Scott Ledesma, Generation Contracting & Emergency Services, Inc.
Shannon Kelly, Independent Owner Kappel Real Estate
HONORARY LIFE ADVISOR
Wesley Harker
Our Address
Southern California Rental Housing Association
9655 Granite Ridge Drive, Suite 200 San Diego, CA 92123
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
the author's views and do not necessarily represent those of the Southern California Rental Housing Association or SDMHC.
All rights reserved. Materials may not be reproduced or translated without prior written permission by the publisher. Contact the Southern California Rental Housing Association at 858.278.8070 or visit socalrha.org for more information.
Advertising - We do not guarantee or endorse the products or services of any of the advertisers, but and respect for one another. Information provided in the advertisements are the sole responsibility of the advertiser. For concerns please contact the advertiser directly.
CONTRIBUTE: Educational articles in Rental Advisor Magazine must be between 500-800 the 10th of the month before publication. Submit to socalrha@aptnewsinc.com.
ADVERTISE: Contact the team at Apartment News Publications, Inc. at 714-893-3971 or email scrha@aptnewsinc.com for advertising information, including rates, production
P O Box 3089 Seal Beach, CA 90740 www aptnewsinc com (714) 893-3971
FOUNDER : Don Smeallie, Sr .
PRESIDENT: Don Smeallie, Jr
PRODUCTION DIRECTOR: Travis Watson production@aptnewsinc com
CREATIVE DIRECTOR: Sean Buur sean@aptnewsinc
OFFICE ADMINISTRATOR: Jessica Watson admin@aptnewsinc com
Need to update your address or wish to be removed from our mailing list? Please email us at admin@aptnewsinc .com
FEATURED
Congratulations to all of our 2024 Mark of Excellence nominees. You are the true “Mark of Excellence” in our industry, and
Assistant Property Manager of the Year 1-100 Units
Juan Carlos Flores, Sunrise Management Company AMO
Juan Romero, Greystar
Junior Padilla, Cameron Brothers Company LLC
Luis Mas Ramirez, Greystar
MIchael Giordano, Greystar
Rick Naranjo, Greystar
Roger Mendoza, H.G. Fenton Company
Terry Cook, Greystar
Travis Price, FPI Management
Isabel Torres, Greystar
Ismael Rivera, Greystar
Reese Perry, Greystar
Leasing Professional of the Year 101-300 Units
Alexandria Peralta, Hub | Sudberry Properties
Braden Ingraham, H.G. Fenton Company
Catalina Martinez, Greystar
Cindy Gonzalez, Fairfield Residential Company LLC
Claudia Bryant, Greystar
Cristina Noor, Cameron Brothers Company LLC
Dale `Hopkins, H.G. Fenton Company
Daniel Vidal, Greystar
Esperanza Ojeda, H.G. Fenton Company
Gabriel Hernandez, H.G. Fenton Company
Gabriella Espinoza, H.G. Fenton Company
Hayley Lewis, Greystar
Jahnelle Washington, Greystar
Lesly Juarez, Fairfield Residential Company LLC
Marilyn Lopez, Sunrise Management Company AMO
Nick Rock, H.G. Fenton Company
Stacia Smith, H.G. Fenton Company
Taylor David, Flats, LLC.
Thomas Raftis, Greystar
Leasing Professional of the Year 301+ Units
Ancio Robinson, H.G. Fenton Company
Anni Isaacs, H.G. Fenton Company
Annie Flores, Greystar
Brad Campbell, Sudberry Properties, Inc.
Maintenance Supervisor of the Year 301+ Units
Andres Mendoza, Sudberry Properties, Inc.
Brian Rapisardi, Greystar
Carlos Sanchez, H.G. Fenton Company
Daniel Garcia, American Assets Trust, Inc.
Gabriel Guerrero, H.G. Fenton Company
Gamaliel Rendon, H.G. Fenton Company
Hildefonso Velasquez, Sudberry Properties, Inc.
Jason Mungarro, Greystar
Jorge Granados, Greystar
Mario Arzate, H.G. Fenton Company
Narciso Corona, Sudberry Properties, Inc.
Omar Arzate, H.G. Fenton Company
Tony Price, Greystar
Victor Lora, American Assets Trust, Inc.
Maintenance Tech of the Year 1-300 Units
Adrian Martinez, Sudberry Properties, Inc.
Alex Kerr, Cameron Brothers Company LLC
Alexey Acosta, Fairfield Residential Company LLC
Alfonso Romero, American Assets Trust, Inc.
Andres Munos, H.G. Fenton Company
Anthony Guzman, H.G. Fenton Company
Armando Aguirre, FPI Management
Brian Cisneros, Cameron Brothers Company LLC
Cristian Hernandez, Buchanan Property Management
Corp.
Cristobal Sanchez Barron, FPI Management
Edward Harmon, Greystar
JOIN SCRHA
Trusted Resource Hub
Southern California Rental Housing Association is the trusted source of support for rental housing providers in San Diego, Imperial, and southern Riverside Counties.
SCRHA Membership gives you access to a comprehensive resource hub so you can confidently face regulatory challenges and operational issues with expert guidance.
ADVOCACY REPRESENTATION
SCRHA is a strong and effective advocate for rental housing providers. We fight for favorable policies and laws at all levels of government
RENTAL FORMS & WHITE PAPERS
Ensure compliance with our comprehensive library of rental forms, notices, contracts, and white papers
OPERATIONAL ADVICE
Navigate landlord-tenant issues with confidence when you consult our seasoned professionals for expert guidance and advice
EDUCATIONAL RESOURCES
Keep informed on industry trends and best practices with classes and webinars that enhance your knowledge and skills
NETWORK OF PROFESSIONALS
Do business with professionals who support the industry with our trusted network of Suppliers available online
Aiesha Blevins
2024 President Southern California Rental Housing Association
President’s Message: Thank You for the Opportunity to Serve
It has been my honor to serve as the president of SCRHA for these past two years . I am filled with gratitude for all that we have accomplished during my tenure While I have been involved with SCRHA for many years, serving in this position has allowed me to witness our members’ dedication and passion firsthand.
When I reflect on these past two years, I am proud of the progress we made as the industry came out of pandemic-related challenges and confronted wideranging issues, including local tenant protection ordinances in the City of San Diego and Chula Vista, as well as defeating Proposition 33 and other advocacy wins .
Through your unwavering support, we amplified the perspective of rental housing providers and influenced meaningful change while supporting our members through regulatory changes . Our advocacy engaged policymakers at all levels of government, and none of it would have been possible without your contributions .
Guided by our strategic plan, we worked to fulfill our mission to create a thriving rental housing community through advocacy, education, and collaboration I’m so proud of the work we’ve done to be recognized as the ultimate resource for all things related to rental housing, and I know that the 2025 President, Buck Buchanan of Buchanan Property Management will continue to work towards our vision of reenvisioning quality housing for all
I have served with Buck on the Board of Directors since 2020 and know that he is dedicated to the
rental housing industry and the efforts of the Southern California Rental Housing Association .
Again, thank you again for your support over these past two years I am deeply grateful for the opportunity to serve as your president . I look forward to continuing our work in 2025 and the future .
2 0 2 5 E V E N T S
Alan Pentico, CAE
Executive Director
Southern California Rental Housing Association
Executive Director’s Message:
Happy Holidays from SCRHA
As the year comes to a close, I want to thank you for your unwavering commitment to SCRHA and the rental housing industry as a whole . This year has been marked by challenges, opportunities, and remarkable progress, and none of it would have been possible without your generous contributions and tireless dedication .
While we navigated new regulations outlined by local tenant protection ordinances, we always remained strong in our efforts to advocate for our industry at all levels of government. These efforts proved that SCRHA truly is the voice of the rental housing industry
Notably, we soundly defeated Proposition 33, which was the latest effort to repeal Costa-Hawkins and open the door to the worst forms of rent control throughout the state Through the generous contributions of our members and the strength of our coalition, SCRHA was happy to see that California voters are focused on finding solutions to solve the housing supply crisis.
While I am incredibly proud of our 2024 accomplishments, I trust that we can bring that same energy and dedication into the new year . If you haven’t already attended a Legislative Update, please check our website at socalrha .org to view our current calendar and access updated resources that will help you comply with changes
We take great pride in providing our members with compliant rental forms and expert guidance to navigate regulatory changes . Whether you register for a class or download a white paper or review a
guidance page, we provide the information you need to achieve success If you miss a class or have outstanding questions, call us at 858 .278 .8070 to receive personalized guidance from our operational advisor
As your trusted resource hub, the Southern California Rental Housing Association is here to support your success . Happy holidays, and I look forward to seeing you in the new year
Happy holidays from Southern California Rental Housing Association!
Holiday Hours:
Monday, December 23 - Open
Tuesday, December 24 - Closed
Wednesday, December 25 - Closed
Thursday, December 26 - Closed
Friday, December 27 - Closed
Monday, December 30 - Closed
Tuesday, December 31 - Closed
Wednesday, January 1 - Closed
Thursday, January 2 - Open
CE LE B R ATIN G
Entrada | Greystar
El Pedregal | Cirrus
Limoncello
Linda Kass Company
Hitching Post Motels, Inc.
