Rental Housing - June 2016

Rental

Housing EAST BAY RENTAL HOUSING ASSOCIATION | JUNE 2016

OAKLAND COUNCIL USING MISLEADING INFORMATION AGAINST RENTAL OWNERS Facts show fewer evictions, lower average rents

PLUS: HOW TO COMPLY WITH ALAMEDA’S NEW RENT ORDINANCE BUYING AND SELLING PROPERTIES IN A COMPLEX MARKET

Contents

East Bay Rental Housing Association

JUNE 2016

Volume XIII, Number 6 June 2016 EBRHA OFFICE

3664 Grand Ave., Suite B Oakland, CA 94610 tel 510.893.9873 | fax 510.893.2906 www.ebrha.com EBRHA STAFF EXECUTIVE DIRECTOR

Jill Broadhurst | jbroadhurst@ebrha.com DIRECTOR OF STRATEGIC PARTNERSHIPS

Tina Bocheff | tbocheff@ebrha.com PUBLICATIONS & COMMUNICATION PRODUCER

Esteban Cortez | ecortez@ebrha.com ACCOUNTING MANAGER

Cathy Hayden | chayden@ebrha.com MEMBERSHIP ASSISTANT

24

28

Buying & Selling Rental Properties

Complying With Alameda’s Rent Laws

BY LIZ HART

BY EAST BAY CREW

34

Monica Wong | mwong@ebrha.com EBRHA OFFICERS PRESIDENT Wayne C. Rowland VICE PRESIDENT Luke Blacklidge VICE PRESIDENT Jack Schwartz TREASURER Abbe Sultan SECRETARY Fred Morse MEMBER Rick Philips EBRHA DIRECTORS

Mark Almeida, Symon Chang, Reggie Hairston, Carmen Madden, Conor Murphy, Michael Pallas, Rick Philips, Sarah Picker, Judy Shaw PUBLISHED BY

East Bay Rental Housing Association PUBLISHER

Getting Your Tenants to Compost

Wayne C. Rowland MANAGING EDITOR Jill Broadhurst EDITOR Tina Bocheff

BY MICHELLE FAY

ADVERTISING

Tina Bocheff | 510.318.8303

Features & Columns 6

8

NEWS

Oakland Rental Property Owners Come Out In Force PRESIDENT’S MESSAGE

BY GREG BROWN

38

GOVERNMENT AFFAIRS

The Importance of Data-driven A Conversation We’ll Be Revisiting

BY GREG BROWN Decision Making

BY WAYNE ROWLAND

10 BREAKING NEWS Oakland Council Using Misleading Information Against Rental Owners

16 MARKET OUTLOOK Mixed Results in 2016’s First Quarter

BY EBRHA

12 MEMBER SPOTLIGHT Oakland Council Using Misleading Information Against Rental Owners

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Rental Housing (ISSN 1930-2002-Periodicals Postage Paid at Oakland, California. POSTMASTER: Send address changes to RENTAL HOUSING, 3664 Grand Ave., Suite B, Oakland, CA 94610.

Rental Housing is published monthly for $36 per year by the East Bay Rental Housing Association (EBRHA), 360 22nd Street, Suite 240, Oakland, CA 94612.

Rental Housing is not responsible for the return or loss of

40 ESQ&A submissions or artwork. The magazine does not consider unsolicited articles. The opinions expressed in any signed A New Rental Property Owner article in Rental Housing are those of the author and do not necessarily reflect the viewpoint of EBRHA or Rental Housing.

To-do List

BY STEVE WILLIAMS

Events & Directory 44 COMMUNITY CALENDAR 46 M EMBER DIRECTORY 50 M EMBERSHIP INFORMATION 50 A D INDEX

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal service or other expert assistance is required, the services of a competent person should be sought. Acceptance of an advertisement by this magazine does not necessarily constitute any endorsement or recommendation by EBRHA, express or implied, of the advertiser or any goods or services offered.

Published monthly, Rental Housing is distributed to the entire membership of EBRHA. The contents of this magazine may not be reproduced without permission. Publisher disclaims any liability for published articles. Printed by Jostens Printing Co. Copyright © 2016 by EBRHA. All rights reserved.

COVER PHOTO: FLICKR CREATIVE COMMONS / SHARON HAHN DARLIN

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contributors WAYNE C. ROWLAND Wayne is President of the EBRHA Board of Directors and President of the California Rental Housing Association. He is an avid representative of EBRHA issues in the community. He purchased his first property a year out of college and has over 30 years of real estate investment experience. He is a graduate of San Francisco State University with a degree in finance.

LIZ HART Liz Hart has provided expertise to property owners for over 20 years. She offers consulting services on rent control and property management matters to Bay Area property owners. She is a passionate advocate for property owners in rent controlled communities and is always eager to discuss unique issues they face.

HOLLY NEBER As President of AEI Consultants, Holly is responsible for the day-to-day operations of AEI, building on the company’s reputation for responsiveness and quality consulting to further grow the company and its relationships with both clients and industry partners. Holly has worked in environmental consulting since 1996, serving with AEI since 1999.

ELIZABETH SWIFT Elizabeth began her commercial real estate career as a commercial real estate mortgage broker/investment salesperson in 1995 in Washington, D.C., where she was also a member of CREW. In 1999, she moved west and eventually landed in the Bay Area in 2006. She is currently a commercial real estate lender with F&M Bank.

TRACY THOMPSON Tracy Thompson is a financial services professional with broad experience spanning over 15 years, including Branch Management, Small Business Division Management, and Commercial Relationship Management. Currently, Tracy is a Sr. Relationship Manger for Bank of San Francisco focused on developing business relationship opportunities in the Bay Area.

ANNE BRUFF Anne Bruff has been a Commercial Real Estate Broker for over 30 years and has been president of her own firm, Anne Bruff & Associates, since 2005. Anne’s clients include investors, developers and business owners. Anne’s goal for her clients is to build wealth through real estate.

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TRASH & RECYCLING RATES GOING UP AGAIN! A year after hitting the owners of 5+ units with trash and recycling fee increases of as much as 500%, the City of Oakland has agreed to ANOTHER hike that will PUNISH property owners even more!

• Trash and compost rates – increasing more than 7% • Curbside recycling rates – increasing nearly 20%, from $9.20 to $10.99 • Push/pull fees – increasing 5% • StopWaste Benchmark fee increasing • Contamination fees – now $25-$50 per occurrence ENOUGH IS ENOUGH! City officials approved these outrageous increases, proving once again that they don’t care about the rights of property owners!

Before signing this unfair deal more than a year ago, city officials promised property owners that rate increases under the new contract would not exceed 40%. Instead, more than two-thirds of EBRHA members surveyed saw hikes of 40-100%, and a third saw increases of 101-525%!

EBRHA has been attempting to engage with Oakland Mayor Libby Schaaf and council members about these unfair rate hikes and new push/pull fees for more than a year, but we have gotten no response. Now the city is proposing RAP fee hikes, an expanded rent control ordinance and extending the moratorium!

ENOUGH IS ENOUGH! Call and email the mayor and city council members and demand a faceto-face meeting to explain these punishing fee increases! Join EBRHA’s political advocacy team to protect your property rights!

ENOUGH IS ENOUGH! See new rates here

Trash, Compost & Recycling Rates Effective July 1, 2016 Helping You Comply With The Compost And Recycling Mandate Rates include these services at no additional cost: • Unlimited compost and recycling services to help you comply with mandatory compost and recycling laws • Bulky pickup services for apartments and condos Call Waste Management of Alameda County, Inc. at (510) 613-8710 to order compost service and schedule bulky pickup appointments.

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You will be billed an additional $0.59 - $1.83 per month for the StopWaste Benchmark fee. Complete details at StopWaste.org/Benchmark.

Rates include trash, unlimited compost and recycling collection weekly plus on-call bulky pickup service at no additional charge. Call Waste Management of Alameda County, Inc. at (510) 613-8710 to schedule your bulky pickup service or request a waiver to allow your residents to schedule.

Annual rate adjustments are calculated per the terms of City-approved contracts with Waste Management of Alameda County, Inc. and California Waste Solutions.

COLUMN

title newshere EBRHA Members Share Concerns with Oakland Council President Lynette McElhaney Council President Lynette GibsonMcElhaney met with EBRHA members

Oakland Rental Property Owners Come Out In Force of any size building in Oakland, you should be aware of the drastic changes being proposed and considered by Oakland council and the mayor. At May’s CEDA meeting, council did not and could not make a decision on the proposed rentersupport group ballot initiative. The item was scheduled as an informational report only (not an action item), and the committee did not have a quorum, due to Council President McElhaney’s absence. At the conclusion of the meeting, council decided to 1) request legal analysis of the initiative at the June 7 council meeting and 2) present the analysis to council at the June 21 meeting.

As usual, nothing is set in stone until agendas are made public, and as we know, even then things change. From a representation standpoint, this meeting was a wonderful display of a wide range of property owners in Oakland, with more than 20 owners speaking at the dias. What is on the line: changes that will further strip the ability to manage and own rental property. Both the mayor and some city council members support changes to the current rent ordinance that are aimed specifically at property owners who live on site in 2 and 3-unit buildings. Council just may present their own version of a proposed new rent ordinance that will remove 2 and 3-unit owner occupied exemptions, mandate all increases above CPI (including capital improvements) be pre-petitioned, institute a rental registry of your property and increase the RAP fee. Your continued calls, emails and presence at committee and council meetings are needed in June. Please go to www. ebrha.com/events to see the upcoming meeting schedules and get involved.

AS A RENTAL PROPERTY OWNER

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at our office in May concerning all the proposed changes to the rent ordinance.

The meeting went on for nearly two hours and rental property owners were honest in their frustrations and burdens as Oakland stakeholders. Council President McElhaney made it clear that rental property owners—especially owners of smaller buildings—need to show up to meetings, call or email to have their story be heard. She said that renter-support groups are dominating and making a stronger case for why changes are needed. If you could not attend the forum, share your concerns with Council President McElhaney over the phone or via email at (510) 238-7003 or lmcelhaney@oaklandnet.com

Berkeley Rental Housing Coalition Places Measure on the November Ballot An Update From the Berkeley Rental Housing Coalition: On March

29, the Berkeley Rental Housing Coalition announced its intention to collect signatures to place a measure on this year’s ballot. On May 16, the Coalition submitted more than enough validated signatures to qualify for the ballot. The History: Since 2012, the City Councilmembers (guided by external supporters of the Rent Board) have been considering an increase in the Business License Tax (what you pay annually on your gross receipts) from its current 1.018% to a possible 3.88%. That’s a 288% increase and one that would be carried solely on the backs of the Coalition’s rentcontrolled members. Recognizing that many rental property owners are already doing their part to contribute to housing affordability by renting units at an average of 42% below market rate, the Coalition knew it had to enact a more fair and equitable tax measure. The Future: After

C O L D W E L L B A N K E R much research and strategic thought, the Coalition filed papers to raise the business license tax for all providers of rental housing currently being taxed, from 1.018% to 1.5%. The higher rate would bring in at least $5 million a year available for affordable housing programs.

The Berkeley Rental Housing Coalition recognizes the critical crunch around housing affordability and supports the need for more resources to preserve and build additional affordable housing. The Coalition feels the fairest way to accomplish that is the across-the-board increase to 1.5% instead of almost 4%. For more information, go to www.thebrhc.org.

Let the Countdown Begin: the NAA Education Conference & Exposition is Just Around the Corner!

The 2016 NAA Education Conference & Exposition is just around the

corner, taking place June 15-18 at San Francisco’s Moscone Convention Center.

That means more than 9,200 apartment housing industry professionals will soon arrive in San Francisco for four days of powerful education sessions and unparalleled networking opportunities. Among the featured speakers at this year’s event are legendary Super Bowl Champion and Emmy-nominated Fox NFL Sunday analyst Michael Strahan, and Chip and Joanna Gaines of HGTV’s Fixer Upper.

But that’s not all! The NAA Exposition awaits, with more than 450 suppliers showcasing new products and services along with a ton of fun, interactive areas for you to enjoy. Here is what you can expect at the NAA Exposition: Attendee Lounges—Connect with colleagues, prepare for a meeting or enjoy some friendly competition with life-sized Jenga, Connect 4 and Plinko; Interactive Art Wall— Add your own stroke of genius on two large attendee-created murals; Relaxation Massage Station—Put your feet up, relax and get a free massage; Oxygen Bar— Discover the latest trend in relaxation therapy; and much more! To experience everything at the 2016 NAA Conference & Exposition, go to educonf.naahq.org today to get registered. RH

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COLUMN

president’s message

taking full advantage of the wide availability of data to set housing policy. Some continue to set housing policy based upon the old fashioned approach...“the roar of the crowd.” Go to a city council meeting in any city using this approach and no further explanation is necessary.

Many of you have expressed frustration that individual council members have not been receptive to your efforts to engage them in face to face meetings regarding their support of what you feel are counterproductive housing policy proposals. That they have been dismissive EBRHA releases analysis to counter the numbers and unwilling to listen to the facts you presented by Council to pass unfair housing bring to the table.

