We need you to keep an eye on your own community by reading the paper, attending your city council, city commission, or neighborhood council meetings. If you have political contacts such as city staff members or elected officials — please let us know. Communication is very important. Let us hear from you. You may contact me at 213-384-4131 or by e mail at jim@aagla.org.

Don't Forget About AAGLA's Monthly Saturday Morning Meetings

Attending AAGLA’s monthly member meetings — held on the second Saturday of most months (see the calendar for more info) — can be very helpful. The quality of our speakers and their political influence has increased over the past few years. It is important for us to communicate our positions on issues to these leaders. It is just as important to THEM to hear our suggestions and comments. Please participate by attending these meetings only two hours of your time each month is all we ask.

 

L.A. RSO Changes On the Way — Keep Those Cards and Letters Coming

Even though we have a recent victory by staving off a moratorium on rent increases, the fight isn't over. The Rent Stabilization Ordinance (RSO) will soon be changed. We hope favorably. We will be using the recommendations of the Economic Roundtable study released last year — and, just as important, our more timely ownership costs study by Beacon Economics.

Tenant advocates are lobbying hard for the removal of the 3% floor on annual allowable rent increases.

If this happens, it could mean going to a straight Consumer Price Index CPI) conversion. As it stands, if the CPI is below 3% the allowable rent increase is frozen at 3%. If the floor is removed, we might find ourselves with a 0% increase. Our study shows that CPI is not a fair Indicator. It does not account for expenses unique to L.A., such as water and sewer fees and insurance premiums, which have increased far more drastically each year.

What's even scarier is the fact that recently the tenant advocates have pitched something not even recommended in the Roundtable study — the expansion of rent control to buildings built prior to 1995! This means that every owner who owns a building built before 1995 is in this sorry mess. We need non-RSO owners' help NOW more than ever, and you need ours.

You need to call and write your City Councilmember asking that they not remove the 3% floor and oppose any expansion of rent control. You may access any of them at www.lacity.org. 

SOUTHLAND NEWS 

Los Angeles 

Due to our above victory, the new annual allowable increase in L. A. is 3% — which started on July 1, 2010. This is, of course, only if this depressed market allows you an increase.

Glendale

Be sure to check out the new smoking regulations for apartments. Call us or visit the city website at www.ci.glendale.ca.us. These have been phased in over a three-year period. While owners cannot be held liable for any violations by tenants, a few of the new regulations such as "disclosing to a new tenant if they are moving in next to a smoker" and "posting a diagram of which units are smoking units" are a bit onerous. AAGLA attorneys are working on forms that will better ensure owner rights and protection.

 

West Hollywood

 

The new annual allowable increase on rents in WEHO will be 1.25%, beginning on September 1, 2010. This is much better than the 0% of this past year. Also, in AAGLA's battle to stop an increase on sewer fees for all property owners here, we were able to get the increase phased in slowly, over three years, instead of having to absorb it all at once. Thank you to our members who called and sent e-mails to the City Clerk protesting this increase.

 

Santa Monica

 

The new annual allowable increase on rents in Santa Monica will be 2% beginning September 1, 2010. It's also much better than last year's 1%.

Members Turn Out in Force to Sway L.A. City Council

0n Friday, May 21, 2010, the Apartment Association of Greater Los Angeles thwarted an attempt by some L. A. City Councilmembers to freeze rents for one full year. AAGLA President Earle Vaughan, several other AAGLA Board Members, and I led the way.

The ultimate 9-6 vote by the council sent the motion for the rent freeze back to the Housing Committee, effectively stopping it dead in its tracks. AAGLA members are now free to raise rents by up to 3% on July 1, 2010, if they can. And, of course, in this economy that's a big "if," depending upon whether tenants are below market.

On that same note, I want to make certain our members know what an important role you played. While we did have an excellent coalition of business organizations working on this issue, it was TRULY AAGLA and its members who led the way. Others may claim THEY did; but, only we have the cards to show from the winning hand.

1. At the time this article was written, ONLY AAGLA contributed money to pay for the economic study that helped refute the argument for a rent freeze. (Thank you for your contributions.)

2. It was AAGLA, with our NAA partner, that sent out 92,000 pieces of mail to our members and others to mobilize them against the proposed rent freeze.

3. It was AAGLA that sent out weekly Calls for Action that generated hundreds of e-mails, faxes and phone calls to L.A. City Councilmembers asking them to vote "NO" on the proposed moratorium on rent increases. 4. It was AAGLA staff, Directors and activist members who held over 25 face-to-face meetings with Councilmembers at City Hall and at community functions in their districts.

5. ONLY AAGLA bussed in large groups of members to those two very important council meetings that eventually ended in the demise of a rent freeze.

This was one of the biggest victories for AAGLA in recent history. It will certainly pay dividends to AAGLA members in potentially-lost revenues, worth well more than what you pay for your annual dues. It pays to be a member of AAGLA!

Save the 3% Floor for Future Annual Allowable Increases

Even though we won one, the fight isn't over. One of our biggest tasks this year is to help create legislation to modify the Rent Stabilization Ordinance (RSO) in a favorable manner using the recommendations of the Economic Roundtable study released last year and the data from our actual landlord costs stutfy.

Don't Forget About AAGLA’s Monthly Meetings

Attending AAGL/Vs monthly member meetings (see the calendar on page 22) can be very informative. The quality of our speakers has increased over the past few years. Not only is it important for us to communicate our positions on issues to these leaders; it is just as important for THEM to hear our suggestions and comments. Please participate by attending these meetings.

SPECIAL EVENT COMING UP: Saturday, July 10, 10:00am, 3rd Annual State Legislator Breakfast Reception, AAGLA Main Office, 2 Floor.

Email

Update your e mail address. If it has changed within the last two years, please send the new address to aagla@aol.com.

AAGLA Helps Stave off Year-Long Rent Freeze — Fight Not Over

With residential rental property owners facing a possible year long freeze on rents, the Los Angeles City Council passed a motion by a margin of 8-6 asking the City Attorney to draft an ordinance for a 4-month rent increase moratorium with two possible 1-month extensions on rent increases for all L.A. City Rent-Stabilized apartments, except for owners who rent five units or less.

The fight began when Councilmember Richard Alarcon submitted a motion for an "emergency" ordinance late last month to suspend rent increases on all units subject to the Rent Stabilization Ordinance (RSO). The motion was seconded by Councilmembers José Huizar and Bill Rosendahl. It passed out of committee on a 3-1 vote with Councilmember Jan Perry being the only dissenting vote. Tony Cardenas was absent.

AAGLA worked with our business partners, such as the Chamber of Commerce and the Central City Association, to get members to send letters, e mails and faxes to the City Council and to attend the May 7 meeting. We had more people at council that day than we have had in years. The council chamber was so full that the fire department ordered the doors closed to any more spectators. It was truly inspiring and I thank all of you who attended.

