December 2020 Issue

Rental

Housing EAST BAY RENTAL HOUSING ASSOCIATION | DECEMBER 2020 | $9.95

Don’t Forget About Oakland’s

“Fair Chance” Ordinance MORE ON PAGE 9

Proposition 19 MORE ON PAGE 3

Emotional Support Animals:

What Housing Providers Need To Know MORE ON PAGE 15

Avoid Legal Restrictions

in Your Resident Screening to Protect Yourself in the Industry MORE ON PAGE 13

E a s t B ay R e n ta l H o u s i n g A s s o c i at i o n Volume XIX Number 12 | December 2020 EBRHA OFFICE

3664 Grand Ave., Suite B, Oakland, CA 94610 tel

510.893.9873 |

fax

510.893.2906

www.ebrha.com EBRHA STAFF Derek Barnes | derek.barnes@ebrha.com | 510.318.8305

contents Features & Columns

CHIEF EXECUTIVE OFFICER

DECEMBER 2020

Shani Brown | shani@ebrha.com | 510.893-9873 ex. 103 OFFICE MANAGER Ash Sukumar | communications@ebrha.com | 510.893-9873 ex. 104 COMUNNICATIONS & EVENTS SPECIALIST Danielle Baxter | sales@ebrha.com | 510.214.3632 SALES & MARKETING MANAGER Helen Bowen | reception@ebrha.com | 510-545-9942 MEMBER SPECIALIST

03

PROPOS ITION 19

by ron kingston

EBRHA OFFICERS PRESIDENT Wayne C. Rowland FIRST VICE PRESIDENT Luke Blacklidge SECOND VICE PRESIDENT Irina Gelfenbeyn SECRETARY Brent Kernan EBRHA BOARD OF DIRECTORS Wayne C. Rowland, Luke Blacklidge, Irina Gelfenbeyn, Mahasty Lebastchi, Carmen Madden, Brent Kernan, Jacqueline Jacobs, Chris Moore, Fred Morse, Rick Philips, Joshua Polston, Jack Schwartz, Judy Shaw, Aaron Young

09

D ON’ T F ORG ET ABOUT “FAIR

PUBLISHED BY East Bay Rental Housing Association

CHANCE” ORD INANCE

by brent kernan

PUBLISHER Derek Barnes ADVERTISING Danielle Baxter | 510.214.3632 | sales@ebrha.com

13

AVOID L EG AL RESTRICTIONS IN YOUR RES IDENT Rental Housing (ISSN 1930-2002-Periodicals Postage Paid at Oakland, California. POSTMASTER: Send address changes to RENTAL HOUSING, 3664 Grand Ave., Suite B, Oakland, CA 94610.

Rental Housing is published monthly for $9.95 per month by the East Bay Rental Housing Association (EBRHA), 3664 Grand

S CREENING TO Protect Yourself in the Industry

by Nicole Seidner

Ave., Suite B, Oakland, CA 94612.

Rental Housing is not responsible for the return or loss of submissions or artwork. The magazine does not consider unsolicited articles. The opinions expressed in any signed article in Rental Housing are those of the author and do not necessarily reflect the viewpoint of EBRHA or Rental Housing. This publication is designed to provide accurate and authoritative information in regard to the subject

Events & Directory

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

Published monthly, Rental Housing is distributed to the entire membership of EBRHA. The contents of this magazine may not be reproduced without permission. Publisher disclaims any liability for published articles. Printed by Bay Central Printing Company.

Copyright © 2020 by EBRHA. All rights reserved.

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EMOTIONAL S UPPORT ANIMAL S : What Housing Providers Need to Know

by Yardibreeze

15

24 . ... EV E N TS CA L ENDA R 28 . ... BOA R D OF D IR ECTOR S 29 . ... V E N D OR D IR ECTORY 34 . ... AD IND EX

CONTRIBUTORS Brent Kernan Brent Kernan has represented property owners in court and administrative venues for over 20 years. He is a graduate of U.C. Berkeley and New College of California School of Law. He has taught law and served as a Judge Pro-Tem for the Alameda Superior Court. He writes on many different legal subjects including Bay Area owner/renter law. In addition to his law practice, he is general counsel for Story Rentals, Inc., an Oakland based property management company and a member of EBRHA’s Board of Directors.

Ron Kingston Ron Kingston is the EBRHA state lobbyist and President of the California Political Consulting Group. He has 30 years of lobbying experience and is one of the original writers of the state’s Costa-Hawkins Act. He grew up in South Lake Tahoe and lives in Carmichael with his wife Sherrie, a financial planner. In his spare time, he cycles, skis and takes international scuba diving trips.

Nicole Seidner Cole Seidner is a copywriter at the CIC Blog. She holds a degree in Writing from Savannah College of Art and Design with a focus in creative nonfiction. Her free time is spent taking pictures of her dogs or reading deep dive analysis on movies that she hasn’t seen.

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FEATURE

Proposition by

Ron kingston

On November 3, 2020, Americans not only voted for

the next President of the United States of America, but

also for local government officials, and ballot measures.

Specifically, Californians voted for Proposition 19, which was placed on the ballot by the Legislature. According

to the Secretary of State’s official Election Results of the California General Election, Proposition 19 passed with 51.1% of the vote. The margin between Ayes and Nays

is somewhere around 360,000 votes. Considering the

population of the State of California approximates 39.7

million residents and includes over 22 million registered

voters, this difference is marginally thin. Nonetheless, Proposition 19 was approved as certified on December 11, 2020.

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MODERN HISTORY OF CALIFORNIA’S PROPERTY TAX ASSESSMENT Before we take a scalpel to Proposition 19’s language, we must first introduce to you the clever and the butcher block. So, grab your apron “’cuz” things are “gonna” get messy.

Proposition 13

In 1978, California’s Constitution was amended pursuant to the approval of Proposition 13, which was put on the ballot by petition signatures. Proposition 13, also known as the “Holy Grail of the tax revolt” was developed by Howard Jarvis and was designed to:

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•

Require properties be taxed at no more than 1% of their

full cash value shown on the 1975-1976 assessment rolls and limit annual increases of assessed (taxable) value to the

•

• • • •

inflation rate or 2%, whichever was less;

Permit properties to be reassessed at 1% of their sale price

and reset the limit on annual increases of assessed value upon the transfer of properties;

Prohibit the state legislature from enacting new taxes on the value or sale of properties;

Require a two-thirds vote of the state legislature to increase non-property taxes;

Require local governments to refer special taxes to the ballot and require a two-thirds vote of electors; and

Make the state government responsible for distributing property tax revenue among local governments.

Proposition 58

In 1986, further amendments were made to the State’s

Constitution that broadened the circumstances in which

California reassessed property taxes through Proposition 58, which was a legislatively referred to the ballot. Proposition 58 was an amendment to Proposition 13 and applied to real estate

transfers between spouses, but more importantly between parents and their children. Specifically, it prohibited property tax reassessment if a family’s primary residence, regardless of

its value, was transferred between parents and their children, then limited reassessment on other real property valued at over $1 million dollars.

Proposition 60

In the same year, 1986, voters also approved Proposition 60, which amended Proposition 13 to allow homeowners over the

county it was in, nor did it limit the number the buyer’s number of moves.

The ballot measure had one committee registered in support of

the measure. That committee’s campaign raised $13.22 million dollars; 77% of the amount raised by that campaign was from

the California Association of REALTORS® Issues Mobilization PAC, and the other 23% was from the National Association of REALTORS®. The major opponent to the measure was the California Teachers Association and Assemblyman David Chiu

(author of AB 1482 - a statewide rent control measure and AB

3088 - the legislature’s response to “assist” residential tenants

during the COVID-19 pandemic) stated the measure didn’t, “add housing, and it is going to make it harder for cities and counties to pay for schools, infrastructure and public safety to

the tune of $2 billion per year. We’re in the midst of the most

intense housing crisis our state has ever experienced, and this proposal does nothing to address it.”

Proposition 5 failed on the November 2108 ballot by a fairly wide margin with 59.78% of the vote against the measure.

Proposition 19

In November 2020, California voters saw Proposition 5 on the ballot again, only this time it was dubbed “Proposition 19”, or

the Homeownership for Families and Tax Savings for Seniors.

And this time, the measure was legislatively referred to the

ballot, which again makes further constitutional amendments to Proposition 13: •

age of 55 to transfer the taxable value of their present home to

two years of selling the original home.

Proposition 90

Proposition 13 was amended again in 1988, with the passing of Proposition 90, which allowed qualified homeowners age 55 or older to purchase a replacement home to a new county, but only if the new county agreed to participate

in the reassessment program, pursuant to Proposition 60.

