Rental Housing Magazine July/August 2022

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Contents

Features

22 DISASTER PLANNING AND PREPAREDNESS

Preventative disaster planning keeps renters safer

26 A SUCCESSFUL SEISMIC RETROFIT PROJECT

Things to consider from a structural engineer’s perspective 2 JULY+AUGUST 2022 / EBRHA.COM

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EAST BAY RENTAL HOUSING ASSOCIATION Volume XXVIII Number 21 | July/Aug 2022 EBRHA OFFICE

3664 Grand Ave., Suite B, Oakland, CA 94610 TEL 510.893.9873 | FAX 510.893.2906 ebrha.com CHIEF EXECUTIVE OFFICER

Derek Barnes aemail@ebrha.com | 510.893.9873 ext. 407 COMMUNICATIONS AND MEDIA RELATIONS

Ash Sukumar communications@ebrha.com | 510.893.9873 ext. 404 ADVERTISING AND MEMBERSHIP SALES

Danielle Baxter sales@ebrha.com | 510.893.9873 ext. 403 MEMBER SERVICES AND SUPPORT

Damon Rothgeb membership@ebrha.com | 510.893.9873 ext. 414 FACILITIES AND EVENT SCHEDULING

Shani Brown shani@ebrha.com | 510.893.9873 ext. 406 PROGRAM OPERATIONS AND ENGAGEMENT

Jennifer Wood jennifer@ebrha.com | 510.893.9873 ext. 413 BILLING AND ACCOUNTING

Chris Welton accounting@ebrha.com | 510.893.9873 ext. 405 EBRHA OFFICERS PRESIDENT Wayne C. Rowland FIRST VICE PRESIDENT Luke Blacklidge TREASURER Chris Moore SECRETARY Brent Kernan EBRHA BOARD OF DIRECTORS

Wayne C. Rowland, Luke Blacklidge, Chris Cohn, Lazandra Dial, Brent Kernan, Carmen Madden, Chris Moore, Courtney Morse, Fred Morse, Joshua Polston, Jack Schwartz, Aaron Young PUBLISHED BY

East Bay Rental Housing Association PUBLISHER Derek Barnes EDITOR Michelle Gamble ART DIRECTOR Bree Montanarello

STAY CONNECTED WITH EBRHA Call: 510.893.9873 Membership Questions: membership@ebrha.com Visit: ebrha.com Share Your Feedback: editor@ebrha.com Advertise: sales@ebrha.com Read: issuu.com/rentalhousing Learn: ebrha.com/faq Ask: ebrha.com/submit-your-questions Participate: web.ebrha.com/events GET SOCIAL @ebrha_rentrospect facebook.com/EastBayRentalHousingAssociation @EastBayRHA

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 bimonthly for $9.95 per issue by the East Bay Rental Housing Association (EBRHA), 3664 Grand Ave., Suite B, Oakland, CA 94610.

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 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 bimonthly, 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. ©2022 by EBRHA. All rights reserved.

JULY+AUGUST 2022 / EBRHA.COM

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Contents J U LY/ A U G U S T 2 0 2 2

Departments 6 8 9 10 12 16 18

WELCOME Letter from the CEO, Derek Barnes CALENDAR EBRHA events and other happenings OUT & ABOUT EBRHA snapshots and highlights INFORM Legislative Updates EDUCATE Rental property market report CONNECT Cutting-edge technology revealed ADVOCATE The Oakland City Council passes new rental increase, but is it fair?

20 INSPIRE

30 SUPPLIER DIRECTORY 34 LAST LOOK

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Welcome A LETTER FROM EBRHA CEO DEREK BARNES

July 5, 2022, I had an opportunity to listen to a 12+ hour Oakland City Council meeting where Councilmember Dan Kalb’s proposed modifications to Oakland’s Just Cause Ordinance. Several members threatened to abstain from voting on the changes, citing general process issues and no evidence of production impact studied. The agenda was packed with many other resolutions council members needed to hear, debate and ultimately vote on in a single session. A few items were highly complex and controversial policies with enormous economic impacts on the city that members were hearing for the first time.

Derek Barnes

“...this is no time to break longstanding precedent and reinject politics into the annual adjustment.”

While listening, I was particularly challenged by a few areas and shocked by how Oakland government works or isn’t working for us. Oakland City Council at work and councilmember’s interpersonal dynamics would make a great case study at some point. For now, I’d like to share my observation for those who rarely get a glimpse into the business of policy making as we close out a heavy legislative period.

First, nearly every day, I look at our magnificent City Hall at Frank Ogawa Plaza. While in the virtual City Council meeting, staring at City Hall, I wondered when it will be fully occupied and active again doing the work of the people. Now, it stands eerily vacant and desolate with no signs of life except the surrounding encampments, people without shelter seeking refuge, and derelict activities that aren’t regularly monitored by OPD. With a stabilized economy and Alameda County lifting its mask mandate in June, it’s time for our elected officials to return to their public offices at City Hall where Oaklanders can meet with them again.

During the marathon meeting, I also had this overwhelming feeling that many council members don’t think they need to engage all of their constituents. Perhaps that’s strategic.

Learning more about the city’s problems from different perspectives wasn’t necessary – rising crime, the housing crisis, increased addiction and drug use, and more homelessness.

Teleconferencing and Zoom video meetings are convenient modes of communication, but certainly not the best method for sharing ideas. It’s difficult to engage with people in virtual environments that limit other senses we need to make good decisions and informed judgments. It’s even more challenging when half the members of City Council don’t have their cameras turned on – usually the same repeat offenders. It’s offensive and disrespectful to their colleagues who are visibly engaged and to the public who are showing up to provide comments.

When constituents can’t see or interact directly with their elected officials, it creates a real barrier to access and that shouldn’t be the case for those in public service. It also contributes to the divide between the inaccessible elite (those holding power) and everyone else. Opportunities to connect and converse with the wide array of Oakland voters and constituents should excite and encourage all our city leaders, even if tensions and emotions are high. If it doesn’t, they should look for other jobs that are less dependent upon listening to and uniting the public.

Finally, I observed little to no performance accountability and program monitoring or continuous improvement systems in many city department reports. There wasn’t clear or accurate information delivered to the City Council from city staff. Not being subject matter experts, council members didn’t always know the right questions to ask either. Many EBRHA members and Oakland residents have seen this for years. The lack of data was apparent in areas providing city services connected to human resources, public safety, housing, building, and permitting. Lack of accountability is a predictable outcome when there’s

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no consistent planning and program development framework, a lack of defined success measures, little application of uniform standards, and an underlying culture of noncompliance – doing our own thing, our way.

Problem identification, asking the right questions and getting the right people around the table are essential for good policy-making and solutions-driven action. City leaders already know what the problems are in many areas of Oakland but aren’t willing to take risks politically to do what’s right to ensure long-term success. For example, Oakland’s City Auditor does a very good job of bringing a plethora of issues and recommendations to the attention of city councilmembers, the mayor and department leaders. However, action and solutions fall into the abyss of city bureaucracy and apathy. Who holds our public officials accountable for the lack of stakeholder involvement they engage and the bad policies they create as a result?

Historically, the media has always been a reliable gatekeeper to hold our elected officials accountable. But the industry has contracted so much that good journalism just isn’t available to us locally – especially dealing with complex topics like housing. Today, reporters don’t have the resources or the attention span to go deep on issues, uncover the truth with facts, and get all sides of the story. Sadly, the reporters we do have may be so biased about the industry of housing and rental housing providers, specifically.

Short-term gains of clickbait reporting is an easier payoff.

Reporters will exploit the manufactured tension between “landlords and tenants” because it will always make headlines and get the impressions needed for advertising.

For those candidates running for Oakland's next Mayor, especially sitting councilmembers, let this be a cautionary message. You must do better and be better. With so many problems to solve in the areas of housing, education, conservation, and public safety, Oakland needs visionary and transformative leadership that can bring people together, inspire new ways of thinking, and include equity and benefit for everyone. The city needs someone courageous who isn’t afraid to disrupt the status quo and an embedded culture that makes the city so difficult to do business with for those who are part of Oakland’s $3B+ rental housing economy.

To solve big 21st century challenges, Oakland needs extraordinary public servants, not more people vying for political power. For all the taxes and fees collected to employ 5000+ city personnel, what value are city services delivering to all of its residents and small businesses?