On page 10 in this month’s issue of policies. BY WAYNE ROWLAND Rental Housing, we’ve included a recent the solution to the crisis. According to press release by the East Bay Rental its proponents, provisions of Measure Housing Association that addressed that EE, requiring a “just cause” to terminate frustration and outlined our concern that notwithstanding the wide availability of tenancies, would put an end to such housing data, Oakland’s City Council evictions. In the election of that year has been on a tear in the past year setting Measure EE was narrowly passed by the costly and punitive housing policy based voters, 50.8% to 49.2%. upon claims that are easily debunked by Back then, although many rental readily available data. The undeniably owners disagreed with the premise that inaccurate claim that 1,100 of our fellow long standing tenancies were being citizens are being evicted each month, terminated for no reason other than to for example, falls into this category. It is allow rental owners to raise rents for being used as the basis for policy proposnew tenancies, there was scant availabilals that would needlessly impose greater ity of data to prove the point one way bureaucratic burdens and costs on an or the other. Voters were left to heavily already overburdened housing market. weigh anecdotal evidence…mostly creThe press release is but one of many ated by renter support groups. ental housing owners who communications that will come from our These days, unlike before, real data participate in public discourse at regarding housing activity is widely association and others in the upcoming Oakland City Council meetings months to speak directly to the public available. A healthy percentage of it is have long been accustomed to hyperregarding housing policy. In an election available online and a vast swath of bole and political theater on the part year we think it’s important for voters in the public is taking full advantage of its of renter support groups as their way the various districts to know how their accessibility. It is being used by renters, of drawing the Council’s attention to council member, Mayor or other reprehomeowners and investors to determine housing issues that concern them. Their the price and availability sentative is performing standard practice has been to single out “In an election of housing. It is being and what their policy a particular unsettling housing statisyear we think it’s used by businesses such proposals mean to the tic, use that statistic to represent the important for voters as Lowes, Home Depot, health of Oakland’s existence of a housing crisis and then in the various Walmart and others to housing market. RH fashion a complete political campaign districts to know decide, among other around solving that crisis. Such was the how their council things, where to locate Wayne C. Rowland is the President of EBRHA and case in 2002, when renter groups drew member, Mayor or and what products to and is an avid the attention of the council and the other representative CalRHA, carry. It is being used by representative of issues public with their assertion that rental is performing and state and local governin the community. He has over 30 years of real estate owners were using no-cause evictions what their policy ments as a resource in investment experience. He is to remove low-rent paying renters from proposals mean their efforts to set sound a graduate of San Frantheir apartments so that they could to the health of housing policy. cisco State University with a degree in finance. He can be rent the same units at higher rents to Oakland’s housing Unfortunately not all reached at 510-339-7152 or others. They fashioned Measure EE as market.” government entities are wayne.rowland@yahoo.com.

The Importance of Datadriven Decision Making

R

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RENTAL HOUSING 9

COLUMN

breaking news

ers, many of whom own fewer than five units and are struggling under the weight of city regulations, despite clear evidence that City Council and renter advocates are misleading the public,” said Jill Broadhurst, executive director of the East Bay Rental Housing Association, which commissioned the in-house rent survey of its members. “Mom-and-pop rental property owners support their city and contribute in many ways to the community. Our city leaders should recognize the concerns of these small business property owners before imposing unfair new housFacts show fewer evictions, lower average rent ing regulations.”

The online survey of Oakland rentthan numbers cited by renter groups. BY EBRHA control apartment owners, conducted over a two-week period in April, found housing data vastly different than that being pushed by renter-support groups.

Among the findings: The average 2-bedroom/1 bath apartment owned by those surveyed is renting for $1,408 a month, not the $2,900 a month cited to justify the recent rent moratorium. “The surveys cited in the media look at asking rents on vacant units, not actual rents. Most of the 60,000 rent-controlled units in the city rarely if ever come on the market and are not included in the media reports,” Broadhurst said.

36 percent of renters stay in the same n Number of Evictions n Nonprofit Housing Evictions Source: Contemporary Information Corp. rent-controlled unit for more than six years, with 16 percent renting for 10 akland officials are using misRental Housing Association found the years or more. Some renters have been leading and unsupported data number of court-approved evictions in in the same rent-controlled unit for more about rent increases and ignor- the city actually decreased since 2009. than 40 years. “This shows that renting new information on court-approved In 2015, the EBRHA analysis found controlled units come on the market eviction rates to justify new housing 3,209 court-approved evictions in Oakmuch less than market-rate apartments, rules designed to further punish rental land, a 43 percent drop since 2009. and that rent control only adds to the property owners in the city, according In a subsequent analysis, Oakland scarcity of available housing in Oakland,” to a survey of rent-controlled property city staff reported the Broadhurst noted.

“Mom-and-pop owners and multiple analyses of evicnumber of sheriff-needed 95 percent of vacanrental property tion data. evictions in the city cies are voluntary moves owners support their related to new jobs, The survey of the owners of nearly in 2015 to be 1,296 – city and contribute 2,200 rent-controlled units in the city another indication that retirement, purchase of in many ways to found average rents cited by city offithe numbers are being a home, marriage, etc. the community. cials to justify the recent moratorium vastly overstated by Only two percent are Our city leaders were overstated by 100 percent. renter-support groups eviction-related for nonshould recognize In addition, a separate analysis of to justify draconian payment of rent, with the concerns of actual data from Alameda Superior measures against rental the remainder related to these small business Court found the 12,000 to 13,000 property owners. renovations. property owners yearly court-approved evictions cited by “The city administraBroadhurst noted before imposing renter-support groups to be overstated tion continues to ignore that the recent moratounfair new housing by more than 300 percent. In fact, the the rights of small busirium on rent increases analysis commissioned by the East Bay ness rental property own- regulations.” imposed by City Council

Oakland Council Using Misleading Information Against Rental Owners

O

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EBRHA MEMBER APPRECIATION: only impacted units already under rentcontrol, which are currently limited to rent increases of 1.7 percent a year. The moratorium also eliminated the rentcontrol exemption on owner-occupied properties of 2-3 units, unjustifiably punishing small mom-and-pop property owners simply to satisfy renter-activist groups.

The city staff report was part of a review of a ballot initiative proposed by renter-support groups that would significantly increase the fees imposed on rental property owners while further restricting their ownership rights. The staff report estimated the ballot measure would increase city costs by $24 million over the first few years while doing nothing to improve the housing shortage. Nonetheless, City Council is widely expected to ignore the staff’s findings and pursue many of the changes recommended by renter-support groups, either through the initiative process or separate legislation.

The EBRHA eviction analysis also found nearly 20 percent of the total court-approved evictions in the city last year were from rental units owned or managed by non-profit housing organizations, such as the Oakland Housing Authority, the East Bay Asian Local Development Corporation, Oakland Affordable Housing Preservation Initiative, Operation Dignity, the John Stewart Company and others. This further dispels the myth promulgated by renter-support groups that evictions are being carried out by “greedy” private property owners out to line their own pockets.

“Non-profit agencies aren’t even under rent control restrictions yet they face some of the same realities as private property owners – how to manage rental units in a city overburdened with government regulations,” said Broadhurst. “City Council needs to understand the realities of the current housing market and not make public policy based on misinformation from renter-support groups. Private property owners intend to fight this onesided campaign and stand up for their rights.” RH

BASEBALL NIGHT OAKLAND A’S vs. SAN FRANCISCO GIANTS

FREE TICKETS & FREE FOOD! EBRHA members can now reserve tickets for EBRHA’s annual Member Appreciation Night.

Your reservation includes two complimentary tickets to the A’s vs. Giants game, starting with a private parking lot tailgate party at the Coliseum, featuring a taco and quesadilla buffet, margaritas and dessert.

DATE

TIME

TAILGATE GAME

THURSDAY, JUNE 30, 2016 TAILGATE - 5:00 PM GAME – 7:00 PM OAKLAND COLISEUM PARKING “LOT K” OAKLAND COLISEUM

Deposit of $22 per ticket is refunded upon arrival at tailgate.

EBRHA members can reserve a maximum of two tickets. Seating is limited!

Reserve tickets today. Send your deposit to: EBRHA, Attention: Game Night, 3664 Grand Ave., Suite B, Oakland, CA 94610

SPONSORED BY

The preceding press release was published on May 17, 2016, and is based on an analysis by the East Bay Rental Housing Association. For more information, please email news@ebrha.com. ebrha.com

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RENTAL HOUSING 11

MEMBER SPOTLIGHT

Meet Local Hou

“Our given skill sets and unique life experiences have allowed us to provide housing with a personal touch—a liberty that inspires me and which I treasure.”

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using Providers M

ost people don’t realize that private rental property owners provide cities like Oakland with its largest segment of safe, clean and affordable rental housing—the majority are mom-and-pop owners with fewer than five units. As you will read in these EBRHA member profiles, they are engaged, positive, compassionate community members and long-time Bay Area residents who treat renters with respect. Collectively, they represent the city’s longest term, most stable taxpayers, willing to invest their life-savings in our neighborhoods. Meet them here.

Vuong, housing provider for 30 years HOW MANY UNITS DO YOU OWN? 10 WHAT DO YOU LIKE MOST ABOUT OWNING PROPERTY IN OAKLAND? Its diversity. I arrived

in the United States as an 18-year-old foreign exchange student in the fall of 1970. Although it was hard to leave my homeland of Vietnam, I can never underestimate how lucky I was to escape war and strife for a fruitful American education. The corruption and classism that I witnessed from Communist Vietnam has always driven me to strive for balance, stability, and service within my community. When entering the US, I had a choice to accept a scholarship to Louisiana State University in Agricultural Engineering, but instead I declined the scholarship to pursue my Bachelor’s degree in Mechanical Engineering at San Francisco State University. It was there in San Francisco where I married my husband of over 40 years, graduated with my Bachelor’s, and mothered my only son. My husband, Truc, is a licensed architect and together, we have always enjoyed the craft of building and renovating living spaces for the community that we are a part of. In 1992, we entered the real estate business and have since found much success combining our expertise to the projects at hand and providing residential services to our communities that we hold dear to our hearts. Our given skill sets and unique life experiences have allowed us to provide housing with a personal touch—a liberty that inspires me and which I treasure.

HOW WOULD YOU DESCRIBE YOUR RELATIONSHIP WITH YOUR RENTERS? Excellent WHAT CONCERNS YOU MOST ABOUT THE RENTER-PROPOSED INITIATIVES BEING CONSIDERED IN OAKLAND? The expenses. I love my new country for the freedom that we have. However,

with rent control, Measure EE and all restrictions imposing on rental property owners, I feel like we are simulating the Communist policies of developing countries, punishing the people who work so hard to provide housing needs to the community.

WHAT IS THE MOST DIFFICULT PART ABOUT BEING A PROPERTY OWNER IN THE CITY? Maintaining

a good environment for the neighbors and dealing with unfair ordinances. Expenses are up but incomes are limited.

ANY OTHER COMMENTS? Are we living in a free or biased country? RH

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MEMBER SPOTLIGHT

Meet Local Hou “Oakland rental housing proposals are inflicting pain and causing the ruin of small business owners who provide residential housing and who have been fair and care about their renters and who have been a significant piece in the tapestry of our beautiful city of Oakland.

Contributions to the financial needs of our city should be borne by a larger pool of property owners — too many of the large property owners and newer buildings built after a certain cutoff year are exempt from these debilitating measures. Let’s spread the responsibility of creating a better Oakland to a much larger pool.”

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using Providers Karen, housing provider since 1979 HOW MANY UNITS DO YOU OWN? 4 OWNER/OCCUPIED? Yes WHAT DO YOU LIKE MOST ABOUT OWNING PROPERTY IN OAKLAND? I like the diversity

in Oakland neighborhoods. It is wonderful and fulfilling to know that I have been able to offer a desirable place to call home for the many residents over the years who enjoy living together in a diverse community.

HOW WOULD YOU DESCRIBE YOUR RELATIONSHIP WITH YOUR RENTERS? Very good.

Communication is the key.

WHAT CONCERNS YOU MOST ABOUT THE RENTER-PROPOSED INITIATIVES BEING CONSIDERED IN OAKLAND? The initiatives

are stifling and are crafted in such a way that caring and fair property owners are being penalized and driven away from our homes and our small businesses. In this case, we have provided a tremendously important component of life—a great place to call home.

WHAT IS THE MOST DIFFICULT PART ABOUT BEING A PROPERTY OWNER IN THE CITY?

The current restrictions of rent control are so unfair to small business property owners who have been fair with their renters. When rent control was first introduced many years ago, I felt the percentage increases allowed were fair and reasonable and I had no need to give a rent increase every year. Banking was a good

idea and with the moderate restrictions it was workable. The fee to the Rent Arbitration Board of $30 a unit is affordable and painless!

Proposals to increase this fee could be the final straw along with the skyrocketing garbage and recycling rate increases (I feel like I’ve been blindsided with this one), higher water rates (after we do an excellent job again of lowering our water usage), and higher fees for gas to heat our homes. All of these increased costs are sending many of us small business owners over the edge and will make us extinct!

ANY OTHER COMMENTS? Oakland rental

housing proposals are inflicting pain and causing the ruin of small business owners who provide residential housing, who have been fair and care about their renters. These small business owners have been a significant piece in the tapestry of our beautiful city of Oakland.

Contributions to the financial needs of our city should be borne by a larger pool of property owners—too many of the large property owners and newer buildings built after a certain cutoff year are exempt from these debilitating measures. Let’s spread the responsibility of creating a better Oakland to a much larger pool. Let’s stop bickering over the same small piece of pie.

Oakland can and should be a maverick—stop sucking the life out of the goose that lays the golden eggs, the small property business owners. Meet the challenge. Be a maverick. See to it that more affordable housing is built in every neighborhood in Oakland. RH

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COLUMN

market outlook

Mixed Results in 2016’s First Quarter Some East Bay cities post high numbers, while others dropped dramatically. BY GRANT CHAPPELL

C

ompetition in the East Bay market has exploded in both the residential and commercial market over the last couple years. With investors and tenants priced out of San Francisco, the East Bay has become more sought after as “The Next Brooklyn.” This has become one of the most politically tense environments in recent times for rental property owners. One would think with a solid local economy, there would be more incentives to bring in new housing developments, given the lag in construction during the recession that would help ease housing costs.