Proposition 5

November 2018’s primary election ballot included Proposition 5, which proposed another amendment to Proposition 13. The amendment would have permitted homebuyers who are either

age 55 years or older, or severely disabled to transfer their the taxable value of their present home to a replacement home, no

matter the value of the replacement home, regardless of the

anywhere within the state and allow tax assessments to

be transferred to a more expensive home with an upward

a replacement home, if the replacement home was of equal or

lesser value, located in the same county, and purchased within

Allows eligible homeowners to transfer their tax assessments

•

•

•

adjustment;

Increase the number of times that persons over 55 years old

or with severe disabilities can transfer their tax assessments from one to three;

Require that inherited homes that are not used as principal

residences, such as second homes or rentals, be reassessed at market value when transferred; and

Allocate additional revenue or net savings resulting from the ballot measure to wildfire agencies and counties.

The California Association of REALTORS® (the recognized sponsor of the ballot proposition) upped the ante this go ‘round

by spending over $45 million dollars supporting the measure, ultimately assuring its passage. Additional organizations supported the measure, which included a variety of firefighting associations, Black and Hispanic Chamber of Commerce, and

senior and disability advocates. Opposition included the Howard

Jarvis Taxpayer Association, Family Business Association, the E B R H A.CO M

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League of Women Voters, and a number of Editorial Boards.

WHAT IS THE DIFFERENCE BETWEEN PROPOSITION 5 AND PROPOSITION 19?

What Changed? Nothing, really… well, except for the language.

You see, back on December 3, 2018, when it was apparent that

Proposition 5 was going to fail, the Legislature met and quickly made one final decision before the 2019-2020 Regular Session would break for the winter. With two-thirds of each house, a

constitutional amendment was approved, and they titled it

the Home Protection of Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters. This constitutional amendment would later become known as Proposition 19.

As the State of California continues to be governed by a progressive legislative body, it has been seeking opportunities to take revenue from the State’s taxpayers through a veil of carefully crafted language turned law by preying on the emotions of the electorate.

Before voters went to the polls on November 3, 2020, they likely

read about Proposition 19 in the Secretary of State’s Official Voter Information Guide. When reading the “argument in favor of Proposition 19”, four talking points are noted and include:

1. Limits property taxes for seniors, wildfire victims, and disabled homeowners;

2. Closes unfair tax loopholes used by East coast investors, celebrities, and wealthy trust fund heirs on vacation homes and rentals;

3. Increased fire protection, emergency response & school funding; and

4. Democrats and Republicans support Proposition 19.

The words used to craft the supporting arguments are very persuasive; so, even if a voter read only the language IN ALL CAPS

at the beginning of each talking point, she is already enticed to vote “Yes”. Why, you may ask? One, because California has been

devastated by wildfires in recent years and growing concern continue to garnish international headlines; and Two, because the average taxpayer does not prefer to hear about wealthy

investors buying up homes in California, they are candy from

the five and dime. This causes a fear that Californian’s housing crisis is the fault of investors snatching up houses. Houses the average California family can barely afford.

WHAT DOES PROPOSITION 19 ACTUALLY DO? Seniors, Wildfire Victims, and Disabled Homeowners Proposition amends provisions in include additional qualified homeowners who may take advantage of special circumstances prohibiting a property tax reassessment. Homeowners who

qualify are those who are the age of 55 or older, severely disabled, or a victim of a wildfire or natural disaster.

Proposition 19 expands Proposition 60

transfers to three

transfers per lifetime in any county and can be utilized when the

purchase price of the replacement property is greater than the purchase price of the original property. In the case of property purchased with a higher value than the original property, the

new taxable value would be equal to that of the taxable value

of the original property plus the difference in value between the

sales price of the original property and the sales price of the replacement property. The new law expands the persons these

transfers are available to by including victims of wildfire or other natural disasters.

Although, the language reads well and seemingly offers more

freedoms for the elderly, the disabled, and victims of natural disasters when seeking replacement homes, two questions remain come to mind. One, for the elderly who do not move into

an assisted living facility and the severely disabled who are on a fixed income, how do they afford to move multiple times and

how would this affect the real estate market, in terms of houses for sale? Two, when a homeowner becomes victim to natural disaster and has lost every tangible item collected over decades

of time (let’s not even discuss the insurance issues), how does that homebuyer afford to make multiple moves when she has to rebuild…start all over?

REAL PROPERTY INHERITANCE TRANSFERS According to the California Association of REALTORS® the median sales price of a single-family home in the state

as of October 2020 was $711,300. It is argued that many

homeowners that utilize the provisions of Proposition 19 should be slim next to none, unless they decide to move due to reasons

associated with health or family reasons. Children that inherit their parent’s property will likely move into their parent property

due to locational needs, family circumstances, job performance

and many other legitimate decisional factors and Proposition 19 should accelerate sale of property. Sale of properties in this E BRHA.COM

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situation will benefit many, including government. Renters

interests to the children or grandchildren to protect the

witness to a shrinking housing supply and increases in rent.

death.

at many levels may be adversely affected. Renters may be

Current law permits parents the ability to transfer the principal residence of unlimited value plus up to $1 million

of adjusted base year value of any non-principal residence

properties to their children without triggering reassessment.

Proposition 19 severely limits these non-reassessment transfers. Effective February 16, 2021 the parent to child

reassessment exclusion will be limited to the principal residence of the parent and will require that the child utilize

the property as their own principal residence. Additionally, even if the child utilizes the residence as their own, there

cap of $1 million on the exclusion. Is it realistic to assume the child will retain ownership of the property? Many would suggest the child will sell the property.

Second, if one or more of the children move into the primary residence as their primary residence following the parent’s death little will change. The probability of two of more children moving into the parent’s residence will be slim! The

probability of one child moving into their parent’s residence if the child already owns and occupies their residence will be slim.

If the children sell the family home, rental properties or commercial properties after the demise of the parents

additional financial planning is not required. Section 101 of the Internal Revenue Code provides that properties that a person owns receives aa stepped up basis following a

(parents) demine thus washing away all capital gains upon death of the parent. On the other hand, if the is given to the children during the parent’s lifetime the adjusted basis of

the parent carries over to them and essentially inherits the

parent capital gains. The ability to receive a step up in basis on properties owned by a parent can save tens of thousands of dollars in capital gains taxes and is often far better than

potentially saving thousands of dollars in property taxes by gifting property at this time.

If the parent owns a vacation home that children will most likely retain when the parent dies, concern with the potential capital gains taxes should not be of concern. It may be worth

taking into considering gifting the property to the children

before February 21, 2021 either as an outright gift or in an

current assessed value from reassessment upon the parent’s

If one is planning on transferring non-principal residence property (rentals) to one’s children or are currently utilizing a qualified personal residence trust (QPRT) with a vesting

date after February 16, 2021 there are financial planning

options that must be immediately explored. The window to make pre-Proposition 19 transfers is limited and prompt attention should be of great importance.

FISCAL EFFECTS Heavy-handed arguments were made in support of Proposition 19 and they were in reference to creating

additional resources for the State’s fire protection and management. These additional resources would come

from the reassessment of property taxes pertaining to homes being passed from parents to their children. The

Legislative Analyst’s Office (LAO) , however, analyzed the

measure and noted concerning information regarding the revenue earned versus the cost of making such a drastic constitutional amendment.

The LAO projects that approximately $65 billion dollars are

raised each year for local governments, through property taxes. The LAO projects that the constitutional amendment will increase the annual revenue, which means that local governments could gain tens of millions of dollars of

property tax revenue annually. Yet, in the same analysis, the

LAO notes that it is likely that counties would probably need to hire new staff and make computer upgrades to carry out the measure, which could increase county costs by tens of millions of dollars.

Admittedly, the LAO also projects that if revenue increases

over the years, the financial gains to local governments

and schools could grow to a few hundred million dollars annually. The question, however, is how fast the growth rate

will increase. Legislators and government officials, alike, have acknowledged the housing crisis; when the average

homebuyer is forced to rent due to the inability to afford the purchase price, how many homes will actually sell?

irrevocable trust.

FUNDING

If you have rental properties and or investment properties

September 15, 2022, and each subsequent September

in excess of 1 million parents should consider placing those assets into a limited liability entity and gifting the fractional

Pursuant to the constitutional amendment, no later than thereafter, revenue received from the additional property taxes will be transferred from the general fund to the E B R H A.CO M

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California Fire Response Fund equal to 75% of the amount

received and calculated by the State’s Director of Finance.

15% of the amount received shall be transferred to the County

Revenue Protection Fund and shall be sued to reimburse eligible local agencies with a negative gain. 75 + 15 = 90; so, if the math

is correct, then only 10% of the additional amount received from property taxes as a result of Proposition 13 would be allocated for schools, State wide!

