Southern California Rental Housing Association Rental Advisor Magazine - April 2023

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2023 EXECUTIVE OFFICERS

President

Vice President

Todd Henderson, Independent Owner

Secretary

Natasha Howell, Independent Owner

Treasurer

Buck Buchanan, Independent Owner

Legislative Chair Greystar

Immediate Past President

Lucinda Lilley, CPM®, CAPS®, GRI®, Bridging In uence

2023 DIRECTORS

Abigail Rex, CPM®, ARM®, American Assets Trust

Alex Winborn, H.G. Fenton Company

Jay Lopeman, CAS®, AZP Multifamily

Jennifer Ford, Douglas Allred Company

Kimmi McBryde, Cushman & Wake eld

Mark Feinberg, Heinz & Feinberg

Matt Ruane, Liberty Military Housing

Natasha Howell, Millcreek, WTS

Shannon Kelly, Independent Owner

Todd Henderson, Independent Owner

MAGAZINE STAFF

Publisher Apartment News Publications, Inc.

Design & Layout Travis Watson, Production Director Editorial Review Lindsey Lee, Marketing Manager

ASSOCIATION STAFF

Alan Pentico, CAE, Executive Director apentico@socalrha.org 858.278.8070

Olivia Galvez, Director of Business Operations/Operational Advice ogalvez@socalrha.org 858.751.2217

Molly Kirkland, mkirkland@socalrha.org 858.751.2200

Kim Zebroski, kzebroski@socalrha.org 858.751.2220

Lorna R. Kindred, Education Manager lkindred@socalrha.org 858.751.2219

Lindsey Lee, Marketing Manager llee@socalrha.org 858.751.2218

Alma Macias, Operational Advisor amacias@socalrha.org 858.278.8070

HONORARY LIFE ADVISOR

Wesley Harker

Our Address

Southern California Rental Housing Association

Toll Free: 888.762.7313

Fax: 888.871.5229 socalrha.org

Southern California Rental Housing Association Rental Advisor Magazine is published by the San Diego Multi-Housing Corporation (SDMHC) a wholly owned subsidiary of the Southern

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OUR VISION

Reenvisioning quality housing for all OUR MISSION

To create a thriving rental housing community through advocacy, education, and collaboration

SCRHA Housing Provider & Resident Rights and Responsibilities

As members of the Southern California Rental Housing Association, we are partners in creating a thriving community by providing quality rental housing for all. We value our residents, our fellow members, and our community and are working to support a healthy housing ecosystem through advocacy, education, and collaboration.

As housing providers, we believe we have the responsibility to provide California renters with:

Quality housing with habitable and healthy living conditions. Freedom from arbitrary eviction, retaliation, or discrimination in line with all federal and state fair housing laws.

Fair and equal resident protections and policies that balance the needs of renters, housing providers, and the community. A voice in housing decisions with respect and access equal to that of housing providers.

An innovative and collaborative housing ecosystem where government, businesses, housing providers, and rental advocates work together to solve the region’s housing issues by identifying the underlying problems and crafting balanced solutions.

Adherence to housing quality and equity standards and regulations.

All California renters also have a responsibility to their housing provider to:

Review and follow rental agreement terms, including timely rental payments. Maintain a clean and habitable home. Be a good neighbor by respecting others’ peace and quiet. Provide timely reporting of any issues and necessary repairs. Keep open lines of communication with the property owner or manager.

Aiesha Blevins

2023 President Southern California Rental Housing Association

President’s Message: The Key to Our Strength

Ihope this message finds you all doing well. As you know, Southern California Rental Housing Association is dedicated to promoting and advancing the rental housing industry to fulfill our vision of providing quality housing for all A key part of our strength is a foundation built on strong relationships with one another SCRHA hosts several events throughout the year that give our members the opportunity to build those relationships .

This is an exciting year, and the Events and Education Committees are working hard to fill our calendar with new events and relevant classes . If you couldn’t make the sold-out NextGen Bowling Tournament on May 22, I hope to see you at the Salsa Competition in May or the Wine Tasting in June These new events allow owners and property managers to relax and connect in a fun setting .

However, with all the new events, we haven’t forgotten the Innovations Rental Housing Conference & EXPO on April 27 or the Golf Classic on June 2 . Both events are very popular and give sponsors a chance to meet with enthusiastic attendees from Southern California .

To make these events successful, we need your help . Volunteers are crucial in ensuring everything runs smoothly, and attendees have a great experience . If you would like to share your time and talents, our Education and Events Committees welcome new volunteers ready to contribute to the success of our events

I understand that everyone has busy schedules, but volunteering is a great way to give back to our community and network with fellow members You will for sure gain a broader perspective of the association does for its members . It’s also an opportunity to showcase your skills and expertise in a different context, which can be valuable for your professional development

I encourage each and every one of you to consider volunteering your time for our upcoming events . Your contributions will be greatly appreciated, and you’ll have the satisfaction of knowing that you’ve helped make a difference in our industry.

Thank you for your ongoing support, and I look forward to seeing you at our next event

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Alan

Pentico, CAE

Executive Director Southern California Rental Housing Association

Executive Director’s Message: Stay

Engaged with SCRHA

Southern California Rental Housing Association takes great pride in our storied history that dates back to September 1919 Over many decades, we have dedicated our efforts to representing the interests of the rental housing community and providing a full suite of resources to support the industry .

We continue to answer the call to advocate for our members at all levels of government while continuing to provide top-level service for all of our members . With the ever-increasing attacks on your property rights each year, the Association is always looking for new ways to better manage dues to ensure we can continue to fight back. As members, you all entrust the Association to spread your member dues as far as we can stretch them while protecting your investments . With that in mind, one option SCRHA is exploring is moving to annual dues renewal versus our current anniversary system

Right now, your membership renewal date falls on the anniversary of the day you joined the Association With the current system, if you join on April 1, 2023, your membership renews the following year on April 1, 2024 . If we move to the proposed system, all memberships will renew in the same month, which may be different from your traditional anniversary month . This change will help SCRHA have a better understanding of our revenue for the year As you can imagine, fewer join the Association around the holidays or tax season, resulting in lower revenue at those times. Many non-profit organizations have already moved in this direction, enough to merit our consideration .

This change will help sustain SCRHA and ensure our long-term viability as operating costs increase, and legislative challenges multiply . Not only will this change make it easier for you to renew on time, but it will also help SCRHA invest in resources and services for the benefit of all members. From adding new networking events and educational seminars to our robust advocacy efforts, this change will ultimately create a more vibrant and active community of rental housing professionals .

The SCRHA Board of Directors is carefully considering this matter, and we’d like to hear your thoughts as discussions continue . If you have questions or concerns, please call us at 858 278 8070 or email info@socalrha org

This year, SCRHA has focused on member engagement at in-person events as the world transitions away from pandemic business models As I’ve met with our members at committee meetings, classes, or events, I keep hearing that many members are excited to return to in-person events . With this feedback, SCRHA is planning many events focused on networking and development in a relaxed and fun atmosphere If you haven’t already visited our events calendar, I encourage you to do so to sign up for upcoming events, including the Golf Classic and Wine Tasting in June .

I look forward to seeing you at the Innovations Rental Housing Conference & EXPO on April 27! If you still need to register, sign up today . The Education and Events Committees have been planning a day with inspiring speakers, a tradeshow with 75+ exhibitors, prize giveaways, and tours of the new Snapdragon Stadium! You don’t want to miss the fun

In Ca s e You Mi s sed It! R ece n t U pd at es from SCRH A

San Diego County and City Emergency Orders Ended

Keeping in line with the end of the state COVID-19 emergency, the County and City emergencies have been ended. This is Moratorium for non-payment of rent due to COVID hardship emergency has ended, which is the end of April 2023.

National Apartment Association (NAA) to Take Lead on Tenant Screening Feedback; Warns of Heightened Scrutiny of Fees Due to New HUD Guidance

On February 28, the Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB) issued a joint Request for Information (RFI) seeking “to identify practices that unfairly prevent applicants and tenants from accessing or staying in housing in order to inform enforcement and policy actions under each agency’s jurisdiction.” SCRHA immediately reached White House Blueprint for a Renters Bill of Rights, something that NAA has been actively engaging with for some time. NAA will ask for members’ perspectives and submit comments on the industry’s behalf. Stay tuned for more instructions on how to share your perspective with NAA.