During the session, Councilmember Janice Hahn made the amendment to reduce the time frame to four months and suggested that owners receive some financial breaks from the city, such as suspending inspection tees. While this is a nice gesture, even watered down we must vehemently oppose ANY moratorium on rent increases. In the end, we were supported with "no" votes by Councilmembers Paul Koretz, Tom LaBonge, Bernard Parks, Jan Perry, Greig Smith and Dennis Zine.

The ordinance in its amended form was to be presented at the Friday, May 21, City Council meeting. If you don't hear about it before then, you can read all about it in your July edition of Apartment Age.

AAGLA's First Annual City Hall Day a Success

On Thursday, April 22, over 45 devoted AAGLA members took our rented bus or drove to city hall for our First Annual City Hall Day in L. A. The group was adorned with AAGLA I t-shirts and "City Hall Day in L.A." buttons. During the 3-hour event, the group met with more than 10 officeholders or staff members from the City Council, City Controller's Office and L. A. Housing Department. Notable guests included Councilmembers Parks, Perry, Koretz, and Zine. City Controller Wendy Greuel joined us as well.

The highlight of the morning came when the group swarmed Councilmember Alarcon's office to protest his motion to freeze rent increases. It was truly spontaneous and, at the same time, productive as the group was able to discuss the issue for a half hour with Alarcon's Chief of Staff.

Still NOT a Member of AAGLA?! — Last Chance for a 50% Discount

If you are not currently a member of AAGLA, take advantage of our current membership special. This is the last month this discount is available, one year for 50% off the regular base price!! This deal is only good until June 30 and you must have not held membership since October of 2009. Please support those who support YOU. An application is available in this issue. Send it in today.

Saving the 3% Floor for Annual Allowable L.A. Rent Increases

If the 3% floor is eliminated in L.A., it means going to a straight Consumer Price Index (CPI) conversion. Currently, at this writing, if the CPI is below 3% the allowable rent increase is frozen at 3% —no lower. If the floor is removed, we might find ourselves with a 0% increase, which, as you know, has already been proposed by Alacron.

We all know that CPI is not a fair indicator of our costs as it does not account for expenses unique to L.A., such as high water and sewer fees and insurance premiums, which have increased far more drastically each year. We need to continue calling and writing our City Councilmembers asking that they not remove the 3% floor. Access them at www.lacity.org.

DWP Unplugged Again … For Now

As you might recall, AAGLA was successful in suing the Department of Water and Power (DWP) last year for overcharging for water to the tune of $30 million. Always quick to rear its ugly head, the DWP, with support from the Mayor, was trying to jam a 22% percent electricity rate increase down the throats of residents and businesses alike. This was just the beginning. The total increase for electricity would have amounted to 37% over the next couple of years.

This is outrageous. We joined with our business allies, the Central City Association, L.A. Area Chamber and Valley Industry and Commerce Association, to form an intense lobbying coalition. I personally testified at two hearings of the Environment and Energy Committee and a City Council meeting where the debate raged.

We were able to help convince the council that the requested rate increase is detrimental to businesses, homeowners, and tenants. In the end, the council signed off on a 5.7% rate increase so that the DWP's current bond rating would be maintained.

This is most likely the first of many rounds we will have to fight on this issue. The Mayor's "Green Initiative" and plan to convert L.A. to renewable forms of energy and wean it off coal will be very costly. Unless they find another way to fund it, the Mayor's people will continue to go to the DWP. Stay on the line. We'll have more later.

Still NOT an AAGLA Member?

Take a good look at Earle Vaughan's column of this month's magazine. It just goes to show you how hard AAGLA is working for the rental housing industry. We protect and enhance your business because your bottom line is our business.

If you are not currently a member, take advantage of AAGLA's current membership special. One year for 50% off the regular base price. This deal is only good until June 30 and you must have not held membership since October of 2009. Please support those who support YOU. There is an application in this issue (see the Table of Contents). Send it in today!

Save the 3% Floor Annual Rent Increases in LA.

We need to begin calling and writing our City Councilmembers asking that they not remove the annual 3% floor on rent increases in L.A. You may access any of them at www.lacity.org.

Don't Forget About AAGLA's Meetings

Attending AAGLAs monthly member meetings (see the calendar on page 22) is very informative. The quality of our speakers has increased dramatically over the past few years. Not only is it important for us to communicate our positions on issues to our elected leaders; it is just as important for them to hear our suggestions and comments. Please participate by attending these meetings.

As a result of our recent affiliation with NAA (the National Apt. Assn.) we now also have impressive new product and service providers sponsoring and attending the meetings. Comedown and ask them the tough questions.

Save the Annual Increases — Don't Settle for Less

Would you settle for a 0% allowable rent increase in Los Angeles?? It could happen! It's already happening in West Hollywood, and, of course, it's unacceptable.

One of our biggest tasks this year is to help create legislation that favorably modifies the L.A. Rent Stabilization Ordinance (RSO) using the recommendations of the Economic Roundtable (a firm hired by the city) Study that was released last year. We also hope to help our Santa Monica and West Hollywood members with this effort.

The tenant advocates are glomming on to one of the few adverse recommendations to come out of the L.A. study — the removal of the 3% floor on annual allowable rent increases.

If this happens, it means going to straight Consumer Price Index (CPI) rent increases. Currently in L.A., if the CPI is below 3% the allowable rent increase is frozen at 3% — no lower. If the floor is removed, we might find ourselves with a 0% increase at some time in the future.

We all know that CPI is not a fair indicator of our cost increases as it does not account for expenses unique to the apartment industry, such as water and sewer fees, and insurance premiums... which have skyrocketed far more drastically each year.

We've got to stop the renter "advocates" in their tracks. To do so, we are hiring an outside economist to prove our point — that the data and analysis provided by the Economic Roundtable is flawed in that way and now is also out of date.v These folks don't come cheap, so we're asking for your financial help. Will you be willing to spend at least $50 to help save the 3% floor on annual allowable rent increases in L.A. and try to get better increases for our Santa Monica (currently at 1.7%) and West Hollywood members? I hope so. Please send your contribution — whatever the amount. It is imperative we raise this money as soon as possible.

AAGLA members recently received a fundraising request for this project. If you have not yet responded to it, please do so now. If you are not an AAGLA member, please support this effort today.

Send your contribution to AAGLA-Study, 621 5. Westmoreland Ave., Los Angeles, CA 90005. Note: Because CPI last year was .6%, on July 1, the July 1, 2010 July 1, 2011 annual allowable rent increase will be changed to 3% Without the 3% floor, it would have been 1%!

LACHPP Rent Relief for Owners and Renters — The Fight Continues to Protect RSO 3% Floor

First, I'd like to make a clarification to my January article. When describing the new requirement to post signs stating that a building located in the City of Los Angeles is subject to rent control, I described this rule as a "formality." My intention was to infer that posting a sign in your resident marquis, mailbox area, or management office is a "simple" task. Posting the signs is a requirement.

As my friends at the L.A. Housing Dept. (LAHD) Code Enforcement Division reminded me — they will be checking for these signs during Systematic Code Enforcement Program (SCEP) inspections. You may buy weatherproof signs with the required language from AAGLA over the phone or at any of our satellite offices.