According to basic math, if there was an additional state revenue of $10 million dollars received and calculated by the Director of

Finance then 10% of $10 million is $1 million dollars. There are 58 California counties; $1 million / 58 counties = $17,241.58. Each

county would receive $17,241.58 for their schools. Now let’s

RENTAL HOUSING MARKET Financial planning, implementation, confusion in language and many other aspects are pale in comparison to the impact on rental housing, notably affordable rental housing.

One of the ever-present issues that will be tested will be if

residential rents will rise, single family rentals will be sold to owner-occupants or revenues will shrink as a result of

Proposition 19. It may be appropriate to closely watch the

practical implementation of the ballot measure. There is a compelling argument that tens of thousands of single-family properties will be sold as a result of Proposition 19.

imagine for a moment how many schools there are in Los Angeles

County. How would $17,241.58 be allocated to each school?

CONSTITUTIONAL CONCERNS With the passing of Proposition 13, over 40 years ago, came the prohibition on the state legislature from enacting new taxes on the value or sale of properties.

While it is known that the legislature did not technically enact a new tax on the value or sale of properties, it did approve language and refer that language to the ballot for voters

to make the decision, the problem is the inference that the legislature used experienced logodaedalions to use the power

of persuasion during a national pandemic deliberately to cause confusion among California voters in hopes of success.

As California continues its progressive march forward, its citizens become guinea pigs for the “Art of Words.”

Just how long will it be before we are all mere puppets on a string?

1

https://electionresults.sos.ca.gov/returns/ballot-measures • 2 https://ballotpedia.org/California_Proposition_13,_Tax_Limitations_Initiative_(1978)

3

https://ballotpedia.org/California_Proposition_58,_Real_Estate_Transfers_Within_Families_(1986) • 4 https://ballotpedia.org/California_Proposition_60,_Property_Tax_Assessments_for_Older_Homeowners_(1986)

5

https://ballotpedia.org/California_Proposition_90,_Assessed_Valuation_of_Replacement_Dwellings_(1988) • 6 https://ballotpedia.org/California_Proposition_5,_Property_Tax_Transfer_Initiative_(2018)

7

https://ballotpedia.org/California_Proposition_19,_Property_Tax_Transfers,_Exemptions,_and_Revenue_for_Wildfire_Agencies_and_Counties_Amendment_(2020)

8

https://elections.cdn.sos.ca.gov/ballot-measures/pdf/aca11.pdf • 9 https://voterguide.sos.ca.gov/propositions/19/arguments-rebuttals.htm • 10 The California Legislature’s Nonpartisan Fiscal and Policy Advisor

11

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https://lao.ca.gov/ballot/2020/Prop19-110320.pdf • 12 https://elections.cdn.sos.ca.gov/ballot-measures/pdf/aca11.pdf

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FEATURE

Don’t Forget About Oakland’s “Fair Chance” Ordinance

by Brent Kernan Back in February of 2020, Oakland became the first city in

Under certain very strict

applicants. However, included in the ordinance was a 6-month

provider may inquire whether

California to ban criminal background checks of rental housing “safe harbor” period before most of its provisions went into

effect. Then Covid hit and just about everything else went off the radar screen for most rental housing providers. You may have forgotten all about this ordinance.

But buried in the ordinance are stiff consequences for non-

compliance, including facing heavy administrative fines or civil lawsuits from applicants and housing advocate organizations.

So there is good reason to revisit the ordinance and become clear on how to comply with its requirements.

Richmond and Berkeley also have fair chance ordinances, the details of which can be found on their websites.

What does the ordinance prohibit?

conditions, a housing

the applicant is a registered

lifetime sex offender (i.e. located within the Megan’s Law online database). To do so, under the

ordinance, a housing provider must first: 1. In the rental application, tell all applicants that

you will be screening the lifetime sex offender database.

2. Inform the applicant in advance that you will be checking the sex offender registry and request written consent to

check or, if the applicant objects, provide the applicant the opportunity to withdraw the rental application before the database is searched.

3. Then, only after determining that the applicant is

qualified to rent the housing, provide a conditional rental agreement that can be rescinded only if the applicant is found to be a lifetime sex offender.

A rental housing provider cannot:

However, Megan’s Law itself prohibits the use of information

1. Inquire about any applicant’s criminal history, require an

protect a person “at risk” or as authorized under any other law.

applicant to authorize the release of criminal history, or

deny housing based on the applicant’s criminal history, if

such information is received in some manner. This means eliminating any question on your application that asks

about the applicant’s criminal past and eliminating any

reference to criminal history on the authorization to do a background check of the applicant.

2. Publish any advertisement or other communication that

any person with a criminal history will not be considered for the rental unit or cannot apply for the unit except as required by State or Federal law.

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contained in the database for housing purposes except to

The term “at risk” is not defined by Megan’s Law, but since

Megan was a child, it probably at least means children. So,

unless you are acting under a legal requirement or attempting to protect a specific “at risk” person, you cannot under any

circumstances use the database to screen tenants. In this area, proceed with caution.

Who does the law apply to?

The law is broad in scope and applies to all rental units in Oakland except: 1. Single-family dwellings where the owner occupies the dwelling as his or her principal residence;

2. A dwelling unit in a residential property that is divided into

a maximum of three units, one of which is occupied by the owner as his or her principal residence;

3. Units where the owner has previously occupied the rental unit as his or her principal residence and has the right to

recover possession for his or her occupancy as a principal residence under a written rental agreement with the current tenants; and

4. Tenant-occupied units where an occupying tenant seeks to E B R H A.CO M

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replace an existing co-tenant, add an additional co-tenant, or sublet the unit, provided that the occupying tenant remains in occupancy.

Notice to All Applicants Each applicant must be given a 3-page “postcard” notice

supplied by the Oakland rent board. This notice is located on

EBRHA’s Forms webpage and Oakland’s Fair Chance Access to Housing Ordinance webpage.

The notice must also be included on any website and at any other location under the housing provider’s control that is

frequently visited by applicants. This means including the notice within your ads on Zillow, Trulia, Craigslist, etc.

You must maintain a record of any criminal history obtained

for any applicant for housing for a period of at least three (3) years. Any information that is legally obtained regarding an applicant’s criminal history should remain confidential.

Who is an applicant?

An “applicant” is a person who seeks information about, visits or applies to rent or lease housing, who applies for a tenant-

based rental assistance program, including, but not limited to, the Section 8 Housing Choice Voucher Program, who seeks

to be added as a household member to an existing lease for

housing or, with respect to any criminal history that occurred

prior to the beginning of the person’s tenancy, who currently rents the unit.

Your right to use other criteria is not affected.

You may still require applicants to disclose all other standard information on their applications, and evaluate them on the

basis of their employment, credit rating, income, rental history and any other relevant criteria. But for rental property in

Oakland, you must adapt your rental procedures to comply with this ordinance or potentially face severe monetary consequences.

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FEATURE

Avoid Legal Restrictions

in Your Resident Screening to

Protect Yourself in the Industry by

Nicole Seidner

The rental housing industry is always changing. Even if current craziness was off the table, there were still rapid movements that made the laws vastly different from one coast to another. In California many things could be a protected class from hair color to clothing choices, while in New York City looking at eviction records could land you in a proper court of law. Something’s got to give, because while keeping up with every mood swing in legislation is a tough job, not keeping up can spell an incredible amount of trouble.

That’s a lot of information you can’t use! So, what information in that report are you actually allowed to use? Keeping up with each and every law is tricky, but it has to be done one way or another.

Keeping Up with Yourself If you prefer to keep your bank statements a little bit higher, you can go at it yourself. Going the self-help route means you will need to check every day for legislative updates and read each and every law currently in discussion. You can join local apartment associations, as they will likely send you information regularly about shifting legislation by sending you resources. This could get time consuming and tedious but may prove to be beneficial as you come to a better understanding of the rental housing landscape in your specific area.

The problem with doing this by yourself is that you cannot skim these bills. This will take annotated reading and reading it more than once. When bills go through their process, they will often be resubmitted after edits, and over time, a bill can change from something about the rental housing industry into a bill about license plates – or the other way around!

Have it Done

Before You Get It

Sounds a bit paradoxical, doesn’t it? When using a consumer reporting agency, it’s important to know, that’s all they are legally obligated to do: give you the information that you asked for.

They may not adjust every report to comply with unique laws or

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ordinances in every city/county across the U.S. Maybe you’re in Cook County, Illinois, where criminal records are limited to three years! That’s not going to stop an agency from sending you criminal activity data from three and a half years ago. If you even see criminal records from over three years ago, it can land you in some serious legal trouble. Resident screening providers aren’t obliged to censor their own work, but you are obliged to know what you’re not allowed to factor into your final rental decision based on local and state law.