NAA is also warning members that there could be heightened scrutiny regarding fees and rents due to new Housing & Urban Development (HUD) best practices that seek to eliminate “junk fees.” Secretary Marcia Fudge is urging housing providers and companies that provide leasing services to adopt policies that promote fairness and transparency. Suggestions include eliminating or limiting screening fees and furthering the use of reusable screening reports. NAA continues to push back on expanded federal intervention in the landlord/tenant relationship.

ICYMI: CalRHA, SCRHA Push Back on Eviction Narrative

When asked the likelihood of an eviction for non-payment of rent, with only 19 percent “Somewhat likely” compared to 24 percent for the rest of the country.

City of San Diego Climate Action Plan Implantation Framework

On the heels of two lawsuits that allege the city is not doing enough to achieve goals in the Climate Action Plan, the City’s Environment Committee on Thursday, March 9, will be presented with a new implementation plan for reducing greenhouse gas emissions. SCRHA is tracking the plan, which seems to prioritize the area titled “Decarbonize Existing Buildings.” This includes expanding enforcement of the city’s Benchmarking Ordinance and identifying funding sources for residential weatherization,

will need $30 million to achieve the overall plan goals. SCRHA is concerned with the potential costs to property owners and will continue to monitor the implementation plan, which is currently set to go to the full council on April 11.

Chula Vista Termination of Tenancy Forms Pending Publishing of City’s Administrative Regulations

Tenancy forms. However, at the time of writing this, the City of Chula Vista had yet to publish the necessary Administrative Regulations for SCRHA to adequately advise members on how to comply

such as where to submit copies of the notices. SCRHA will notify members as soon as the regulations are posted, when the forms are available, and update the website with more information.

Storms Trigger 10% Rent Cap/Anti-Price Gouging Rules in Imperial County

Governor Newsom declared emergencies in over 40 counties as a result of recent storms. Rent increases in those counties will be limited to no more than 10% even for properties exempt from the state rent cap and at turnover. The emergency is set to end on April 11, 2023, but could be extended. See the full list of price gouging protections in place and to learn more about Penal Code 396

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Property owners MAY NOT deny or terminate tenancy because a resident has one.

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BE PREPARED FOR THE EARTHQUAKE BEAST!

GEOLOGIC AND STRUCTURAL RISKS MAKE APARTMENT BUILDINGS VULNERABLE

by Ali Sahabi, Optimum Seismic

Before the massive earthquakes in Turkey and Syria, many Californians felt confident that they knew enough about earthquakes But after 50,000 people died in these quakes, many people are asking a straight forward question: “Can similar earthquakes happen in San Diego or other areas of California?”

Experts offer a short answer. “Yes, it can.” California has earthquake faults of similar type and size as were involved in the Turkey / Syria quakes . We also have similar types of buildings, but our construction and inspection is more thorough

So how much do we really know about the earthquake risks we face? Understanding the reality of these threats is important, particularly when apartment buildings and other properties are essential to your livelihood Wonder how much you really know? Try taking this little quiz, for starters .

1. What is the most dangerous region in the United States for projected earthquake loss?

a . Seattle

b Charleston, S C

c Los Angeles

d San Diego

2. What are the odds that a major earthquake will strike in the next 30 years?

a 99 7% chance of a quake equal to or larger than Northridge hitting California

b 59% chance of such a quake (6 7 magnitude) striking the southern San Andreas

c . 46% likelihood of a magnitude 7 hitting L .A .

d . 31% chance of a magnitude 7 .5 – a colossal

quake – striking Los Angeles

3. How many buildings would be damaged in a 7.8 earthquake, according to the USGS?

a 1 in 8

b 1 in 16

c . 1 in 350

d . 1 in 1,500

4. What is the No. 1 earthquake risk factor for soft-story apartments and comemrcialbuildings?

a Number of stories

b Proximity to an earthquake fault

c . Year of construction

d . Soils composition

5. Soil condition is another indicator of earthquake hazard. Which of these presents the highest risk?

a Solid bedrock

b Sandstone

c Alluvial soils

d . Mud

ANSWERS:

1 . C. FEMA’s annualized earthquake loss risk projections put these regions at the top of the list:

(1) Los Angeles/Long Beach/Anaheim; (2) San Francisco/Oakland/Hayward; (3) Riverside/San Bernardino/Ontario; (4) San Jose/Sunnyvale/Santa Clara; (5) Seattle/Tacoma/Bellevue; (6) Portland/ Vancouver/Hillsboro; (7) San Diego/Carlsbad; (8) Oxnard/Thousand Oaks/Ventura; (9) Santa Rosa; and (10) Charleston . With a #7 national ranking, San Diego/Carlsbad is the fifth highest loss risk projection in California

2 . All of the above. (Yes, it was a trick question .) The numbers vary, based on location and magnitude . The most comprehensive statewide analysis of earthquake probabilities determined that the chance of having one or more magnitude 6 .7 or larger earthquakes in California over the next 30 years is 99 7%, according to the U S Geological Survey The fault with the highest probability of such earthquakes is the southern San Andreas — 59% in the next 30 years For powerful quakes of magnitude 7 5 or greater, there is a 37% chance that one or more will occur in the next 30 years in Southern California, according to the Earthquake Country Alliance, an organization comprised of the National Earthquake Hazards Reduction Program, the Federal Emergency Management Agency, the California Governor’s Office of Emergency Services, and the Southern California Earthquake Center

3 B. The detailed scientific assessment by the USGS of the likely damage in a big San Andreas earthquake in Southern California estimated that 300,000 buildings in southern California would be damaged at a moderate level (losing at least 10% the value of the building) as modeled in the M7 8 ShakeOut scenario earthquake . This represents 1 out of every 16 buildings in the region .

4 . C . The fatal collapse of the Northridge Meadows apartment complex in 1994 revealed serious design flaws in soft-story buildings constructed before 1978.

5 C Hard ground propels the seismic energy quickly with a small amplitude, while soft ground slows the energy down and increases the amplitude or severity of the motion The USGS ranks the following soil types for susceptibility to strong ground movement from an earthquake, with solid bedrock (both igneous and volcanic) as the least susceptible, and alluvial soils and artificial fill as the most.

There are many factors San Diego apartment owners should consider when weighing their earthquake risks and the benefits of fortifying their buildings. If you have questions, contact Optimum Seismic at 833978-7664 to arrange a complimentary consultation

Recently appointed to Los Angeles Mayor Karen Bass’ Transition Team, Ali Sahabi, previously received the California Governor’s Environmental and Economic Leadership Award for taking a sustainable approach toward community development and environmental restoration in the 543acre Dos Lagos mixed-use development in Corona, CA A licensed General Engineering Contractor (GEC), Sahabi is an expert in building resilience and sustainability He is Co-Founder and Chief Operating Officer of Optimum Seismic, Inc , which has completed more than 3,500 structural retrofit and adaptive reuse projects for multifamily residential, commercial, and industrial buildings throughout California .

CALL FOR NOMINATIONS

Recognize excellence in rental housing by submitting a nomination for the 2023 Mark of Excellence Awards.

Nominations close on June 19, 2023.

Mark of Excellence Awards Ceremony

San Diego, California

SOCALRHA.ORG

Welcome New Members

PROPERTY MANAGERS

CELEBRATI NG an ANNIVERSARY This Month 10+ years of membership

Arrive Clairemont | Trinity

ReNew Serra Mesa | Trinity

INDEPENDENT OWNERS

Amr Hamdy

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Cracker Factory LLC

Davis Rental

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NAJAR PROPERTIES LLC

Pacific Sunset Group

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TWS

CAPITOL NEWS California

By Aaron Reed & Associates, SCRHA's Lobbyist

CalRHA has taken positions on key policy bills introduced this year Bills are beginning to be set for policy committee hearings and CalRHA has scheduled a Lobby Day in Sacramento for April 2023 Below, please find top priorities for the year so far:

As the Legislature moves into full gear the SCRHA continues to review legislation and take positions on bills important to the industry. The SCRHA also continues to participate in the discussion surrounding the state’s rental repayment program and is working on clean-up legislation to SB 91, the COVID-19 Tenant Relief Act. While the focus has been on SB 91 and its implementation (and rightfully so) other bills are being introduced that impact the rental housing industry.

accommodations from the market. Finally, AB 854 would add penalties for violations of the law — $2,000 for each violation and attorney’s fees and costs in an amount fixed by the court.

