October General Membership Meeting Recap

More than 150 members attended the AAOC General Membership Meeting on October 18, 2022, for a comprehensive legislative session wrap up and preview of the new state laws that will affect the rental-housing industry starting in January.

AAOC State Legislative Advocate Ron Kingston and attorney C. Tyler Greer, Esq. (Duringer Law Group, PLC) covered a wide range of policy topics during their presentation, focusing not only on the legislation that was signed into law by the governor but also doing a “deep dive” into related policy issues that we could see introduced as new legislation in the coming year.

The initial topic covered by Kingston

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L to R: Steve Cheung (Walnut Garden Apartments) and Darcy Wagner (Zumper). L to R: Len Allen and James McCormick (Argos Home Systems, Inc.).

L to R: AAOC State Legislative Advocate Ron Kingston and Tyler Greer (Duringer Law Group, PLC) listen as a member asks a question regarding one of the new laws taking effect on January 1, 2023. L to R: Amanda Fielder and Troy Mitchell (CBRE Multifamily SoCal — Dan Blackwell & Team).

L to R: Mercedes Shaffer (Investing in the OC) and Marilyn Silverstein discuss current market conditions and different investment strategies for property owners to consider. L to R: AAOC State Legislative Advocate Ron Kingston and AAOC Vice President of External Affairs Chip Ahlswede

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and Greer was Electric Vehicles (EVs) and that by 2035, only those vehicles will be permitted for new car sales in California. To support this mandate, beginning in early 2024, the California Building Standards Commission and the Department of Economic Development, will research and develop proposals for mandatory installation of EV charging stations — including installation in multifamily communities.

Kingston emphasized that it is imperative that the rental housing industry participate in the process for developing these standards, to avoid unnecessary costs associated with the installation of EV stations in multifamily parking lots.

Another issue covered was the future of credit reporting for prospective renters. It was stated that until July 1, 2025, property owners of assisted housing developments, with 16 or more dwelling units, are required to offer lessees the option of having their favorable rental payments reported to at least one consumer reporting agency.

In addition, state law now permits (but does not require) rental housing providers to accept a reusable consumer report from prospective residents to obtain information about their creditworthiness during the application process. This is a policy are that the legislature is expected to continue exploring during the 2023 legislative session.

Indoor residential water usage is also in for major changes according to Kingston and Greer. Through December 31, 2024, the indoor consumption standard shall be 55 gallons per capita daily. From January 1, 2025 through December 31, 2029, the standard shall be 47 gallons per capita daily. And from January 1, 2030, the standard will be 42 gallons per capita daily. How those

AAOC President Frank Alvarez (Buffalo Maintenance) announces the upcoming webinars and special events for the remainder of the year. Thank you to our meeting sponsors: Dish Fiber, Genesis Bank, and Kay Properties & Investments, LLC. Meeting Recap — continued on page 24

Morgan Ferris (Genesis Bank) shares information about their multifamily lending services.

standards will be achieved remains to be seen. How it will be enforced is an even greater question.

The program concluded with Kingston discussing the creation of a Los Angeles Regional Housing Finance Act. This will establish authorization to raise and allocate new revenue through a parcel tax, gross receipts, business tax license tax, a document tax, and the issuance of bonds, including general obligation, revenue, and mortgage bonds, as well as private activity bonds.

Members who would like to watch the meeting video or review the presentation slide deck can do so by visiting https://www.aaoc.com/meeting-handouts-and-presentations. To access the information, please be sure you are first logged into your member account.

AAOC wishes to thank the sponsors of the October General Membership Meeting: Dish Fiber, Genesis Bank, and Kay Properties & Investments. Their support of the association and the presentation of this meeting is appreciated. Finally, there are some changes coming to the AAOC General Membership Meetings in 2023. Meetings will now be held on Wednesday evenings at a new location — The Santa Ana Elks Lodge (1751 S. Lyon Street, Santa Ana, CA 92705). The lodge is conveniently located just south of Edinger Avenue and west of the Costa Mesa (55) Freeway.

We look forward to seeing you at our first meeting of the year on Wednesday, January 11, 2023, beginning at 7 p.m.

Tommy Olsen (Kay Properties & Investments) talks about the benefits of multifamily property owners diversifying their real estate holdings with a 1031 Exchange. Tyler Greer (Duringer Law Group, PLC) answers a members’ question.