Rental Housing Journal Utah October 2016 by Professional Publishing, Inc

October 2016 - Vol. 8 Issue 10

Rental Housing Journal Utah

2. President’s Message – Donating to the UAA PAC

UPCOMING EVENTS

3. Director’s Message – Grateful for Members Like You

Annual UAA Meeting Uaa Offices .............. Thurs, Nov 29th 7pm

4. Ask the Attorney – Starting an Eviction – Step #1

Good Landlord Class Ogden City Hall................Nov 15th 8:30am Salt Lake..............................Nov 16th 8:30am www.GoodLandlordingTraining.com

www.uaaGeneralMembershipMeetings.com

EVENTS Economic Forecast ...................... Sept 13th Salt Lake Board of Realtors, Sandy

www.uaahq.org/economic-conference

PAC Luncheon.................................................Oct 12th (TopGolf, Murray)

www.uaahq.org/uaa-pac

Landlord Legal Cruise ................. Jan 8th-Jan 15th RC Allure of the Seas, Western Caribbean

www.uaahq.org/cruise

www.rentalhousingjournal.com • Professional Publishing, Inc Official Publication of The Utah Apartment Association Utah’s Leading Advocate for the Rental Housing Industry – 888-244-0401 – WWW.UAAHQ.ORG

Justice Department Settles with Salt Disability Law Center Lake City-Area Apartment Complexes Receives to Resolve Allegations of Discrimination Against Individuals with Disabilities $282,830 for Fair Housing Testing

he Justice Department announced on September 27th that the owners and managers of four multi-family apartment complexes in the Salt Lake City area have agreed to pay $45,000 to settle a lawsuit alleging By Paul Smith, that they violated the Fair HousUAA Executive Director ing Act by discriminating against he Disability Law center, in tenants and prospective tenants Salt Lake City, Utah, will with disabilities. receive a $282,830 grant to perform fair housing testing in Utah through the coming year. HUD announced a total of $38 million in Fair Housing Initiatives (FHIP) grants to confront discriminatory housing. In their press release, they say “HUD's grants will support some 155 national and local fair housing organizations working to confront violations of the nation's landmark Fair Housing Act”. According to HUD, FHIP he Housing Authority of grants fund organizations to supSalt Lake City Board of port a wide range of fair housing Commissioners recently hired Daniel Nackerman as Execcontinued on page 5 utive Director for the Housing Authority of Salt Lake City and President of the Housing Development Corporation and Housing Assistance Management Enterprise. He is replacing Terry Feveryear who is retiring after 36 years in the housing industry; with 33 years

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plete a “prescription form” suggesting that the healthcare provider may be held responsible for any property damage or physical injury that the assistance animal may cause. The defendants did not require tenants without disabilities who had pets to have a third party assume liability for their animals. continued on page 6

Salt Lake City Housing Authority News and Information

Professional Publishing Inc., PO Box 6244 Beaverton, OR 97007

The lawsuit alleges that the defendants failed to provide reasonable accommodations for certain tenants with disabilities who sought to live with their assistance animals. The department’s complaint alleges, among other things, that the defendants required tenants with disabilities who sought to live with an assistance animal to have a healthcare provider com-

at the Housing Authority of Salt Lake City. Terry has served in various capacities, with the past three years as Executive Director. Mr. Nackerman has worked for various housing authorities for over 26 years with sixteen of those years as an Executive Director. He most recently served as the Executive Director for the County Housing Authority of San Bernardino, California, the largest

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provider of affordable housing in the country with over 10,000 units owned/managed. Chair Philip Bernal states, “I feel very positive about Dan Nackerman serving as the new Executive Director for the agency.” The Housing Authority of Salt Lake is the largest housing authority in Utah with 1,572 units and continued on page 7

Advertise in Rental Housing Journal Utah Circulated to over 6,000 apartment owners, on-site and maintenance personnel monthly.