Kroeger Family Properties
Whalen Properties
Yvonne Coover-Stone Company
David Berg Company
Wilma H. Healey Company
Jon Beaman Company
T1 PropertiesE
James Kennedy Company
CE LE B R ATIN G
Jack Zolezzi Trust
Patricia Barrer Company
GTF Properties
Donna Webber Company
American Bathtub Refinishers
John Belanich Company
Eugene Kanaly Company
Creaser & Warwick, Inc.
Hunter’s Run Apartments
DNC Limited Partnership
Karen Langley Company
The Kevane Company, Inc.
Vicki Rydell
Elinor van den Akker Company
RG Investment Real Estate Services Inc.
Jana Sulpizio Company
Caesar Oriol Company
Stephanie Troncone Company
Fred and Shirley Salzer
Fleetwood Properties
William Clarke Company
Rolf Steeve Company
William Wiegand Company
Kenneth Rundlett Company
Anne Lambert Company
Laurence and Carolyn Kaiser
Marc-Aaron, Inc
Errol Tonsky Company
Kirk Sheldon Company
Gregory Robinson Company
Richard Hancock Company
Timbers Apartments
Sierra Mar Properties LLC - Paul Hasley
Russell Hook Company
Mary Ann Tarantino Company
Terry Moore, CCIM, Inc.
T L M Properties
Jerry Conway Company
Gloria Donichy Company
IHA Partners Inc.
Commercial & Industrial Roofing
Jeffrey Malik Company
G. Beit-Ishoo / SeaDate
Michael Glickstein Company
George and Celida Haddad
Seamist15, LLC
Al Smithson Company
Regents FHT
Longley Family Trust - Nancy Longley Trustee
Donald Beyer Company
Waltwood Properties
Marilynn Nemeroff Company
Chase Pacific Property Management and Real Estate Services
Nancy Mullins Company
NLJ, LLC
Brothers II
NEBO, LLC
Legar Management
M. C. Contracting Service
Martin Mosier Company
Josephine Cree Company
Ronda Landrum Company
RJW Properties, Inc.
Laura Sperry Company
Anova, Inc
Wakeland Housing & Development
Thomas & Patricia Beilke
ATI Restoration, LLC
Dowling Apartments
David Olson Company
Douglas Allred Company
Muraoka Enterprises Inc.
People Helping Others Prop. Mgmt.
Robert Nida Company
Law Offices of Andrew C. Laubach
BluSky Restoration Contractors, LLC
Walz Properties| Fortuna Investment Group
James P Burrell Company
Mark Marshall Company
Midland Properties LLC
Elizabeth Dammassa-Uglik Company
Robert & Elizabeth Sunukjian
REC Properties| Peasquitos Point Apts.
Dennis & Tina Daneri
Pacific Coast Cleaning, Inc.
Mira Bella Apartments | Simpson Property Group
Patricia White Company
Araz Yacoubian Company
Sherry Bird Company
Pacific Patio Apartments
Sciuto Properties
Theodora Opteyndt
Tom Brady Company
H A Lavezzi Co , Inc
Axiom Real Estate
Barry Treahy Company
Nancy Partridge Company
Dennis and Marian Pierce
Kimball, Tirey & St John LLP
Jesus and Yolanda Arroyo
Wilar Properties LLC
Betty Bark Company
Eugene & Lauren Berkenstadt (Trust)
David M. Pierce
Seventh & G|Greystar
Tamra Fuller Fountas
Buchanan Property Management Corp.
Richard Lee Hammett Real Estate
Brian Steer Company
Eagle Paving
Eagle Property Management
Arbors at California Oaks Apartment Homes
Mildred Street Apartments
What Landlords Should Know About Non-Agricultural Disclosures
By Patti ‘Widget’, Widget’s Way
As landlords, we’ve all seen it: you get a perfectly pristine apartment back, only to find remnants of the rainforest your tenant left behind Maybe you rented to someone with a “green thumb”— or more accurately, someone with a jungle thumb It starts with a couple of potted plants, then it escalates to entire tomato plants taking over the balcony Oh, and don’t forget: they’re not the ones paying the water bill . It’s time to talk about something that can help prevent this—non-agricultural disclosures
WHAT IS A NON-AGRICULTURAL DISCLOSURE?
A non-agricultural disclosure is a notice in the lease that restricts tenants from growing, cultivating, or keeping plants inside or outside the unit, with exceptions usually for decorative houseplants The purpose is simple: as charming as a little urban jungle might seem, plants can cause significant property damage. This disclosure tells tenants upfront that they don’t have permission to grow anything—not even an avocado pit on the window sill . So, if your tenants fancy themselves the next backyard homesteader, a non-agricultural disclosure in their lease agreement will set the record straight
WHY NON-AGRICULTURAL DISCLOSURES MATTER
Landlords who think this is trivial might want to think again . Unregulated plant growth can result in some costly damage Indoor plants require water, and that water has a way of getting where it doesn’t belong . Water damage, mold, or structural issues can arise if tenants decide to turn their unit into a greenhouse .
Water from excessive or poorly managed plant setups can seep into walls, floors, and ceilings. And if mold is a risk, trust me, that damage bill will put you in a real bind with tenant lawsuits and complaints . Nonagricultural disclosures help establish clear guidelines to prevent tenants from transforming your property into a greenhouse and putting it at risk .
WHEN TO INTRODUCE A NON-AGRICULTURAL DISCLOSURE
In an ideal world, the non-agricultural disclosure would be part of the lease from day one By incorporating this clause into the lease, you’re informing tenants right from the start about restrictions on plant growth and cultivation in their unit If this wasn’t initially included, you can still implement it with a notice of change of terms
of tenancy This requires notifying tenants in writing, generally with at least 30 days’ notice, depending on your local laws .
DIFFERENT USES FOR NON-AGRICULTURAL DISCLOSURES
While you might not have initially added a nonagricultural disclosure in your lease, there are several ways and times to integrate it effectively:
● Lease Renewal: Adding this clause when leases are up for renewal is an opportune time, as tenants are already in the mindset of reviewing and possibly signing off on updated terms
● New Tenants: Including it upfront in the leasing paperwork for new tenants will save you many headaches in the long run .
● Problem Solving for Current Tenants: If a tenant has already decided their unit is going to double as a greenhouse, sending them a notice of change of terms can inform them of the new no-gardening policy And hey, they can take their green ambitions to the local community garden!
HOW NON-AGRICULTURAL DISCLOSURES PROTECT LANDLORDS
Beyond curbing your tenants’ gardening enthusiasm, non-agricultural disclosures offer landlords several tangible benefits:
1 . Limit Water Intrusion Risk: As mentioned earlier, plants can be a massive source of unintended water problems . Over time, water from plants will seep into places it doesn’t
belong, leading to mold and other damage
2 . Avoid Mold Claims: Plants can raise humidity levels, which means an increased chance of mold growth . This disclosure could help insulate you from tenant claims that the property has unsafe mold conditions .
3 Maintain Property Value: Keeping the property in top shape is a top priority . By enforcing nonagricultural disclosures, you help reduce the need for costly repairs or renovations due to water, mold, or pest damage
4 . Improved Tenant Compliance: By setting these expectations from the get-go, landlords can cut down on potentially contentious tenant disputes Clearly stating what tenants can and can’t do leaves less room for “creative” interpretations of lease terms .
WHAT TO INCLUDE IN A NON-AGRICULTURAL DISCLOSURE
Now, you may wonder what exactly goes into a nonagricultural disclosure Here’s a straightforward guide on drafting an effective one. The more specific, the better:
● Scope of Restriction: Specify that the tenant may not grow plants, herbs, vegetables, or other items that require soil, water, or any level of maintenance that might impact the property
● Inside and Outside the Unit: Make it clear that the restriction includes balconies, patios, window sills, and other outdoor spaces that are part of the property
● Maintenance Expectations: Some landlords
allow tenants to keep small, low-maintenance houseplants indoors . If that’s the case, add a note about how many are allowed, their size, and where they can be placed (e .g ., on furniture rather than directly on floors).
● Consequences of Non-Compliance: Mention any penalties or fees for non-compliance, including any costs for repairs or damages caused by unapproved plant growth
ENFORCING A NON-AGRICULTURAL DISCLOSURE
Having a disclosure is one thing; enforcing it is another Many tenants think their plant collection is harmless, so you’ll likely encounter tenants who don’t see the harm That’s why it’s essential to establish a process for handling these cases . Routine inspections are key, especially in areas prone to moisture And if you do spot a jungle, address it politely but firmly. A reminder of the agreement, plus a gentle nudge to your non-agricultural disclosure, usually does the trick
So there you have it—non-agricultural disclosures are more than just an anti-gardening clause . For landlords, it’s a tool to help prevent costly repairs, protect property value, and maintain a clear understanding with tenants . By adding a non-agricultural disclosure to your lease, you’re doing more than avoiding a few plants . You’re taking proactive steps to safeguard your property from unintended water damage, mold, and even disputes down the line .
In the world of property management, where every detail can make a difference, non-agricultural disclosures are a surprisingly valuable tool in your arsenal And with this tool in place, you can keep your properties plant-free, mold-free, and hassle-free Just think of it as part of the ongoing effort to keep your property thriving without the greenery taking over After all, if your tenant wants to start a farm, there are plenty of community gardens that would love to have them!