LEGISLATION CALRHA IS OPPOSING - TOP THREATS

AB 854 (Lee, D-San Jose) is another Ellis Act bill (one of many we have seen over the last few years) that would prohibit rental housing providers in rent control jurisdictions from using the Ellis Act to terminate tenancies and exit the rental market until all owners of the property have held their ownership interest for five years or more.

AB 919 (Kalra, D - San Jose) Sale of Rental Properties: First Right of Offer - Would require an owner of residential real property, defined to include a single-family residential property that is occupied by a tenant or a multifamily residential property to take various actions before offering the residential real property for sale to any purchaser, soliciting any offer to purchase the residential real property, or otherwise entering into a contract for sale of the residential real property . The bill would exempt certain transfers of a residential real property from its provisions, including, among others, a transfer between spouses, domestic partners, parent and child, siblings, grandparent and grandchild, a transfer pursuant to a court order, and a transfer by eminent domain .

The bill would also prohibit an owner from using the Ellis Act if the owner subsequently purchases a property within 10-years of filing the notice of intent to withdraw the property from the market. Moreover, it would require an owner to identify all persons or entities with an ownership interest in the property when the owner plans to withdraw

SB 466 (Wahab, D-Fremont) - Costa-Hawkins

Rental Housing Act – Existing law, the Costa-Hawkins Rental Housing Act, prescribes statewide limits on the

According to the author, the bill is aimed at stopping speculators from buying rent-controlled properties and then using the Ellis Act to remove the residents. The young legislator does not understand that his bill would tie all rental housing providers, including small owners, to money-losing ventures.

You may recall that Senator Mark Leno proposed a similar bill in 2015 which was defeated by the SCRHA and other rental housing organizations. We will try to do the same to this one.

Legislation introduced last week aims to tax property owners for the “privilege” of providing rental homes and create a searchable database of certain rental properties. AB 1199 (Gipson, D-Los Angeles) would impose an annual excise tax upon a person or entity owning 10 or more multifamily or single-family rental properties. The tax rate would be based on the gross receipts of the rental income, an amount yet undefined. The bill also would create a Homes for

application of local rent control with regard to certain properties . The act generally authorizes an owner of residential real property to establish the initial rental rate for a dwelling or unit, except in specified circumstances, including, (1) when the residential real property has a certificate of occupancy issued after February 1, 1995, (2) when the residential real property has already been exempt from the residential rent control ordinance of a public entity on or before February 1, 1995, pursuant to a local exemption for newly constructed units, and (3) when the residential real property is alienable and separate from title to any other dwelling units, except as specified. SB 466 would instead authorize an owner of residential real property to establish the initial rental rate for a dwelling or unit when the residential real property has been issued a certificate of occupancy issued within the 15 years preceding the date on which the owner seeks to establish a rental rate under these provisions . SB 466 would also remove the above-described authorizations for an owner of residential real property to establish the initial rental rate if the residential real property (1) has already been exempt from the residential rent control pursuant to an ordinance of a public entity on or before February 1, 1995, and (2) when the residential real property is alienable and separate from title to any other dwelling units . As reported previously, there is also an initiative that is in circulation for the 2024 ballot that would repeal Costa-Hawkins .

Please turn to page 23

Continued from page 20

SB 567 (Durazo, D-Los Angeles) - Tenancy - Spot bill that is intended to change the statute for no-fault just cause evictions, expand the population of protected tenants, and lower the annual rent cap .

ADDITIONAL LEGISLATION CALRHA IS OPPOSING

AB 12 (Haney, D-San Francisco) - Tenancy: Security Deposits - Would prohibit a landlord from receiving a security deposit for a rental agreement in an amount in excess of one month’s rent, regardless of whether the residential property is unfurnished or furnished .

AB 309 (Lee, D-Milpitas) - Social Housing - This bill would define “social housing” for purposes of the Zenovich-Moscone-Chacon Housing and Home Finance Act, and make findings and declarations relating to social housing and would state the intent of the Legislature is to further the Social Housing Act to address the shortage of affordable homes by developing housing for people of all income levels, prioritizing low-income households .

AB 1035 (Muratsuchi, D - Torrance) - Mobile Home Parks Rent Caps - Would prohibit the management of a mobilehome park from increasing the gross rental rate for a tenancy for a mobile home space more than 3% plus the percentage change in the cost of living, as defined, over the course of any 12-month period, as specified.

AB 1097 (L. Rivas, D-Arleta) - Credit History of Persons Receiving Government Rent Subsidies - Would require housing providers to consider alternative evidence in lieu of the person’s credit history in determining rental accommodations .

AB 1317 (Carillo, D - LA) - Unbundled ParkingWould require the owner of residential real property that provides parking with a residential unit to unbundle parking from the price of rent (“unbundled parking” selling or leasing parking spaces separate from the lease of the residential use)

ACA 1 (Aguiar-Curry, D-Woodland) - Lowering of Voter Threshold - Local government financing: affordable housing and public infrastructure: voter approval - Would lower the necessary voter threshold from a two-thirds supermajority to 55 percent to approve local general obligation (GO) bonds and special taxes for affordable housing and public infrastructure projects

SB 267 (Eggman, D-Stockton) - Credit History of Persons Receiving Government Rent Subsidies

- Would prohibit the use of a person’s credit history as part of the application process for a rental housing accommodation without offering the applicant the option of providing alternative evidence of financial responsibility and ability to pay in instances in which there is a government rent subsidy and would require that the housing provider consider that alternative evidence in lieu of the person’s credit history

SB 395 (Wahab, D-Fremont) - Statewide eviction database - Would state the intent of the Legislature to enact subsequent legislation that would require landlords to report all evictions to a new statewide eviction reporting database .

SB 460 (Wahab, D-Fremont) - Hiring of real property: Criminal History - This is a reintroduction of ban-thebox legislation and would prohibit a housing provider from inquiring about an applicant’s criminal history, requiring an applicant to disclose their criminal history, or requiring an applicant to authorize the release of their criminal history, or basing any adverse action on information contained in an applicant’s criminal history, unless they are complying with federal law .

LEGISLATION CALRHA IS SUPPORTING

AB 42 (Ramos, D - San Bernardino) ADU Sprinkler Requirements - Current law prohibits a local agency from requiring an accessory dwelling unit to provide fire sprinklers, if they are not required for the primary residence This bill would prohibit a local agency from imposing or enforcing any requirement to provide fire sprinklers for any dwelling with a total floor area of less than 500 square feet .

AB 932 (Ting, D-San Francisco) - Junior ADU: Application Approval Time - Would streamline ADU applications from 60-days to 45-days

AB 1505 (Rodriguez, D-Chino) - Seismic Retrofit: Soft Story Multifamily Housing - Would direct $250 million from the General Fund for seismic retrofit for multifamily housing

SB 569 (Glazer, D-Orinda) - Renter’s Tax CreditWould require that the Franchise Tax Board recompute the renters tax credit for inflation and refund for tax years 2023-2028

As always, CalRHA will keep you informed as these bills make their way through the Legislature We will be sure to send out Calls to Action when we are at a pivotal juncture and your involvement could help determine the outcome .

CALENDAR

CALENDAR Register at socalrha.org

Register for events and classes online at socalrha.org. Please note, that all in-person classes

Register for events and classes online at socalrha.org. Please note, that all in-person classes

April 10-14

Questions? Contact us at events@socalrha.org or 858.278.8070

Questions? Contact us at events@socalrha.org or 858.278.8070.

April 7

9:00A - 12:00P

Supplier Success Course (CAS Prerequisite)

This session is designed to provide you with the tools necessary to build relationships with members of the apartment industry, thereby increasing your possibilities for successful sales interactions.

Instructor: Jay Lopeman, CAS, AZP Multifamily

Pricing: $100 SCRHA Members | $175 Non-Members

ICON KEY

Full Series

8:00A - 5:00P

CAM: Certified Apartment Manager

Are you ready to enhance your skills and be the next leader?

It is time to take that leap in the rental housing industry by becoming a Certified Apartment Manager (CAM). Earning your CAM allows you to demonstrate that you have the knowledge and ability to manage an apartment community and achieve owners’ investment goals.

