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$1,000 SIGNING BONUS* WHEN YOU PARTNER WITH THE HOUSING AUTHORITY The Housing Authority of the County of San Bernardino (HACSB) administers various federally funded rental assistance programs and private landlords are essential partners in our effort to house participating families.

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For more information, please visit our website: www.hacsb.com If you have an available unit to rent to an HACSB applicant or participant, or would like to attend one of our monthly landlord workshops, please contact our landlord liaison at 909.890.9533 ext. 5380 or by email at [email protected]. *SOME EXCLUSIONS APPLY. VISIT WWW.HACSCB.COM FOR MORE DETAILS.

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Volume 64 Number 10 October 2022

APARTMENT NEWS PUBLICATIONS, INC. 15502 Graham Street Huntington Beach, CA 92649 www.aptnewsinc.com (714) 893-3971 FOUNDER : Don Smeallie, Sr.

INDUSTRY UPDATE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 FAA NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 By Foothill Apartment Associaiton FIVE CRITICAL THINGS TO REMEMBER WHEN DECIDING TO DO A 1031 EXCHANGE. . . . 14 By Dwight Kay

PRESIDENT: Don Smeallie, Jr. PRODUCTION DIRECTOR: Travis Watson [email protected]

EARTHQUAKE RETROFITTING: AN EXPERT’S HISTORICAL PERSPECTIVE OF THE GREATER L.A. AREA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 By Dave Tourjé

CREATIVE DIRECTOR: Sean Buur [email protected]

APARTMET NEWS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-1 By Apartment Association of Greater Los Angeles

OFFICE ADMINISTRATOR: Jessica Smith [email protected]

THE INCOME PROPERTY MANAGEMENT EXPO (IPME) RETURNS TUESDAY, OCT. 18. CS-13 By Paul Otis

Are you moving or having trouble receiving FEDERAL COMMUNICATIONS COMMISSION (FCC) TAKES NEW, ADVERSARIAL POSITION your magazines? We want to solve it! Email us: [email protected] ON COMMERCIAL PARTNERSHIP REGULATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-17

By Thomas J. Dougherty Jr

FEATURED COLUMNS:

OFFICE CONVERSIONS: A MULTIFAMILY HOUSING SOLUTION THAT NEVER HAPPENED.CS-24 By YardiBreeze HANDLING CRIME, VIOLENCE, & DOMESTIC ABUSE IN AND AROUND RENTAL UNITS . . . . CS-30 By Daniel Bornstein. Esq.

DEAR MAINTENANCE MEN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-38 Handling Crime, Violence, & By Jerry L’Ecuyer & Frank Alvarez Domestic Abuse In And Around Rental Units By: Daniel Bornstein, Esq. Pg. CS-30 AMERICANS WITH DISABILITIES ACT (ADA) COMPLIANCE LAWSUITS CONTINUE TO “SPARK” IN CALIFORNIA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 By Anthony C. Guichard DEAR MAINTENANCE MEN WHAT MANAGERS TOLD US ABOUT FIGHTING APARTMENT APPLICATION FRAUD . . . . .67 By Daniel Berlind

By: Jerry L’Ecuyer & Frank Alvarez Pg. CS-38 PROPOSITION 19 WAS A TOTAL BAIT & SWITCH, PROPOSITION 30 THIS YEAR IS, TOO! .71 FOOTHILL APARTMENT ASSOCIATION REPORTER

By Jon Coupal

WITHOUT A 1031 EXCHANGE, THOSE TAXES CAN BE COSTING YOU MORE THAN YOU THINK. . . 74 By Christopher Miller

Foothill Apartment Association Pg. 8 ADVERTISING DIRECTORY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79 Apartment Management Magazine is published monthly by Apartment News Publications, Inc. at 15502 Graham Street, Huntington Beach, CA 92649. Subscription Rate: $20.00/ year with zip codes beginning with 900-935, (outside of L.A. & Orange counties $69.00/year.). The publisher and Apartment News Publications Inc. assume no responsibility for opinions expressed in articles appearing under an author's name. The contents of this publication may not be reproduced without written permission from the publisher. Bulk rate postage is paid at Bell Post Office BMC, 5555 Bandini, Bell, CA 90201.

For Advertising Information: 1-800-931-6666 4

OCTOBER 2022 - APARTMENT MANAGEMENT MAGAZINE AMM1/6

PETER T. ERDELYI & ASSOCIATES, INC.

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INDUSTRYUpdate California Becomes First State To Broadly End Parking Mandates as Proposals Spread Nationally

G

Lawmakers Aim To Create More Opportunities To Build Affordable Housing in Cities ove r nor G avin Newsom s ign e d legislation to eliminate the mandates for housing and commercial developments near public transportation as the number of cities taking such a step expands around the United States.

Under the new law, scheduled to take effect Jan. 1, California cities no longer can impose minimum parking requirements on new developments within a half-mile of public transit, leaving developers to weigh the costs of adding parking to a project. Some 20 cities across the country have taken similar steps with abolishing parking mandates, and more could be coming. Eliminating parking mandates is part of an effort by California and other states to tackle high costs by building more housing. Developers, planners and housing advocates have cited parking requirements in cities as one of the impediments to building affordable housing. Such barriers have existed for years but took on more importance as housing prices and apartment rents rose amid a stubborn housing shortage. Minneapolis, Boston and New York are among the biggest cities outside California to eliminate minimum parking requirements. In California, San Diego, San Francisco, Berkeley and Sacramento have already abolished parking requirements. But smaller cities have headed, or are heading, in that direction. California’s new law follows a measure that failed last year when lawmakers around Los Angeles and other parts of the state objected to local governments losing control of their zoning. Officials have said California’s housing deficit, which has been estimated at more than 3.5 million units, has caused prices to soar and contributed to increasing the state’s homeless population, which accounts for 6

OCTOBER 2022 - APARTMENT MANAGEMENT MAGAZINE AMM1/6

as much as a quarter of all homeless people in the United States. Housing advocates have had an unlikely ally in their efforts in California and elsewhere. Conservative Washington-based think tank American Enterprise Institute, which favors free-market solutions to affordable housing, has been a strong proponent of ending the parking mandates. The organization supported California’s passage of a bill last year aimed at making it easier to increase density in urban areas that had previously been zoned for low density by removing zoning restrictions. Similar debates have played out elsewhere in the country with proposed zoning legislation unrelated to parking requirements, which portends that proponents of ending parking mandates could have tough battles ahead. California city planners were among the first in the United States to impose minimum parking requirements back in the 1920s, an initiative that accelerated in the 1950s as the state’s car culture evolved. City leaders and zoning officials feared insufficient parking for offices and apartments would cause traffic to spill over into surrounding residential neighborhoods. But over the past decade, California lawmakers, housing advocates and environmental groups have tried to reverse the mandates, arguing they hinder efforts to fight climate change, increase California’s dependency on cars and cause developers to scrap projects because of the added cost. California YIMBY and planning organizations such as the San Francisco Bay Area Planning and Research Association have said the mandates force developers to set aside land and construction dollars that would be better spent building properties to ease the state’s housing shortage.

FA A Foothill Apartment Association Serving the San Gabriel Valley and Foothill Communities for over 45 years Offering:  Comprehensive  Tenant  Screenings   F.A.A.  offers  members  in-­‐depth  background  checks  which  always  include  a  full  credit   history,  unlawful  detainer,  and  FICO  score.  And  we  help  you  learn  to  read  the  reports.  

 Legal  Forms  

Every  kind  of  residential  property  agreement,  amendment,  or  notice  is  at  your   fingertips,  digital  or  hard  copy.  Our  forms  come  with  instruction  sheets  and  have  been   protecting  landlords  for  over  45  years.  

 Member  Meetings  and  Seminars  

Throughout  the  year  we  bring  you  informative  speakers,  seminars,  and  forums  to  help   you  better  understand  and  manage  your  business.  

 Office  Services  

Our  professional  staff  is  here  to  help  you  better  understand  our  industry,  not  to  try  and   sell  you  something.  Our  personalized  service  is  tailored  to  your  needs.    

 Referrals  

Our  Product  Service  Council  is  made  up  of  the  best  local  and  regional  companies  in  the   industry,  referred  and  used  by  our  members  for  decades.  

 Newsletter  

Published  bimonthly,  our  newsletter  keeps  landlords  and  managers  informed  of  all  the   latest  legal  and  industry  news.  

 Advocacy  

For  over  45  years  we  have  been  monitoring  and  fighting  for  rental  property  owners’   rights  on  the  state,  federal,  and  local  levels.  

   

Call  us:  (626)  793-­‐5873,  logon  to  our  website  @  faaonline.net   Or  visit  the  office,  2500  E.  Foothill  Blvd.  Suite  206    Pasadena,  CA  91107  

AMM1/6 APARTMENT MANAGEMENT MAGAZINE - OCTOBER 2022

7

FA A The Foothill Reporter

Newsletter of the Foothill Apartment Association

Foothill Apartment Association Meeting & Event Calendar

F.A.A. Officers 2022 President………Denis Gallonio Vice President… Charles F. Dunn

October 2022

F.A.A. Directors

Board Meeting Monday October 24th, 5:30pm

Fin Beven Mark Hess Ed Miedema Kristen Smith

Gloria Dunn atty. Vincent Medina Frank Rubin atty. Kelly Stanaway

November 2022

Association Director Leon Khachooni

Annual Membership Meeting Monday November 21st, 7pm Topic: Annual Meeting Speaker: TBA

F.A.A. Offices 2500 E. Foothill Blvd. Suite 209 Pasadena, CA 91107 (626) 793-5873 Tenant Screening (626) 793-6640 Fax (626) 793-1930 e-mail:[email protected]

Board Meeting Monday November 28th, 5:30pm

On the Web @ faaonline.net

December 2022

Office Hours: Mon. – Thurs. 9:00am-5:00pm Friday 9:00am-3:00pm Closed for lunch 1:00-1:30pm The Foothill Apartment Association is a non-profit trade association providing information, education, advocacy and member services to rental property owners in the San Gabriel Valley and foothill communities.

Happy Holidays Contact the FAA office for the information on all meetings. (626)793-5873 • Fax (626) 793-1930 [email protected]

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AMM1/6 APARTMENT MANAGEMENT MAGAZINE - OCTOBER 2022

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FA A

FOOTHILL APARTMENT ASSOCIATION

NEWS UPDATE

FOOTHILL IS MOVING TO A NEW OFFICE IN PASADENA

The big news for us this month is that we are moving our office. For the last 17 years we have been located at 2500 E. Colorado Blvd. and we’ve had a great run at that location, but it is time to move on. Our new location will be 596 N. Lake Ave. Suite 204. It is a great new space, and we hope that you get the chance to stop by and say hello. LOS ANGELES COUNTY BOARD OF SUPERVISORS Thank you to those who called in, wrote letters, and helped us lobby the supervisor’s offices regarding the County’s eviction moratorium. The supervisors voted 3-2 to communicate to residents and all cities that the countywide emergency moratorium will be ending at the end of 2022. We should note supervisor Kuehl made it clear she intends to bring back legislation that would potentially try to continue to exert supervisor jurisdiction over incorporated cities. She also made it clear she intends to try to make certain elements permanent where she can. What she intends initially is to allow tenants to bring in pets and roommates (whether they are sublessees or

E REates

F im Est

not) without any changes in the rental rate, the security deposit, and without these changes being viewed as a breech of contract. We also believe Supervisor Kuehl, along with Supervisor Solis will attempt to implement a comprehensive just cause eviction scheme, complete with tenant relocation fees that go far beyond what the state of California or any of our local cities already require. Throughout the Covid Emergency period the County has been implying that it has the authority and the mandate to “protect tenants.” At this point it is very clear that tenants need protection from the onerous living conditions these ill-conceived policies will produce. VOTE NO ON PASADENA’S MEASURE H Again, a BIG thank you to everyone who has contributed to the campaign to defeat Measure H. This measure seeks to shift tenant/landlord law so radically that it is hard to imagine the far-reaching impacts, not only for landlords, but for tenants, and the community as a whole. If you would like a lawn sign or have any questions about the campaign, please call our office. All content within this column is provided for general information only and should not be treated as a substitute for the legal advice of your lawyer or any other financial or legal professional. The FAA is not responsible or liable for any decision made by a reader based on the content of this article. The FAA is not liable for the contents of any external internet sites listed, nor does it endorse any commercial product or service mentioned or advised on any of the external sites listed.

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FA A FAA Product Service Council 2022

A/C, Heating, Appliances

Insurance

Michael Birov (626) 281-1151 (800) 810-7813 www.chiefappliance.com

(800) 298-3000 [email protected]

West Coast Chief Repair, Inc

Apartment Specialist Real Estate

Charles F. Dunn, Sr. Vice President NAI Capital, Inc. (626) 204-1525 Office (213) 447-8266 Cell [email protected] www.charlesdunn.com

Engineering

Alpha Structural

Ben Reinhart 8334 Foothill Blvd. Sunland, CA 91040 (323) 258-5482 [email protected]

Financing

E-Central Credit Union Jennifer Gin 990 S. Fair Oaks Pasadena, CA 91105 (626) 799-6000 ext. 1689 [email protected]

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Dick Wardlow Insurance

Legal Services

Dennis P. Block & Associates (626) 798-1014/(323) 938-2868 (323) 938-6069 Fax www.evict123.com

Property Management The Bantam Associates Linda G. Haque 1155 E. Green St. Pasadena, CA 91106 (626) 844-9000 (626) 844-9016

Beven & Brock

(626) 795-3282 Ext. 111 (626) 795-1331 Fax email: [email protected]

Bryant Companies

Contact: Matthew N. Bryant, JD (626) 441-3141 (B) (626) 441-0892 Fax e-mail: [email protected]

OCTOBER 2022 - APARTMENT MANAGEMENT MAGAZINE AMM1/6

Fertig and Gordon Co., Inc Peter Fertig (626) 793 7138 (626) 793 6349 Fax [email protected]

Jenkins Properties Mgmt. Co. John Kelly, President (818) 957-1156 (818) 542-6855 Fax [email protected] www.jpmc2000.com

Lotus Property Services,

Vincent Medina (626) 582-8001 (626) 582-8005 Fax www.lotuspropertyservices.com

Roofing

Royal Roofing Company Steve Pinkas 6831 Suva St. Bell Gardes, CA 90201 (818) 755-8515 www.RoyalRoofing.com

AMM1/6 APARTMENT MANAGEMENT MAGAZINE - OCTOBER 2022

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FIVE CRITICAL THINGS TO REMEMBER WHEN DECIDING TO DO A 1031 EXCHANGE

I

BY DWIGHT KAY

CEO Kay Properties and Investments, LLC

f you’ve picked up a financial publication recently, chances are you’ve seen references to 1031 Exchanges. A 1031 exchange is a legal way for investors to defer their capital gains taxes on the sale of real estate held for investment or business purposes. It allows one to defer taxes on a property sale as long as they follow specific 1031 rules and guidelines. In other words, you have the potential to keep all your profits working for you with the purchase of your next investment property, without the IRS coming after you looking for their share of the pie. Here are five things to remember before a 1031 exchange.