Instead we are facing higher fees and more regulations.

The East Bay is also experiencing one of the biggest shifts in housing policy since the early years of rent control. If your city doesn’t have it, be prepared— it’s politically easy to push through.

All three cities covered in NAI’s data— Alameda, Oakland and Berkeley—now have rent control, and it looks like Richmond could pass it in November.

Berkeley is proposing nearly tripling the Business Tax. Does anyone doubt that Oakland won’t try a similar measure down the road if Berkeley is successful?

Oakland 90-day Moratorium The City Council held a session in April to pass an emergency 90-day moratorium on rent increases. I was in attendance to speak, along with many other EBRHA members. It was refreshing to hear commentary from both sides of the table on the realities of housing, from 16 RENTAL HOUSING

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and hiring forecasts in the sector.

The median price for a home in all nine Bay Area counties increased for the 48th straight month, but only by 1.4%, the smallest increase in that period. In San Francisco, active condo listings at $1.5 million are up 40% compared to a year ago, yet only 55% are selling over asking, a 59% drop from a year ago, according to a report from Paragon Real Estate Group. Additionally, many projects in the pipeline will be coming to market The Business Times continue to report on more projects with permits getting pulled in Oakland, including a 33-story, 254-unit high-rise tower, the first new high-rise in more than eight years. Local observers speculate that builders are rushing to pull permits before the September 1 deadline when permit fees are scheduled to increase. Construction has started on 3093 Broadway, a 423-unit development located next to the new Sprouts Grocery Store that is expected to be open to residents in 2018.

I find myself talking to more 1031 buyers who are “just going to pay the capital gains taxes” because “the market is too crazy.” While rents are still strong, it feels like we hit a peak sometime late last year, whether on number of inquiries on a vacancy or trying to achieve and maintain rents from last year. Similarly, while many of NAI Northern California’s property sales are still achieving close to or above the asking prices, we don’t see the deluge of inquiries we saw in the last couple years.

an ownership and tenant standpoint.

However, the temporary ordinance passed in the wee hours of the morning and the final version of the new law has since been unveiled. To read more about the Oakland moratorium, go to www. ebrha.com/oakland-moratorium-onrent-increases.

In a recent survey by the Bay Area Council, more than a third of Bay Area residents say they are planning to leave.

Their three top reasons: high housing costs, bad traffic and commute times, and high cost of living. In another survey by Apartment List, 76% of respondents say they’ve given up on idea of ever owning a home in the Bay Area.

Even with continual record-low interest rates, it’s not surprising to see these survey results given how high prices are on single-family and multi-unit properRates & Lending ties and the low inventory of properties Thirty-year rates on mortgages for 1 to 4 for sale. unit properties are lower than they were Several weeks ago, many news stories for most of 2015. At their April meethinted at a peak or slowdown in parts ing, the Federal Reserve left interest rates of the tech world and San Francisco resunchanged again. This idential and commercial “In a recent survey should not be a surprise real estate. According to to many as we’re in Savills Studley, more than by the Bay Area Council, more than an election year with 1.7 million square feet of a third of Bay Area consistent mixed—often available sub-lease space negative—news on the was available at year end, residents say they are planning to economy. Given the showing that larger comleave. Their three turbulence caused by panies with unoccupied top reasons: high mere discussions about office space under lease housing costs, bad raising short term rates are willing to let it go in traffic and commute in the past, it’s hard to moderate increments to times, and high cost envision another raise smaller companies. This of more than a quarter may hint at lower growth of living.”

MAISEL PROPERTY MANAGEMENT, Inc. point this year.

According to Nils Ratnathicam of the Rincon Group, “The multifamily lending market is robust and rates are as low as they’ve ever been. While some larger lenders seem to have pulled back since last year, there are multiple new lenders in 2016 that are more than willing to fill the void. Interest only and non-recourse loans are very much available. Combine this with lenders more willing to aggressively underwrite low cap rate investments and you end up with a lending market in a very investor friendly mode right now.”

Not surprisingly, the first quarter was mixed with results on 5-plus-unit buildings versus 2 – 4-unit building sales. Oakland and Berkeley performed exceptionally well on 5+ unit building sales, where all other segments dropped dramatically in activity. I anticipated a bad quarter as the financial markets were a mess starting the year, most notably oil reaching lows not seen since the recession. However, financial turmoil can also push down mortgage rates as more investors buy U.S. Treasuries instead of equities.

2 – 4 Units Oakland remained flat with 76 deals selling for $605,000 compared to 70 at $558,000 a year ago. Compared to Q3 2015, this represents a nearly 50% drop in activity when 157 properties sold for $608,000 average. Berkeley posted nine sales for an average of $1.178 million dollars, the highest average sales price we’ve ever seen. This equates to an almost 70% drop in activity compared to Q3 2015. Alameda performed poorly as well, with three properties selling for $850,000, the lowest number of transactions we have on record in our data.

5+ Units As I alluded earlier, Oakland and Berkeley posted exceptional numbers on the larger properties. Oakland posted $89.9 million in volume, the second highest ever that was set in the previous quarter with $108 million in volume. I excluded three transactions that involved nonprofit and affordable housing tax credit properties from the list, as they are not as applicable to the trends we look for in market

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transactions (2-4 units)

average sales price (2-4 units)

Source: NAI Northern California

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total volume (5+ units)

price per sq. foot (5+ units)

price per unit (5+ units)

Source: NAI Northern California 18 RENTAL HOUSING

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rate and rent-controlled properties. Still, at $206 per square foot and $160,000 per unit, the metrics are in line with what we’ve seen over the last year.

Berkeley posted an exceptional first quarter, with $18.6 million dollars in volume at an average of $360 per square foot and $252,000 per unit. Both the price per square foot and price per unit values set records in Berkeley. Despite rent control, mandatory soft-story compliance and other costly ordinances, Berkeley remains a desirable place to invest given the university renter base and proximity to three BART stations for commuters.

Finally, Alameda posted a slower quarter with two sales totaling $4.18 million in volume. At $337 per square foot and $275,000 per unit, the metrics are record setting for Alameda. Despite rent control, Alameda still remains a sought after destination, as rental rates are strong and overall quality of life is good.

Conclusion Sluggish activity throughout the year is to be expected, as sellers’ pricing expectations remain high, given low level of property inventory and expectation of steady, but strong rents throughout the year. More 1031 buyers may end up paying the capital gains taxes rather than stretching for a low cap rate deal.

Political risk will be a factor and may lead to higher property inventory due to seller fatigue from dealing with higher operating costs and new city compliance costs. Even with some new construction in Oakland, Berkeley and nearby submarkets, demand from tenants will still keep rents buoyant. Commercial space is competitive in the East Bay and that should bring more jobs to our side of the Bay. Unless we see a major correction in the tech industry, 2016 should be a favorable year for property owners, not so much for add-value buyers. RH

Grant Chappell is the Senior Vice President of NAI Northern California. After graduating from California Polytechnic State University in San Luis Obispo in 2003 with a degree in Business Administration and a minor in Spanish, Grant has worked exclusively in Real Estate. He can be reached at grant@nainorcal.com or 510-3364721.

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COLUMN FEATURE

title here

Complying With Alameda’s Rent Laws Critical information to help you navigate Alameda’s new rent ordinance. BY LIZ HART

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PHOTO: FLICKR CREATIVE COMMONS / CRAIG HOWELL

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elcome to the Bay Area where we like to adopt short sighted, regulatory schemes that penalize some and placate many while failing to address or remedy the larger issue. Next up: The City of Alameda.

In response to strenuous tenants and tenuous anecdotes, on March 31, 2016 the City of Alameda adopted a new law called “The City of Alameda Rent Review, Rent Stabilization and Limitations on Evictions Ordinance.”

To whom does it apply? What does it cover? What do you need to know to be in compliance? This article will focus on the elements of the Ordinance that regulate rent; a future article will address the Ordinance’s eviction controls.

Of foremost importance to owners of Alameda properties, this Ordinance is still being developed.

City of Alameda staffers are still drafting the various forms and Rules and Regulations, so this article is not comprehensive. In fact, by the time this article is published, the rules may have changed. For instance, unlike the cities of San Francisco, Oakland and Berkeley, currently there is no fee charged to owners for the administration of the Ordinance but that will surely change. So those individuals who have rental property in Alameda must stay informed.

The City of Alameda frequently offers free workshops and Owners are advised to attend at least one.

The City has also set up a website (www.alamedarentprogram.org) which provides downloadable sample and required forms in PDF format, as well as copies of the Ordinance, informational guides and even a flow chart. Given the Ordinance’s provisions, the flow chart is a very useful guide.

The Basics

Much like rent control in other communities, Alameda’s Ordinance does not apply to commercial properties; hotels, motels & boarding houses where the tenants stays less than 30 days; hospitals, convalescent homes & dorms; rental properties where the property is rented for less than 30 days, and properties whose rents are subsidized like Section 8 (which is known as the Housing Choice program in Alameda).

So what rental units are covered under the Ordinance? Essentially any multifamily properties (duplexes on up) that were built prior to 1995 fall fully under the Ordinance and all of its provisions.

Single-family homes, condominiums and properties built after February 1, 1995 and other rental units exempted under the State of California Costa Hawkins Rental Housing Act, are partially exempt.

Interestingly, single-family homes that have a “City approved Second Unit” are still considered to be single family homes and therefore are also partially exempt.

The Ordinance establishes regulations governing rent increases, lease provision and notice requirements for existing and prospective tenants about the existence of the new Ordinance. It mandates a review process for rent increases higher than 5%, relocation assistance for tenants in a variety of situations and prohibits some lease terminations. It also requires Owners to file documents with the Program Administrator if they increase the rent more than 5%, provide relocation assistance to the tenant, or terminate a tenancy for certain reasons such as Owner Move-In and Ellis Act. While the Ordinance does allow terminating a tenancy for “No Cause”, it punishes the owner for doing so by requiring relocation assistance be paid to the outgoing tenant, the rent for the incoming tenant be raised by no more than 5% of the preceding tenancy, and constrains owners in how often they may use this “No Cause” termination. It requires the Owner to notice the incoming tenant and the Program Administrator of the rent the outgoing tenant was paying and the rent the new tenant will pay and it sets up a mandated repayment scheme (with interest!) to the present tenant if the Owner has charged a rent more than 5% higher than the previous tenant’s rent. And that’s not all, folks! It also provides for fines, civil remedies and misdemeanor charges.

New Noticing Requirements

Owners of all rental properties are now required to provide a number of notices to their present and prospective tenants. Both present and prospective tenants must be provided a notice informing them (1) the unit is subject to the new Ordinance, (2) a copy of the Ordinance, (3) a copy of the Rules and Regulations for the new Ordinance, and (4) a copy of the City’s current informational brochure. Alameda has not yet published the Brochure or the Rules but the City has a sample (RP-08) that Owners can use for the moment.

This initial notice of the existence of the Ordinance can be provided by email and may provide the Internet link where the Tenants can find the Ordinance: http://www.alamedarentprogram.org/ordinance3148-overview/ but the Owner will have to provide an actual hardcopy of the Ordinance if the tenant does not have reasonable access to the Internet. It’s important to document that the notice has been provided so Owners may want to consider adding the text to their Applications to Rent for prospective tenants, as an addendum to their rental agreements for future tenants, and serving a copy of the notice, with Proof of Service documentation, on their current tenants.

Owners must also serve a notice when raising the rent. A rent increase of 5% or lower must be served with form RP-02 but rent increases greater than 5% ebrha.com

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differently.

While the City of Alameda has had a Rent Review Advisory Committee in place since 1979, the new Ordinance grants it more power and greater review over an Owner’s rent increases. The committee’s five members are nominated by the Mayor, confirmed by the City Council, and meet once a month.

For properties that are exempted under Costa Hawkins or for rent increases that are less than 5%, the Committee’s decision is not binding. But the Owner’s participation is mandatory.

Failing to appear will mean the Rent Increase is voided, may not be re-served on the tenant and the Owner loses the right to serve another rent increase for 12 months.

At every meeting, the Committee will attempt to mediate between the tenant and the Owner. If an agreement is reached, both the tenant and the Owner must sign an agreement (provided by the City) stating as much. If the Owner and the tenant come to some agreement before the meeting, they must both sign a two-page form called an RP-05 form that acknowledges the Agreement and relinquishes all claims to challenge the rent increase. The RP-05 must be provided to the Program Administrator at least two days before the Committee meets.

For rent increases of 5% or less that are served with RP-02 form, if the tenant does not complain within 15 days of being served with the notice, the rent increase is binding. If the tenant does complain and requests a review by the Committee, but the Rent Increase takes effect before the Committee meets, unless the tenant and Owner agree, the tenant must pay the increased rent. At the meeting, the Committee will attempt to negotiate between the parties but its decision is not binding on the Owner.

The tenant may still file an Appeal with the Program Administrator requesting the City Council review the decision but the City Council’s review is also non-binding and has no impact on the effective day of the rent increase.