Pricing: $900 SCRHA Members

ICON KEY

ICON KEY

April 10-14

12:30P - 12:30P

CAS - Certified Apartment Supplier Series

Suppliers are important liaisons to the multifamily housing industry. The CAS was specifically designed as an opportunity for suppliers to hear the everyday challenges faced by the apartment manager customer. This program is ideal for new salespeople as well as suppliers who want to advance their career.

$1,100 Non-Members

April 18

Fair Housing Part I & II

9:00A - 4:00P

A staple in the property management industry, this two-part series provides an indepth look for individuals looking for refresher training or for a company looking to train new and seasoned employees. Register today and understand how you can learn valuable tips from a risk management perspective

Instructor: Attorney Susie Lein, Kimball, Tirey, & St. John LLP

$80 SCRHA Members Parts I & II $45 SCRHA Members Part I or Part II

ICON KEY

$160 Non-Members Parts I & II | $90 Non-Members Part I or Part II

April

24

April 19

SCRHA Member Orientation

3:00P - 4:00P

Discover how to maximize the value of your membership during orientation on Wednesday, April 19, 2023

Not only will you meet fellow members and Southern California Rental Housing Association (SCRHA) staff, but you’ll also learn how you can get involved and the full range of resources provided to you! Have questions regarding your new membership? Want to join today? Email: membership@socalrha.org or calling 858 278.8070

Level I Kitchen Appliance Repair

ICON KEY

This class is an overview of the appliances found in a typical residential kitchen, including the range (gas or electric), dishwasher, and garbage disposal.

Pricing: $120 SCRHA Members | $240 SCRHA Non-Members

April 27

2023 Innovations in Rental Housing Education Conference & EXPO

Join us for a day of education, networking, and fun! Registration includes six seminars, 75+ exhibitors, prize giveawayrs, and stadium tours!

April 27

- 5:00P ICON KEY

Maintenance Mania 2023

-

Cheer on your favorite tech during Maintenance Mania at Innovations Rental Housing Conference & EXPO!

CE LE BRATIN G an ANNIVERSARY This Month

CE LE BRATIN G

CE LE BRATIN G

Clairemont Rental Properties

Katherine L. Ries Company

La Casa Bonita Apartments

El Pedregal | Cirrus

CE LE BRATIN G

Robert and Patricia Lijewski

Limoncello

James and Mary Sue Hamilton

Entrada | Greystar

Mary Ann Taylor Company

Clairemont Rental Properties

Sue and Vince Cooke

Katherine L. Ries Company

Marshall Wilson Company

La Casa Bonita Apartments

Ben Gallardo Company

James and Mary Sue Hamilton

Pacific Realty Sales & Management

Mary Ann Taylor Company

Linda Cocking Company

Sue and Vince Cooke

Robert and Rita Konczalski

Marshall Wilson Company

Lockwood Family Trust

Ben Gallardo Company

Tom LeDuc Company

Pacific Realty Sales & Management

Jaswant Toor Company

Linda Cocking Company

Park La Jolla Apartments

Robert and Rita Konczalski

Klein Family Trust

Lockwood Family Trust

David and Susan LaRose

Tom LeDuc Company

Juniper Management

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Pacific View Companies, Inc.

Park La Jolla Apartments

Guava Gardens Apartments

Klein Family Trust

Pacific Commercial Management, Inc

David and Susan LaRose

Nancy Biberacher Company

ADD Realty, Inc.

Sid’s Carpet Barn, Inc.

Juniper Management

Carol G. Swartz Company

Pacific View Companies, Inc.

Suzanne Demong Company

Beryl Westwood Company

PCF Properties

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JHB California Properties, LLC

Pacific Commercial Management, Inc

A & C International

Nancy Biberacher Company

Mark Maeder Company

Sid’s Carpet Barn, Inc.

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Marissa Moncrief Company

Walsh Properties

Carol G. Swartz Trust

Sam’s Heating and Air Conditioning, Inc.

Suzanne Demong Company

Kevin Swartzberg Company

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JHB California Properties, LLC

A & C International

Mark Maeder Company

Apartments.com

Walsh Properties

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Adriano DaSilva, Jr.

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Carl Venstrom Company

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Pajak Properties

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Kevin Swartzberg Company

Caren Urtasun Company

Sue A. Daugherty

Judy Malone Company

Adriano DaSilva, Jr.

Joe Gorst| Richard Nelson

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Harding Street Apartments, LLC

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Workright Property Services Inc

Caren Urtasun Company

Award Property Mgmt

Judy Malone Company

Keith Meeker Company

Joe Gorst| Richard Nelson

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Lance Faucett Company

Workright Property Services Inc

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Henry M. Miller

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Jangan California Properties, LLC

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Glen J. Honig & Norman Weitzberg

Robert Brooks Company

Margherita Cianflone Company

The Stratton | Fairfield Residential

Kevin Fayad Real Estate Services

Josie Hill Company

New Way Landscape and Tree Service

Henry M. Miller

Stelco Investments, Inc.

Jangan California Properties, LLC

Martin D. Coyne

Glen J. Honig & Norman Weitzberg

Michael C. Borden Company

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Dorance and Brenda Aldridge

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Gloria Miller Company

Chris Bushard Company

ASV Management

Stelco Investments, Inc.

FBS Property Management, AMO

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account, or were taken under new ownership, the member will not appear here. If you feel that your membership should be in this contact the publications department at publications@socalrha.org

account, or were taken under new ownership, the member will not appear here. If you feel that your membership should be in this contact the publications department at publications@socalrha.org

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THE CORONAVIRUS PANDEMIC PERMANENTLY DESTROYED OUR PROPERTY RIGHTS

BY STEVEN GREENHUT, CALIFORNIA POLICY CENTER

Idon’t pay particular attention to health scares, so when talk of a spreading pandemic started dominating the news cycle I largely shrugged and went about my business I was staying at a cheap motel in Calexico, taking photos of the New River and the Salton Sea for my book about California water policy, when my wife called from Sacramento and said, “You better get home And I mean now ”

That was the weekend when the shutdowns began . I recall stopping at a grocery store near Modesto, when I noticed meandering lines and a run on toilet paper The rest, as they say, is history Like most people, I never could have predicted the coming shutdown of the economy, government orders to stay at home, an end to restaurant dining and public gatherings, and profligate “relief” payments .

As that (pr obably fake) George Washington quotation put it, “Government is not reason, it is not eloquence – it is force .” Government officials aren’t wiser than the rest of us, so when they tried to deal with a serious public-health problem, they did so

in a forceful, ineloquent and unreasonable manner . Unfortunately, many of its worst approaches leave permanent scars .

In my column last year summarizing lessons from COVID-19, I concluded that it left us as a “nation of rulers, not laws ” American governors – and California Gov . Gavin Newsom in particular – quickly and eagerly used their broad emergency powers to begin issuing edicts . Given the extent of the public-health threat, some of the more modest and temporary ones were understandable, but they bypassed the normal legislative process in cynical and expansive ways

One Republican lawmaker published a 138-page document detailing the 400 laws that Newsom unilaterally imposed or changed – many of them that only tangentially had anything to do with protecting public health . In particular, officials used the crisis to impose policies they already supported but couldn’t get through the normal legislative process .

The worst example involved anti-eviction orders that have literally destroyed our property rights . Virtually

all mom-and-pop landlords depend on the rental income . With one fell swoop, governors (and the federal Centers for Disease Control) declared that tenants no longer had to pay their full rent if they faced a pandemic-related hardship . Sure, landlords could potentially collect rent in the future in civil court, but good luck with that .

In making it virtually impossible to evict non-paying tenants, policymakers imposed the full cost of their public-health plans on individual property owners, who could no longer count on getting a return on their investment Often, property owners have mortgages – and they always have tax and insurance bills . When a heating system or roof leaks, they’re still required (ethically and legally) to make repairs But they no longer could count on receiving rents .

Someone posted my column detailing the plight of landlords on a liberal housing-related news group, and you can probably guess the ensuing negative responses . No landlord I know expects any sympathy given that it’s the type of investment they freely chose .

However, I thought that most people – even renters who have had less-than-stellar rental experiences – might understand that if the government deprives owners of their supposed state constitutional right to a fair return on their investment, fewer people will go into the business and even fewer will upgrade their properties . That helps no one .