14

1. TAXES ARE APPLICABLE IN A NON-1031 EXCHANGE When an investor sells a property that has gone up in value this results in several types of taxes. These include capital gains taxes, which the investor must pay if they sell the asset at a price higher than they initially paid for it. Federal capital gains are taxed at 15-20% of the increase in value, while state capital gains are taxed between 0- 13.3% of the increase in value. Depreciation recapture taxes are taxes due when the Please turn to page  17

Dwight Kay is the Founder and CEO of Kay Properties and Investments, LLC. Dwight is a published author with multiple published white papers and articles on 1031 exchanges, Delaware Statutory Trust (DST) properties and real estate securities. He has been interviewed on local and nationally syndicated radio stations on the matters of 1031 exchanges and replacement properties. He also is the author of the published book “Delaware Statutory Trust (DST) Properties: An Introduction to DST Properties for 1031 Exchange Investors.” Dwight began his career in commercial real estate working for a national commercial real estate brokerage firm focusing on multifamily and commercial real estate.

OCTOBER 2022 - APARTMENT MANAGEMENT MAGAZINE AMM1/6

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AMM1/6 APARTMENT MANAGEMENT MAGAZINE - OCTOBER 2022

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OCTOBER 2022 - APARTMENT MANAGEMENT MAGAZINE AMM1/6

Continued from page  14

seller had claimed depreciation expenses on the sold property. Depreciation recapture is currently taxed at 25% of the amount you have depreciated over the years. Other taxes incurred on property sales include the 3.8% Medicare surtax. The beauty of a 1031 Exchange is that you can defer all of these taxes. But if you choose to sell your property without a 1031 exchange, ensure you consult a reputable attorney and CPA so you can know what your full tax bill will be when adding up federal capital gains, state capital gains, depreciation recapture and the medicare surtax. 2. YOU NEED A QUALIFIED INTERMEDIARY A 1031 exchange isn’t as simple as selling and reinvesting in another property. You must first transfer the relinquished property to an intermediary or an accommodator so they can execute the sale on your behalf. This is a process whereby your sale contract is assigned to the qualified intermediary and when the property closes your funds are then wired to your account at the qualified intermediary. From there you will instruct which properties you would like the qualified intermediary to purchase on your behalf. Kay Properties is not a qualified intermediary however we work with many throughout the country so if you would like a referral please let us know. 3. YOU CAN ONLY PURCHASE A LIKE-KIND ASSET For you to defer taxes via a 1031 exchange, you must reinvest the profits from the sale in like-kind property. In other words, if you sell a property held for investment or business purposes in a 1031 exchange, the replacement property must be of the same character. For example, you could sell an apartment building and purchase a commercial building or you could sell a rental home and purchase a DST 1031 investment. 4. REMEMBER DEADLINES 1031 exchanges are subject to strict deadlines. If you sell a property today, you’re expected to have identified the replacement property within the next 45 days and reinvested the proceeds within 180 days. But if you’d already identified the replacement property, you can reinvest immediately. 5. UNDERSTAND YOUR 1031 EXCHANGE OPTIONS Once investors have decided to do a 1031 exchange they should consider their options.

First, they could purchase another type of investment property that they would manage on their own. Second, they could purchase a triple net lease property whereby a national tenant such as Walgreens or FedEx has leased the property for typically 10-15 years. The problem with the triple net leased properties is that it causes investors to place a large portion of their net worth into a single property which could be disastrous (think Blockbuster Video). Third, if the investor is wanting to get out of active management and the day to day issues of dealing with tenants, toilets and trash as well as they are wanting to diversify their investments into multiple properties then a DST 1031 exchange may be a solution. The DST (or Delaware Statutory Trust) is a type of property whereby the management is handled by a third party trustee and since the typical minimum investment of a 1031 DST offering is $100,000 investors are able to purchase a diversified portfolio of Delaware statutory trust properties that may include a piece of Walgreens for 100k, piece of a FedEx distribution warehouse for 100k and a piece of a 800 unit portfolio of multifamily properties located throughout the south east and Texas*. If you are interested in learning more about your 1031 exchange options please get in touch with us today to learn more. To learn more about Kay Properties please visit: www.kpi1031.com This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior investing. This email contains information that has been obtained from sources believed to be reliable. There are material risks associated with investing in real estate, Delaware Statutory Trust (DST) properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. For an investor to qualify for any type of investment, there are both financial requirements and suitability requirements that must match specific objectives, goals and risk tolerances.. Securities offered through FNEX Capital , member FINRA, SIPC. AMM1/6 APARTMENT MANAGEMENT MAGAZINE - OCTOBER 2022

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OCTOBER 2022 - APARTMENT MANAGEMENT MAGAZINE AMM1/6

EARTHQUAKE RETROFITTING: AN EXPERT’S HISTORICAL PERSPECTIVE OF THE GREATER L.A. AREA

F

By Dave Tourjé, President, Alpha Structural, Inc.

or Dave Tourjé, the founder of earthquake retrofitting firm, Alpha Structural, concern about earthquake and the need for seismic retrofitting, were not of grave concern as they are today. Dave started in the construction business by specializing in foundation repair of hillside homes, failing retaining walls, seismic retrofitting, and every other kind of structural repair for the hillside and structural problems he had dealt with as a Mount Washington local working in construction. Today, Tourjé reflects on the difference

in the construction trade between the early days and now, “It was an unformed trade. There was no foundation repair. There was no consciousness of it, it wasn’t in the real estate community like it is now, it just wasn’t a known problem.” Those early days were prior to the major earthquakes that would erupt in years later within the greater Los Angeles area and, as a result, Dave’s field of construction would be changed forever. In 1987, Los Angeles residents experienced the Whittier earthquake at a magnitude of 5.9. Just a few years later, in 1994, we saw the Northridge earthquake

Founded in 1992 by Owner and Chief Executive Officer Dave Tourjé, Alpha Structural Inc., got its start in the hills of Mount Washington, in the heart of Northeast Los Angeles. Today, Alpha Structural, Inc. is the leading structural engineering and construction firm based in Los Angeles and recently announced and celebrated its 30th year in business serving homeowners and commercial property owners alike in both Los Angeles and Orange County. AMM1/6 APARTMENT MANAGEMENT MAGAZINE - OCTOBER 2022

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wreak devastating blows on infrastructure, homes and apartment buildings, and from that was born seismic retrofit codes for the first time in Los Angeles. Dave recalls the change in the structural industry that came as a result of that natural disaster. “It kept evolving where there were more earthquakes, more floods, more problems. Then that would make its way into the codes and into the consciousness of realtors… and the need just became more and more evident.” Santa Monica was the first city within Southern California to establish aggressive regulations targeted toward wood-framed soft-story structures because of the 1994 Northridge earthquake. Many other cities followed suit, with the City of Los Angeles issuing The Mandatory Retrofit Program under Ordinance 183893 in November of 2015. Attempting to stop history from repeating itself, these codes went into effect and were and still are mandatory for property owners to address. Once Los Angeles was waking up to the dangers of buildings not being structurally sound, Alpha Structural was standing ready to bring them up to current seismic code to structurally protect against future earthquakes. Today, while every property that requires a retrofit is not yet complete, thousands of them have been structurally reinforced, brought up to code, and deemed safe per today’s standard. Alpha Structural is proud to have had a large hand in accomplishing that for thousands of properties all over Los Angeles and Orange County. With years of experience and technical expertise, Alpha Structural has been handling these soft-story retrofits for property owners from the early days through today, for 30 dedicated years. Doing so has served Los Angeles & Orange County apartment owners and managers with the peace of mind that comes with working with a quality contractor, and the certainty that their tenants and properties are safe should another major earthquake happen at a moment’s notice.

Alpha Structural is licensed to both engineer and construct every job they take on that comes through their doors – they are a “one-stop” shop, meaning the entire project is taken care of under one roof by in-house engineers, draftsmen, permit expeditors and then project supervisors and crews. This is a muchpreferred method according to Alpha Structural’s clients, where the alternative is separate engineering firms and contractors which can add time and money when there are questions once construction starts. With everything under one roof, Alpha Structural delivers the perfect balance of customer service, technical expertise accompanied by decades of experience. Today, Alpha Structural has grown from their small beginnings in the Mount Washington hills to being considered the trusted leader in structural engineering and construction serving Los Angeles and Orange County. They are proud to be an award-winning design/build firm, with honorable mentions such as the Inc. 5,000 Fastest Growing Company award multiple years in a row, a Los Angeles Business Journal “Fastest Growing Private Companies” award winner, as well as a winner of the “Best Contractor to Work for in Construction” award in 2021. Additionally, they have received countless recognitions from the Mayors of the cities they work in, such as Los Angeles, Pasadena, Rolling Hills Estates, South Pasadena, Santa Ana, Fullerton, Irvine, Yorba Linda, and more. They were honored as well with a recognition from the California State Assembly District 51 for their dedication to safeguarding the community through their work. If you ask Dave, the key to Alpha Structural’s continued success is their motto of quality first. They strive to deliver more to their clients than they expect on every job and will continue that for the next 30 years to come.

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applications approved totaling $18.1 million covering the period of July 1, 2021, through December 31, 2021. A total of $7 million for 186 of the 488 applications had been disbursed, and an additional $11.1 million could also have been disbursed for the remaining 302 applications had the Controller not identified them as potentially fraudulent. The California Housing and Community Development Department, which has been overseeing the “Housing is Key” operation, will make efforts to recapture any fraudulent payments that had been disbursed. THOUSANDS OF SOUTH KOREAN’S LIVE IN ‘PARASITE’ STYLE APARTMENTS It has been reported that hundreds of thousands of people in South Korea live in tiny underground apartments, made famous by the Oscar-winning film Parasite. They are a symbol of the country’s growing inequality and housing crisis. Seoul is now promising to get rid of the flats known as banjiha after four people drowned inside of them during severe flooding earlier this year. Parasite is a 2019 South Korean dark comedy, thriller film that follows a poor family who scheme to become employed by a wealthy family and infiltrate their household by posing as unrelated, highly qualified individuals. STATE CONTROLLER IDENTIFIES FRAUD IN HOUSING IS KEY CLAIMS FOR RENT RELIEF According to a recent report by the California State Controller, 488 “potentially fraudulent” rent relief

State officials will utilize intercept programs (such as the Franchise Tax Board’s Interagency Intercept Collection Program, which collects money from state tax refunds, lottery winnings, and unclaimed property) to re-claim rent relief funds that were fraudulently disbursed. In addition, attempts to recover the disbursed funds will be made by bringing cases to the California Attorney General. However, these methods may not allow for recovery of the disbursed funds if the recipients used fictitious information. The California State Controller’s report also noted that the outside vendor retained by the rent assistance program lacked adequate controls over the application review process, resulting in overpayments and underpayments. Additionally, the vendor used did not consistently request death match verifications before approving applications for payment. Please turn to page  CS-3

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The California State Controller’s report, which was issued in August 2022, just covered disbursements of rent relief through December 31, 2021, so there is a likelihood additional fraud will be uncovered related to 2022 disbursements.

“After a 20-month run of positive monthly growth dating back to December 2020, the market finally witnessed negative asking rent growth on a monthly sequential basis from July to August, with rents down 0.1% in July,” said Jay Lybik, national director of multifamily analytics for CoStar Group. “We’re seeing a complete reversal of market conditions in just 12 months, going from demand significantly outstripping available units to now new deliveries outpacing lackluster demand.” Markets that posted negative August rent are dominated by Sunbelt locations, such as Austin, Texas; Charlotte, North Carolina; Fort Lauderdale and Orlando, Florida, reports Business Wire.

RENTS DROP FOR THE FIRST TIME IN NEARLY TWO YEARS AS THE HOUSING MARKET COOLS Housing markets that had the fastest growing rents over the last two years are now witnessing a dramatic pullback. None of the top 40 largest markets saw year-over-year asking rents expand in August, pointing to the overall deterioration of market conditions, according to Apartments.com.

Realtor.com August data shows renters are feeling the strain of higher costs, as Americans spent more than one-quarter (26.4%) of their monthly budgets on rents in August. Among the 50 largest metros, coastal areas topped Realtor.com’s August list of least affordable rental markets, with rents accounting for the highest shares of household incomes in Miami (46.5%), Los Angeles (40.7%) and San Diego (37.1%). Please turn to page  CS-4

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An estimated 420,000 new apartment rental units are projected to be completed this year, pushing apartment construction to an historic 50-year peak, according to a report from RentCafé. Apartment completions last surpassed the 400,000-unit mark in 1972. New York is poised to surpass the Dallas-Fort Worth metro area in apartment construction, claiming the top spot for the first time since 2018. The construction boom is driven by pent-up demand for apartments nationwide. “By and large, apartment developers have picked up the pace in both 2021 and 2022, almost unexpectedly exceeding even the most optimistic projections for the post-pandemic multifamily landscape,” the report says. Rental housing is broadly attainable for middleincome households outside of the nation’s hottest housing markets, but lower-income households consistently struggle to find safe, decent, and affordable rental homes, according to the Urban Land Institute.

