What the 2022 Federal Spending Package Means for the Multifamily Industry

Written by Apartment Management Magazine on . Posted in Blog

President Biden signed the federal omnibus legislation into law on March 15 that will allocate funding to various parts of the government. Each time a government spending bill is brought up, NMHC remains highly engaged because its passage – or lack thereof – determines the funding for several key Departments, Agencies and programs critical to our industry.

This year’s spending package includes 12 different bills that set forth $1.5 trillion in discretionary resources. Key highlights for our industry include:

NAA – Statement on FCC Policy

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The National Apartment Association and National Multifamily Housing Council Issue Joint Statement on the Federal Communications Commission’s New Multifamily Broadband Rule

The Federal Communications Commission (FCC) has issued a Report and Order and Declaratory Ruling for Improving Competitive Broadband Access to Multiple Tenant Environments.

The National Apartment Association (NAA) and the National Multifamily Housing Council (NMHC) are deeply disappointed in the Order and Ruling issued this week by the FCC.  The FCC claims its actions will increase competition, lower costs, and promote broadband in apartment buildings.

How Inflation Affects Multifamily: The Good, The Bad & The Uncertain In 2022

Written by Apartment Management Magazine on . Posted in Blog

Thinking about inflation? You’re not alone. According to Google Trends, searches for the word hit an all-time high in May 2021, returned to average in August and spiked again in December. As long as inflation is on everyone’s minds, we thought it would be helpful to do a deep dive into statistics provided by the Yardi Matrix U.S. Multifamily Outlook 2022.

Will inflation affect multifamily for better or for worse in 2022? Let’s look at the data to find out.

The good news about inflation

To understand how inflation has affected multifamily over the past year, we first need to look at this sector within the context of the overall economy. Since the Great Recession, federal interest rates have stayed near-zero. They rose slightly, starting in 2016, before sliding back to near-zero territory in response to COVID-19. In 2021 alone, inflation rose about 7%, the fastest rate since the 1980s. Between record-low interest rates and rising inflation, there have been concerns of an overheated economy that could cause inflation to get wildly out of control.

HELP STOP HIGHER TAXES IN CALIFORNIA!

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GIVES VOTERS THE FINAL SAY ON ANY NEW AND HIGHER TAXES!  California has some of the nation’s highest state income, sales and gas taxes as well as rising property and utility taxes. Yet still, the State Legislature has proposed billions in new taxes this year alone while local officials have enacted $8.8 billion in annual general and special taxes from 2010 to 2020.  It seems our state legislature and governor have a never ending appetite for more spending and never ending taxes and fees.

PLEASE!  Help Support the Taxpayer Protection and Government Accountability Act:  This proposed ballot initiative, if passed, increases voters’ voice on all statewide tax increases: The Act requires state legislation imposing any new or higher taxes to be approved by a majority of voters in a statewide election.  It also closes tax loopholes at the local level.  The Act will reinstate the two-thirds approval requirement for any new or higher “special taxes” proposed by initiative in a local election, while still maintaining the current majority vote requirement for general tax increases.  The measure is focused on returning control over tax increases to the hands of the voters while ensuring California can continue to address its most pressing issues.  Isn’t it about time?

Join the coalition and sign the petition to get this measure on the upcoming ballot using the following link: taxpayerprotection.com.  Help us gather enough signatures to get this important measure onto the ballot.

Housing Provider / Tenant Law “Q&A” With Kimball, Tirey & St. John

Written by Apartment Management Magazine on . Posted in Blog

By Ted Kimball, Esq., Partner, Kimball, Tirey & St. John LLP

  • Q: My tenants are asking me to accept a rent payment from their cousin. Do I have to take this payment?
  • A: Yes, a landlord is required to accept third party payments made on tenants’ behalf provided that the payment is accompanied by a statement that it is made on behalf of the named tenant and does not create a tenancy or grant any rights to the payee.
  • Q: My tenant moved in a few years ago with a roommate, and they paid the security deposit together.  One roommate moved out and another roommate moved in.  At that time, the rent was increased, and they paid some additional security deposit. Who is entitled to the security deposit when the unit is vacated?
  • A: You should make the check out to all of them unless you receive in writing from any one of them that they have relinquished all rights to the security deposit to the other tenants.