The result is obvious: fewer available rentals and fewer rentals in tip-top condition Investing in rental property has always been a prime means for middleclass people to build wealth . My grandfather was

an immigrant paperhanger (remember wallpaper?) who invested in Philadelphia row houses decades ago Now, I talk to many people who won’t dare buy a rental house out of the legitimate fear that the government can suspend rent payments at will Tenants often outnumber owners, especially in larger cities such as Los Angeles . We see groups of activists lobbying for rent controls in Costa Mesa (and previously in Santa Ana) . By eliminating property rights and shifting decisions to city councils (and tenant-dominated rental boards), the government has made owners’ livelihoods dependent on the political system As the saying goes, democracy is two wolves and a sheep voting on what’s for dinner .

Certainly, many cities (San Francisco, Santa Monica, New York) embraced strict rent control long before the pandemic was a thing They largely destroyed their housing markets of course, as renters stayed put in under-market units while investors hightailed it elsewhere . But COVID added a new level of uncertainty . Look at how Los Angeles continually extended its anti-eviction provisions

Any time I hear of a bad flu season or other health scare, I fully expect Newsom and others to return to their COVID-19 anti-eviction playbook . In other words, we no longer have property rights when officials can eliminate them by executive order, legislation or regulatory fiat That is COVID’s lasting legacy – and the lasting result will not be pretty .

This article first appeared in the Orange County Register. Steven Greenhut is Western region director for the R Street Institute and a member of the Southern California News Group editorial board. Write to him at sgreenhut@rstreet.org.

Steven Greenhut is the Western region director for the R Street Institute and an author, speaker, public commentator and coalition ally in venues where it is possible to move state and local policy in a free-market direction . Steven is the author of three books, Abuse of Power: How the Government Misuses Eminent Domain (2004); Plunder! How Public Employee Unions are Raiding Treasuries, Controlling Our Lives and Bankrupting the Nation (2009); and Winning the Water Wars: California Can Meet its Water Needs by Promoting Abundance Rather than Managing Scarcity (2020)

forward-thinking. Now, Gen Z is not as concerned with recreation or downtime at the office, rather a financial investment in their future. However, stock options and a standard 401(k) won’t cut it when they are actually searching for “student loan assistance, tuition reimbursement, and maternity and paternity benefits.” This generation values a work-life balance and is highly optimistic for the future, so these types of benefits will not only attract but also encourage them to stay and take advantage of these opportunities.

They Want to See Diversity and Inclusion

This highly educated, highly diverse generation is craving a passion and dedication to diversity and inclusion from their employers. As a result, “86% of

Gen Z job seekers cite a company’s commitment to diversity as an important factor in deciding whether or not to accept an offer.” Here it is very important for a company to talk the talk and walk the walk. Diversity and inclusion cannot just be a phrase in your company’s mission statement or a committee that meets once a quarter. This dedication needs to be seen in initiatives like asking one’s pronoun preference, adequate accommodations for those who are differently-abled, policies to ensure fair and equal pay, etc.

They Want an Offer, and They Want it NOW

Standard HR procedures make it difficult to establish a hiring committee and follow the correct protocol when extending an offer. Gen Z wants no part of that. They

feel if it’s a right fit, the offer should be made. “Nearly one in five Gen Zers expect a job offer one week from the initial phone screen. The majority expect an offer within two weeks.” Whether this expectation is realistic or not, companies that make an actionable change to speed up their hiring process will win top Gen Z talent.

*Statistics pulled from Yello

Property Insurance Rates Rise Where Climate Change Hits Hardest

by Yardi breeze

Rising insurance costs have become a significant challenge for commercial property owners, particularly in states with increasing climate-related risk such as Florida and Texas . Insurance costs are rising upwards of 50% in some areas, which is starting to threaten new development and property sales

Thi s article explores the problem and provides a possible path to limit rising insurance premiums All stats come from a recent report by Yardi Matrix .

IMPACT OF CLIMATE-RELATED RISKS ON INSURANCE COSTS

Property insurance rates are rising fastest in states facing extreme weather events and natural disasters such as hurricanes, winter freezes and wildfires Hurricane Ian, for example, caused upwards of $50

billion in damages as it ripped through Florida in September 2022 Weather-related payouts have left some insurers insolvent while others are simply avoiding high-risk states . This has led to higher rates and less coverage for property owners

“Reinsurers are running away from Florida,” said Danielle Lombardo, the chair of Lockton Global Real Estate, a New York-based advisory firm “Something has to be done differently ”

THE BIFURCATED INSURANCE MARKET

The insurance market has become bifurcated, with the highest double-digit increases in properties that have negative risk attributes such as older infrastructure, a challenged loss history or undervalued assets Reinsurance companies, which property insurers use to move portions of risk off their own balance sheets, are quitting high-risk states . Those that stay are raising rates by 45% to as much as 100% .

Yardi Matrix expects rates for property insurance in Florida to rise 40-50% in 2023, noting that 100% increases will also be common

REDUCED COVERAGE & LIMITS

Insur ers are providing less coverage for wind damage At the same time, they’re imposing larger deductibles . They’re also implementing new exclusions for certain damages (e g , mold, flood endorsements) and additional limits on payouts .

These changes for ce property owners to layer restrictive policies on top of other policies to reach replacement cost values required by their lenders To complete the picture, rates nationwide are increasing for coastal and non-coastal areas, putting more strain on property owners across the board

THE ROOT OF THE PROBLEM

The growing number of climate catastrophes is at the root of the problem Insured natural catastrophe losses have topped $100 billion in three calendar years since 2017 The extent of these damages is raising concerns that insurers’ models will not keep pace with the growing frequency and severity of catastrophes amid climate change .

OVERINSURED PROPERTIES

Properties are often overinsured to cover extreme, but rare, losses For example, most lenders require full limits for wind coverage or flood coverage for properties in FEMA-designated flood zones Additionally, most lenders require business income coverage for flood losses on top of National Flood Insurance (NFIP) flood coverage . Obtaining compliant flood insurance has proven to be as big a challenge for some property owners as obtaining wind coverage in hurricane-prone states .

A POSSIBLE SOLUTION

Solutions to this problem vary by state and region For example, some advocacy groups are attempting to reduce litigation in Florida, where the law makes it easy to sue insurance companies for damages . The state’s legislature is considering legislation to tighten laws

A bigger issue, industry advocates say, is lender reform . Commercial property lenders usually require owners to carry windstorm insurance for the mortgage balance or even the full value of the property . This is called the insured value of the property

There is another way to calculate insurance costs that could well be a workable solution moving forward: basing coverage and premiums off modeled losses .

INSURED VALUE VS. MODELED LOSSES

Insured value is the amount that the insurance policy will pay out in the event of a covered loss .

Modeled losses are calculated based on the maximum probable loss a property could experience in a worst-case scenario

Advocates suggest that the industry should look at modeled losses instead of insured value because it’s a more accurate way to assess the risks faced by a property By using modeled losses to underwrite insurance policies, insurers can more accurately assess the potential risks faced by a property Then they can tailor policies in accordance with those risks

The use of modeled losses can also help to reduce the property owner’s premium outlay (the amount of the premium to be paid by the policy owner) . By basing premiums on the maximum probable loss rather than the insured value, insurers can offer more competitive pricing to property owners . This becomes particularly important in high-risk states where insurance costs are rising faster than other regions In short, modeled losses can help reduce the financial burden on property owners and make insurance more affordable

WHY CLIMATE CHANGE & RISING INSURANCE RATES MATTER TO PROPERTY MANAGERS

Property managers need to be aware of rising insurance costs and reduced coverage to ensure their properties are adequately covered . In states where property insurance rates are highest, owners and managers may need to find alternatives to traditional insurance policies They should work with lenders to ensure insurance requirements are reasonable and aligned with the actual risks faced by the property

The truth about climate change is harsh, but it’s not something real estate professionals can afford to ignore . All environmental models suggest weatherrelated catastrophes are only going to increase in frequency and devastation . Effective property management means understanding and adapting to a changing climate as well as rising insurance rates .