A CALIFORNIA SCHOOL DISTRICT IS ASKING FAMILIES TO RENT ROOMS TO TEACHERS A Northern California school district is testing out a novel solution to its housing shortage for teachers: asking community members to rent them rooms. The Milpitas Unified School District put out the call to families in late August in response to staff losses and

sky-high housing costs that have made it difficult for educators to live near where they work. The median home price in Milpitas, located just outside San Jose, is $1.3 million, according to Realtor.com. Roughly 4 in 5 California counties are seeing their median home prices rise year over year, data released in August by the California Association of Realtors shows. In the last year, the Milpitas Unified School District lost 10 teachers, officials said. Seven moved to “more affordable” communities, and three left California. Two surveys, conducted by the district in 2017 and 2021, showed that some staff members had long commutes and lacked steady housing, Jordan said at a recent school board meeting. The Milpitas school board declared in a resolution that “the gap between those who can afford a home in the San Francisco Bay Area and those who cannot, is widening at an alarming rate, with some having to hold part-time jobs to meet monthly housing expenses, and affordable rental housing is in short supply.” The district has explored other ways to improve housing options for teachers, such as coordinating with agencies that offer loans to educators and considering the construction of accessory dwelling units, which are small homes on the same lot as larger ones. AUSTIN (TX) AREA SEES MEDIAN RENT COST ALMOST DOUBLE IN A YEAR To further that ranking, Austin also ranks No. 5 as one

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of the “cities with the fastest-growing rent” costs over the last year. A new report from Dwellsy, a rental market search website, found that the Austin area saw an increase of 86% in the cost of monthly rent in the time period of August 2021 to August 2022. “Austin, Texas, stands out for the highest increases in asking rent, which has nearly doubled since this time last year,” the site stated.

Dwellsy went into detail regarding the fact that singlefamily rental homes (SFR) are the most in-demand properties for renters across the country. The costs for renting an SFR reflects this statement, as the monthly cost for an SFR outpaces apartments. In Austin alone, the monthly cost in August 2022 for an SFR is $3,210. Compared to SFR rent in August 2021, it is a 60.9% increase in the last year, which is the highest increase any city in the country has seen.

This metric makes Austin the No. 1 city across the U.S. to have the largest rent increase, regardless of state or city. Granted, New York City is still No. 1 in the nation when it comes to median monthly rent cost, even increasing it by 19.7% in this same time period. New York City’s cost is roughly $3,021 compared to Austin’s $2,930, but this metric has led Austin to be ranked No. 5 as one of the “most expensive large cities for asking rent” cost.

LAS VEGAS’ ONCE-SOARING RENTS NOW GROWING MUCH SLOWER Southern Nevada landlords are dialing back the huge rent increases they gave tenants last year amid a broader slowdown in Las Vegas’ housing market. The typical rent in the Las Vegas-area last month was just over $1,890, up about 8 percent from a year earlier, compared with a 25 percent year-over-year rent hike in August of 2021, according to figures from listing site Zillow.

To further that ranking, Austin also ranks No. 5 as one of the “cities with the fastest-growing rent” costs over the last year.

Susy Vasquez, interim executive director of the Nevada State Apartment Association, said the number of people moving here from out of state is down. She also indicated that units are sitting available longer, and that landlords appear to be offering more concessions to prospective tenants. Please turn to page  CS-8

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Compared with last year, she said, the rental market is a “totally different picture.” For apartments in Southern Nevada, rents are up 3.1 percent this year, down from a 22.5 percent price jump last year, according to data Vasquez pulled from real estate tracker CoStar. Price growth is slowing amid increased availability as Las Vegas’ apartment-vacancy rate is now 7.3 percent, up from 5.4 percent last year. Locally and nationally, home sales have been tumbling for months amid a sharp jump in mortgage rates this year. Sales prices have also been sliding recently in Las Vegas, and the tally of available houses on the market has skyrocketed. Overall, the market looks much different than it did last year, when it accelerated to its most frenzied pace in years. Rock-bottom mortgage rates fueled a buying binge, and demand for rentals climbed higher as people worked from home amid the pandemic and waves of newcomers moved to Southern Nevada from pricier metro areas. Strong demand, tight supply and rapid price increases for buyers and renters alike made it more difficult and more expensive to land a place to live in the Las Vegas Valley. Long viewed as a more affordable outpost, Southern Nevada was even deemed one of the worst markets in the nation for first-time homebuyers in a report this June from personal-finance site Bankrate. Gov. Steve Sisolak this year launched a $500 million initiative to boost affordable housing in Nevada. The program called for $300 million for multifamily development, $130 million for multifamily rehabilitation and preservation, $40 million for land

acquisition and $30 million to help homeowners. The initiative marked the “largest single investment in affordable housing” in state history, the governor’s office previously said. Nevada, with the bulk of its population in the Las Vegas Valley, has an estimated shortage of 79,835 affordable and available rental homes for extremely low-income tenants, according to the National Low Income Housing Coalition. Audra Hamernik, president and CEO of affordable housing developer Nevada HAND, said this summer that the group was receiving 2,000 calls a day from people seeking an affordable place to live. She also noted the developer only had a “handful” of vacancies every week in its portfolio.

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Presented by the Apartment Association of Greater Los Angeles

October 18th, 2022 - 9am-4pm - Pasadena Convention Center

SCHEDULED SPEAKERS STAGE 1 (HALL A)

11:30 am

10:30 am

9:30 am

RENTAL HOUSING LEGISLATIVE UPDATE

Daniel Yukelson | Apartment Association of Greater Los Angeles Susan Shelley | Writer and Columnist for the Southern California News Group Today’s regulatory environment is making the rental housing business far too complicated and carries far more risks and higher costs. We’ll discuss many new state laws that will surely impact housing providers along with some laws that are on the horizon and several proposed ballot initiatives that will increase taxes and also “chip away” at Proposition 13’s protections.

A LANDLORD’S GUIDE TO NAVIGATING THE EVICTION LANDSCAPE NOW & MOVING FORWARD Mike Brennan | Brennan Law Firm This seminar explains which evictions landlords may or may not move forward with in the current environment, as well as how that will change in the coming months. It also addresses the most common issues faced by landlords under the local eviction moratoriums and explains nuances in those moratoriums that may expand a landlord’s ability to get rid of problematic tenants.

UPGRADE YOUR PORTFOLIO W/ A 1031 EXCHANGE & INSIGHTS ON THE ECONOMY AND RECESSION Rusty Tweed and Edward Weng | TFS Properties We are in uncertain economic times and many investors are unsure as to what will happen to the real estate market. Join TFS as we take a look at what to expect in the latter half of 2022 & how you can use a 1031 Exchange to better position yourself for this recession.

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Dennis Block | Dennis P. Block & Associates Dennis P. Block is the founder and managing partner of the LAW FIRM OF DENNIS P. BLOCK AND ASSOCIATES. The firm specializes in residential and commercial eviction of tenants. Founded in 1976, the firm has become the leading eviction law firm in tenant eviction in the State of California. To date, the firm has handled over 200,000 tenant evictions in California.

FOUR OF THE MOST COMMON QUESTIONS WE HEAR FROM 1031 EXCHANGE DELAWARE STATUTORY TRUST INVESTORS Orrin Barrow | Vice President Orrin began in the industry working for a 1031 exchange sponsor company. He was responsible for educating CPAs, real estate brokers and qualified intermediaries on the 1031 investment marketplace and the importance of 1031 exchanges in the real estate marketplace.

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SCHEDULED SPEAKERS

10:00 am

STAGE 2 (HALL B) LOOKING BACK AND PLANNING AHEAD FOR 2023: YEAR-END TAX PLANNING FOR TAX SAVINGS

Tony Watson | Robert Hall Taxes & Associates Where did the year go? With 2022 coming to an end, are you prepared from a tax strategy standpoint? It’s no secret that saving taxes accelerates wealth and compresses your time frame towards financial independence. But what are the best strategies to accomplish this? And when should it be implemented? Tax consultant and Real Estate industry specialist, Tony Watson of Robert Hall & Associates will share the best tax-saving strategies that investors should know.

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ACCESSIBILITY COMPLIANCE BASICS FOR APARTMENT OWNERS Christy Kim, AIA, CASp | Technical Director Just the mention of ADA compliance can make a multifamily investor flinch; accessibility regulations are complicated, often misunderstood, and potentially fraught with liability for property owners. In this session, licensed architect and Certified Access Specialist Christy Kim will discuss the basics of accessibility regulations for multifamily properties, including the Americans with Disabilities Act (ADA), the Fair Housing Amendments Act (FHAA) and Section 504 of the Rehabilitation Act. Breaking down the jargon, Ms. Kim will clarify how the codes apply to different housing scenarios and address widespread misconceptions about accessibility compliance. She’ll discuss the compliance problems she sees most frequently at multifamily sites. And, she’ll explain how to work with a Certified Access Specialist to improve accessibility and reduce liability at your properties.

THE RAPIDLY CHANGING ROLE OF NON-INSTITUTIONAL INVESTORS IN THE DIGITAL REVOLUTION AND AFFORDABLE HOUSING PRESERVATION Antwon Ali | Vice President of Story, J.P. Morgan’s digital real estate division Hear from Antwon Ali, Digital Real Estate, V.P., for Story, J.P. Morgan’s real estate management software, and discuss how the firm’s platform is helping non-institutional investors level the playing field by providing access to institutional level data and tools.

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EARTHQUAKE 101: RETROFIT WORKSHOP FOR BUILDING OWNERS

Jared Duke | Client Relations Manager - Optimum Seismic Jared has a background in commercial & Soft-Story retrofit and project administration. He has been involved in and overseen the design and construction of over 200 commercial and multifamily retrofit projects and over the previous 4 years has been performing public outreach and education surrounding seismic resilience for the California cities. His focus is on identifying vulnerable building types and how best to approach and complete retrofit or repair/reinforcement processes from a building owners’ perspective.

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LEVERAGING ADU’S Elizabeth Reynolds | CEO of Reynolds Realty Advisors Elizabeth Reynolds has over 20 years of experience in commercial and multi-family acquisition, property management and construction. Throughout her career she’s successfully overseen all real estate functions including master plan development, acquisition, market analysis, site selection, financing, construction, disposition, advertising, design services, public relations and overall property management.

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Patti “Widget” | Widget’s Way – Property Management Consultant Patti “Widget” has nearly 25 years of experience as a regional property manager. Patti teaches a wide range of classes on property management topics; she is a keynote speaker on property management and housing issues. Patti is a repeat guest speaker at UCLA. She also holds various certifications in the industry related to her field, such as a CA licensed Real Estate Broker, CCRM, lead-based paint certified renovator from the EPA, Fair Housing, and more.

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OCTOBER 2022 - APARTMENT MANAGEMENT MAGAZINE

THE INCOME PROPERTY MANAGEMENT EXPO (IPME) RETURNS TUESDAY, OCTOBER 18TH EXPLORING INVESTMENT OPPORTUNITIES IN ALTERNATIVE AFFORDABLE HOUSING! Join With 100’s of Vendors Servicing the Rental Housing Industry, Network With 1,000’s of Housing Providers, and Listen to Dozens of Speakers on Property Management, Regulations and Evictions – ALL 100% FREE!

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he Income Property Management Expo (IPME) provides property owners, managers, real estate investors, and real estate professionals with the information they need to succeed in the ever-changing real estate market. With growing demand for rental housing, an unprecedented rate of inflation, rising interest rates, and pandemic-driven regulatory issues, now more than ever is the time to gather with peers and obtain the professional advice and strategies you need to succeed – all for free. With pandemic-related restrictions nearly behind us, it’s time to get together in person, become reinvigorated, get back to work; and learn how to navigate a new real estate market and regulatory landscape. IPME is Southern California’s largest, most important annual property management expo and conference. IPME will allow you to explore new investment opportunities within alternative and affordable housing trends like Accessory Dwelling Units (ADUs), Modular Housing, and Micro Apartments. In fact,

there will be interactive alternative home solutions featuring tiny home builders, plus other livable solutions. Featured guest speakers will provide an update on the impact of COVID-related restrictions, rent control and proposed legislation, capital improvements and ADA Compliance, and tenant screening and fair housing. IPME speakers will offer fresh strategies so attendees can get back into the game of making informed real estate decisions. “For me, the Income Property Management Expo is and has always been the ‘must attend’ event for members of the Apartment Association of Greater Los Angeles who want to hear from important leaders in the rental housing business, meet hundreds of vendors who serve our industry and interact with thousands of investors and peers”, said Daniel Yukelson, Executive Director of the Apartment Association of Greater Los Angeles. Yukelson will be a speaker at the event as well. Beyond the emphasis on alternative housing, IPME will provide access to innovative and affordable products, services, and free education pertaining to investment strategy, changes in legislation, costeffective maintenance, management and operation of rental housing, multifamily, and commercial properties. Travis Watson, President of Apartment News Publications, was enthusiastic about the show APARTMENT MANAGEMENT MAGAZINE - OCTOBER 2022

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he sponsors, “Our expo and conference this past March had set new attendance records, and we expect the renewed level of engagement to continue into the October 18th expo with new guest speakers and features, like our ADU and “Tiny Home” exhibits which will highlight future investment opportunities and more. Expo attendees will experience a full day of interactive seminars, groundbreaking real estate strategies, and over 100+ products and service exhibits as well as networking opportunities.” Travis continued: “October’s expo will also feature wine tasting sponsored by the Apartment Association of Greater Los Angeles and led by a famous, Santa Barbara County winemaker from Fiddlehead Cellars.” The IPME expo and conference is truly a day packed with well-known speakers on Rent Control, TaxDeferred Investment Opportunities and Strategies, Estate Planning, ADA Compliance, Tenant Retention, new investment strategies with ADUs and mobile homes, and so much more. Watson continued “It’s a day that will provide immediate dividends for you and your P&L, and entry to this show is free!”