That’s what makes it good to know that some consumer reporting agencies will have your back. CIC will soon be helping with this by including our Regulatory Matrix. By inputting the zip code of the property, our Regulatory Matrix will automatically remove any information that you are not legally allowed to use, preventing you from even seeing it. That limits your liability from using illegal information in your decision-making skills

Calling a Lawyer

Regularly

What do you call a bus of lawyers on fire? Not enough lawyers!

In all seriousness, calling a lawyer on the regular for legislative updates does not sound fun. It sounds more like your wallet has a leak. However, this may be a more simple option. It is a lawyer’s

job not only to keep up with all past and recent laws, but to understand every over-complicated word legislation uses. Having a lawyer around is an important part of protecting your hide, as a lawyer can tell you the risks of each action you take. In a legal sense, anyway.

Beyond recently passed legislation, lawyers provide very useful when questions you hadn’t had before suddenly crop up out of nowhere. Your resident has an emotional support monkey? Does that mean you get pet rent? A lawyer can answer fickle questions.

That’s what they are there for.

Everyone has their own method to their work, and method in the madness of the rental housing industry. What matters is simple: what works for you?

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FEATURE

Emotional Support Animals: What Housing Providers Need to Know by YardiBreeze

Ever hear the one about the emotional support peacock that wasn’t allowed on a plane? If it sounds like a setup to a bad joke, it’s actually a real story that made national news.

You’ve probably heard of emotional support animals (ESAs), but you might not know that they aren’t just dogs and cats.

They can be ferrets, fish, pigs, peacocks — almost anything a qualifying owner wants.

So, what are they really? Who qualifies for one, and what are the owner’s rights? The answers to these questions are important.

If the animal is why you turn away a rental applicant, you could be charged with housing discrimination. Here’s what housing providers need to know about emotional support animals.

What is an emotional support animal?

Emotional support animals exist primarily for the comfort of the owner. They don’t need to possess special traits or perform work. They simply make their human feel better. Many of these animals are trained to perform certain tasks, but again, it’s not required.

Consider this: 20% of renters

have an emotional support animal.

That’s one in five applicants!

It is unclear if this figure will significantly increase due to stress related to COVID-19. However, the extended length of the pandemic could mean more people turn to ESAs, and property managers would be wise to be aware of this trend and prepare accordingly. We don’t entirely know how the pandemic will affect long-term mental health, but property managers can help by embracing ESAs.

Who qualifies?

It’s easy to define an emotional support animal, but it’s harder to explain who qualifies for one.

People with diagnosed disorders or disabilities may qualify for a support animal. These disorders include learning disabilities, anxiety, depression, intellectual disabilities, attention deficit disorder and motor skills disorders.

Don’t let the “peacock on a plane” story fool you. Emotional support animals perform critical, even life-saving services.

How does someone get an ESA? Only a licensed mental health professional can get someone an emotional support animal. A therapist, psychiatrist or psychologist needs to write an official letter of permission.

Patients are prescribed support animals as part of their treatment plan. For instance, a support animal that is prescribed to someone with depression must be part of that person’s treatment plan for depression. A patient does not necessarily qualify for a support pet just because they have depression. A health professional will make that call.

What are the tenant’s rights?

It’s good to ask questions about emotional support animals and the rights of the people who own them. As a housing provider, you must allow residents to bring their ESAs into their unit, even if you have a no-pet policy.

Here are a few more important facts about renting to tenants with support animals: •

It is illegal to charge a pet deposit fee for the animal, but property damage may be charged through a standard security deposit.

•

Dog breed restrictions that apply to other tenants do not apply to those with support animals.

•

Landlords who deny an application due to the presence of a support animal can be sued for housing discrimination.

Owners must still clean up after support pets, provide adequate care, etc.

•

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•

Landlords may not ask tenants about specific disabilities or disorders. You are allowed to see the healthcare professional’s letter, but that’s about it as far as the law is concerned.

Can a support animal ever be denied?

Wild, exotic or disease-carrying animals do not qualify under emotional support guidelines. Housing providers can deny emotional support animals if there is good reason to believe the animal poses a threat to the general public.

Dog breeds like Rottweilers and Pit Bulls are sometimes restricted in pet policies. However, these restrictions do not apply to emotional support dogs. Therefore, virtually all domesticated cat and dog breeds qualify.

Wolves and raccoons, which are not domesticated species, are considered dangerous and do not count as support pets.

Faking ESA certification is a crime Some housing providers worry they will fall victim to fake letters of certification. Unfortunately, this feeds into the idea that the “emotional support” title is just a way to get around restrictive rules.

This is tricky territory, because the law is very clear on this subject. Housing providers may not ask specific questions about a tenant’s disability or disorder. This can make it hard to spot a fake.

Some state lawmakers, including those in Montana and Florida, are trying to crack down on fake service animals. We encourage you to familiarize yourself with the laws around this issue Always ask to see a health professional’s official letter. Once it is presented, you can research the health professional to make sure the letter is legitimate.

Do not express doubt to the applicant. Assume they are honest unless you can prove otherwise.

Other tenants may get jealous Your other tenants might not think it’s fair that one renter gets a pet while others don’t. However, it’s not your fault if someone is upset about the law. Kindly explain the law to them as best you can, but there’s no need to give in to any demands or change your pet policies.

ESAs are not service animals About 7% of renters have a service animal. Some people think emotional support animals are the same as service animals.

They’re not, and the distinction matters for legal purposes.

These animals are dogs (as opposed to ESAs, which can be any pet), and they’re trained to perform work-related tasks that disabled individuals are unable to do themselves.

•

Opening doors

•

Barking when the phone rings

•

Detecting a seizure before it happens

•

Guiding those with visual impairments

•

Performing other basic tasks

Service animals can go virtually anywhere with their human, without restriction. Of course, it is illegal to disguise an emotional support animal as a service animal.

Is it better to just allow pets?

As of 2020, 76% of property managers allow pets at their properties. However, 92% of pro-pet properties retain restrictions on pets including weight, size and the type of animal allowed.

Such restrictions exist to prevent property damage, but they don’t always work out the way property managers think. For instance, many property managers and owners think big dogs are more destructive than small dogs. So, they apply size and weight restrictions or only allow cats. In fact, small dogs are known to be more anxious than big dogs. This results in noisy barking/whining, scratched-up flooring and walls and other “accidents” that can damage the property.

Another Case for Allowing Pets at Your Properties If you simply allow pets, you no longer have to worry about collecting ESA paperwork, verifying it and dealing with complaints from residents who don’t think you’re being fair to them (even if you are). You can also charge pet deposits and additional rent per pet. Plus, you may be able to charge more for rent if you provide pet amenities such as wash stations, play areas, doggy daycare, etc.

Pro tip: Yardi Breeze makes it easy to update your pet policy in your lease.

You can also use the platform to set up and manage pet deposits, damages, pet-related maintenance, etc.

Be Transparent In some cases, it’s impossible to allow pets at your property, or the decision may be out of your hands. Be transparent with your residents about why you can’t allow pets. If you can’t allow them for insurance reasons, for instance, let your community know. When you provide specific reasons for your actions, you build trust with your renters (even if they don’t like the outcome).

Please note that this article does not constitute or replace legal advice. We hope this information is helpful, and we encourage you to do more research on the subject.

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message from the EBRHA Board president, Wayne Rowland

The year 2020 has been a challenging one for individuals and businesses alike. Very few industries have been impacted more by the events of 2020 than the rental housing industry in California. We have had a

record volume of legislative activity aimed at housing. Some were good, and some others‌not as much.

But the biggest impact on all aspects of the rental housing industry this year has been the global health crisis, caused by the highly contagious corona virus. Our plans were thrown into uncertainty and upset by the COVID-19 pandemic.

We, as an association, adjusted quickly to the changes, establishing safety and precautionary measures to

continue offering our services to members. Our in-person meetings transitioned into virtual meetings, and many of our business functions were carried out remotely. We recognize the importance of physical distancing

and wearing masks in public, and we encourage each of you to take these precautions as you go about your daily activities as well.

Early on, in response to the pandemic in California, county health departments issued shelter-in-place orders, imposing social distancing to keep people from spreading the virus. While these were very important public

health measures, these orders also had the effect of shutting down schools, workplaces, and the economy, leaving renters and housing providers scrambling to pay their bills.

To offset the loss of income to renters caused by the shelter-in-place orders, Governor Newsom issued a

Statewide Eviction Moratorium prohibiting all evictions for nonpayment of rent. This has left many rental owners, especially small property owners, struggling to make ends meet.

Why? Because a certain percentage of renters think an eviction moratorium is a rent payment moratorium.

Some renters stopped paying rent even though they weren’t affected by the virus or the shelter-in-place orders.