Who’s accountable for what’s not working and fixing poorly constructed policies? These are some of the questions that EBRHA members need answered.

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Calendar

F I N D T H E L AT E S T E B R H A E V E N T S & R E G I S T E R AT W E B . E B R H A .CO M / E V E N T S

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JULY 4 4th of July Celebration JULY 5 2-3:30 PM Asset Protection Presented by Harry Barth, Calderon Firm JULY 6 3-4:30 PM Rental Adjustment Program Updates Presented by Marvin Nettles and RAP Staff JULY 7 4:00 PM Community Mediation Services Presented by SEEDS JULY 12 2-3:30 PM Roundtable Presented by Wayne Rowland, Board President JULY 14 3-4:30 PM Supplier Spotlight EBRHA Supplier Members JULY 21 3:30-4:30 PM Member Orientation Presented by EBRHA Staff

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JULY 26 3-4:30 PM Member Updates and Q&A AUGUST 4 Probate Presented by Singh Law Group Dave Singh AUGUST 9 2-3:30 PM Roundtable Presented by Wayne Rowland, Board President AUGUST 18 2-3:30 PM The Forum Presented by Dan Lieberman, Housing Expert AUGUST 25 3-4:30 PM RPM 103 Presented by Brent Kernan AUGUST 30 3-4:30 PM Member Meeting

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NON-EBRHA EVENTS

IF YOU WOULD LIKE TO PITCH AN EVENT FOR THE CALENDAR, PLEASE EMAIL EDITOR@EBRHA.COM

Out & About ABOUT THE TOWN

Karibu Wine Bar; Alameda – EBRHA Team Outing. EBRHA Staff

Pleasant Hill Community Center; Pleasant Hill – EBRHA Next Innovation & Technology Conference. EBRHA Staff & Volunteers

Luxe Events & Cruises; Alameda Chamber of Commerce Business Excellence Awards.

Derek Barnes & Jennifer Wood

Kissel Hotel (new), Uptown Oakland – Monthly Leadership Meeting. Derek Barnes & Wayne Rowland

Oakland Housing Authority; Oakland -- Property Owner Appreciation Event. Shani Brown

San Diego Convention Center, NAA Apartmentalize 2022. Shani Brown & Jennifer Wood, arriving and volunteering JULY+AUGUST 2022 / EBRHA.COM

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Inform

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he California State Legislature goes on summer break in July. In the meantime, some property owner and renter laws have been passed or are still moving through the process.

East Bay Rental Housing Association (EBRHA) advocates for its members and tries to keep everyone apprised of important legislation that can affect the industry.

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NEW LAWS PASSED Among the new laws passed, and that EBRHA maintains an interest in, is AB 1738, which mandates the installation of EV charging stations in the parking lots of every multifamily property. AB 1738 was just amended at EBRHA’s request. The bill mandated the installation of EV charging stations in the parking lots of every multifamily property. Residential property owners

would have collectively spent billions of dollars to comply with the proposed mandate. As amended, and per our request, the bill will not impose that mandate unless owners pull a building permit and undertake major remodeling of parking lots.

While the cost requires extra expenditures, it’s unlikely that residential property owners will not face this change one way or the other when such

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“East Bay Rental Housing Association (EBRHA) advocates for its members and tries to keep everyone apprised of important legislation that can affect the industry.”

a strong push at the state and federal levels exists to reverse climate change and promote sustainable sources of energy. It’s an inevitable change in the industry, so the passage of this law demonstrates lawmakers’ commitment toward change; however EBRHA acts to make it manageable for our members to meet the requirements.

BILLS BEING TRACKED Other laws that EBRHA is tracking and strongly opposes include the following: AB 2053 establishes a massive, new state agency, the California Housing Authority, for the purpose of developing mixed income “SOCIAL HOUSING” (emphasis added). This bill calls into question who should own and operate “affordable” rental housing in the state.

AB 2053 (Lee) creates the CA Housing Authority, but more important it establishes the CA Social Housing Act. The sole purpose of the bill is for the entity to “own housing which shall be provided at sub-market prices and allocated (to renters) according to specific rules (price control) rather than according to market mechanisms (privately owned rental housing). The entity that would be created is charged with the responsibility to buy existing rentals and develop new housing.

It will openly compete with private

ownership and benefit by not paying any taxes, thus driving market prices of all rental housing. The bill will soon be heard in the Senate.

AB 2383 protects convicted felons by creating a new class of protected individuals that are not recognized as a protected class by any other civil rights legislation (other than Oakland and San Francisco). The safety and security of renters will be compromised. The bill treats all felonies as if they have the same consequences and allows applicants that have a felony to dispute owners' decision not to rent.

Available rental units would be kept off the market for up to three weeks, during which time the applicant presents their arguments. All other qualified applicants would be forced to wait until the “felon” applicant exhausts all of their remedies to rent.

AB 2597 requires the state Building Standards Commission (BSC) to approve mandatory building standards for the safe indoor ambient air temperature in all rental housing. AB 2597 (Bloom) was recently approved by the lower house of the Legislature, the Assembly. EBRHA continues to oppose the bill, despite significant amendments. At one time the bill would have declared all existing rental housing to be substandard if at the dwelling it did not provide adequate cooling (not defined).

Now, the bill charges the state Housing and Community Development Department to develop, propose and recommend new building code requirements to the state Building Standards Commission for all new and existing housing to provide for adequate residential cooling. This ill-defined standard will (not could) cost thousands of dollars per existing dwelling.

BILLS NOT PASSED An important bill that didn’t pass is SB 1335, which prohibited the use of any of a person’s credit history/report as part of applying for a residential rental unit if that applicant provides “alternatives of financial responsibility,” which didn’t get defined. The committee accepted arguments that credit reports are universally used by creditors.

The bill would have supplanted the lawful and purposeful use of credit reports. The use of the term “alternatives of financial responsibility” did not assure the legal obligation to always pay rent in the event of default nor did it guarantee prompt payment. Unlawful detainers would have become far more complicated than ever. EBRHA is quite pleased that the bill died along with many other bills regarding the use of credit reports.

Information reprinted with permission from The Rental Housing Digest.

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Educate R E N TA L M A R K E T A N A LY S I S

The Ups and Downs of a Changing Marketplace

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interest rates by reducing the money supply (i.e., stopping the Fed’s balance sheet expansion for now and eventually raising Federal Funds interest rates to banks and lenders).

As capital becomes scarce, it will flow away from risk into safety and terms offered by banks will follow.

Recently, a prospect for our listing at 22 Domingo, a 15-unit property in Rockridge, saw loan quotes change rapidly over a span of six weeks. Interest rates on a five-year fixed loan from

the same bank rose from 4% to 5% and LTV decreased from 60% to 50%. This bites into returns for investors and lowers their willingness to pay (i.e., reduces prices). In the near future, this may lower valuations but will eventually be offset by higher rents as owners pass along inflation.

Looking into Zumper’s May 2022 rents, New York has jumped to the top spot at $3,590/month in median rent for a 1-bd/1-ba unit, San Francisco slid down to second at $2,900, and

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fter the East Bay region bounced back to the tune of a 98% year-over-year rise in the total sales volume for East Bay Multifamily properties of 5+ units (an outlier among surrounding regions), rising interest rates look set to bring a healthy balance to market dynamics. Inflation, as measured by the national Consumer Price Index (or “CPI”) recently reached 8.1%, prompting the Federal Reserve to begin raising effective

By Robert Chappell, NAI Norcal

“Rising operating expenses due to inflation and rising debt financing costs will test owners in the rent controlled markets of the East Bay over the next two years.”

Oakland in the tenth spot at $2,050.

Nationally, major cities with the top 10 highest rents have seen rent recoveries of 40% year-over-year while San Francisco and Oakland have been relatively stagnant. Oakland’s rent grew just 3.5% over this period.

Oakland’s struggle to recover rents year-over-year may be explained by any number of factors. It may be that the WFH trend has not yet reversed, although Elon Musk’s email to Tesla employees requiring a return to office could help reverse the trend. It may be due to two consecutive years of over 170K+ net population declines in California. Or it may be the “cost” of owning in a stable market like the East Bay as the Oakland City Council has moved to protect renters by capping rent increases at 3% per year for existing renters, despite the 8.1% CPI reading. This dampens the inflation hedge benefits but does not change the general recipe for success: topperforming owners actively screen for great renters and renovate between vacancies to raise the building’s profile (and rental income).

