ inch concrete bit to drill a hole in the concrete. Use
your existing parking bumper as a guide. Either drill down
But power snakes can be very dangerous. Most operate
through the holes in the bumper stop to the concrete
with a ¼ to ½ horsepower motor, which packs quite a
below or use powdered chalk poured down through the
punch, especially if your finger or arm gets caught! If you
holes in the bumper stop to mark the concrete. Then drill
buy this snake, we highly recommend that you get some
all the way through the concrete until you hit dirt. Hammer
training on your machine. Power drain cleaning is very
your rebar into the bumper and concrete. If the fit is loose,
much an “art” when done well. Knowing the difference
pour some concrete into the parking lot holes and then
between hitting and clearing the stoppage and when the
insert the rods.
snake is snagged comes with experience. A broken snake
cable in your drain system will be far more expensive than
simply calling an experienced plumber when needed. Dear Maintenance Men:
Another thought is that most kitchen stoppages are caused I’m about to start a remodel project in
by grease. Your power snake will only temporarily clear the one of my units. Can you give me some
stoppage. Getting a company to “Hydro-Jet” your drains tips on drywall repairs? The previous
80 JANUARY 2020 • WWW.AAGLA.ORG
residents were very hard on the walls and be sure to use wallboard tape to reinforce the joint. The
tape comes in paper or fiberglass and will ensure the joint
I want to learn how to do the repairs.
will not crack in the future. Using a ten-inch taping knife,
Thanks. Benjamin E., Calabasas, CA apply a thin layer of joint compound. Then immediately
press the joint tape into the compound and use a four-inch
Dear Benjamin: taping knife to smooth out the tape and let dry.
If there are holes in the drywall, you can use mesh drywall
patches (Available at any hardware store.) and drywall Again, using your 10” knife apply another layer of joint
mud to do the rough repair. If the holes are larger than six compound over the tape and let dry. Finally, apply the
inches in diameter, cut the damaged area out. finish layer of compound and let dry. Use sandpaper or a
Cut out enough material to reach a stud on either side wet sanding sponge and sand the joint until it is smooth.
of the repair. Typically, a square hole is best. Cut a new After all is dry; texture to match surrounding walls.
piece of drywall and nail or screw it into place using the
exposed stud on either side. After completing the rough
Frank Alvarez is licensed contractor and the Operations
drywall repairs, comes the finish work. Use wallboard
Director and co-owner of Buffalo Maintenance, Inc.
joint compound and joint tape on all seams, nail or screw
He has been involved with apartment maintenance
holes and corners. Joint compound can be found at any
and construction for over 20 years. Jerry L’Ecuyer is
hardware store and comes in quart, gallon and five-gallon
a licensed contractor and real estate broker. Jerry
buckets ready mixed.
has been involved with apartments as a professional
since 1988. For more info please go to: www.
Plan on applying three coats of compound material letting it
BuffaloMaintenance.com.
dry between coats. When doing repairs to joints or cracks,
LANDLORD
TENANT LAW
UNLAWFUL DETAINER
Representing
Landlords
for over
35 Years
LAW OFFICES OF
FRED M. SZKOLNIK FREE SEMINARS - (626) 551-4326
A LAW CORPORATION
www.evictionsla.com WWW.TFSPROPERTIES.COM
2060 HUNTINGTON DR. #1 SAN MARINO, CA 91108
(818) 986-3888 (310) 571-3888 (323) 937-3888
Today’s residents are not just relying on Facebook boards that showcase your property (rooms, amenities,
recommendations or Craigslist to find their next multifamily events), as well as boards that provide tips and tricks for
home. They are now turning to alternative tools for research, commonly searched apartment topics. Make sure not to
guidance, and inspiration, such as online bookmark and go overboard with the number of boards so that you can
picture-sharing site Pinterest. What once was a site for keep all of them active and create descriptions for each
teens to share crafts and recipes with friends is now a one. Consider creating the following boards:
profitable social media platform for savvy marketers. With • Interior decorating tips
more than 150 million monthly users, Pinterest provides • Neighborhood guides
a refreshing way to maintain and enhance your search
• Easy recipes for entertaining
engine optimization (SEO) efforts.
• Space-saving tricks
• Household hacks or craft ideas
While Pinterest relates more to social shares and
engagement metrics rather than technical SEO tactics and
3. Research & Include Keywords - Perhaps one of
backlinks, the pinning platform spurs more than 2.0 billion
the most important aspects of Pinterest is to include
searches each month. Additionally, more than 250 million
appropriate keywords as part of your “pins.” Each “pin”
of those monthly searches are visual searches — opening
needs to contain keywords in the title or description to
the door for significant multifamily marketing potential.