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They’ve been comfortably working from home with no commute or rent related expenses. Unfortunately, the moratorium allows them to do this.

Thankfully, overall, most renters have been paying their rent. The statewide moratorium has dragged on for

many months and its expiration date has become an issue as it keeps getting extended. It’s currently set to expire on January 1, 2021, but we’ll believe it when we see it.

The impact of COVID-19 has been a big one, but there have been many other events happening in 2020 as well.

•

• •

• • • •

During the year, efforts to pass TOPA legislation in the cities of Richmond, Berkeley, and Oakland were

either cancelled or tabled indefinitely by the respective City Councils due to organized efforts by EBRHA and other housing groups.

Several bills proposed by state legislators that would have been harmful to rental property owners were put to rest through relentless opposition measures by EBRHA and CalRHA.

Efforts by CalRHA to get legislators to establish rent relief funds for tenants (instead of relying 100% on

eviction moratoriums) met with success in several cities. Efforts continue toward establishing a statewide program.

Statewide rent control was defeated through combined industry efforts and partnerships with social justice organizations.

We prevailed in appellate court against the City of Oakland in the garbage lawsuit, which now proceeds to the California Supreme Court.

We were successful in convincing the Zacks law firm to represent us in the garbage lawsuit (Zolly v. City of Oakland) at the Supreme Court, pro bono.

An organized effort by CalRHA to enhance the image of housing providers in the minds of the public has been freshly initiated through public relations firm, Elevate Public Affairs.

Internally, EBRHA has risen to the challenge of refreshing the organization through the creation of an updated

strategic plan. During the year, we continued to develop our team of staff members and made several strategic hires of very capable individuals.

Most importantly, we hired an outstanding new CEO, Derek Barnes. Derek has a wealth of experience in successfully working with for-profit and non-profit organizations. Though he has only recently started with

EBRHA, he has already hit the ground running and has immersed himself in the operational affairs of the association. He has been making favorable changes and has already made a difference in the association.

In the new year, let’s continue to work together as a community to achieve positive outcomes for the rental

housing industry. In the year ahead, we have planned to introduce a whole suite of new, value-added EBRHA services to improve your overall member experience. I look forward to sharing new updates and opportunities with you all in 2021. On behalf of the staff and Board of Directors at EBRHA, I wish you a joyous and safe holiday season.

Warm Regards,

EBRHA Board President

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Can you afford an EBRHA Membership in 2021?

1.

2.

3.

4.

Do you find it challenging to constantly navigate legislative changes?

Are any of your renters not paying rent/paying reduced rent right now?

Do you have unit vacancies you need to fill?

Do you have a long-term tenant who has been reliable through the pandemic?

5. Will you need community support in protecting and defending your business interests?

6. Are you concerned what the health of your business will be 1 month from now, or perhaps 6 months from now?”

Answered

“ yes” to at least one of the questions above?

Then a 2021 EBHRA Membership is an opportunity you can’t afford to let pass by. That’s because: 1. EBRHA helps you navigate complex local/state ordinances, and extends legal compliance/ risk mitigation support, always striving to ensure you’re on the right path.

2. EBRHA stays on top of rent relief resources and policymakers, to help your business stay afloat and make your side of the story count.

3. EBRHA educates members on rental housing best practices, be it during COVID-19 showings or beyond.

4. EBRHA shows you how you can continue to keep long-term residents happy and safe through these tough times.

5. EBRHA bridges the gap between housing providers and policy makers, diligently advocating as a community for property owner rights.

6. EBRHA offers monthly installments in 2021, so you can take on the repercussions of the pandemic one step at a time.

EBRHA is right by your side.

Renew your membership online at EBRHA.com Or contact Danielle Baxter at sales@ebrha.com.

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925.828.5800 E B R H A.CO M

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Diversity Leadership Program courtesy: NAA The National Apartment Association has announced that the 2021 Diversity Leadership Program Call for Applications is now open for participant and mentor applications. NAA will be accepting applications from November 9 through January 1, 2021.

NAA’s Diversity Leadership Program

To apply as a participant or

diverse backgrounds an opportunity

Leadership Program, please

housing industry. Participants who

application form or the mentor

will gain leadership experience

available at https://www.naahq.

part of the yearlong program. The

inclusion/diversity-leadership-

(DLP) provides up to 15 members of

mentor for the 2021 NAA Diversity

to develop as a leader in the rental

complete the online participant

are considered junior to mid-level

application form by January 1, 2021

through mentoring, and training as

org/naas-commitment-diversity-

program is a crucial aspect of the

program.

NAA’s leadership diversification strategy intended to identify,

mentor and engage members from

underrepresented minority groups.

Upon completion of the Diversity Leadership Program, participants will be able to: •

•

•

•

Gain understanding and comfort of your cultural background.

Learn how unconscious bias’

impact your view of others and interactions with them.

Develop insight on how you can contribute to D&I efforts at your company.

Advance your leadership and

communication skills to position yourself for success in a diverse

•

•

world.

Learn how to facilitate healthy

conversations around diversity in the workplace.

Develop a personalized career growth plan to achieve a

leadership role within the rental housing industry

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Seismic Retrofit

SGDM is specialized in seismic retrofit work and has completed 180+ projects in the Bay Area. We provide both engineering and construction services, which allows projects to be completed efficiently and effectively.

Using garages and storage rooms in buildings, we are able to convert unused spaces into accessory dwelling units for more living space available to rent.

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We are a design-build contractor that uses a streamlined method for engineering and construction to save time and money on projects by increasing work and communication efficiency.

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CALENDAR of upcoming WEBINARS To ensure the safety and health of our members, we have been diligently working towards shifting our educational and networking events to virtual platforms! We have had great participation in EBRHA’s December online classes. Be sure to follow our email updates and keep up with our event calendar.

www.ebrha.com/events 1.5

Saving money through preventative maintenance and planning for the year Date and Time: Tuesday, January 5, 2 –3:30 p.m.

Presenter: Scott Isacksen

1.12

Small Property Owner Roundtable, EBRHA Board President, Wayne Rowland Date and Time: Tuesday, January 12, 3 -4:30 p.m.

1.15

member meeting Date and Time: Friday, December 15, 10–12 p.m.

Presenter: Serom Sanftner - East Bay Innovations & Jennifer Lucky of Alameda County Healthcare Services Agency, Attorney Q & A

1.19

Property Management Tips During COVID Date and Time: Tuesday, January 19, 3-4:30 p.m.

Presenter: Dan Lieberman

1.28

RPM 102 Date and Time: Thursday, January 28, 2-3:30 p.m.

Presenter: Brent Kernan

3664 GRAND AVENUE • SUITE B | OAKLAND, CA 94610 TO REGISTER, GO TO EBRHA.COM/EVENTS OR CALL 510-893-9873 E B R H A.CO M

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6

ACTIVATE YOUR VOICE 1. EBRHA On Your Side Have you experienced a situation or ruling that you feel infringed on due process as a property owner?

We constantly hear about outcomes that are just plain wrong. EBRHA collects member experiences in order to make changes to a broken and biased system. Tell us your story today at www. ebrha.com

2. Grand Jury Complaints This investigative body looks at complaints received from citizens alleging mistreatment by officials, suspicion of misconduct, or government inefficiencies. To file a complaint, send an email to grandjury@acgov.org.

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3. Attorney Complaints The Office of Chief Trial Counsel reviews complaints of unethical conduct by attorneys licensed to practice in California (this includes Rent Board hearing officers and tenant attorneys engaged in suspicious misconduct).

To file a complaint, go to www.calbar.ca.gov, find the “Quick Links” on the left side, and then click on “Attorney Complaints” and complete the application.

EBRHA IS HERE FOR YOU. KEEP US INFORMED ON ANY COMPLAINTS FILED WITH THESE AGENCIES.

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Thank you, EBRHA Suppliers, for your tremendous support through this challenging year!

We are diligently working to ensure that your business and services are highlighted in 2021 for all that you have done for our membership.

COMPLETE ELECTRIC Exit signs and Emergency back-up fixtures, Emergency calls, Expert trouble-shooting, Main service upgrades, Fuse boxes changed to breakers, GFCI plugs installed, Plugs grounded, Circuits added, Security lighting, Ambiance lighting, Garden/pathway lighting, Home and office remodels.

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2021 will hold NEW member benefits for you, our valued suppliers! Benefits include: •

Quarterly promotions

•

NEW online Supplier Directory with additional features

•

Supplier digests promoting your member discounts/offers,

•

A special section of our magazine dedicated to supplier relations and updates

•

Sponsorship opportunities to enhance your connection with our members

•

Exclusive digital advertising packages

•

And MORE!

We can’t wait to introduce our exciting new services and benefits in 2021. We wish you a wonderful and safe holiday season!