Despite the inflationary headwinds, East Bay and Bay Area owners ought to remain confident in the intrinsic value of properties in this special location. For starters, the Bay Area’s unique value over the past three decades took off as world-class educational institutions fostered innovation

that led to amazing software and hardware products. Bay Area people and capital will continue to place large bets on world-changing ideas. Berkeley, the top-rated public university in the country, has performed extremely well among East Bay submarkets.

Secondly, the region continues to invest in infrastructure such as the expansion of BART to the South Bay and is now making it easier to build high-rise apartments. Thirdly, the region fosters diverse industries such as biotech and agriculture, which reduce volatility of regional incomes.

Fourthly, the recent recalls of the San Francisco District Attorney and three San Francisco County Board leaders before that show the population will organize and be responsive to issues of safety and education — important drivers of housing value.

2-4 UNITS For buildings financed by residential loans in the 2-4 unit range, we look at total sales volume for Q1 2022 as well as the trailing 12 months since sales activity can be seasonal. Comparing Q1 2022 to Q1 2021 in the MLS data, Alameda sales are up 50.1% from $13.8M to $20.6M; Berkeley is down 11.4% from $35.4M to $31.1M; Oakland is up 11.1% from $99.0M to $110.2M. For the trailing 12 months from the end of Q1 2022, compared year-overyear, we see slightly different numbers:

Alameda is up 136.1% from $35.3M to $83.4M; Berkeley is up 88.3% from $96.6M to $181.9M; and Oakland is up 126.4% from $230.8M to $522.5M. The large percentage change year-over-year comes on the back of the pandemic and the large liquidity pumped into the system. Regionally, it’s not surprising to see Berkeley demonstrate smaller change as a large part of its market depends on steady educational spending.

5+ UNITS For 5+ unit buildings in the East Bay Region, according to CoStar, we saw a 321% increase from Q1 2021 ($256M) to Q1 2022 ($1.08B), an outlier among neighboring regions of San Francisco, San Jose, San Rafael, and Sacramento.

The trailing 12 year-over-year increase of 227% for the region from $1.05B to $3.45B. However, adjusting these figures to exclude sales of buildings with 51 units or greater, we see total East Bay Region sales volume for Trailing Twelve Months (or “TTM”) Q1 2022 grow from $415M to $1.57B, a 279% increase year over year. Some owners were likely driven to sell by the combination of recent all-time highs in rents and mature credit cycle getting ready to shift (i.e., long period of low interest rates and growing asset values followed by inflation). But, as mentioned before, the diverse East Bay submarkets offer different stories. Looking at CoStar’s submarkets of Berkeley, Alameda and JULY+AUGUST 2022 / EBRHA.COM

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• Strong growth in Alameda (Q1 2022 sales of $29.7M @ Y-o-Y growth of 1704%, TTM Q1 2022 sales of $68.7M @ 166% growth rate); • Slightly down in Downtown Oakland (Q1 2022 sales of $2.2M @ Y-o-Y growth of -86%, TTM Q1 sales of $77.1M @ Y-o-Y growth of -20%) • Good growth in Lake Merritt / North Oakland (Q1 2022 sales of $51.5M @ Y-o-Y growth of 153%, TTM sales of $113.5M @ Y-o-Y growth of 34.3%) We’re not surprised to see the high sales volume and strong growth in Berkeley and Oakland since these are considered higher quality markets with more stable incomes than other submarkets. If investors anticipated volatility due to the late stages of the credit cycle we’re in or other macro factors, the highly desired neighborhoods of Berkeley and Oakland provided havens for their capital for different reasons.

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In the Lake Merritt / North Oakland neighborhoods, renters may find large units in old buildings, safe streets and proximity to shopping districts with character. For example, just a few blocks in between both Piedmont Avenue and Grand Avenue in the Grand Lake Neighborhood, we sold 491 Crescent Street (27 units @ $10.55M, 12.64 GRM, 4.18% cap rate). The investor was willing to pay a relatively high price to capture a market opportunity to create high-end rentals for young professionals in the 950SF 1bd/1ba units that had recently fetched rents of $3400/month. This rent is exceptional but demonstrates the upside potential of higher-quality buildings in A locations.

Berkeley offers an ideal renter demographic in the form of well-funded students that cycle in and out of units every 2-3 years to be able to attend the best public university in the country. Our recent sale of 2333 Channing (29-unit @ $11.1M, 15.1 GRM, 3.68% cap rate) illustrates the market’s potential. The sellers achieved exceptional revenue per square foot

by designing optimal unit layouts and running their own property management team, people in a bedroom which coordinated lease arrangements that could even be on a per-bed basis (i.e., 2+ people in a bedroom).

The young renter profile, location and exceptional building performance allowed the sellers to achieve a valuation of $690/SF — a near market best for 5+ unit buildings in Berkeley.

Rising operating expenses due to inflation and rising debt financing costs will test owners in the rent controlled markets of the East Bay over the next two years. Valuations will fall as the Federal Reserve must control inflation to maintain credibility in the markets by raising interest rates to slow spending and investment rates.

However, owners are encouraged to take the long view and optimize their properties for stable or growing cash flows by renovating, screening for quality tenants, investing in ADUs and/or eyeing potential properties to 1031 exchange into inside the dynamic East Bay Market.

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Oakland, we see: • Strong growth in Berkeley (Q1 2022 sales of $69M @ Y-o-Y growth of 289%, TTM Q1 2022 sales of $186.3M @ Y-o-Y growth of 175%);

Connect TECHNOLOGY SOLUTIONS

Technology Solutions for Easier Property Management

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SECURITY SYSTEMS Let’s start with overall systems and what can be remotely managed.

“Smoke detectors, thermostats and house management apps are all gadgets or tech systems that are available for property owners to install and use,” said Tom Kelly, chief technology officer at Life Part 2 (lifepart2.com). These devices can be easily managed on either

smartphones or tablets.

All properties are required by law to have smoke detectors, and therefore, new tech solutions can offer some unique ways to not only ensure the smoke detectors work, but also eliminate those unwanted times when they accidentally go off. “Smoke detectors and security systems are two of the most common gadgets or tech systems

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ome technology just keeps getting better and better, and more interesting in terms of its capabilities. Now property owners and renters can remotely manage anything from safety devices such as smoke detectors to kitchen faucets. It seems today’s devices and apps can run the whole house.

By Ryan Tucker

Infrared cameras connected to Wi-Fi send livestream footage to the security system. If the camera detects anything from movement to package deliveries, the system alerts the user. Infrared aka “color-night vision,” allows broader visual coverage and enable audio so you can speak to whoever is on camera.

Some cameras even integrate with Amazon Alexa and Google Assistant.

Little “home-security pals” have also come out. One such device is called Novi. This small devices works like an average smoke detector and offers other features. “It has a 360-degree rotational camera to detect any sketchy motion, and also a siren that alerts you of any intruders,” said Jason Wise, chief editor at Earth Web. “It’s very easily controlled by an app that lets you watch the live camera footage and sends you notifications for any detected security threat. Pretty much a one-stop security solution.”

used in a property,” said Daniel Chan, chief technology officer at Markplace Fairness (marketplacefairness.org).

“Smoke detectors work by sensing the smoke in the air and triggering an alarm to let people know there is a fire.”

Home security systems use multiple technologies, including numerous sensors for each part of the house, cameras and alert systems that relay information via smartphone apps or tablets. All of these components work together to secure the home. Some of these systems also include the smoke and CO2 detectors as a part of the entire package.

SMARTLOCKS Some cool new products have come out called “SmartLocks.” “Smart locks are one the best technological upgrades a property owner can use to help automate their operations. It saves you time and hassle of having to drive out to the property for emergency situations such as renter lock-outs, contractor access, Airbnb guest access, prospective buyer showings, etc.,” said Bill Samuel, a real estate broker/investor at Blue Ladder Development based in Chicago.

“You can have a lockbox with a key on the door of the property, but this doesn’t provide nearly the versatility that a smart lock will provide,” said Samuel. “For example, a smart lock with a keypad will allow you to control the lock from an application on your

cell phone from anywhere as well as at the property in person using the keypad or physical key. The other main issue we have discovered with having a lockbox with a key is that people will occasionally take off with the key, causing you to have to do an emergency run to the property to let someone in and replace the key (keyless entries solve this problem).