Patti teaches a wide range of classes on property management topics; she is a keynote speaker on property management and housing issues and has published numerous articles for apartment associations Patti is a repeat guest speaker at UCLA. She also holds various certifications in the industry related to her field, such as a CA licensed Real Estate Broker, CCRM, lead based paint certified renovator from the EPA, Fair Housing and more.
In Rush to Redevelop, a California City Tramples Property Rights
By Steven Greenhut
Urban renewal efforts should recognize that existing businesses and new residents can coexist.
Nearly 17 years ago, I penned a feature column for The Orange County Register about Santa Ana, Calif ’s “Renaissance Plan,” which was a city idea to drive out nearly 130-plus commercial and industrial businesses and replace them with a highrise transit-oriented dis-trict featuring condos and apartments . The plan also called for revamping downtown . It was typical of the kind of projects that “urbanists” were pushing nationwide
I’m all for high rises, housing construction and downtown improvements—but not in a manner that obliterates people’s property rights in the process . As I wrote, “I’d call it the ‘Forced Gentrification Plan’ or ‘Send Good-Paying Industrial Jobs to Rialto Plan,’ or as one per-son said sardonically, ‘Remove the Poor Mexicans from Downtown Santa Ana Plan .’” I encouraged the public to express outrage .
After a fracas ensued, and state Sen . (now congressman) Lou Correa (D–Calif.) intervened, Santa Ana officials compromised with an “overlay zone” that allowed these businesses to continue operating, even as developers built
housing projects around them A fair solu-tion, it echoed neighboring Anaheim’s up-zoning of the light-industrial Platinum Triangle . I hate this term, but this was a “win-win . ”
Time goes on and now Santa Ana is governed by officials who embrace the latest planning trends The city un-veiled its Renaissance Plan at the beginning of a subprimemortgage crisis and bursting housing bubble . Since then, housing prices have soared and the entire state is struggling with housing shortages . Hence, lawmakers passed myriad laws encouraging and subsidizing multi-family housing construction . The state has also pres-sured cities (including Santa Ana) that fall short of state-mandated housing goals
Meanwhile in 2017, then-Gov . Jerry Brown signed Senate Bill 1000, which promotes “environmental justice” by, as the attorney general’s office explains, “requiring local governments to identify environmental justice com-munities … in their jurisdictions and address environmental justice in their general plans .” Basically, cities must mitigate pollution in poorer neighborhoods
Now Santa Ana is back with a plan that echoes the Renaissance Plan . The rationales have changed, but the pol-icies remain the same . With little outreach to business owners, City Council this year approved a moratorium on the approval, expansion or modification of any industrial
uses in the SD-84 Transit Zone And the city is work-ing to permanently rezone the area . Watch out as similar ideas mat be coming to a city near you .
I’ve talked to business owners in the area, who have had minor ministerial permits and business changes re-jected by city officials because of the moratorium. Even if the city lets them operate for the foreseeable future, a permanent zone change will destroy the improved value of the land (By the way, residents in the “protected” Logan and Lacy neighborhoods fear the moratorium will drive up rental prices .)
These businesses invested heavily in the properties since 2007, including construction of new buildings . If they can’t sell for ongoing industrial uses, any sale price will be reduced to the price of raw land . According to owners I interviewed, this means drops in value of 25 percent to 75 percent And the city is making it tough for them to keep operating as is .
In an August letter, an attorney for Adams Iron Co argued the city is holding up permit approvals even though the ordinance “does not authorize the city to put on hold permits for existing industrial uses .” Santa Ana is taking a “draconian position” that extinguishes the company’s vested rights —in violation of constitutional prohibitions on “’taking’ or ‘damaging’ of private property without payment of just compensation ”
Owner Bob Adams, who I featured in a photograph accompanying that old column, told me the previous overlay zone was “a promise by the city (to allow) all
industrial businesses to remain and operate in perpetuity Now af-ter 48 years of investing, creating jobs and building a future for myself, my family and our employees, we are threatened to be eliminated by the city’s actions ” I certainly understand why he is “mad as hell . ”
Nearby residents have complained about noise and nuisance issues, but those concerns can be mitigated without shuttering businesses . Most properties are tidy commercial structures, many with attractive newer buildings This isn’t the Rust Belt These businesses provide hundreds of jobs and bolster the tax base .
In its “historic” moratorium, the city references SB 1000 . The environmental-justice concept is bizarre in this instance Generally that term refers to—and often legitimately—harm imposed on poorer neighborhoods as pol-luting industries encroach But these businesses have been here for decades . The city is encroaching on them by encouraging new housing . It reminds me of when residents complain about cows and tractors after they move into a new subdivision built on a farm field.
The city is finally meeting with the owners, but it needs to come up with a plan that respects these businesses’ property rights In the urbanist world that city planners envision, there’s no reason residents and businesses can’t coexist This is also a reminder that nice-sounding and well-intentioned “justice” legislation can lead to far-reaching injustices once local officials gain new powers.
THIS COLUMN FIRST APPEARED IN THE ORANGE COUNTY REGISTER
California’s New Housing Legislation: Key Bills Signed by Governor Newsom
By Bryan LeRoy and Sonia Nayak, Nixon Peabody LLP
32 new bills recently signed into law in California aim to address various aspects of the state’s housing crisis.
California Governor Gavin Newsom recently signed 32 significant bills into law aiming to address various aspects of the state’s housing crisis These new laws introduce changes to affordable income categories, streamline housing development processes, and enhance protections for tenants and homeowners Below is a short summary of the key bills and their implications .
AB 3093: Creates two new income categories, Acutely Low Income (ALI) and Extremely Low Income (ELI), in the Regional Housing Needs Allocation (RHNA) process and throughout housing element law .
AB 799: Makes various changes to the California Interagency Council on Homelessness (CalICH), including adding the Governor’s Tribal Advisor to the member list, developing and maintaining a strategic funding guide and calendar, and new data sharing and publishing requirements .
SB 7: Makes a number of technical changes to the regional housing needs determination process conducted by the Department of Housing and Community Development (HCD) and the RHNA process conducted by HCD or Councils of Governments (COGs)
SB 1395: Extends and expands existing California Environmental Quality Act (CEQA) exemptions for projects related to homeless shelters, extends the sunset date for the Shelter Crisis Act (SCA) by ten years,
and permanently extends the streamlined, ministerial (byright) approval process for Low-Barrier Navigation Centers (LBNCs), among other changes .
AB 1886: Clarifies that a housing element or amendment is not considered substantially compliant with housing element law until the local agency has adopted a housing element that the HCD has determined is in substantial compliance with housing element law, as specified.
AB 1893: Amends the Housing Accountability Act (HAA) to revise the standards a housing development project must meet in order to qualify for the “Builder’s Remedy,” which authorizes projects to bypass local development standards in jurisdictions that fail to adopt a substantially compliant housing element This bill also expands the scope of actions that constitute disapproval of a housing development project by a local government for the purposes of the HAA .
AB 2023: Creates a rebuttable presumption of invalidity in any legal action challenging a local government’s action or failure to act if the HCD finds that the action or failure to act does not substantially comply with the local government’s adopted housing element or housing element obligations, among other changes
SB 1037: Creates new legal remedies that can be used by the Attorney General (AG) to enforce the adoption of housing element revisions or to enforce any state law that requires a local government to ministerially approve any planning or permitting application related to a housing development project .
AB 1413: Establishes time frames in the HAA for local agencies to consider objections, comments, and evidence related to determining whether an HAAprotected housing development project is exempt from CEQA
AB 2667: Makes changes to the housing element law and Annual Progress Report (APR) process related to the requirement to affirmatively further fair housing (AFFH)
SB 393: Shifts the burden of demonstrating that posting a bond would place an undue economic hardship on the plaintiff in actions challenging certain low or moderate income housing projects
SB 450: Amends the process established by SB 9 (Atkins), Chapter 162, Statutes of 2021, for the ministerial approval by a local agency of a duplex in a single-family zone and the lot split of a parcel zoned for residential use into two parcels .
AB 2243: Revises the scope of the Affordable Housing and High Road Jobs Act of 2022, enacted by AB 2011 (Wicks, Chapter 647, Statutes of 2022), and the Middle Class Housing Act of 2022, enacted by SB 6 (Caballero, Chapter 659, Statutes of 2022) .
AB 2488: Allows the City and County of San Francisco to create a Downtown Revitalization and Economic Recovery Financing District to finance commercialto-residential conversion projects using incremental property tax revenues
AB 2199: Extends, until January 1, 2032, the sunset on an existing CEQA exemption for multi-family residential and mixed-use housing projects on infill sites in unincorporated areas and makes alterations to the exemption .
AB 2694: Clarifies that Residential Care Facilities for the Elderly (RCFEs) qualify as senior citizen housing developments under Density Bonus Law (DBL) .
SB 312: Relaxes several conditions attached to the CEQA exemption for public university housing projects, established by SB 886 (Wiener) in 2022
SB 1123: Requires local agencies to ministerially approve the subdivision of vacant, single-family lots to allow for up to ten units, as specified, and makes other changes to SB 684 (Caballero), Chapter 783, Statutes of 2023 .