RENT RELIEF

During these unforgiving economic times, many of us have had to give rent reductions and free month's rent specials to keep good tenants or get new ones. It has been harsh.

Recently, AAGLA created a partnership with the Los Angeles Homeless Services Authority, the Inner City Law Center and the Legal Aid Foundation of Los Angeles to promote the use of grant money for rent relief for tenants who have temporary setbacks during the economic slide.

If one of your tenants comes to you with a "temporary" hardship, you may be able to get rent money through this program. Here are the details.

WHAT IS THE LACHPP?

The Los Angeles City Homeless Prevention Program

(LACHPP) is an eviction prevention program that will identify and help eligible individuals and families who are renters facing eviction, and provide them with legal services, supportive services and/or other assistance to help them preserve their tenancies and prevent homelessness.

WHO IS ELIGIBLE TO PARTICIPANT IN LACHPP?

1. Individual is a tenant and not a homeowner.
2. Tenant lives within the City of Los Angeles and is a legally documented resident.
3. Tenant must be at risk of homelessness (received a written 3 Day Notice or Unlawful Detainer).
4. Tenant lacks the financial resources and support networks needed to obtain immediate housing or remain in existing housing.
5. No subsequent housing options for the household have been identified.
6. Tenants who, within six months, will have sufficient income to pay for their own housing.
7. Tenant(s) total current income must not exceed the amounts in Table I.
LACHPP PRIORITIES

The following tenants are given priority: a) living in permanent supportive housing; b) living in other affordable, rent restricted subsidized housing (Section 8, public housing, affordable housing,

trust fund housing); c) living in a rent stabilized apartment; d) living on a fixed income, such as 551, SSDI, GR or CaIWORKs; e) tenants with disabilities or aged 62 years or older; and f) homeless in the previous 24 months.

MORE INFORMATION?

Call the Legal Aid Foundation of Los Angeles at 800-399-4LAW. For Downtown and Eastside tenants, call Inner City Law Center at 213-891-2880. Also, you can walk into Inner City Law Center's (ICLC) main office at 1309 E. 7th Street, Los Angeles, CA 90021, or the Weingart Access Center at 506 S. Main St., Los Angeles, CA 90021, and speak to an ICLC representative.

In the San Fernando Valley, you can walk in at Van Nuys Self Help Legal Access Center, 6230 Sylmar Avenue, 3rd Floor, Room 350, Van Nuys, CA 91401 (hours of operation: 1:30 to 4:30 p.m. M Th).

PROTECTING THE 3% FLOOR

One of our biggest tasks this year is to help create legislation that modifies the Rent Stabilization Ordinance (RSO) favorably using the recommendations of the

Economic Roundtable study released last year. Tenant advocates are glomming on to one of the few adverse recommendations to come out of the study the removal of the 3% floor on annual allowable rent increases.

If this happens, it means going to a straight Consumer Price Index (CPI) conversion. Under the current law, even if the CPI is below 3% the allowable rent increase is frozen at 3% — not lower. Removing the floor might yield a 0% increase in any given year.

We all know that CPI is not a fair indicator for rental housing as it does not account for expenses unique to L.A., such as water and sewer fees and insurance premiums, which have increased far more dramatically each year. We need to call, write and email our City Councilmembers asking that they not remove the 3% floor.

You may access any of them at www.lacity.org.

Krekorian Wins — Renter Advocates Attack 3% Floor in L.A.

Happy New Year to all. We ended 2009 with a great victory on December 8 when Assemblymember Paul Krekorian won the 2 District seat on the Los Angeles City Council that was recently vacated. AAGLA supported Krekorian from the beginning. Our friends at the Beverly Hills/Greater Los Angeles Association of Realtors were behind him as well.

However, many of our other allies, including CAA L.A., supported Krekorian's labor backed opponent. This made our victory even sweeter as we are proving to be quite good political handicappers. Krekorian has been a great friend to us while he has served in the California State Assembly. Our state lobbyist, Steve Carlson, has always spoken highly of him. Now, I look forward to working with him at city hall. I'd like to thank all of our members who donate to AAGLA PAC, those who came to our fundraiser for Paul, and those who responded to our post cards that were mailed to the district.

Your contributions and votes now have netted us one more friend at City Hall. Congratulations to Paul Krekorian and welcome to the crazy world of L.A. politics!

Rent Increase Formula Under Attack

One of our biggest tasks this year is to help create legislation to modify the Rent Stabilization Ordinance (RSO) favorably using the recommendations of the Economic Roundtable Study released last year. Tenant advocates are glomming on to one of the few adverse recommendations to come out of the study — the removal of the 3% floor on annual allowable rent increases. This means going to a straight Consumer Price Index (CPI) increase.

Now, if the CPI is below 3%, the allowable rent increase is frozen at 3% — not lower. Removing the floor might yield a 0% increase one year.

We all know that CPI is not a fair indicator as it does not account for expenses unique to L.A., such as water and sewer, which increase far more drastically than CPI each year.

We need to begin calling and writing our City Councilmembers asking them not to remove the 3% floor. You may access any of them at www.lacity.org.

Notice Requirement for L.A. Rent-Controlled Rentals

Finally, a change in the RSO that occurred when we got tenant relocation fees lowered is that you must now post a notice (see page 10) in your buildings (those subject to the RSO only) that informs tenants that their rented units are, in fact, subject to rent control.

We understand that this is a formality and that tenants are already informed when you provide a copy of your RSO registration certificate with annual rent increases; however, it was small price to pay when we negotiated the lower relocation fees. We will also be selling the form in a hard weather-proof sign version as well. Visit your local AAGLA office or call us to order these new signs.

What Has AAGLA Done for You Lately? — The Year in Review

It's been a busy, busy year! We've brought our members a Worker's Compensation Insurance plan than can't be beat, affiliated with the National Apartment Association, and enjoyed many legislative successes.

Highlights

After a year-long battle, we were able to get some relief from the drastically-increased tenant relocation fees for "good-faith" relocations. In the final legislation signed by the Mayor, the fees were cut in half for owners renting four or fewer units. Although we would have liked to have seen a decrease in fees for every owner, this was still a major victory in the fact that it modified a very new ordinance and provided relief to some. Your voice through AAGLA — was heard at L.A. City Hall.

In our fight against nuisance tenants, a bane on their neighbors as well as owners, we also made major strides. The L.A. City Council is set to vote on a recommendation from the Housing Committee that the requirement to disclose the names of witnesses in the cases of illegal gang and drug activity for nuisance evictions be removed from the ordinance. This will be a huge victory and step toward improving the quality of life for good law-abiding tenants.

AAGLA also won a lawsuit against the L.A. Department of Water and Power (DWP) for overcharges. For years, the DWP has transferred profits into the city general fund. That violates a Proposition 218 provision that money charged for a service must be used to provide that particular service. The court ordered the DWP to halt their attempt to move the funds. The only alternatives for DWP are to return the money to rate payers, decrease rates, or use it for capital improvements. We advocate using the money for a fund to subsidize owners for sub-metering their buildings for water usage, which will motivate renters to save water.