KITCHEN FAUCETS Since few things in the home aren’t able to be controlled by technology, why exclude the kitchen sink? According to Aimee White, co-owner of Keyboard Kings (keyboardkings.com), “An interesting new tech gadget for the home is the smart kitchen faucets. These faucets work in a number of ways. You can control them using voice activation through Alexa, or through the Alexa app. This will turn the tap on, and you can also ask it to change the temperature of the water to suit your needs too.”

COMING SOON What can we expect to see in the near future? Wise said, “Personally, I’m very excited about using Wi-Fi signals for security purposes. Recent developments in the Wi-Fi technology have revealed how it can be used to detect motion, precise to decoding a text message by detecting finger taps. It’s also being used to tell the height, silhouette and motion of any person who moves in the signal range. I’m sure there are a lot of privacy concerns that also rise here, but used ethically, Wi-Fi technology can make astonishing breakthroughs in the security industry.”

Ryan Tuckeris a Bay Area-based writer.

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Advocate E X A M I N I N G T H E R AT E A DJ U S T M E N T P R O G R A M

How Did the 2022 Allowable Rent Increase Happen in Oakland?

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rate increases (see chart), you’ll notice this rate increase is not the highest or the lowest. Given that the current rate of inflation is at an all-time high (in June 2022 it was over eight percent but more like 20 percent when you factor the increases in gas and utilities), this percentage should reflect the current economic environment.

Property owners face the same hard-

ships as everyone else and need to be able to get a decent return on investment. Wouldn’t it have made more sense to at least increase the rate to a number more closely aligned with the 2019 (see chart) or 2018 rates?

How did the Oakland City Council and its leader Sheng Thao, president pro-tem, and members determine the percentage? Under the Freedom of

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fter decades of an agreed-upon formula (averaging CPI and CPI minus housing), the Oakland City Council cancelled that formula and created the current allowable increase of 3.0%, which goes into effect August 1, 2022.

The approval of the new rate passed in May. If you consider the historical

By Michelle Gamble

Information Act, our request to get the communication from multiple parties involved in CPI adjustment conversations to determine a new allowable rent increase resulted in the bare minimum level of documentation being provided to EBRHA. Or our request yielded the bare minimum that city was required to give us. The city’s response was sparse and didn’t address all the parties. However, what we got back leads us to believe that the city didn’t do its due diligence, because there is little evidence that council members sought out input of experienced small rental property owners and managers.

So, how did the actual rate get determined. In more than one text correspondences between the Brandon Harami, representative from the Oakland Tenants Union, urgently requested to meet with Thao to discuss the CPI. These requests were made on May 2, 2022 and May 23, 2022. Since these texts don’t say anything specific about the Union’s point of view, a comment

by Harami in the May 2 text (“…this is insane”) indicates the Union may have had some unanswered concerns. However, it’s obvious the union weighed in on it. Given that the Union’s mission is to protect renters, it’s safe to assume they provided input based on their stakeholders’ perspectives.

Did the Union have more influence over the decision that kept the rate lower and not reflective of the current economic state? If so, were property owners given a fair voice or did the Council have other considerations and stakeholders they choose to support versus “getting real” about the economic environment?

Property owners are no different

than any other business, they have to make a profit or what’s the point of the investment? Now consider that their bills are rising, too. Renters whose leases include payments of water bills, trash and even landscaping are still required to pay vendors regardless of increased costs. This leaves property owners to manage cost increases while not necessarily being able to recoup the extra expenses.

No other industry is expected to bear the burden of non-paying customers while shouldering rising operating costs without the ability to recoup their expenses.

It’s important to keep a fair and equitable balance among all parties, but also it’s equally as important that everyone feels it’s just. Outside influencers such as the Union meeting directly with Thao, the president protem, implies someone got a seat at the table. Did the Council members listen more to the Union? Did organizations like EBRHA get properly acknowledged and heard?

In a year of the highest inflation we’ve seen in decades, the Council’s actions reduced the inflationary burdens of renters and shifted these to housing providers (while giving themselves raises). Additionally, inflationary conditions do not consider higher operating costs and safety precautions needed due to the significant increase in neighborhood crime.

The property owner industry has to balance the human side and the business end. Losing money or not being able to make a profit, means that property owners essentially take the hit. Did the Council do any economic impact studies versus bending their ears toward the Union? Conducting

an actual study would have given a fair and credible outcome. In requested information from the City Council, it appeared no such study was done, which makes this percentage somewhat arbitrary. If any study was conducted, it didn’t appear in the requested information.

Here at EBRHA, we care about fairness, equity and inclusion. So, the tough question, was this fair and inclusive of all interests?

Michelle Gamble is the editor of Rental Housing Magazine.

HISTORIC CPI RATES • • • • • • • • • • • • • • • • • • • • • •

Effective August 1, 2022: 3% July 1, 2021: 1.9% (current CPI) July 1, 2020: 2.7% July 1, 2019: 3.5% July 1, 2018: 3.4% July 1, 2017: 2.3% July 1, 2016: 2.0% July 1, 2015: 1.7% July 1, 2014: 1.9% July 1, 2013: 2.1% July 1, 2012: 3.0% July 1, 2011: 2.0% July 1, 2010: 2.7% July 1, 2009: 0.7% July 1, 2008: 3.2% July 1, 2007: 3.3% May 1, 2006: 3.3% May 1, 2005: 1.9% May 1, 2004: 0.7% May 1, 2003: 3.6% July 1, 2002: 0.6% March 1, 1995 – June 30, 2002: 3% per year Source: City of Oakland Website JULY+AUGUST 2022 / EBRHA.COM

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Inspire M OT I VAT I O N TO K E E P WAT E R U S AG E D O W N

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How to “Drain” Those Summer Water Bills

ummer is here! Summer means fun in the sun and increased water bills to keep that landscaping beautiful or fill those swimming pools. Here in California we also face drought-related water shortages. Many property owners and renters can do their parts to reduce water usage while also keeping the property green, but a key component requires renter cooperation.

Many property owners, whose rental packages or buildings include water usage in the price of rent, may find it challenging to convince renters to conserve water. It’s human nature to be less concerned about how much money is being spent on water consumption when the bill isn’t being paid out of your budget. Thus, many property owners may be challenged to get renter cooperation when it comes time to reduce water usage.

The good news is that overall conservation and sustainability are widely embraced by the Millennials and Gen Z. For example, “Seventy-three percent of Gen Z consumers surveyed were willing to pay more for sustainable products, more than every other generation,” stated an article titled “The environment is Gen Z’s No. 1 concern – and some companies are taking advantage of that” by Katie Johns. “And, despite being the youngest cohort with many still in school, they were willing to spend the most in added costs, with 54% saying they would pay more than a 10% increase in price for a sustainably made product.”

Now take into account that these generations comprise a substantial

By Lynn Tacker demographic in the percentage of people who rent. Google shows that 18 percent of Millennials expect to always rent while 22 percent of Gen Z rents. As a result, 40 percent of the rental population fall into these generations. It’s not difficult to convince younger generations whose values already reflect a predisposition toward sustainable options and behaviors to “do the right thing.”

Property owners don’t need to convince these generations to conserve natural resources and water, but they do need to do outreach and communicate these needs to their renters, not just the Millennials and G Zen but all generations. The real question is, what communication tactic can both inform but also motivate water conservation?

One can look to what utility companies do as an example of effective communication. For example, PG&E sends power updates and conservation tips via an e-newsletter to its customers. These updates urge consumers to save power through ideas.

As a property owner, you can send an update or newsletter (if you have more than five renters) via an email system such as Constant Contact or MailChimp. These systems are easyto-use and provide design templates.

If you’re not a writer or don’t feel comfortable writing it, hire a freelancer.

It costs a little bit of money, but when you compare the rising cost of water and increased usage costs, it’s well worth the investment.

If you have about five to 10 renters, consider an old fashioned letter or

reminder. Send it out at the beginning of summer and then perhaps send out another reinforcement toward the end of summer. California’s rainy season doesn’t really get underway until late October to mid-November. So, reinforcing the message will still apply into fall. It’s especially important to remind renters as the fire season “ignites” in August.

You can also hold a cute, little contest. Offer renters a little incentive as the “water-saver” by giving out a prize for the renter who conserves the most water. You can send out little messages about who’s in the lead. These messages will act as both reminder and incentive to keep water usage down.

