Views from AAGLA's President

AAGLA Accomplishes a Lot in 2009

Thank You

 

This year has gone by quickly, and I want to thank the AAGLA Board of Directors, Committees and members, and everyone else within AAGLA, for their help and support during the year. Here are few of the things AAGLA was able to accomplish.

 

$30-Million Lawsuit

 

AAGLA and the HOWARD JARVIS TAXPAYERS ASSOCIATION joined forces to stop the DWP from making $30 million annual contributions to L.A.'s General Fund, over $120 million since the lawsuit was filed, by virtue of the judgment. DWP has the option of refunding the money, applying it to rate reductions in the future, or applying it to upgrade its infrastructure.

 

Bad-Debt Reporting

 

We established a means for our members to report bad debt by using the Landlord Record/Debt Reporting To the Credit Bureaus Form. If someone skips out owing money, you have some recourse and can report them.

 

Hope-Net

 

This year AAGLA began a partnership with Hope-Net, a local non‑profit founded in 1988 which operates 12 food pantries in the Los Angeles area to provide food and clothing to those in need.

 

Trade Show

 

And according to those who attended our 13th Annual Trade Show, it was the best Trade Show ever. We want to thank all who participated and attended.

 

Santa Monica Common Ground Meeting

 

We also helped stage an event in Santa Monica to mark the 301h anniversary of rent control. Finding Common Ground In Changing Times was successful, and co-sponsored with the Santa Monica City Attorney's Office, the Santa Monica Rent Control Board, Action Apartment Association, and the Legal Aid Foundation of Los Angeles.

 

NAA Affiliation

 

AAGLA is now officially affiliated with the National Apartment Association (NAA), which gives our association a national presence.

 

Worker's Comp

 

We also were able to offer our members a cost-effective Worker's Comp Insurance Program through Jim Coady, with ISU Derby & Associates Insurance.

 

Finally, hiring Jim Clarke as the Executive Director of AAGLA to run the organization and replace the retiring Charles lsham was one of the best accomplishments during of my year as President. Jim is doing an excellent job during unusually difficult times for our industry and our nation, and will continue to do so in the future.

 

Congratulations Earle Vaughan

 

It has been my pleasure to serve as your President during 2009. Congratulations and good luck to our incoming President, Earle Vaughan. I know he'll keep up the good work.

 

Wrap up on New Services and Alliances

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lot has been happening as we wind our way down toward the end of the year.

 

Hope Net

AAGLA recently began a partnership with Hope‑Net, a local non‑profit that provides food and clothing to those in need. Hope‑Net was founded in 1988, and operates 12 food pantries in the Los Angeles area. Staffed by one employee, the group relies on the work of volunteers and receives support from local businesses, schools and the community at large. Its motto is, "That none should go hungry."

We look forward to helping make a difference in the community through our involvement with HopeNet.

 

Trade Show/Special Santa Monica Meeting

Congratulations for the success of AAGLA's 13th Annual Trade Show. Thank all of you who participated and attended this year's event.

We also want to thank those who attended and helped with the success of the recent event AAGLA co‑sponsored in Santa Monica, Finding Common Ground In Changing Times. And we thank the other sponsors of the event, the Santa Monica City Attorney's Office, the Santa Monica Rent Control Board, Action Apartment Association, and the Legal Aid Foundation of Los Angeles.

 

NAA

As you may know, AAGLA is now affiliated with the National Apartment Association (NAA), which gives our association a national presence and will provide some new valuable member benefits.

 

Worker's Comp

Don't forget that AAGLA now offers its members a Worker's Comp Insurance Program. Please contact Jim Coady with ISU Derby & Associates Insurance at 800-926-4478 for more information about this new program and how it will benefit you, or email Jim at jim@isuderby.com.

 

Stay with us. Exciting times await.

AAGLA Affiliates with the National Apartment Association

 

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he Apartment Association of Greater Los Angeles (AAGLA) is now affiliated with the National Apartment Association (NAA). This gives our association a national presence.

 

We will be following up with additional information about the benefits of the affiliation with NAA, and also urge you to attend this month's Main Office Meeting on Saturday, October 10, at 10:00 a.m., which will feature Tara Bannister, Regional Vice President of NAA (see calendar).