SB 1211: Increases the allowable detached accessory dwelling units (ADUs) on a lot with an existing multifamily dwelling from no more than two detached ADUs to no more than eight detached ADUs, as specified.
AB 1053: Allows a borrower to request funding from the HCD as a construction loan, a traditional permanent financing option, or a combination of both.
AB 2117: Delays expiration of a development approval for the duration of any litigation over the project .
AB 2430: Prohibits a city or county from charging a monitoring fee on a 100% affordable housing development under the state’s Density Bonus Law (DBL) if the development is subject to a regulatory monitoring agreement with California HCD, the California Housing Finance Agency (CalHFA), or the California Tax Credit Allocation Committee (TCAC)
AB 2553: Requires cities and counties to set lower traffic impact mitigation fees for transit-oriented housing developments near major transit stops instead of just at transit stations and changes the definition of a major transit stop .
AB 2663: Requires local agencies that collect inclusionary housing in lieu fees and have a website to post specified information about the amount of fees collected and how they were spent .
AB 2926: Changes to the Preservation Notice Law (PNL) include (1) requiring an owner of an assisted housing development to accept a bona fide offer from a qualified entity to purchase and execute a purchase agreement or to record a new regulatory agreement with a term of at least 30 years that meets specified requirements, (2) deleting the option for an owner to decline to sell the property, and (3) making other clarifying revisions
SB 937: Makes various changes to the process for local agencies to collect development impact fees .
AB 2801: Prohibits a landlord of residential property from deducting costs for materials or supplies, the work of a contractor, or for professional carpet cleaning services from a tenant’s security deposit unless reasonably necessary to restore the premises to original condition before the tenancy, less ordinary wear and tear, and requires landlords to take photographs of the premises, as specified.
AB 2747: Requires, on or after April 1, 2025, a landlord of residential real property with more than 15 dwelling units to offer tenants the option of having their full, on time rent payments reported to at least one nationwide consumer reporting agency
SB 611: Prohibits certain fees from being charged by landlords and provides some protections to service members in connection with security charges .
SB 900: Makes a number of changes to the responsibility of homeowners associations (HOAs) relating to utility service repairs and replacements in common areas
AB 1878: Creates the Tribal Housing Grant Program Fund Advisory Committee (Committee) within the HCD upon appropriation and changes tribal liaison and technical assistance requirements that apply to HCD .
SB 1187: Creates a new tribal housing program, the Tribal Housing Grant Program (THGP), in the HCD for the construction and rehabilitation of rental and for sale housing .
The Nixon Peabody California Real Estate team is closely monitoring these developments . Our attorneys regularly work with clients to navigate California’s evolving landscape .
Bryan LeRoy is a partner in Nixon Peabody’s Real Estate practice group He represents pri-vate and public entities across California in zoning, land use, environmental compliance, energy and infrastructure and other property development matters Clients seek his coun-sel on property rights, entitlement strategy and the processing of land use permits, securing zoning approvals and managing environmental concerns and other project impacts, partic-ularly with regard to requirements of the California Environmental Quality Act (CEQA) and the National Environmental Policy Act (NEPA) . He regularly represents clients before city and county governments, the state of California and multiple federal agencies .
Sonia Nayak is the managing partner of the Nixon Peabody’s Los Angeles office. Her practice centers on real estate development, including tax credit finance, affordable housing, and commercial lending, working with clients to bring private capital to community and afford-able housing development projects in California and nationwide. She helps investors—large financial institutions, regional banks and funds—leverage unique financing structures and tools to infuse development projects with the capital needed to bring critical services to underserved neighborhoods and communities
2024 Winners
INDUSTRY ACHIEVEMENT AWARD
Aiesha Blevins, Greystar
NANCY ROBERTSON AWARD
Denise Thompson, Western Towing
NEXTGEN LEADERSHIP AWARD
Alicia Banister, Flats LLC
PRESIDENT’S AWARD
Erin Kuehn, Legacy Apartment Staffing
ASSISTANT PROPERTY MANAGER OF THE YEAR 1-100 UNITS
First Place: Ebony Rabsatt, H .G . Fenton Company
ASSISTANT PROPERTY MANAGER OF THE YEAR 101-300 UNITS
First Place: Casey Gonzales, Cameron Brothers Company, LLC
Second Place: Victor Rivera, FPI Management
Third Place: Eric Lindsey, Greystar
ASSISTANT PROPERTY MANAGER OF THE YEAR 301+ UNITS
First Place: Michelle Menne, American Assets Trust, Inc .
Second Place: Christopher Stalter, H .G . Fenton Company
Third Place: Isabella Ruiz, H G Fenton Company
COMMUNITY RELATIONS MANAGER OF THE YEAR 1-300 UNITS
First Place: Jasmine Ruiz, Sudberry Properties, Inc
Second Place: Addie Pinomesa, Urban Coast Properties, Inc
INDUSTRY PARTNER OF THE YEAR COMPANY
First Place: Cox Communities, Cox Communities
INDUSTRY PARTNER OF THE YEAR INDIVIDUAL
First Place: Ramona Chavez, Legacy Apartment Staffing
LEASING PROFESSIONAL OF THE YEAR 1-100 UNITS
First Place: Ashleigh Huntington, H G Fenton Company
Second Place: Celeste Hernandez, Buchanan Property Management Corp
LEASING PROFESSIONAL OF THE YEAR 101-300 UNITS
First Place: Taylor David, Flats LLC
Second Place: Braden Ingraham, H G . Fenton Company
Second Place: Hayley Lewis, Greystar
Third Place: Alexandria Peralta, Sudberry Properties, Inc
LEASING PROFESSIONAL OF THE YEAR 301+ UNITS
First Place: Tony Garcia, Greystar
Second Place: Stephen Murphy, H G Fenton Company
Second Place: Esperanza Ojeda, H .G . Fenton Company
Third Place: Devin Fragoso, Urban Coast Properties, Inc
MAINTENANCE SUPERVISOR OF THE YEAR 1-300 UNITS
First Place: Roger Mendoza, H G Fenton Company
Second Place: Jonathan Villa, American Assets Trust, Inc
Third Place: Edwin Bahena, H G Fenton Company
MAINTENANCE SUPERVISOR OF THE YEAR 301+ UNITS
First Place: Mario Arzate, H G . Fenton Company
MAINTENANCE TECHNICIAN OF THE YEAR 301+ UNITS
First Place: Juan Vargas, H G Fenton Company
Second Place: Gama Rendon, H G Fenton Company
Second Place: Omar Arzate, H G Fenton Company
Third Place: Narciso Corona, Sudberry Properties, Inc
MAINTENANCE TECHNICIAN OF THE YEAR 1-300 UNITS
First Place: Adrian Martinez, Sudberry Properties, Inc
Second Place: Armando Aguirre, FPI Management
Third Place: Saul Correa Vargas, H .G . Fenton Company
Second Place: Salvador Gomez, H G Fenton Company
Third Place: Victor Guerrero, H G Fenton Company
MULTI-SITE MANAGER OF THE YEAR 1-300 UNITS
First Place: Kalani Brinkoetter, H G Fenton Company
Second Place: Jessica Rodriguez, Sunrise Management Company AMO
Third Place: Jamika Hunt, Cameron Brothers Company, LLC
MULTI-SITE MANAGER OF THE YEAR 301+ UNITS
First Place: Isaac Sterman, H G Fenton Company
Second Place: Johnny Montes, Cameron Brothers Company, LLC
PORTER OF THE YEAR 1-300 UNITS
First Place: Maria Avitia, H G Fenton Company
Second Place: Rocio Rodriguez Tapia, Sunrise Management Company AMO
Third Place: Amanda Freeman, FPI Management PORTER OF THE YEAR 301+ UNITS
First Place: Corin Languren, American Assets Trust, Inc
Second Place: Maria Rosales, Cameron Brothers Company, LLC
Third Place: Guillermo Lugo, H G Fenton Company
PROPERTY MANAGEMENT COMPANY OF THE YEAR
First Place: Urban Coast Properties, PROPERTY MANAGER OF THE YEAR 1-100 UNITS
First Place: David Valdez, Sunrise Management Company AMO
Second Place: Brian Braden, Greystar
Third Place: Gabriela Diaz, Sunrise Management Company AMO PROPERTY MANAGER OF THE YEAR 101-300 UNITS
First Place: Jackie Casaletto, H G Fenton Company
Second Place: Alicia Banister, Flats LLC
Third Place: Dannika Condon, H G Fenton Company
Third Place: Jon Perea, CPM, ARM, Sunrise Management Company AMO PROPERTY MANAGER OF THE YEAR 301+ UNITS
First Place: Yesenia Escalante, FPI Managment
Second Place: Jose Soto, H G Fenton Company
Third Place: Andrea Alexander, Greystar
PROPERTY OF THE YEAR 1-29 UNITS
First Place: Loma 21, American Assets Trust, Inc
Second Place: Santa Fe RV Park, American Assets Trust, Inc
PROPERTY OF THE YEAR 30-100 UNITS
First Place: Bella Del Mar, H .G . Fenton Company
Second Place: TRU Bankers Hill, H G Fenton Company
Third Place: The Warwick, Sunrise Management Company AMO
PROPERTY OF THE YEAR 101-300 UNITS
First Place: The Nash, Flats LLC
Second Place: BLVD North Park, H G Fenton Company
Third Place: Aquatera Apartment Homes, H G . Fenton Company
PROPERTY OF THE YEAR 301+ UNITS
First Place: Pacific Ridge Apartments, American Assets Trust, Inc
Second Place: Circa 37, Sudberry Properties, Inc
Third Place: Tierrasanta Ridge, H G Fenton Company
REPOSITIONED PROPERTY OF THE YEAR 1-300 UNITS
First Place: Softwind Point Apartments, Greystar
Ruby Sponsors
Why Murals Are the Missing Piece for Apartment Complexes
By Gabriel Flores, Float Boater Murals
Apartment complexes today are more than just places to live—they’re communities, and the experience a tenant has while living there can make all the difference when it comes to leasing decisions
In a highly competitive rental market, property owners need to stand out, and one way to do this is through artistic enhancements that elevate the entire space . While landscaping and renovations play their role, there’s a dynamic element that’s often overlooked: murals .