“New rent regulations carry a sharp learning curve, so it’s important to attend seminars on Alameda’s new laws.” require the forms RP-03 and RP-04. RP-03 informs the tenant of the Rent Review Advisory committee and their rights under the Ordinance and RP-04 notifies the Rent Review Advisory Committee of the Rent Increase and requests a review. RP-04 is five pages and must be provided to the Program Administrator with a copy of the Rent Increase itself within 15 days of the tenant being served the Rent Increase. Failing to serve the correct notice voids the rent increase. Owners may remedy this by reserving the rent increase with the correct notice. Be advised: a tenant may use the Owner’s failure to provide the correct notice as a defense in a non-payment of rent eviction action.

All notices required in the Ordinance that inform the tenant about the rent review process must be in writing and must include the Owner’s name, address, phone number and email address.

Lease Provision

All Owners must now offer a one year lease to all prospective tenants. They must also offer a one year lease of similar material terms to any current tenant whenever they first raise the rent after March 31, 2016—the effective date of the new Ordinance.

If the tenant refuses, the Owner does not have to offer again.

However, if the tenant is in default of the rental agreement or the tenant has already been served a Notice to Terminate, the Owner is released from this provision.

When renewing or providing a new lease, the various housing services that are included in the agreement, e.g. laundry services, parking space, etc., may be unbundled and separately billed however the total amount of those new charges shall be considered a rent increase and fall under the new provisions governing rent increases. The one exception to this is for utility charges. It is not considered a rent increases if the Owner bills for utilities that are separately metered or shared pro-rata among the tenants.

Another exclusion from what may be considered a rent increase is if the tenant requests new or additional housing services which were not a part of the original rental agreement, e.g. access to a storage space, an extra parking space or a second pet. The charge for additional services is not considered when determining the “Maximum Increase.”

The Rent Review Process

This brings us to the rent review process and what a “Maximum Increase” is. The Ordinance defines “Maximum Increase” as “a rent increase that on a cumulative basis over the 12 months preceding the effective date of a proposed rent increase is more than 5%”. For simplicity’s sake, this article will refer to increases of 5% or less and increases of more than 5%. The City’s Rent Review Process handles those two types of increases 26 RENTAL HOUSING

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Preparing a Petition

For rent increases that are more than 5%, the Owner must serve the increase with the required RP-04 and RP-05 forms (discussed earlier in this article) and the Committee’s decision is binding unless the Owner (or the tenant) files a petition within 15 days requesting a further review by a Rent Dispute Hearing Officer. Whoever initiates the petition is responsible for notifying the other parties in writing and providing a copy of the rent increase with the completed petition to the program administrator. Per the Ordinance, the Hearing Officer will make all efforts to schedule the hearing within 30 days of the filing of the petition. Furthermore if a petition is filed, the Rent Increase does not take effect until 60 days after the Hearing Officer’s decision or if the Hearing Officer’s decision is judicially challenged, after the court has made its determination.

This petition process is an entirely new process in the City of Alameda and the decision is binding barring judicial review.

Both the tenant and the Owner may offer documents, bring witnesses and provide testimony. All hearings will have a court reporter for the purposes of judicial review.

To determine if the disputed rent increase is reasonable,

the Hearing Officer is charged with taking into account the purpose of the Ordinance: eliminating the imposition of excessive rent increases while providing the Owner a just and reasonable return on property. More importantly, in determining a just and reasonable return on property, the Hearing Officer shall presume, unless contradicted by evidence, that the property’s Net Operating Income, as adjusted for inflation over time, is providing the Owner with a just and reasonable rate of return on the property. Other factors the Hearing Officer may take into account include the existing market value of rents, the vacancy rate in the property, the physical condition of the property, and the quality and quantity of maintenance and repairs to the unit or the property as a whole.

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Summary

In sum, appeals are A-OK, petitions are problematic, be prepared to participate and negotiate, and most important, keep your annual rent increases below 5% if possible. New rent regulations carry a sharp learning curve, so it’s important to attend seminars on Alameda’s new laws. And, hiring an experienced professional to handle at least the initial notice requirements would be a smart first step in remaining compliant with Alameda rules and preserving profits. RH The information contained in this article is general in nature. Consult the advice of an attorney or professional for any specific problem. © 2015 Elizabeth Hart. Liz Hart is a consultant to owners of rental properties in Oakland and Berkeley, and specializes in rent laws and rent board petitions. She can be reached at liz.hart1801@gmail. com or 510-813-5440.

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FEATURE

Buying & Selling Rental Properties 28 RENTAL HOUSING

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A four-part article on assessing, acquiring and financing multifamily properties in the Bay Area. BY EAST BAY CREW

W

hile investing in real estate is one of the best ways to build wealth, navigating the complex market can be overwhelming. The following articles are meant to educate independent investors by providing a picture on what to expect, from property risks to lending.

Finding a Foothold in a Seller’s Market

BY ANNE BRUFF

I

nvesting in residential real estate has become a perilous adventure and not one for the faint of heart. Increasing rent control, soft story issues, expenses like garbage and water all contribute. Lack of inventory and multiple offers are pushing prices into the stratosphere. Good for the seller who is looking to cash out, not so good if the seller needs to find a replacement property.

For investors trying to enter the market, it has been a blood bath. Purchasing income property used to be about how much income would be generated. Now it is about “parking” money with little hope of cash flow in the near term. Most frustrating are municipal governments under the illusion that small property owners should bear the burden of governmental failed policies to increase housing stock.

That aside, real estate investment is still the surest way to build wealth. Jobs are increasing and have resulted in population growth in the Bay Area. Supply and demand, not “greedy landlords” as the media would have you believe, are propping up rents. The East Bay is still more affordable than San Francisco.

Interest rates are low, and new development is finally in the pipeline. Increasing housing stock will eventually ease housing demand to the point that tenants feel they have options and will be able to move, making for a more fluid rental environment. More than 7,500 new units are in various stages of development in Oakland. While Oakland’s City Council has passed an ordinance creating development fees, those fees are lower than surrounding cities. Some developers may opt out of Oakland, but most projects appear poised to press forward.

East Oakland, which has experienced very little development, offers lower development fees than the rest of Oakland. This common sense approach recog-

nizes the need for development throughout Oakland, not just Downtown, Lake Merritt, North Oakland and West Oakland. Warehouse to apartment conversions offer potential. Oakland rezoned many formally industrial areas into a mixed business and housing zone that encourages conversions of warehouse space to live/work. Warehouse conversions are in demand and their tenants both require less expensive finish work and are willing to pay high rents for industrial chic.

Eased restrictions on new granny units also offers promise. A new Oakland ordinance allows greater flexibility for legalizing and adding secondary units even in property that is not owner occupied. This improvement may be made statewide if the legislature passes Assembly Bill 1069 which encourages conversion of auxiliary spaces (garages) into living spaces and would limit a city or county’s ability to reject accessory units if they meet certain thresholds.

There still is opportunity for the prudent owner who manage expenses carefully, raises rents on an as-possible basis and adds value given opportunity.

For those entering the market or trying to add to their portfolio, equity buildup, tax advantages, and appreciation may take the place of cash flow in the immediate future. But the future will come, tenants will move, cash flow will increase, equity will build, and wealth will be created.

Navigating Environmental & Engineering Risk in Multifamily Investments

BY HOLLY NEBER

H

ow does a buyer know if the property has hidden environmental and engineering risks or costs? Sophisticated investors look to fully understand the range of risks at a property to ensure the investment does not come with unforeseen costs.

Environmental and engineering concerns that can lead to additional costs include: roof leaks or other types of moisture intrusion that lead to building damage and mold growth; seismic retrofit requirements by the municipality; structural concerns for exterior decks; asbestos-containing materials in poor condition that need to be abated; asbestos-containing materials

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What to Expect From the Financial Institution

“Every property owner desires to provide a safe environment for their tenants, and this requires evaluation of these considerations.

The environmental and engineering consulting community is here to help you identify and manage these risks.” in good condition that will result in higher renovation costs; lead-based paint requiring ongoing monitoring for condition and additional renovation costs; historical environmental conditions, such as heating oil underground storage tanks (USTs); and off-site contamination from nearby properties that may result in health risks to occupants (and liability for the owner) The lender may require some form of environmental or engineering due diligence. However, be aware that that due diligence performed by the lender is for its use and typically, only they may rely upon the reports. Savvy investors obtain their own due diligence from engineers that understand their risk tolerance, with the help of legal counsel and insurance professionals to manage any identified concerns.

Environmental. On the environmental side, due diligence may include: asbestos & lead-based paint surveys; moisture and mold assessments; Environmental Transaction Screens (a limited environmental assessment that typically includes a site inspection and regulatory review); Phase I Environmental Site Assessment (a more comprehensive assessment that may or may not include asbestos and lead sampling, and inspections for the presence of visible mold); and UST inspection.

Engineering. On the engineering side, buyers typically order the following: Property Condition Assessment (a site inspection to assess the condition of roofs, HVAC equipment, paving, and other key building conditions), and Scenario Expected Loss (SEL) report (an evaluation of the likely damage in the case of a seismic event).

Most consulting firms also offer limited scopes of work if the buyer has identified a specific area of concern.

Unexpected environmental or engineering costs can be significant. Simply repairing the issue is one cost, but legal liability from tenants who may have been exposed to hazardous substances, asbestos, mold or lead, is an additional cost and unwelcome stress for any property owner.

Every property owner desires to provide a safe environment for their tenants, and this requires evaluation of these considerations. The environmental and engineering consulting community is here to help you identify and manage these risks.

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BY TRACY THOMPSON

B

orrowers financing an investment property from an institutional lender (the “Bank”) are wise to be aware of key factors to the bank’s financial analysis.

Ability to Service Debt. The bank will review the investment property’s ability to generate enough cash flow to service the debt by considering the amount of the loan payment in relation to the property’s rental income minus a vacancy factor, reserve, normal expenses, taxes, maintenance, and an allotted management fee. This calculation results in a Debt Service Coverage (DSC) ratio, which shows if there is enough income to support the debt per the bank’s guidelines. As guidelines vary, be sure to ask what the bank’s minimum DSC ratio requirement is. The lease agreements, existing rent rolls, and any current expense payments will be needed by the bank to calculate the property’s DSC ratio. A property’s level of debt may look very manageable when it is fully occupied. However, vacancies are the bane of investor properties, which leads to the next factor, experience.

Experience. The bank will review the borrower’s personal financial statement to see his/her personal net worth and other properties that the investor owns. This is very important as it shows the experience and capability of the borrower to manage the new and existing investments. The personal financial statement should detail all assets, liabilities, and all property holdings, residential and commercial. It is recommended that a detailed debt schedule be included.

Individual Capacity. The Bank will also need to review a borrower’s complete personal tax returns. Depending on the bank’s guidelines, be prepared with two or three most recent years of federal tax returns, including W-2s and any K-1s, if noted on the Schedule E, and all schedules and notes. If you file business or separate returns for a trust or LLC that holds investment properties, be prepared to submit two to three years of those returns as well. With business returns, you will also need to submit the current year-to-date interims (balance sheet and income statement). The returns will show the bank a trend analysis of your personal ability to service the debt in case the investment property falls short in its ability to do so for any reason.

Things to Know. Banks look to a borrower’s liquidity or reserves to support the property on top of DSC, experience, and individual capacity. Liquid reserves are important to support any unexpected vacancies and/or expenses the property may incur. As well, banks will review the Loan to Value (LTV) of the property. The higher the LTV, the higher the perceived risk of the loan. The lower the LTV, the lower the perceived risk.

Working closely with an experienced banker assists in assuring the process runs smoothly. Be up-front about your credit

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UPCOMING EVENTS

Oakland Rent Board Roundtable D ATE & TIME M ODERATOR

PRICE

TOPICS

MONDAY, JUNE 6; 10:00 A.M. - 11:00 A.M. Jill Broadhurst, CCRM, EBRHA Free to members only An informal discussion on the rent board petition process

Oakland Councilmember Annie Campbell-Washington at EBRHA Office D ATE & TIME MONDAY, JUNE 6; 2:30 P.M. - 4:00 P.M.

PRICE Free to members only

TOPICS Meet District 4 councilmember face-to-face; Attend to share your story and advocate on behalf of members

Get Involved! EBRHA Member Training D ATE & TIME MONDAY, JUNE 6; 6:30 P.M. - 7:30 P.M.

PRICE Free to members only

TOPICS Learn to publicly share your stories in direct and succinct ways

Public Affairs Meeting D ATE & TIME M ODERATOR

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TUESDAY, JUNE 14; 10 A.M. - 11:00 A.M. Jill Broadhurst, CCRM, EBRHA Free to members only Prioritizing local housing issues and tackle them head on.

Rental Property Owners Roundtable D ATE & TIME M ODERATOR

PRICE

TOPICS

WEDNESDAY, JUNE 22; 10:00 A.M. - 11:00 A.M. Jill Broadhurst, CCRM, EBRHA Free to members only An informal discussion on management issues & solutions

Meet & Greet w/ Elected State Assemblymember Bill Quirk D ATE & TIME FRIDAY, JUNE 24; 10:30 A.M. - 11:30 A.M.

PRICE Free to members only

TOPICS Representing Southern Alameda County, members are encouraged to attend and learn about the state agenda

Online Registration at ebrha.com

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history and investment experience. The more you explain in detail in the beginning to your banker, the better the experience and help they can provide.

Changes in the Multifamily Lending Landscape

BY ELIZABETH SWIFT

A

couple of new developments have taken place in the lending environment that impact multifamily and other projects. Not only are there new regulations that affect multifamily development, but also there are shifts in how institutions may lend, which has affected the overall lending landscape. Banks are under increasing pressure from regulators to limit the funds they lend for acquisition and development (“A&D”) projects.

Because the FDIC considers A&D loans riskier than straight acquisition loans and refinances, it requires banks to assign higher capital reserves for A&D lending.