Come up with some prize that reflects your values and makes renters happy.

Bottomline: Water is California gold, so use it wisely.

Lynn Tacker specializes in sustainability.

THE “ONE-INCH” RULE

If you’re watering the lawn, experts say lawns only need about 1 inch of water a week. To determine how long it takes to water the lawn by an inch of water, place a plastic container near the sprinkler and see how much time it takes to get to an inch. However long it requires is how much time you need each week. For example, if it takes 20 minutes, divide that by days and water accordingly. You do not need to water the lawn every day.

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Disaster Planning and Preparedness

KEEP YOUR RENTERS

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AND PROPERTY SAFE

D

By Michelle Gamble

isasters happen unexpectedly and often without warning. Property owners and renters not prepared end up feeling shocked, unorganized, and even frustrated when they realize they don’t know where to start to recover. A well-organized plan and the right strategies in place won’t necessarily take away the pain of loss, but it will be clear what to do next – and that feeling alone offers comfort in an often bad situation.

“Proper preparation can reduce and mitigate much of the stress and overall damage depending on the type of disaster at hand,” said William Lemmon, agency principal/owner, Broadway Insurances based in Los Angeles.

As you begin your disaster planning, consider the actual plan. All property owners and renters should have a plan in place to guide them through the process. If you’re unfamiliar with actual disaster planning, invest in a prewritten template and fill in the blanks. You can also find books and guides to help you figure out what to do. Your plan should include all kinds of disasters, including things like our current pandemic. Not all disasters destroy property, but some like the pandemic did require shelter-in-place measures.

“Disasters are unpredictable and can strike when you expect them the least,” said Robert Welch, the CEO of Projector1.com. “This is why having a plan in place, for not only your property but even your family, is important.”

Also, while you are naturally concerned about your property, the human element should be number one. Renters make your apartment or home their homes. A home is a place where you’re supposed to feel safe and secure. So, it’s important that property owners keep their renters the number one priority. “Property owners should have a plan in place for both short- and long-term disasters,” said Tom Kelly, chief technology officer at Life Part 2 (lifepart2.com).

“This plan should include evacuation routes, contact information for emergency services and contractors, and insurance information.”

Further, one must keep in mind that as human nature exists, renters will often search for someone to blame, and you don’t want to be on the receiving end of these inclinations.

You can avoid such blame by being practical, precise, organized, and on top of it. Don’t ever ignore something in favor of the belief, it won’t or can’t happen to you.

“A property owner wants to keep in mind that they are not only protecting this investment but all of your other assets JULY+AUGUST 2022 / EBRHA.COM

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property owners make when a fire occurs?"

“Understanding how to reduce your risk is a strong move and demonstrates responsibility. In my opinion, documenting that conversation and keeping it in the file is an additional step in your favor should a suit come of any event. Having your side of the case solid, creating and maintaining communication logs with details (results, name, date/time, and showing the frequency of managing the process) should help you monitor it and keep them on target.”

“Second, decide what kind of disaster plan you want to have in place, as well as how long it will take to implement each plan if necessary,” continued Green. “Here is when you get insurance coverage suitable and specific to your needs based on the risk assessment you undertook in the previous step. It’s important to understand the process of how your insurance coverage and payouts will happen. As a property owner, you are required by law to have insurance for both property damage and personal injury that may occur on your property. You should also be sure to have coverage for property damage caused by fire, windstorm, hail, and other natural disasters.”

“In order to prepare your property from the effects of a disaster, the best precaution a homeowner can take is to get the correct insurance,” added Welch. “When you go to insure the property, from then on, ask the right questions before getting any insurance. Ask the agents about the inclusion and the amount you can receive if the property is damaged or affected by natural disasters.”

“The smart thing to do is have business interruption cov-

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that can be touched by a lawsuit,” said Cassandra Haavisto, principal at Northwest Select Real Estate Services based in Washington state. “No matter how well-written and executed your emergency plan is, there is always someone trying to find fault and blame. It’s even worse if you do not have an emergency plan at all. It would be wise to show your insurance company a written document of what steps you are taking if an emergency were to strike. It will validate your word when you show them the steps you took, and demonstrate a thoughtful position of care and responsibility that it was considered ahead of time.”

“First, conduct a risk assessment of your property and its contents, including any hazards or potential threats that could affect you or your home,” advised Michael Green, real estate expert and owner of Quick Cash Homebuyers based out of Baltimore, Maryland. “You should also conduct an inventory of your property’s assets and resources. This will help you identify what you’ll need in the event of a disaster, and how to best use those resources.”

Once you’ve completed your risk assessment, time to shop for the right insurance. It’s important to work with insurance companies that specialize in property coverage. “Ask your insurance broker what the insurance company requires for a valid claim and process, you’re doing some basic due diligence to make sure you are following their unique and specific steps eliminating their (and your) risk of exposure,” said Haavisto. “It would be wise to ask questions such as, ‘What are the most common mistakes property owners make when filing a claim?’ or ‘What important mistakes do

in an extreme emergency such as a fire or earthquake,” encouraged Haavisto. “Be prepared with a plan to guide renters knowing that someone on your team will be contacting someone to assist them (be it an organization like the Red Cross or that local church or Salvation Army). Reach out ahead of time to your favorite emergency response organizations and learn their needs from you should you need their assistance. These agencies are not local to your site location many times and can take a few hours to mobilize, so you need to ideally be somewhat prepared to handle the uninjured (not requiring hospital care).”

erage on your insurance,” said Haavisto. “Unless the damage was caused by a renter with renter’s insurance that can stretch to cover it, you’re likely not going to see any rent until the units are renter-occupied. Keep in mind the liability limitations on your required renter’s insurance coverage when setting the policies because a big event will quickly burn through that money.”

RENTERS’ SAFETY FIRST Insurance preparation is an important matter, but keep in mind the human element. The number one concern when an actual disaster hits should be the renters. “When disaster strikes, the first thing you need to do is make sure your renters are safe,” said Green. “If they’re not at home when the disaster hits, make sure they know where to go and how to get there,” said Welch. “If disaster strikes while they are on the property, implement the emergency plan you have in place that tells them what to do in case of any kind of emergency. You should have informed your renters about evacuation procedures beforehand. You should also make sure that anyone staying with you has an emergency kit ready and available in case they need it.”

Additionally, use safety measures to assist your renters during a crisis. Your plan should include how to evacuate the property. Property owners should also help by contacting emergency services or arranging for temporary housing.

Communicate this information by giving them instructions and information about it.

Have a location, often offsite, where renters can gather

THE AFTERMATH After the event, be prepared to repair the property as quickly as possible. “When insurance is paying out, you’ll see people come out of the woodwork looking for the opportunity to do a job,” continued Haavisto. “When a tree fell onto a building at one of my properties, a tree company showed up to do the work. They had to be ordered to leave more than once, and they even hung around hoping someone would ask them to step in. They didn’t know I had a tree company already on their way. In the end, we learned that they had a price tag of $20,000 over what my company charged for that job. Those types of people will burn through your insurance limits, too, so be thoughtful about how the work gets completed.”

In reverse, when you have a major disaster such as an earthquake or fire, contractors and maintenance people will be in high demand and hard to find. “Owners can increase their chances of finding available help by putting out a call for help before a disaster strikes,” said Kelly. “They can also make arrangements for contractors and maintenance people to be on standby after a disaster.”

Haavisto shared an emergency event where everything turned out well all because of advanced planning. “We had a tree come down about 7:30 a.m. on a Sunday morning. It crashed on a two-story building nearly coming down to the ground floor unit. We had a smooth process of first responders being timely, restoration team and contractor rapid response, and the management team caring for renters and all channels of communication. The communication led to comfort and reassurance across all channels so that everyone knew what to expect and where to go upon site arrival; helped ensure that all angles were considered even for collaborative response teams; and we saw the human element come out with unaffected neighbors providing breakfast and shelter. It was truly a wonderful sight to see people come together from renters to contractors and ensure that all the people were okay.”

Michelle Gamble is the editor of Rental Housing Magazine.