increase its relevance in search engines and direct more
people to your boards. To accomplish this, you will need
So, how do you build (and maintain) a strong presence on
to conduct thorough research on your target residents to
Pinterest? Below, we explore a few ways to get started and
discover what they are most interested in and searching
make the most of this growing social media platform. for online. Also, Pinterest offers a guided search tool to
help find more relevant results and narrow down the focus
1. Start a Business Account - The first step requires of searches. Once you type in a keyword or topic into the
creating a business account and not personal as this will search query, Pinterest will suggest semantically related
give you access to the Pinterest advertising manager and modifiers, which indicate some of the most popular search
analytics tracking. Use your property’s full name in your queries related to your topic. Keep track of these popular
account and be sure to include all necessary descriptive queries and past them into a document that you can keep
information in your Pinterest background, including on hand when pinning new content to your boards.
contact information, logos, and any building or community
amenities or features you would like to highlight. 4. Develop a Strategy & Be Consistent - While Pinterest
may operate a little differently than other social sharing
2. Create Your Boards - Pinterest boards are the topics networks, that does not mean you can create an account
that you use to organize your content. You should create and occasionally log on to pin posts. Just like your other
visit the site less often. Accordingly, varying your timing optimize SEO.
GUARANTEED!
Lic# 697088
SARAH LEE
INCOME PROPERTY LOAN ASSOCIATE
SARAHL@UNIVERSALBANK.COM
EARTHQUAKE RETROFIT
OFFICE: (626) 854-2818 EXT. 188
ERAM0819
1031 Exchanges should be reported on the tax ture, unrecaptured Section 1250 taxable gain, and
Investors often think 1031 Exchange Qualified Intermediaries (QI’s) are the same – but they’re not – and the
return for the year in which the 1031 Exchange Section 1231 taxable gain.
differences can be significant and critical. There is no regulatory oversight of Qualified Intermediaries; only about
began.regulated,
1% are licensed, If the audited
relinquished property
or have minimum wasrequirements.
capital sold in Scary,IRS
when you6252
consider how much Sale Treatment
2019 and the replacement property was acquired inbeen regulatoryForm — Installment
money they hold. Most QI failures could have been prevented had there oversight.
2020, the 1031 Exchange would be reported on the You may be able to report all or a portion of the
QI’s are a2019
crucialreturn. Here
part of 1031 is a quick
Exchanges overview
and have of the
three very various
important
taxable gain under the installment sale basis pur-
duties. They prepare documents to properly
structureforms
the 1031that mightwork
Exchange, be with
usedthewhen
investorreporting suant to IRC Section
a 1031to ensure a successful
and their advisors 453 ifand
1031 Exchange you accepted a seller
important responsibility – hold and safeguard the investor’s 1031 Exchange funds. Investors must be consideration from
the mostExchange. carry back note as part of the
careful when choosing a QI. the buyer of your relinquished property by complet-
IRS Form 8824 — Like Kind Exchanges ing IRS Form 6252. There are numerous exceptions
Regulatory Oversight Ensures Safety and Soundness
1031 Exchanges are reported to the IRS on Form for installment sale treatment so always consult with
your tax advisor before proceeding with your trans-
Oversight8824. Part I ofagency,
by a regulatory IRS Form 8824
such as includes
a Division the descrip-
of Banking, Departmentaction.
of Financial Institutions, Office of the
tion of your relinquished and replacement proper-
Comptroller of the Currency or the Federal Reserve Board, ensures the QI is operating in a safe, sound and secure
manner,ties,
whichdate the relinquished
is important since they haveproperty was sold,
such tremendous date
fiduciary duties.
the replacement property was identified to your Failed 1031 Exchanges
QualifiedQualified Intermediary,
Trust Accounts and Funds
Protect Investors’ the date the replace- You may still qualify to defer your capital gains
ment property was acquired. These last two items if your 1031 Exchange fails. It’s possible that you
aredeposit,
QI’s should hold and
to ensure yousafeguard
have 1031 Exchange
complied funds
with in separate,
the may have
45-cal-segregated, a partial tax-deferred
dual-signature Qualified Trust exchange or may be
Accounts. The court ruled in the LandAmerica 1031 Exchange bankruptcyable case to
thedefer the
1031 Exchange incomefundstaxes
were from the failed 1031
endar day identification rule and 180-calendar day
corporate funds and subject to creditor claims since the funds were not Exchange held in a Qualified
into Trust
the Account income
following as tax year under
Exchange period.
permitted by the Treasury Regulations. Qualified Trust Accounts classify 1031the Exchange funds as trust
installment sale funds and not
rules. It will depend on your
Part should
corporate funds II of IRS
the QIForm
file for8824 goes into related party
bankruptcy.
questions. Part III is used to calculate your gain specific situation and when you have the right to
access your 1031 Exchange funds.
Bonding,on the sale
Insurance andof yourProvide
Capital relinquished property and your
Financial Strength
adjusted cost basis in the replacement proper- Mark C. Turok is a Business Development Officer with
ty. maintain
QI’s should The fair marketfidelity
significant valuebond,
of your
errorsrelinquished
and omissions and
insurance coverage
Exeter 1031and capital reserves
Exchange as a LLC and Exeter Trust
Services,
safety net against losses inproperties
replacement a 1031 Exchange. Investigateliabilities
is required, methods used
thatby the QI to protect and safeguard clients’
Company and is based out of the National Corporate
funds. were paid off on the sale of your relinquished prop-
Headquarters Office located in San Diego, California.