In another DWP victory this year, AAGLA was able to have the department's water conservation plan altered to protect owners from penalties caused by the water over-use of their tenants.

Higher rates were going to affect each individual building that did not reduce water consumption by 15%. That's tough to do when you have no control over consumption. The council understood the logic of our presentations and apartment owners were put into a commercial category that only requires a 2% reduction in water usage. This move potentially saves apartment owners millions of dollars over the duration of this plan.

This year also saw the release of the $1million study of the Rent Stabilization Ordinance (RSO). Now, we are involved in panel discussions and meetings to create a package of new positive changes to the RSO.

We are advocating a better Capital Improvement Program, easier evictions for nuisance to, banking of unused rent increase percentage points, and changes to the Systematic Code Enforcement Program (SCEP) that will make tenants liable for violations they cause.

This has been and is the best opportunity for AAGLA to create positive change in over 30 years.

There were plenty more legislative victories for your association, but I'll save that for article fodder in next year's issues. In the meantime, I want thank all of AAGLA's members and directors who generously contributed to AAGL.A and AAGLA PAC this year. Our Political Action Committee gets stronger and stronger every year. We have more influence in Southern California and throughout the state because of it. For example, AAGLA-supported political candidates were victorious in 10 of 11 races this year. Every year it gets better. Thanks again, and we'll see you next year. Happy Holidays.

RSO Study — Here's How WE Stand

T he Economic Roundtable, which conducted the RSO study, has released its recommendations. Here is AAGLA5 response.

We concur with the Economic Roundtable's recommendation to provide training courses for resident managers and cited owners, and on building maintenance and fair housing. AAGLA also agrees with them that at-fault (disruptive, destructive or non paying) renters should be evicted. Naming witnesses on "3-day notices to perform or quit," however, makes this procedure almost impossible. This requirement should be removed from the RSO.

We applaud the fact that the RSO study findings show what we have known all along. A 50% capital improvement pass through is not enough. The Capital Improvement Passthrough Program passthrough level should be increased to 100% across the board and amortization should depend on the scope and expense of a project. Also, due to its complexity and the fact that it has been virtually unused, the city's Primary Renovation Program should be scrapped.

We support the theory of rent "banking." The current system creates a use-it-or-lose-it situation for owners. Our economic crisis represents a climate where renters would benefit from rent banking. Allowing owners to forego rent increases for, say, up to three years and implement them, or part of them, later makes sense.

Rent banking benefits renters and owners as it allows for flexibility during hard economic times.

In another vein, the current complaint-based system for disputed rent increases is working well. Very few owners knowingly violate rent adjustment laws, making the need for a proposed Rent Registry unnecessary.

We adamantly oppose the elimination of the 3% annual minimum rent increase. Owners with long term tenants who have historically-low rents are particularly hard hit.

When it comes to inspections, we fully concur with the Economic Roundtable's recommendation that renters be held accountable for code violations that they cause. It seems as if the LAHD only cites owners with Notices to Comply.

The LAHD Code Enforcement Division should create two pre inspection lists one for owners and one for tenants. Renter items should include disabled smoke detectors, missing or damaged windows or screens, lack of household maintenance, mold caused by failure to open bathroom windows, holes in interior walls, and broken counters and sinks, among other things. This helps both parties know what they are expected to do. More knowledge in advance will help improve communication and compliance before inspections.

Also, we strongly recommend that the LAHD Code Enforcement Division be required to provide owners with documents declaring final compliance after inspections (currently, must be formally requested).

Finally, we urge the elimination of Outreach Groups in the Rent Escrow Account Program (REAP). They are empowered to keep properties in REAP, thus keeping rents discounted. These people are not trained inspectors and they abuse the system.

We accept the fact that the CPI is the best method to determine rent increases when an apartment unit is subject to rent control and not to supply and demand market forces. We again stress the need to keep a 3% minimum rental rate increase. CPI is fairly representative of increases in costs for consumer products, but not for cost increases for apartment insurance and utilities.

While owners of master metered buildings get 1% rental increases each for gas and electricity that they supply, the city has no fair and equitable method to pass through the dramatic cost increases of city water and sewer services. These increased costs are hard on owners. Unlike gas and electricity, very few rent controlled buildings are sub metered for water usage.

Finally, the Just and Reasonable Increase application process must not only be better promoted to owners, it must be streamlined to make the data collection process easier and less bureaucratic.

Call your councilmember today. Let them know that you support our positions and ask for their support.

LAHD Spins RSO Study

A s you may recall from my article last month, the study of the Rent Stabilization Ordinance (RSO) was released and contained some pretty exciting recommendations. I wrote that the most exciting recommendations from Economic Roundtable, the firm chosen to conduct the study, would affect the Capital Improvement Pass-through Program (CIPP), the Systematic Code Enforcement Program (SCEP), and the annual allowable rent increase.

Since then, I have been to the first of many scheduled hearings regarding the findings of the study. At this particular hearing, the Los Angeles Housing Department (LAHD) unveiled its interpretation of — and recommendations for — the study. While they did concur with many good recommendations, as you can imagine, it's not all positive.

The LAHD did agree that the level of pass-throughs for CIPP capital improvements should be raised. They were fine with raising the recovery amount to 75–100% depending on the project. However, they were not in favor of giving "Mom and Pops" automatic 100% pass-throughs. The size of the building should not be taken into consideration, only the scope of work of the project.

The LAHD also was not in favor of allowing inspectors to cite tenants for violations inside their units as recommended in the study. They believe that the owner is responsible for everything. They noted that there is already a process that enables owners to hold tenants accountable for violations they cause. Maybe. But, if an owner or manager has NO access to the premises to see what's wrong, how can a three-day notice to perform covenant be issued?

Finally, the study recommends something that we have long lobbied for. It's one of AAGLA's priorities — "banking" rent increases. This change would allow owners to delay the use of annual allowable increases in situations like the current economic crisis and "bank" them for later use. Raises could be partially used and the balances "banked." Banked increases could not exceed 10%. The LAHD says this recommendation is bad because rents would be too difficult to track.

Last month, we were set to meet with the Housing, Community and Economic Development (HCED) Committee staff in order to lobby for the productive elements we recognize in the RSO study. The full HCED Committee will be holding hearings this month to draft final recommendations to send to the City Council. We'll be there.

After all, I wouldn't want to see $1–million wasted. I hope the city feels the same way. Stay tuned for more on this issue.

AAGLA Affiliates with NAA

Here is some great news for AAGLA members. As of September 17, the Apartment Association of Greater Los Angeles is now a Charter Affiliate of the National Apartment Association. What does that mean to you? Come find out at this month's Saturday Morning Member Meeting on October 10 at 10 a.m. Representatives from NAA will be here to discuss what new benefits our relationship will provide for AAGLA members.

$1-Million L.A. Rent Study Finally Released

A fter three years of securing the funding, selecting an outside firm, drafting a questionnaire, gathering the data, compiling the results, and creating the recommendations for changes to the housing policy of the City of Los Angeles, the study of the L.A. City Rent Control Ordinance (RSO) is finally finished. As we expected, the outcome is mostly favorable to rental property owners.