In 2015, the FDIC published working guidelines increasing the risk for A&D loans by 50%. Fittingly, the FDIC created a new acronym to define such loans: “HVCRE,” or “High Volatility Commercial Real Estate.” The HVCRE guidelines apply to, among other certain development projects, multifamily projects of five or more units. As a result, acquiring a loan to finance land entitlement, development and construction of a 5+ unit multifamily property is harder than it was 10 years ago. In order to avoid the additional capital requirements for lending on HVCRE, the borrower must: a) keep at least 15% cash equity (defined as a percentage of the “as completed” appraised value for the property) in the project, and b) must keep this equity in the project for the duration of the loan.

Two things are important to emphasize: 1) This is a cash equity requirement, not an imputed equity requirement, meaning that it’s based on the cost basis (what the borrower paid for the land), not what it’s worth now, and 2) Because the cash equity requirement is for the duration of the loan term, the borrower cannot cash out equity during the loan term unless she can still maintain 15% cash equity until the loan is repaid. If

you just bought your land a year ago and immediately look for a loan to develop it, these new guidelines pose less of an issue (because the cash equity and the imputed equity in the land are probably close to the same) but if you bought your land a long time ago and your cost basis is only $200k (for example), then that is all that can count as cash equity from the land acquisition, even if it is worth $5,000,000 now. The good news is that a lot of the soft costs incurred after the land acquisition for a multifamily project can count toward the borrower’s cash equity, including interest paid on a land loan (if the borrower had one), entitlement fees, management fees, etc.

In addition to the new FDIC regulations, Dodd-Frank has put new pressures on conduit institutions. A number of conduit lenders are exiting the market due to increased volatility in interest rates (partly as a result of the economic turmoil in Europe and China) and more stringent requirements under DoddFrank. There are rumors that conduits are re-trading interest rates on loans under application or refusing to lock interest rates at all prior to loan closing.

Furthermore, under Dodd-Frank, the loan originator (or “securitizer”) for a securitization is now required to retain at least 5% of the loan on its books. These factors are likely to result in higher interest rates charged by conduit lenders in 2016 and beyond.

Although many have argued that the economic recession is over, some of its impacts on commercial real estate financing are only just beginning to be felt, and it is more important than ever to stay educated. RH East Bay CREW/CREW East Bay is a professional organization of women and men in the East Bay whose mission is to enhance professional growth and business opportunities for women as influential leaders in the commercial real estate industry and to promote their success by providing resources, recognition and networking http://www.creweastbay.org/home. aspx. Four of their members have contributed to this article: Anne Bruff, President of Anne Bruff & Associates, Investment Real Estate Consultants; Holly Neber, President of AEI Consultants, Environmental and Engineering Services; Tracy Thompson, Senior Relationship Manager for Bank of San Francisco and Elizabeth Swift, Senior Relationship Manager for F&M Bank.

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FEATURE

Getting Your Tena Steps to a successful recycling program in your multifamily building.

BY MICHELLE FAY

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PHOTO: COURTESY OF STOPWASTE

ants to Compost S

tarting July 1, composting will be the law for multifamily properties with five or more units, located in the cities of Oakland and San Leandro. Most other Alameda County cities that opted into the Mandatory Recycling Ordinance have already had the requirement since July 2014. Under the Ordinance, compostable materials such as food scraps, food soiled paper and plant debris need to be kept out of the garbage and picked up through separate organics collection service. The process of actually turning these materials into the rich, crumbly soil amendment known as compost takes place at large scale facilities in the region.

If your property is affected, this is a good time to make sure you have taken all the steps required by the Ordinance. Simply having carts or bins for compostables somewhere on your property is not enough—the law also requires you to make them accessible and provide a minimum level of outreach to your tenants, staff and contractors. However, the Ordinance will not hold property owners and managers accountable for tenants’ composting participation.

The step-by-step recommendations in this article are designed to not only make compliance as easy as possible, but also share tips to make your composting program a success for you and your multifamily community.

to determine the right amount of service— number and volume of carts or bins and frequency of pickups. They can typically also provide on-site technical assistance to help you find appropriate locations for the new receptacles and address any space concerns.

In properties with garbage chutes, it is ideal to place recycling and composting containers right into the chute room. Many apartment communities use smaller indoor receptacles for this purpose and have their janitorial staff empty contents regularly into the larger carts or bins typically located in the basement. However, if grouping containers in the chute rooms is not an option, signs that point tenants to the recycling and composting location can help. You can download a customizable sign template at www.RecyclingRulesAC.org/docs/Garbage-Chute-Sign.pdf.

Good news: Setting up organics collection service may help you save on hauler fees.

Since compostable materials can go into the organics, you may be able to downsize your garbage service accordingly. For example, a new organics cart can simply take the place of a trash cart, reducing the overall cost of service since organics collection for multifamily properties is often offered at a discount and sometimes, even at no additional cost.

Step 1: Set Up Service

Setting up containers for the collection of compostables offers a good opportunity to check on signage for all carts and/or bins in your disposal areas. Although recycling, organics and trash carts each have distinct colors and typically come with labels on the lids, good signage is critical to help minimize contamination. If your building uses carts and has a whole row of them, don’t hesitate

The Ordinance requires you to provide containers and service of sufficient number, size and frequency for recyclables and organics, at the same or equally convenient location as garbage. This means wherever your tenants currently dispose of their garbage, that’s also where the recycling and organics containers should be located. Call your garbage hauler

Step 2: Provide Good Signage

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in person and answer any questions and concerns that may arise.

“Good news: Setting up organics collection service may help you save on hauler fees. Since compostable materials can go into the organics, you may be able to downsize your garbage service accordingly.” to post multiple signs for each material stream. As a rule, you want to have signage above or next to each container at eye level, and label each container. Make sure your disposal area is well lit at all times and that your signage isn’t obstructed by plants, etc.

To obtain signs, contact your hauler or City. Often multiple sizes are available. Space allowing, opt for the largest signs you can accommodate. You may want to laminate the signs for additional durability, especially if your carts and bins are located outdoors. To keep disposal areas attractive, check on your signs regularly and replace any that have become worn or even hard to read.

Step 3: Promote Your Program

Even the most conveniently placed and well-labeled organics containers will not attract widespread participation in your program unless you actively promote it, not only to your tenants but also to on-site staff and contractors such as janitors and landscapers. In fact, the Ordinance requires that notification be sent to all tenants, employees and contractors at the property at least once a year and to tenants during unit turnover. The Ordinance allows a 14-day window for that notification—you’ll need to remind tenants about recycling and composting at least 14 days prior to move-out and no more than 14-days after move-in.

Most property owners and managers start their outreach efforts by announcing the program and giving their tenants kitchen pails to collect food scraps and food-soiled paper as well as brochures listing acceptable items—both available at no cost from most haulers. Note that residents often prefer their own containers to collect organics in the apartment. Having pails on hand for 25-50% of your tenants should be enough to start. To help with the notification, the Alameda County Waste Management Authority offers customizable letter and flyer templates. Visit www.RecyclingRulesAC.org/multi-family-supportmaterials to download.

Christie Martinez, Property Manager at The Landing at Jack London Square in Oakland, reached out via email to the complex’s 282 units, then placed pails and brochures at each door. “The announcement offered tenants the option to return the pail if they really didn’t want to participate but we got hardly any back, and food scrap collection seems to catch on,” she reports. Properties with on-site offices may also opt to ask residents to pick up their pail rather than find it at their doorstep, affording staff an opportunity to explain the new program 36 RENTAL HOUSING

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Outreach Success Stories

Generally, the more personal and customized the outreach, the better the results you can expect. Ann Mcclain, owner of Alta Casa Apartments in Oakland, made a point of speaking face-to-face with the tenants of each of her 24 units about the new composting program. “I offered several dates and got to talk to most residents in small group settings,” recalls Mcclain. “That allowed me to show what can and cannot be composted, give out materials and explain how to compost right, so there’s no flies or smells.” Alta Casa Apartments have excellent participation in recycling and composting, but Mcclain’s efforts have paid off in other ways as well. “Tenants tell me how much they like the way I run things here and how tidy our trash area is. And they do their part,” she observes.

Since the Ordinance also requires outreach about recycling and composting during unit turnover, it was a no-brainer for Mcclain to include language about the requirement to recycle and compost in her tenant agreements. “When a new tenant moves in, I take them through the building and make a point of showing the trash and recycling area.”

East Bay property managers increasingly value tenant engagement, particularly around green measures like composting and recycling. Felson Companies who manages seven apartment communities in Hayward find that besides complying with legal requirements, outreach to residents on proper disposal can help build a sense of community and improve communication between tenants and management. Tami Santos, Community Manager at Mission Heights, summarizes: “It’s all about collaboration. We work with a third party day porter service to keep the trash enclosures tidy so people like using them. We do things for them, like coming to their door to take old furniture or other bulky trash items. In return they support our efforts to be green.” Since starting composting collection in July 2015, the seven Hayward apartment communities combined are keeping over 94 cubic yards of organics out of the trash each month.

Resources and Tools

Check with your hauler or City first to inquire about resources like signage, labels, informational materials and kitchen pails.

They may also be able to meet with you on-site to assist with setup, if desired. Multifamily property owners and managers in Alameda County can also find city-specific information and resources, including hauler contacts and downloadable materials, at www.RecyclingRulesAC.org/cities-overview. For properties in Oakland, EBRHA offers an online ordering form for Oakland Recycles materials at www.ebrha.com/free-materials.

RH

Michelle Fay is a Program Manager at StopWaste—a public agency focused on helping businesses, residents, and schools reduce waste in Alameda County. She can be reached at mfay@stopwaste.org.

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government affairs

help build support within states and local communities. Typically, a Presidential candidate combines efforts with Senators and Representatives running for re-election. That may not be the case here for many candidates for whom Mr. Trump could be a liability. Campaign ads tying the most controversial parts of his message to Republican candidates are already airing in several states.

All this said, it will certainly be no easy ride to victory for Secretary Clinton.

Her own unfavorable rating is above 50 percent and there is pretty strong current Legislative updates from NAA’s Senior Vice of distrust of her among voters. Like Mr. Trump, the Secretary is not guaranteed to President of Government Affairs. BY GREG BROWN garner the support of all of the communities within her own party. Those voters into the minds of some of our country’s currently supporting Bernie Sanders most disaffected voters worked in the might decide that she is too much status primary and could also work in the genquo and not enough revolution. They, eral election. Moreover, Mr. Trump is like some establishment Republicans, unorthodox, unpredictable and without could stay home rather than cast a vote a filter. Those are usually liabilities for for their nominee. And, there is the email a candidate, but for him they have been server controversy. While it seems like assets as his opponents’ more convena dud of an issue for the average voter, tional campaign strategies failed. an indictment could change the converAccording to recent polls, Mr. Trump sation significantly. Finally, Secretary starts the race against Hillary Clinton, Clinton has thus far been able to run a assuming she is the Democratic nomistandard sort of campaign with all of the nee, under a 15-point deficit. Further, his typical tools, methods and narrative. As overall “unfavorable” rating is nearly noted above, that did not work against 60 percent while his support among Mr. Trump in the primary and it will women and the Hispanic community not work against him now. Is she really is dismal. Finally, he has to spend time ike so many people inside the prepared for the “asymmetrical” style he wooing members of his own party to Washington, D.C., beltway, I am employs? support his candidacy. Endorsements eating my words from 11 months or at least pledges of support (some There is a lot yet to know about how ago – “Donald Trump is not a serious the general election is going to play out. only for “the nominee”) are coming in candidate and there is no way he will It depends on when the Democrats sort from Senators, Governors members of get the GOP nomination,” I said. Even out their own primary, who Mr. Trump the House, etc., but there are at least as as support for Mr. Trump grew and picks as his Vice Presidential running many who are either pledging never to other, seemingly more viable candidates mate, how his tone and rhetoric changes support Mr. Trump or who will not do fell away, I still could not absorb the so now. Even House Speaker Paul Ryan, (or does not) going forward, whether Secidea. Certainly in the past 45 days, I who is concerned about maintaining retary Clinton’s legal troubles worsen and have stopped speculating altogether his own majority, won’t commit to Mr. the style with which Mr. Trump engages because well, even I began to believe he Trump yet. the Secretary (bully or tough opponent). could pull it off.

One could argue that As these and many other So here we are. At press time, Donald Mr. Trump did not need “All this said, it will elements play out we Trump is poised to claim enough delcertainly be no easy the support of “establishwill revisit this conversaegates before the Republican National ride to victory for ment” Republicans to tion. RH Convention in Cleveland to be the Secretary Clinton. win the primary, so why GOP’s standard-bearer in the PresidenHer own unfavorable Greg Brown is the Senior does he need them now?

Vice President of Govtial race. Having learned my lesson, rating is above 50 Realistically, he needs ernment Affairs with the I will measure my opinion about his percent and there is that support for what it National Apartment Aschances of being Commander-in-Chief. pretty strong current sociation. He can be reached brings – money, surroat 703-797-0615 or greg@ His particular brand of bravado, policy gates to carry his message of distrust of her naahq.org. “flexibility” shall we say and insight among voters.” and ground troops to

A Conversation We’ll Be Revisiting

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esq. & a

A New Rental Property Owner To-do List So, you just bought a multifamily building. Now what? BY STEVE WILLIAMS

Q

I just bought a new building, and I’d like to know some of the most important issues I should be addressing now that I’m the owner.

A

When a new owner purchases a residential rental property in Oakland, he or she steps into the shoes of the prior owner. In other words, the new owner is bound by the prior owner’s actions regarding any residential tenancy and must comply with all of the terms and obligations of that tenancy.

