Rental Housing

LA County Supervisors Ban Sex Offenders from Public Housing
The Los Angeles County Board of Supervisors voted unanimously to allow the county's housing authority to terminate a lease with a three-day's notice if a renter is found to be a sex offender. The ordinance will be incorporated into all future leases and lease extensions. After the Supervisor, Mike Antonovich, learned that a sex offender was living in public housing near an elementary school, he directed the board of supervisors and outside legal counsel to look at ways to bar sex offenders from living in public housing in the future. The new ordinance will be phased in over the next twelve months as leases are renewed.
Information courtesy of NBC 4 News Los Angeles, June 28, 2005.

Buyers Prefer Amenities Over Space
According the National Association of Home Builders, amenities are more important than additional space when it comes to selecting a home. The NAHB poll found that buyers favored walk-in pantries, kitchen islands and bathroom linen closets. In addition, higher ceilings (9 ft. instead of 8 ft.) were preferred. As for home exteriors, brick is the most popular with 45 percent of buyers favoring it.

San Diego Owners Pay Penalty for Substandard Housing
Two property owners were ordered to pay $22,000 to settle a complaint about illegal housing at their property in the Logan Heights neighborhood of San Diego. The "homes" were converted from storage space and were rented out for $250-$650 a month to low-income renters. The illegal units had inadequate light and ventilation, blocked emergency exits, pervasive unpermitted plumbing, mechanical, electrical and structural work that overwhelmed even experienced building inspectors and code inspectors. If the owners fail to pay the specified civil penalties, an additional $43,000 in fines may be imposed. The renovation and rehabilitation of the properties is underway and all the residents have been relocated.
Information courtesy of KGTV San Diego, June 22, 2004.

Terror Suspect Targeted Apartments
According to the Department of Justice, Jose Padilla a former Chicago gang member, is suspected of accepting an assignment from al-Qaeda leaders, to use natural gas to blow up high-rise apartment buildings. According to information released by the DOJ, Padilla and accomplice were supposed to rent out two apartments in a building, seal off all openings, turn on the gas and set timers to denote simultaneously. Possible sites for attacks have been identified as New York, Florida, Washington D.C., California, Chicago and Texas. Padilla had discretion as to which apartment buildings he would target. He had originally wanted to set off a "dirty bomb," but was persuaded to target apartments instead. Padilla was arrested two years ago by the federal government as an enemy combatant.
Information courtesy of the Associated Press, June 2, 2004.

Cause Evictions Approved by S.D. City Council
The San Diego City Council passed an ordinance on March 16th that requires landlords to give a cause for evicting tenants that have inhabited their properties for more than 2 or more years. The new ordinance will affect mainly month-to-month leases and will give landlords a list of acceptable reasons for evicting tenants including failure to pay rent, illegal activities and creating a nuisance. Landlords could also evict tenants if they plan to live in the residence themselves. Under the old law landlords did not need to tell a tenant why he/she was being evicted. Proponents of the law said that it would protect tenants' rights against unjust evictions and would make it easier for families to stay in place in a tight and often costly rental market. Opponents of the law, including the San Diego Apartment Association, fear that it will make it more difficult to get rid of "bad" tenants, pit residents against owners and make evictions more costly, which would ultimately raise rents. In addition, it places the "burden of proof" on the owner if the resident decides to contest the eviction in court. Criminal activities can sometimes be difficult to prove - especially since other residents may feel intimidated when asked to testify against a "bad" resident. San Diego is one of two cities in Southern California that requires "just cause" evictions without also having rental control ordinances.
Information courtesy of the San Diego Union Tribune, March 17, 2004 and the Apartment Owners Association of Southern California.

Rents Rise During First Quarter of 2004
Apartment rental rates saw on average a modest gain during the first quarter despite a decline in the demand for rent housing. Southern California saw the greatest increases with 6.2 percent for Riverside-San Bernardino, and 4 percent for Los Angles and Orange County. San Diego had a 4 percent increase to an average of $1,187 per rental unit. Only three western markets saw a rent decrease: Portland, San Francisco Bay and Salt Lake City.
Information Courtesy of the San Diego Union Tribune, May 14, 2004.

Playing It Safe
According to Multifamily Executive February 2004, here are five things you can do to show residents that their safety is a priority:

1. Have multiple windows facing the street, common areas and entryways. This increases the probability that residents are looking out over these areas. Criminals are less likely to commit crimes where they can be seen.
2. Slow exit and entry points. Criminals look for easy access and quick escape routes. Speed bumps, curving driveways and gated communities can all act as deterrents; however, they won't keep out a determined individual.
3. Appropriate lighting. Communities and parking lots should be well lit; however, the lighting should not blind residents. You don't want a resident to be in the light while a criminal is able to hide. Trees near buildings should also have light shining on or through them.
4. Maintain your grounds. A well-maintained community sends the message that management is active and involved. In addition, landscaping should never obscure the line-of-sight or create hiding places (this includes walls).
5. Locks and doors. Make sure that all locks and doors are in good working order. Blind corners and sharp recesses in the hallways should be avoided. Use mirrors to help residents see around corners. Change the locks when a resident moves out or has keys stolen.