The most exciting recommendations from Economic Roundtable, the firm chosen to conduct the study, are on the Capital Improvement Pass-through Program (CIPP), the Systematic Code Enforcement Program (SCEP), and annual allowable rent increases.

CIPP

Currently, the CIPP only allows an owner to collect 60% of the cost of the improvement with a temporary rent increase over a five-year period, and with the increase not to exceed $55.

The study recommends that the CIPP be changed to allow owners to recoup 75% of their costs in most cases and 100% in some, such as major structural, plumbing, electrical or mechanical projects that can be done while tenants occupy their units. However, the study also recommends that the time period for the rent increase be extended to 10 years in order to keep rent increases low. Because the CIPP is a simple program to follow, I would be willing to make that trade-off.

More importantly, the report also advocates that ALL capital improvement projects completed by "Mom and Pop" owners — those with fewer than five rental units — be eligible for the 100% reimbursement.

And, lastly in this category, it was also recommended that the burdensome tenant habitability requirement in the Primary Renovation Program (PRP) be simplified and streamlined. This is what has kept owners from using this current program. The PRP allows 100% pass through over 15 years. The increase is permanent.

Inspections

In a huge victory for owners, Economic Roundtable recommends that the city code enforcement division and its inspectors cite tenants during SCEP inspections. "Tenants should be held accountable for code violations that they cause," the report reads. If this recommendation is embraced by the Los Angeles Housing Department, it would mean a very big shift in their culture and a sense of fairness in the program.

Rent Increase Banking

Finally, the study recommends something that we have lobbied for as one of AAGLA's priorities — the "banking" of rent increases. If implemented, this change would allow owners to delay the implementation of annual allowable increases in cases such as the current economic crisis and "bank" them for later use. The percentage could be partially used and the balance "banked." Banked increases could not be in excess of 10%.

This study is not, however, totally rosy. There are some concerns with a couple of recommendations, nothing horribly alarming, though. I just hope that the Housing Committee and the City Council don't sweep this study under the rug as they did in 1994 — the last time the RSO was reviewed.

We intend to make certain that does not happen. We will press some of these recommendations and fight for legislative change. I wouldn't want to see a million dollars wasted. I hope the city feels the same way.

I Accept the Challenge

I am humbled by the AAGLA Board of Directors hiring me as your new Executive Director. I am pleased and excited to accept the challenge. My tenure began "officially" after the May board meeting; however, I was on my own, without a mentor, on August 1.

I'd like to thank said mentor — Charles Isham — for hiring me four and a half years ago. At that time, after becoming frustrated with what he still calls my "Kabuki Dance," he told me "Kiddo!, you could run this association some day" to get me to agree to his employment offer. I just had no idea it would be so soon.

I've learned a lot from Charles. I'll use that knowledge and my own creativity to grow this association so that we better serve our members and gain more respect from the communities in which we do business. So, I also thank him for his tutelage. With even the simplest anecdote from Charles you learn something. Thanks Charles. I hope you stop by often.

I would also like to thank the AAGLA Human Resources Committee, Irma Vargas, Bill Dawson, Bill Shaw, Larry Cannizzaro, John Schulhof, Jerry Scritsmier, and Earle Wasserman, for having confidence in me and guiding me through this seven-month transition. A special thanks also goes to the staff, my colleagues (there are to many to name individually) at AAGLA, who have been so supportive.

I am excited about this opportunity because there is so much out there to reign in as benefits to our members. For example, we just completed a deal that will bring low-cost Workers Compensation Insurance to all members. Even the smallest rental property owner can be covered for as low as $500 per year. Read more about this new program.

We are also looking into a direct affiliation with the National Apartment Association. This could bring our members many new benefits, such as discounts at some retail outlets and more. Stay tuned for information on these developing programs.

AAGLA Legislative Breakfast a Success

In other news, as you may know, AAGLA just held its Second Annual Legislative Breakfast as pictured here and on the cover. It was a huge success. Congratulations to all involved with that.

I have served you as AAGLA’s Manager of Government Relations and I will continue to represent you as your Chief Local Lobbyist and front man in the community as it is my passion. My point is that our hard work over the last four and a half years has paid off politically and we are beginning to see that we can make a difference.

For instance, Paul Koretz, an AAGLA member, was just elected to the Los Angeles City Council. Carmen Trutanich, a very fair-minded litigator, was elected to serve as L.A.'s new City Attorney. And Wendy Greuel, who also has a great relationship with AAGLA, was elected as the City Controller. All of these officeholders were supported by your AAGLA PAC contributions and direct campaign donations. We were very successful.

These times also are exciting for me because we will see a new day at the Los Angeles Housing Department (LAHD). The LAHD has a new General Manager! From what I hear, he is very rational and fair. I look forward to meeting him.

With a great AAGLA staff, new friends in office and a positive change at the LAHD, what more could I ask for (other than a robust economy). I am truly excited about what we can achieve in the coming months. Stay tuned...

New Proposal Could Give AAGLA Members Relief from REAP

W e are overjoyed that there is movement on one of AAGLA’s key issues overhauling the Rent Escrow Account Program. It is better known as REAP to those who know how burdensome and counterproductive this program is.

Under REAP, an owner who does not comply with an order by the Code Enforcement Division of the Los Angeles Housing Department (LAHD) in the allowed time can be subject to a General Manager's Hearing.

At that "courtroom-like" meeting, an LAHD employee (dressed in intimidating judicial robes) can either grant a continuance (this rarely occurs) or subject the property and owner to the REAP program. This includes mandated rent reductions for tenants, and the opportunity for them to pay their rents to the city. It then holds the rents in escrow until the property is repaired and complies with the LAHD order.

The city takes your rent money and expects you to bring the property into compliance at the same time. In most cases, owners who find themselves in REAP don't have the financial resources to make repairs or comply with other mandates that are part of the LAHD notice in a timely enough fashion. Recognizing how counterproductive this is, two members of the Los Angeles City Council have stepped up to the plate to help.

A motion by Councilmembers Herb Wesson and Ed Reyes passed in the Housing, Community and Economic Development Committee in early June. It directs the LAHD to work with AAGLA to create a program that helps "Mom-and-Pop" owners who can prove financial hardship. Obviously, our goal is to lessen the burden on any owners who find themselves in REAR For example, we are still working to secure financial assistance and expand the program to others — not just "Mom-and-Pop" rental housing providers, the definition of whom is very limited.

This motion in itself is a great victory for our industry and I want to applaud Wesson and Reyes for recognizing that REAP is forcing many owners into bankruptcy and foreclosure, resulting in lost affordable housing units for all. During this economic slump, that hurts everybody.

Stay tuned.

Water Win and Relocation Fees

W e were absolutely swamped in April and May with all the action at LA. City Hall. Here are some of the highlights.

Water Win

As I wrote last month, the L.A. City Council rejected the original water conservation proposal by the Department of Water and Power (DWP) due, in part, to AAGLA's arguments that it would be unfair to multifamily rental property owners who have master-metered buildings, and because the plan would not work as most renters don't pay for their own water.