Murals are powerful tools, not just for boosting curb appeal but for giving a property a unique identity that resonates with current and potential tenants A wellexecuted mural can completely transform a bland, blank wall into a statement piece that becomes a talking point, not just within the complex but throughout the neighborhood . Murals add character, color, and a sense of vibrancy that’s hard to achieve through traditional building enhancements alone .
This trend is catching on fast . More and more property owners are recognizing the value murals bring to their
buildings, and it’s a movement that’s only going to grow . Murals aren’t just decorative—they make a property memorable, setting it apart from the competition in ways that more conventional upgrades simply can’t . And, beyond aesthetics, murals have an emotional impact They foster a sense of community by reflecting the spirit of the local area or embodying the values of the building itself . Tenants feel a greater connection to a property that’s thoughtfully designed, and when they feel at home in their environment, they are less likely to leave This leads to higher retention rates and a more stable rental income over time
Interior spaces, too, benefit from this artistic approach. Common areas, parking structures, and hall-ways are often overlooked when it comes to design upgrades, but these spaces are prime locations for murals that can elevate the tenant experience . A vibrant mural can turn a previously sterile or forgotten area into a visually engaging environment that enhances the overall feel of the building . There’s also a practical side to murals . Tenants, especially younger ones, are highly engaged
Continued from page 26
on social media, and a striking mural provides a natural backdrop for photos and posts, offering free, organic marketing as tenants share their lives online of exposure helps spread the word about your property, making it more appealing to prospective tenants without the need for expensive advertising campaigns
Murals are also a sustainable option for improving your property . on existing walls, avoiding the need for more invasive and resource-intensive upgrades means that property owners can make a significant visual impact without the environmental cost or disruption that comes with largescale renovations
With so many benefits, it’s no surprise that more and more property owners are looking to invest in murals and choosing the right artist is key to making sure you get the most out of this investment
That’s where Float Boater Murals comes in Led by DamnitGabe, an artist with over 20 years of experience painting murals, we’ve worked on a diverse range of projects, including high-end hotels like the Fenix Hotel in Hollywood and the STILE Hotel in downtown Los Angeles, as well as transforming spaces like the Mountain Crust event venue
Our work spans apartment complexes, commercial properties, and residential spaces, all tailored to meet the unique needs of each
Our approach is simple: Whether you need a bold, modern design or something more subtle and classic, we can create custom murals tailored to your property’s unique needs and aesthetic With our experience working on projects big and small, we know how to execute murals
If you are ready to take your apartment complex to the next level and create a lasting impression, Float Boater Murals and DamnitGabe can help you achieve that vision Investing in a mural is in-vesting in the future of your property— and we’re here to make sure that investment pays off. For more information, call (562) 228-5392 or go to www. floatboatermurals.net.
When You Call A Vendor
MANAGEMENT MAGAZINE
PREPARING FOR THE BIG ONE: WHY SEISMIC RETROFITTING MATTERS FOR SOFT-STORY BUILDINGS
by Ali Sahabi, Optimum Seismic
As recent earthquakes across California have reminded residents, preparation for a major seismic event is crucial . Communities from El Centro to Morgan Hill have felt the earth’s tremors, underscoring the need for comprehensive earthquake readiness For those living in soft-story apartment buildings, seismic retrofitting is a vital part of this preparedness, as these buildings are particularly susceptible to damage and collapse during major earthquakes
Soft-story buildings typically have open spaces, like garages or large windows, on the ground level, which lack the structural reinforcement needed to withstand significant shaking. During an earthquake, these structures can collapse under the weight of the upper stories, posing serious safety risks to residents and others nearby. Seismic retrofitting strengthens these buildings, helping prevent collapse and protecting lives In California, where over 80% of residents live within 30 miles of an active fault line, investing in retrofitting for vulnerable structures is an essential step toward a more resilient future
Preparedness involves more than structural adjustments, though It requires educating the public about earthquake safety and offering tools to help people protect themselves during a quake The California Governor’s Office of Emergency Services (Cal OES) offers several valuable resources for residents, including the Earthquake Warning California program . This initiative provides alerts through the MyShake app, Android Earthquake Alerts, and Wireless Emergency Alerts (WEAs) . Powered by the ShakeAlert system, which uses seismic network data, these alerts notify residents of incoming shaking moments before it reaches them, giving them critical time to take protective measures
Beyond alerts, Cal OES promotes key safety practices, such as developing emergency plans, packing supply kits, and securing furniture and appliances to prevent additional hazards during a quake Residents are encouraged to use the MyHazards tool on the Cal OES website to learn about local risks and ways to reinforce their homes . By addressing structural vulnerabilities and preparing for potential hazards, Californians can mitigate some of the dangers posed by seismic activity .
For soft-story apartment buildings, mandatory retrofitting initiatives in some areas have already proven effective. Cities like Los Angeles and San Francisco have enacted ordinances requiring owners to retrofit buildings to meet updated safety standards. These retrofits involve reinforcing the base level with steel frames, concrete shear walls, or other structural support systems, reducing the risk of a soft-story collapse By prioritizing such upgrades, these cities aim to protect residents and infrastructure, creating a safer living environment for all .
In 2019, on the 30th anniversary of the Loma Prieta earthquake, California launched the nation’s first statewide Earthquake Early Warning System . This system, paired with ongoing retrofitting efforts, marks significant progress in the state’s quest for resilience. However, the responsibility for safety also rests with individual residents, who can take proactive steps to prepare for the “Big One . ”
The combination of seismic retrofitting for at-risk buildings, early warning systems, and public education forms a multi-layered approach to earthquake preparedness Californians are urged to stay informed, take advantage of available resources, and invest in retrofitting measures for a safer, more resilient future.
If you own a building that you believe may be vulnerable to damage, it’s important to educate yourself on costeffective measures that can be taken to save lives, protect your assets, and preserve the well-being of the community-at-large Find out the risks you face Call Optimum Seismic at 833 978-7664 for a free building evaluation today
Sources:
Building Earthquake Resiliency. Published: Nov 10, 2024
work includes softstory multifamily apartments, tilt-up, non-ductile concrete, steel moment frame and unreinforced masonry (URM) buildings To arrange a complimentary assessment of your building’s earthquake resilience, contact Optimum Seismic at (833) 978-7664
• Remodeled units
• New double paned windows
• New flooring
• New AC/Heat mini splits
• Security doors
• Gated property
• New paint inside and out
• Three parking spaces
* IMAGES VIRTUALLY STAGED
This gated property features three beautifully remodeled units, each o ering two spacious bedrooms, one bath, in-unit laundry hookups, AC/Heat mini splits, a modern kitchen, new windows, flooring, and fresh paint throughout. With bright, open layouts and plenty of natural light, each unit feels inviting and well-designed. The property also provides three on-site parking spaces for added convenience. Whether you choose to occupy one unit or rent all three, this property presents an outstanding investment opportunity.
The property is steps from Expo light rail line, 4 minutes from USC, Exposition Park, home of the world-famous LA Coliseum, California Science Center, BMO Stadium and the new George Lucas Museum of Narrative Art. Exposition Park will play host to many key activities and events in the upcoming 2028 LA Olympics. Ten minutes to DTLA and Crypto Center as well as a 20-minute drive to SoFi Stadium.