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Successful Seismic

RETROFIT PROJECTS Things to consider from a Structural Engineer’s Perspective

By Kenneth T. Tam and David L. McCormick

1. SELECT AN ENGINEER AND CONTRACTOR WHO WILL BE THE RIGHT FIT FOR YOU AND YOUR PROJECT There are many licensed general contractors and structural engineers (and possibly other consultants) in the marketplace. Choosing the right companies to help with your project will greatly affect the outcome. Some owners would like to one-stop-shop (e.g., design-build contractor), while other owners would like to be more hands-on in the process and select the engineer and contractor separately. These two approaches each come with pros and cons. A company with 26 JULY+AUGUST 2022 / EBRHA.COM

contractor and engineer on staff may provide a one-stop shop service that helps you navigate the process: designing the retrofit, obtaining permits, construction, etc. Selecting an engineer first (separately from the contractor) allows you to have a set of construction documents (i.e., drawings) to solicit multiple bids from contractors. Since construction costs are usually a larger percentage of the total cost in a retrofit, this may be beneficial.

2. COMMUNICATE THE DESIRED GOALS AND LOGISTICS Not all seismic retrofits are the same, and your desired performance goal may be different. Some owners want to meet the minimum requirements of the ordinance (and possibly minimum construction cost), while some would prefer a better-performing building. Owners should understand that the soft-story ordinances are meant to reduce the significant deficiency at the soft stories and not the entire building. Below is a suggested list of items to discuss with the engineer or the design-build contractor before they begin work: • Discuss your performance goal. Do you want just to meet the minimum requirements of the ordinance, or do you want more or at least want to consider better performance where it is cost-effective to do so?

• Agree on logistics of site access for the engineer to do the evaluation. Generally, the engineer will need to walk through the entire ground floor and portions of the upper floors. The extent that the upper floors need to be visited is partly a function of the analysis approach used. Some jurisdictions, such as the City of Oakland, also require evaluating “non-structural” items such as gas lines, chimneys or masonry partitions to determine if those elements pose a hazard in an earthquake.

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any cities in the Bay Area including San Francisco, Oakland, Berkeley, as well as others throughout California, have enacted ordinances to address seismic deficiencies in wood-framed apartment buildings with soft stories. These are buildings where the lower levels consist of open spaces (e.g., parking, lobbies, retail spaces) that are considerably weaker than the stories above. In past earthquakes such as the 1989 Loma Prieta earthquake in the Bay Area and the 1994 Northridge earthquake in Los Angeles, many of these soft-story buildings sustained major damage or collapsed because of the inherent deficiencies.

Because of ordinances in some cities, many soft-story buildings have been retrofitted to greatly improve their expected seismic performance and increase the community’s resiliency if a damaging earthquake occurs. From an owner’s perspective, seismic retrofit projects can be a significant undertaking and a non-trivial investment in money and time.

Many factors will determine whether the project is successful.

To avoid headaches and to ensure that your effort and money is not poorly spent, the following are some things the owner should consider when beginning a seismic retrofit project.

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27

• Decide whether to perform localized destructive exploration to identify conditions (such as presence, size, and spacing of anchor bolts in existing walls) during the evaluation and design phase or whether the engineer should make assumptions that are confirmed during construction.

• Discuss limitations of the retrofit. Can some of the garage door openings be closed, or is it required that design maintain all openings? Can the garage door openings be made smaller or do they need to remain the same size?

• Decide if work can be done in one phase. Will the contractor have full access to the ground floor during construction, or does work have to be phased to maintain some parking during construction? Phased construction will generally be more expensive.

3. DO YOU NEED OTHER DESIGN PROFESSIONALS? Aside from a structural engineer, there may be a need for other design professionals.

• Architect: An architect may be required to address complex waterproofing issues or code compliance to satisfy disability requirements, which are more likely if a building has commercial space below. If there is a desire to add an ADU to the design, an architect will likely be needed.

• Geotechnical Engineer: For most sites, the building code allows the structural engineer to assume conservative allowable soil pressures in checking or designing a foundation. However, a geotechnical engineer may be required for the project for sites with apparent poor soils or on a steep hillside.

• Others: Some complex projects may require other design professionals such as a mechanical engineer to relocate utilities, or utility locators to locate existing below-ground utilities, etc. However, many times the contractor can remove and replace such utilities.

4. HAVE GOOD RECORDS OF THE BUILDING Having a complete set of existing drawings and records of modifications to the building will be very helpful to the engineer. If you do not have existing drawings, visit the city’s building department to determine they exist in their archives. The engineer can perform this task, but the owner should expect a small fee if it is not included in the engineer’s proposal. An advantage to having the engineer visit the building department is that they can better judge what information will be useful in some cases. If the owner performs this task, he or she needs to make decisions about copying too much or missing valuable information. There is a fee for reproduction of records, so the owner should expect to reimburse the engineer for these fees.

In addition to existing drawings, share any information you have about previous remodels, repairs, or possible de28 JULY+AUGUST 2022 / EBRHA.COM

terioration (e.g., roof leaks). A deteriorated or weakened structure will not perform well in a seismic event.

If drawings are not available, the engineer, contractor, or a firm specializing in producing as-built drawings will have to measure the building, which will increase the cost. Even with such measurements, there will be building features that cannot be readily determined and it is likely that a more significant destructive exploration effort will be required, or the owner should budget allowances for redesign during construction (see above).

5. MAKE SURE THE ENGINEER VISITS THE SITE BEFORE DESIGN Many of the buildings involved in these retrofits are older buildings that may not have existing drawings. Some may have drawings but there may have been many renovations that occurred throughout the years. The structural engineer should visit the site to familiarize themselves with the existing construction and building condition rather than rely on the drawings.

Some critical information the engineer requires includes: • Presence of brick foundations • Wall connections to foundations (anchor bolts, etc.)

• Wall connections to framing above The engineer needs to pay attention to things that will affect possible retrofits, including: • Is there sufficient room above the garage door openings and associated garage doors for the steel beam in a moment frame?

• Do narrow piers between door openings preclude the use of moment frames?

• Are there plan setbacks at upper floors that require strengthening of the second-floor diaphragm that could need waterproofing?

• Areas that should be avoided include lobbies with ornate finishes, utilities such as gas lines, electrical meters, etc.

6. HAVE A BASIC UNDERSTANDING OF COMMON RETROFIT Each building has its own unique details and there are no cookie-cutter designs. Different retrofit schemes also can affect future usage. The design team can and should provide conceptual design options for your review before you commit to a final design. Below are some common strengthening methods: • Shear walls (Figure. 1A): Shear walls for wood framing construction typically involves nailing plywood sheets on wood stud walls (either existing or new) and connecting these walls to framing at the top and bottom (if upper floor) and to the foundations at the base.

Figure 1 - Common Types of Retrofit

• Braced frames (Figure 1B): Braced frames consist of beams and columns and diagonal braces. They can be used when loads are large.

• Steel Moment Frames (Figure 1C): Moment frames are often used when openings are required, such as around garage doors or large windows. Moment frames consist of at least two columns connected at the top with steel beam(s).

• Steel Cantilever Columns (Figure 1D): Similar to moment frames, these are typically used to allow large openings.

Cantilever columns does not require a large steel beam at the top; thus, it is often desirable if headroom is an issue.

7. HAVE A PRE-CONSTRUCTION MEETING Before the start of construction, set up a pre-construction meeting with the contractor and engineer. This meeting can be held by phone or virtually and does not need to be time-consuming. This meeting allows the various parties to set expectations during construction and ensure that the necessary inspections are carried out. Some items to be discussed should include: • What is the protocol if the contractor needs clarifications to the drawings or would like to substitute a product?

What if there is a change in the cost of construction?

• Does the engineer need to review submittals such as concrete mixes, shop drawings, etc.? Review of submittals by the engineer is recommended.

• Are there conditions that the engineer assumed during design that need to be confirmed in the field?

• At what stages does the engineer need to visit the site to perform structural observations? If the required structural observations are not performed, the engineer may not be able to submit a letter required by most cities at the completion of the project. The contractor must inform the engineer when it is appropriate to perform an obser-

vation. Structural observations are different from city inspections or special inspections (see next bullet) and are important to help ensure the owner gets the quality of construction intended.

• The project will likely require a special inspector/testing agency. Items needing special inspections are identified by a special inspection form that most cities require to be completed during the permit process. The engineer should be the one filling out the form.