New Jersey Lawmakers Seek to Nullify Pet Rules
A bill under consideration by the New Jersey legislature would prevent owners from prohibiting pets at their properties. Current law allows owners to decide whether to allow pets at their buildings. Under the bill, pets are defined as dogs, cats, mice, birds, rabbits, guinea pigs and ferrets. Cats and dogs would have to be either spayed or neutered unless a veterinarian certifies that the animal is exempt. The bill has received mixed reactions. Many opponents of the bill don't want to deal with the additional mess, expense and noise that can be caused by animals on the property. Although a provision of the bill allows landlords to evict residents whose pets become a nuisance, experts have noted that the courts are usually friendly towards animals. Residents are also concerned about increased rents due to pet damages and "nuisance" animals. It also makes it more difficult for owners to control under what terms they will accept animals at their property. The bill is applauded by pet lovers and animal advocates who say that it will make it easier to find housing and will cut down on the number of homeless pets. The bill is also supposed to prevent discrimination against pet owners based on the landlord's past bad experiences.
Information courtesy of nj.com, April 2004.

California Owner Not Liable for Dog Attack
A California court of appeals found that a property owner was not liable for a pit bull dog attack on a minor visitor to the property. Under the original 1993 lease agreement the residents were allowed to keep a Springer spaniel. In 1994 the dog died and several months later the residents acquired a Dalmatian and a pit bull. The owner was unaware of the death of the original dog and the acquisition of the new ones. The residents testified that the owner never saw the dogs when he made occasional visits to the front of the property. In 2001, when a child visited the property, he was severely bitten by the pit bull. The guardian of the boy sued the owner for damages. The judge ruled that unless the owner was aware that his residents were keeping a potentially dangerous animal on the property or was aware that the animal had attacked others in the past; he was not liable for the attack. The owner was unable to take any measures to prevent a foreseeable attack because he was unaware of the dog's existence.
Information courtesy of the San Diego Union-Tribune, April 23, 2004.

Older Adults Highest at Risk for Fire Casualties
Data from several federal fire agencies indicates that older adults are more likely to die or become injured in a fire than the rest of the population. In 1998, there were 2,550 adults (age 65 or older) that were injured and 1,035 were killed. These injuries predominately occur in the home and fire and burns are considered one of the leading causes of death among older Americans. This trend is expected to increase as the baby boomers age. The primary risk factors for the elderly are diminishing physical and mental capabilities. Most injuries and deaths occur when seniors try to put out the fire or are unable to escape. According to the U.S. Fire Administration, adults in the 65-74-age range are 1.6 times more likely to perish in a fire. Adults over age 85 are nearly five times more likely to perish in a fire that the general population.

Rental Housing Trends
Studies and experience suggest the economic soundness of a community is best served by balancing the housing stock between renters and owners. Communities that limit or exclude renters risk their economic prosperity according to the National Multi Housing Council. The National Association of Home Builders predicts that there will be a net increase of 1.2 million foreign-born U.S. residents every year between 2002 and 2012. According to Census data the number of expected immigrant was underestimated in the late 1990s making multifamily housing absorption rates and starts stronger than expected. According to the NMHC:

• 32% of recent immigrants (arriving in the past 10 years) are homeowners.
• 43% of recent immigrants rent apartments and 25% rent single-family homes.
• Recent immigrants made up 50% of the employment increase in the United States between 1990 and 2000.
• Between the years 2000 and 2002 employment among U.S.-born workers declined by more than 850,000 while employment of recent immigrants increased by 1.2 million.

Worst May Be Over for Apartment Market
The National Multi Housing Council's quarterly report for January 2004, "Survey of Apartment Market Conditions," indicated that the respondents saw improving market conditions in all four areas of measurement for the first time in five years. The increased demand for apartments may be due to the lower unemployment rate. More jobs tend to generate an increased demand for housing. The email survey was conducted January 19-25 among CEOs and senior apartment directors that are on the NMHC board of directors.
Information courtesy of the National Multi Housing Council.

Paying Rent by Credit Card Rewards Owners & Residents
The option to pay by credit or debit card instead of check on the first of the month is translating into lower vacancies, 72 percent quicker payment processing and 20 percent fewer delinquent payments. In addition, both Visa and American Express offer programs that allow residents who pay by credit card to earn "points" which can be redeemed for rewards.
Information courtesy of the San Diego Union-Tribune, "Paying Your Rent by Credit Card Can Bring Rewards," January 11, 2003.

Fifteen Percent of New Homes Have a Construction Defect
150,000 out of a million new homes built last year had some sort of construction defect according to Consumer Reports. The most common problems were foundation and water intrusion, which can lead to a variety of other problems including: mold, rot, staining and cracked walls (inner and outer). The magazine said that the number of defects was due to high construction because of the housing shortage and not enough skilled laborers.
Information courtesy of the San Diego Union-Tribune, December 21, 2003.

Common Area Laundry Rooms May Reduce Water Use
A study by the National Research Center, Inc. found that common area laundry rooms may conserve more water that in-unit washing machines. Residents with in-unit washers used 227 gallons of water per week compared to the 69 gallons used per resident that did laundry in a common area. In-unit washers also result in up to 5 times more energy used.
Information courtesy of the Journal of Property Management November/December 2003.