REAL ESTATE TITLE CLAIM DISPUTE TOOLKIT
By Nate Bernstein, Esq Managing Attorney - LA Real Estate Law Group
Disputes involving real estate title can be complex and can involve multiple parties . Title claims can involve such issues as gaps in the chain of title, fraudulent transfer of real property, forged documents, recording in the wrong county, mistakes in title documents or maps, ownership disputes, unrecorded interests, lender priority disputes, or partition issues, and lis pendens disputes . These are just some examples, and there are many others . Issues may be litigated in courts of general jurisdiction where real property is located, the local probate court, and in certain situation U S Bankruptcy Court If you purchase property, you should have title insurance, and if you loan money secured by real property you should have title insurance . It is well worth it to have an insured deed with a policy of title insurance issued by a title insurance company If you purchase property at a property tax lien sale auction, you may have to file a quiet title action in order to have a marketable title for a future transaction If you are submitting a real estate title claim to your title insurance company or a party to quiet title litigation, here is a checklist of items and issues and role players to have and think about, that you will need to help you resolve the claim or to assist your real estate counsel:
COPY OF THE OWNERSHIP DEED
Open up your real estate file and pull out your ownership deed The deed has much useful information It states who is the owner of the property at a given point in time . Usually the deed is in the form of a grant deed and has a recording number, the date of recordation, and the county it is recorded in . The deed also contains the assessors parcel number and the legal description The deed can also take the form of a quitclaim deed or a deed with a right of survivorship or a community property interest
The deed will tell you who or what entity own the property at a given time - an individual, married couple, trust, or limited liability company, or corporation, for example . It also has the legal description attached . If you don’t have a copy of the grant deed, you can call the customer service department at a title insurance company, your escrow company, or the county recorder’s office to obtain a copy . Obtaining a copy of the deed is always a good starting point in your journey to resolve a title issue .
PRELIMINARY TITLE REPORT
A “prelim” is an essential tool for handling any title issue, and it is created by a title insurance company
The prelim states who the title to the estate or interest
THE “DOCS”
at the date hereof is vested in at the time the report is provided, and also states the type of estate or interest in the land hereinafter described or referred to covered by this report is- for example, “a fee ” It has the legal description and a listing of most or all items that are recorded on title at a given point in time It serves as a “title catalogue” of all recorded items that is listed numerically and by recording date The prelim contains a list of title exceptions and exclusions, informational notes on such items as property taxes, and a parcel map. Documents are recorded at the office of the county recorder where the property is located . Title insurance companies can generate the prelim, and will sell it to you for a small fee . During a real estate transaction, a copy of the prelim is provided to the buyer or the buyer’s agent so the buyer can review the state of the title . Certain title companies can provide a useful prelim with links to the actual documents that are recorded . The recorded document has a county recording number, the date recorded, and the complete document . Take a few minutes at the beach or poolside or at a local starbucks to review your preliminary title report- you may discover items that you did not know exist . You will discover that multiple documents are recorded on the same day- such as an ownership deed or a deed of trust . The “prelim” can provide useful information on items that may be able to be removed from your title profile without litigation When you review the prelim, you will discover items on your title that you may not know about- perhaps un unpaid deed of trust or property tax bill, or an abatement lien . You can also discover gaps in the chain of title A prelim can also miss items, contain errors, and this can lead to claims down the line . The prelim is an imperfect snapshot !! But, for the most part, the prelim is the best and most complete snapshot of the state of the title profile you can obtain.
COPY OF THE TITLE INSURANCE POLICY
The policy is usually issued for a homeowner or secured lender at the time a property is purchased . The seller purchases the policy for the buyer For example, the policy may be called a “CLTA Standard Coverage Policy .” If a lender is involved in the transaction, the lender will have a separate title policy to protect its lien priority interest- sometimes called an “ALTA loan policy” . The policy will state the name of the company who issued the policy, who is insured, the type of interest that is covered (for example- “fee simple”) and the amount of coverage, and will also state what is covered, and what is not covered . The policy contains a lot of legal ease and terminology, but don’t let it overwhelm you
A policy of title insurance will contain items such as covered risks, deductible amounts, exclusions from
coverage, conditions and stipulations, limitations of liability, subrogation, and in some policies, an arbitration provision (because title insurance companies don’t like juries !! ) It is very important to have title insuranceespecially if you get sued in a quiet title case . Generally speaking, the title insurance company has a duty to defend you in such a litigation case or to file an action to quiet title to fix the title issue.
INITIAL LITIGATION DOCUMENTS
If you or your trust, LLC, or corporation gets sued on a title claim and or a lis pendens is recorded that effects your title, you should take the time to read the summons and complaint documents, and you should pay close attention to time deadlines to respond to the case . In most litigation, the time is 30 calendar days from the date of service . Time extensions to respond are frequently negotiated The documents will contain the name of the Court and the case number, and generally you can review the docket on line. Perhaps the plaintiff wants to fix the title or unwind a fraudulent transfer through litigation, but is not suing for monetary damages . The case could be settled by signing additional documents or a stipulation and court order. Other cases involve fixing the title, and allegations of monetary damages You have the right to your own attorney. You can also file a claim with your title insurance company under your policy and see what the company does with the claim
THE TITLE “PLAYERS”
REAL ESTATE ATTORNEY
A real estate attorney can play various roles in the area of title disputes and real estate transactions in general Generally speaking, the roles are transactional, claim filing and monitoring, prosecuting or defending litigation, dissolving a business relationship, providing a second opinion analysis, and settlement negotiation The attorney can review the documents and provide basic advice and counsel You can hire an attorney for assistance with transactional documents during a pending escrow, or can negotiate certain issues . The attorney can organize the facts, documents, and legal authorities to file a title insurance claim, and can counsel the client along the way while the claim is being administered by the title insurance company adjuster . The attorney can help you review a court docket to check what is happening in pending litigation, who the parties are, what rulings have been made by the Court, and what hearings are pending and on calendar
If a title insurance company agrees to defend or prosecute your claim, the title insurance company can refer the matter to its own litigation department or hire outside counsel for you, at its own expense The
attorney can also defend title litigation, and prosecute cross-complaints for indemnity and contribution . After you have hired counsel or an attorney has been hired for you by your title insurance company, don’t be afraid to get a second opinion if you think something is just not right and you want a second look and further review
WORKING WITH A TITLE OFFICER
Generally speaking the job of a title officer is to: review and analyze land records and other legal documents to verify legal ownership of property and to identify any claims or defects that might affect the title.
Prepare and issue title insurance policies that protect mortgage lenders and property buyers against losses resulting from title defects
Coordinate with real estate agents, attorneys, lenders, buyers, and sellers, and title underwriters to facilitate the closing process, ensuring all necessary documents are correctly executed and filed and
Perform detailed searches of public records to trace the history of property ownership and to compile a chain of title
It is important to develop communication and some rapport with a title officer at a title insurance company. This is especially the case where you purchased a property with an uninsured deed, purchased at a property tax lien sale auction, and you need to file a quiet title action. A title officer works for a title insurance company and can provide some guidance on what is needed to fix and remedy the title problem so title insurance can be issued in the future. The name of a title officer may be stated on the actual preliminary title report . The goal is have a marketable title, such that an insurance company can issue a policy of title insurance for a purchaser, or can process a secured loan by provided by a mortgage lender who can receive a lender’s policy. The title officer works for the insurance company and is not your fiduciary or advocate, but can provide valuable guidance and a pipeline to the underwriting department to see what is needed to insure title. The title officer can also see what the underwriting department specifically requires to issue a policy of title insurance going forward . The title officer can work with your own attorney. Title insurance companies are trying to avoid future claims . They make money by selling title insurance, and resolving claims quickly- if possible. Title officers can be more active or passive, but since they have access to the underwriting department of the title insurance company and critical information, they are essential to navigating and resolving your title issue or avoiding a future issue
Please turn to page 37
EXHIBITOR BENEFITS
Grow your network and connect with highly engaged rental housing providers.
Limited booths remain, so register early to secure your preferred spot.
SPONSOR BENEFITS
Increase brand recognition and show your support with an event sponsorship. Sponsor early to maximize your visibility!
TITLE CLAIMS COUNSEL
If you file a claim with a title insurance policy, the claim will be assigned to a claims representative . The claims representative is like an insurance adjuster . Title claims counsel is not your attorney and not your fiduciary or advocate . In the title insurance business, most claims representatives are licensed attorneys, but don’t represent you as a client . It is important to understand that claims counsel work in a different department than the litigation attorneys at a title insurance company Initially, after receiving the claim, claims counsel will usually investigate and try to resolve the claim without litigation This may include obtaining additional signatures of certain parties on key documents, and conducting an investigation . The claims counsel will review the issues and determine whether there is coverage for the claim . Claims counsel can also deny coverage for certain items and accept coverage for certain items, based on the language in the title policy If claims counsel cannot resolve the claim, claims counsel may assign the claim to in house litigation attorneys that work for the title insurance company Claims counsel directs litigation counsel with legal strategy . Alternatively, claims counsel can assign a claim to outside attorneys and law firms. This may be the case if there are multiple parties, and conflicts of interest exist. Claims counsel has “authority” to settle a claim . Authority means they can pay money to settle a claim, or pay attorneys to try to resolve the claim through a litigation based strategy That level of authority can be increased or limited . Claims counsel play a very important role in settlement of disputes, have the authority to offer money on a claim, and also attend mediations to settle cases
Keep in mind that claims counsel are also the “No man” of the title insurance company, and are trained to say “No” to coverage of certain aspects or components of claims They bring to life and accentuate exceptions and loopholes in the murky language of title insurance policies . They try to toe a line between what is a proper
“No” to coverage, and, alternatively, what could be considered “bad faith” denial of a claim .
Keep in mind, simply stated, that title claims counsel are essentially insurance company adjusters and are not your attorney and it is advisable to have your own attorney who can also help communicate with and negotiate with claims counsel or litigation counsel hired by the title insurance .
