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Professional Publishing, Inc www.TheLandlordTimes.com
Vol. 17 Issue 5
May 2013
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MONTHLY CIRCULATION TO MORE THAN 5,000 APARTMENT OWNERS, PROPERTY MANAGERS, ON-SITE & MAINTENANCE PERSONNEL Published in association with: METRO Multifamily Housing Association & Rental Owners Association
Obama Administration Renews Funding for 19 More Homeless Projects in Alaska, Idaho, Oregon & Washington State $2 million in HUD Continuum of Care funds awarded recently is over & above $68.4 million in renewal funding awarded to 408 Alaska, Oregon & Washington homeless projects in March, 2013 U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan recently awarded an additional $2,070,603 in renewal funds to 19 homeless projects in Alaska, Idaho, Oregon and Alaska in a second round of renewal grants under HUD's Continuum of Care. Recently's awards will ensure these HUD-assisted local homeless assistance projects remain operating in the coming year. The renewal funds announced
recently are over and above the $68,351,206 in renewal funds awarded to 408 homeless projects in Alaska, Idaho, Oregon and Washington awarded in March, 2013. HUD will make a third round of Continuum of Care funding to support selected new projects later this year. "We know these modest investments in housing and serving our homeless neighbors not only saves Continued on page 6
Number of Improving Housing Markets Holding Steady in April
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Following seven consecutive months of gains, the list of improving U.S. housing markets remained virtually unchanged in April, with 273 metros on the National Association of Home Builders/First American Improving Markets Index (IMI), released today. This total reflects a net reduction of one market since March and again includes entrants from all 50 states and the District of Columbia. The IMI identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. Five new markets were added to the list and six markets were dropped from it this month. Newcomers included the geographically diverse locations of Macon, Ga.; Portland, Maine; Rocky Mount, N.C.; Eugene, Ore.; and Jackson, Tenn. “The stability in the improving markets list this month is encouraging, with three quarters of all metros tracked by our index considered on the upswing as the housing recovery spreads to parts of every state,” said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “In some markets, the main thing Continued on page 7
Apartment Industry Outlines Tax Reform Principles for Congress Tax reform must be comprehensive and take special care not to harm the thousands of businesses involved in multifamily real estate nor the 35 million Americans who call an apartment home. This was the focus of testimony by the National Multi Housing Council (NMHC) and the National Apartment Association (NAA) before the House Committee on Ways and Means recently. Representing NMHC and NAA, Thomas Moran, Chairman and Managing Partner of Moran & Company, testified on the need to meet the housing needs of what the Harvard Joint Center for Housing Studies research suggests is up to seven million new renter households this decade. “Like many other small businesses, the apartment industry has a considerable stake in tax reform. In addition, we provide homes for millions of Americans covering the entire socioeconomic spectrum," said Moran. "An estimated 300,000 to 400,000 units a year must be built to meet expected demand; yet just 158,000 apartments were delivered in 2012 – not enough to even replace the units lost every year to demoliContinued on page 3 Page 2
PRESIDENT'S MESSAGE Page 4
A MESSAGE FROM YOUR PRESIDENT …
MULTIFAMILY NW President • Paul Hoevet Past President • Jeff Denson Vice President • Pam McKenna Secretary • Kirsten Bailey Treasurer • Chris Hermanski
PAUL HOEVET
Multifamily NW President
Hello everyone. I just can’t believe that we have a quarter of 2013 already behind us. With the coming of nicer weather, everyone seems to be up in spirits and preparing for the summer season. Out on sites, the grounds are finally green, the flowers are going in the planting beds, the covers are coming off the pools, and exterior maintenance and upgrade projects are starting to pick up steam. It is a busy and exciting time of the year. Multifamily NW has also been very busy. We have sworn in our new Board member Janine Lind from Guardian Real Estate Services. Janine brings both experience and new perspective to the organization as she fills a seat that was vacated by Jay Olson. I wish to welcome Janine and also thank Jay for his contributions to the Association. There are many Multifamily NW events that coming up. The committee volunteers have been working diligently to plan and execute events that continue to grow in attendance as well as quality. I would like to thank them for their dedication to our Association. The ACE Awards will be held on May 16th at the Portland Art Museum. It will be a wonderful evening