New Laws Governing California HOAs to Take Effect in January
Beginning in January 2004, several new bills passed by the California state legislature will affect how Homeowners Associations do business. The new legislation includes:

• Assembly Bill 1525 which states that HOA rules can't prohibit the posting of non-commercial flags, banners, signs or posters as long as the displays don't threaten public safety or violate local, state or federal laws.
• Assembly Bill 104 requires HOAs make their financial records and meeting minutes available to homeowners to inspect and copy.
• Assembly Bill 512, in part, establishes valid operating rules for HOAs and dictates that members will be notified of proposed rule changes and that procedures are established for reversing a rule.

Don't Use American Flag to Advertise
Patriotic emblems and logos are a very popular way to advertise. However, it is important to take local and federal laws banning the disrespectful use of the American flag into account. The federal flag code bans the use of the image of the American flag in advertising in "any manner whatsoever." This means that you should not print or show pictures of the flag in any of your community's advertising or marketing materials. Also avoid using the flag or flagpole to advertise; or putting the image of the flag on flyers or anything else that is meant to be used temporarily and thrown away. You can use an image that resembles or suggests the flag. Other patriotic imagery is okay, but avoid using government buildings so that it doesn't look like the government endorses your community. Be careful that your wording doesn't suggest that only people or certain nationalities or backgrounds are welcome. Improper use of the American flag can result in fines and jail time in 35 states and the District of Columbia.

Apartment Occupancy Rates Increase In the West
There was an upswing in the apartment occupancy rates in the Western United States during the third quarter of 2003. According to RealFacts 22 of 25 major rental markets saw and increase in occupancy rates. Seventeen of these areas saw an increase of more than 1 percentage point. The strongest rate increases were in Boise, Idaho and Austin Texas (3 percent), followed by Oklahoma City (2.7 percent) and San Diego (2.6 percent). While an upswing in the market is good news for owners - especially those wishing to raise the rents if a trend is established - its bad news for some renters. The National Low Income Housing Coalition reported that its getting harder for tenants in San Diego County where a worker must earn $22.60 an hour to afford the median rent of $1,175 on a two-bedroom apartment.
Information courtesy of the San Diego Union Tribune and RealFacts.

Class-Action Lawsuit Authorized Against Nation's Largest Landlord
A Florida judge certified a state class-action lawsuit against the Chicago-based Equity Residential Properties Trust. The suit alleges that the company overcharged young consumers and collected millions of dollars in illegal fees. It claims that the company charges Florida tenants three month's rent for terminating their leases early or failing to notify the company that they are not renewing their lease. Equity Residential spokesman Marty McKenna said the company planned to appeal. McKenna said. "We remain confident that our leasing practices with be vindicated."

Fireproofing Your Home
The second week of October was designated Fire Prevention Week in memory of the Great Chicago Fire, which had occurred 54 years earlier, in 1925. The fire killed 300 people and left 100,000 homeless. The National Fire Protection Association has the following tips for fire safety in homes and businesses:

• Check smoke alarms regularly and replace the batteries at least twice a year at the beginning and end of daylight savings time. There should be at least one smoke alarm on each floor located near the bedrooms.
• Make an escape plan that includes alternate escape routes.
• Install carbon monoxide detectors and check fuel burning appliances (dryers, heaters, ovens, stoves, fireplaces, etc.) for leaks.

Some Turnover is Controllable
According to a recent SatisFacts survey, seven of the top ten reasons residents leave and 15 of the top twenty reasons residents leave are controllable by the onsite property management team. Seven of the top ten reasons are directly related to the staff's performance - particularly its responsiveness. 56 percent of residents say that they are likely to renew and 89 percent would recommend their community to someone else. Here are the reasons why residents may look for somewhere else to live:

1. Buying a Home 24.3%
2. Relocation 17.5%
3. Rent Increase 6.9%
4. Rent-to-Value 6.0%
5. Moving Home 4.6%
6. Office Responsive 3.4%
7. Neighbors 3.1%
8. Office Work Quality 2.8%
9. Service Response Time 2.7%
10. Community Safety 2.7%
11. Maintenance - Quality 2.6 %
12. Office Courtesy 2.6%
13. Need Different Size Apt. 2.3%
14. Found a Better Deal 2.3%
15. Neighborhood Safety 2.1%
16. Community Cleanliness 1.9%
17. Safety Gate 1.9%
18. Community Parking 1.5%
19. Apartment Condition 1.4%
20. Can't Afford 1.3

Finding a Former Resident
Occasionally, a former resident will leave no forwarding address (especially if there is money owed). Here are some things you can do to increase your chances of finding a skip and collecting your money:

• During the application process require that the application and includes at least two references and an emergency contact.
• Verify employment information and all phone numbers to ensure that they're accurate.
• Make sure that all responsible parties submit an application and sign the lease.
• Update contact and employment information whenever a lease renewal is signed.
• Be specific about what any charges are for.
• Collect on accounts in a timely fashion. The longer you wait, the easier it is for a debtor to skip.
• Don't discuss the debt or imply that you are trying to collect a debt. There are strict federal laws governing skip tracing.
• Use public records databases - they often contain valuable information for finding the debtor.