NO Substitute for Experience and Expertise
Built to Endure
Investors need more than a processor. They need a QI for guidance on best practices in structuring a 1031 Exchange.
Interview prospective QI’s to ensure they have
Turnthe
to technical
Exeter fordepth,
a betterexperience and expertise
1031 exchange necessary
experience. duefrom
It comes to the
knowing you’re working
complex nature of 1031 Exchanges. Investors need
with support,that
a company so the QI must be
is licensed, advisoryand
regulated andaudited
consultative
by theinWyoming
nature Division of Banking.
and willing to work with investors and their advisors for a successful 1031 Exchange. It’s not the size of the QI that
One that has the requisite experience and expertise to consult and collaborate with investors’
matters, but how they manage, control risk and protect the investors’ 1031 Exchange funds.
legal and tax advisors.
A firm with high levels of fidelity bonding, E&O insurance and equity capital. Where
practitioners have decades of experience and have weathered the winds of change.
404 Camino del Rio South, Ste. 600
A firm like Exeter 1031 Exchange Services, LLC.
San Diego, CA 92108
Qualified Trust Accounts administered by Exeter Trust Company.
(866) 393-8370
exeterco.com Cheyenne • Chicago • Ft. Lauderdale • Los Angeles • Newport Beach • Phoenix • Seattle • San Diego • San Francisco
• Your right to raise rent to market when tenants move out will be restricted – vacancy de-control will be
illegal!
• Rent control will be expanded to single family homes and condominiums when more than 2 are owned.
• Will result in the loss of local revenues leaving less funding for our schools, and police and fire
departments.
The Apartment Association of Greater Los Angeles (AAGLA) and others have launched a
statewide to defeat this latest ballot initiative that threatens your property rights. JOIN US IN
THIS FIGHT TODAY!
Contributions to Issues PAC of Apartment Association of Greater Los Angeles – No on Prop. 10 are not tax deductible.
Paid for by Issues PAC of Apartment Association of Greater Los Angeles – No on Prop. 10.
Stay informed. Sign up at www.aagla.org to get our latest emails and keep up to date!
PR E- RE G I S T E R N OW
INCOMEPROPERTYEXPO.COM
H UN D R E DS OF V E N DO RS & E D U CAT I O NAL S E M I NARS
To reserve a booth call us today (800) 931-6666
Your
Healthy Choice
for Vending
*some restrictions may apply as to size of property, number of tenants and other criteria. Minimum 75 units preferred.
**commissions are paid quarterly.
Tenant Eviction
Efficient and Effective legal representation. We have recovered over $155,000,000 for Don’t be vulnerable! Extensive experience
Attorney fees of $95 to $150 plus costs for an our clients. No fee if no recovery. Put the in Asset Preservation strategies for high net
uncontested residential eviction. No office visit
power of an experienced law firm to work for worth individuals, including domestic and
required, start case by email or over the phone.
you. off-shore entities and strategies.
Residential and commercial evictions handled in
all courts and counties throughout California.
With few exceptions, the recent passage of AB 1482 will • Transient and Tourist hotels.
change how landlords do business. Signed by Governor
Newsom on October 8, 2019, the new law requires just • School Dormitories.
cause prior to termination of tenancies and imposes
statewide rent control. • Housing accommodations in a non-profit hospital,
religious facility, extended care, elderly or adult residential
Which Properties Are Covered by the New Law? facility as defined.
The new law will apply to all California residential real • Housing that has been issued a certificate of occupancy
property, except: within the last 15 years.
Unlike At Fault Just Cause evictions, when terminating If gross rent was increased between March 15, 2019
based on No Fault Just Cause, the tenant is entitled to but prior to January 1, 2020, in an amount less than
receive the equivalent of one (1) month’s rent through the allowable increase, rent may be increased within 12
either a direct payment or a waiver of the last month’s months of March 15, 2019 up to the allowable amount.
rent. Note: The tenant is not entitled to retain the
relocation assistance if the tenant fails to timely move out. Additional Information – Vacancy De-Control is
The owner can recover these damages in an unlawful Unaffected / Sunset Date
detainer complaint.
Vacancy Decontrol (e.g., per the Costa-Hawkins Rental
Rent Control Housing Act) is unaffected by this new law. When a
unit becomes vacant, either after eviction or voluntary
Effective January 1, 2020, annual gross rent increases will move out, the rent can be adjusted to market without
be limited to five (5) percent plus the regional Consumer restrictions. AB 1482 does not change existing law.
Assembly Bill 1482 sunsets (is no longer effective) as of 12 months or more or at least one of the tenants has
January 1, 2030. continuously and lawfully occupied the property for 24
months or more, a landlord must provide a statement of
What You Need to do Now cause in any notice to terminate a tenancy. See Section
1946.2 of the Civil Code for more information.”