(619) 867-1713

& GHOSTS

SUING & SERVING REAL ESTATE QUIET TITLE CASES

BY

A“Quiet Title” lawsuit is filed by an owner of real property in court to resolve a problem with real estate title The local county superior court where the property is situated has subject matter jurisdiction to handle this type of case See generally Cal C .C .P. Section 760 .040 (a)-(c) . The case is litigated in the unlimited jurisdiction division of the Court, and is not a small claims case . The California quiet title statute is set forth in Chapter 4 of the Code of Civil Procedure at sections 760 010 to 764 080 The law of quiet title is also controlled by precedent in appellate case law Along with the quiet title lawsuit, the plaintiff is required to record a lis pendens notice at the county recorder’s office to provide notice that an action is pending involving a real estate title dispute . Every owner wants to have a “clean title” without gaps or other problems, and every lender wants to have their deed of trust in the position on title that they expected and bargained for in the prior escrow . The overall objectives of pursuing a quiet title action is to bring in all interested parties that have an interest in the property before the Court, to resolve

the title problem, and to obtain a title for the plaintiff that is marketable and insurable by a title insurance company for a sale or refinance . Both the legal and financial stakes can be high in quiet title litigation because without a clear title the owner cannot sell or refinance, and a lender cannot protect its priority title position

Issues litigated in quiet title actions are numerous and complex, and can involve multiple parties with an interest in the property Hallmark factual examples include a fraudulent transfer of a forged title deed by an unknown third party, an unauthorized deed transfer or encumbrance by a co-owner or business partner, a transfer prior to the filing of a bank foreclosure or bankruptcy that causes a gap or cloud in the chain of title, a lost and unrecorded deed that caused a cloud on title, the recordation of a fraudulent deed or deed of trust that the owner did not authorize, a related partnership dispute, or a dispute about the percentage of equitable ownership Quiet title claims can be brought with other claims, such as fraud or breach of contract The local superior court

Please turn to page 41

Nate Bernstein , Esq ., is the Managing Counsel of LA Real Estate Law Group, and a member of the State Bar of California and his practice concentrates in the areas of complex real estate title litigation, commercial litigation, employment law, and bankruptcy matters Attorney Bernstein served as in house corporate counsel at Fidelity National Title Insurance Company He is a 30 year veteran Los Angeles real estate and business attorney and trial lawyer Mr Bernstein also has expertise in bankruptcy law, the federal bankruptcy court system, creditor’s rights and out of court workout solutions Mr Bernstein created www laquiettitleattorney .com, a leading educational resource on quiet title real estate litigation . LA Real Estate Law Group handles litigation in Los Angeles, Ventura County, Orange County, Inland Empire, and San Diego . For more information or to schedule a professional consultation, please contact the firm at (818) 383-5759, or email natebernstein44@gmail .com .

NATE BERNSTEIN, ESQ.- MANAGING ATTORNEY OF LA REAL ESTATE LAW GROUP

PHANTOMS

griswold

is equipped to adjudicate all of these types of title disputes, and can enter a judgment after trial to provide relief to solve the problem

SUING THE LIVING AND THE DEAD IN QUIET TITLE ACTIONS

Generally, it is relatively easy to determine who to name as a defendant in a quiet title action . The common sense formula is to name any person or entity on the planet that has an actual or potential legal or equitable right, title, estate, lien, and interest in the subject property that is “adverse” to the right, title, and interest of the plaintiff . Pursuant to Cal . CCP Section 762 010, the plaintiff shall name as defendants in the action the persons having adverse claims to the title of the plaintiff against which a determination is sought The plaintiff should also sue any party that the plaintiff, a title insurance company, or the Court wants to be bound by the quiet title judgment determination, including a co-owner or holder of a recorded deed of trust . The adverse party defendant has the right to defend the action, and to present the defendant’s case and any defenses . In short, all sued parties get their day in court

It is generally not necessary or advisable to automatically sue the plaintiff’s mortgage bank if the bank’s deed of trust lien interest is not adverse to the interest of the plaintiff For example, the plaintiff obtained a mortgage loan on favorable terms, and was intended to be in first title position, there is no title dispute with the lender, and the plaintiff does not dispute that fact . A plaintiff can give a mortgage holder party or deed of trust holder notice of the action by serving the party or deed of trust holder and its loan servicer with a recorded lis pendens notice . If that mortgage party wants to intervene in the litigation, that party can be named as a defendant or can apply to the court to intervene in the action to have its claim heard .

Sometimes because of a time lapse or in other situations, a party that must be named in the quiet title action has died . However, technically speaking you cannot sue and serve a dead person- you can’t show up at the cemetary and drop the complaint and summons at the grave site . If the person is cremated, personal service of the summons is even more of a challenge !!

If a defendant to be named is dead or believed to be dead, the legislature envisioned this “Tales of the Crypt” type of situation and you can sue pursuant to Cal . CCP Section 762 .030 . You can sue in the

local superior court of general jurisdiction, and there may be no need to file an action or proceeding in probate court A probate case may or may not be pending . If the person who died has an executor or administrator, you sue the personal representative of the deceased or of his estate . If the person who died does not have a personal representative and no estate or probate, then you sue the “testate and intestate successors .” This code section provides,

“(a) If a person required to be named as a defendant is dead and the plaintiff knows of a personal representative, the plaintiff shall join the personal representative as a defendant .

(b) If a person required to be named as a defendant is dead, or is believed by the plaintiff to be dead, and the plaintiff knows of no personal representative:

(1) The plaintiff shall state these facts in an affidavit filed with the complaint .

(2) Where it is stated in the affidavit that such person is dead, the plaintiff may join as defendants “the testate and intestate successors of __________ (naming the deceased person), deceased, and all persons claiming by, through, or under such decedent,” naming them in that manner .

(3) Where it is stated in the affidavit that such person is believed to be dead, the plaintiff may join the person as a defendant, and may also join “the testate and intestate successors of __________ (naming the person) believed to be deceased, and all persons claiming by, through, or under such person,” naming them in that manner . ”

Suing the “testate and intestate successors of the deceased” is relatively straightforward- you just name this class in the complaint and summons by using the language required in the statute . The plaintiff also files an affidavit at the time of filing the complaint Serving this class with the lawsuit is more problematic because this class may not exist as real person or entity and there is no residential or business address to use for attempted personal and direct service . The deceased may not have “testate or intestate successors” or heirs . The plaintiff or plaintiff’s attorney may not learn about a successor until after the filing If a successor exists who claims an interest in the subject property, that person or entity should be named in the lawsuit The only way to complete service of the unknown testate and intestate

Continued

from page

successors is to serve this class of defendant by publication . Service by publication will require the requisite due diligence to obtain a court order to serve by publication . See Cal . CCP 763 .010 .

SUING THE GHOST DEFENDANT CATEGORY KNOWN AS “ALL PERSONS UNKNOWN”

When prosecuting a quiet title action, you want to be sure that you sue any person in the chain of title who has an adverse interest in comparison to the rights of the plaintiff, and also to sue anyone else on the planet who may have an “adverse” interest in the property as compared with the plaintiff . You want to sue any potential party who may claim a direct or indirect interest in a property . A review of an up to date preliminary title report for the subject propertywill usually reveal any person in the chain of title with an interest that was recorded . You may have an investor or stake holder who claims an interest in the property, but who is not on record title profile . Sometimes, the true owners may not qualify for a loan, and have a relative or friend with a strong credit profile to obtain the loan and be on title . The true owner will still put down a down payment for the purchase price This seemingly covert equitable owner may be living at the subject property and paying the mortgage but is not on the record title .

It is recommended to also name as a defendant in the action “ pursuant to CCP S . 762 .060 “all persons unknown ” The statute provides,

“(a) In addition to the persons required to be named as defendants in the action, the plaintiff may name as defendants “all persons unknown, claiming any legal or equitable right, title, estate, lien, or interest in the property described in the complaint adverse to plaintiff’s title, or any cloud upon plaintiff’s title thereto,” naming them in that manner .”

The name of this phantom defendant should be stated in the caption in the complaint and summons .

THE METHOD FOR SERVING PHANTOM AND GHOST PARTIES WITH THE LAWSUIT IS DELINEATED IN THE QUIET TITLE STATUTE.

When you sue “testate and intestate successors” or “all persons unknown,” you still need to serve these phantoms and ghosts with the summons and complaint . But how do you serve this fictitious class of defendant that technically do not really exist in the world ? These defendant categories are only a creature of the quiet title statute . Personal

or substituted service is not possible If it is not Halloween night these ghosts and phantoms don’t come out of the shadows to accept service The answer to resolve this dilemma is set forth in Cal . CCP S 763 010, which provides,

“763 .010 . (a) The form, content, and manner of the service of summons shall be the same as in civil actions generally .