To help motivate, re-energize, and educate IPME showgoers, speaker presentations will include leading ADU and retrofit experts like Helen Fower and David Tashroudian, multifamily industry professionals Daniel Yukelson, Executive Director of the Apartment Association of Greater Los Angeles. Michael Brennan, Esq. of Brennan Law Firm; Dennis Block, Esq. of Dennis Block & Associates, and Rusty Tweed of TFS Properties, among others will tackle the thorny tax and real estate challenges we all face. Additional distinguished first-time speakers like Christy Kim of Engineering & Science, Elizabeth Reynolds of Reynolds Realty Advisors, and Orrin Barrow Kay Properties & Investments will bring their property expertise to the show. March 2022 IPME showgoer and investor Cindi S. said, “IPME shot out of a cannon with its March show, I can’t wait to attend the October show, new CS-14

OCTOBER 2022 - APARTMENT MANAGEMENT MAGAZINE

issues, new and familiar speakers along with more informative strategies any real estate investor can use… I’m ready for IPME!” Beyond a full slate of speakers and seminars, the exhibition hall is loaded with relevant vendors, showcasing products, services, live demonstrations, and interactive displays that are designed to help you build and manage your real estate investments easier. Such products and services include the latest in property management software, analysis tools, legal and eviction services, energy systems, lighting, roofing, safety equipment, financial and tax planning, lending, tenant screening and insurance, tax, and legal services to improve property performance and reduce operating costs. And yes, ADU, Tiny and Mobile Home investment strategies and information. These are professionals helping professionals do their job better. “Usually, I try not to make eye contact with exhibitors when I go to conferences, but with IPME, I make a beeline to several booths that have proven to be a boon to my business”, said Teresa R. a recent attendee. Attendees are always impressed by the information they gather from IPME, including tips for practical application to their everyday management and operations. The sessions and exhibits not only provide solutions, but present strategies and legal content that users can use and implement immediately. Many of these presentations are standing room only. Topics covered include the top property management issues such as the increase in single-family rentals, consolidation in the industry, additional regulation, supply chain shortages and alternative housing trends like ADUs, Tiny and Mobile Homes, to name a few. With COVID pandemic hopefully behind us, IPME has brought out the big guns with speakers, exhibits, and interactive displays to help navigate this postpandemic world. It’s time to get back to the business of real estate investing and management. Yukelson is energized and ready to go, as well. “I encourage every income property investor and property manager to join us and to engage with the housing industry at large,” he said. The Income Property Management Expo & Exhibition (IPME) will be held on Tuesday, October 18th at the Pasadena Convention Center in Exhibit Halls A and B, from 9:00 A.M. to 4:00 P.M. Admission is free. Seminar seating is limited. Interested exhibitors may call (800) 931-6666 or email [email protected]. For information, pre-registration, and conference agenda updates, please visit www.incomepropertyexpo.com.

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OCTOBER 2022 - APARTMENT MANAGEMENT MAGAZINE

FEDERAL COMMUNICATIONS COMMISSION (FCC) TAKES NEW, ADVERSARIAL POSITION ON COMMERCIAL PARTNERSHIP REGULATIONS

The FCC announces new regulations on cable home wiring, certain exclusive access payment schemes and exclusive marketing arrangements.

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By Thomas J. Dougherty Jr., Fletcher, Heald & Hildreth, PLLC

he Federal Communications Commission (FCC) regulates the activity of cable companies, other video services providers and telephone companies within residential and commercial multiple dwelling units (MDUs). There are FCC rules governing the disposition of cable home wiring used within an MDU to serve an apartment after the cable company ceases to serve the resident (Rule 76.802). In addition, FCC rules ban common carriers from entering into or enforcing agreements with a building owner who restricts the right of the resident to obtain common carrier services (e.g., telephone service) from an alternative provider (Rule 64.2500), and prohibit cable companies and other video services providers from enforcing or executing contractual provisions that

grant them the exclusive right to provide any video programming service (alone or in combination with other services) to an MDU resident (Rule 76.2000). The purposes of these various rules have been to promote resident choice in its selection of communications service providers and competition for subscribers in MDU environments. On Feb. 15, 2022, the FCC promulgated additional regulations intended to promote those goals. By Report and Order and Declaratory Ruling (Report and Order), the FCC expanded this regulatory scheme (i) to clarify that the sale-and-leaseback of cable home wiring is and has been subject to prohibition by FCC regulation; (ii) to ban exclusive revenue sharing agreements; (iii) to ban graduated revenue sharing agreements; and (iv) to require the disclosure of the terms of exclusive marketing agreements to residents. The nature and scope of each of these actions are described below. APARTMENT MANAGEMENT MAGAZINE - OCTOBER 2022

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1. THE BAN ON THE SALE-AND-LEASEBACK OF HOME WIRING (a) The Ban. A “sale-and-leaseback arrangement” is any arrangement whereby a video provider already serving the building conveys its inside wiring to the property owner (by sale or other vehicle) and then leases it back on an exclusive basis. The FCC finds that saleand-leaseback arrangements that deny residents the opportunity to exercise their rights under Rule 76.802(a) (2) are prohibited. Those Rule 76.802(a)(2) rights include the right of the resident or the building owner to buy the cable home wiring at replacement cost when the resident terminates the video service provider’s service. Cable home wiring is the wiring within the resident’s unit to a point 12 inches outside of the unit and, in addition, the wiring extending from this 12-inch point to the junction box if this wiring is behind sheetrock or another permanent barrier. (b) Retroactive Application. As this is an interpretation of existing rules, and not the creation of a new rule, this ban applies retroactively; in other words, even though you might not have interpreted the FCC Rule 76.802(j) to ban the practice, that is how the FCC reads it, and this newly declared prohibition has thus existed since the rule was adopted in 1996. The FCC recognizes that this interpretation will catch almost everyone off guard and, to be fair, will focus its “scrutiny on sale-and-leaseback arrangements entered into after the Commission began examining this practice [on June 23, 2017], [and]… will forego focusing on arrangements made prior to this time.” (c) Covered Entities. This interpretation is of Rule 76.802(j), which applies only to cable company and other multichannel video programming distributors (MVPD). Accordingly, this interpretation of the rule does not extend to common carriers (except if they provide video program services) or internet service providers (ISPs) who are providing residents with just internet service and applications run on the internet (such as Voice-over-Internet Protocol [VoIP] telephone service) but not multichannel video programming service. Similarly, as an apartment building owner is not a cable company or an MVPD, it is not subject to this rule or the enforcement of this rule. 2. THE BAN ON EXCLUSIVE REVENUE SHARING AGREEMENTS AND GRADUATED REVENUE SHARING AGREEMENTS (a) Ban on Exclusive Revenue Sharing Agreements. The Report and Order bans cable companies, other MVPD providers and common carriers from entering into or enforcing agreements with building owners in which the provider offers the building owner consideration in return for the provider obtaining access to the CS-18

OCTOBER 2022 - APARTMENT MANAGEMENT MAGAZINE

building and its residents, on the condition that the building owner not accept similar consideration from any other provider. The FCC already bans exclusive access agreements and found that exclusive revenue sharing agreements are anti-competitive and amount to de facto exclusive access agreements. This ban is limited to the provisions in an agreement that create the banned right and is not intended to render the other provisions of whole contracts unenforceable. (b) Ban on Graduated Revenue Sharing Agreements. The Report and Order bans cable companies, other MVPD providers and common carriers from entering into or enforcing “tiered” or “successbased” agreements, in which the provider pays the building owner a greater percentage of revenue as its penetration in the building increases. The FCC found that these agreements are anticompetitive and amount to “de facto” exclusive access agreements because they discourage competitive entry to apartment buildings and circumvent the prohibition on exclusive access agreements. This ban is limited to the provisions in an agreement that create the banned right and is not intended to render the other provisions of whole contracts unenforceable. (c) Retroactive Application. These enforcement prohibitions apply to both new agreements and existing agreements. The ban on the entry into these types of arrangements begins 30 days after the Report and Order is published in the Federal Register. The enforcement ban applicable to existing agreements begins 180 days after that publication date. (d) Covered Entities. These bans apply to cable companies, other MVPD providers and common carriers. These bans do not apply to apartment building owners or ISPs who do not also provide multichannel video programming service. 3. THE REQUIREMENT TO DISCLOSURE THE TERMS OF EXCLUSIVE MARKETING AGREEMENTS TO RESIDENTS (a) Definition of Exclusive Marketing Agreement. The FCC defines the exclusive marketing agreement as an arrangement, either written or in practice, between a building owner and a cable company, another MVPD or a common carrier that gives the service provider, usually in exchange for some consideration, the exclusive right to certain means of marketing its service to residents. The Report and Order does not ban them but requires the provider to disclosure them to residents. (b) The Duty to Disclose. The FCC will require the service provider to disclose that it has the right to exclusively market its communications services to residents in the building, that such a right does not mean that the Please turn to page  CS-23

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Qty

BATH / SHOWER / SINK

Single

Qty

DOORS & WINDOWS

Single

Multi

$

75.00

x

Replace door lock set (single dead / knob set)

$

85.00

x

Install towel bar

$

50.00

x

Install single interior or exterior door knob

$

50.00

x

Install toilet paper holder

$

50.00

x

Repair / shave door close

$

85.00

x

Recaulk sink/toilet

$

50.00

x

Replace mailbox lock

$

65.00

x

Replace toilet seat

$

50.00

x

Install interior new door w/ knob

$

250.00

x

Recaulk toilet base

$

50.00

x

Replace / build new window screen

$

65.00

x

Replace standard medicine cabinet

$

95.00

x

Replace screen door & frame complete new

$

110.00

x

Remove / regrout shower tile enclosure

$

325.00

x

Re-install / repair screen door

$

85.00

x

Replace shower door rollers

$

85.00

x

Paint door complete both sides

$

75.00

x

Replace shower door complete

$

175.00

x

Replace / repair window hardware

$

65.00

x

Repair overflow grommet or shower handles

$

75.00

x

Replace new standard size closet door (1 set)

$

185.00

x

Reset closet door / rollers on track

$

95.00

x

Replace security door new complete w/locks

$

350.00

x

x

Replace exisitng solid core door (exterior)

$

395.00

x

x

Replace door weather striping

$

75.00

x

x

Repair / replace threshold

$

65.00

x

Replace doorbell

$

75.00

x

KITCHEN

Single

Remove & regrout up 8ft counter with caulking

$

Replace kitchen countertop

Multi

175.00 est

Replace / install range hood

Qty

Multi

Remove old caulking & recaulk bath tub / tile

$

95.00

Recaulk kitchen sink / counter (up to 8ft)

$

65.00

Repair / replace cabinet (knobs,cathers,hinges)

$

50.00

x

Install oven / stove (standard install)

$

125.00

x

Repair cabinet drawer

$

65.00

x

Replace light bulbs (up to 6 - No ladder)

$

50.00

$

3.50

Rebuild / make new drawer

$

95.00

x

Replace exterior light bulb side of build w/ ladder

$

65.00

$

10.00

$

$

5.00 Qty

LIGHTING & ELECTRICAL

Single

Multi

Install vinyl flooring up to 100 sqft (no subfloor)

$

295.00

x

Install fluorescent light bulb

$

50.00

Install dishwasher

$

185.00

x

Replace standard light fixture

$

75.00

x

Replace electrical breaker

$

165.00

x

Replace electrical outlets or switches

$

65.00

Single

SPECIALTY / MISC. ITEMS

Multi

Install carbon monoxide alarm

$

50.00

$

25.00

Replace electrical outlet/switch cover(up to 10qty)

$

50.00

Install standard smoke alarm

$

50.00

$

25.00

Replace exhaust fan motor (kitchen or bath)

$

95.00

10.00

x $

2.50 x

Install hardwired/combo

$

65.00

$

45.00

Install bathroom exhaust fan

$

120.00

x

Install sign basic sign

$

50.00

$

25.00

Troubleshoot electrical - estimate time

$

75.00

per hour x

Paint bathroom complete (small to medium)

$

350.00

x

Install ceiling fan

$

165.00

Remove mildew & paint ceiling (10x10)

$

275.00

x

Install photo cell

$

195.00

x

Prime & paint wall (up to 10' x 12')

$

175.00

x

Install GFCI

$

70.00

x

Clean Mildew w/ concrobium up to 20 sqft

$

95.00

x

Graffiti - prime & paint (up to 4sqft max)

$

75.00

x

Install standard A/C (replace only - no retrofit)

$

150.00

x

Repair water damage wall / ceiling

est

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Continued from page  CS-18

provider is the only entity that can provide such services to residents, and that service from an alternative provider may be available. (c) Where Disclosures Must Be Made. The disclosures must (1) be included on all written and electronic marketing material from the provider directed at residents or prospective residents; (2) identify the existence of the exclusive marketing arrangement and include a plain-language description of the arrangement and what it means; and (3) be made in a manner that it is clear, conspicuous and legible. (d) Retroactive Application. This obligation applies to existing and new exclusive marketing arrangements. For new arrangements, the FCC will enforce compliance with the disclosure requirement after the Office of Management and Budget completes its review of the new requirement. The FCC will not enforce compliance with the disclosure requirement for existing exclusive marketing arrangements until the later of (1) the Office of Management and Budget completing its review of the new requirements, or (2) 180 days after publication of the Report and Order in the Federal Register. (e) Covered Entities. This disclosure requirement applies to cable companies, other MVPD providers and common carriers. It does not apply to building owners or to ISPs who are not also providing multichannel video programming service. 4. HOW TO REACT TO THESE NEW FCC PRONOUNCEMENTS The FCC recognizes that its actions are upsetting established contractual expectations. To provide building owners and providers with time to resolve the resulting confusion, the FCC has deferred the effectiveness of these constraints on the enforcement of existing contract provisions until 180 days after the Report and Order is published in the Federal Register. During this time, we would expect to see how the providers and building owners establish new practices to adapt to these new rules. It is suggested that you promptly identify your agreements that are affected by the bans and disclosure requirements. It is not recommended to put much focus on the exclusive marketing provisions of the contract, as the FCC confirmed that the requirements to disclose exclusive marketing agreements imposes no obligations on the building owner. Instead, you should focus on exclusive and graduated revenue provisions and, for contracts executed after June 23, 2017, wiring sale-leaseback agreements. Agreements you have with broadband internet service providers (who do not bundle common carrier or video services)

are not subject to the bans. It is further suggested that you contact your counterparty providers soon so that discussions can be held. You cannot unilaterally resolve the contract issues the FCC has created. These bans are only on the enforcement by the regulatee of certain provisions. The FCC envisions that the remainder of the contracts containing these provisions will be unaffected, but that may not be the case in many situations. In some cases, the provider may be relieved of its duty to pay the building owner because the provider is barred from enforcing the exclusivity associated with the payment. In other cases, the unenforceability of a provision could go to the heart of the agreement, rendering the whole agreement void or voidable. These are issues of state contract law, and there is considerable variability from state to state in how courts treat such contract issues. There may be an argument under state law that as long as the building owner honors the exclusivity provision, the provider has to make payments it agreed to make for that provision. There are good arguments that the parties can continue to voluntarily obey these existing exclusivity provisions without violating the FCC rules. The rules place no expressed duty on the building owner to observe these provisions. The rules do not say that the building owner cannot receive the payment for exclusivity and do not say that the provider cannot pay for the exclusivity. The only prohibition is on the provider “enforcing” the exclusivity. While the FCC has not said what it means to “enforce” one of these provisions, enforcement is generally defined as compelling observance of or compliance with a law, rule or obligation. Voluntary compliance with a provision, thus would generally not be considered the enforcement of a provision or a violation of the rule. Generally, the FCC enforces its regulations through consent decrees (which are voluntary) and imposing monetary forfeitures on those who violate its regulations. Forfeiture proceedings under 47 USC 503 cannot proceed against a “non-regulatee” building owner until it has received a citation and it continues the violation after the end of the notice period in the citation. Section 503 contains no language authorizing the FCC to assess a forfeiture against those that aid or abet a rule violation. In short, building owners appear to be insulated from the requirements of the Report and Order and voluntary compliance with banned provisions appears not to be prohibited by the rules, but it cannot be said how the FCC’s enforcement regime for these bans will roll out or evolve. APARTMENT MANAGEMENT MAGAZINE - OCTOBER 2022