 

Bad Debt Reporting

 

We now have a debt reporting service available for our members to use. This feature will allow property owners to report bad debt and give you another tool to use in evaluating applicants by identifying those who owe their former landlords money even though an eviction action may not have been filed. Please contact Maureen (ext. 308) or Cindy (ext. 304) to get information about this service and get a debt reporting form you can use.

 

Trade Show

 

AAGLA's 13th Annual Trade Show will be held on Wednesday, October 21, 2009, at the Sportsmen's Lodge, located at 1283 Ventura Blvd. in Studio City. This is a wonderful event which features information-packed seminars, and exhibitors showcasing the latest technology and problem-solving products and services. And you get a chance to meet and mingle with other AAGLA members and industry experts at the show.

 

Worker's Comp Insurance

 

Don't forget that AAGLA now offers its members a Worker's Comp Insurance Program. Please contact Jim Coady with ISU Derby & Associates Insurance at 800-296-4478 for more information about this new program and how it will benefit you.

 

Much Ado About Numerous Notable Issues

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AGLA expects to be approved for affiliation with the National Apartment Association at its September Board of Directors meeting this month. Stay tuned for more details on this exciting proposition.

 

New Health Dept. Inspections

The County of Los Angeles Public Health and Environmental Health Department sent out letters about its new Healthy Homes Inspection Program, which will make recommendations intended to prevent or reduce housing related health and safety hazards.

The new program differs from inspections for code violations, which must be corrected. For more information, please read the article on page 18.

 

Trade Show

AAGLA's 13th Annual Trade Show will be held on Wednesday, October 21, 2009, at the Sportsmen's Lodge, located at 12833 Ventura Blvd. in Studio City.

This is a wonderful event which features information-packed seminars, and exhibitors showcasing the latest technology and problem-solving products and services. And you get a chance to meet and mingle with other AAGLA members and industry experts at the show.

 

Workers Comp

 

Don't forget that AAGLA now offers its members a Worker's Comp insurance program. Please contact Jim Coady with ISU Derby & Associates Insurance at 800-296-4478 or e-mail for more information about this new program and how it will benefit you.

Final Judgment Entered in $30-Million Water Case –
Bad Debt Reporting Restored

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he California Apartment Law Information Foundation (CALIF) announced that AAGLA and the Howard Jarvis Taxpayers Association (HJTA) won our lawsuit against the City of Los Angeles as on July 2 the Los Angeles Superior Court entered the final judgment in the case in favor of AAGLA and HJTA, prohibiting the city from transferring $30-million from the DWP to the city's general fund.

PWP had overcharged customers nearly $30-million above what it needed to provide water and water-related services. For years, the city has diverted the excess money to other purposes.

The court found the city violated Proposition 218, which prohibits it from imposing fees or charges exceeding those needed, in this case the funds DWP required to provide water and water-related service.

Stay tuned next month for a complete report from CALIF on this important legal victory.

 

Bad-Debt Reporting Restored to AAGLA Members

 

Another new feature (which we had in the past) we will be adding for our members is bad-debt reporting. Sometimes, tenants leave their apartments owing owners money.

AAGLA's new bad-debt-reporting service will give property owners another tool for evaluating applicants, and identifying those who owe their former landlords money, even when an eviction action may not have been filed.

The Landlord Record/Debt Reporting To the Credit Bureaus Form will soon be available for use by our members if it is not already printed. Check with your favorite local AAGLA office for availability.

 

Workers Comp Insurance Program Now in Place

 

We've been talking about it for months, and now AAGLA at long last has a Workers Compensation Insurance Program for members. For more information about the new Workers Compensation Insurance Program.

 

And remember, "Membership doesn't cost, it pays."

 

AAGLA Announces New FREE Member Service —
List Your Vacancies on Our Website

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AGLA offers members a wide range of services. This month I want to tell you about an exciting, new, cost-free member service. Take advantage of using our new online vacancy listing service today by posting your vacancies online at aagla.org. Just click on the button and follow the prompts.

And when you are online, you can find updated forms. Many of them are interactive, allowing you to type in information, then save and print them. It comes in really handy for preparing rental agreements or notices.