16083 SW Upper Boones Ferry Road, Suite 105, Tigard, OR 97224 503-213-1281, 503-213-1288 Fax www.multifamilynw.org
President's Message that celebrates the best of the best in Property Management. This year’s event boasts nominees from more companies than ever, as well as our first ever After Party. There are still seats available for ACE, so make sure you don’t miss it. On June 25th there will be the first ever Mid-Willamette Valley Putt-Putt Golf Tournament held at Best Little Roadhouse Restaurant in Salem. Proceeds from the event will go support the Willamette Humane Society. The 27th Annual Multifamily Charity Golf Tournament is slated for July 11th at Langdon Farms. There are sponsorships and foursomes left for this event but they are going quickly. Come and help support our largest charity event of the year. This year’s proceeds will be donated to White Shield Center, Hope Lift, and Northwest Housing Alternatives. The 2013 Southern Willamette Valley Charity Golf Tournament will be held on August 22nd at the Emerald Valley Golf and Resort. Sponsorships are sold out for the event but foursomes are still available. And finally, Spectrum Exhibitor Registration opened on May 3rd. This year’s show will be held on September 19th and promises to be the
biggest and best Educational and Tradeshow Conference yet. When we all participate and attend these events it helps to make our Association stronger. We prioritize education which makes us better at what we do, we network which helps us have one voice and we publicly acknowledge the success of our peers which shows those outside the
industry that we strive to be the best and that we get to have fun at the same time. I look forward to seeing you all at these events and wish to thank you for supporting Multifamily NW. Enjoy.
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Multifamily NW 2013 Events: MARK YOUR CALENDAR! May 13, 2013 9:00 AM - 2:00 PM ELEVATE: New Hire Class May 15, 2013 12:00 PM - 1:00 PM PDX Monthly Luncheon: How to Maximize Apartment Ownership in Current Market Conditions-and Flourish-When the Market Changes May 20, 2013 8:00 AM - 5:00 PM Lead-based Paint Certification May 21, 2013 9:00 AM - 12:00 PM Fair Housing with Nadeen Green: Ad-ing to Your Fair Housing Knowledge -
May 21, 2013 1:00 PM - 5:00 PM ELEVATE: Oregon Landlord/ Tenant Law Part 2 May 22, 2013 9:00 AM - 1:00 PM ELEVATE: Leadership and Supervisory Skills May 23, 2013 9:00 AM - 1:00 PM ELEVATE: Risk Management May 27, 2013 8:00 AM - 12:00 PM ELEVATE: Kitchen & Bath Plumbing May 29, 2013 8:00 AM - 12:00 PM ELEVATE: Project Management
visit www.multifamilynw.org for more dates
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The LandlordTimes - Valley • May 2013
Apartment ...continued from front page tion and obsolescence." To meet the ongoing demand for rental housing, the apartment industry asks Congress to: • Ensure that tax reform is comprehensive and does not reduce corporate taxes at the expense of small businesses. • Maintain the current treatment of carried interest to help offset the considerable financial risks in real estate. • Retain the 100 percent deduction for business interest. • Protect the Low-Income Housing Tax Credit program, which is responsible for more than 2.4 million affordable apartment homes. • Respect the estate tax legislation enacted as part of the American Relief Act of 2012. • Modify the section 179D Energy Efficient Commercial Buildings Tax Deduction to enable more properties to qualify for the incentive. “The apartment industry builds vibrant communities by offering housing choice, supporting local small businesses, creating millions of jobs and contributing to the fabric
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of communities across the country. In fact, apartment homes and our 35 million residents contribute $1.1 trillion annually to the economy and help support nearly 26 million jobs,” Moran added. For more than 20 years, the National Apartment Association (NAA) and the National Multi Housing Council (NMHC) have partnered on behalf of America’s apartment industry. Drawing on the knowledge and policy expertise of staff in Washington, D.C., as well as the advocacy power of 170 NAA state and local affiliated associations, NAA and NMHC provide a single voice for developers, owners and operators of multifamily rental housing. Apartments and their 35 million residents support more than 25 million jobs and contribute $1.1 trillion to the economy. To learn more about apartments, visit www. weareapartments.org. For more information, contact: NMHC at (202) 974-2300 or info@nmhc.org or www.nmhc.org. NAA at (703) 797-0616 or carole@naahq.org or www.naahq.org/ governmentaffairs.