( b) If upon affidavit it appears to the satisfaction of the court that the plaintiff has used reasonable diligence to ascertain the identity and residence of and to serve summons on the persons named as unknown defendants and persons joined as testate or intestate successors of a person known or believed to be dead, the court shall order service by publication pursuant to Section 415 50 and the provisions of this article The court may, in its discretion, appoint a referee to investigate whether the plaintiff has used reasonable diligence to ascertain the identity and residence of persons sought to be served by publication, and the court may rely on the report of the referee instead of the affidavit of the plaintiff in making the order for service by publication .

(a) Nothing in this section authorizes service by publication upon any person named as an unknown defendant who is in open and actual possession of the property .

The statutory requirement of exercising due diligence to find these ghosts and phantoms is really quite peculiar and awkward How can you perform due diligence to find some one that does not in reality exist in this world ? The mind set for this form of due diligence is to perform it with an approach that perhaps you will find a person who was previously “unknown,” or who is in actuality a potential successor interest . If they fit in the statutory category and have a connection with the subject property then that person should be named in the lawsuit .

If anyone in this phantom classes of defendants emerges from out of the wood work to claim an interest in the property, this person or entity can be added as a DOE defendant after the case was filed . Alternatively, this party may want to intervene in the action and file its own cross-complaint if the stakes are high enough .

these defendants by publication This process involves making a separate application to the Court, demonstrating specific due diligence, obtaining a Court order to allow for service by publication The service is completed by complying with the court order for service by publication which usually requires publishing notice in a local newspaper and posting on the subject property

DEFINING “DUE DILIGENCE” IN SEARCHING FOR THE PHANTOM AND GHOST DEFENDANTS

As explained above, in order to serve “testate and intestate successors” or “unknown persons” with the summons and complaint, the law requires service by obtaining a court order of publication To obtain the court order for publication you need to demonstrate due diligence as a matter of law See generally Friends of Del Mar Bluffs v . North County Transit (2022 West Law 1227285) regarding the requirements for serving an individual in a quiet title action by publication under Cal . CCP Section 415 .50 . In that case, the Court denied the application for an order for publication without prejudice . The Court denied the application to serve defendants by publication, but opined that the Judicial Council comments to Section 415 .50 as instructive in elaborating on the showing required for a trial court to find a party has exercised reasonable diligence in trying to locate the party to be served:

“The term “reasonable diligence” takes its meaning from the former law: it denotes a thorough, systematic investigation and inquiry conducted in good faith by the party or his agent or attorney . A number of honest attempts to learn defendant’s whereabouts or his address by inquiry of relatives, friends, and acquaintances, or of his employer, and investigation of appropriate city and telephone directories, the voters’ register, and the real and personal property index in the assessor’s office, near the defendant’s last known location, are generally sufficient . These are likely sources of information, and consequently must be searched before resorting to service by publication See also Kott v . Superior Court , 45 Cal . App . 4th at 1137-38 (citing Cal . Judicial Council Com ., West Ann Code Civ Proc (1973 ed ) Section 415 .50, pp . 561-563 .

Given this standard, how do you perform due diligence on persons or entities that probably do not actually exist anywhere in the world when their identities are not stated on a preliminary title report

? This is where you need to be very creative in your due diligence methodology and strategy since data bases are largely on line and in many different websites . You need to think out of the box . You can ask the following questions- are there living spouses, partners, relatives, heirs, neighbors who may have an interest ? Who is leasing the property and in possession ? Has a probate case been filed that can be investigated ? Has anyone filed another lawsuit concerning the subject property ? Did the decedent have a trust or a retirement account that would disclose a potential successor ? This approach requires multiple inquiries and searches by professionals, and the presentation of affidavits and exhibits to demonstrate due diligence There also needs to be compliance with Cal . CCP Section 415 .50(a)(1) . The plaintiff must provide independent evidentiary support, in the form of a sworn statement of facts, for the existence of a cause of action against each defendant whom service by publication is requested

FOCUSED APPROACH AND STRATEGY IN QUIET TITLE CASES

When you need to file a quiet title action in superior court, you might as well file the case against all potential parties to achieve the maximum amount of relief . That approach includes naming and serving “all persons unknown,” and if a party is deceased, to sue their known personal representative or “testate and intestate successors ” Service of these phantoms and ghost defendants is completed after obtaining an order of publication . You can also name actual real person/ entity discovered defendants by filing a doe amendment . If need be, the plaintiff can amend the complaint to allege additional specific facts about the new doe defendant and this defendant’s connection with the subject property .

At the end of the day, the mail goal is obtain a recordable quiet title judgment and other vital papers, to achieve a marketable unclouded title such that a title insurance company will write a future title insurance policy for knowing the title defect has been cured . In this process, you can work with a title company officer to see what the title officer wants in order to fix the title problem evident in the chain of title The title company officer will not provide formal legal advice, but a competent title office will work with you and your counsel and inform you what they need to correct the title problem It also helps to have a competent judge assigned to your case that understands the law and nuances of quiet title actions, and who can facilitate settlement of the action if that is possible

It’s tempting to think that the “atmospheric rivers” that have deluged California and neighboring states with more than 32 million gallons of rain and snow mean that the drought is finally over Many reservoirs are at close-to-normal levels for the first time in years, and some areas have actually experienced dangerous flooding But Californians need to remain vigilant about water consumption and saving water Why?

Simple physics has a lot to do with it Yes, reservoirs are being replenished by rainfall and the higher volume in rivers that feed into them . But when that much water hits hard ground after so many years of droughtlevel precipitation, a lot of the water simply runs off and ends up back in the ocean The baked ground can’t absorb it as fast as it falls, causing problems with excessive runoff and flash flooding . In turn, that runoff

erodes the vital topsoil that holds onto water AND the vegetation that holds the topsoil in place Extremes in weather are rarely good, long-term . The state is actually releasing water from reservoirs to help soak up incoming rain!

Aging infrastructure and water management plans that were designed before extreme weather became more common in the American West simply aren’t prepared to handle the changes of so much rain and snow . Efforts are being made to boost California’s water storage capacity, but it’s too late for much of that rain that’s already back in the Pacific Ocean . And water management experts are concerned that the area is going to see more weather whiplash between extreme wet and dry seasons, potentially further stressing that infrastructure .

Please turn to page 49

Livable is dedicated to conserving water and other natural resources while helping independent rental owners get more from their investments . To learn more about Livable’s innovative cost recovery solutions and educational initiatives for residents, visit livable .com/apn .

Continued from page 46

So despite record precipitation, we need more water conservation to help the West meet challenges created by those decades of drought By making conservation a way of life in California, we can save water, minimize water waste, rebuild our underground aquifers, prepare for the uncertainties of extreme weather cycles, and minimize the harmful effects of drought

Of course, the drought is part of the driving force behind the record high water costs in California . We don’t expect that trend to change any time soon! For independent rental owners who own units with master-billed water and hot water, encouraging residents to conserve that valuable water is important to the health of their investments .

A popular solution for reducing the costs of masterbilled utilities is submetering, which is exactly what it sounds like Meters are installed in each unit to keep track of usage . Although it’s a solution which is accurate and transparent, it’s also a costly investment Submetering requires the installation of expensive equipment and may not work in every unit space Some units can’t be retrofitted or remodeled for the equipment . If submetering can’t work for your

properties, Ratio Utility Billing may be the answer you’re looking for .

Ratio Utility Billing Systems, or RUBS, help housing providers drive conservation through accountability RUBS fairly and transparently allocates water use among residents based on square footage, unit amenities, number of occupants and other factors Housing providers can bill the residents each month and recover a significant portion of the money they spend on master-billed water .

Even if local ordinances prevent independent rental owners from charging residents for their water use, knowledge is power when it comes to getting residents to conserve so landlords can save . Studies show that simply informing Residents of their levels of consumption inspires them to conserve, saving thousands of dollars - and gallons - over time . You may see up to 40% reduced consumption if you’re able to bill Residents for use .

Educating tenants about better habits and easy changes that save water helps too . For example, most people aren’t aware that, if a family of four all let the water run while brushing their teeth twice a day, they waste 12,000 gallons of water over a year!