You can also access our low-cost tenant screening online (call for information), or if you prefer, just call our staff and they will continue to provide tenant screening for you the old fashioned way.

If you are interested in using online tenant screening, there are some security requirements. You should contact our staff to find out about them.

 

All the services mentioned above are available online, including vendor referrals, attorney referrals and legal information, just to name a few more. And don't forget our widely‑read and respected Apartment Age Magazine, which includes ads from our loyal advertisers, and is available online, too.

Finally, remember to sign up for email notifications and information.

If you don't have access or prefer to not use the Internet, you still can get all these services. Just call or visit our friendly staff at any of our offices.

Now, you may soon be able to get reasonable Workers Compensation insurance through AAGLA. If you haven't already done so, please complete and return this Workers Compensation Questionnaire. This program will provide an important new service to AAGLA and its members.

Watching Your Back and Saving Your Money

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very year a delegation of AAGLA board members and faithful make the trek to Sacramento to meet with legislators and their staff to discuss upcoming legislation that may significantly impact the apartment industry. Eight of us made the trip this year. They include, yours truly, State Committee Chairman Rick Otterstrom, Vice Chair Irma Vargas, Arnie Corlin, Gabriela Litov, Lainy Parry, and her husband Jason, and AAGLA member Greg Hall.

AAGLA's State Lobbyist, Steve Carlson, and Government Relations Manager, Jim Clarke, did a superb job of setting up meetings with several legislators. Both Steve and Jim do an excellent job year round representing AAGLA and its members on the legislative front.

In another vein, in May AAGLA was an exhibitor at the Benjamin S. Crocker Symposium, held at the Los Angeles Convention Center. The Crocker Symposium attracts leaders from all aspects of the housing industry, including property owners, associations, bankers, attorneys, accountants and the government. This year's keynote speaker was California State Controller John Chiang.

And I want to congratulate the AAGLA staff and legal team for keeping a vigilant eye on the City of Los Angeles and the Department of Water and Power and for our recent legal "victory" on excess water funds collected by the DWP, which was to be transferred to the city.

AAGLA and the Howard Jarvis Taxpayers Association (HJTA) filed a lawsuit resulting in a preliminary court order for DWP to refund or give rate reductions to those customers who paid the extra $30 million. This is a good example of how AAGLA works to save its members money.

Speaking of saving you money, we are working hard to get reasonable Workers Compensation insurance for you through AAGLA. If you haven't already done so, please complete and return the Workers Compensation Questionnaire on Page 6. This program will provide an important new service to AAGLA and its members

And always, remember, "Membership doesn't cost, it pays."

 

Workers Comp Insurance and Getting and Keeping Renters

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 hope you all read last month's column about getting reasonable Workers Compensation insurance through AAGLA. If you haven't had the opportunity, to complete and return the questionnaire, please do so. This program will provide an important AAGLA member service.

 

Preventing & Renting Vacancies

 

Times are tough. In Santa Monica, we are seeing more vacancies and lower rents. Members report they are experiencing the same thing throughout Los Angeles County. With all the vacancies and resulting competition, be aggressive and creative in retaining good tenants paying market rent. Little things make a big difference. Here are some tips for keeping and getting tenants.

 

Be polite.

 

Give great service.

 

Clean up the laundry room and empty the trash, and paint the room if it needs it.

 

Paint the front doors of the apartments and the gates.

 

Make sure all the exterior lights work and timers are set right.

 

One AAGLA member gave his tenants $25 rebate checks, calling it a Stimulus Package. You can do the same thing for new renters.

 

When tenants give notice to vacate, and you want to try to keep them, call them up and ask them why they are moving. If it's because amount of the rent, a small rent reduction of $25-$100 might make the difference.

 

Be advised, however, that in some rent-controlled cities if you reduce the rent for an existing tenant it may become a permanent reduction.

 

It's a small price to pay to keep or get a good tenant. And avoid the larger cost of having to rehab the unit and/or the potential huge cost for lost income.

 

In difficult times it pays to be both aggressive and creative. We'd love to hear your Stimulus Stories. Drop us a line at 213-382-3970 (fax) or online at aptlifeaagla@aol.com (attention Kevin Postema).

 

And please take the time to complete and return the Workers Compensation Questionnaire.