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RENTAL OWNERS ASSOCIATION
205 W. 10th Avenue, Eugene OR 97401 (541) 485-7368 (541) 284-4052 info@ laneroa.com
President • Jim Straub Vice President • Michael Steffen Secretary • Scott Smith Treasurer • Pat Costello Board Members: Dennis Casady, Dennis Chappa, Robei Ellis, Devin Gates, Eric Hall, Tia Politi
A Message from Your President … If you are a business or property owner in the City of Eugene, we encourage you to investigate the details of the City of Eugene Ballot Measure 20-211. Through this ballot measure, City of Eugene voters will decide whether to raise their tax burden by a $120 a year fee, collected monthly, on every household in Eugene and $360 for every business. This fee will have a direct financial impact on each property and business you own in the City of Eugene, and it will impact your tenants as landlords are forced to raise rents to accommodate the fee. On April 3rd, the ROA Board of Directors voted to oppose this fee. We recommend the website www.votenocityfee.org, sponsored by a citizens group organized in opposition to this ballot measure. We found the “FAQ Page” (Frequently Asked Questions – link on the left side of the web page) to be particularly informative. Ballots are scheduled to be mailed on May 3rd and are due on May 21st. Please plan to vote and ensure that our landlord voices are heard. The Eugene Police Department began enforcing the newly enacted Social Host ordinance on April 2nd and an arrest of seven people at a noisy house party quickly followed
on Monday, April 8th. Students who hosted the bash could be fined if convicted of violating the newly enacted city ordinance that penalizes the people responsible for unruly partying. As mentioned last month, the City of Eugene, Social Host ordinance (Ordinance on Unruly Gatherings), passed by Eugene City Council on January 28th, 2013, went into effect on March 2, 2013. Violators were ‘educated’ (given warnings) through April 1st. Under this new ordinance, both hosts and property owners could be civilly liable for police, fire and public works response to repeated illegal gatherings. If your tenants are cited, please call the Helpline at 541-242-2850 to discuss the actions you must take to protect your business and financial interests. As you’ll read in the Legislative Update on page 19 (in our newsletter), the 2013 Legislative session is about half over and many of the big issues have not yet been addressed. ORHA is lobbying on several bills this session directly affecting rental owners. We are closely watching Senate Bill 91, the Landlord-Tenant omnibus bill, and House Bill 2639, the Section 8 “housing choice” bill. Please read this article and watch for
updates on the 2013 Legislative compliant) edition of many of the forms. The office will continue to sell Session in future ROA bulletins. ORHA (Oregon Rental Housing these full pads of 50 at the current Association) has been working on price (prior to increase) until our revising our forms to correct incon- supply is exhausted. Please call the sistencies and improve usability. ROA office at 541-485-7368 if you Most forms revisions have been have any questions. Many thanks to our featured released with revisions of rental in March, Charlie agreements still to come. Remember: speaker EWEB Energy Forms were not revised because of Schifferdecker, law changes and you may still use Management Specialist for his prethe prior edition of each of the sentation, “Step by Step Energy Efficiency for Your Rentals.” If you forms. Please note that you will see a missed this meeting, please call the forms price increase effective May ROA office to obtain a copy of the 15, 2013 (see pages 27-28 in our EWEB handout. newsletter). After many years of We hope to see you on Thursday, holding their prices, ORHA has May 23rd for a very special presentaincreased the cost of forms to the 14 tion by Brian Cox, Attorney at Law of local associations. And in turn, we Cox & Associates. Brian will present, will need to raise our prices. Even “Money Talks – But Mine Keeps with the increase, we believe that our Saying Good-Bye.” If you have tenforms offer a great value to our ants who owe you money and want to members. All forms are fully compli- increase your chances of actually getant with Oregon Landlord-Tenant ting paid, you won’t want to miss METRO, Law and are reviewed and revised to VALLEY, Brian’s advice on ways ARIZONA to increase comply with legislative changes. your collections. Our Affiliate Spotlight As stated above, ORHA forms speaker will be Jamie Chimpky of were not revised because of law Willamette Rental Guide. changes and you may continue to use the prior edition of the forms. We’ll see you on May 23rd! But because of the recent forms reviJun, Aug, Oct, Dec sions, the ROAFeb, office Apr, has a limited Jim Straub, President supply of full pads of the prior (fully
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Q
ualifying prospective renters can seem especially challenging when you must establish their eligibility to rent based upon income. While it is necessary to determine if callers and visitors can qualify to rent at your community, coming right out and asking someone for their annual income can be perceived as an invasion of privacy. (Would you like a total stranger to ask: “How much money do YOU make?”) Recently the following question on this subject came up: Q: We are a tax credit property with certain income restrictions, but not everyone who calls or stops by is aware of this. I try to find out about monthly or annual income right away because I don’t want to waste their time or mine. However, I am getting the impression that people are embarrassed or put off by my line of questioning. What’s the best way of figuring out if people are income-qualified without offending them?