Methamphetamine Abuse Increases
The number of meth labs seized by the Drug Enforcement Agency and local jurisdictions has increased. Meth is popular because is it inexpensive, easy to manufacture and made from everyday household products. The most popular locations for meth labs include multi-family apartment homes. These labs are hazardous because of the chemical danger (second-degree burns, brain damage, death), increased crime and possible explosions. Property managers and owners that find meth labs on their property are advised to back away, don't touch any electrical switches or devices while nearby, stay outside (to avoid contaminating other areas) and to call police immediately from a cell phone or neighbor's phone. Because of the hazardous chemicals involved; professional clean up is recommended. Here are some signs that there might be a meth lab on your property according to the KCI.org (formerly the Koch Crime Institute:

• Unusual, strong odors such as cat urine, ether, ammonia, acetone or other chemicals.
• Homes with blacked out windows or windows covered in foil.
• Residents that pay in cash.
• Lots of visitors at unusual times.
• Excessive trash including large amounts of anti-freeze containers, lantern fuel cans, red chemically stained coffee filters, drain cleaner, duct tape, and empty cold medicine bottles and pill packages.
• Unusual amounts of clear glass containers brought into the home.
• Extra amounts of household items typically used in the manufacture of meth such as glass or amber cookware, hot plates, measuring cups, glass or plastic jugs, turkey basters, funnels, duct tape, funnels, coffee filters, paper towels, gasoline cans, duct tape, clamps and aluminum foil.
• Red-stained walls, stripped batteries, and blue, corroded valves on propane cylinders.

Landscaping
The right landscaping can do a lot for a property from increasing its curb appeal to increasing the actual property value. The right landscaping should increase a property's value enough for the owner to recoup 100 to 200 percent of the initial investment. Popular landscaping features include the use of native plants (less expensive to maintain), water features (ponds, waterfalls, water gardens), patio areas and outdoor cooking areas. New landscaping should not strain a property's budget. If a new project is large, it is better to do the project in phases than to overextend materials and resources to get it "done all at once" which can result in shoddy work and drainage problems. Whether it is old or new landscaping, the important thing to do is make sure than a property's grounds are well maintained and attractive.
Information courtesy of the San Diego County Real Estate Executive, June/July 2003.

Management Company Sued for Firecracker Injury
A Wisconsin management company is being sued by a worker for a cleaning service that was injured by a firecracker while cleaning a vacant apartment. The worker's hand was blown off when she used what looked like a candle to light the pilot light on the stove. She found the firecracker in one of the cabinets. Testimony showed that the manager had inspected the apartment before sending the worker to clean it, but had missed the firecracker. The manager did not remember checking inside the cabinets despite being prompted to on the move-in checklist.

Owner May be Liable for Resident's Murder
The wife of a murdered resident claiming that her landlord had failed to "provide adequate security" sued an owner of a Maryland apartment community. The resident was killed during a break-in. Although the case was initially dismissed because a lower court found that the owner had no duty other than to provide a working light, an appellate court ruled that the case must go to trial to decide whether the owner was negligent. Under Maryland law, the landlord has a duty to protect the resident from foreseeable injury caused by a known, dangerous condition that the owner can control. There was evidence the outdoor lighting in common area outside the murdered resident's apartment hadn't been working for a while and that there were numerous other break-ins at the community.

When Things Go Wrong
It's impossible to keep all of your customers happy all of the time. Whether it's a mistake a time member made, a misunderstanding or circumstances beyond your control; unhappy customers happen. The good news is that customers that have a good experience when complaining to a company will probably remain loyal to your company. With that in mind, here are ten steps that the Better Business Bureau recommends for customer service providers when dealing with an upset customer.

1. Listen carefully to the customer without interrupting or looking uninterested.
2. Remain calm - even if the customer is "pushing your buttons." Don't take what an angry customer says personally.
3. Acknowledge that you listened by paraphrasing what the customer say and asking for clarification on the things you didn't understand.
4. Ask questions that will help you fully understand the problem. Don't be accusatory.
5. Validate the customer. Use phrases such as "I think I understand why you feel this way." You don't need to agree with the customer to emphasize with him/her.
6. Apologize when the customer is justified (about two-thirds of the time).
7. When the customer is wrong, investigate the facts in front of him/her. This may also be caused because you don't understand the customer's explanation. You can also educate the customer without being patronizing.
8. If you have wronged the customer, make it right immediately, happily and generously.
9. When the customer is unreasonable, ask what he/she would like you to do to make it right. If the request is reasonable, comply. If it isn't, let the customer know what you can do.
10. Thank the customer. Make sure the interaction ends on a positive note.

Migration Patterns Shift
"Go West, young man" may be a thing of the past. Reports released by the Census Bureau indicate that the country's migration patterns are shifting away from the traditional East-to-West patterns. California and New York, traditional centers for migrants, have more people moving out than in. While this is nothing new for New York (where this pattern has been going on for three decades), California has been losing population for about 5 years. Most of those leaving are staying relatively close (as opposed to moving cross-country) California's migrants are dispersing into the other western states. New York's are heading to the suburbs in New Jersey and Connecticut; the retirees are heading south. Other census data indicates that more people are heading away from urban centers such as Atlanta and Denver and moving into the suburbs.
Information courtesy of USA Today, August, 14 2003.