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Office Conversions: A Multifamily Housing Solution That Never Happened

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by Yardi breeze

“DARK WINDOWS. QUIET LOBBIES. HUSHED HALLS.”

hese opening lines of a New York Times article from April 2021 describe once-thriving offices in downtown New York. At the start of the pandemic, offices nationwide shuttered and we entered the era of remote work. The article suggests residential housing could come from commercial office conversions. Ideally, such office conversions would help solve the affordable housing crisis and put those “dark, quiet, hushed” buildings to good use. It sounds like a smart plan, but it hasn’t happened, at least not on a meaningful scale. And it doesn’t look like office conversions to affordable housing are in many developers’ plans. The conversion solution is creative, but it just doesn’t work. This article looks at why commercial buildings aren’t going to solve the housing crisis and what is happening to unused

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offices spaces instead. We’ll also show you some housing solutions that actually work (and are happening now). OFFICE CONVERSIONS: NICHE MARKETS FOR LUXURY HOUSING According to a July 2022 CommercialEdge report, “Conversions of office buildings to apartments … have proven to be difficult because most such projects are not profitable.” The report continues, “Some developers work around this by placing amenities in the center of a building, but this is likely a solution only for luxury apartments.” This analysis reveals the two central issues with offices conversions. The first is how difficult it is for property management companies to make a profit. The second is the likelihood that converted office buildings will primarily cater to wealthier renters. As a Please turn to page  CS-27

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result of these two issues, property developers tend to look for the easiest win. They find it in densely populated cities with thriving downtown districts. That’s where their projects command the highest market rates and see the best returns. Prime commercial real estate is highly profitable, and current residential conversions are making the most out of the opportunity. Manhattan’s iconic One Wall Street building, with more than 1 million square feet of office space, is being converted into 566 luxury condos. In Salt Lake City, Hines a 24-story building is set to be converted into a 255-unit luxury multifamily residence. CONVERSIONS ARE DIFFICULT, SOMETIMES IMPOSSIBLE High ceilings, deep floor plates, unworkable layouts, electrical/plumbing issues and more all make it difficult to convert commercial buildings into residential housing. According to the CommercialEdge report, “Office conversions that provide much needed workforce housing likely won’t happen on a large scale unless there are deep discounts on distressed properties or until the state and local governments provide substantial incentives.” Currently, there is no indication that

government subsidies and/or mandates are on the horizon. It seems that the dream of converting millions of square feet of unused or underused commercial property is going to remain just that — a fleeting dream inspired by the early days of the pandemic. WHAT ABOUT OFFICE-TO-INDUSTRIAL CONVERSIONS? Commercial Property Executive (CPE) states that it’s not easy or financially viable to convert offices into industry spaces. “Office-to-industrial conversions are pricey endeavors,” says CPE. “For starters, the buildings generally have to be demolished … a project has to be sited in a location that can achieve premium rental rates to make economic sense.” Jason Tolliver, Cushman & Wakefield’s Americas Logistics & Industrial Investor lead, said industrial conversions are happening where there are “high barriers to supply, most notably in Southern California, in Northern New Jersey — areas where you’re close to the population, you have a voracious tenant appetite for demand, really high replacement cost and no real opportunity to go down to the next

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exit and develop.”

needed to help address this issue.

As with residential housing conversions, it’s difficult for most businesses to profit from such conversions, so the barriers to entry are unusually high.

If the complexity of the affordable housing industry is scaring anyone away from entering the industry, know this: the latest affordable housing software has been steadily changing everything for property managers. It helps operators automate tasks that once took hours. It eliminates or greatly reduces manual data entry at the leasing and renewal stages. The right tech can even integrate online compliance workflows during the leasing process. Affordable housing managers can even choose to outsource compliance paperwork to their software provider for fast, guaranteed processing.

AFFORDABLE HOUSING SOLUTIONS THAT WORK The need for affordable housing has reached a crisis level. A recent NPR report reveals that 25% of renters pay more than 50% of their income toward housing. Property managers, owners, investors and certainly renters all know how important it is for people to be able to afford to live where they live. And it’s clear that office conversions aren’t the answer. So what does work? We’ll approach the answer to that question by looking at the vital roles property management software solutions and PACs play in the industry. AFFORDABLE HOUSING IS COMPLEX, BUT SOFTWARE MAKES IT EASIER Affordable housing operators face unique difficulties that few others in the industry face. The amount and complexity of the paperwork to keep up with can be overwhelming. Small mistakes lead to big fines that can break the business. While there are surely many reasons for the housing shortage, the limited interest in the sector from potential owners and operators certainly contributes to the housing shortage. According to the NPR report, only 25% of households that qualify for Section 8 actually get a voucher. More affordable property managers are

None of this streamlining and automation was possible until a few years ago. Now, it’s helping make affordable housing a more rewarding and manageable career option. Any way you look at it, cloud-based technologies and simplified workflows are essential to helping resolve the affordable housing crisis. INDUSTRY PACS ARE ALWAYS ACTIVE Yardi Breeze partners with numerous property management associations whose experienced leadership work with Congress. Together, they look for answers to the housing crisis, among other issues. Their political action committees (PACs) look for researched, effective and bipartisan approaches on a range of subjects including affordable housing. Check out the PAC work of your preferred association for more information and ways to get involved.

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HANDLING CRIME, VIOLENCE, AND DOMESTIC ABUSE IN AND AROUND RENTAL UNITS

“

What landlords and property managers need to understand is that they are responsible for the properties they own and manage and address unacceptable conduct, whether a crime is prosecuted or not.

By Daniel Bornstein, Esq. As an editorial note, Daniel Bornstein was privileged to host a webinar on this topic recently. Here are some key takeaways. You can view the full recording online at Bornstein.Law

T

he crime wave in the Bay Area has garnered national attention and voters will soon decide the fate of San Francisco’s District Attorney.

What landlords and property managers need to understand is that they are responsible for the properties they own and manage and address unacceptable conduct, whether a crime is prosecuted or not.

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In a criminal matter, the prosecution has to prove the defendant is guilty beyond a reasonable doubt. This is a rather tall bar. Contrast this with a civil action such as an unlawful detainer (eviction). The plaintiff - the landlord - need only prove their case by a preponderance of the evidence. Landlords can and must take proactive action whenever crime, violence, or domestic flareups occur in rental units. If the owner or property manager puts their head in the sand and does not address the incidents that arise, there is a potential for colossal liability when a member of the community is harmed. Please turn to page  CS-33

More than a practitioner in landlord-tenant law, Daniel Bornstein is the Broker of Record for Bay Property Group, a property management company that protects and optimizes the investments of landlords. He is also renowned for his educational seminars and is called upon as an expert witness in complex real estate litigation matters. To avoid or resolve friction within rental units and cauterize risk, Daniel is happy to dispense informed advice to owners, property managers, and other real estate professionals looking to survive and thrive in today’s challenging and litigious rental housing market. Call 415-409-7611 or email [email protected].

OCTOBER 2022 - APARTMENT MANAGEMENT MAGAZINE

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APARTMENT MANAGEMENT MAGAZINE - OCTOBER 2022

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Fighting for YOUR Private Property Rights We are always here for you, standing by your side, monitoring and aggressively tyranny of ill-conceived state and local regulations. - Daniel Yukelson, Executive Director

The Apartment Association of Greater Los Angeles (AAGLA) promotes the highest levels of professionalism within the rental housing industry AAGLA offers members educational seminars and exclusive events, provides expert operational advice available daily, and supplies and maintains virtually every conceivable agreement, form, and notice rental housing providers require to successfully own and manage rental properties. AAGLA also serves as a powerful advocate and lobbyist for rental housing providers at the local, county, state, and federal levels of government. WE ARE THE VOICE THAT AFFECTS CHANGE!

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NOTICE TO CURE OR NOTICE TO QUIT?

When there is misconduct in the rental unit, a fundamental question is whether to serve a 3-day notice to cure the underlying behavior or if the conduct is so egregious and poses such a high threat to others that a 3-day notice to quit is more appropriate. This is a judgment call, and we are happy to dialogue with you. A one-off late-night party, unauthorized pets, playing loud music at night, minor damages to the premises, trash not being properly disposed of, and other minor lease violations typically will warrant a 3-day notice to cure or quit. Embedded in the notice is the right to correct the nuisance behavior. A three-day notice to quit is a much more aggressive notice by telling the tenant he or she has three days to vacate the unit, without any opportunity to “clean up their act.” We are talking about arson, drug dealing, violence, domestic disputes with an imminent threat, vandalism, prostitution, gang-related activity, stealing packages out of the mailroom, and so forth. There are many landlord-tenant attorneys in the Bay Area, but Bornstein Law has developed a core competency in handling these types of nuisance behaviors. Which notice to serve is a consequential decision that should not be taken lightly. Once a 3-day notice to quit is served, the landlord is going down the path of eviction and this may be a costly process. Moreover, not a penny in rent can be accepted in the drastic measure of serving this notice. We are happy to make this evaluation with you and determine how real and foreseeable a threat is. From our hard-won experience, past behavior is the best predictor of what will occur later - there is a high recidivism rate for nuisance behavior. At any rate, notices must be properly prepared and landlords are strongly advised to have an attorney draft it up; there are brilliant and zealous tenant attorneys hellbent on finding errors in the notice and even if the nuisance can be proved with a preponderance of the evidence, the landlord can still lose the eviction action because there were donut holes in the preparation or service of the notice. It’s also critical to build a storyline by clearly laying out the nuisance behavior in a clear, compelling fashion. Bornstein Law can assist in establishing a

fact pattern in a cohesive way for a judge or jury to consider. DEFENSES TENANTS OR THEIR ATTORNEYS CAN RAISE The first and most likely defense is either that the nuisance never happened, or the behavior is not so serious that it should result in the termination of the tenancy. Evidence that landlords can assemble to prove a nuisance includes credible eyewitness accounts, police reports, video recordings, photos of any damage, and the like. Yet there is a concern for retaliation if a witness testifies; the potential witness fears retribution for being a “snitch.” In concert with our clients, we want to assure any witnesses that their name need not be revealed in the filing of a 3-day notice to quit - we can build a case without naming the bystander who can substantiate the nuisance, as long as he or she is credible. 95 out of 100 times, eviction actions settle, and this figure should further assuage the concerns of witnesses. There is a high probability that his or her testimony will not be required. We know that the witness may still be fearful of being hurt and plaintiffs have to recognize this concern. If there is a plane crash 5 out of every 100 flights, no one in their right mind would get on a plane. However, if the case goes to trial, we will make it clear that our office subpoenaed the witness. They were compelled to come to court and do not necessarily come of their own free will. We like the coverage of a subpoena because the optics are that the complainer did not initiate the dispute - they are merely showing up to court when ordered to do so. Generally speaking, however, a witness must have the courage to come forward and testify under oath as to the nuisance conduct in order to accomplish the landlord’s goal of a vacancy. When there is narcotics trafficking, it is especially concerning for anyone witnessing the revolving door of patrons buying drugs, but another point to stress to witnesses is that when a formal notice is served upon drug peddlers, it is likely to spook them and more often than not, they will cease their narcotics business and open up shop elsewhere. Bottom line: as long as we are confident that there is something nefarious going on, Bornstein Law will act upon it and we don’t initially have to name any APARTMENT MANAGEMENT MAGAZINE - OCTOBER 2022

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witnesses at the outset. Whoever has an account of events can remain anonymous. ANOTHER DEFENSE THAT CAN BE ARGUED IS THAT THE TENANT ENGAGING IN A NUISANCE HAS A MENTAL DISABILITY

there is an immediate need to safeguard someone, while simultaneously filing an eviction action in order to sever the tenancy. DOMESTIC VIOLENCE

While a disabled tenant would ordinarily be afforded special protections under fair housing laws - the landlord normally has to accommodate the disability - Bornstein Law has successfully argued that some conduct cannot be accommodated.

It’s been said that home is where the heart is, but what happens when the home is broken? There is a different set of rules that apply when there is discord not between other tenants outside the household, but conflict within the household itself, or if the parties have a familial or intimate relationship.

For sure, there is a legitimate interest in providing housing for a disruptive tenant who professes a disability, maybe to get his or her medication stabilized. Yet some threats are so dangerous and imminent, that public health safety trumps the goal of assimilating that person into the building.

Aside from the stereotypical wife-beater who lives in the unit, there are dating partners and stalkers who prey upon the victim. And under the California Code of Civil Procedure, Chapter 4, Section 1161.3, the victim has special protections our community needs to be aware of.