If you have issued a notice of change of terms increasing
the rent that resulted or will result in a new rental rate as The statutory language should be in 12-point font in
of January 1, 2020 that exceeds the allowable percentage notices and lease agreement documents.
increase as stated above, then you should provide notice
to your residents that effective January 1, 2020, the new Conclusion
rental rate will be reduced to the maximum allowable
rental rate. For example, if your rent on March 15, 2019 This legislation will not create a single additional housing
was $1,000.00 and you subsequently increased it during unit here in California. It will do absolutely nothing to
the remainder of 2019 to $1,250.00, your maximum increase the housing supply in California. Assembly Bill
allowable rental rate on January 1, 2020 would be 1482 is poorly drafted, confusing, vague and ambiguous,
$1,083.38 if your property is in the Los Angeles / Long mis-references statutes, and is overly complicated. In
Beach / Anaheim Region. You should notify your resident short, a tenant lawyer’s dream. It will certainly be applied
that the rent due on January 1, 2020 will be $1,083.38. inconsistently by the courts and will empower and enable
tenant activists with another tool to burden and abuse
If you own residential rental property, you should use the housing providers.
rental agreements provided by the Apartment Association
of Greater Los Angeles or provide written notice, using Housing Providers are not the problem. We don’t need
your association’s revised forms, as required by the new any more interference as we struggle with our many
law by July 1, 2020. For your tenancies that existed prior existing challenges in providing housing to the residents of
to July 1, 2020, the notice may, but is not required to California. Legislation is reactive. Our legislators respond
be in the lease agreement. For tenancies commenced to angry letters and phone calls from constituents by
on or renewed after July 1, 2020, the notice must be crafting legislation, some good, most not. Let’s not give
contained in the lease agreement. The required notices our legislators any reason to ‘help’ us further. Knee jerk
are as follows: termination notices or maximum allowable rent increases
are not the appropriate response.
If your property is exempt: “This property is not subject
to the rent limits imposed by Section 1947.12 of the Civil Thorough Tenant Screening is critical, get to know your
Code and is not subject to the just cause requirements prospective residents, before they become your problems.
of Section 1946.2 of the Civil Code. This property meets Actively manage, use current association tenancy forms,
the requirements of Sections 1947.12(d)(5) and 1946.2(e)
update regularly as required, improve your documentation
(8) of the Civil Code and the owner is not any of the
of activity during the tenancy. Assembly Bill 1482 provides
following: (1) a real estate investment trust as defined
certain challenges and hurdles and will change how we
by Section 856 of the Internal Revenue Code; (2) a
do business however it also provides opportunities that did
corporation; or (3) a limited liability company in which at
not exist previously. Don’t panic, we’ll be just fine.
least one member is a corporation.”
This article is presented in a general nature to address
If your property is non-exempt: “California law this recently passed legislation. Specific inquiries
limits the amount of your rent can be increased. See regarding a specific situation should be addressed
Section 1947.12 of the Civil Code for more information. to your attorney. The firm may be reached at (714)
California law also provides that after all of the tenants 279.1100 or (800) 829.6994. Please visit www.
have continuously and lawfully occupied the property for DuringerLaw.com for more information.
ADVERTISE WITH
APARTMENT AGE
MAGAZINE
www.aagla.org
www.gustonblinds.com
We all want to sell property without paying capital gains There are; however, a few nuances to be mindful of
tax. The most obvious way is a tax-free 1031 Exchange. before entering the transaction. First, do not accept an
Many owners are doing tax free exchanges by purchasing offer to sell before agreeing with a charity the terms of
other residential rental income properties or triple net the transaction. Second, choose a charity that will work
lease properties. Some owners are leaving the state with you and your advocate to negotiate the right type
because of rent regulations and are tired of dealing with of transaction and trust. Third, it is important to agree
problem tenants. If you do not want to get into triple net on the rate of return and length of the annuity. Fourth,
leases or acquire another residential rental property, it is it is best to establish how the property will be marketed if
possible to sell without paying capital gains tax. the charity will not be keeping holding onto it. Finally, the
value your property needs to be reasonably established
Federal and state capital gains taxes will be about 30% before the transaction.
combined. So, after paying the taxes only 70% of the
property value can be reinvested and earning income. Some charities are too small and unsophisticated to enter
Then, if you must pay inheritance tax, your heirs will this type of arrangement. Other larger universities and
receive significantly less. With some advanced planning, charities will take the property but are only willing to pay a
100% of you net value can be earning income and paying small percentage on the annuity. Therefore, it is important
you a larger monthly annuity. to have a knowledgeable advocate to independently guide
the process and get you the best terms and annuity rate.
There are several approaches you can take to earning Then the property can be sold in consultation with you, so
income through a monthly annuity such as through a you understand the value of your annuity. I have assisted
Charitable Gift Annuities (CGA). Since the property is sold many owners avoid taxes with gift annuities working with
without income tax, the full sales price is earning income. different charities.