8. BUDGET FOR CONTINGENCIES Despite every effort by the engineer, architect, or contractor, it is common for unknown conditions to be revealed when finishes are opened or foundations are revealed. This is especially the case when original drawings are unavailable. This can be the result of modifications over the years or poor-quality construction. For example, walls may exist without any type of foundation beneath them and this could not be detected during a walkthrough. In such cases, not only will the project potentially be delayed, but additional engineering and construction fees may be required. Owners should anticipate this possibility when budgeting for the retrofit.

Just like any other construction project, seismic retrofit projects can be challenging. Having experienced design professionals, contractor, appropriate planning, and budgeting will go a long way to ensure that the project goes smoothly.

Rest assured that when the project is complete, your building will be safer during the next big one.

Dave McCormick, S.E., is a Senior Principal at Simpson Gumpertz & Heger, Inc. He is a licensed structural engineer in California and has over 40 years of experience in seismic evaluation and retrofit of structures and nonstructural components.

Kenneth T. Tam S.E. is a Senior Project Manager at Simpson Gumpertz and Heger Inc. He is a licensed structural engineer in California and has over 25 years of experience in structural design, evaluation, and seismic retrofit of buildings.

REFERENCES: City of Oakland | City of Oakland Mandatory Soft Story Retrofit (oaklandca.gov) | Soft Story Resources (Policy) Association of Bay Area Governments (ca.gov) JULY+AUGUST 2022 / EBRHA.COM

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Suppliers

EBRHA SUPPLIER DIRECTORY

ACCESSORY DWELLING UNITS Adapt Dwellings, Inc. Chris Paizis | 510.319.9045

Jack Schwartz, Attorney at Law Jack Schwartz | 650.863.5823 jwsjr1220@comcast.net

ACCOUNTING & TAX Martin Friedrich, CPA 510.895.8310 besttaxcpa.com

Law Offices of John Gutierrez John Gutierrez | 510.647.0600, x2 jgutierrezlaw.com

AFFILIATIONS ALN Apartment Data 800.643.6416 alndata.com APPRAISERS Watts, Cohn & Partners, Inc. Mark Watts | 415.777.2666 ASSOCIATIONS Hamilton Families Mayo Lunt | 415.321.2612 ATTORNEYS — EVICTIONS/ PROPERTY OWNER DEFENSE Bornstein Law Daniel Bornstein | 415.409.7611 bornstein.law

Burnham Brown Charles Alfonzo | 510.835.6825 burnhambrown.com The Law Offices of Alan J. Horwitz Alan J. Horwitz | 510.839.2074 alanhorwitzlaw.com Law Offices of Brent Kernan Brent Kernan | 510.712.2900 bkernan@aol.com The Shepherd Law Group Michael Shepherd | 510.531.0129 theshepherdlawgroup.com Zacks, Freedman & Patterson, PC 415.956.8100 zfplaw.com ATTORNEYS — LAND USE/ CONDO CONVERSION Law Offices of John Gutierrez John Gutierrez | 510.647.0600, x2 jgutierrezlaw.com

Richards Law John Richards | 925.231.8104 richards.legal.com ATTORNEYS — REAL ESTATE/CORP. Burnham Brown Charles Alfonzo | 510.835.6825 burnhambrown.com

30 JULY+AUGUST 2022 / EBRHA.COM

BANKING/LENDING First Foundation Bank Michelle Li | 510.250.8133 ff.inc.com

Pacific Western Bank Kara Mooney | 301.272.6628 BUILDING SUPPLIES & REMODELING APT Maintenance Keith Berry | 510.747.9713 aptmaintenanceinc.com

GOVERNMENT AGENCIES City of Oakland Housing and Community Development 510.788.0462 oaklandca.gov/rap

Oakland Housing Authority Leased Housing | 510.874.1500 oakha.org Oakland RAP oaklandca.gov/rap StopWaste.Org 510.891.6558 HANDYMAN SERVICES Start to Finish 510.727.9128

Sincere Home Decor Karen Au-Yeung | 510.268.1167 sincerehomedecor.com

INSPECTIONS Edrington & Associates Steve Edrington | 510.749.4880 edringtonandassociates.com

CONSTRUCTION APT Maintenance Keith Berry | 510.747.9713 aptmaintenanceinc.com

INSURANCE Commercial Coverage Paul Tradelius | 415.436.9800 comcov.com

Caldecott Construction, LLC 510.990.6282 caldecottconstruction.com

Foxen Kellie Orewiler | 419.560.7909

Precision Concrete Cutting 650.867.8657 pccnorcal.com SGDM, LLC. Henry Mak | 415.688.9869 hmak@sgdmllc.com DOORS & GATES R & S Overhead Garage Door Sean Boatright | 510.483.9700, x14 rsdoors.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 PFN Insurance Services 510.483.6667 pfninsurance.com

FINANCIAL PLANNING California Strategic Advisors Ron Kingston | 916.447.7229

INTERCOMS & ACCESS CONTROLS R & S Overhead Garage Door Sean Boatright | 510.483.9700, x14 rsdoors.com

First Republic Bank 415.262.2440 firstrepublic.com

LAUNDRY EQUIPMENT ShinePay Charles Aweida | 510.616.9210

Luther Burbank Savings Stephanie Penate | 310.616.0353

LEAD, MOLD & PEST MANAGEMENT Alameda County Healthy Homes Dept.

510.567.8282 aclppp.org

Wilkinson Wealth Management Steven Wilkinson | 510.625.1400 WilkinsonWealthManagement.com Fremont Bank 510.305.0949 fremontbank.com

LITIGATION SUPPORT SERVICES Edrington & Associates Steve Edrington | 510.749.4880 edringtonandassociates.com PROPERTY MAINTENANCE A+ Cleaners LLC Angel Cornejo | 415.416.5291

APT Maintenance Keith Berry | 510.747.9713 aptmaintenanceinc.com PROPERTY MANAGEMENT Bay Property Group 510.836.0330 baypropertygroup.com

Beacon Properties Aaron Young | 510.428.1864 beaconbayarea.com Crane Management Kit Crane | 510.918.2306 cranemanagment.net The Enterprise Company William McLetchie | 510.444.0876 theenterpriseco.com Kasa Operations Inc. Tania Kapoor Mirchandani 415.377.9452 tania@kasaproperties.com Lapham Company Jon M. Shahoian | 510.594.7600 laphamcompany.com Maisel Property Management 510.568.4444 maiselpropertymanagement.com Seville Property Management Maya Clark | 510.244.1289 sevillepropertymanagement.com Vision Property Management Frank Thomas | 510.926.4104 vpmpropertymanagement.com PROPERTY MANAGEMENT SOFTWARE AppFolio John Hogg | 866.648.1536

Azibo 408.890.1094 | azibo.com Buildium, a RealPage Company Lauren Barry | 877.396.7876 Story by J.P. Morgan Shane Nebbia | 201.961.4022 Yardi Systems 800.866.1124 yardi.com

City of Oakland Rent Adjustment Program

Rent Adjustment Program Housing & Community Development 250 Frank H. Ogawa Plaza Suite 5313 Oakland, CA 94612 oaklandca.gov/RAP rap@oaklandca.gov (510) 238-3721

*Announcements*

CPI On June 7, 2022, the Oakland City Council adopted an amendment to change the formula used to calculate the annual allowable rent increase to 60% of the change in CPI or 3%, whichever is lower.

Effective August 1, 2022, until July 31, 2023, the new allowable annual rent increase will be 3%. The current 1.9% CPI increase will remain in effect until July 31, 2022.

Oakland's Emergency Moratorium Oakland’s Emergency Moratorium continues to prohibit most evictions, rent increases beyond the CPI, and late fees on covered units until the City Council lifts the local emergency.

Questions? Contact a Housing Counselor at 510-238-3721.

Small Property Owner Workshop Date: July 13, 2022 Time: 5:30PM--7PM RSVP: tinyurl.com/22rapworkshop6 Please join us for an overview of your rights & responsibilities under Oakland’s Rent Adjustment & Just Cause for Eviction Ordinances.