So for instance, if a rental agreement provides for no pets but the prior owner orally permitted the tenant to have a pet, then a new owner cannot thereafter seek to enforce the no pet provision of the rental agreement. The new owner is bound by the prior owner’s agreement.

For this reason, it is important for a new owner to get as much information 40 RENTAL HOUSING

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will be in a much better position to know the important terms and conditions of the tenancy and can act accordingly as the new owner. It will also help to have a general understanding of the local rent and eviction control ordinances. Most rental units in Oakland are subject to the rent and/or eviction control ordinances, so you will be expected to comply with it. You may consider consulting with an attorney for this purpose. Other groups and organizations, such as the East Bay Rental Housing Association and the Oakland Rent Board may also provide some information about the ordinances.

In addition to the above, there are a multitude of other issues a new property owner should or could address, but each owner’s obligations vary depending on the circumstances. So I will outline a few other “to-dos” that every new owner should address to make sure he or she gets off to a good start.

Insurance The rent laws in California can make it lucrative for residential tenants to sue the rental property owner. Many local eviction ordinances allow tenants to recover treble damages and attorney’s fees if they prevail in litigation. These laws are flypaper for tenant attorneys. One way to manage the risk of a tenant lawsuit is to have insurance coverage for claims of wrongful eviction. All rental residential owners in rent or eviction control jurisdictions should have coverage for claims of wrongful eviction. So every new owner should be sure to obtain an insurance policy that includes coverage for wrongful eviction.

as possible about any tenancy. This is commonly done by getting copies of all rental agreements and rent increases and other agreements concerning the tenancy from the prior owner during the purchase process. It is also common to request the tenant to provide a document commonly referred to as Introductory Letter an estoppel. An estoppel document is a Within 15 days of an ownership change, written statement by the tenant certifythe new owner must give the tenant an ing certain facts pertaining to the rental introductory letter. The letter must disagreement. From the estoppel docuclose certain information, including the ment, the new owner can typically get name, street address, and phone number a better understanding of of the person to whom the terms and conditions “In addition to the legal documents may of the tenancy. While above, there are a be served and to whom estoppel documents can multitude of other rent payments are to be useful, sometimes things a new propbe made. You can find tenants refuse to provide erty owner should or a more comprehensive them. could do, but each overview of the required From the informaowner’s obligations disclosures in California tion obtained about the vary depending on Civil Code Section 1962. tenancy, the new owner the circumstances.”

If the new owner fails to

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make the required disclosures, then the owner is precluded from evicting a tenant for nonpayment of rent. So a new owner should be sure to comply and deliver an introductory letter containing all the required disclosures. Since the introductory letter is often the new owner’s first communication or interaction with the tenant, the new owner may tailor the letter accordingly. First impressions are important and may set the stage for the future owner/tenant relationship. So for instance, it may go a long way to simply inform the tenant that the security deposit was transferred to the new owner, that the current terms of the tenancy will remain in place, and that any concerns will be diligently addressed. Such a letter is customizable and varies depending on the owner and circumstances.

RAP Notice An Oakland property owner of rent controlled units must serve his or her tenants with a Notice to Tenants of the Residential Rent Adjustment Program (“RAP

Notice”) at the commencement of the tenancy, at the time of any rent increase, and at the time of any notice changing the terms of tenancy. The RAP Notice provides the tenant with information about rent increases and tenant rights.

It can be downloaded directly from EBRHA’s website or the Oakland Rent Board website. If it is not properly given, then any rent increase may be void.

If it is determined that RAP Notices were not properly given by the prior owner, then the new owner should immediately serve them on all the tenants. By doing this, the previous failure to properly give the RAP notice will be cured 6 months after the new owner properly gives it, so future rent increases after that 6 month period can be safely given. Of course, the new owner must be sure to give the RAP Notice again with the future rent increases.

Habitability & Quiet Enjoyment Every new owner must be aware that he or she is required by law to provide the

tenant with a habitable rental unit. This generally means a rental unit that is in good repair and free from dilapidations.

Similarly, he or she must is also required by law to provide the tenant with quiet enjoyment of the rental unit. This generally means peaceful possession of the rental unit without disturbance. If the new owner is ever informed that repairs are needed or that the tenant is being disturbed, then the new owner should promptly respond and take any needed steps to rectify the situation.

Consult With an Attorney These are just a few issues a new owner should address. For specific concerns, especially in a rent/eviction control jurisdiction, the new owner should consult with an attorney. —STEVE WILLIAMS RH The information contained in this article is general in nature. Consult the advice of an attorney for any specific problem. Steve Williams is an attorney with Fried & Williams LLP. He can be reached at 510-625-0100 or swilliams@friedwilliams..

JOIN US FOR OUR UPCOMING EVENT The current economy: what to expect in 2016 June 16 | 11:30-1:30 Scott’s Seafood | 2 Broadway (Jack London Square), Oakland, CA Guest Speaker | Paul Single, Managing Director, City National Bank

Learn more and register at www.eastbaycrew.org 42 RENTAL HOUSING

| JUNE 2016 |

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EAST BAY CREW 2016 SPONSORS GOLD SPONSORS

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LET YOUR VOICE BE HEARD! HAVE YOU MET WITH YOUR ELECTED OFFICIAL THIS MONTH? CHECK OUT OUR WEBSITE FOR OPPORTUNITIES TO MEET FACE-TOFACE WITH LOCAL REPRESENTATIVES. SEE THE CALENDAR PAGE ON PAGE 28 & 40

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community calendar EVENTS & CLASSES

june

july

MONDAY, JUNE 6 Oakland Councilmember Annie Campbell-Washington 1-4 unit owners: meet Oakland District 4 Councilmember Annie Campbell-Washington face-to-face at EBRHA’s office to share your story and advocate on behalf of members Free to members only 2:30 p.m. - 4:00 p.m.

MONDAY, JUNE 6 Get Involved! EBRHA Member Training Learn to publicly share your stories in direct and succinct ways; Members only 6:30 p.m. - 7:30 p.m.

TUESDAY, JUNE 14 Public Affairs Meeting Moderated by Jill Broadhurst, CCRM, EBRHA Free to members only 10:00 a.m. - 11:00 a.m.

WEDNESDAY, JUNE 15 - SATURDAY, JUNE 18 NAA Education Conference & Exposition @ Moscone Center Turn to page 16 for more information WEDNESDAY, JUNE 22 Small Rental Owners Roundtable An informal discussion on management issues and solutions Moderated by Jill Broadhurst, CCRM, EBRHA Free to members only 10:00 a.m. - 11:00 a.m.

THURSDAY, JUNE 23 Lunch-n-Learn: Investment Basics Presented by Terry Allen, CFP®, AWMASM, Enhance Wealth Advisors Members: $20 (Members only); Lunch is provided at 11:45 a.m.; Advanced registration at www.ebrha.com/events Noon - 1:30 p.m.

FRIDAY, JUNE 24 Meet & Greet w/ Elected State Assemblymember Bill Quirk Representing Southern Alameda County, all members are encouraged to come meet Assemblymember Bill Quirk and learn about the state agenda Free to members only 10:30 a.m. - 11:30 a.m.

TUESDAY, JUNE 28 Rental Property Owner Basics Presented by Jill Broadhurst, CCRM, EBRHA Free to Members and Non-members 2:00 p.m. - 3:30 p.m.

THURSDAY, JUNE 30 Baseball Night: Oakland A’s vs. San Francisco Giants Members: Free (Refundable deposit reserves up to two tickets per member; see ad on page 9 for details) Tailgate — Oakland Coliseum Parking “Lot K” Game — Oakland Coliseum Tailgate — 5:00 p.m.; Game — 7:00 p.m.

MONDAY, JULY 4 EBRHA Office Closed TUESDAY, JULY 5 Oakland Rent Board Roundtable An informal discussion on the Rent Board petition process Moderated by Jill Broadhurst, CCRM, EBRHA Free to members only 10:00 a.m. - 11:00 a.m.

THURSDAY, JULY 7 Lunch-n-Learn: Estate Planning Presented by Terry Allen, CFP®, AWMASM, Enhance Wealth Advisors Members: $20 (Members only); Lunch is provided at 11:45 a.m.; Advanced registration at www.ebrha.com/events Noon - 1:30 p.m.

WEDNESDAY, JULY 13 Small Rental Owners Roundtable An informal discussion on management issues and solutions Moderated by Jill Broadhurst, CCRM, EBRHA Free to members only 10:00 a.m. - 11:00 a.m.

SATURDAY, JULY 16 EBRHA Membership Meeting Speakers TBD Note: Check-in and membership verification required upon entry. Please enter through back door on Weldon Avenue and ring doorbell for access. Street parking only.

Free to members only 10:00 a.m. - 11:00 a.m.

TUESDAY, JULY 19 Managing Challenging Tenancies Presented by Michael Shepherd, The Shepherd Law Group Members: $39; Non- Members: $69 2:00 p.m. - 3:30 p.m.

WEDNESDAY, JULY 20 Public Affairs Meeting Moderated by Jill Broadhurst, CCRM, EBRHA Free to members only 10:00 a.m. - 11:00 a.m.

TUESDAY, JULY 26 Rental Property Owner 101 (RPO 101) Presented by Jill Broadhurst, CCRM, EBRHA Free to Members and Non-members 2:00 p.m. - 3:30 p.m.

WEDNESDAY, JULY 27 Lunch-n-Learn: Savvy IRA Planning Presented by Terry Allen, CFP®, AWMASM, Enhance Wealth Advisors Members: $20 (Members only); Lunch is provided at 11:45 a.m.; Advanced registration at www.ebrha.com/events Noon - 1:30 p.m.

No Refunds on no shows; Online advanced registration required! To register and pay, visit ebrha.com/calendar or call (510) 893-9873.

Unless noted, all classes and events are held at the EBRHA Education Center, 3664 Grand Ave., Suite B in Oakland.

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Oakland RENT ADJUSTMENT PROGRAM FEE

Annual fees are $30 per unit and are due March 1. Owners are allowed to pass through $15 to tenants.

BUSINESS TAXES & REGISTRATION

Registration fee is $60 and is due March 1. Tax is based on annual gross rental income at a rate of $13.95 per $1,000 of gross rental income. Tax renewal declarations are mailed at the beginning of the year.

LANDLORD PETITION FOR EXEMPTIONS

Claims covered include new construction, substantial rehabilitation, and single-family homes or condominiums.

CAPITAL IMPROVEMENTS INCREASE FORMULA

(70 % of Improvement Costs ÷ Number of Units) 60 months or 5 years

ANNUAL ALLOWABLE RENT INCREASE

2016-17 (2.0%) NOTE: On April 5, 2016, the Oakland City Council adopted an Interim Emergency Ordinance to temporarily place a 90-day moratorium on rent increases above the annual CPI adjustment and other measures. Go to www.ebrha. com for more information.

A CPI increase of 2.0% becomes effective on July 1, 2016. Tenants may only receive one increase in any 12-month period, and the rent increase cannot take effect earlier than the tenant’s anniversary date. In addition, California law requires that for tenancies receiving greater than a 10% increase, a 60-day notice is required; if the increase is 10% or less, a 30-day notice is required. Owners can only impose “banked” rent increases equal to three times the current annual allowable rent increase rate. See schedule at right.

REFER TO ORDINANCE FOR NOTICING, QUALIFICATIONS AND AMORTIZATION PERIODS.

Berkeley RENT STABILIZATION BOARD FEES

Annual fees are $213 per unit and are due July 1. Owners are allowed to pass through $4 to tenants.

RATES OF ANNUAL PAYMENT OF SECURITY DEPOSIT INTEREST P E R I OD A MO UN T FEDERAL RESERVE RATES

DEC. 2014. . . . . . . . . . . . . . . . . . . . . N/A DEC. 2013. . . . . . . . . . . . . . . . . . . 0.3% DEC. 2012. . . . . . . . . . . . . . . . . . . 0.5% DEC. 2011. . . . . 0.4% (CORRECTED 11/3/2011) DEC. 2010. . . . . . . . . . . . . . . . . . . 0.4% DEC. 2009. . . . . . . . . . . . . . . . . . . 1.1% DEC. 2008. . . . . . . . . . . . . . . . . . . 3.4% DEC. 2007. . . . . . . . . . . . . . . . . . . 5.3% DEC. 2006. . . . . . . . . . . . . . . . . . . 5.1% DEC. 2005. . . . . . . . . . . . . . . . . . . 3.4%

PERI OD

AM O U N T ( % )

JULY 1 ‘16 - JUNE 30 ‘17 . . . . . . . . . 2.0 JULY 1 ‘15 - JUNE 30 ‘16 . . . . . . . . . 1.7 JULY 1 ‘14 - JUNE 30 ‘15 . . . . . . . . . 1.9 JULY 1 ‘13 - JUNE 30 ‘14 . . . . . . . . . 2.1 JULY 1 ‘12 - JUNE 30 ‘13 . . . . . . . . . 3.0 JULY 1 ‘11 - JUNE 30 ‘12 . . . . . . . . . 2.0 JULY 1 ‘10 - JUNE 30 ‘11 . . . . . . . . . 2.7 JULY 1 ‘09 - JUNE 30 ‘10 . . . . . . . . . 0.7 JULY 1 ‘08 - JUNE 30 ‘09 . . . . . . . . . 3.2 JULY 1 ‘07 - JUNE 30 ‘08 . . . . . . . . . 3.3 MAY 1 ‘06 - JUNE 30 ‘07. . . . . . . . . . 3.3 MAY 1 ‘05 - MAY 30 ‘06 . . . . . . . . . . 1.9 Visit www.ebrha.com/members to see previous adjustments.