A: Whether your community has income restrictions or not, every community has a set standard or policy for qualifying prospective renters based on their income. Whether someone must make three times the monthly rental rate or make no more than a specific amount annually, everyone who applies to rent must qualify “financially” in some way. As such, there is no need to treat anyone differently or label someone as “unqualified.” It’s all a matter of using effective communication so that everyone will understand what the criteria is to qualify at your community. Rather than saying, “I need to know how much money you make,” you could take another approach. Perhaps after you have established a rapport with the phone caller or visitor you could say something like this: “I need to let you know that our community has certain income restrictions, based upon the number of people in your family. For a household of four, your income may not exceed $32,000. Does this work for you and your family?”
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By offering the qualifying criteria up front, you are helping each prospective renter make an informed decision about their eligibility to rent at your community. In addition, you are showing respect and consideration for their privacy, as well as preserving their dignity. Would you want to be treated any differently? If you have a question or concern that you would like to see addressed next month, please ASK THE SECRET SHOPPER by making contact via
e-mail. Your questions, comments and suggestions are ALWAYS welcome! ASK THE SECRET SHOPPER Provided by: SHOPTALK SERVICE EVALUATIONS Phone: 425-424-8870 E-mail: joyce@shoptalkservice.com Website: www.shoptalkservice.com Copyright © Shoptalk Service Evaluations
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Serving the Eugene, Salem, Albany, and Corvallis Multifamily Housing Industry More than 6,000 Distributed Monthly www. TheLandlordTimes.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, omport an endorsement of or support for the products or services offered. The LandlordTimes - Valley is produced monthly and is published by Professional Publishing Inc. An Oregon Corporation. PO Box 30327 Portland, OR 97294-3327. (503) 221-1260 • (800) 398-6751
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www.industrialsource.com 541-485-3566 503-232-6646 The LandlordTimes - Valley • May 2013
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STATE AK
...continued from front page
money, but saves lives," said Donovan. "These local programs are on the front lines of the Obama Administrations efforts to prevent and end homelessness as we know it once and for all." "Even with an improving economy times remain as tough as ever for those without a place to call home," said HUD Northwest Regional Administrator Mary McBride. "These funds help hard-working local organizations keep their doors open and services flowing to help homeless families and individuals put a roof over their heads and stability and opportunity back into their lives." The projects awarded renewal funding recently include: HUD's Continuum of Care grants are awarded competitively to local projects to meet the needs of their homeless clients. The grants fund a wide variety of programs from street outreach and assessment programs to transitional and permanent housing for homeless persons and families. HUD funds are a critical part of the Obama Administration's strategic plan to prevent and end homelessness. While the Fiscal Year 2012 funds awarded today are not impacted by the automatic across-the-board budget cuts under sequestration that began March 1st, Donovan cautioned that future budget cuts may reverse significant reported declines in home-
lessness: "During this challenging budget climate, we must make certain that we don't balance our books on the backs of our most vulnerable citizens. When we make even modest investments in these programs, we see a measureable decline in homelessness." HUD's Continuum of Care grants announced today will continue offering permanent and transitional housing to homeless persons as well as services including job training, health care, mental health counseling, substance abuse treatment and child care. Continuum of Care grants are awarded competitively to local programs to meet the needs of their homeless clients. These grants fund a wide variety of programs from street outreach and assessment programs to transitional and permanent housing for homeless persons and families. In 2010, President Obama and 19 federal agencies and offices that form the U.S. Interagency Council on Homelessness (USICH) launched the nation's first comprehensive strategy to prevent and end homelessness. Opening Doors: Federal Strategic Plan to Prevent and End Homelessness puts the country on a path to end veterans and chronic homelessness by 2015 and to ending homelessness among children, family, and youth by 2020.