After reviewing the proposal and making adjustments, the DWP returned to the City Council with an updated plan.

Multi-family buildings will now be required to reduce consumption by 2.5% instead of the 15% that is required for other residential properties. The water allocation levels assigned to those buildings, when compared to their current consumption levels, show that 87% of the master-metered apartment buildings would already fall into compliance with the required reduction. In other words, they would see no change or penalty charges.

At the same time the council adopted the amended proposal, it instructed the DWP to explore a pass-through proposal with the LA. Housing Department so that water-wasting renters would feel the sting of penalties charged to building owners for over-usage.

An educational program to curb any over indulgence by renters is to be created as well. I'd like to applaud the council for recognizing that our arguments are valid. Special thanks go to Councilmembers Dennis Zine, Greig Smith, and Bernard Parks for their efforts.

Relocation Fee Revisions

Our two year tenant relocation fees saga is about to come to an end. While we were successful in getting a reduction for smaller building owners, there was no fanfare during our victory celebration. Many owners will now pay on a reduced scale starting at $7,000 instead of $13,000, for eligible tenants, and $14,000 instead of $19,000, for qualified tenants (over 62, disabled or with minors). These fees apply only for owner, family and resident manager occupancy.

The changes passed through committee on May 6 and were scheduled to go to council during the week of May 11. We will make one final attempt to make the deal a little better, but don't hold your breath. The very sad thing is that the majority of the council understands the negative ramifications these fees will have on people who want to buy multifamily buildings in L.A. This program, originally developed to stave off the condo conversion craze of 2006 07, is now outdated and unnecessary. Stay tuned.

Update Your Email Address

If your e mail address has changed within the last two years, please send the new one to aagla@aol.com. You may contact me at 213-384-4131 or by e-mail at jim@aagla.org.

L.A. DWP Water Conservation Plan Isn't Fair and Won't Work

W e are in the midst of one of the worst droughts in recent memory. Local government — the Los Angeles Department of Water and Power (DWP) included has not come to grips with the problem, which is that there is NO INCENTIVE for almost two thirds of the city's population to conserve water because they DON'T PAY for it.

A plan for water conservation proposed by the DWP Commission was considered by the City Council on Wednesday, April 8. It would have levied fines on consumers who did not reduce their water consumption by 15%. Adjusted by the success consumers would have had conserving water, fines could have reached 44% surcharges on their water bills.

But what becomes of rental housing providers who have master-meters for water in their buildings? They truly have no control over how much water is consumed — yet, they receive the bills, and the fines.

Many rental property owners in the City of Los Angeles can't charge their tenants for water. The cost is not included in the rent either as many of the city's buildings are subject to rent control.

But how do we rectify the problem at the local level?

Encourage conservation?

Yes.

To truly appreciate the theory of conservation, one must also comprehend its nature. If something (water) is free and it's always available, what's the incentive to save or conserve?

The DWP proposal punishes apartment owners for not conserving water they don't use and have no control of. It's not fair and it won't work!

We can help solve our water shortage with one swift move. Make apartment renters pay for the water they use. As it stands today, about 63% of L.A.'s population does not pay for its own water. There would be a lot of shorter showers and far fewer flushes if renters had to pay for their own water.

Since the DWP will not submeter buildings, and it is too expensive for rental property owners who are subject to rent control to do it themselves, owners need the L.A. City Council to approve a Ratio Utility Billing System so that they may charge renters for the water they use. We hope members of the L.A. City Council will find this idea intriguing — for conservation sake.

In the meantime, on Wednesday, April 8, the L. A. City Council REJECTED the DWP's water conservation proposal partially because it was unfair to rental housing providers. Another AAGLA VICTORY! We hope the council will now direct the DWP to devise a plan that is fair and has a better chance to accomplish the goal conserve water.

AAGLA Wins Big in Local Elections

In the March 3 election races in which the Apartment Association of Greater Los Angeles (AAGLA) participated, all of the candidates we supported won outright or are in run-offs on Tuesday, May 19, 2009. This is a great 100% win rate for the association.

In Los Angeles, AAGLA supported Dennis P. Zine in the 3rd City Council District, Jan Perry in the 9th, Eric Garcetti in the 13th and Janice Hahn in the 15th We contributed AAGLA PAC money to each of them and held fundraisers for Zine and Garcetti that raised a few thousand dollars for each. They were very appreciative.

In citywide races, AAGLA supported Wendy Greuel for City Controller, who won with the most votes of any citywide candidate, including the Mayor. This was a big victory for her and very important for AAGLA as we have had conversations with her on auditing the Systematic Code Enforcement Program, a big problem for our members. We did a fundraiser very early in Councilmember Greuel's race for Controller, which brought in close to $3,500. Thank you to all who participated.

The most important race for AAGLA members was that for City Attorney. AAGLA supported former county prosecutor Carmen Trutanich financially and through several ads on talk radio. He finished in second place on March 3 with 27% of the vote and will be in a runoff election with City Councilmember Jack Weiss (35%). Trutanich has a great shot at winning and we will be doing all we can to help him get elected. Please join us.

The final issue of interest on the L.A. ballot was Measure B, the so called solar energy initiative. While we support renewable energy, AAGLA OPPOSED this scheme that cow-towed to certain local unions. The creation of "temporary" jobs on the backs of the taxpayer, and the fact that building owners who participated would not have the ability to "sell back" surplus energy, were some of the distasteful portions of this measure. At this writing, Measure B was losing by about 1,300 votes with some absentee ballots still being counted. Stay tuned...

In the City of Beverly Hills, where a City Council election was held for three seats, AAGLA-supported candidates won all three seats. Mayor Barry Brucker was re-elected, and Dr. William "Willie" Brien and John Mirisch were elected to their first terms. Their names appeared on a slate card sent to over 1,000 AAGLA members in Beverly Hills urging them to vote. Margins of victory being what they are in B. H. elections, we are certain that our mailing helped put a couple of these folks over the top and on the council.

AAGLA Fights to Rid Buildings of Drug Dealers

L ast month, I was down at L.A. City Hall testifying on behalf of a motion that Councilmember Bernard Parks resubmitted to the Housing, Community and Economic Development Committee (HCED) that attempts to ease eviction restrictions and streamline the process for cases where apartment owners are trying to remove known drug dealers from their properties.

The motion, originally presented in October 2006, specifically asks the City Attorney to prepare and present an ordinance amending the Rent Stabilization Ordinance (RSO) to keep witnesses in drug-related evictions confidential.

Currently, the RSO requires you to file a detailed declaration spelling out the circumstances of the eviction, including times, dates, locations, and names of witnesses to the illegal activity in question. Witnesses have proven essential to winning drug-related evictions; however, rational people are intimidated by the possibility of violent retaliation from gun-toting gang guys and gals. Something must be done to protect the identity of witnesses who are willing to testify against criminals involved in illegal drug activity.

I hope the City Attorney's office works hard and finds a way to make this proposal work. There are too many owners, managers and tenants living in danger and fear due to drug dealing that goes on right in their midst.