OUTREACH TO GOVERNMENT AGENCIES
If a government agency filed a lien of some sort on your title, sometimes the lien can be released through negotiation without protracted court litigation . Government agencies often file tax liens or nuisance abatement liens. It may take a few persistent phone calls to a government agency to find out who has authority to fix the title issue, but it is worth the effort. Sometimes a lien may exist from a previous owner, or your seller . Its important to review the preliminary title report for these types of liens that cloud your title. Trying to remove items from a title profile from a prior owner can make a quiet title action much easier, narrower, and less expensive
OTHER PLAYERS
If you are in the real estate business, obviously, you know that an escrow officer can be a useful source of information in a real estate transaction, and can assist with providing certain information relating to a title claim . Don’t be afraid to ask the escrow officer assigned to the file to provide information or documents that you need. Real estate brokers and their agents will also be able to assist you with information and obtaining copies of documents that you may not have in your personal file.
I recommend that when you close an escrow to a transaction- you create a master file that has all of your documents organized by categories . You can have a paper file, or a computer folder that has all your PDFs. Being organized will help you think clearly about your title issue, and also help your attorney to represent you .
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, landlord tenant law, employment law, and bankruptcy matters . Attorney Bernstein served as in house corporate litigation counsel at Fidelity National Title Insurance Company, and represented the company subsidiaries and insured institutional lenders He is a 31 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 He serves as an expert witness on real estate, title, joint venture, and other business issues
Mr Bernstein, a frequent speaker at AAGLA seminars, and has been a featured speaker with the California Associations of Realtors, Apartment Owners Association, the Collateral Lenders Association, and the Beverly Hills Bar Association He 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 office at (818) 383-5759, or email natebernstein44@gmail .com .
Financial advisory Ground Leased Property Can Offer Better Tax Efficiency
BY CHRISTOPHER MILLER, MBA SPECIALIZED WEALTH MANAGEMENT
Occasionally, I’ll see a property for sale that is subject to a ground lease Since these assets are different than ones purchased the “traditional” way, I think that an article exploring these differences will be interesting .
WHAT IS A GROUND LEASED PROPERTY? FEESIMPLE VS. LEASED-FEE INTERESTS
If you own a traditional single-family home in California, you most likely own the Fee Simple title to your property . You own the land and improvements on the property in perpetuity: forever A ground leased property has two components: the ground itself, and the Leased Fee interest A Fee Simple owner can lease his land to a tenant, who will then hold a Leased Fee interest . These leases are usually very long term – 100 years is not uncommon The tenant can then build and operate property on that land through the term of his loan – provided that the rent payments are made in a timely manner . When the lease expires, the landowner can either renew the lease, or take back the property and all the improvements on it
If a Leased Fee property has a building on it, the Lessor (tenant) owns that . He can also sell the lease to another owner, who then takes over the improvements, income and lease payments . If the lease expires, however, the landowner will regain possession of the land – this includes ownership of any improvements
LONG TERMS ARE CRUCIAL WITH GROUND LEASES
Let’s look at an example and say we have a Bank of America branch that has a Leased-Fee title for sale . If this ground lease has a long 90-year term, then the new owner will enjoy the benefits of that property (income from rents) for the next 90 years . Due to changes in land use over time, it is unlikely that bank building will remain there for the entire term: The Leased Fee owner is free to demolish that bank building and replace it with apartments, a car dealership or a fast food restaurant – anything he can get the property zoned for
If, on the other hand, that ground lease only has 10 years remaining with no renewal options; a buyer is purchasing the same rights as above, but only for 10
Christopher Miller is a Managing Director with Specialized Wealth Management and specializes in tax-advantaged investments including 1031 replacement properties Chris’ real estate experience includes work in commercial appraisal, in institutional acquisitions for a national real estate syndicator and as an advisor helping clients through over five hundred twenty-five 1031 Exchanges Chris has been featured as an expert in several industry publications and on television and earned an undergraduate business degree and an MBA emphasizing Real Estate Finance from the University of Southern California . Chris began his real estate career in 1998 . Call him toll-free at (877) 313 – 1868 .
years In 2034, the landowner can reclaim his land and will now own any improvements on it . Such a leased fee interest would be much cheaper than the 100-year example above, to reflect the fact that only 10 years of income would be available .
A LESSON I LEARNED ABOUT GROUND LEASED PROPERTY
25 years ago, I worked for a real estate investment company that tried to acquire an office building in Hawaii . The owner of the company fell in love with this property and was desperate to get a deal done (Perhaps he wanted an excuse to travel to Hawaii regularly on business . ) This particu-lar property only had 15 years left on the ground lease First, we approached the landowner (the lessor) and inquired about extending this lease The landowner was very candid – he would not extend the lease and intended on taking possession of the property in 15 years . So we went back to the seller for a steep price discount – we may still be interested in buying the property, but the price will need to reflect the only 15 years of benefits we’ll get . The seller was open to work with us, but we learned that lenders would not lend money on a property with less than 30 years left on the ground lease . We explored buying it all-cash as part of a 1031 Exchange, but struck out there too Upon researching the IRS’ 1031 Exchange code, we found quickly that the government does consider LeasedFee interests to be real property for 1031 Exchange purposes – but only if the re-maining ground lease term is greater than 30 years
WHERE GROUND LEASED PROPERTIES ARE COMMON
Ground leases are often seen where development is dense and land is scarce . Trump Plaza and the Flatiron Building in Manhattan, for instance, are on leased land . With a ground lease, the land-owner –who may lack the financial resources to build a $200 million property – can still earn in-come from their land . The lessor, on the other hand, gets access to a coveted lot and can earn great tax benefits during their ownership period as I’ll discuss below .
TAX ADVANTAGES OF A GROUND LEASE
Depreciation is a powerful tax benefit that we investment real estate owners receive . Although our property is often not declining in value we can, for tax purposes, treat it like it is . For residential properties, we can write off as a depreciation expense the improvement value of our property over 27 5 years . (For other commercial properties, it is 39 years .) Because land is not depreciable, we need to estimate
how much of our property’s value comes from the improvements on it – 80% is a good example to use . Therefore, a $2 million apartment purchase will yield an annual depreciation deduction of ($2 million x 80% / 27 .5) $58,181 . That means $58,181 of our annual income will be completely tax deferred (potentially forever .)
In a ground leased property, however, we don’t own the land itself – the only thing we own is the improvements Therefore, our purchase price can be fully tax deductible . In the above example, our investor could depreciate the full purchase price of his property – for $72,727 of annual tax deferred income: 25% more tax benefits!
This month, we reviewed some of the benefits and drawbacks of ground-leased property When I see one for sale, I don’t immediately skip over it – I’ll take a closer look to see if the numbers could make sense for me . If you have any questions about them, please call my office at (877) 313-1868 .
Landlord Legal Questions &Answers
by Kimball, Tirey & St. John LLP
Question: A tenant gave a 30-day notice of move out on the 10th of the month and turned in his keys to the owner 5 days later on the 15th . Is he still liable for the balance of the rent owed?
Answer: Yes, the tenant still owes for the 30-day notice period, minus amounts that can be collected from a replacement tenant The landlord has to make a diligent effort to relet .
Question: Our tenants were supposed to move out in two weeks . However, the house they were moving into is not completed and they need to stay for another fifteen days . I have no problem with this, but my question to you is what if they do not vacate on time?
Answer: You should have them sign an extension of the vacate date agreement to vacate on a specific date so if they fail to vacate you can immediately proceed with an action for unlawful detainer . Do not accept any money that goes beyond the new vacate date
Question: When you return a security deposit disposition to the vacating tenant, what is the statute of limitations if they do not agree with the deductions and wish to sue in small claims court?
Answer: If your rental or lease agreement was in writing, the statute of limitations is four years . If the agreement was verbal, it is two years . The time starts to run from the date of the alleged breach .
Question: My renter was walking down the stairs carrying bags of groceries and fell and broke her wrist . Can I be sued and a judgment obtained against me?
Answer: You would only be liable if you were negligent in the way you maintained the stairs and your negligence caused the injury .
Question: Our window was broken by a ball hit by the tenant of a neighboring property They admitted they owed me for a new window but moved away before I could collect on it . Is the owner of the property responsible because it was their tenant?
A
nswer: The owner of rental property is not normally responsible for the unforeseeable acts of their tenant In order for the owner to be liable, you would have to prove that the owner knew or should have known his tenant would have caused physical damage to your property, and the owner failed to take reasonable steps to protect your property from harm .
Question: I have a resident who was just put in a detoxification clinic . Her sister wants me to allow her inside to remove all of her personal possessions and move her out because she says the resident is not planning on returning . What can I do to protect myself from being sued by the resident because someone took her belongings and management re-rented the unit?
Answer: Under California law, the sister has the legal right to access the unit only if your tenant or a court grants that right to the sister . Therefore, any family member who wants inside should provide written authorization from the resident, or power of attorney allowing them to enter the unit, or a court order . Make sure the signatures match or require a notarized statement and check identification Likewise, if the resident is intending to vacate the unit that should also clearly be stated in writing by the resident
Question: I am an on-site manager and I am upset because I was tape-recorded without my knowledge or permission by someone who was “shopping” the apartment community Is this le-gal?