Call 503-221-1260 for more information

Utah Apartment Association 448 E Winchester St Ste. 460 Salt Lake City, UT 84107 Ph: (801) 487-5619 Fax: (801) 484-8649 www.uaahq.org

President’s Message Donating to the UAA PAC

Peter Harradine, AIT, CAM Board Chair Utah Apartment Association

ecently the UAA sent out our annual membership dues for 2017. You may have noticed on your bill is listed an “Optional PAC Donation”. This is a recommended amount suggested to every member of the UAA based on their size and ability to pay. Many of our members view the PAC donation as an important investment in their business. Contributing to the PAC is so important because it enables the association to fulfill one of its main goals

and functions of representing your interests and your rights to the State and local governments. Every year things are proposed that can negatively affect landlords and your bottom line. Through the PAC we are able to foster respectful working relationships and help educate others about the issues important to our industry and to our members. We work hard to find lasting solutions through common ground and compromise that will benefit our members both now and in the future, and which will have a positive impact on all parties involved. We can only accomplish these goals with donations from members like you. Your PAC contributions make a real and lasting impact. No matter what kind of rental homes you have, or how many you have, the UAA is here

to help you succeed. Let’s all work together to make sure it stays that way. For more information on what the PAC is doing to protect your industry, visit www.uaahq. org/uaa-pac If you are interested in learning more about the process of how PAC funds are distributed, you are more than welcome to come to any meetings of the Government Affairs Committee or the Board of Directors. Just call the UAA staff and find out when they are next meeting. You may even find that you would like to volunteer your time to be a part of the committee and participate in the process! In 2014 the UAA was awarded a prestigious Paragon Award from the National Apartment Association for our Government Affairs Program. We are honored to have been recognized the best in the

Nation, but we are not taking anything for granted. Our continued efforts will take time, effort and money to ensure that the Rental Housing Industry in Utah is one of the best in the country. If you aren’t able to donate to the UAA PAC when you sent in your dues check, don’t worry! You can make a donation at any time by calling the UAA staff or by sending in a check by mail. And if you did make a donation, thank you again for helping us work to preserve and improve the laws governing our industry.

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Rental Housing Journal Utah is a monthly publication published by Professional Publishing Inc., publishers of Real Estate Opportunities in Investing & Real Estate Investor Quarterly

www.rentalhousingjournal.com The statements and representations made in advertising and news articles contained in this publication are those of the advertiser and authors and as such do not necessarily reflect the views or opinions of Professional Publishing, Inc. The inclusion of advertising in this publications does not, in any way, comport an endorsement of or support for the products or services offered. To request a reprint or reprint rights contact Professional Publishing Inc. PO Box 6244 Beaverton, OR 97007. (503) 221-1260 - (800) 398-6751 © 2015 All rights reserved.

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Rental Housing Journal Utah · October 2016

Utah Apartment Association 448 E Winchester St Ste. 460 Salt Lake City, UT 84107 Ph: (801) 487-5619 Fax: (801) 484-8649 www.uaahq.org

Director’s Message

Grateful for Members Like You

L. Paul Smith, CAE Executive Director Utah Apartment Association

all is suddenly upon us, and it feels like this year the weather is determined to go from summer directly into winter. As the days grow shorter it feels like the work we have to do as the association grows bigger and bigger. This time of year as we send out renewal notices to members like you and plan our events, activities, classes and programs for the next year I just wanted to pause and take a moment to let you know

how grateful the UAA staff is to work for members like you and for our industry as a whole. I am excited about 2018. We have already got a big jump on our government affairs agenda, and will be working throughout the legislative session to ensure that your interests and rights are protected and that

your voice is heard. We have several new services and publications that will be coming online early in the next year, and our education classes are being revised and finetuned to ensure that they offer you the most timely and important information. Our social media presence continues to expand, and our

outreach efforts around the state continue to grow. Our 2018 Fair Housing Education Conference & Trade Show in April will be so big that we have already made plans to expand to another Hall. All of our other events also are on track to not only grow in the number of people attending, but also in the quality of what we will be offering. None of this would be possible without you. As a member of the association you can be proud in the knowledge that your contribution – big or small – goes directly towards helping to ensure that the UAA will continue to be Utah’s leading advocate and resource for the owners, real estate professionals, developers, management teams, suppliers and service providers dedicated to quality rental housing.

WHAT ARE THE BENEFITS FOR A PARTICIPATING LANDLORD?  Steady Monthly Cash Flow. The rent subsidy or the Housing Assistance Payment (HAP) check is mailed directly to the landlord on or about the first of every month. Direct deposits are deposited on the 1st day of the month.

 Less Turnover, More Profit. Once Section 8 families find a good place to live, they tend to stay. This translates to lower vacancy rates, fewer operating costs and higher profits.

 Some programs at the Housing Authority offer supportive services to help ensure stability in landlord support.