F

FBS Property Management, AMO .(619)286-7600

Five Peaks Property Management .... .(619)814-7505

Foothills at Old Town . . . . . . . . . . . . . . . . (951)676-7545

G

Gables Oak Creek .(951)600-9696

Gables Point Loma .(619)223-6577

Gables at Alta Murrieta .(951)698-0628

Griffis Mission Valley .(619)220-0530

Griswold Real Estate Mgmt., Inc. ..... .(858)597-6100 H

H.G. Fenton Company .(619)400-0120

Hanken, Cono, Assad & Co ...(619)698-4770

Hanover Little Italy .(619)677-1799

People Helping Others Prop. Mgmt. ... (619)282-5400

Pierside North | Greystar . . . . . . . . . . . . . (949)202-3991

Pierside South | Greystar . . . . . . . (760)433-3500

Premier Real Estate Management, Inc (619)632-6852

Professional Real Estate Management (619)297-7736

Providence Real Estate Management Corporation (760)525-8705

R

R. A. Snyder Properties, Inc. . . . . . . . . . . (619)297-0274

REC Properties| Peasquitos Point Apts. (858)484-5047

RG Investment Real Estate Services Inc 4005-862)858(

Real Property Management (760)434-1791

Rehmann Realty Group . . . . . . . . . (619)440-5669

Richman Property Services (813)262-0401

(619)702-0655 A

655 WB Operating LLC

All Points Real Estate . . (619)298-7724

Alliance Investment Corp

(858)597-4900

AltaCima Apartment Homes .... . .... .(858)565-8333

American Assets Trust. LP .(858)350-2564

Antelope Ridge (Sentinel Real Estate) (951)672-8181

Arbor Terrace.. .... ... ..... . ..... .. .(619)293-3612

Arbors at California Oaks Apartment Homes

.(951)461-3264

Asset Property Management . . . . . . . . . (858)560-9363

Avenue 5 ...(206)582-3333

Award Property Mgmt . ..(619)471-1755 B

Barone Galasso & Associates, Inc. .(619)855-5241

Beard Property Management (619)892-8722

Bob Cota Realty

Brennan And Associates Inc.

Brentwood Management Co

(619)465-9934

(619)475-2470

(619)220-8595

Bridge Property Management... . .... .(801)716-5795

Brycorp, Inc ..(619)920-7174

Buchanan Property Management Corp. (619)269-0276 C

CASAVIDA

(858)454-8857

Cambridge Management Group, AMO (619)497-0771

Cardinal Group Management

Chase Pacific Property Management and Real Estate Services.. ..(858)271-8841

Cirrus Asset Management, Inc.... . ... .(818)222-4840

City View Apartments|Greystar .(619)234-0134

Community Research Foundation, Inc. (619)275-0822

Core Property Group . . . . . . . . . . . . . . . . (619)399-7279

Cushman & Wakefield . ...(949)224-2929

D

Delta Property Management .... . .... .(619)465-5851

Douglas Allred Company.. .(858)793-0202

E

Eagle Glen Apartments | Greystar . . . . . (951)461-4565

Elevate SD Properties .(619)535-8112

Elite Property Management. ...(619)823-3712

Euston Management . . (858)793-8899

Heartland Associates Inc. . . . . . . . . . . . . (619)462-2082

HeetWave Properties . . . . . . . . . . . . . . . (888)557-4338

Holland Partner Group ....... . ...... .(360)940-0251

Homes Management, ATS Homes, Inc. (760)432-4663

Horizon Properties Management Service 4503-284)916(

Humphreys Residential . . . . . . . . . . . . . . (619)865-0389

IPI Property Management . . . . . . . . . . . . (858)277-2700

Iconic on Alvarado | BH Management Services .... . ... . .......... . .... ... .... . .. .(619)286-3990

Income Property Advisors Inc (858)279-1500

Interfaith Housing Assistance Corporation 2351-866)916(

JHB California Properties, LLC .(760)722-6421

Jensen Properties .(858)449-7294

Johnston Property Management, Inc. (760)944-0703

KFR STAR Realty ..(619)293-7653

Leonero Properties . . . . . . . . . . . . (619)273-4350

Liberty Military Housing . . . . . . . . . . . . . . (858)874-8100

Logan Property Management .(619)260-5562

Lyon Living ....... . .......... ... ... .(949)838-1274

MG Properties ....(858)658-0500

Maya Linda Apartments .(858)566-5350

Melroy Asset Management . . . . . . . . . . . (858)483-5111

Mira Bella Apartments | Simpson Property Group .(858)560-5720

Modera San Diego | Mill Creek Residential .... . ... . .......... . .... ... .... . .. .(619)500-8509

Noah Realty .(858)504-0416

Olympus Property .(858)268-8858

Pacific Commercial Management, Inc (858)450-6886

Parkdale Apartments | Norco Mgmt. Corp.(760)737-9017

Pasas Properties, Inc. .(619)607-7560

Paul Langley Company . . . . . . . . . . . . . . (415)431-9104

River Oaks |Waterton Residential . . . . . . (760)721-8585

Rohn Properties Management . . . . . . . . (619)990-7433

Rolling Hills Gardens | Greystar (619)482-7583

S

SD Rent Pros (619)884-0906

STYL Residential (678)478-7707

San Diego Housing Commission...... (619)578-7531

San Diego Realty Services...... ...... (619)713-1044

Sardo Properties . . . . . . . . . . . . . . . . . . . . (619)405-9418

Scott Management Company . . (310)370-2696

ScottWay Capital (619)209-3544

Sea West Property Management...... (760)787-6035

Shapell Properties, Inc. (323)988-7590

South Bay Community Services (619)420-3620

Sudberry Properties, Inc. . . . . . . . . . . . . . (858)546-3000

Southwest Equity Partners .. ..... .... (760)419-5300

Summit Realty and Management...... (619)423-3023

Sun An Sea Property Mgmt (619)298-4160

SunRidge Properties, Inc. (858)578-3600

Sunrise Management Company AMO (858)751-1768 T

Team Bourda Incorporated ..... ...... (619)851-3784

Thatcher Properties, Inc. . . . . . . . . . . . . . (619)286-4250

The Dylan | Afton Properties . . . . . (760)439-2752

The Helm Management (619)589-6222

The Premiere Residential, LLC . . . (858)455-7711

The Rey Apartments | Berkshire Communities (408)614-5587

Torrey Pines Property Management.... (858)454-4200

Urban Coast Properties, Inc (619)797-6733

Valentina by Alta

Valor Property Management

VandenBerghe Properties

(619)391-2700

(619)771-2600

(925)819-1009

Whispering Oaks Apartments | Greystar (760)471-1262

Willin Properties (619)298-0500

Z Zimmerman Property Management.... (619)546-5361

forward-thinking. Now, Gen Z is not as concerned with recreation or downtime at the office, rather a financial investment in their future. However, stock options and a standard 401(k) won’t cut it when they are actually searching for “student loan assistance, tuition reimbursement, and maternity and paternity benefits.” This generation values a work-life balance and is highly optimistic for the future, so these types of benefits will not only attract but also encourage them to stay and take advantage of these opportunities.

They Want to See Diversity and Inclusion

This highly educated, highly diverse generation is craving a passion and dedication to diversity and inclusion from their employers. As a result, “86% of

Gen Z job seekers cite a commitment to diversity important factor in deciding whether or not to accept Here it is very important company to talk the talk the walk. Diversity and cannot just be a phrase company’s mission statement a committee that meets quarter. This dedication to be seen in initiatives asking one’s pronoun preference, adequate accommodations those who are differently-abled, policies to ensure fair and pay, etc.

They Want an Offer, and Want it NOW

Standard HR procedures it difficult to establish a committee and follow the protocol when extending Gen Z wants no part of

Pref e rre d Pa rt n er s

As a member of Southern California Rental Housing Association, you have access to discounts on the products and services provided by our Preferred Partners. Visit

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LAUNDRY ROOM, REFRIGERATORS & FREEZERS, MATTRESS SETS, COIN-OPERATED WASHERS, DRYERS, DISHWASHERS, DISPOSERS, TRASH COMPACTORS, RANGES, OVENS, COOKTOPS, VENTILATION, OUTDOOR APPLIANCES, WATER HEATERS & ACCESSORIES

VALUE OUTREACH ADVOCACY

VALUE

Recognized resource hub that inspires diverse membership growth & engagement from all sectors of rental housing.

The ultimate resource for all things related to rental housing.

ADVOCACY

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OUR VISION

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OUR MISSION

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