Public Housing Able to Take Extraordinary Measures to Combat Crime
The Supreme Court ruled that crime-ridden public housing neighbors can designate sidewalks and streets as private property and can prosecute unauthorized visitors for trespassing. A man was arrested for trespassing when he went to drop off some diapers at the home where his mother and two children live. The man had been arrested previously for trespassing. Because of increasing crime, the neighborhood had signs warning about trespassing. The court decided to uphold the prosecution because the man had not been engaged in any free speech activities that are protected under the First Amendment, however, the case was left open to other constitutional challenges.

Delay in Enforcement Voids No-Pets Clause.
It's a good idea to act immediately when a resident has an unauthorized pet. If you wait too long he/she may be entitled to keep the pet anyway. In New York City, the "Pet Law" gives renters the right to keep a pet if the owner or manager fails within three months to enforce a "no-pets" provision despite a resident's "open and notorious harboring" of the animal. The law also applies to condo owners. The exception to the rule is when the resident lies about the pet or claims it's only "temporary." The law also does not apply when a resident has kept pets for more than six years.

Leasing Professionals Don't Measure Up
According to a Call Source survey of 2400 leasing calls nationwide, the majority of leasing professionals aren't asking potential residents some vital questions. The study found that:

• 45% obtained the caller's name.
• 19% got the caller's phone number.
• 5% obtained an address, fax number or e-mail address.
• 73% asked when the apartment was needed.
• 24 % asked about pets.
• 30% asked how the caller had heard about the community.
• 12% asked the reason for moving.
• 23% determined the caller's specific wants and needs.
• 33% asked for an appointment.
• 10% set an appointment.
• 18% ensured that the customer had clear directions.

Perceived Value Affects Turnover
According to Apartment Professional 60 percent of resident turnover is preventable. The reason why - existing residents tend to feel that the value of their apartment homes is not in line with the rent increase. This holds especially true when new residents have upgrades and nicer apartments than the existing residents at similar rental rates. Some of the magazine's suggestions are offering rewards along with the increase, finding ways to save the resident money, surveys and keeping track of why residents are leaving.

Turn Complainers to Loyal Customers
Treating an unhappy customer well can convert him/her into one of your most loyal customers. Here are a few tips for serving an unhappy customer:

• Give the customer a chance to blow off some steam. Listen attentively and position yourself in a non-confrontational manner.
• Ask questions. This lets the customer know that you care about him/her and allows you to clarify the issue.
• Put the customer in the driver's seat by suggesting a solution and an alternative. Or let the customer come up with a solution. Most customers will come up with a reasonable solution.
• Finish the deal. Make sure the issue is resolved to the customer's satisfaction and apologize for any inconvenience.

When the No-Pets Clause Doesn't Apply
The no-pets clause may not apply anytime:

• The resident can prove the animal in necessary for health reasons.
• The owner/management verbally agreed to let the renter keep a pet despite the lease.
• The owner/management tries to add or enforce a "no-pets" clause after knowing about but not objecting to a pet for a significant period of time.

More Investors Are Choosing Single Family Homes
The unsteady stock market has more investors becoming landlords. According to a recent study, six percent of all home sales are being bought as second or third homes. The National Association of Realtors found that 1 in 4 of today's second home buyers are acquiring the property purely as an investment. The upswing is attributed to: Low start-up costs compared to other business opportunities; strong, steady appreciation; Steady demand; and a wide selection of properties to choose from.
Some information courtesy of the San Diego Union Tribune, The Housing Scene, by Lew Sichelman, December 22, 2002.

Dealing with an Unhappy Resident
Helping an unhappy resident can be a challenge -- especially when the leasing office is busy. Here are a few things that can make the process a little smoother and get rave reviews from a formerly unsatisfied customer.

• Listen carefully and take detailed notes.
• Hold the conversation privately where you won't be interrupted.
• Keep cool.
• Ask if there is anything else the resident would like to tell you.
• Thank the resident for his/her comments and restate the problem.
• Apologize if any mistakes were made.
• Find one or two points you can agree on.
• Ask the customer what he/she would like done to solve the problem.
• Promise to do everything necessary to resolve the concern.
• "Under Promise, Over Deliver."
• Follow up, follow through.

Owner Has to Return Resident's Security Deposit
An appeals court ruled that a Minnesota owner had to return a resident's security deposit. The owner claimed it was entitled to the deposit because the resident's cats had damaged the carpet and the resident had failed to pay a month's rent. The court found that the owner had no creditable evidence that the cats had damaged the carpet especially since an inspection report by the owner's caretaker said that the apartment was fine after the resident had moved out. The court did however order the resident to pay the owed rent. (Dahlberg vs. Dube)

Citizen Engagement
A new survey by the Pew Partnership for Civic Change refutes the notion that Americans are disengaged from their communities and unwilling to get involved in civic activities. According to the poll, 77 percent of Americans feel connected to their communities; 78 percent have donated to local charities, religious organizations and other nonprofits; 77 percent have helped a neighbor; and 111 million Americans volunteered for a community effort in the last 12 months. NMHC previously published research on the topic showing that contrary to the conventional wisdom that homeowners make better citizens, apartment residents are more socially engaged and similarly attached to their communities and religious organizations. The Pew study, Ready, Willing & Able: Citizens Working for Change, is available at www.pew-partnership.org. NMHC's June 25, 1999 Research Notes on the topic is available on NMHC's web site at www.nmhc.org/media/rentvsown/neighbors/default.html.
*Courtesy of National Multi Housing Council/National Apartment Association Washington Update April 20, 2001

Crime
According to FBI statistics 3 out of 4 homes will be burglarized within the next 20 years. The average loss is $1000, not including the damage from entry.
Information Courtesy of the San Diego Union Tribune, "Be Safe; Save Money," December 23, 2001.