Can a reasonable accommodation be made by putting in more insulation to muffle noise, or moving the problematic tenant to another part of the building, for example? Perhaps. Perhaps not. But some instances have an easy answer.

Landlords cannot endeavor to evict victims or refuse to renew a tenancy based upon domestic violence acts if the tenant can document the acts of abuse. The whole public policy behind this, of course, is that survivors of domestic violence should not be victimized twice by losing housing as a result of being mistreated.

Pouring lighter fluid in the building and attempting to light it with a match leads to a rather clear-cut decision to serve a notice to quit. Firing a gun, brandishing a knife, smashing a window with a baseball bat, or making death threats is also grounds for serving a notice to quit. We can go on, but you should get the picture. LET’S TALK ABOUT TEMPORARY RESTRAINING ORDERS (TROS) When there is clear and convincing evidence of a threat, a TRO can be sought to compel a bad actor to away from someone. It is an emergency, bandaid measure to remove an immediate threat, but removing the tenant through the standard eviction process is a more preferable, long-term solution. Historically, our office has used a TRO for clients who have front desk staff, building managers, maintenance workers, and other personnel who are subject to harassment and threats of violence. While a TRO stipulates that the menacing person keeps a certain distance away from an individual, the order doesn’t necessarily remove them from the premises. So, ideally, we want to pursue an eviction action in order to eliminate the threat once and for all, as if removing a cancerous tumor. Our office is open to proceeding with a TRO when CS-34

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Yet the law is not so forgiving to victims who allow the aggressor to visit the property. The victim cannot have it both ways - protections are stripped when they have an “open door” policy by welcoming the abuser back into the unit and the landlord has a reasonable belief that there is a threat to other tenants, guests, or licensees, or a risk to a tenant’s right to quiet enjoyment. In this case, we can proceed with an eviction. With some caveats, conversely, the victims of domestic violence can end the rental agreement without penalty and the landord may be required to change the locks, despite anything stated in the lease to the contrary. For those of you with residents in public housing and Section 8, the Violence Against Women Act (VAWA) is a federal law that affords additional protections to victims. Squatting should be treated as a criminal act of burglary and trespass, not allowed to fester as a civil action. Intermittently, we have clients who have a vacant unit and suddenly discover that there are unwanted, unknown people who have moved in without the landlord’s permission. The landlord may not become Please turn to page  CS-37

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aware of these parasitic guests until long after they moved in.

has been lingering for months on end, for example calling 911 is not a smart strategy.

The first impulse is to call the police, but we have to be artful in our communication. Squatters have become increasingly sophisticated, often producing a counterfeit lease or a utility bill, claim that the prior tenants gave them permission to stay in the dwelling, or otherwise asserting that they have a legal entitlement to occupy the premises.

At any rate, the landlord has every right to change locks when no tenancy exists. Many nuances apply, and we often encounter them when a tenant passes away and their relatives move in. The stakes are ratcheted up in jurisdictions with strict rent and eviction controls, so please consult Bornstein Law whenever a change of locks is contemplated, as a landlord can incur significant liability for an illegal lockout.

Oftentimes, this argument is persuasive enough for responding police to dismiss the squatting as a civil matter, whereupon the landlord will be told to resolve it in court. Law enforcement officers are scared to intervene in landlord-tenant matters because they know it is supposed to be done in an eviction lawsuit. What will trigger a more urgent police response is to call 911 and report an active burglary. The police will arrive more rapidly and treat it more seriously, with a greater likelihood that the squatter is arrested and removed. We hasten to say that if the rogue occupant has some link to the property - a subtenant whose master tenant vacated the property and now that subtenant

PARTING THOUGHTS There are many societal problems with no easy answers. Whether it is drug use, anger, violence, homelessness, unemployment, or other dysfunction, it will surely spill into rental units. We need to think smartly and strategically about how to deal with conduct that is not acceptable. In our 26+ years of handling all manner of depravity in rental units, Bornstein Law is well prepared to evaluate fact patterns on a case-by-case basis.

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DEAR MAINTENANCE MEN BY JERRY L'ECUYER & FRANK ALVAREZ

DEAR MAINTENANCE MEN: Can I get some pointers with preventive maintenance when it comes to heating and air conditioning? Mike Dear Mike:

4. Clean out all dust and debris inside of the A/C pan or coils. On a central HVAC unit: cleaning or replacing the main and return filters, may be the limit on a DIY cleaning. A qualified technician should do any other work on a central heating and air unit.

Heating and air condition or HVAC should be inspected at least twice a year or at the change of the major seasons such as summer and winter. Prior to summer or winter seasons, it is essential to properly inspect and troubleshoot your HVAC (a/c) units whether they are window, wall or central. Most A/C units fail or work improperly due to nonexistent or improper maintenance and not age.

DEAR MAINTENANCE MEN:

Cleaning your A/C is the most inexpensive and critical maintenance procedure you can perform.

After checking and repairing any roof damage, we recommend looking at the outside walls of the property. Stucco, wood siding or other vertical surfaces, is the building’s skin. Cracks, breaks and other damage to the siding invite “infection” to your building. This “infection” can take the form of wood rot, mold, siding delaminating or separation from the subsurface, material breakdown of the stucco will cause discoloration and crumbling. Common siding material found in most buildings is stucco, wood, brick, vinyl or concrete panels etc. Water intrusion of the siding can find its way through the smallest cracks by capillary action or more directly from misaligned sprinklers or

Here is our 4-point check list: 1. Turn on the A/C and listen for unusual noises. 2. Inspect/clean or replace filters. Filters should be cleaned or replaced at the beginning of each major season, such as before summer and before winter. 3. Clean & repair damaged or bent fins. (They can constrict proper air flow and decrease the cooling capacity of the A/C unit.

I’m getting my work check off list started before winter comes. Do you have recommendations of what should be on the check list? Lisa Dear Lisa:

Frank Alvarez is licensed contractor and the Operations Director and co-owner of Buffalo Maintenance, Inc. He has been involved with apartment maintenance & construction for over 20 years. He is also a lecturer & educational instructor and Co-Chair of the Education Committee of the Apartment Association of Orange County as well as being Chairman of the Product Service Counsel. Frank can be reached at (714) 956-8371 Frankie@ BuffaloMaintenance.com For more info please go to: www.BuffaloMaintenance.com Jerry L’Ecuyer is a licensed contractor & real estate broker. He is currently on the Board of Directors and Past President and past Chairman of the Education Committee of the Apartment Association of Orange County. Jerry has been involved with apartments as a professional since 1988. CS-38

OCTOBER 2022 - APARTMENT MANAGEMENT MAGAZINE

other water sources. A little known and often forgotten solution to leaky windows is the clogged weep holes along the bottom of the window frame and track. These weep holes clog with dust and debris and very easily can cause water to enter the building through the window frame or even through small cracks in the stucco or siding at the edges of the window frame.

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DEAR MAINTENANCE MEN: I have a unit that has pocket doors between the kitchen and living room and also between the hallway and the living room. The door has fallen off its track and no matter what I do; I can’t get it to work properly. How do I fix this problem? Jack Dear Jack: Pocket doors ... a love/hate relationship. We love them because they are an efficient use of space, but when they go bad, we hate them. Pocket doors by their nature are very secretive and getting to their internal working parts is almost impossible. Pocket doors operate very similarly to sliding closet doors. The door has a set of rollers that attach to a track above the door. Typically, what goes wrong is that either a roller bracket has come loose or one of the rollers has broken. Unlike a sliding closet door, the pocket door cannot easily be angled away from the track and removed. The only way to extract the pocket door is to remove the casing around the door opening and the vertical jamb on the side where the door that goes into the wall. The door can then be tipped out and removed. This is not easy, as sometimes the top jamb must be removed first depending on original installation. A second method is to make a four-inch hole in the wall in line with the track. This will allow access for your hand and a tool for repairs. Every door is different; a close inspection of the hardware should help determine which side of the wall to open. The most common problem with pocket doors is the screws holding the roller brackets becoming loose and getting out of adjustment. Replace the screws with a larger more aggressive thread pattern and try to use new holes if possible. Lastly, check that there are no nails or screws protruding through the drywall into the pocket door; check for hanging picture frames or other decorations. An alternative if the pocket door is not a critical use door. Using jamb or casing material, seal in the pocket door in the wall. In other words, abandon the pocket door, seal and paint the repair, call it a day!

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AMERICANS WITH DISABILITIES ACT (ADA) COMPLIANCE LAWSUITS CONTINUE TO “SPARK” IN CALIFORNIA

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By Anthony C. Guichard, President, ACR Concrete & Asphalt Construction, Inc.

e are halfway through 2022 and the accessibility laws have been in place since 1991, and in truth, that should have been plenty of time (30+ years) for property owners with public accessibility to get their properties into compliance. However, most property owners have just addressed a small portion of the ADA compliance issues at their properties. Most common of issues is a disabled parking stall; however, again I spend a lot of time and energy with my clients explaining that is not ADA compliance. The only way to protect your investments is to be proactive. Every day approximately 30 plus ADA lawsuits are filed in Federal court in Southern California and the same is true in Northern California. Most property owners come face to face with the issues once a lawsuit reaches them, and only then is that when they start to look for information and at their issues. Going to Google and researching ADA compliance brings up mountains of information, however, most of what is out there on the Internet is misinformation. You will soon come to realize that to navigate through an ADA lawsuit you will need a TEAM of experts. Your TEAM should consist of an ADA Designer who can modify the parking lot and interior of your property to meet all current Federal and California building codes. I spend a considerable amount of time educating my clients on ADA compliance because each property here in California is unique. There is no “cookie

cutter” way to achieve ADA compliance in the as-built arena unless you have a professional ADA designer to design compliance for your property. By hiring only ADA designers and contractors, you will be in a much better position since the designer also performs the corrections in house thus eliminating additional possibilities for incorrect construction which then lends itself to potential multiple, future lawsuits. You will also need an expert ADA attorney that knows how to navigate against these 5-to-6 or so law firms that are filing these cases daily. Your TEAM should also consist of a qualified, CASp inspector that will perform the initial CASp inspection to identify the actual corrections and not simply rely on the allegations within the lawsuit. A CASp inspector is a professional who has passed an examination and has been certified by the State of California to have specialized knowledge of the applicability of state and federal construction-related accessibility standards. The problems associated with not hiring a complete and qualified TEAM iare that none of the experts are working together nor do they have a history with a solid successful background to address complicated ADA issues. Ideally, when a lawsuit is filed, the first order of business is to locate and retain the complete TEAM. From here the ADA designer and/or contractor will act as the quarterback and simultaneously bring in the ADA attorney and order an initial CASp report. The ADA designer will perform a site visit and modify the complete Accessible Route to meet Federal and California building codes. AMM1/6 APARTMENT MANAGEMENT MAGAZINE - OCTOBER 2022

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The expert designer will suggest the property owner obtain a city permit for a variety of reasons that we will address shortly. The “key” is all the professionals should be separate entities so there are no conflicts of interest. For example, your CASp inspector should not be part of the payroll of the designer and/or contractor, nor have a financial stake in any of these entities. It is a conflict if a CASp inspects work the designer or contractor have performed. Additionally, ask the question if the CASp inspectors also work with law firms that file these lawsuits. This has become a big concern, so be sure to ask the question. This is also true with the designer and/or contractor, and each of they in turn should not perform the CASp inspections. Another example about conflicts is ask yourself, how a designer or contractor perform the work and in good faith tell the owner they performed the work correctly. This is why the relationships on your TEAM should involve impartial third parties. There is a considerable amount of information out there between the internet, CASp inspectors, attorneys and contractors on ADA and disabled access compliance, so be very careful. California has its own current 2019 California Business Code Section 11.B. that they adhere to; however, you must also consider Federal, especially when many of the ADA lawsuits are filed in Federal court. California has its building codes that are confusing at times but that do address compliance, and also maintains records of such through building permits showing when alterations had taken place. Often, an expert may state that you do not have to make corrections since the property was compliant 20 years ago. But, be very careful with this information since on the surface it may appear helpful, but relying on that statement and possibly doing nothing may not be in your best interest. Past building compliance is not something a city has record of nor do they have the year ADA compliance was met. So, the only way to achieve a record of compliance is by obtaining a city permit that addresses ADA compliance. Here at ACR Concrete & Asphalt Construction Corporation, our TEAM highly suggests that a city permit be obtained by our expert designer with formal plans submitted for the local jurisdiction to approve. This permit record will be attached to the property with a date creating a threshold of when ADA compliance was meet. From this point on, if the property owner obtains any other type of permit, then

local jurisdiction should require updated compliance per any new codes which typically are very minor. This process allows local jurisdiction to assist you in keeping compliant. Again, we highly suggest obtaining a city permit since virtually any work for purposes of ADA compliance requires a permit. If you attempt to perform ADA accessibility work without a permit, the city or county could shut you down and place you as the owner and your tenants in a untenable position. Furthermore, having a city inspector inspect your ADA construction and ultimately approving the project adds another set of eyes for an additional layer of protection. Here at ACR Asphalt & Concrete Construction, Inc., we do not stop there. We also insist on a CASp reinspection to catch any corrections that the city inspector may have missed. This is such a critical component in achieving ADA and Disabled Access compliance that we do not charge an additional fee for the reinspection. Through our decades of experience providing ADA compliance, we troubleshoot how and why property owners end up with multiple lawsuits prior to reaching us. The most popular is that the property owner may obtain a CASp report initially but hand it over to an asphalt contractor without a permit and “hope” they perform the work correctly – but, “hope” is not a strategy. Navigating down this path provides no final protection thus leaving the door open for additional, perhaps multiple, lawsuits. We highly suggest working with a qualified TEAM that includes an ADA designer, ADA cContractor, CASp inspector, city inspector and expert ADA attorney. This will save you time, money and frustration, and provide multiple layers of protection. Being proactive is what we have spent years educating the public on when it comes to ADA compliance. From our dozens of articles and monthly webinars, we are trying to get the word out there - BE PROACTIVE. Because once a lawsuit is filed – it becomes public notice, and the ADA compliance issues do not go away until they have been properly corrected. Merely having a disable parking space is NOT ADA Compliance and that is something that most asphalt and concrete contractors do not understand. We have seen during the last 3 years that once a property has been sued for ADA Compliance issues, that the property is likely to be sued again within 6 to 14 months if the property and ALL of its ADA corrections have not been made.