We need to be able to cleanse our buildings of illegal activities and those who perpetrate them. If the City Attorney and Housing Department are successful in coming up with a way to mask the identities of witnesses, we should seek to expand this practice in order to get rid of those who involved in criminal gang activity as well.

Dear HCED Committee: Rent Study?

After a year in the field and six months of analysis, there is still NO sign that the $1-million RSO study will be presented to the HCED Committee any time soon. This data is getting old and is way overdue. Is someone hiding something? No one really knows.

It will be an absolute shame, if not a crime, if the city wastes $1 million to have this study conducted and does not use the information to better the lives of those who own and live in apartments. Contact the HCED Chair, Councilmember Herb Wesson, at 213 473 7010 to voice your concern about the RSO Study that's gathering dust. We deserve to know!

L.A. City Attorney Drafting Revised Relocation Fee Ordinance

A t the time my last article was written, a proposal to reduce the fees for tenant relocations during "good faith" evictions was scheduled to be heard by the L.A. City Council on December 17. As you may recall, the proposal included reduced fees for owners who have four units or less (including ones they may live in). We were still trying to get that definition of "Mom and Pop" modified to a higher number of units as the fees for "Mom-and-Pop" operators would be cut in half.

At the meeting, the LAHD report on lower fees was approved and sent to the City Attorney to write the ordinance. It was approved with two changes. One we liked. One we did not. They offset as a compromise on the floor of the city council.

1) The lower fees will be in place for owners of four units or less occupied or not, meaning an owner can have a single family home AND four units. The units can be in any combination...meaning an owner can now have two duplexes and qualify. This was a good change to the LAHD definition of a "Mom-and-Pop" owner. We SUPPORTED it.

2) The proposed new fee for "qualified" tenants was raised to $14,000 from $10,900. We OPPOSED this change. The entire ordinance is due back in 30 days and will have to go back to committee.

To recap, if the ordinance is passed in its current form, relocation fees for owners of four rental units (not owner-occupied) or less will now get relief from the higher fees introduced back in April of 2007. The new fees will be as follows. For an "eligible" tenancy (single, married couple, roommates) the owner will pay $7,000 (down from $9,010), regardless of the number of occupants. For a "qualified" tenancy, (over 62 years of age, minor children, or disabled) the relocation fee will be $14,000, as opposed to the current $17,080.

4% Allowable Rent Increase in L.A. Starts on July 1, 2009

The Los Angeles Housing Department (LAHD) has announced the new schedule of fees for 2009. Most importantly, the annual allowable rent increase will rise to 4% from 3%, effective July 1, 2009.

The news gets better. There will be NO increase in the Rent Stabilization Ordinance Registration or Systematic Code Enforcement Program (SCEP) Fees. The registration fee will remain at $18.71 per unit, half of which can be passed on to tenants with a 30-day notice, in the month of June (and only in the month of June), separate from the normal rent.

The SCEP fee remains at $35.52 per unit. All of it can be passed through to your tenants with a $2.96 per month surcharge added to the regular rent. These two fees will be billed to you in January 2009 and are normally due by the end of February. You must have your proof of payment in order to collect the two aforementioned pass throughs.

Finally, the annual security deposit interest payment for 2009 will decrease to 1.76% down from 3.29%.

Unacceptable Compromise on Tenant Relocation Fees Proposed by LAHD

A s you may know, the Tenant Relocation Ordinance passed on April 11, 2007. It has created yet another local burden for rental property owners in the City of Los Angeles — hindering the way we do business and restricting us from using our own property unless we provide relocation fees to tenants that, in some cases, are enough for down payments on homes. This is borne out in a statistical report on relocations conducted in 2007, that shows a drop of 50%.

I have read the Los Angeles Housing Department (LAHD) proposal on the April 11 ordinance. I applaud the staff for recognizing that the fees for "good faith" relocations are way too high. That's the good news. There also are quite a number of concerns contained in their recommendations.

First, lower fees would ONLY apply to "Mom-and-Pop" apartment owners, and the LAHD defines a "Mom-and-Pop" operation as being one with four or fewer rental units. But "Mom-and-Pop" operators can own up to 15 or more units, if that's even relevant.

Second, resident manager relocations are completely ignored in the LAHD proposal. Forty three percent of AAGLA members are senior citizens who some day may have to rely on resident managers to help them do business. Resident managers also hinder crime and keep buildings safer. To think that resident managers or caretakers can't be useful in 12-14-unit buildings is naïve. Relocation fees for all "good faith" resident manager relocations MUST be addressed in the proposal.

Third, prohibiting owners who hold less than 50% shares of their buildings from using owner-occupancy relocations is unacceptable. There are many purchases made by groups of three or four investors. Many of them have families who want to live in their buildings. The LAHD recommendations deny these people housing unless they pay the new higher tenant relocation fees, which can exceed $17,000. That's a deal breaker according to my Realtor sources.

We all know that the intent of the Planning Commission hearings, and the genesis of the ordinance, was to find a way to curb the growing number of condominium conversions and rental housing demolitions occurring at the time.

All "good faith" evictions in all buildings should be included under the former lower fee structure, which maxed out at about $8,500. ONLY relocations in cases of condo conversion and demolition should be subject to the higher fees. That's the way it should have been and should be.

An Interview with L.A. City Council President Eric Garcetti

O n Saturday, June 14, L.A. City Council President Eric Garcetti was our featured speaker at AAGLA's monthly Main Office Member Meeting. Although he spoke and answered questions for close to an hour, we had several concerns that remained undiscussed. President Garcetti subsequently graciously agreed to answer several questions in an interview with me. Here it is.

Clarke: Water rates are increasing at three times the amount of rent control's annual allowable increase of 3%. Rental property owners, for the most part, cannot pass through the cost of water to tenants who use it. With the water crisis being as bad as it is here in L.A., what can we do about the fact that there is no incentive for users to conserve? Would you support some sort of utility pass through, extra percent increase in rent, like in the cases of gas and electric, or a ratio utility billing system for tenant users?

Garcetti: I supported a onetime pass through on water rates and would be open to looking at systems that adequately pass on costs in a manner that encourages conservation.

I would also encourage landlords to take advantage of DWP water-conservation incentives, such as the $250 rebate for high-efficiency washing machines. More information can be found at ladwp.com. I would be open to some way of incentivizing conservation by tenants and welcome further information and ideas that help us reduce our water demand and save money.

JC: The city needs more revenue, jobs, and to preserve affordable housing. A policy that was in effect for the first 10 years of the RSO — 100% Capital Improvement (Cl) passthroughs — could generate more than $20 million annually for the city, create thousands of jobs, and preserve the current housing stock. How can the Council and L.A. Housing Department not support reverting to a 100% Cl Program to replace the two current failures (50% Cl recovery and Primary Renovation)? What are your thoughts?

EG: In the city, we're working to find the right balance between allowing landlords to operate their businesses successfully and ensuring that renters have access to quality, affordable housing. The Primary Renovation program is still very new and we want to see the impact that it has on the stock of rent-stabilized units.

I would also like a report back from our city departments on what the successes and problems have been so we can improve the program.