PROJECT Alaskan AIDS Assistance Association / AK500 - REN - 6-Plex Project
CITY
FUNDING
Anchorage
$115,689
Alaska Total ID ID
ID
ID
Boise City Housing Authority / ID-500 REN - Landmark Project Idaho Housing and Finance Association / ID-501 - REN - Family Promise Transitional Housing Idaho Housing and Finance Association / ID-501 - REN - Freedom LZ Transitional Housing Idaho Housing and Finance Association / ID-501 - REN - Your Way Home Transitional Housing
Boise
$7,850
Boise
$43,122
Boise
$45,452
Boise
$79,537
Idaho Total OR OR
OR
Oregon State Health Authority / OR-503 REN - Central Oregon CoC Washington County Department of Housing Services / OR-506 - REN - SPC TRA Homeless Families Renewal OR16C706004 Clackamas Women's Services, Inc. / OR507 - REN - Permenant Supportive Housing Project for Survivors of Domestic and Sexual Violence
WA WA
WA WA WA WA WA WA WA
www.hud.gov
WA
King County / WA-500 - REN - Sobering Support Center Low Income Housing Institute / WA-500 REN - One Heart Center YWCA of Seattle-King County-Snohomish County / WA-500 - REN - Transition Into Permanent Project (TIPP) Benton and Franklin Counties Department of Human Services / WA-501 - REN Shelter Plus Care YWCA of Spokane / WA-502 - REN - YWCA DV SS #2 FY2012 Pierce County / WA-503 - REN - Bridges Village Pierce County / WA-503 - REN - Manresa Apartments Yakima County / WA-507 - REN - YNHS PSH1 WA0189B0T071104 Yakima Neighborhood Health Services / WA-507 - REN - 904 Transitional Housing WA0186B0T071104 Columbia River Mental Health Services / WA-508 - REN - New Dreams Two Second Step Housing / WA-508 - REN Story Street II
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$175,961
Portland
$16,301
Hillsboro
$87,372
Oregon City
$59,837
Oregon Total WA
$115,689
$163,510
Seattle
$624,566
Seattle
$398,285
Seattle
$167,867
Kennewick
$89,739
Spokane
$91,645
Tacoma
$35,197
Tacoma
$37,429
Yakima
$10,769
Yakima
$49,106
Vancouver
$79,261
Vancouver
$31,009
Washington Total
$1,614,873
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The LandlordTimes - Valley • May 2013
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Number ...continued from front page that’s holding back a recovery is a relatively thin inventory of homes for sale, which could be resolved if builders had easier access to credit for building homes and putting people back to work.” “After a strong run-up through late 2012 and early 2013, the number of improving markets is holding steady at a high level,” said NAHB Chief Economist David Crowe. “We can expect to see more gradual gains going forward as challenges related to increased demand kick in – including everything from tightened supplies of developable lots and labor to the rising cost of building materials.” “With 75 percent of the country seeing measurable improvement in housing market conditions, the outlook is definitely brightening for local economies this spring,” noted Kurt Pfotenhauer, vice chairman of First American Title Insurance Company. The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent
monthly data to get a mark on the top improving Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metro area must see improvement in all three measures for at least six consecutive months following those measures’ respective troughs before being included on the improving markets list. A complete list of all 273 metropolitan areas currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in April, is available at www. nahb.org/imi. www.nahb.org
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The LandlordTimes - Valley • May 2013