Anthony C. Guichard is the President and Founder of ACR Concrete & Asphalt Construction, Inc. He personally holds licenses; A, B, C-12, C-8 & C-32. ACR Concrete & Asphalt Construction, Inc has significant experience addressing complex ADA access compliance issues in the built environment. They are committed to improving access for individuals with disabilities by providing information, education, and access compliance solutions to commercial and rental property owners throughout the State of California. For more information, field investigation &/or CASP reports call (714) 377-9569, (562) 472-7730 or (310) 773-7900 or visit their website at www.acrconcreteinc.com 64

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WHAT MANAGERS TOLD US ABOUT FIGHTING APARTMENT APPLICATION FRAUD

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By Daniel Berlind, Chief Executive Officer of Snappt and President of Berlind Properties.

ental application fraud prevention has become the scourge of the multifamily industry in the wake of the COVID-19 pandemic. After scanning more than 1 million apartment rental application financial documents, Snappt found that 121,876 had been fraudulently altered, or one out of every eight. The problem is only getting worse. Before the pandemic, 66% of property managers said they’d been hit by application fraud. After the onset of COVID-19, that number skyrocketed to 85%. Most instances come in the form of altered bank statements, credit reports, personal data, fake pay stubs, and documents that are easily obtained online or via the dark web today but hard to spot with the naked eye. The consequences of letting those fakes through are preventable evictions when the bad actors or fraudster stops paying rent.

Nationally, the typical eviction costs $7,685. The current 12.5% rate of fraudulent applications being submitted to property managers translates into an avoidable expense of $2.8 million per year for a 3,000unit portfolio. To gain insight into how managers tackle these application screening challenges and scams today and get a handle on their most significant pain points, Snappt surveyed 230 institutional property managers nationally. Dallas-based Eleven Market Research talked with some of the largest apartment operators in the U.S.; 40% of respondents manage more than 10,000 units. They all focus on the application process and vetting as part of their jobs, with most (84%) leading teams of professionals qualifying rental applications themselves. Our “2022 Snappt State of Apartment Tenant Screening Survey” shines a spotlight on exactly how large the problem is, what property managers

Snappt, a Los Angeles based real estate technology company, provides a quick and inexpensive data-driven fraud detection service that can accurately spot fraudulent documentation. Snappt is used by four of the top five property management firms in the U.S. AMM1/6 APARTMENT MANAGEMENT MAGAZINE - OCTOBER 2022

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can do to combat it, and the tools, such as artificial intelligence, knowledge-based authentication (KBA), machine learning algorithms, and real-time behavioral biometrics and analytics, to fight this ever-escalating war. APPLICATION VETTING GOALS AND CHALLENGES Nearly 9 out of every 10 (89%) survey respondents said making sure applicants can afford the rent and avoiding future payment issues and evictions were significant goals of their application vetting process. But the challenges of hitting those goals today are daunting due to digital fraud and the ease with which bank statements and pay stubs can be altered. Altered documentation was the biggest problem identified in the survey, with 84% of respondents saying it was a somewhat or highly significant challenge. Given these issues, property managers do what they can to stop fraud losses before it gets in the front door, including: Asking for statements from financial institutions such as pay stubs and bank statements (78%)

But even after taking these steps, managers said that all types of fraud in its many forms, bust out fraud, firstparty fraud, third-party fraud, and synthetic identity fraud, are still slipping through the cracks. More than three-quarters of respondents -- 78% -said the fact that their process wasn’t spotting bad applicants was a somewhat or highly significant challenge. In comparison, 75% put screening reports that contain incorrect information in the same tranche. Finally, the staff time it takes to vet applicants was among the most significant challenges for 69% of respondents. (Previous surveys indicate property staff spends between four and 10 hours on the vetting process for each applicant.) THREE CORE COMPONENTS OF APPLICATION VETTING The length and complexity of the process speak to the severity of the challenge property managers face. But just three of these steps were viewed as the most critical by managers, with high percentages rating them as somewhat or extremely important. They were: • Vetting an applicant’s identity (92%)

Using tenant screening software (66%)

• Verifying the accuracy of a pay stub (90%)

Running credit checks (61%)

• Authenticating bank statements (89%)

Implementing identity verification (59%) Using a solution to detect fraudulent docs (59%) Checking references (56%) Fingerprinting and running background check (56%)

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Checking prior convictions (56%) Linking bank accounts to avoid payment issues (33%)

While multiple identification verification platforms are available on the market today, only Snappt targets pay stubs and bank issuer statement verification. By unmasking the “digital DNA” behind those documents to ensure they have not been altered, we are able to help managers win the war against application fraud in minutes instead of hours while avoiding high, preventable eviction expenses. Snappt is the only platform that can minimize the risk of tenant fraud and bad debt with revolutionary data-driven fraud detection software.

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PROPOSITION 19 WAS A TOTAL BAIT AND SWITCH, PROPOSITION 30 THIS YEAR IS, TOO!

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By Jon Coupal, Howard Jarvis Taxpayers Association

efore voters get too consumed with the upcoming November election and the myriad of special-interest initiatives on the ballot, let’s take a moment to review a harsh lesson in ballot measure “bait and switch” tactics, specifically Proposition 19 from November 2020. What happened with that measure could easily repeat itself with one of the initiatives we’ll be voting on in a few weeks.

the Death Tax on property owners that voters had eliminated back in 1986. Since 2020, thousands of Californians who have suffered the death of a parent have received notifications from county assessors that their family property will be reassessed to current market value, triggering a huge tax increase. A recent hearing before California’s Board of Equalization highlighted the pain that Proposition 19 has caused. In fact, the damage inflicted on California families increases with every death of a parent or grandparent who owns real estate.

Proposition 19 (passed in 2020) repealed an important taxpayer protection from the California Con-stitution that taxpayers had relied on for nearly 35 years. When it went into effect, it resurrected

In its weekly CalTaxLetter, the California Taxpayers Association reported that the Board of Equalization’s annual Taxpayers’ Bill of Rights hearing, held August 30, 2022, in Sacramento, was dominatAMM1/6 APARTMENT MANAGEMENT MAGAZINE - OCTOBER 2022

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ed by property owners blasting Proposition 19 for triggering major property tax increases on inherit-ed properties. “For approximately four hours, property owners testified that Proposition 19 is wiping out the wealth of lower- and middle-class families whose elders sacrificed to become property owners, intending to pass property to children and grandchildren. Many of the witnesses blasted the sponsors, accusing them of misleading voters.” Misleading indeed. One of the ploys used by Proposition 19 proponents was to include a convoluted provision that, in theory, was to provide additional funding for firefighting operations. This was a calculated move by the California Association of Realtors, the primary proponent of Proposition 19, to tug at the heart-strings of voters using a popular cause. Just as today, the months leading up to the general election in 2020 were dominated by fires burning throughout the state, so it was politically wise for CAR to dedicate a small fraction of the revenue to firefighters, a group that enjoys a high level of popularity. So did Proposition 19 help California fight raging fires in the state? Apparently not. A recently released letter from the Department of Finance, known as a “transfer letter,” concluded that “there were no additional revenues and no increased savings to the state from the implementation of [Proposition 19]. Therefore, by September 15, 2022, the Controller will not transfer any funds to the California Fire Response Fund or the County Revenue Protection Fund….” This November will mark two years since the passage of Proposition 19, which most voters were not informed contained the largest property tax increase in California history. But as in 2020, this No-vember’s election presents another example of

how special interests are exploiting voters’ sympathies for firefighting. Proposition 30 is a November 2022, statewide ballot measure that if enacted would impose a new state income tax of 1.75% on income over $2 million to raise $3 billion to $4.5 billion annually. It is a special interest carve-out by a single corporation, Lyft, to force taxpayers to foot the bill for Lyft’s transition to the use of electric vehicles. Under the measure, 20% of the revenue would be dedicat-ed to the “Wildfire Greenhouse Gas Emissions Reduction Sub-Fund.” All that might sound good, but the Legislative Analyst questioned whether the measure would really have a positive effect in re-ducing wildfire severity. Acknowledging that the measure could “somewhat decrease” costs related to firefighting “if the additional funding for wildfire activities ends up reducing the severity of future wildfires,” the Legislative Analyst Office has cautioned that the cost reductions would depend on how the money will be spent, whether the funded activities actually help, and how severe wildfires would have been without the activities that were funded. “All of these factors are uncertain,” the in-dependent Legislative Analyst Office concluded, “which makes the size of the potential fiscal effects on state and local governments unclear.” It’s deceitful for special interests to pretend that the tax increases they propose will fund firefighting, just to fool the voters. It’s only going to make them burning mad. Jon Coupal is President of the Howard Jarvis Taxpayers Association. The opinions expressed in this article are those of its author and not necessarily those of the Apartment Association of Greater Los Angeles. This article is being reprinted with permission from the Howard Jarvis Taxpayer Association and the author.

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Financial Advisory

Without a 1031 Exchange, Those Taxes Can be Costing You More Than You Think BY CHRISTOPHER MILLER, MBA

I

SPECIALIZED WEALTH MANAGEMENT have written many times in the past about just how much damage taxes can do to your wealth building plans. It is an important topic that I think is worthy of a review.

Let’s say that you bought 4 units in Orange County for $300,000 back in 1998, and that you sold them this year for $1,800,000. The IRS now uses a tax bracket system to divide your gains between the 15% and 20% rates. For this example, we will use 19% since the gain is so high. This gives us a Capital Gain of ($1,800,000 $300,000 = $1,500,000) and a Capital Gains tax to the IRS of ($1,500,000 X 19% = $285,000.) That’s not too bad, right? That’s not all there is. Remember that the state you live in will (if they have a capital gains tax) want “their share,” too. California will charge a graduated rate that currently goes all the way up to 13.2%. Let’s estimate this at 10%. So – your Capital Gain to California will be 10% of $1,500,000 or an additional $150,000. ACCUMULATED DEPRECIATION So far, our tax bill is $285,000 + $150,000 = $435,000. Next we need to pay accumulated depreciation taxes. All the depreciation benefits we

enjoyed over the ownership period need to be paid back to the IRS at a 25% rate. Our depreciation benefits are based on our initial purchase price, the percentage of that price that is assigned to improvements value (since we can’t depreciate land), and on a 27.5 year ownership period for residential rental property. Our purchase price was $300,000 and let’s say that we estimated 80% of that value to be improvements value. Our annual depreciation would be ($300,000 x 80%) / 27.5 = $8,727. Since 1998 is 24 years ago, we have taken $8,727 x 24 = $209,454 of depreciation. Twenty five percent of this ($209,454 x 25% =) is an additional $52,364 going to the IRS. Once again, California will want a part of this as well, with their same tax scale that tops out at 13.3%. Let’s call this 10% as well and that’s ($209,454 X 10%=) $20,945 going to California. “OBAMACARE TAX” After all that, there’s one more tax! The “Obamacare Tax,” or Net Investment Income Tax is 3.8% of your capital gain. That is $1,500,000 x 3.8% = $57,000. TOTAL TAXES DUE That total of everything above is $285,000 + Please turn to page  76

Christopher Miller is a Managing Director with Specialized Wealth Management and specializes in tax-advantaged investments including 1031 replacement properties. Chris’ real estate experience includes work in commercial appraisal, in institutional acquisitions for a national real estate syndicator and as an advisor helping clients through over four hundred and fifty 1031 Exchanges. Chris has been featured as an expert in several industry publications and on television and earned an undergraduate business degree and an MBA emphasizing Real Estate Finance from the University of Southern California. Chris began his real estate career in 1998. Call him toll-free at (877) 313 – 1868. 74

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Financial Advisory Continued from page  74

$150,000 + $52,364 + $20,945 + $57,000 = $565,309. So your sales proceeds of $1,800,000 is $1,234,691 after your are done paying what turns out to be ($565,309 / $1,500,000=) a 38% tax on your gain. This is why the 1031 Exchange is such a popular tool with real estate investors. MISSING OUT ON INCOME POTENTIAL If your next investment with those proceeds has the potential to pay 5% annual income, that could give you ($1,234,691 x 5%=) $61,735 of annual income. Had you deferred (potentially forever) that tax, your full $1,800,000 sales proceeds could be earning you $90,000 annually. MISSING OUT ON GROWTH POTENTIAL If your next investment, in addition to paying the above-mentioned annual income, appreciates at 4% per year, then your sales proceeds at your next sale could be $1,827,644. (Near where you used to be – and ready for another tax bite.) Had you deferred (again – potentially forever) your taxes the last time, your full $1,800,000 could grow to $2,664,439 upon sale in 10 more years. This is where the differences are much more noticeable: How much income can you earn on your next investment with $2.6 million

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of principal vs. $1.8 million? What will it look like for your heirs much further into the future? I know that writing an article for rental property owners that stresses the importance of deferring taxes to preserve returns is preaching to the choir a bit, but we can all use a periodic review of real estate investment fundamentals. All these taxes can be deferred with a 1031 Exchange. How long are they deferred? As I always say: “potentially forever.” All the deferred taxes from 1031 Exchanges will follow you until your death. When that occurs, your heirs will receive a stepped-up basis and those taxes will disappear forever. I and many of my clients plan to own our rental real estate and enjoy the income from it for the rest of our lives by completing 1031 Exchanges after every sale to maximize income and growth potential. Upon our deaths, all our capital gains and accumulated depreciation (and therefore the taxes due on them) will disappear, and our heirs will receive the full value of our life’s work. I hope this article can save you taxes and keep more of your equity working for you and your heirs. If you would like to discuss this more, my office number is (877) 313-1868.