Real Estate 101
The San Diego Union Tribune has released its top ten list of real estate books of 2001. The books covered a variety of topics including buying, selling, homebuilding and property management. The top ten were chosen from among over 52 books. The following made the list:

1. "Home Buying for Dummies, Second Edition," by Eric Tyson and Ray Brown
2. "Real Estate A La Carte," by Julie Garton-Good
3. "How to Sell Your Home Without a Broker, Third Edition," by Bill Carey, Chantal Howell Carey and Suzanne Kiffmann
4. "How to Get the Best Home Loan, Second Edition," by W. Frazier Bell
5. "Find It, Buy It, Fix It, Second Edition," by Robert Irwin
6. "Investing in Real Estate, Third Edition," by Andrew McLean and Gary W. Eldred
7. "Property Management for Dummies," by Robert Griswold
8. "Flipping Properties" by William Bronchick and Robert Dahlstorm
9. "Neighbor Law, Fourth Edition," by Cora Jordan
10. "Landlording, Ninth Editon," by Leigh Robertson

Apartment Performance
Despite the recent economic slowdown, analysts continue to favor the apartment sector. In a report titled A Case for Multifamily Investment: Outlook 2001, The Shoptaw Group, LLC says that "judging by current indicators, an environment of unusual opportunities is likely to continue for the multifamily segment over the next 10 years. Strong demographic, financial and lifestyle trends should continue to propel the performance of multifamily investments well into the future." The report ranks individual markets according to economic growth; economic diversity and volatility; demographic and lifestyle dynamics; "new economy" employment; and apartment demand/supply dynamics. (For a copy of the report, contact Bill W. Shoptaw at bshoptaw@sgatl.com or 404-504-8650.)
*Courtesy of National Multi Housing Council/National Apartment Association Washington Update April 6, 2001

Apartment Homes
An Integra Realty Advisors (IRR) report (Viewpoint 2001) observes that "optimism has again favored (the apartment) sector, and it is expected to last into the next decade." The report cites exceptionally favorable demographics, the limited threat of overbuilding, and the exceptional lifestyle package offered by apartment living. IRR's top 10 cities for apartment acquisition and construction are: San Diego; Atlanta; Sacramento; Tampa; Phoenix; Austin; Houston; Denver; Minneapolis; and Washington, DC. (See www.irr.com/marketperspectives/apartment_market.htm.) Apartments were recently voted the best-performing property sector for 2001 in a GlobeSt.com survey of 1,500 commercial real estate executives, and the National Association of Realtors (NAR) Commercial Real Estate Quarterly says that "we expect a slight slowdown in all of the sectors, except for multifamily housing, which will remain fairly stable." Based on rent growth, NAR says the hottest markets are expected to be Boston; Los Angeles; Detroit; Minneapolis; and San Francisco.
*Courtesy of National Multi Housing Council/National Apartment Association Washington Update April 6, 2001

ADA Accommodation
An apartment owner is not required to make reasonable accommodations for a disabled tenant whose uncontrollable emotional outbursts pose a direct threat to other residents, according to a South Dakota Supreme Court ruling. (Arnold Murray Construction Co. v. Hicks, No. 24418, 2001, S. D. Lexis 7, January 10, 2001.) The court upheld a trial court ruling that there was no reasonable accommodation that would diminish the risk. The court also rejected the resident's argument that he was denied due process because he was not properly notified that his behavior was a threat to other residents.
*Courtesy of National Multi Housing Council/National Apartment Association Washington Update April 6, 2001

Resident Retention
Good maintenance is the most important element in attracting and retaining apartment residents, according to a recent survey by Clearwater Research, Inc. Survey respondents rated "appearance, condition and upkeep" higher than rent, location, security and amenities as the most important factor in selecting an apartment community. "Reliability of appliances" was the highest rated factor affecting lease renewal. The survey, conducted for Corrigo Incorporated, concludes that roughly 80 percent of residents feel maintenance is important to their lease renewal decision, but that only 69 percent are satisfied with the level of service they actually receive. The complete survey is available at www.corrigo.com.
*Courtesy of National Multi Housing Council/National Apartment Association Washington Update April 20, 2001

Apartment Market Conditions
The latest results of the Federal Deposit Insurance Corporation's (FDIC) Survey of Quarterly Real Estate Trends indicate that although real estate market conditions remained generally favorable during the second half of 2000, there was some deterioration, especially in the single-family and retail sectors. Fully 75 percent of the survey respondents reported no change in the multifamily sector; 12 percent saw better conditions, and 13 percent saw worse conditions. Thirty percent reported supply conditions as tight, compared to 20 percent who said markets had too much supply. Respondents cited Atlanta, Charlotte, Indianapolis, Kansas City, Orlando, Phoenix, Raleigh, Sioux Falls and Tulsa as metro areas with excess supply. The majority of respondents said multifamily vacancy rates and construction levels were unchanged. In contrast, 42 percent said single-family construction was less robust than six months ago, and the pace of single-family home sales slowed for existing (36 percent) and new homes (38 percent). The full report is available at www.fdic.gov/bank/analytical/survey/index.html.
*Courtesy of National Multi Housing Council/National Apartment Association Property Management Update March 23, 2001