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EBRHA Board of Directors The Nominating Committee at EBRHA is happy to introduce the four candidates who were elected to the association’s Board of Directors, on Saturday, November 21, 2020. The Board Members include new candidate Chris Cohn, and returning candidates Fred Morse, Wayne Rowland, and Jack Schwartz. Learn more below.

Chris Cohn

Chris Cohn, first-time EBRHA Board nominee, is a long-term Oakland resident who graduated from UC Berkeley with a bachelor’s degree in Psychology and master’s degree in Psychiatric Social Work. She became a residential real estate agent in 1975 and worked in the field until her retirement in 2018. Chris’ experience as a housing provider started in 1975 when she bought a duplex in North Oakland, living in half and renting half. She now manages four residential properties in Oakland and serves as a non-managing partner in a 30-unit property. Chris seeks to work toward reasonable compromises between the needs of both owners and tenants.

Fred Morse

Fred Morse has been a part of the EBRHA Board of Directors for more than 30 years. He loves being an Oakland-based housing provider and has been a rental property owner for 53 years. He is currently a member of the EBRHA Legal Action Committee which has a case going to the California Supreme Court regarding Oakland’s garbage issue. Fred also serves as a member of the Political Action Committee and check signer for the association.

Fred has been a regular participant in EBRHA events and enjoys networking with fellow housing providers. Fred aims to help organize a fundraiser for the Legal Action Committee.

Wayne Rowland

EBRHA Board President, Wayne Rowland, has been a longstanding member of the association, and has served on the Board for nearly 20 years. Wayne has played a significant role in many of EBRHA’s political campaigns and has taken the lead on the association’s legal actions. He has actively participated in public debates on housing issues, especially during these times of biasedagainst-rental-owners legislators. Wayne led the statewide rental housing associations that left CAA to form CalRHA and became its founding President. Wayne looks forward to continuing his efforts in actively participating in advocating for the interests of rental property owners, counter-balancing the built-in narrative in favor of tenants, pushing back against government overreach, educating property owners of their rights and responsibilities as rental owners, and helping rental owners avoid the pitfalls of navigating local and state housing regulation.

Jack Schwartz

A small rental housing owner and semi-retired real estate attorney, Jack Schwartz has been on the EBRHA Board since 2010. He has served multiple times as Vice President, Secretary, Treasurer and State Legislative Chair.Jack has been, and continues to be, an EBRHA representative on the California Rental Housing Association (CalRHA) Board of Directors and also serves as the CalRHA Legislative Chair. He is running for another term on the EBRHA Board to continue the association’s legislative efforts, particularly at the State level. Jack has been an instrumental part of CalRHA and EBRHA, in representing the voice of small rental housing owners and actively engaging in the long overdue process of countering the negative perception of rental housing owners.

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Oakland RENT ADJUSTMENT PROGRAM FEE

Annual fees are $68 per unit and are due March 1. However, this fee has just been increased to $101. Owners are currently allowed to pass through $50.50 to tenants.

BUSINESS TAXES & REGISTRATION

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

www.ltss.oaklandnet.com LANDLORD PETITION FOR EXEMPTIONS

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

ANNUAL ALLOWABLE RENT INCREASE

2020-21 (2.7%) A CPI increase of 2.7% becomes effective on July 1, 2020. Tenants may only receive one increase in any 12-month period, and the rent increase cannot take effect earlier than the tenant’s anniversary date.

In addition, California law requires that for tenancies receiving greater than a 10% increase, a 60-day notice is required; if the increase is 10% or less, a 30-day notice is required.

Owners can only impose “banked” rent increases equal to three times the current annual allowable rent increase rate. See schedule at right.

PERIOD

AMOUNT (%)

JULY 1 ‘20 - JUNE 30 ‘21. . . . . . . . . 2.7 JULY 1 ‘19 - JUNE 30 ‘20. . . . . . . . . 3.5 JULY 1 ‘18 - JUNE 30 ‘19. . . . . . . . . 3.4 JULY 1 ‘17 - JUNE 30 ‘18. . . . . . . . . 2.3 JULY 1 ‘16 - JUNE 30 ‘17. . . . . . . . . 2.0 JULY 1 ‘15 - JUNE 30 ‘16. . . . . . . . . 1.7 JULY 1 ‘14 - JUNE 30 ‘15. . . . . . . . . 1.9 JULY 1 ‘13 - JUNE 30 ‘14. . . . . . . . . 2.1 JULY 1 ‘12 - JUNE 30 ‘13. . . . . . . . . 3.0 JULY 1 ‘11 - JUNE 30 ‘12. . . . . . . . . 2.0 JULY 1 ‘10 - JUNE 30 ‘11. . . . . . . . . 2.7 JULY 1 ‘09 - JUNE 30 ‘10. . . . . . . . . 0.7 JULY 1 ‘08 - JUNE 30 ‘09. . . . . . . . . 3.2 JULY 1 ‘07 - JUNE 30 ‘08. . . . . . . . . 3.3 Visit www.ebrha.com/members to see previous adjustments.

CAPITAL IMPROVEMENTS INCREASE

FOR FURTHER INFORMATION CONTACT:

FORMULA

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

(70 % of Improvement Costs ÷ Number of Units) Useful Life of Improvement* *REFER TO ORDINANCE FOR NOTICING, QUALIFICATIONS AND AMORTIZATION PERIODS. SEE USEFUL LIFE CHART ON CITY OF OAKLAND WEBSITE.

Berkeley RENT STABILIZATION BOARD FEES

Annual fees are $270 per unit and are due July 1.

RATES OF ANNUAL PAYMENT OF SECURITY DEPOSIT INTEREST PERIOD AMOUNT BERKELEY RATES

DEC. 2018. . . . . . . . . . . . . . . . . . . 0.1% DEC. 2016. . . . . . . . . . . . . . . . . . . 0.1% DEC. 2015. . . . . . . . . . . . . . . . . . . 0.1% DEC. 2014. . . . . . . . . . . . . . . . . . . 0.1% DEC. 2013. . . . . . . . . . . . . . . . . . . 0.1% DEC. 2012. . . . . . . . . . . . . . . . . . . 0.2% DEC. 2011. . . . . . . . . . . . . . . . . . . 0.3% FEDERAL RESERVE RATES

DEC. 2014. . . . . . . . . . . . . . . . . . . . N/A DEC. 2013. . . . . . . . . . . . . . . . . . . 0.3% DEC. 2012. . . . . . . . . . . . . . . . . . . 0.5% DEC. 2011. . . . . 0.4% (CORRECTED 11/3/2011) DEC. 2010. . . . . . . . . . . . . . . . . . . 0.4% DEC. 2009. . . . . . . . . . . . . . . . . . . 1.1% DEC. 2008. . . . . . . . . . . . . . . . . . . 3.4% E BRHA.COM

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ANNUAL ALLOWABLE RENT INCREASE

2020 (2.1%) PERIOD AMOUNT

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

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

2020. . . . . . . . . . . . . . . . . . . . . . . . 2.1% 2019. . . . . . . . . . . . . . . . . . . . . . . . 2.5% 2018. . . . . . . . . . . . . . . . . . . . . . . . 2.3% 2017. . . . . . . . . . . . . . . . . . . . . . . . 1.8% 2016. . . . . . . . . . . . . . . . . . . . . . . . 1.5% 2015. . . . . . . . . . . . . . . . . . . . . . . . 2.0% 2014. . . . . . . . . . . . . . . . . . . . . . . . 1.7% 2013. . . . . . . . . . . . . . . . . . . . . . . . 1.7% 2012. . . . . . . . . . . . . . . . . . . . . . . . 1.6% 2011. . . . . . . . . . . . . . . . . . . . . . . . 0.7% 2010. . . . . . . . . . . . . . . . . . . . . . . . 0.1% 2009. . . . . . . . . . . . . . . . . . . . . . . . 2.7% 2008. . . . . . . . . . . . . . . . . . . . . . . . 2.2% 2007. . . . . . . . . . . . . . . . . . . . . . . . 2.6% 2006. . . . . . . . . . . . . . . . . . . . . . . . 0.7% 2005. . . . . . . . . . . . . . . . . . . . . . . . 0.9% (1% + $3 IF TENANCY CREATED AFTER JAN. 1999) *ADDITIONAL ADJUSTMENTS ARE ALLOWED IF AN OWNER PAID FOR ELECTRICITY OR HEAT. FOR FURTHER INFORMATION CONTACT:

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

vendor directory — CONTACTS, PRODUCTS & SERVICES ACCOUNTING & TAX The Lee Accountancy Group, Inc. Jong H. Lee, CPA | 510-836-7400 jhlee@theleeaccountancy.com Martin Friedrich, CPA 510-895-8310 www.besttaxcpa.com APPLIANCE SALES & PARTS Appliance Parts Distributor Mike De Fazio | 510-357-8200 www.apdappliance.com ASSOCIATIONS Bridges Association of Realtors Davina Lara | 510-836-3000 oaklandberkeleyaor.com Oakland Chamber of Commerce Barbara Leslie | 510-874-4808 www.oaklandchamber.com ATTORNEYS — EVICTIONS/ PROPERTY OWNER DEFENSE Bornstein Law Daniel Bornstein | 510-836-0110, x1007 www.bornsteinandbornstein.com Burnham Brown Charles Alfonzo | 510-835-6825 www.burnhambrown.com The Law Offices of Alan J. Horwitz Alan J. Horwitz | 510-839-2074 wwwalanhorwitzlaw.com Law Offices of Brent Kernan Brent Kernan | 510-712-2900 bkernan@aol.com The Shepherd Law Group Michael Shepherd | 510-531-0129 www.theshepherdlawgroup.com Zacks, Freedman & Patterson, PC Scott Freedman | 415-956-8100 www.zfplaw.com ATTORNEYS — LAND USE/CONDO CONVERSION Beckman, Feller & Chang P.C. Fred Feller | 510-548-7474 www.bfc-legal.com Law Offices of Bill Ford Bill Ford | 415-306-7840 www.billfordlaw.com Law Offices of John Gutierrez John Gutierrez | 510-647-0600, x2 www.jgutierrezlaw.com Richards Law John Richards | 925-231-8104 www.richards-legal.com Zacks, Freedman & Patterson, PC Lisa Padilla | 415-956-8100 www.zfplaw.com ATTORNEYS — REAL ESTATE/CORP. Burnham Brown Charles Alfonzo | 510-835-6825 www.burnhambrown.com

Ericksen Arbuthnot Jason Mauck | 510-832-7770 www.ericksenarbuthnot.com Fried & Williams LLP Clifford Fried | 510-625-0100 www.friedwilliams.com Jack Schwartz, Attorney at Law Jack Schwartz | 650-863-5823 jwsjr1220@comcast.net Law Offices of Bill Ford Bill Ford | 415-306-7840 www.billfordlaw.com Law Offices of John Gutierrez John Gutierrez | 510-647-0600, x2 www.jgutierrezlaw.com Richards Law John Richards | 925-231-8104 www.richards-legal.com Zacks, Freedman & Patterson, PC Lisa Padilla | 415-956-8100 www.zfplaw.com BANKING/LENDING Chase Commercial Josh Milnes | 510-891-4545 josh.milnes@chase.com Chase Commercial Ted Levenson | 415-945-5430 ted.levenson@chase.com First Foundation Bank Michelle Li | 510-250-8133 www.ff-inc.com BATHROOM/KITCHEN REMODELING & BUILDING SUPPLIES APT Maintenance, Inc. Keith Berry | 510-747-9713 www.aptmaintenanceinc.com KMK Contracting & Property Services Kevin Knobles | 925-292-8667 www.kmkcontracting.com CONSTRUCTION APT Maintenance, Inc. Keith Berry | 510-747-9713 www.aptmaintenanceinc.com D.W. Hamilton Construction, Inc. D.W. Hamilton | 510-919-0046 www.dwhamiltonconstruction.com KMK Contracting & Property Services Kevin Knobles | 925-292-8667 www.kmkcontracting.com SGDM, LLC. Henry Mak | 415-688-9869 hmak@sgdmllc.com Simpson Gumpertz & Heger SKenneth T. Tam | 415-343-3048 www.sgh.com W. Charles Perry & Associates W. Charles Perry | 650-638-9546 www.wcharlesperry.com

CONTRACTORS/RESTORATION P.W. Stephens Environmental Steve MacFarlane | 510-651-9506 www.pwsei.com SGDM, LLC. Henry Mak | 415-688-9869 hmak@sgdmllc.com DOORS & GATES R & S Overhead Garage Door Sean Boatright | 510-483-9700, x14 www.rsdoors.com ELECTRICIANS Complete Electric Clay Bartley | 510-325-7462 www.complete-electric.org Thomas Electric Co. (TEC) Thomas Hurtubise | 510-814-9387 www.tecelectric.net FINANCIAL PLANNING Enhance Wealth Advisors Terry Allen, CFP®, AWMA SM 925-932-8609 info@enhancewa.com FLOOR COVERINGS Bay Area Contract Carpets, Inc. Ken Scott | 510-613-0300 www.bayareacontractcarpets.com GOVERNMENT AGENCIES Oakland Housing Authority Leased Housing | 510-874-1500 www.oakha.org HANDYMAN SERVICES APT Maintenance, Inc. Keith Berry | 510-747-9713 www.aptmaintenanceinc.com KMK Contracting & Property Services Kevin Knobles | 925-292-8667 www.kmkcontracting.com Start to Finish Christopher Bailey | 510-727-9128 cpmbailey@sbcglobal.net HAULING SERVICES KMK Contracting & Property Services Kevin Knobles | 925-292-8667 www.kmkcontracting.com HEATING & AIR CONDITIONING Albert Nahman Plumbing & Heating Albert Nahman | 510-843-6904 www.albertnahmanplumbing.com

West Coast Premier Construction, Inc. Homy Sikaroudi | 510-271-0950 www.wcpc-inc.com

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vendor directory HUMAN RESOURCES MANAGEMENT

PROPERTY MAINTENANCE

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

A-One Construction Eva Morrissey | 510-347-5400 www.a-oneconstruction.com

INSPECTIONS

ALP Construction & Painting Adrian Perez | 925-567-4777 www.alpconstructionca.com

ECS Group, Inc. Shawn Rau | 707-732-3370 shawn@ecsgroup.net SpottCheck Consulting Susan Spott | 510-816-1452 www.spottcheck.com INSURANCE Bulloch Insurance Brokers, Inc. Curt Bulloch | 925-640-0485 www.curtbulloch.com Commercial Coverage Insurance Paul Tradelius | 415-436-9800 www.comcov.com Gordon Insurance Pamela Hutchins | 877-877-7755 www.gordoninsurance.com Jain L. Williams - State Farm Insurance Jain L. Williams | 510-530-3222 www.jainwilliams.com Kelly Lux — State Farm Insurance Kelly Lux | 510-521-1222 Kelly.lux.gjcg@statefarm.com Pacific Diversified Insurance Richard Callaway | 925-788-5558 rcallaway@pdins.com INTERNET & PHONE SERVICE PROVIDERS Common Networks Allan Ng | 510-480-6732 www.commonnetworks.com

APT Maintenance, Inc. Keith Berry | 510-747-9713 www.aptmaintenanceinc.com KMK Contracting & Property Services Kevin Knobles | 925-292-8667 www.kmkcontracting.com PROPERTY MANAGEMENT Bay Property Group Daniel Bornstein | 510-836-0110 www.baypropertygroup.com Beacon Properties Carlon Tanner | 510-428-1864 www.beaconprop.com Cedar Properties Jonathan Weldon | 510-834-0782 www.cedarproperties.com 4Crane Management Kit Crane | 510-918-2306 www.cranemanagment.net The Enterprise Company William McLetchie | 510-444-0876 www.theenterpriseco.com Kasa Properties Tania Kapoor Mirchandani | 415-377-9452 tania@kasaproperties.com Lapham Company Jon M. Shahoian | 510-594-7600 www.laphamcompany.com

INTERCOMS & ACCESS CONTROLS

Mynd Stacy Winship | 510-455-2667 www.mynd.co

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

PTLA Real Estate Group Page Roberson | 925-937-7400 www.ptlareg.com

LEAD, MOLD & PEST MANAGEMENT

Seville Real Estate and Management Maya Clark | 510-244-1289 www.sevillepropertymanagment.com

Alameda County Healthy Homes Dept.