FOR FURTHER INFORMATION CONTACT:

Oakland Rent Board 250 Frank H. Ogawa Plaza, Ste. 5313 Oakland, CA, 94612 510.238.3721 | www.oaklandnet.com

ANNUAL ALLOWABLE RENT INCREASE

2016 (1.5%) PERI OD AM O U N T

Beginning in 1998, adjustments are not allowed for the year following a tenant’s initial occupancy. To obtain the maximum amount for a specific address, please use the “Rent Ceiling Database” calculator on Berkeley’s Rent Board website.

Visit www.ebrha.com/members to see previous adjustments.

2016. . . . . . . . . . . . . . . . . . . . . . . . 1.5% 2015. . . . . . . . . . . . . . . . . . . . . . . . 2.0% 2014. . . . . . . . . . . . . . . . . . . . . . . . 1.7% 2013. . . . . . . . . . . . . . . . . . . . . . . . 1.7% 2012. . . . . . . . . . . . . . . . . . . . . . . . 1.6% 2011. . . . . . . . . . . . . . . . . . . . . . . . 0.7% 2010. . . . . . . . . . . . . . . . . . . . . . . . 0.1% 2009. . . . . . . . . . . . . . . . . . . . . . . . 2.7% 2008. . . . . . . . . . . . . . . . . . . . . . . . 2.2% 2007. . . . . . . . . . . . . . . . . . . . . . . . 2.6% 2006. . . . . . . . . . . . . . . . . . . . . . . . 0.7% 2005. . . . . . . . . . . . . . . . . . . . . . . . 0.9% 2004. . . . . . . . . . . . . . . . . . . 1.5%, + $3 (1% + $3 IF TENANCY CREATED AFTER JAN. 1999) *ADDITIONAL ADJUSTMENTS ARE ALLOWED IF AN OWNER PAID FOR ELECTRICITY OR HEAT.

BERKELEY RATES

FOR FURTHER INFORMATION CONTACT:

DEC. 2014. . . . . . . . . . . . . . . . . . . 0.1% DEC. 2013. . . . . . . . . . . . . . . . . . . 0.1% DEC. 2012. . . . . . . . . . . . . . . . . . . 0.2% DEC. 2011. . . . . . . . . . . . . . . . . . . 0.3%

Berkeley Rent Board 2125 Milvia Street Berkeley, CA 94704 510.981.7368 | www.ci.berkeley.ca.us/rent ebrha.com

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vendor directory — CONTACTS, PRODUCTS & SERVICES ABATEMENT SERVICES

P.W. Stephens Environmental Kimberly MacFarlane 510-651-9506 www.pwsei.com Water Damage Recovery Rick Walker 800-886-1801 www.waterdamagerecovery.net ACCOUNTING & TAX

Collins, Mason & Company LLP Teresa Mason 510-891-9000 www.cmcaccountants.com The Lee Accountancy Group, Inc. Jong H. Lee, CPA 510-836-7400 jhlee@theleeaccountancy.com APPLIANCE SALES & PARTS

Appliance Parts Distributor Mike De Fazio 510-357-8200 www.apdappliance.com Appliance Warehouse of America David Jepsen 510-921-1071 www.appliancewhse.com APPRAISERS

Access Appraisal: Apartment Specialists Joe Spallone 510-601-1466 www.accessappraisal.com Mark Watts Commercial Appraiser Mark A. Watts 415-990-0025 www.markwattscommercialappraisal.com

Fried & Williams LLP Clifford Fried 510-625-0100 www.friedwilliams.com Law Offices of Brent Kernan Brent Kernan 510-712-2900 bkernan@aol.com Law Offices of Elaine Lee Elaine Lee 510-848-9528 www.elaineleeattorney.com Richards Law John Richards 925-231-8104 www.richards-legal.com The Evictors Alan J. Horwitz 510-839-2074 The Shepherd Law Group Michael Shepherd 510-531-0129 www.theshepherdlawgroup.com ATTORNEYS - LAND USE/CONDO CONVERSION

Law Offices of John Gutierrez John Gutierrez 510-647-0600, x2 www.jgutierrezlaw.com Richards Law John Richards 925-231-8104 www.richards-legal.com ATTORNEYS - REAL ESTATE/ CORP.

Beckman Blair LLP Nancy Ly 415-871-0070 ARCHITECTURE www.beckmanblairllp.com InsideOut Design Buresh, Kaplan, Feller & Chang Pennell Phillips Fred Feller 510-655-1198 510-548-7474 www.aboutinsideout.com www.bureshkaplan.com ASSOCIATIONS Ericksen Arbuthnot Jason Mauck BOMA Oakland/East Bay 510-832-7770 Christine Maley-Grubl www.ericksenarbuthnot.com 510-893-8780 www.bomaoeb.org Fried & Williams LLP Oakland/Berkeley Association of Realtors Clifford Fried 510-625-0100 Davina Lara www.friedwilliams.com 510-836-3000 oaklandberkeleyaor.com Jack Schwartz, Attorney at Law Jack Schwartz Oakland Chamber of Commerce 650-863-5823 Barbara Leslie jwsjr1220@comcast.net 510-874-4808 www.oaklandchamber.com Law Offices of John Gutierrez John Gutierrez ATTORNEYS - EVICTIONS/PROPERTY 510-647-0600, x2 OWNER DEFENSE www.jgutierrezlaw.com Beckman Blair LLP Miller Property Law Nancy Ly Inga Miller 415-871-0070 925-402-2192 www.beckmanblairllp.com www.millerpropertylaw.com Bornstein & Bornstein Richards Law Daniel Bornstein John Richards 510-836-0110, x1007 925-231-8104 www.bornsteinandbornstein.com www.richards-legal.com Buresh, Kaplan, Feller & Chang AUTOMOTIVE Fred Feller 510-548-7474 Ken Betts Towing Services www.bureshkaplan.com Ayub Azam 510-532-5000 Ericksen Arbuthnot www.kenbettscompany.com Jason Mauck 510-832-7770 BANKING/ www.ericksenarbuthnot.com LENDING 46 RENTAL HOUSING

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Chase Commercial Josh Milnes 510-891-4545 josh.milnes@chase.com Chase Commercial Ted Levenson 415-945-5430 ted.levenson@chase.com First Foundation Bank Michelle Li 510-250-8133 www.ff-inc.com Intervest Mortgage Marc Lipsett 510-332-6964 www.intervest-mortgage.com Luther Burbank Savings Larry Miller 925-627-2790 www.lutherburbanksavings.com Pacific Western Bank Marc Lipsett 510-332-6964 www.pacificwesternbank.com SF Fire Credit Union Herman White, Jr. 415-674-4808 www.sffirecu.org Torrey Pines Bank Dale Marie Golden 510-899-7536 dgolden@torreypinesbank.com BATHROOM/KITCHEN REMODELING & BUILDING SUPPLIES

American Bath Enterprises, Inc. Larry Arcadi 510-785-2600 www.americanbathind.com APT Maintenance, Inc. Keith Berry 510-747-9713 www.aptmaintenanceinc.com Ashby Lumber Paul Heiser 510-843-4832 www.ashbylumber.com Bathfitter Rod Mills 510-969-3905 www.bathfitter.com D.W. Hamilton Construction, Inc. D.W. Hamilton 510-919-0046 www.dwhamiltonconstruction.com Home Depot Allan Jocson 510-375-5237 www.homedepot.com KMK Contracting & Property Services Kevin Knobles 925-292-8667 www.kmkcontracting.com Sincere Home Decor Hei Chan 510-835-9988 www.sincerehomedecor.com SGK Home Solutions Vladmir Merabian 408-264-6964 www.sgkhomesolutions.com Urban Ore Marylou Van 510-841-7283 www.urbanore.com

vendor directory CABINETS & COUNTERTOPS

Elegant Stone & Cabinets Linh Duong 925-954-8845 www.elegantstoneandcabinets.com CARPET CLEANING

Cleaner Carpets Ron Russell 510-522-1344 cleanercarpet@juno.com CONCRETE

Mauri Concrete Construction Co. Marcelo Mauri 510-541-5260 www.mauriconcrete.com CONSTRUCTION

A-One Construction Shari Alexander 510-347-5400 www.a-oneconstruction.com APT Maintenance, Inc. Keith Berry 510-747-9713 www.aptmaintenanceinc.com D.W. Hamilton Construction, Inc. D.W. Hamilton 510-919-0046 www.dwhamiltonconstruction.com Going Green Dan Antonioli 510-652-7593 www.going-green.co KMK Contracting & Property Services Kevin Knobles 925-292-8667 www.kmkcontracting.com Schafer Construction, Inc. Mike Barker 510-568-7200 www.schaferconstructioninc.com SpottCheck Consulting Susan Spott 510-816-1452 www.spottcheck.com W. Charles Perry & Associates W. Charles Perry 650-638-9546 www.wcharlesperry.com West Coast Premier Construction, Inc. Homy Sikaroudi 510-271-0950 www.wcpc-inc.com CONTRACTORS/RESTORATION

ARC Water Damage Nina Lauffer 510-223-1279 or 877-437-9225 (toll free) www.bayareafloodrepair.com Har-Bro Restoration Inc. Sonia Fuetsch 650-670-2364 www.harbro.com Servpro of Lafayette/Moraga/Orinda Jenny Villena 925-299-1323 servpro9542@sbcglobal.net Water Damage Recovery Rick Walker 800-886-1801 www.waterdamagerecovery.net DOORS & GATES

R & S Overhead Garage Door Sean Boatright 510-483-9700, x14 www.rsdoors.com

SGK Home Solutions Vladmir Merabian 408-264-6964 www.sgkhomesolutions.com ELECTRIC VEHICLE CHARGING

NRG EVgo Mehr Kouhkan 310-954-2930 www.nrgevgo.com ELECTRICIANS

Thomas Electric Co. (TEC) Thomas Hurtubise 510-814-9387 www.tecelectric.net ELEVATOR REPAIRS

Paramount Elevator Corp.

Mark Pipoly 510-835-0770 www.paramountelevator.com FINANCIAL PLANNING

David White & Associates Miguel Delgado 925-277-2635 www.dwassociates.com Enhance Wealth Advisors Terry Allen, CFP®, AWMA SM 925-932-8609 info@enhancewa.com FIRE EXTINGUISHER SALES & SERVICES

Best Equipment Co. LLC Denise Haughin 510-655-8882 bestfireequipment@att.net FIRE PROTECTION

Detect All Security & Fire Amy Roither 510-835-4100 www.detectall.com FLOOR COVERINGS

Bay Area Contract Carpets, Inc. Ken Scott 510-613-0300 www.bayareacontractcarpets.com GOVERNMENT AGENCIES

Housing Authority of the City of Alameda Mike Pucci 510-747-4325 www.alamedahsg.org Oakland Housing Authority Leased Housing 510-874-1500 www.oakha.org HANDYMAN SERVICES

APT Maintenance, Inc. Keith Berry 510-747-9713 www.aptmaintenanceinc.com Halcyon Properties Roger Shane 510-847-7075 rbshane@aol.com KMK Contracting & Property Services Kevin Knobles 925-292-8667 www.kmkcontracting.com Start to Finish Christopher Bailey 510-727-9128 cpmbailey@sbcglobal.net HAULING SERVICES

KMK Contracting & Property Services Kevin Knobles 925-292-8667 www.kmkcontracting.com

Urban Ore Marylou Van 510-841-7283 www.urbanore.com HEATING & AIR CONDITIONING

Albert Nahman Plumbing & Heating Albert Nahman 510-843-6904 www.albertnahmanplumbing.com HOME WARRANTIES

First American Home Warranty Megan Cormier 707-596-5334 mcormier@firstam.com HOUSING SERVICES

Hamilton Family Center – First Avenues Mayo Lunt 510-763-8540 www.hamiltonfamilycenter.org HUMAN RESOURCES MANAGEMENT

Avitus Group Lance Harris 925-827-0680 www.avitusgroup.com INSPECTIONS

SpottCheck Consulting Susan Spott 510-816-1452 www.spottcheck.com INSURANCE

Bulloch Insurance Brokers, Inc. Curt Bulloch 925-640-0485 www.curtbulloch.com Commercial Coverage Insurance Paul Tradelius 415-436-9800 www.comcov.com Gordon Insurance Pamela Hutchins 877-877-7755 www.gordoninsurance.com The Greenspan Co./Adjusters Int’l.

Rich Hallock 866-331-4790 www.greenspan-ai.com Jain L. Williams - State Farm Insurance Jain L. Williams 510-530-3222 www.jainwilliams.com Kelly Lux – State Farm Insurance Kelly Lux 510-521-1222 Kelly.lux.gjcg@statefarm.com Ruth Stroup Insurance Agency Ruth Stroup 510-874-5700 www.stroupinsurance.com Stone Creek Insurance Agency Tom Lynch 925-297-4202 www.stonecreekinsurance.com Yonas Hagos - Farmers Insurance Yonas Hagos 510-763-1030 www.farmersagent.com/yhagos INTERCOMS & ACCESS CONTROLS

R & S Overhead Garage Door Sean Boatright 510-483-9700, x14 www.rsdoors.com ebrha.com

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vendor directory INVESTMENT OPPORTUNITIES

Martinez Real Estate Investment Jose Martinez 510-769-0436 LAUNDRY EQUIPMENT

Coinmach Claudette Lucey 510-909-9786 www.coinmach.com Excalibur Laundries Richard Lisowski 510-872-1664 www.excaliburlaundries.com Innovative Coin Cheri Guffey 510-259-1494 www.innovativelaundry.com

PROPERTY MAINTENANCE

LEAD, MOLD & PEST MANAGEMENT

Alameda County Healthy Homes Dept.