Regulation "Y"
Lobbying activity on a Federal Reserve and the U.S. Treasury proposal that would permit banks to perform real estate brokerage services under Regulation Y is heating up. Nine real estate organizations, led by the National Association of Realtors (NAR) sent a letter to members of Congress urging them to disapprove the measure. That letter cites a recent NAR poll indicating that two-thirds of consumers oppose allowing banks to enter the real estate brokerage and management business. In response, five banking industry associations presented their own letter to Congress expressing their support for the proposal. NAA/NMHC are not members of either coalition, but have discussed the issue with members at recent meetings and will be submitting separate comments on the proposed rule by the May 1 deadline.
*Courtesy of National Multi Housing Council/National Apartment Association Washington Update March 23, 2001

People With Pets
A new Internet-based directory of pet-friendly apartments has been established www.peoplewithpets.com. The site currently serves 34 cities and tracks communities that accept cats and dogs. The service is free to residents; apartment owners pay a monthly fee for a listing.
*Courtesy of National Multi Housing Council/National Apartment Association Washington Update December 15, 2000

Top Tech Picks
Ten U.S. cities are among the top 20 in the world best poised to capitalize on the economic benefits of the new Internet economy, according to a presentation by real estate futurist Stephen Roulac at the Association of Foreign Investors in Real Estate's annual meeting. These cities are characterized by: a sense of place; beauty in the natural environment; a transportation system that does not rely on a car to survive; and a 24-hour city which has mixed uses, mixed activity, diversity, and which emphasizes entertainment and strong learning conducive to creativity. According to Roulac, "technology advances allow people to move wherever they want, and those cities which have the ability to attract that talent by being compelling places to live, shop, learn and play, will reap the rewards of the New Economy. Roulac's U.S. picks (with their rankings among cities worldwide) are: New York (1); San Jose (3); San Francisco (6); Los Angeles (9); Boston (11); Seattle (12); Atlanta (13); Chicago (15); Miami (19); and Washington, DC (20). The remaining top 10 cities, include: Tokyo (2); London (4); Hong Kong (5); Frankfurt am Main (7); Singapore (8); and Amsterdam (10).
*Courtesy of National Multi Housing Council/National Apartment Association Washington Update January 5, 2001

Apartment Markets
Atlanta retains the lead in multifamily permits for the 12 months ending September 30, 2000, with 17,226 units approved, according to M/PF Research. This is a 66.1 percent increase over the city's permit levels a year ago. Rounding out the top five apartment permit issuers are Phoenix (10,531 permits, up 7.8 percent); Orlando (9,958, down 8.6 percent); Washington, DC (9,594, up 14.2 percent); and Seattle (9,443, down 4.9 percent). Other significant gainers include Denver (up 60.9 percent); Los Angeles (up 54.3 percent); and Austin (up 42.9 percent). Looking at job growth, New York takes first place, with 101,000 new jobs added between September 1999 and September 2000, or a 2.4 percent growth rate. Second-place Los Angeles created 86,200 new jobs (up 2.3 percent), followed by Washington, DC (78,500, up 3.0 percent); Dallas (74,800, up 3.9 percent); and Phoenix (67,700, up 4.4 percent). For more information, visit M/PF's web site at www.mpfresearch.com.
*Courtesy of National Multi Housing Council/National Apartment Association Washington Update December 1, 2000

Rent Control
NAA/NMHC testified before the District of Columbia's City Council on October 11 urging the Council not to extend the city's soon-to-expire "rent control laws for another five years. In our testimony, we stressed the broad academic and political consensus that rent control is poor affordable housing policy. Our complete testimony is available at www.nmhc.org/media/default.html under "Rent Control."
*Courtesy of National Multi Housing Council/National Apartment Association Washington Update December 15, 2000

Renter's Insurance
Less than 30 percent of renters have renters insurance according to the Insurance Information Institute, even though the National Association of Insurance Commissioners says the policy costs just $169 a year.
*Courtesy of National Multi Housing Council/National Apartment Association Washington Update November 17, 2000

Smart Growth
An overwhelming majority (78 percent) of Americans support policies to curb suburban sprawl, according to a new survey by Smart Growth America. Seventy-seven percent would prefer to see neighborhoods made more pedestrian-friendly; 66 percent think at least 15 percent of the space in new housing developments should be reserved for affordable housing; and 60 percent support more funding for mass transit, even if it reduces highway construction funding. A recent survey by the National Association of Realtors (NAR) also finds widespread support (82 percent of respondents) for preserving open space, but the NAR survey finds more ambivalence about how to best achieve smart growth. Only 53 percent of NAR's respondents support raising taxes to preserve land, and 73 percent say they would not consider purchasing a house on a smaller lot closer to other houses. Higher density housing becomes more acceptable when it includes parks, trees, sidewalks and more attractive homes.
*Courtesy of National Multi Housing Council/National Apartment Association Washington Update November 17, 2000