Larry Brooks | 510-567-8282 larry.brooks@acgov.org or aclppp.org LITIGATION SUPPORT SERVICES SpottCheck Consulting Susan Spott | 510-816-1452 www.spottcheck.com

Shaw Properties Judy Shaw | 510-665-4350 www.shawprop.com Vision Property Management Frank Thomas | 510-926-4104 www.vpmpropertymanagement.com

PAINTERS

Western Management Property, Inc Leslie Penglis | 510-451-7194 www.westernmp.com

ALP Construction & Painting Adrian Perez | 925-567-4777 www.alpconstructionca.com

Woodminster Property Management Nicholas Drobocky | 510-336-0202 www.woodminstermanagement.com

PLUMBING/WATER HEATERS

REAL ESTATE BROKERS & AGENTS

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

ARA Pacific Mike Colhoun | 415-273-2177 www.arausa.com CBRE Keith Manson | 510-874-1919 www.cbre.com

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Coldwell Banker Commercial Henry Ohlmeyer | 925-831-3390 www.coldwellbanker.com Edrington and Associates Steven Edrington | 510-749-4880 steve@edringtonandassociates.com Lapham Company Tsegab Assefa | 510-594-0643 www.laphamcompany.com Lee & Associates Commercial Real Estate Michael Lopus | 925-239-1424 mlopus@lee-associates.com Litton/Fuller Group Luke Blacklidge | 510-548-4801, x130 www.littonfullergroup.com Marcus & Millichap Eli Davidson | 510-379-1280 eli.davidson@marcusmillichap.com Marcus & Millichap David Wolfe | 510-379-1200 www.marcusmillichap.com NAI Northern California - VP John Caronna | (415) 531-5225 jcaronna@nainorcal.com NAI Northern California Grant Chappell | 510-336-4721 www.nainorcal.com NAI Northern California Timothy Norkol | 510-336-4724 tnorkol@nainorcal.com The Pinza Group Steven Pinza | 510-725-4775 www.pinzagroup.co LEAD, MOLD & PEST MANAGEMENT Alameda County Healthy Homes Dept.

Larry Brooks | 510-567-8282 larry.brooks@acgov.org or aclppp.org LITIGATION SUPPORT SERVICES SpottCheck Consulting Susan Spott | 510-816-1452 www.spottcheck.com PAINTERS ALP Construction & Painting Adrian Perez | 925-567-4777 www.alpconstructionca.com PLUMBING/WATER HEATERS Albert Nahman Plumbing & Heating Albert Nahman | 510-843-6904 www.albertnahmanplumbing.com PROPERTY MAINTENANCE A-One Construction Eva Morrissey | 510-347-5400 www.a-oneconstruction.com ALP Construction & Painting Adrian Perez | 925-567-4777 www.alpconstructionca.com APT Maintenance, Inc. Keith Berry | 510-747-9713 www.aptmaintenanceinc.com

vendor directory KMK Contracting & Property Services Kevin Knobles | 925-292-8667 www.kmkcontracting.com PROPERTY MANAGEMENT Bay Property Group Daniel Bornstein | 510-836-0110 www.baypropertygroup.com Beacon Properties Carlon Tanner | 510-428-1864 www.beaconprop.com Cedar Properties Jonathan Weldon | 510-834-0782 www.cedarproperties.com 4Crane Management Kit Crane | 510-918-2306 www.cranemanagment.net The Enterprise Company William McLetchie | 510-444-0876 www.theenterpriseco.com Kasa Properties Tania Kapoor Mirchandani | 415-377-9452 tania@kasaproperties.com Lapham Company Jon M. Shahoian | 510-594-7600 www.laphamcompany.com Mynd Stacy Winship | 510-455-2667 www.mynd.co PTLA Real Estate Group Page Roberson | 925-937-7400 www.ptlareg.com Seville Real Estate and Management Maya Clark | 510-244-1289 www.sevillepropertymanagment.com Shaw Properties Judy Shaw | 510-665-4350 www.shawprop.com Vision Property Management Frank Thomas | 510-926-4104 www.vpmpropertymanagement.com Western Management Property, Inc Leslie Penglis | 510-451-7194 www.westernmp.com Woodminster Property Management Nicholas Drobocky | 510-336-0202 www.woodminstermanagement.com REAL ESTATE BROKERS & AGENTS ARA Pacific Mike Colhoun | 415-273-2177 www.arausa.com CBRE Keith Manson | 510-874-1919 www.cbre.com Coldwell Banker Commercial Henry Ohlmeyer | 925-831-3390 www.coldwellbanker.com Edrington and Associates Steven Edrington | 510-749-4880 steve@edringtonandassociates.com Lapham Company Tsegab Assefa | 510-594-0643 www.laphamcompany.com

Litton/Fuller Group Luke Blacklidge | 510-548-4801, x130 www.littonfullergroup.com Marcus & Millichap Eli Davidson | 510-379-1280 eli.davidson@marcusmillichap.com Marcus & Millichap David Wolfe | 510-379-1200 www.marcusmillichap.com NAI Northern California - VP John Caronna | (415) 531-5225 jcaronna@nainorcal.com NAI Northern California Grant Chappell | 510-336-4721 www.nainorcal.com NAI Northern California Timothy Norkol | 510-336-4724 tnorkol@nainorcal.com The Pinza Group Steven Pinza | 510-725-4775 www.pinzagroup.co Red Oak Realty Vanessa Bergmark | 510-292-2000 vanessa@redoakrealty.com Seville Real Estate and Management Maya Clark | 510-610-7699 www.homesbyseville.com Six Degrees Realty Stephanie Christmas | 510-461-4663 www.stephaniechristmas.com RENT CONTROL CONSULTANTS Bay Property Group Cristian Villarreal | 510-474-7404 cristian@baypropertygroup.com Edrington and Associates Steven Edrington | 510-749-4880 steve@edringtonandassociates.com Rent Board Matters Liz Hart | 510-813-5440 liz.hart1801@gmail.com RENTAL SERVICES Hamilton Properties Bay Area Delesha Hamilton | 404-606-2141 www.hamiltonpropertiesbayarea.com Caldecott Properties Jody Cox | 510-282-5014 www.caldecott.com ROOFERS A-One Construction Eva Morrissey | 510-347-5400 www.a-oneconstruction.com Fidelity Roof Company Doug Kellor | 510-547-6330 www.fidelityroof.com Frank Fiala Roofing Frank Fiala | 510-582-6929 www.ffialaroofing.com General Roofing Company Michael Wakerling | 510-536-3356 www.generalroof.com

SECURITY/SURVEILLANCE Nor-Cal Private Security Services Jimar Richardson | 209-534-6118 www.ncpsecurity.com R & S Overhead Garage Door Sean Boatright | 510-483-9700, x14 www.rsdoors.com SEISMIC CONSTRUCTION SGDM, LLC. Henry Mak | 415-688-9869 hmak@sgdmllc.com Simpson Gumpertz & Heger SKenneth T. Tam | 415-343-3048 www.sgh.com West Coast Premier Construction, Inc. Homy Sikaroudi | 510-271-0950 www.wcpc-inc.com SEISMIC ENGINEERING Earthquake & Structures, Inc. B.K. Paul | 510-601-1065 www.esiengineers.com Simpson Gumpertz & Heger SKenneth T. Tam | 415-343-3048 www.sgh.com SGDM, LLC. Henry Mak | 415-688-9869 hmak@sgdmllc.com W. Charles Perry & Associates W. Charles Perry | 650-638-9546 www.wcharlesperry.com West Coast Premier Construction, Inc. Homy Sikaroudi | 510-271-0950 www.wcpc-inc.com TENANT SCREENING SERVICE Contemporary Information Corp. (CIC) Dan Firestone | 888-232-3822 www.continfo.com TOWING SERVICE Ken Betts Towing Service Ayub Azam | 510-532-5000 www.kenbettscompany.com TREE SERVICE Coastal Tree Service Hans Waller | 510-693-4631 www.coastaltreeservice.com WASTE & RECYCLING MAINTENANCE Bay Area Bin Support Nancy Fiame | 888-920-BINS www.bayareabinsupport.com TrashScouts Peter Gella | 510-788-0462 www.trashscouts.com www.bawaste.com

Lee & Associates Commercial Real Estate Michael Lopus | 925-239-1424 mlopus@lee-associates.com

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Maisel Property Management, Inc. Serving Oakland and Surrounding Areas

MPM

5942 MacArthur Blvd, Ste. E Oakland, CA 94605 Next Door to Better Homes Realty

Level of service and fees tailored to your needs We can locate qualified tenants for your vacancies Experienced with Section 8 tenants Over 65 years of combined experience in residential property management in Oakland

EAST OAKLAND Specialist! www.maiselpropertymanagement.com

510-568-4444 510-562-8600

Multi-Family, Commercial Property, General liability 925 788 5558 | rcallaway@pdins.com www.hosprop.com Planned insurance programs since 1906 LICENSE# 0K07568

THE LAW OFFICES OF

ALAN J. HORWITZ Decades of successfully navigating housing providers through an increasingly challenging legal process.

510 3rd Street, Suite 101 Oakland, CA 94607 510-839-2067 alanhorwitzlaw.com

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ad index PRODUCTS & SERVICES

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

Pacific Diversified Insurance. . . . . . . . . . . . 33 LAUNDRY

Wash Multi-Family. . . . . . . . . . . . . . . . . . . . . 21 PLUMBING

Albert Nahman Plumbing . . . . . . . . . . . . . . 25 PROPERTY MANAGEMENT

Maisel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 PROPERTY MANAGEMENT & SALES

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

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