 Elimination of Advertising Costs. Participating landlords  Screening is left to the landlord as you would for any can post available rentals online free at gosection8.com and in the Housing Authority’s main office lobby.

 Online landlord portal to view payment and inspection information.

 Free health and safety inspections conducted on every unit.

Call 801-284-4454 or Email chriscollier@hacsl.org Rental Housing Journal Utah · October 2016

resident. Landlords are encouraged to develop their own tenant selection criteria. This can include: credit history, personal references, home visits , and previous rental history. Please remember, all screening must be done in accordance with Federal Fair Housing requirements and evenly applied to all potential residents.

HELP FAMILIES, INDIVIDUALS, VETERANS, THE ELDERLY AND PERSONS WITH DISABILITIES OBTAIN SUITABLE HOUSING TODAY

Rental Housing Journal Utah

Ask the Attorney Starting an Eviction — Step #1:

By Jeremy M Shorts Utah Eviction Law

he Eviction Notice Most of the calls we receive are because the landlord has had enough of the problems the tenant is causing and they want to know how to get started on an eviction. Over the next few months we’ll walk through the basics of the eviction process, beginning with Step #1 – The Eviction Notice. The first step is to serve eviction notices (notice the plural, we’ll talk about that in a minute). The type of notice will depend on the

tenant’s actions. The eviction notices available under Utah law are all listed on our website (www. utahevictionlaw.com). Some of the more common notices are (1)

three day pay or quit (for failing to pay rent), (2) lease termination (or no cause notice to vacate), (3) lease violations, and (4) nuisance. When serving eviction notices, it’s im-

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portant to remember that you can serve multiple eviction notices all at the same time. Doing so doesn’t make the eviction any more difficult, it actually builds a stronger case. If the landlord serves five different eviction notices and the case ends up in front of the judge, as the attorney I don’t need to prove ALL five eviction notices. I only need to prove one of the five and the landlord should be awarded an eviction order. The primary issue here is to ensure that you’re serving any and all eviction notices that apply to the circumstances. For example, if you have a tenant that is smoking marijuana in your property – that is only one act, but it could justify multiple eviction notices. First, smoking is usually a violation of the lease agreement. Second, smoking that drifts to other units can be considered a nuisance. Third,

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Rental Housing Journal Utah · October 2016

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Rental Housing Journal Utah

Disability Law Center ...continued from page 1 enforcement, education and outreach activities. The grants allow the groups to provide fair housing enforcement through testing in the rental and sales markets, to file fair housing complaints to HUD, and to conduct investigations. Finally, the education and outreach activities these organizations conduct also help to educate the public, housing providers and local governments about their rights and responsibilities under the Fair Housing Act. "Every person should have a fair chance to live in a community of opportunity, free from discrimination," said HUD Secretary Julián Castro. "HUD remains deeply committed to fighting housing discrimination so folks have an equal shot at achieving the American Dream. Working closely with our fair housing partners on the ground, the investments we make today are a strong step forward to put an end to housing discrimination."

Passing a Fair Housing Test

Let’s be honest, no one likes tests! But when failing a certain test can lead to fines or law suits, it is especially important to be prepared. In Utah the Disability Law Center conducts testing to verify landlords are complying with Fair Housing law. While most will be on disability issues, tests can be for any of the protected classes: race, color, sex, religion, country of origin, disability, familial status, source of income, sexual orientation and gender identity.

Paired Testing

When the DLC tests, they generally use paired testers. This means they send (or have call on the phone) two applicants. They measure if the two prospective applicants are treated the same. One tester is not in a protected class (the “control” tester). The other is (the “protected class” tester). The tests are normally done on the same day, to the same leasing person or landlord. If any red flags are discovered, the DLC orders a second test. If both tests suggest the landlord uses discriminatory practices, a complaint is filed with the state or Housing and Urban Development (the Federal Agency in charge of Fair Housing). Findings of discrimination by the state can result in fines of $10,000 for first time offenders. The most effective way to avoid red flags from paired testing is to be sure and treat EVERY PROSPECT the same.

What are red flags?