 

Thank you.

AAGLA Goes All In with CHPC (Chips)

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s you are aware, there are many local issues affecting housing providers. Here, we have effective local representation in the person of Jim Clarke, our local lobbyist. There are also many issues that affect housing providers at the state level. Steve Carlson effectively represents our interests there as our state lobbyist. We also have Lainy Parry and Rick Otterstrom, who serve on AAGLA's Board of Directors, representing us on the California Housing Providers Coalition.

CHPC consists of members from apartment associations across the state, from Orange County to Santa Barbara County. The Coalition provides the opportunity for different organizations throughout the state to communicate, share information, and formulate strategies for the rental housing industry.

It allows us to try and find common ground on state and other legislative issues. Working with CHPC, we can continue to advance the goals of housing providers.

 Another of our goals is to help AAGLA members save time and money. With insurance costs in‑creasing, we are developing a program to help provide our members with less expensive Workers Compensation insurance.

Please take the time to complete and return the Workers Comp Questionnaire and mail it in as soon as possible.

Thank you.

Calling all Volunteers

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hen I became President in January I said that I wanted you to enlist in the AAGLA Army. Thankfully, our organization already has an excellent, hard‑working and professional staff to assist our members. But the rest of us are all volunteers, from the President on down to the officers and directors. We volunteer our time to an organization we believe in and to help better our industry for all.

 

There are many ways that you, too, can help, and I am here seeking just that. If you can, you should join AAGLA’s email alert list. In this way, you can get rapid updates about important issues affecting our industry. To accomplish this, submit your email address to our staff so it can be added to our email list.

 

Also, there are many issues at the state and local government levels where you can help. We have two great lobbyists, Steve Carlson in Sacramento, and Jim Clarke locally, who work closely with legislators, supervisors and councilmembers on matters important to our industry, but we also need your help contacting elected officials who represent you so that your voice is also counted. Writing letters and making telephone calls when asked is one way you can help out.

 

You can also attend public meetings held by legislative bodies — like Board of Supervisors or City Council meetings, as well as the boards and commissions that are appointed by those bodies.

 

We also need people to volunteer to help at our meetings. Whether it is helping to set up, hand out information or greet attendees, your help is always welcome.

 

Each year we seek quality applicants for open positions on our Board of Directors, and I would encourage you to apply and serve. I also encourage members to serve on one of AAGLA's many committees as well.

 

And tell a friend. Encourage other apartment owners to join AAGLA. Tell them about the benefits of having a large organization looking out for their interests, about all the forms (free to members) that are available, the low-cost tenant screening, our informative publications, and all the other services you enjoy.

 

Also visit our website at http://www.aagla.org, where you can find forms and information online. You can also sign up for discounted online tenant screening. We have many other services available for you as well.

 

Thank you very much.

 

How to Keep Owners Solvent While
Keeping Renters in their Homes

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ne issue that AAGLA and the apartment industry need to address is how to deal with non-conforming, or bootleg, units in Los Angeles. Many of these units are occupied and have been for decades. This is a common problem that has been overlooked — until recently.

L.A. City building inspectors systematically identify properties with non-conforming units as part of the city's code enforcement and inspection process. And it's easy for them. They pull copies of building permits and certificates of occupancy and compare the number of units permitted to the number of units actually at properties.

If the permits and certificates state there should be 12 units, but the inspector finds 13 or 14, it sends up a red flag and the issuing of a notice to comply from the city to return the building to the original number of units permitted. The City of Los Angeles does not have a sensible policy or mechanism to allow these renters to stay in their homes.

Unfortunately, in order to comply with notices issued by the city, owners are forced to evict occupants and pay them huge relocation fees, and then restore the properties. Jim Clarke, AAGLA's Legislative Analyst, has been working long and hard with the City of Los Angeles to set more reasonable relocation fees.

But eviction and restoration create another whole rash of problems. For instance, say that a previous owner took a three-bedroom, two-bathroom unit and divided it up into a two-bedroom unit and a single unit. After you evict the tenant in one unit, your option is to restore the property so that you now have a three-bedroom unit, for which you may not be able to collect any additional rent from the existing tenant. He or she now benefits from the added space, or you must keep the newly vacated unit vacant until the other tenant moves — whenever that may occur. Neither of those options is attractive.