For information about upcoming workshops, join our listserv at tinyurl.com/RAPsignup.

supplier directory

CBRE Keith Manson | 510.874.1919 cbre.com Coldwell Banker Commercial Henry Ohlmeyer | 925.831.3390 coldwellbanker.com Deeana Owens, Realtor Deeana Owens | 510.225.5810 owensrealestate.com Edrington & Associates Steve Edrington | 510.749.4880 edringtonandassociates.com Lapham Company Tsegab Assefa | 510.594.0643 laphamcompany.com Litton / Fuller Group 510.693.5444 littonfullergroup.com

32 JULY+AUGUST 2022 / EBRHA.COM

NAI Northern California Grant Chappell | 510.336.4721 nainorcal.com Pacific Coast Real Estate 510.915.9721 pacificcoastre.com The Pinza Group Steven Pinza | 510.725.4775 pinzagroup.com The Prescott Company David Weglarz | 510.398.1027 theprescottcompany.com Walker & Dunlop 415.233.3945 walkerdunlop.com RENTAL SERVICES ReLISTO Eric Baird | 415-237-1819 clicks.weblinkinternational.com

Specialized Real Estate 510.225.9224 sresproperties.com

ROOFERS Fidelity Roof Company Doug Kellor | 510.547.6330 fidelityroof.com

Frank Fiala Roofing Frank Fiala | 510.582.6929 ffialaroofing.com General Roofing Company Michael Wakerling | 510.536.3356 generalroof.com SEISMIC ENGINEERING & CONSTRUCTION Quake Brace Manufacturing Company 510.495.1575 quakebracing.com

TENANT SCREENING SERVICE Contemporary Information Corp. (CIC) Dan Firestone | 88.232.3822 continfo.com

Intellirent Cassandra Joachim | 415.849.4400 WASTE & RECYCLING MAINTENANCE Bay Area Bin Support Nancy Fiame | 888.920.BINS bayareabinsupport.com

Trash Scouts 510.788.0462 trashscouts.com

SGDM, LLC. Henry Mak | 415.688.9869 hmak@sgdmllc.com

WASTE MANAGEMENT Sewer Master 510.599.3691 sewerninja.com

West Coast Premier Construction, Inc. Homy Sikaroudi | 510.271.0950 wcpc.inc.com

Waste Management of Alameda County 510.430.8509

MONKEY BUSINESS/ADOBE STOCK

REAL ESTATE BROKERS & AGENTS

NEW VIRTUAL EVENT FOR MEMBERS

EBRHA

SUPPLIER Spotlight

August 2nd 3-4:30pm

To Register

Scan with your phone camera

OPEN TO ALL SUPPLIERS

Hear from 5 different suppliers Learn tips & tricks Free giveaways!

Incentive offers available Build supplier relations 40 minute Q+A session Submit questions at registration

www.ebrha.com

Last Look

I

t’s heading toward fire season, and you will want to ensure your properties are as safe as possible. You can take steps now to prevent and even reduce the flammability of your properties. Use the following tips to fire-proof and possibly save your assets when a firestorm hits.

Rake up and eliminate dry debris – dry leaves, twigs and bushes create fuel. Simply use a rake to get rid of old leaves or a blower to move them into a pile. Pick up dried twigs and pull dead weeds. Put in your compost trash.

Dead shrubs – bushes can die, and left dead, brittle, and dry, can invite a fire. If a bush or shrub has died, pull it out and toss. No need to keep dead bushes in the ground.

Stick to native foliage and excellent irrigation – native foliage supported by smart irrigation that’s hydrated offers fire protection.

34 JULY+AUGUST 2022 / EBRHA.COM

Consider alternate landscaping, especially if you live in a common fire area. You can find some excellent fire-proof alternatives such as river rock, decorative cement, or different kinds of stones, sand, or gravel.

Build a retaining wall – any embers that could roll downhill and onto your property can be stopped by the wall. You can make it attractive by using brick or stone.

Don’t leave combustible fuel in your yard – anything made of wood or other flammable material should not be left outside. It is wise to invest in man-made materials for patio furniture or nonflammable fabrics.

Create a defensible space – this space is at least 100 feet wide and occupies the area that surrounds a building.

This space decreases the fire hazard and enables firefighters to safely defend your home or building.

KHALIGO/ADOBE STOCK

FIRE-PROOFING LANDSCAPING IDEAS

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REAL ESTATE BROKERS & AGENTS Pinza Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 1

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RENT ADJUSTMENT PROGRAM Oakland RAP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 15 & 31

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PROPERTY MANAGEMENT SOFTWARE Yardibreeze. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 35 (this page)

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WASTE MANAGEMENT Bay Area Bin Support. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Back Cover 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.

Activate Your Voice EBRHA ON YOUR SIDE

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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 ebrha.com.

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 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 calbar.ca.gov, find the “Quick Links” on the left side, and then click on “Attorney Complaints” and complete the application.

JULY+AUGUST 2022 / EBRHA.COM

35

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

Our membership consists of more than 1,500 rental housing owners, property managers, attorneys and other service contractors. Altogether, EBRHA represents over 30,000 rental units and serves over 25 cities throughout Alameda and Contra Costa counties.

INTRODUCING NEW EBRHA MEMBERSHIP LEVELS EBRHA is thrilled to present new membership levels tailored to your specific needs!

• Standard: Tier 1

(Small-Medium Owners/Managers, 1-20 Units)

• Advanced: Tier 2

(Medium Owners/Managers, 21-50 Units & Suppliers)

MEMBERSHIP BENEFITS

• Property management advice by phone or in person • Renter 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

• Enterprise Pro: Tier 3

• Monthly educational membership meetings • Community outreach and education

• NEW! EBRHA Affiliate Subscription Get introduced to rental property ownership/management, or simply stay abreast with the industry.

• Membership with the National Apartment Association and CalRHA

(Large Properties/Owners/Managers, 51+ Units)

• Local and state lobbying • An active and growing Legal Action Fund and Political Action Committee • Subscription to Rental Housing and Units

3664 GRAND AVENUE • SUITE B • OAKLAND, CA 94610

WHY SHOULD YOU RENEW YOUR EBRHA MEMBERSHIP? ASK YOURSELF:

1. Has managing rental property expectations/ relationships been a challenge in recent months?

4. Are you worried about the protection of your property rights?

7. Are you unsure who’s defending your business interests?

2. Are there unit vacancies you need to fill right now?

5. Do you have at-risk renters who have been paying rent reliably this year?

8. Are you concerned about the health of your rental housing business in 2022?

3. Is it difficult to constantly navigate all the housing legislative changes?

6. Have any of your renters not paid rent OR are they paying reduced rent?

If you answered “YES” to any of the questions above, then EBRHA is a partner you can’t afford to be without. Membership provides these benefits: ü

Helps you navigate complex housing laws to ensure you’re on the right path.

ü

Provides the latest forms and information for legal compliance and risk mitigation.

ü

Stays on top of relief resources and programs to help your business remain viable.

ü

Amplifies your voice and stories when it matters the most.

ü

Educates members and the community on rental housing best practices.

ü

Helps you keep long-term residents happy and safe through uncertain times.

ü

Bridges the gap between housing providers and policymakers.

ü

Advocates as a community for property owner rights.

ü

Offers on-call support and monthly events to help you succeed, one step at a time.

DID YOU KNOW? EBRHA SERVES ALAMEDA AND CONTRA COSTA COUNTIES

EBRHA IS RIGHT BY YOUR SIDE. RENEW YOUR MEMBERSHIP ONLINE AT EBRHA.COM -> MEMBER PORTAL OR CONTACT MEMBERSHIP@EBRHA.COM

One Vendor.

Many Waste Solutions.

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HOW IT WORKS: Your bins and containers are pulled out and staged at the curb - all ready for garbage, recycle or compost collection services - with minimal time at the curb.

Once the bins have been emptied, we return them to their original storage location – usually within a few short hours.

Bay Area Bin Support offers a wide range of waste maintenance services for multifamily, apartment communities and business properties Push & Pull Service • Junk Hauling • Trash Room Cleanup • Overflow Management • Hauler Liaison • Compactor Service • Cardboard Breakdown • Illegal Dumping Removal • Pressure Washing • Apartment Clean-out • Waste Bill Analysis • Trash Valet • Trash Chute Room Cleanup • Cardboard Bundling • Tenant Education & Communication • Trash Room Signage • Compactor Bin Transport to On-site SelfContained Trash Compactors • Outside Trash Enclosure Cleanup • Customer Support • Container Top-off Service • Trash Volume Monitoring & Reporting • Doorstep Collection • Cost-saving Recommendations • Customized Service Packages

We help you keep dumpster areas clean and free of excess garbage and debris.

Enjoy a lower trash bill each month with reduced distance fees.

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