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State

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ADVERTISING DIRECTORY 1031 EXCHANGES Kay Properties & Investments . . . . . . . . . . . . . . . . . . . 3 Specialized Wealth Management . . . . . . . . . . . . . . . 12 AIR CONDITIONING Feder’s Distributors . . . . . . . . . . . . . . . . . . . . . . . . CS-16

Lowe’s Pro Supply . . . . . . . . . . . . . . . . . . . . . . . . CS-19

CABINETS

DOORS/DOOR HANGING Buffalo Maintenance . . . . . . . . . . . . . . . . . . . . . . . CS-39

Builders Surplus Kitchen & Bath Cabinets . . . . . . . . .22

Lowe’s Pro Supply . . . . . . . . . . . . . . . . . . . . . . . . CS-19

Lowe’s Pro Supply . . . . . . . . . . . . . . . . . . . . . . . . CS-19

SIVAN Windows & Doors. . . . . . . . . . . . . . . 82

CLEANING/MAINTENANCE

Wintorium Windows & Doors Co. . . . . . CS-31

DRAIN & SEWER CLEANING

Genie Air Conditioning & Heating . . . . . . . . . . . . . . . 83

1st Reliable Maintenance . . . . . . . . . . . . . . . . . . . CS-20

R & B Wholesale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Buffalo Maintenance . . . . . . . . . . . . . . . . . . . . . . . CS-39

1st Reliable Maintenance . . . . . . . . . . . . . . . . . . . CS-20

West Coast Chief Repair . . . . . . . . . . . . . . . . . . . . . . . 11

Lowe’s Pro Supply . . . . . . . . . . . . . . . . . . . . . . . . CS-19

Challenge Plumbing . . . . . . . . . . . . . . . . . . . . . . . . . . 73

APARTMENT ASSOCIATION Foothill Apartment Association . . . . . . . . . . . . . . . . . . 7 APPLIANCE RENTALS/SALES Feder’s Distributors . . . . . . . . . . . . . . . . . . . . . . . . CS-16 Lowe’s Pro Supply . . . . . . . . . . . . . . . . . . . . . . . . CS-19

COIN-OP LAUNDRY

Superior 1 Plumbing . . . . . . . . . . . . . . . . . . . . . 65

Ace Commercial Laundry . . . . . . . . . . . . . . . . . . CS-29 WASH Laundry . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-2 West Coast Chief Repair . . . . . . . . . . . . . . . . . . . . . . . 11 COLLECTIONS Brennan Law Firm . . . . . . . . . . . . . . . . . . . . . . . . CS-12

West Coast Chief Repair . . . . . . . . . . . . . . . . . . . . . . . 11

Dennis Block & Assoc . . . . . . . . . . . . . . . . . . . . . . . . . .9 COMMERCIAL LENDING Luther Burbank Savings . . . . . . . . . . . . . . . . . . . . . . . 21

Lowe’s Pro Supply . . . . . . . . . . . . . . . . . . . . . . . . CS-19

Provident Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

West Coast Chief Repair . . . . . . . . . . . . . . . . . . . . . . . 11

Red Tower Capital . . . . . . . . . . . . . . . . . . . . . . . . . CS-6 CONCRETE/MASONRY A C&C Paving . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-7

City Service Paving . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

City Service Paving . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

MGB Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

MGB Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

ATTORNEYS

EARTHQUAKE RETROFIT ADU1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-5 Titan Commercial Retrofit . . . . . . . . . . . . . . . . . . . . . .15 ELECTRICAL/LIGHTING ASI Electric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-15 Lowe’s Pro Supply . . . . . . . . . . . . . . . . . . . . . . . . CS-19

A C&C Paving . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-7

Rash Yambo Asphalt Repair . . . . . . . . . . . . . . . . . CS-8

Buffalo Maintenance . . . . . . . . . . . . . . . . . . . . . . . CS-39

Alpha Structural . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

1st Reliable Maintenance . . . . . . . . . . . . . . . . . . . CS-20

ASPHALT/PAVING

DRYWALL Lowe’s Pro Supply . . . . . . . . . . . . . . . . . . . . . . . . CS-19

R & B Wholesale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 APPLIANCE REPAIR/INSTALLATION

Western Rooter & Plumbing . . . . . . . . . . . . . . . . . . . .13

COUNTERTOPS

ELECTRONIC PAYMENT PROCESSING PayRent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-6 ENERGY UPGRADES / REBATES Livable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-35

Builders Surplus Kitchen & Bath Cabinets . . . . . . . . .22

ENGINEERING

Brennan Law Firm . . . . . . . . . . . . . . . . . . . . . . . . CS-12

Lowe’s Pro Supply . . . . . . . . . . . . . . . . . . . . . . . . CS-19

Alpha Structural . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

Dennis Block & Assoc . . . . . . . . . . . . . . . . . . . . . . . . . .9

Professional Reglazing . . . . . . . . . . . . . . . . . . . . . . . . 20

EEEAdvisors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-40

BACKGROUND SCREENING ApplyConnect . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-26 BATHROOM FANS/HEATERS ASI Electric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-15 Lowe’s Pro Supply . . . . . . . . . . . . . . . . . . . . . . . . CS-19

BATHTUB REFINISH & REPAIR

CREDIT CHECKS & REPORTING ApplyConnect . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-26 PayRent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-6 DECKING / STAIRS / GUARDRAILS ABC Decking & Stairs . . . . . . . . . . . . . . . . . . . . . . CS-4

Peter T. Erdelyi & Associates . . . . . . . . . . . . . . . . . . . . 5 EVICTIONS Brennan Law Firm . . . . . . . . . . . . . . . . . . . . . . . . CS-12 Dennis Block & Assoc . . . . . . . . . . . . . . . . . . . . . . . . . .9 FENCES/GATES/HANDRAILS

AB Express Decking . . . . . . . . . . . . . . . . . . . . . . . CS-29

ABC Decking & Stairs . . . . . . . . . . . . . . . . . . . . . . CS-4

Bryan’s Reglazing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Buffalo Maintenance . . . . . . . . . . . . . . . . . . . . . . . CS-39

AB Express Decking . . . . . . . . . . . . . . . . . . . . . . . CS-29

Builders Surplus Kitchen & Bath Cabinets . . . . . . . . .22

California Best Painting & Decking . . . . . . . . . CS-22

Buffalo Maintenance . . . . . . . . . . . . . . . . . . . . . . . CS-39

L.A.’s Bathtub Refinishing . . . . . . . . . . . . . . . . . . . . . .10

LD Steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18

Lowe’s Pro Supply . . . . . . . . . . . . . . . . . . . . . . . . CS-19

Professional Reglazing . . . . . . . . . . . . . . . . . . . . . . . . 20

National Deck & Stair . . . . . . . . . . . . . . . . . . . . . . CS-15

Rash Yambo Asphalt Repair . . . . . . . . . . . . . . . . . CS-8

BUILDING SUPPLIES Builders Surplus Kitchen & Bath Cabinets . . . . . . . . .22

ROA Antony Decking . . . . . . . . . . . . . . . . . . . . . . . CS-7 Yambo Decking & Stairs . . . . . . . . . . . . . . . . . . . . . CS-8

FINANCIAL / ESTATE PLANNING Specialized Wealth Management . . . . . . . . . . . . . . . 12

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ADVERTISING DIRECTORY GENERAL CONTRACTORS

PLUMBING/REPIPING

Buffalo Maintenance . . . . . . . . . . . . . . . . . . . . . . . CS-39

1st Reliable Maintenance . . . . . . . . . . . . . . . . . . . CS-20

Misong Construction . . . . . . . . . . . . . . . . . . . . . . . . . .66

BobCo Plumbing . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

HANDYMAN

SLIDING DOORS Wintorium Windows & Doors Co. . . . . . CS-31

SMOKE/CARBON MONOXIDE DETECTORS

Buffalo Maintenance . . . . . . . . . . . . . . . . . . . . . . . CS-39

ASI Electric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-15

1st Reliable Maintenance . . . . . . . . . . . . . . . . . . . CS-20

Challenge Plumbing . . . . . . . . . . . . . . . . . . . . . . . . 73

Lowe’s Pro Supply . . . . . . . . . . . . . . . . . . . . . . . . CS-19

Buffalo Maintenance . . . . . . . . . . . . . . . . . . . . . . . CS-39

Superior 1 Plumbing . . . . . . . . . . . . . . . . . . . . . . . 65

HEATING Feder’s Distributors . . . . . . . . . . . . . . . . . . . . . . . . CS-16

Western Rooter & Plumbing . . . . . . . . . . . . . . . . . . . .13 PROPERTY MANAGEMENT

Lowe’s Pro Supply . . . . . . . . . . . . . . . . . . . . . . . . CS-19

Beven & Brock Property Management . . . . . . . . . . 18

R & B Wholesale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Investors Realty Trust Group . . . . . . . . . . . . . . . . . . . 70

West Coast Chief Repair . . . . . . . . . . . . . . . . . . . . . . . 11

LRS Property Management . . . . . . . . . . . . . . . . . . . .16

HOUSING AUTHORITIES Housing Authority of San Bernardino . . . . . . . . . . . . 2 INSURANCE

Newfront Insurance . . . . . . . . . . . . . . . . . . . . . . . . CS-19 IRON WORK/WELDING

National Deck & Stair . . . . . . . . . . . . . . . . . . . . . . CS-15 Rash Yambo Asphalt Repair . . . . . . . . . . . . . . . . . CS-8 ROA Antony Decking . . . . . . . . . . . . . . . . . . . . . . . CS-7 KITCHEN & BATH REMODELING

RAINGUTTERS Buffalo Maintenance . . . . . . . . . . . . . . . . . . . . . . . CS-39 Chung Roofing Company . . . . . . . . . . . . . . . . CS-3

SOFT STORY ADU1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-5 Alpha Structural . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Titan Commercial Retrofit . . . . . . . . . . . . . . . . . . . . . .15 SUPPORTIVE HOUSING PROVIDER SERVICES Housing Authority of San Bernardino . . . . . . . . . . . . 2 TENANT SCREENING ApplyConnect . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-26 TILE/TILE REPAIR

Cool Pro, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Bryan’s Reglazing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Honest Construction . . . . . . . . . . . . . . . . . . . . . CS-3

Buffalo Maintenance . . . . . . . . . . . . . . . . . . . . . . . CS-39

RATIO UTILITY BILLING (RUBS)

Livable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-35 REMODELING/REHAB

Glendale Tiles and Tops . . . . . . . . . . . . . . . . . . . . . . . 73 Lowe’s Pro Supply . . . . . . . . . . . . . . . . . . . . . . . . CS-19

TOILETS/SINKS/FAUCETS

Alpha Structural . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

Buffalo Maintenance . . . . . . . . . . . . . . . . . . . . . . . CS-39

1st Reliable Maintenance . . . . . . . . . . . . . . . . . . . CS-20

Buffalo Maintenance . . . . . . . . . . . . . . . . . . . . . . . CS-39

Lowe’s Pro Supply . . . . . . . . . . . . . . . . . . . . . . . . CS-19

Buffalo Maintenance . . . . . . . . . . . . . . . . . . . . . . . CS-39

Misong Construction . . . . . . . . . . . . . . . . . . . . . . . . 66

Builders Surplus Kitchen & Bath Cabinets . . . . . . . .22 Lowe’s Pro Supply . . . . . . . . . . . . . . . . . . . . . . . . CS-19

Professional Reglazing . . . . . . . . . . . . . . . . . . . . . .20 LEAK DETECTION BobCo Plumbing . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 LEASING / MARKETING

RENT COLLECTION & REPORTING PayRent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-6 ROOFING/ROOFING REPAIRS AceTek Roofing . . . . . . . . . . . . . . . . . . . . . . . . . CS-28 Chung Roofing Company . . . . . . . . . . . . . . . . CS-3

USED APPLIANCES Feder’s Distributors . . . . . . . . . . . . . . . . . . . . . . . . CS-16

West Coast Chief Repair . . . . . . . . . . . . . . . . . . . . . . . 11 UTILITIES REBATES Livable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-35 WATER HEATERS/BOILERS

Cool Pro, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

BobCo Plumbing . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

Honest Construction . . . . . . . . . . . . . . . . . . . . . CS-3

Challenge Plumbing . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Misong Construction . . . . . . . . . . . . . . . . . . . . . . . 66

Feder’s Distributors . . . . . . . . . . . . . . . . . . . . . . . . CS-16

Lowe’s Pro Supply . . . . . . . . . . . . . . . . . . . . . . . . CS-19

Royal Roofing . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-25

Lowe’s Pro Supply . . . . . . . . . . . . . . . . . . . . . . . . CS-19

R & B Wholesale . . . . . . . . . . . . . . . . . . . . . . . . . . 84

T&G Roofing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-1

R & B Wholesale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

LRS Property Management . . . . . . . . . . . . . . . . . . . .16 MAILBOXES

PAINTING/JANITORIAL

SEISMIC RETROFIT

1st Reliable Maintenance . . . . . . . . . . . . . . . . . . . CS-20

ADU1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CS-5

California & Decking . . . . . . . . . . . . . . . . . . . . . . CS-22

Alpha Structural . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

Lowe’s Pro Supply . . . . . . . . . . . . . . . . . . . . . . . . CS-19

Titan Commercial Retrofit . . . . . . . . . . . . . . . . . . . . . .15

Misong Construction . . . . . . . . . . . . . . . . . . . . . . . 66

SHOWER WALLS/DOORS/REPAIRS

Superior 1 Plumbing . . . . . . . . . . . . . . . . . . . . . . . 65

West Coast Chief Repair . . . . . . . . . . . . . . . . . . . . . . . 11 WINDOWS/GLASS Buffalo Maintenance . . . . . . . . . . . . . . . . . . . . . . . CS-39 Lowe’s Pro Supply . . . . . . . . . . . . . . . . . . . . . . . . CS-19

Pacific Painting . . . . . . . . . . . . . . . . . . . . . . . . . CS-36

Buffalo Maintenance . . . . . . . . . . . . . . . . . . . . . . . CS-39

SIVAN Windows & Doors. . . . . . . . . . . . . . . 82

Rash Yambo Asphalt Repair . . . . . . . . . . . . . . . . . CS-8

Lowe’s Pro Supply . . . . . . . . . . . . . . . . . . . . . . . . CS-19

Wintorium Windows & Doors Co. . . . . . CS-31

YJC Choice Painting . . . . . . . . . . . . . . . . . . . . . . . . . 76

Professional Reglazing . . . . . . . . . . . . . . . . . . . . . . . . 20

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