Regional Growth
Americans as a whole may be concerned about sprawl, but many individuals are still opting for suburban locations. According to new statistics from the U.S. Census Bureau, city populations are growing, but the suburbs are still growing faster. Nationally, cities grew four percent between April 1990 and July 1999, while the regions outside those cities grew 14.1 percent. Las Vegas was the fastest growing metro area, with a 62 percent population gain, followed by Laredo, TX (45 percent); McAllen, TX (39.5); Boise, ID (37.9); and Naples, FL (36.1).
*Courtesy of National Multi Housing Council/National Apartment Association Washington Update November 17, 2000

Presidential Candidates on Affordable Housing
In campaign speeches this month, Presidential hopeful George W. Bush announced key elements of his housing policy platform. Bush says he would allocate $1 billion over five years for lenders to help low-income households buy homes. He would also allow Section 8 recipients to use voucher funds for a house down payment. A second initiative would create $1.7 billion in new federal tax credits for developers to pay for half of the costs to build or rehab for-sale houses in distressed neighborhoods. Vice President Gore has not made any official housing policy announcements. However, in the past he too has been supportive of homeownership and expansion of the low-income housing tax credit (LIHTC).

Even without a formal housing policy announcement from Vice President Gore, voters believe, by a 3-to-2 margin, that he will be more sensitive to the nation's affordable housing crisis. According to Novogradac & Company's third annual affordable housing survey, 48 percent of the 800 voters surveyed said that Gore would make more of an effort to solve the problem once elected, compared to 32 percent for Bush.
*Courtesy of National Multi Housing Council/National Apartment Association Washington Update May 5, 2000

Benefits of Renting
NAA/NMHC Senior Vice President for Government Affairs, Clarine Nardi Riddle, recently released a press statement noting that a one-dimensional housing policy focused exclusively on homeownership disadvantages both communities and individuals. Riddle noted that the government's pro-ownership rhetoric typically goes way beyond the facts, overstating the benefits of ownership and ignoring important drawbacks. The statement explained that contrary to conventional wisdom; academic studies refute the notion that homeowners are better citizens than renters.

Furthermore, a homeownership-based housing policy ignores the many smart growth advantages apartments offer communities in controlling sprawl and preserving open space. Regarding the supposed individual financial benefits of ownership, research suggests that close to half of all homebuyers would save money by renting comparable housing. And perhaps most importantly, the preference for homeownership is not universal, with almost a third of renters in a recent national survey reporting that they prefer to rent, even though they could afford to buy.

Despite the lack of clear evidence of striking community and national advantages from ownership, Riddle said that federal tax breaks afforded owners in 1999 through deductibility of mortgage interest and property tax totaled $78 billion, more than the combined federal spending on education, roads, mass transit and national parks. The statement concludes that "homeownership is not a panacea for all that ails individuals and their communities" and that "becoming a nation almost exclusively of homeowners could well be an unfortunate turn for many of those homeowners, for local communities and for the national economy." The complete statement is available on NMHC's Web site at www.nmhc.org/media/press/releases/000420.html.
*Courtesy of National Multi Housing Council/National Apartment Association Washington Update May 5, 2000

Rent Control
On April 13, 2000, Iowa Governor Tom Vilsack (D) signed into law the Rent Control Preemption Act (SF 428). The new law, which takes effect July 1, 2000, prohibits cities and counties from enacting, maintaining or enforcing an ordinance or resolution that controls the amount of rent charged for leasing private commercial or residential property. NAA/NMHC led the coalition that lobbied for this measure in 1999 and 2000. With this new measure, 34 states now preempt the imposition of rent control by local jurisdictions.
*Courtesy of National Multi Housing Council/National Apartment Association Washington Update April 21, 2000

American Metropolis
The 10 most likely influences on the American metropolis for the next 50 years, according to a report by the Fannie Mae Foundation, include: (1) growing disparities of wealth; (2) suburban political majority; (3) aging of the baby boomers; (4) perpetual "underclass" in central cities and inner-ring suburbs; (5) smart growth; (6) Internet; (7) deterioration of the "first-ring" post-1945 suburbs; (8) shrinking household size; (9) expanded superhighway system of "outer beltways" to serve new edge cities; and (10) racial integration as part of the increasing diversity in cities and suburbs.
*Courtesy of National Multi Housing Council/National Apartment Association Washington Update January 28, 2000

Apartment Homes Get Bigger Apartment homes grew in size during the first three quarters of 1999, according to Housing Economics (December 1999). The average floor space in apartments rose three percent to 1,105 square feet, up from 1,068 the same period one year earlier. Fifty-three percent of apartments completed in the first three quarters had two or more bathrooms, up from 49 percent in the corresponding period of 1998. The share of the units with two or more bedrooms rose one percent to 69 percent.
*Courtesy of National Multi Housing Council/National Apartment Association Washington Update January 28, 2000

Rent Control
Forbes Magazine (December 27, 1999) lists rent control as one of the 10 worst economic ideas of the past 100 years.
*Courtesy of National Multi Housing Council/National Apartment Association Washington Update

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