Some of the larger charities and universities are willing
to accept an asset such as income property and give you The use of Planned Giving can offer many financial, tax
an agreed-upon value which is a little lower than the and estate planning opportunities in addition to the
true fair market value. However, with careful planning comforting thought that the assets will be used to benefit
and choosing the right charity, it is possible to have the a worthy organization. This is just a brief overview of
charity sell your property in a coordinated transaction and charitable gift annuities. As they say, “the devil is in the
you get an annuity on the full sales price net of standard details.” I have a saying that the Internal Revenue Service
sales costs. The annuity income can be payable for is a large partner in everything that we own or earn. My
you and your spouse’s entire life. Generally, the annuity strategy is to keep them as my “Silent Partner.” It is not
rate is significantly higher than what you would earn always what you earn but what you get to keep after
investing with a bank. I have seen rates between 4%-7% taxes. Similarly, it is not how much you own but how
depending on your age and other considerations. You much you can pass to your heirs or give to charities.
can also choose to be paid for a specified number of years
(e.g., up to 20). Carl Lambert is the principal of Lambert Investments,
Inc., a real estate brokerage, syndication and property
You can also protect your heirs using life insurance. management firm that focuses in Santa Monica and
The life insurance proceeds can pass to the heirs free of the Westside of Los Angeles. He holds a law degree
inheritance tax. Generally, the extra income generated from Southwestern University and an undergraduate
by the annuity trust is enough to pay your life insurance
business degree and Master of Taxation degree from
premiums. You will also receive a substantial charitable
Pepperdine University. You can reach Mr. Lambert
income tax deduction which can be used to offset up to
at (310) 453-9656 or carl@lambertinc.com. For
50% of your adjusted gross income over a six-year period.
information go to www.lambertinc.com.
Capital gains and inheritance tax may then be eliminated.
Contact
Jessica Garcia at
(213) 384-4131
ext. 311
jessica@aagla.org
• General Cleaning
• Window Wash
• Shampoo-Waxing
Twins Cleaning Co.
Cell: 323-215-8615
Fax: 626-281-9346
Fjgcool@aol.com
818-248-7719
323-665-4037
crossappliancerepair.com
213 321 1445
constructionbycarlos@gmail.com
- CALL FOR LOW PRICES -
You Tried The Rest "Now Try The Best" 1
AdvanceFire-2019-01.pdf 12/17/18 4:15
213- 364-2262
C
Payments
Available DIRECT: M
What We Offer...
LOW PRICES - FREE ESTIMATES Lic. #886297
Up to 10 Years
Guaranteed
Y
CM
Fire Extinguisher
MY
Fire Alarms
GREEN
GREEN ROOFING
ROOFING CO.
Fire Suppression Systems
CO.
CY
Fire Sprinklers
CMY
Hands On Fire Demonstration
H Reasonable Prices!! K
CA LICENCE #570689
*$760 Uncontested
Serving all of LA County & San Fernando Valley • View results in seconds • Get credit, eviction,
• Landlord or tenant pays criminal, SSN verifier,
Fully Insured California License #641112
• No damage to score OFAC, and more!
LOOKING
FOR NEW
BUSINESS?
80 Advertise in Apartment
Age Magazine, and
make your business
services available to more
apartment owners and
managers monthly.
WHITE WHITE
30” GAS RANGES 24” DISHWASHERS
Only $34900 Only $25900
700 COLORADO AVE., SANTA MONICA 90401 (AT 7th St.)
310-450-8585 | 310-450-9292 | TOLL-FREE: 855-28-FEDER
Open Monday-Friday 800am-600pm | Saturday 9am-2pm | Closed Sunday
SERVING
ALL OF CALIFORNIA
NO OFFICE VISIT
REQUIRED
"ONE CALL STARTS YOUR EVICTION"
LA AREA COURTS
LANDL ORD
LEGAL SERVICES
L.A., Glendale 323-870-3311
San Fernando Valley 818-660-1919
Pasadena,
San Gabriel Valley 626-443-3882
Long Beach, South Bay 562-513-6220
Santa Monica, W.L.A. 310-837-9458
Orange County 714-533-8080
San Bernardino,
Riverside Counties 909-824-8080
FAX # 310-204-4631
www.landlordlegal.com
KOREAN
KOREAN NEWS NEWS
한국어 한국어
뉴스 뉴스
로스앤젤레스 2시 임대료
3 안정화
, 조례 (RSO)
( 등록 ) 로스앤젤레스
이전에 카운티 반대표를
임대료 동결안에 감독위원회는
던졌던 현행
감독관임시 임
캐서린
비 인상 . 대료 안정화
바거도 이 제안에조례(RSO)를 2020년 3월 31일까지
찬성표를 던졌다.
연장하고 2020년 4월 1일부터 시행되는 영구 임
로스앤젤레스시는 2020년
9 월 10 일, 산타 모니카 시의회는1월임대료
1일에관리
임대료
조례에안정
따라 대료 안정화 조례를 제정하는 조례를 채택했습니
화
허용조례 (RSO)
가능한 일반 수수료를 단위당
조정 금액보다 $38.75로
임대료를 인상한인상했습
임대인이 다. 감독위원회는 또한 영구 RSO를 시행하기 위
니다.
이사를소유주는 여전히
가게 될 때, 테넌트
3 유닛 이하의에게 수수료의
소유자도 50
이사비용 해 임대 주택 감독위원회를 만드는 조례를 통과
%를 통과 할 수 있습니다, • 최대 연간 허용 임대료인상은 대부분의 경우 최대
수수료를 지불하도록 하는 종전에는 1 년에
새로운 조례를 한 번이
통과시켰다. 시켰습니다.