Answer: California Penal Code §632 prohibits electronically recording “confidential” conversations without the consent of all parties to the conversation . A conversation is “confidential”
when a party to the conversation reasonably expects that the conversation is solely between the conversing parties, and they will not be overheard or recorded . However, there is no violation in cases where the expectation of privacy does not exist, such as telephone answering devices . Violation of this law may result in criminal fines and/or jail time In addition, the recorded party may bring suit against the violator for the greater of $5,000 or three times the actual damages suffered, for each violation .
Question: My understanding is that unlawful detainer actions remove the tenant from a specific rental unit My contention is that the tenant is also not allowed anywhere on the premises of the common areas of the premises after an eviction . Frequently the evicted tenant hangs around the premises and causes additional problems out of spite What can be done and what are my legal rights as owner?
Answer: If an evicted tenant returns to the common area of the rental property without invitation by any of the current residents, or without your permission or consent, that person is trespas-ing The common area of the apartment community is under the direct control of the owner and manager, and anyone present without authority or consent is guilty of trespass .
By Jennifer Jacobus, CEO, San Diego Employers Association
Starting October 10, 2024, the San Diego Fair Chance Hiring Act has brought fresh guidelines that may affect a business’s hiring practices . This new ordinance aims to create more equitable employment opportunities by removing unnecessary barriers for those with criminal records Here’s what you need to know about the changes .
WHAT IS THE FAIR CHANCE HIRING ACT?
The Fair Chance Hiring Act is San Diego’s latest effort to ensure fair employment opportunities for individuals with past convictions It requires employers to evaluate a candidate’s qualifications without immediately disqualifying them due to their criminal history . This aligns with the “Ban the Box” movement, which has already influenced hiring laws nationwide. Under this act, you can no longer ask about criminal history on job applications or conduct background checks until after making a conditional offer of employment. While this is already banned under federal law and other state law, there are some differences, and an overview of the Act below can serve as a good reminder
KEY PROVISIONS OF THE ACT:
1 . Employers can’t ask about an applicant’s criminal record on applications or during early stages of the interview process .
2 . Background checks are only permitted after a conditional offer of employment. This approach allows employers to assess applicants based on qualifications, skills, and experience before considering criminal history
3 . This is important to remember; if a background check reveals a criminal record, the employer must conduct an individualized assessment of how the criminal history relates to the job Consideration
should include the nature and gravity of the offense, time passed since the offense, and how it may impact job performance
4. If a job offer is withdrawn based on criminal history, employers must provide a written notice to the applicant, explain the decision, and allow the applicant to dispute the background check’s accuracy or offer context within a defined period.
For business owners and those responsible for hiring, compliance with the Fair Chance Hiring Act means making adjustments to hiring procedures Here are a few steps to help you integrate these changes smoothly:
• Review Job Applications and Interview Processes: Ensure that job applications don’t include questions about criminal history Train your hiring team to avoid inquiries about criminal records in interviews .
• Delay Background Checks: Make sure background checks are only conducted after a conditional offer. Establish a process to review an applicant’s criminal history in relation to the role .
• Train Your Team: The act requires a fair and thoughtful approach to hiring. Training your staff will help avoid unintentional biases and ensure compliance .
The Fair Chance Hiring Act is more than just a compliance requirement—it’s a chance to build a more inclusive workforce . By giving individuals a fair shot, your business can tap into a wider talent pool and demonstrate social responsibility, which appeals to clients and employees alike . Plus, fair hiring practices can enhance employee loyalty, reduce turnover, and strengthen your reputation .
For further guidance, resources like the San Diego Employers Association, www .sdeahr .org, are available to help you navigate these changes
SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION -
By Paul J. Watrous, President, National Roof Certification & Inspection Association
Balcony Inspections
The Senate Bill 721 Game Plan:
The Governor Just Moved the Chains, But Don’t Fumble Your Inspection Responsibilities
Football season is in full swing, and just like a clutch first down in the fourth quarter, property owners and managers got a lucky break The governor just moved the chains for Senate Bill 721 (SB 721) compliance by extending the deadline by one-year to January 1, 2026 That’s right, you’ve got some extra time to get those mandatory balcony and exterior elevated elements (EEE) inspections scheduled and completed . But here’s the thing—just like in football, delaying your play can cost you “big time . ”
SB 721 is the law that requires inspections of your property’s exterior elevated elements or “EEEs” (think balconies, decks, and stairways, etc ) to ensure they’re safe . The aim is simple: avoid dangerous structural failures and protect tenants and investments alike . And while you might be tempted to take a victory lap with that deadline extension, here’s why now is the perfect time to huddle up and get your inspections done
NEW RULES, NEW OPPORTUNITIES: SB 721 AMENDMENTS YOU NEED TO KNOW
The rules have changed since SB 721 was passed in 2018 and became the law in 2019, and they’re good news for you as a property owner or manager:
• Inspectors can now perform restorative repairs after completing inspections . Inspectors are no longer prohibited from offering restorative repairs after completing the inspection While not every inspector will have the resources to perform these repairs, this amendment opens up the possibility of working with a single professional to both assess and address any issues—making the process more streamlined when feasible (Effective January 1, 2022: California Code, HSC 17973)
The deadline for compliance has been extended to January 1, 2026. This gives property owners and managers more time to get inspections
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.
completed without the pressure of an immediate deadline. (Effective September 28, 2024 Per 2024’s Senate Bill 2579).
Gen Z job seekers cite a company’s commitment to diversity as an important factor in deciding whether or not to accept an offer.”
So, what does this mean for you? It might feel like you’ve just gained a few extra yards and can now take it easy, but let’s not forget—the clock is still running . Here’s a word of caution: Don’t wait until the twominute warning…again!
WHY WAITING ISN’T A WINNING STRATEGY
Even though the deadline has been pushed, procrastination is not your friend Like any smart coach, you should plan ahead . Here’s why:
1 . Prices are only going up . Demand for these inspections is increasing, and with so few certified inspectors, prices are bound to rise . The longer you wait, the more you might end up paying .
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
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.
2 . Not enough players in the game . There currently aren’t enough service providers to inspect every building before the new deadline hits . Imagine trying to score a last-minute touchdown with half your team missing You don’t want to be the one left scrambling to find an available inspector when everyone else has already locked theirs in
The extra time is a bonus, but the smart-est property managers and owners are making their moves early . To get started, check out the National Roof Certification & Inspection Association (NRCIA’) member directory at NRCIA.org to find a certified SB 721 inspector in your area Whether you’re responsible for a single building or an entire portfolio, early action will save you from the stress of last-minute compliance headaches
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.
Remember, in football, and in property management, it’s the teams that plan ahead who walk off the field victorious . Don’t wait until the two-minute warning . Schedule your SB 721 inspection today, Get SB 721 Compliant TM, and stay ahead of the game .
*Statistics pulled from Yello
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
3 . Avoid the last-minute rush for repairs . If you wait too long to schedule your inspection, you risk running into a backlog of property owners all trying to meet the SB 721 deadline The longer you delay, the busier restorative contractors will be, making it harder to secure one when you need repairs Getting your inspection done now gives you a head start and ensures better availability for any necessary work
DON’T GET CAUGHT IN THE BLITZ
While the deadline extension might feel like extra time on the clock, remember—the longer you wait, the Just like in football, waiting until the last minute to make your move is a risky play Not all inspectors will offer repairs post-inspection, so it’s important to understand that this is a case-by-case offering. Your best bet is to schedule the inspection, have a clear understanding of your property’s needs, and then decide how to handle any required work based on available re-sources
HERE’S YOUR PLAYBOOK FOR SB 721 COMPLIANCE
Paul Watrous is President of the National Roof Certification & Inspection Association (NRCIA), an association committed to setting the highest standards for property inspections across both roofing and decking industries. With a strong background in investigative work and years of experience leading top inspection professionals, he is dedicated to helping property managers and owners navigate compliance regulations, including SB 721 For more information, go to www NRCIA org
Now that we’re in the fourth quarter of 2024, this is the perfect opportunity to get your inspection game plan in place while others are taking a water break
Abode Communities
213 .225 .2868
All Points Real Estate 619 298 7724
Alliance Investment Corp 858 597 4900
AltaCima Apartment Homes 858 565 8333
American Assets Trust, Inc 858 350 2564
Antelope Ridge (Sentinel Real Estate) 951 672 8181
Arbor Terrace | Westlake Housing 619 293 3612
Arbors at California Oaks Apartment Homes 951 461 3264
Asset Property Management
B
Beard Property Management
. 858 .560 .9363
. 619 .892 .8722
Bob Cota Realty 619 465 9934
Brennan And Associates Inc 619 475 2470
Brentwood Management Co 619 220 8595
Bridge Property Management 801 716 5795
Brycorp, Inc 619 920 7174
Buchanan Property Management Corp 619 269 0276
C
CFI
858 200 4260
Cambridge Management Group, AMO 619 .497 .0771
Campus Village 1, 2 & 3 | 6 Star Properties
619 .583 .3339
Cardinal Group Management
Chase Pacific Property Management and Real Estate Services 858 271 8841