A landlord recently called the UAA after receiving a letter from the state notifying her it was beginning an investigation based on

testing from the DLC. In her case, she had twice been asked (a few weeks apart) if she allowed service animals. Both times she said yes, BUT, both times she told them she charged an extra $500 deposit to have a service animal. That is an illegal practice. The first offense was the “red flag”. The second led to a formal complaint. According to the DLC, a significant number of initial tests find "red flags" suggesting discrimination or discriminatory practice, leading to follow-up. Some of the red flags included: yy Apartment manager asked about the nature of a person’s disability (a clear no-no) yy Tester was told there would be $50 additional rent added each month for a service animal. yy A protected class tester was told no unit was available while a control tester was told there was one ready now. yy A protected class tester was referred to another complex while a control tester was shown a unit at that complex yy The control tester was offered a move-in special while protected class tester was not

Using Rental Criteria and Equal Treatment

The best way to help you treat everyone equally is to use the same process, procedure and criteria for everyone. Having a firm list of rental criteria can help make sure applicants are only judged on those items (income, credit, rental history, etc.) and not on some prohibited criteria like having a service animal or children in the home. In addition to rental criteria, have, in writing if possible, a “script” you use with everyone. For instance, write down in advance how you will answer every question you might receive. When you do a tour, make it the same for everyone. When getting an application and doing screening, follow the same procedures and require same information from all.

What to Avoid when Renting a Vacancy

Answering questions differently can get you in trouble. For instance, if you ask one applicant how many people will live there, but ask another how many kids they have, it might look like you are discriminating against children. Doing a tour of the grounds, pool and neighborhood for one person, but not doing it for the next could look like you prefer the one over the other. Treat everyone the same.

Rental Housing Journal Utah · October 2016

continued on page 6 5

Rental Housing Journal Utah

Justice Department ...continued from page 1

Disability Law Center ...continued from page 1

The lawsuit arose as a result of complaints by both former tenants and Utah’s Disability Law Center (DLC) filed with the U.S. Department of Housing and Urban Development. DLC, a non-profit organization that works to promote equal housing opportunities in the Salt Lake City metropolitan area, sent testers posing as prospective renters to the defendants’ apartment buildings to determine whether they were engaging in discriminatory practices in violation of the Fair Housing Act. “The Fair Housing Act requires landlords to make accommodations for individuals with disabilities who require assistance animals in their homes,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department remains deeply committed to protecting the rights of persons with disabilities and holding accountable housing providers who utilize discriminatory policies.” “This office will not tolerate business practices that deprive those with disabilities their rights to housing accommodations required under the law,” said U.S. Attorney John W. Huber of the District of

When you get an application, run it immediately. Don’t wait for “a few to choose between”. This could look like you are waiting for someone who “is not in that protected class” to rent to. That would be discriminatory Deny people only for failing one of your rental criteria, like insufficient income, poor rental or credit history, previous criminal history, etc. Never use your “gut” instinct. Denials must be based on qualifications, not feelings. Housing Isn’t a Right – but all Should Have Equal Opportunity You don’t have to rent to someone in a wheelchair, who is also an axe murderer and has been evicted five times. But you should give everyone opportunity by letting them view the housing and apply if they think they can qualify. While you can set reasonable occupancy standards (like two people per bedroom), you cannot deny families with children the opportunity to rent your place, if they qualify, simply because they have children. You don’t have to rent to people who are loud and disturb others. But verifying families with kids were not too noisy at their last place and having them agree to abide by your noise standards rather than assuming they are too loud to live there gives them opportunity. To provide opportunity, your rental criteria shouldn’t be so high as only to describe the top 1% of

Utah. “We will vigorously pursue those who fail to comply with these standards.” Under the terms of the consent order, which must still be approved by the court, the defendants are required to pay $20,000 to a former tenant and her seven-year-old son with autism who were denied permission to keep the child’s assistance animal after the child’s doctor refused to assume liability for any possible damages caused by the animal. The defendants are also required to pay $25,000 to establish a settlement fund to compensate any additional individuals who were harmed by their conduct. The settlement also prohibits the defendants from engaging in future discrimination and requires them to establish a non-discriminatory reasonable accommodation policy, use non-discriminatory reasonable accommodation application forms and have the relevant employees participate in fair-housing training.

Advertise in Rental Housing Journal Utah

Circulated to over 6,000 apartment owners, on-site and maintenance personnel monthly.