Julie Twichell 510-567-8252 www.aclppp.org LIGHTING

Eco Electric James Young 415-384-8526 www.ecopwr.net

A-One Construction Shari Alexander 510-347-5400 www.a-oneconstruction.com APT Maintenance, Inc. Keith Berry 510-747-9713 www.aptmaintenanceinc.com KMK Contracting & Property Services Kevin Knobles 925-292-8667 www.kmkcontracting.com PROPERTY MAINTENANCE SOFTWARE

LITIGATION SUPPORT SERVICES

SpottCheck Consulting Susan Spott 510-816-1452 www.spottcheck.com LOCKSMITH EVICTION SERVICES

Golden Gate Locksmith Co Ralph Scott 510-654-2677 kgglocksmith@yahoo.com Axiometrics Inc. Amy Wolff Sorter 469-621-9669 asorter@axiometrics.com PAINT

BEHR Paint Nick Mounts 415-416-0994 www.behr.com The Sherwin-Williams Co. Sean Callahan 925-932-3363 x134 www.sherwin-williams.com PEST & VECTOR CONTROL

Alameda Co. Vector Control Services Daniel Wilson 510-567-6826 daniel.wilson@acgov.org California American Exterminator Tami Stuparich 831-338-4800 www.calamericanext.com Terminix Robert Sater 510-489-8689 www.terminix.com Times Up Termite Mike Barker 510-568-7200 www.timesuptermite.com PLUMBING/WATER HEATERS

Albert Nahman Plumbing & Heating Albert Nahman 510-843-6904 www.albertnahmanplumbing.com

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SYNCrew John Cranston 415-968-1593 www.syncrew.com PROPERTY MAINTENANCE SUPPLIES

Ferguson Enterprises, Inc. Jermane Griffin 916-752-7608 jermane.griffin@ferguson.com PROPERTY MANAGEMENT

MARKET RESEARCH

48 RENTAL HOUSING

Frank Bonetti Plumbing Dan Bonetti 510-582-0934 www.bonettiplumbing.com L. J. Kruse Co. Janell Yates 510-644-0260 www.ljkruse.com Roto-Rooter Martin Alvarez 510-755-1262 sanactma@aol.com

ebrha.com

Advent Properties, Inc. Benjamin Scott 510-289-1184 www.adventpropertiesinc.com Bay Property Group Daniel Bornstein 510-836-0110 www.baypropertygroup.com Beacon Properties Carlon Tanner 510-428-1864 www.beaconprop.com Canyon Pacific Management Tom Scripps 415-495-4739 www.canyonpacific.com Cedar Properties Jonathan Weldon 510-834-0782 www.cedarproperties.com Crane Management Kit Crane 510-918-2306 www.cranemanagment.net The Enterprise Company William McLetchie 510-444-0876 ERI Property Management Terrence Sims 510-883-7070 www.erirentals.com Lapham Company Jon M. Shahoian 510-594-7600 www.laphamcompany.com

Marquardt Property Management Karen or Judi Marquardt 510-530-2050 www.mpmoakland.com OMM Inc./Mason Management Janice Mason 510-522-8074 www.ommhomes.com Premium Properties Sam Sorokin 510-594-0794 www.premiumpd.com Seville Real Estate and Management Maya Clark 510-610-7699 www.homesbyseville.com Shaw Properties Judy Shaw 510-665-4350 www.shawprop.com Sphinx Property Management Jon Goree 510-798-9299 www.sphinxpm.com Wellington Property Company Jillian Loh 510-338-0588 www.wellingtonpropertyco.com Woodminster Property Management Nicholas Drobocky 510-336-0202 www.woodminstermanagement.com PROPERTY MANAGEMENT SOFTWARE

NWP Services Corporation Kyle Gambrell 949-253-3262 www.nwp.com On-Site Janis Rossi 408-795-4167 www.on-site.com Seville Real Estate and Management Maya Clark 510-610-7699 www.homesbyseville.com REAL ESTATE BROKERS & AGENTS

Advent Properties, Inc. Benjamin Scott 510-289-1184 www.adventpropertiesinc.com ARA Pacific Mike Colhoun 415-273-2177 www.arausa.com Better Homes Realty Rene Mendieta 510-388-4092 rmendieta@att.net Caldecott Properties Andy Read 510-594-2400 www.caldecott.com CBRE Keith Manson 510-874-1919 www.cbre.com Coldwell Banker – Apartment Specialist John Caronna 925-253-4648 www.eastbayIREA.com Coldwell Banker Commercial Henry Ohlmeyer 925-831-3390 www.coldwellbanker.com

vendor directory Edrington & Associates Steven Edrington 510-749-4880 sedrington@msn.com Lapham Company Tsegab Assefa 510-594-0643 www.laphamcompany.com Litton/Fuller Group Luke Blacklidge 510-548-4801, x130 www.littonfullergroup.com Marcus & Millichap Eli Davidson 510-379-1280 eli.davidson@marcusmillichap.com Marcus & Millichap David Wolfe 510-379-1200 www.marcusmillichap.com NAI Northern California Grant Chappell 510-336-4721 www.naikilpatrick.com The Prinza Group Steven Pinza 510-725-4775 www.pinzagroup.com Property Counselors Link Corkery, Inc. Link Corkery 510-886-1212 www.pclclink.com Red Oak Realty Vanessa Bergmark 510-292-2000 vanessa@redoakrealty.com Seville Real Estate and Management Maya Clark 510-610-7699 www.homesbyseville.com Six Degrees Realty Stephanie Christmas 510-461-4663 www.stephaniechristmas.com Woodminster Real Estate Co Inc. Nicholas Drobocky 510-336-0202 www.woodminsterrealty.com RECYCLING/REUSE

Urban Ore Marylou Van 510-841-7283 www.urbanore.com RENT CONTROL CONSULTANTS

Alan K. Beales 510-339-9776 Bay Property Group Cristian Villarreal 510-474-7404 cristian@baypropertygroup.com Edrington & Associates Steven Edrington 510-749-4880 sedrington@msn.com Liz Hart 510-813-5440 liz.hart1801@gmail.com RENTAL SERVICES

Hamilton Properties Bay Area Delesha Hamilton 404-606-2141 www.hamiltonpropertiesbayarea.com

Caldecott Properties Julie Keys 510-225-9244 www.caldecott.com ROOFERS

A-One Construction Shari Alexander 510-347-5400 www.a-oneconstruction.com Fidelity Roof Company Doug Kellor 510-547-6330 www.fidelityroof.com Frank Fiala Roofing Frank Fiala 510-582-6929 www.ffialaroofing.com General Roofing Company Michael Wakerling 510-536-3356 www.generalroof.com SECURITY/ SURVEILLANCE

ADT Security Systems Bobby Augusto 925-222-8034 www.adt.com Detect All Security & Fire Amy Roither 510-835-4100 www.detectall.com R & S Overhead Garage Door Sean Boatright 510-483-9700, x14 www.rsdoors.com SEISMIC CONSTRUCTION

Adobe Soil & Structures Mark Almeida 510-919-1880 www.adobesoils.com B.A.S.S. Seismic Retrofit D.W. Hamilton 510-919-0046 www.bassseismicretrofit.com West Coast Premier Construction, Inc. Homy Sikaroudi 510-271-0950 www.wcpc-inc.com SEISMIC ENGINEERING

Earthquake & Structures, Inc. B.K. Paul 510-601-1065 www.esiengineers.com W. Charles Perry & Associates W. Charles Perry 650-638-9546 www.wcharlesperry.com SOLAR ENERGY

Eco Electric James Young 415-384-8526 www.ecopwr.net Sun Light & Power Martin Morehouse 510-809-3686 martin@sunlightandpower.com SUBMETERING

NWP Services Corporation Kyle Gambrell 949-253-3262 www.nwp.com

TENANT SCREENING SERVICE

Contemporary Information Corp. (CIC) Dan Firestone 888-232-3822 www.continfo.com TOWING SERVICE

Ken Betts Towing Services Ayub Azam 510-532-5000 www.kenbettscompany.com PPI Towing Stephanie Gipson 510-533-9600 www.ppitowing.net TREE SERVICE

Bartlett Tree Experts Tony DeMola 925-934-6306 www.bartlett.com Coastal Tree Service Hans Waller 510-693-4631 www.coastaltreeservice.com TUB, TILE & COUNTERTOP REFINISHING

Discovery Coatings Gargie Balarbar 415-971-8207 www.discoverycoatings.com UTILITY MANAGEMENT

NWP Services Corporation Kyle Gambrell 949-253-3262 www.nwp.com VETERANS SERVICE ORGANIZATION

Swords to Plowshares Norman Thomas 510-844-7500 www.swords-to-plowshares.org WASTE & COMPOST COLLECTION

Bay Area Bin Support Nancy Fiame 888-920-BINS www.bayareabinsupport.com Bay Area Waste Services Peter Gella 510-788-0462 www.bawaste.com Waste Management Company Karen Stern 510-430-8509 www.wastemanagement.com WATER HEATERS

Water Heaters Only, Inc. Yana Carpenter 800-835-5946 www.waterheatersonly.com WATER MANAGEMENT

HydroPoint Data Systems Dominique Perry 707-285-3233 www.hydropoint.com WINDOWS

SGK Home Solutions Vladmir Merabian 408-264-6964 www.sgkhomesolutions.com Urban Ore Marylou Van 510-841-7283 www.urbanore.com ebrha.com

|

JUNE 2016

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RENTAL HOUSING 49

ad index

PRODUCTS & SERVICES APPLIANCE PARTS & SALES

Appliance Parts Distributor. . . . . . . . . . . . . 51

Local Knowledge, Local Advocacy, Local Support When You Need It

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Bornstein & Bornstein. . . . . . . . . . . . . . . . . . 39 The Evictors. . . . . . . . . . . . . . . . . . . . . . . . . . 43 Fried & Williams LLP. . . . . . . . . . . . . . . . . . . 31 BUILDING MATERIALS/HARDWARE

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Bay Area Contract Carpets, Inc.. . . . . . . . . 41

EAST BAY RENTAL HOUSING ASSOCIATION (EBRHA) is a nonprofit trade organization representing owners and managers of apartments, condominiums, duplexes, single-family homes and other types of rental housing. EBRHA members range in size from small investors with just one property to large property management companies that own or manage hundreds of units.

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West Coast Premier Construction. . . . . . . 37 ENGINEERS

Earthquake and Structures, Inc.. . . . . . . . . 39 West Coast Premier Construction. . . . . . . 37 INSURANCE COMPANIES

Jain Williams—State Farm. . . . . . . . . . . . . . 37 KITCHENS AND BATHROOMS

American Bath. . . . . . . . . . . . . . . . . . . . . . . . 31 Sincere Home Decor. . . . . . . . . . . . . . . . . . . . 3 LAUNDRY

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n Property management advice by phone or in person n Tenant screening service (application/report fees apply) n Annually updated legal forms, including forms online 24/7 n Monthly workshops on new laws, rental agreements, security deposits, legal notices, fair housing, rent control, and more n Vendor directory of local businesses that offer exclusive member discounts n Annual trade expo and networking mixers n Monthly educational membership meetings n Community outreach and education n Local and state lobbying n An active and growing Legal Action Fund and Political Action Committee n Subscription to Rental Housing and units n Membership with the National Apartment Association and CalRHA

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JPMorgan Chase Bank. . . . . . . . . . . . . . . . . 33 PLUMBING

Albert Nahman Plumbing . . . . . . . . . . . . . . 41 PROPERTY MANAGEMENT

Maisel Property Management. . . . . . . . . . . 17 PROPERTY MANAGEMENT & SALES

Bay Property Group . . . . . . . . . . . . . . . . . . . 39 Beacon Properties. . . . . . . . . . . . . . . . . . . . . 39 REAL ESTATE BROKERS

John Caronna—Coldwell Banker. . . . . . . . . . 7 RECYCLING

Oakland Recycles . . . . . . . . . . . . . . . . . . . . . . 5 RENT BOARD CONSULTANTS

Liz Hart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 ROOFING SERVICES

Frank Fiala Roofing. . . . . . . . . . . . . . . . . . . . 41 General Roofing Co. . . . . . . . . . . . . . . . . . . . 37 WATERPROOFING

Applied Waterproofing Systems . . . . . . . . 43 WASTE & COMPOST COLLECTION

Bay Area Bin Support. . . . . . . . . . . . . . . . . . . 9 WINDOWS, DOORS & SIDING

JOIN TODAY! CALL 510-893-9873 OR GO TO WWW.EBRHA.COM/JOIN 50 RENTAL HOUSING

| JUNE 2016 |

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SGK Solutions.. . . . . . . . . . . . . . . . . . . . . . . . 19 Acceptance of an advertisement by this magazine does not necessarily constitute any endorsement or recommendation by EBRHA, express or implied, of the advertiser or any goods or services offered.

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SAVE THE DATE

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Trade Expo Wednesday, September 28, 2016 3:00 - 7:00 p.m.

Greek Orthodox Church 4700 Lincoln Ave., Oakland

Presented by the East Bay Rental Housing Association

n Free Workshops n Vendor Fair n Free Parking n Oktoberfest Reception

Sponsored by

Register today at www.ebrha.com/expo To exhibit, contact Tina Bocheff at 510-318-8303 or tbocheff@ebrha.com