Los Angeles has a housing shortage, and forcing owners to evict long-term — or even short‑term — tenants out of their homes does not make sense.

Santa Monica has had a program to allow non-conforming, or bootleg, units to be inspected, brought up to code, confirmed safe, and then made permanently legal — without having to evict residents. The city has even gone so far as to waive parking requirements that would currently apply. That all makes good sense. Good for owners. Good for renters. We are working with the Los Angeles City Council to craft a similar program in Los Angeles.

In another vein, this all brings to mind some advice that will help you avoid this kind of problem. Buyers, and their brokers, should always undertake their due diligence to determine the legal number of units before buying a property. If the numbers don't add up, you have to decide to walk away, assume the risk, problems and cost of having non‑conforming units, or get a darn good deal on the property.

 

MEET THE PRESIDENT

 

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ncoming President Bill Dawson has been a member of AAGLA's Board of Directors for the past eight years. During that time, he has served as Vice President and Treasurer for the organization. "I am honored to serve as President of an organization that for over 91 years has worked diligently to improve, promote and protect the apartment industry," said Dawson.

Active on various AAGLA committees, including State Legislative, Finance and Legal Affairs, he also serves on the committee that organizes the monthly Santa Monica Meetings. Along with AAGLA Director Lainy Parry, Bill also moderates those meetings.

“I would like to commend the hard work of an excellent staff and our Executive Vice President, Charles Isham. Through their tireless and devoted efforts, and in conjunction with our superb Sacramento Lobbyist, Steve Carlson, and our Government Relations Manager, Jim Clarke, we enjoy positive relationships with many public officials and agencies."

Bill also sees challenges facing the industry. "Now, more than ever, with the economic troubles facing our industry, we will endeavor to improve these relationships and to open doors that have been previously closed to us. It is important that all principals have a seat at the table if we are to face and resolve the challenges ahead of us."

"We need to direct our organization's attention to the continued improvement in our technology platform for faster and more efficient communication with all our members."

"Another issue we need to address is non-conforming, or bootleg, units in Los Angeles. Many of these bootleg units are occupied and have been for decades, but the city does not have a policy or mechanism to allow these tenants to stay in their homes. City inspectors systematically identify and force owners to evict renters from perfectly good, clean, safe bootleg units."

"Then, the owners, many of whom didn't even know they had bootleg units, must pay them huge relocation fees. Eliminating housing units and forcing owners to evict long-term tenants out of their homes does not make sense. Santa Monica has a program to allow bootleg units to be inspected, brought up to code, confirmed safe, and be made permanently legal. It just makes sense. We must continue to work with our friends on the Los Angeles City Council to make a similar program in Los Angeles a reality."

"I also feel that we need to continue to work with all local rent control agencies (Beverly Hills, Santa Monica and West Hollywood) to assist them in determining fair formulas for annual rent increases. We need to inform and educate them about the increasing costs housing providers face, such as increased insurance, utility, labor, material and other costs."

Professionally, Bill is a real estate broker and a Vice President of the Sullivan-Dituri Company, a real estate brokerage and property management firm located in Santa Monica that is active in real estate sales and property management in Santa Monica and on the Westside. He received his Bachelor of Arts Degree in Real Estate and Finance from Cal State Northridge.

Bill resides in Santa Monica with his wife Patricia, and their four children, Ryan, Meagan, Kyle, and Brandon. His two youngest children attend St. Monica Elementary School in Santa Monica, while the two older children now attend St. Monica High School. Bill and Patricia are active members of the St. Monica Church parish community.

He also donates his time to serve the community, where he is a member of the Board of Directors of the Santa Monica Boys and Girls Club. For the past 17 years, Bill has served on the Santa Monica Boys and Girls Club Council, helping raise funds for the club, and as Council President in 2003, he helped to raise $170,000 for the club at its annual dinner auction.

Bill is also an active member of the Kiwanis Club of Santa Monica, serving on its Community and Youth Grants Committee. He is a director of the Santa Monica Area Chamber of Commerce, and is also a longtime Director of the Santa Monica Housing Council, which promotes housing in the City of Santa Monica.