JC: Will you please discuss your idea for an amnesty for non-conforming, granny-flat, types of units?

EG: To help us retain more housing in our neighborhoods, we are considering piloting an amnesty program to bring non-conforming housing units into compliance. We would like to have AAGLA's input on areas of the city that might be good places to pilot the program that would allow us to accurately analyze its impact.

JC: There are many high-income tenants (including millionaires) living under rent control in West Side and Valley apartments. Why should they benefit from a program that was meant to subsidize seniors and low-income families? What are your thoughts on some sort of means test for rent control?

EG: The city's Housing Department is currently conducting a study that will look into means testing for rent control. However, no other major city with rent control means tests its tenants, and such a program would be difficult to administer.

Our thanks to Council President Garcetti for taking the time to do this interview. We will continue to work with Eric and the rest of the City Council to improve housing in L.A.

Stand Your Gound — Owner-Occupied Duplexes Not Subject to L.A. SCEP

T he Apartment Association of Greater Los Angeles (AAGLA) has learned that an analysis by the L.A. City Attorney's office has concluded that owner-occupied duplexes are not subject to the L.A. Systematic Code Enforcement Program (SCEP). The analysis was conducted due to challenges by local duplex owners.

The Los Angeles Municipal Code (LAMC) states that properties with two or more dwelling units are subject to SCEP inspections. A "dwelling unit" is defined as a unit rented or offered for rent. A unit that is occupied by an owner is not "rented or offered for rent." Therefore, the property only has one dwelling unit as defined by the LAMC.

We expect the Los Angeles Housing Department Code Enforcement Division to ignore these facts as it would mean a loss of precious revenue. AAGLA encourages you to stand your ground if you live in your duplex. You are technically not subject to SCEP inspections.

Nevertheless, prepare to be threatened with legal action. But, stand your ground. It seems highly unlikely that the City Attorney would take these cases after reaching such conclusions. Stay tuned...

Fight Drugs and Gangs — Untie the Hands of Residents and Owners

I n Los Angeles, tenants involved in criminal activity can be extremely difficult for rental property owners to remove from multifamily buildings due to the strict eviction protection regulations of the city's Rent Stabilization Ordinance (RSO).

First, an apartment owner must have one or more witnesses to illegal conduct in order to prevail in court. As of now, the names and addresses of such witnesses must be disclosed on any eviction notice or notice to comply with an existing lease agreement or the law.

Many complaining witnesses fear retaliation from accused criminals due to being required to disclose their identities before trial. In many cases (settlements and such), trial does not take place at all so tenants are needlessly exposed to danger. The : reprisal problem is particularly acute in some city housing projects where gangs are well established.

Tenants need to be able to report criminal activity when they see it without fear of identity disclosure before a trial. This information is available through court discovery processes that are accessible to all parties.

With that said, AAGLA is sponsoring a City Council motion, to be authored by Councilmember Janice Hahn, asking for an amendment to the RSO that would remove any requirement that the names and addresses of witnesses to criminal activity be included in eviction notices or notices to comply. More on this later...

Motion on Megan's Law Initiates New "311" Program in L.A.

O ver a year ago, while interviewing Richard Alarcon during his race for the 7th District L.A. City Council seat, the subject of Megan's Law came up. AAGLA members on the panel explained to him that owners and managers of apartment buildings cannot use information from the Megan's Law website to search for tenants applying for apartments and use that information to deny them housing during the application process if they are found to be registered sex offenders. State law finds it to be "discriminatory." Therefore, we are forbidden to deny them housing, and we face a $25,000 fine if we do.

And there begins the saga of the soon-to-debut L.A. City "311" program (it remains nameless at this time) that will help monitor sex offenders registered or not. At the time the Alarcon meeting took place, he was still a State Assemblymember. He introduced legislation shortly after our meeting that would have allowed owners and managers to use the information from the website when considering prospective tenants. The legislation died when Alarcon left his Assembly seat to take a newly-won position on the L.A. City Council.

Still interested in helping us and protecting good tenants, Councilmember Alarcon and his council colleague, Dennis Zine, introduced a motion that would allow the use of the website at the city level. We knew the motion would not go very far as the intent of the legislation is superseded by state law. Subsequently, the City Attorney's office was directed by the Public Safety Committee to work with AAGLA and tenant groups to come up with some sort of possible program that can help reduce the threat of sex offenders living in or near multifamily buildings. Thus, the L.A. City "311" sex offender alert program was born.

While there are still numerous details to finalize, such as training and promotion, the idea is fairly simple. Owners, managers, and tenants will be provided a method via the L.A. City 3-1-1 non-emergency information line to report suspicious behavior of a sexual nature to 3-1-1 operators who will be trained to forward these calls to the L.A. Police Department's Registration Enforcement and Compliance Team (REACT) section. REACT will do the follow-up from there — by interviewing, checking registration status and monitoring anyone who is reported. With this program, we hope to put potential sex offenders on notice. Sexual misconduct in multi family buildings will not be tolerated.

This program is a win-win not only for owners and tenants, but for the City of Los Angeles as a whole. The program will be unveiled this summer. Look for more information in future editions Apartment Age magazine.

Building Relationships — AAGLA's Ties to Government Grow Stronger

A s soon as I walked in the door of our 90th Anniversary Celebration in December, I could sense that things had changed for the better. There, L.A. City Councilmember Dennis Zine and City Attorney Rocky Delgadillo were whooping it up with AAGLA Past-Presidents Harold Greenberg and Larry Cannizzaro.

In a corner across the room, I saw State Assemblymembers Mike Davis, Democrat, and Bob Huff, Republican, chatting with AAGLA State Lobbyist Steve Carlson about a new legislative idea for the rental housing industry.

Councilmembers Bernard Parks and Jan Perry also dropped by to honor our President, John Schulhof, and AAGLA with a resolution from the entire L.A. City Council. Many other legislators — past and present — were in attendance or represented; and all were having a great time. It was a terrific evening.

Click here to see pics from 2007 Installation dinner.

It used to be like pulling teeth to get a great group of colleagues and counterparts together for one of these events. As AAGLA has grown more vocal and stronger, both financially and politically, many more civic and state leaders have taken notice. But, there was something else.

Business organizations and associations, such as the L.A. Area Chamber of Commerce, the Central City Association, and other apartment associations, were well represented at the gathering as well. Many staff members from the Councilmembers' offices and L.A. City departments, Planning, City Attorney and Public Works, with whom we have worked, were in attendance. We were disappointed, though not particularly surprised, that no one from the L.A. Housing Department came, even though we sent close to 20 individual invitations — go figure.

Building closer relationships with legislators, staff members, and other business organizations has been a priority for AAGLA over the past few years. In doing so, we have put ourselves in a position to be more proactive with regard to programs and legislation.

In that regard, we have a number of ideas cooking at the state and local levels. I mentioned several of them in my article last month, including the creation of a ratio utility billing

system for water, and changes to the nuisance eviction policies to make it easier to remove drug dealers and gangsters from multi-family rentals. Stay tuned for a very active, or should I say PROactive, year. See below for information on how you can help.