받았지만 앞으로는 매월 받습니다. 8%까지 소비자물가지수(CPI)의 변화에 의함.
2019 년 일반 인상 율 2%로, 월 임대료가 종전 요금은
최대 44 렌
달러 이상
탈 단위당 $24.51였습니다. •카운티의
주인 입주에 대한지역은
비법인 제한과 연간
테넌트3 무과실 퇴거 요구
%로 임대료 인
인상되었다. 2019 년 7 월 1 일부터 시행되는 (이사
사항이 충족되지 않는
상을 제한하고 퇴거, 세입자
카운티의 다시 돌아올
통합되지 수 있는
않은 지역 내
비용)이전 수수료는 1 유닛 15,850 달러에서 방 2 개이상의
로스
유닛은앤젤레스시 엘리스다양하다.
30,350 달러까지 법 시행 노인,
절차에 따른 건물
미성년자 또는
"정당한
의 모든원인"
임대 권리에 의한대해
단위에 퇴거 규칙.
“정당한 원인”없이 퇴
에 제한을 제안함.
장애인이 있는 가구는 수수료가 인상됩니다.
•거를
다음과 같은 상황에서 테넌트에게
금지하는 임시 임대료 동결 지불:
유예 "무과실"퇴거,
대상이되
보수공사로
었습니다. 인한 임시 이동, 수리 또는 리모델링, 임차인
1985년에 채택된 엘리스 법은 캘리포니아의 집주 매수; 및
인이 임대 주택 사업을 벗어날 수 있도록 허용하는 •2020년
로스앤젤레스, 산타 모니카,
4월 1일부터 영구비벌리힐스 등 도시와 다음
(RSO) 조례에는 같은
의회 법안 1482,
캘리포니아 주 전체 임대 "최상 허가 한도" 법안이
법 조항입니다. 필수
조항이임대포함됩니다.
레지스트리 작성.
주지사 Newsom시는
로스앤젤레스 이 법안
엘리스서명함으로 통과시켰다.
법 절차에 의회
따라 입주자
법안 1482
에게 지급되는 이사비용
는 주 전체 상대로 지원금액을 부과, "무과실"
임대료 제어를늘리고, 신축 엘에이 카운티 이사회는 직원들에게 소유주의 아파트
• 임대료 인상은 12개월 당 1회 인상으로 제한되
에 필요한
퇴거에 대한적정 규모의 단위를
이전(이사비용) 늘리고,
수수료의 지불을건물 철거
요구하고, 업데이트 수리 비용을 테넌트 에게 비용 분담 통보할 수
며, 임차인에게 부과되는 비용을 포함하여 소비자
로 인해 전락한
집주인이 "정당한임차인에
원인"퇴거 대한
규칙을새건물 거부권을
준수하도록 우
강요한다. 있는 조례를 소유주를 위해 포함하도록 지시했다.
물가지수(CPI)의 변동을 최대 8%까지 초과할 수
선순위로 부여할 수 있는 부동산에 대한 개정을 검
있습니다.
, AB1482:
토하고 있다. : 2019/2020
• “정당한 사유” (Just Cause) 세입자퇴거에 대한 제
또한, 로스앤젤레스 시는 임대 안정 조례의 적용
• 현재 임대료통제 대상이 아닌 모든 임대 건물 대상으로, 한된보험
올해 이유,시장
임대료 미납을
환경은 포함하여
지난 35 년 동안 목록들을 퇴거
그 어느 때보다
을 받는 건물과 비렌트 통제 건물에 대해서도 엘
연간 인상 한도는 5%, 최대 10%까지 소비자물가지수 규정으로
빠르게 합니다.
변화하고 있습니다. 거의 모든 업종, 자동차, 주택,
리스 법 절차를 시작한 건물을 시정부가 “우선 권
(CPI)의 변동율에 더한 (Plus) 숫자입니다. • 소유주
아파트, 입주는
임대 최대
주택의 2유닛으로
보험비는 신규 제한되며 소유주
사업과 기존 사업
리”로 매입할 수 있도록 하는 소유주들에 대한 우
• 지난 15 년 이내에 지어진 새 임대건물 그리고 단독주택 또는 소유주의
모두에 대해 보다친척이
엄격한차지할
기준을수적용하는
있는 단위에
것과 엄격
함께
선 거부 권리를 강제로 하는 것을 검토할 것입니
과 주인이 한 유닛 살고 있는 2 유닛(Duplex) 임대는 이 한 요구 오르고
보험료가 사항을있다.
배치합니다.
많은 보험회사들이 최악의 보험금
다.
번법안에서 면제됩니다.
• “무과실” 사유로 퇴거 된 임차인에게 지급되는 이
청구 경험을 겪었고 그들은 심각한 적자에 처해있다.
• 10 년 "만료" 기간
전 (이사 비용) 수수료는 조례에 명시된 이사 비용,
로스앤젤레스 시 홈으셰어링
로 측정 되어있습니다.