Call 503-221-1260 for more information

renters. It should be set only to screen out high risk individuals, not setting the bar so high that good tenants can’t qualify. The best indicator of future performance is past performance. Give everyone an opportunity to show you how well they performed in their last rental, and base qualifications on that not how well they speak English. You don’t have to rent to pets or allow people who are high risk. But if someone with an emotional support animal applies, give them an opportunity to verify they qualify for that “accommodation” for an assistance animal (and the commensurate waiving of all pet fees, pet rent, etc.). If you need help with that process please contact us. Many landlords find people they were initially uncomfortable about but couldn’t exactly say why, turn out to be great tenants when given the opportunity. Whether it is a tester or an actual applicant, the best way to run your business and comply with the law is to provide opportunity for all, treat people equally and qualify tenants on risk based (not opinion or emotion based) criteria. If you do that, you will be successful in business and in passing Fair Housing testing.

Text REALESTATE-ROI to 44222 to receive a digital copy of this year's Real Estate Opportunities in Investing (ROI) Finding Investing Success in Today's Housing Market

Rental Housing Journal Utah · October 2016

Rental Housing Journal Utah

Salt Lake City Housing Authority ...continued from page 1

Ask the Attorney ...continued from page 4

over 2600 Section 8 Vouchers. The Recent Changes agencies newest development is yy Has assigned a single point of contact for landlord issues scheduled to open in November at (contact UAA for more info) 444 South 900 East. With the hiring on a new Execu- yy Stopped doing automatic chargebacks if disputed tive Director at HASLC, we thought we would share some information yy Creating an appeal process when landlords disagree with HA ruling about housing authorities in general and the Salt Lake City Housing yy Joined the Utah Apartment Association as full members Authority in particular.

a criminal acts notice should cover the use of illegal drugs. Fourth, smoking causes damage to the property (waste eviction notice). Fifth, and finally, if the tenant is on a month to month basis you could serve a lease termination – no cause notice to vacate. That one incident could justify all five of these eviction notices. And again, successfully evicting them only requires proving one of the five eviction notices. Once you determine which notices are appropriate, you should ensure that the notices are properly served. Utah law allows eviction notices to be (1) personally served, (2) substitute served (by leaving a copy of the notice with a person of suitable age and discretion and mailing another copy), (3) posting the notice in a conspicuous place on the property if a person of suitable age and discretion cannot be found, or (4) certified or registered mail. Our standard recommendation for serving an eviction notice is to “Knock, Post and Picture.” First, knock on the door to attempt personal service. If no one answers, you can post the notice on the door. Although not required by law, we also recommend taking a picture showing the notice was properly posted in a conspicuous place on the property. Every now

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representing 1,600 owned units

“We are really pleased with the There are 3,200 housing authori- Housing Authority of Salt Lake ties in the US. HASLC is a median City. Under the leadership of their sized one that: new director they have become a yy Houses 9,000 low income Utahans full partner with and are now very yy Owns and operates over 1,600 units responsive to rental operators. We are looking forward to a new era yy Administers 2,700 vouchers with HASLC and appreciate their yy Has a $36 million budget with willingness to work with us,” Kirk reserves of $7.6 million Cullimore Jr, UAA Government yy 66% of funds from federal govt, Affairs Committee Chair. 34% from own revenues local/ state (much lower reliance on feds than most HA’s yy Has for every year in past 8 received $800 k decrease in federal funding yy 107 employees yy Unique among housing authorities because it has robust real estate development, non-profit, and do veterans and homeless housing

and then we have a landlord that wants to avoid embarrassment to the tenant so they email the notice or leave it in the mailbox or under a doormat and text the tenant to let them know it’s there. While these may be effective ways to get the notices to the tenant, they are NOT allowed under Utah law and can result in your eviction being dismissed. It is fine to also email or text the tenant about the notice, but you should still take every reasonable step to properly serve the notice in accordance with Utah law. Finally, once you’ve selected the applicable eviction notices and properly served them on your tenants, you have to wait for the time to expire prior to taking any action. If the tenant refuses or fails to comply with the eviction notice, you are then ready to have us file an eviction with the court. We’ll discuss the next step in more detail next month, but call us if you have any specific questions about your case and how to proceed. Jeremy Shorts is the managing partner of Utah Eviction Law. To contact Jeremy call 801-610-9879 or email info@utahevictionlaw.com

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Rental Housing Journal Utah · October 2016

Rental Housing Journal Utah

LOWER MAINTENANCE COSTS AND LESS TENANT TURNOVER. GO SMOKE-FREE. www.tobaccofreeutah.org/muh-intro.html

Rental Housing Journal Utah Â· October 2016