(Home Sharing)조례 상황이 곧 나아지지 않을 것이다.
카운티 평균 임대료의 3배, 그리고 아파트 규모에
• "정당한 원인”에 의한 퇴거 규칙을 부과합니다. 보험회사들은 홍수로 인한 수해 청구, 거주성 청구 등
따라 측정됩니다. 노인, 미성년자, 장애인 및 저소
로스앤젤레스 시는 단기 임대를 허용하는 조례안 소송이 늘고 산불로 인한 화재 피해 등으로 피해를 입었다.
로스앤젤레스 카운티 감독 위원회, 영구임대차 규제 득 가구들에게는 추가 이전 지원이 적용됩니다. 또
을 제한된 소유자 대상으로 채택하였으며 이는 그 결과, 많은 장기 보험회사들이 캘리포니아 시장을
영구화 요청 한 소유주들은 임차인을 돕기 위해 이전 전문가를
2019년 7월 1일부터 시행되었다. 이 주택공유 조 떠나고 있다.
고용해야 합니다.
례에 따르면 1년 중 최소 6개월 동안 살며, 본인의
9 월 10 일, 로스앤젤레스 카운티 감독 위원회는 만장일치로 • 아파트 수리, 건강 및 안전 위반등 으로 인한 작
주 거주지로(primary residence)사용하는 경우, 소
11 월 12 일 이전에 포괄적 영구임대차 관리 조례를 업으로 인해 임시 주거이동시, 임차인에게 렌트비
유주는 1년에 120일 이하의 단기 임대로 자신의 주
제정하기로 결정했다. 또한 예상치 못한 상황의 전환으로, 일당을 계산해서 반환이 요구 됩니다.
택을 임대 소유주 ”호스트”로 시에 등록하고 연간
• 소유주들은 이미 임대 중이거나 임대 가능한 모
등록비를 지불합니다.
든 아파트 단위를 매년 등록하고, 등록비를 납부해
야 합니다. 등록비의 50%는 임차인에게 동일한 월
시 렌트 컨트롤 조례(RSO)에 소속된 기타 유닛들은
이 단기 임대를 못하게 금지 되어있습니다. 지불로 요청 할 수 있습니다
• 위반시 건당 하루에 최대 $1000 벌금 또는 형사
관의 (Richard Thornburgh and William Barr) 청소년 사법 세입자는 소유주의 본 방침 채택이 소유주를 세입자의 건강
또는 위에 열거한 지역의 금연 조건 보장자로 자리매김하지
자문 위원으로 활동했습니다.이전에, 조지 듀크메지안(Gov-
않음을 시인한다. 소유주는 실제로 알았거나 서면 통지를 받
ernor George Deukmejian,1983-1988)캘리포니아 주지사의
지 않은 한 흡연 위반에 대한 조치를 취하도록 요구되지 않
임명을 받아, 그는 캘리포니아 소년 정의 위원회 (California
을 것이다.
State Commission on Juvenile Justice) 의장과 형사 행정학
의원회의 (California Council of Criminal Justice) 의원으로 일
Use of Premises/구내 활용: 구내외부에서 나는 소리나 소음,
했습니다.
공용 구역에서의 시끄러운 대화 또는 큰 소리가 나는 활동은
어느 때든지 허용되지 않는다. 모든 악기, 텔레비전, 라디오, 스
그는 선구적인 책 Parental Child Stealing (D.C. Health:1981) 테레오 등은 귀하의 구내 밖에서 들리지 않도록 오로지 적당한
의 저자이며, 청소년 갱단, 실종 아동, 청소년들을 위한 사회봉 음량으로 사용해야 한다. 거주자나 방문객에 의한 약물 또는
사 명령, 법원 전환, 강제 강간, 학교 폭력, 교도소 과밀수용 및 술 취함(Intoxication), 무질서한 행동, 불쾌감을 주는 언어, 또
약물 치료 프로그램 등 18개 이상의 저널 기사를 출판했습니 는 다른 방해 행위는 퇴거사유가 될 것이다. 세입자는 손님의
다. 그의 연구는 미국 대법원의 판결에 두 번이나 인용되었고, 행동에 책임이 있으며 손님이 이 규칙을 준수하는 것을 보장해
또한 정부를 위해 많은 연구를 저술했습니다. 야 한다. 세입자와 손님은 질서를 지키지 않으면 안된다. 임대
부동산은 단지 주거용으로 만 사용해야 될 것이다.
그는 캘리포니아 주립 대학교 롱비치 (대학원 프로그램 디렉 *위 기사는AAGLA 아파트협회 임대계약서 일부를 번역한 것이
터), 클레어몬트 대학원, 그리고 채프먼 대학교에서 형사 행 다. 오역에 대해선 일체 책임이 없으므로 이용하려면 관련분
정학 교수를 역임했습니다. 아고피안 교수는 남가주 대학교 야 전문가의 검토를 받길 바란다.
(University of Southern California)에서 박사 학위를 받았습
니다. 제공: Charles Choi, Board of Director, AAGLA
$VSKDOW2YHUOD\V&RQFUHWH3DYLQJ6WRQHV
• Custom Gutters
• Copper • Bonderized
6HDO&RDWLQJ %ORFN:DOOV6WULSLQJ
Maintenance • Low Rates
Fully
F FSDYLQJ
$'$([SHUWV5DPSV6LJQDJH7UXQFDWHG'RPHV
Lic. #844614 Insured Quality
Work
)XOO\,QVXUHG %RQGHGZZZFDQGFSDYLQJFRPSDQ\QHW
800-825-4225
CARPET CLEANING
SOFAS - RUGS
TILE - WOOD
Family Owned Since 1979
CARPET
Hallway & Stairs • All Repairs • Section Replacements
Odor Removal • Restretching
TILE-GROUT
Stripping-Waxing Scaling • Concrete
High Pressure Cleaning
Be Prepared
NEED TO FIND A NEW COMPANY
It’s Coming!
RELIEF HAS ARRIVED
Higher Premiums
New Programs/Great Rates
Reduced Coverages
Unique Coverages Available
Tougher Standards
Older Property Acceptable
Age Restrictions
Multiple Carriers
Brush Areas Issues
Non-Renewals Build Your Own Policy/Price
Phone: (800)640-4238
“PROTECTING WHAT YOU OWN”TM
Fax: (888) 990-0721 www.fullerins.com
contact@fullerins.com CA Lic# 0802666
APARTMENT AGE • JANUARY 2020 115
139 S. WESTERN AVE. OPEN MON-SAT 8:00 AM TO 5:30 PM
LOS ANGELES, CA 90004 CLOSED SUNDAYS
(213) 384-4916 • FAX: (213) 384-6044 EMAIL: CALLAHAN139@AOL.COM
GARAGE DOOR
PLUMBING • ELECTRICAL • TOOLS • PAINT • SCREEN • GLASS
9
$ 99
EA. OPENERS
APARTMENT MAILBOXES $
3750 As Low As
$
1199 $
1999
KEY NEW SCREENS OR #688 Exhaust Bath Fan
RE SCREENS
To Open or Close
CABINETS &
7299
Your Electric
9
Parking Gate $
DIRECTORY
BOARDS Any Size Up to $ 99 Regular Miniature #154 Surface Mount
116 88
Carbon Only Battery 1403222 $599.00
$ 2203822 $722.40
CD-9000
39 $ 99
$
3900
3003822 $769.65
3499EA
All Colors Gallon
$
Carbon/Smoke Combo
White, Almond & Stainless Steel
For Lighter Brighter $599.00
Monterey
Electric Battery Back Up 2509822 $506.25
9EA
Bigger Rooms
3509822 $539.70
$ 39
Smoke/Fire #5304 14M BTU/3 5009822 $733.43
Electric With Battery
Also Available in Mirror Call For Best Price
ENTRY LOCKSETS
Fits Kwikset Quality
MEDICINE CABINET GARBAGE
Disposals For Homes
LIGHT FIXTURES
16
13” Flush Mount $ 99
APARTMENT HOUSE
PAINT
29
MELON LIGHT FIX
& Apartments
$ 99
$16.50 SKU 12277 White Flat $
1699GAL
5988
Model Navajo White
#2501 $ 15” FLUSH MOUNT Off White
Polished Brass
1/3 HP LIght FIX> $
24 99
Semi Gloss $ 1899 1 GAL
SKU 12244
6199
69
Latex Flat $
Model
$9.00 $ 88 3 Light Chrome 5 GAL
1299
#781045 #2503
Wall Wall Fix. $
$10.00
$11.00
16” x 26” 1/2 HP Semi Gloss $
92996 GAL
SKU 12291
STANDARD
BATH VANITY BASE
PRICE PFISTER GAS WATER HEATERS TUB SHOWER ALL BRASS
NAKED PINE
LEAD - FREE FAUCETS INSTALL IT YOURSELF OR WE
AMERICAN
CAN ARRANGE IT DOORS VERVE FAUCET
30 GAL
53900
$
SATIN
$
50 00 54000
40 GAL $ CHROME
STOCK
56900 01260
9999
50 GAL $
$
18" wide
1999 2999
$
4399EA $3399EA
MANY SIZES & FINISHES OF
VANITIES IN STOCK. CALL FOR $ 100 GAL 199 & 270MBTU $ $
BEST PRICES CALL FOR BEST PRICE HD TUB ENCLOSURE 13999
$
KITCHEN SINKS
STAINLESS STEEL
TOILET FLOOR TILE GFCI OUTLET SHOWER TRIM SET
FITS PRICE PFISTER
1.5 Gal.Water
Saver
79
Tamper Proof
$ 99
16
2395
$ 50 White
9
$ 95 $
TOILET SEAT Per Box
6
2 COMP, 4HOLE
5995
$ $ 99 45/Box
White Only SKU 12936 SKU 85000
STOCK 01000
6 Per Case
108
116 OCTOBER2020
JANUARY 2019••WWW.AAGLA.ORG
WWW.AAGLA.ORG
APARTMENT AGE • JANUARY 2020 117