Dear Maintenance Men:

Written by Apartment Management Magazine on . Posted in Blog

By Jerry L’Ecuyer & Frank Alvarez

Dear Maintenance Men:

I have a toilet that runs every ten or twenty minutes.  I have replaced the fill valve, the flapper valve and I have even scrubbed under the rim!  In other words, all the items I can think of that are replaceable in the tank are new.  What else should I be looking at? 

Sam

Dear Sam:

You replaced all the easy ones!!  When all else fails on a toilet leak down issue; it is time to put on your rubber gloves and get an adjustable wrench.  Chances are the problem lies with the Flush Valve Seat.  The rubber flapper valve seals against the flush valve seat (the big hole at the bottom of the tank.) to either keep the water in the tank or let the water out of the tank.  The seat may have a burr, crack or calcium deposits that allow a small amount of water to seep past the rubber flush valve.  Sanding the seat to remove the burr or calcium deposit is a short-term solution and rarely solves the problem for long.  A permanent solution is to replace the flush valve. Start by turning off the water supply, completely empty the tank and remove the water line.  Remove the two or three bolts holding the tank to the toilet bowl.  Turn the tank upside down and remove the large nylon or brass nut that holds the flush valve to the tank. Install the new flush valve.  Be sure the tank bottom is clean and no debris gets between the new valve’s rubber gasket and the tank. Tighten the large nut on the outside of the tank and you are ready to reassemble the tank and bowl and put the toilet back into action.   When reassembling the tank to the bowl, install new rubber washers and bolts.  

Kay Properties & Investments, Which Operates an Online 1031 Exchange and Real Estate Investment Marketplace, Announces Another Record Year After Placing $610 Million of Equity from Accredited Investors in 2021

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This continued record growth represents a 49.5% percent increase over last year’s $408 million in equity placements

Year-End Highlights:

● Kay Places $610 Million of Equity Investments in 2021

● Kay Grows Its Fully Integrated Real Estate Team and Robust Online Real Estate Investment Platform

(Torrance, CA) Torrance, CA-based Kay Properties, which operates one of the nation’s largest 1031 exchange property and real estate investment marketplaces, announced today it had posted another record year after successfully placing $610 million in equity for accredited investors participating in 1031 exchanges and direct cash investments.

It’s Difficult to Prioritize Empathy When Managing At Scale. Here’s What You Can Do.

Written by Apartment Management Magazine on . Posted in Blog

By Marc Frenkiel

Property management is typically thought of as the operations that ensure real estate is maintained, both physically and financially. While this is undoubtedly the case, successful  property management companies know that there is also a more human aspect to it — and that incorporating empathy into property management leads to many desirable outcomes, such as renter satisfaction, stellar online reviews, positive word of mouth, and more renewals.

Empathy, defined as “the ability to understand and share the feelings of another,” is applicable to resident-property management relations when viewing it as one of service, rather than just management. Most good property managers do view their residents as “humans who live in homes,” rather than just “tenants who occupy units.” Through this lens, there’s a clear connection between property management and empathy. Residents want and deserve prompt service and kindness in their interactions with their property managers or landlords. 

The Mortgage Forbearance Program Has Ended, But What Does That Mean for Landlords

Written by Apartment Management Magazine on . Posted in Blog

By Nicole Seidner

With Omicron finally peaking, more mask mandates at their ends, and not to mention people’s wits, many are finally starting to ask: what about the forbearance programs? The mortgage forbearance program provided so much relief during the pandemic and many landlords relied on it while tenants couldn’t pay their rent. However, many tenants still cannot pay their rent. If the program ends before those same tenants find sturdy employment, so begs the question: what happens next?

All About Loan Forbearance

According to DS News, anywhere between 3.8 to 4.2 million homes were in forbearance last year, with the program expiring this year. Forbearance was the major step in helping COVID-affected homeowners avoid foreclosure during the pandemic, and with it out of the way, many still need help. According to Forbes Advisor, 151,153 people filed for foreclosures in 2021 and the number was higher in 2020.

Los Angeles County Extends the Eviction Moratorium Again

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By David Piotrowski, Law Offices of David Piotrowski

The “temporary” Los Angeles County eviction moratorium has been extended again and this time, many parts of the moratorium will remain in effect for all of 2022 and even into 2023! The Board of Supervisors has expanded the eviction moratorium and encouraged incorporated cities to create permanent rent control that would take over once the so-called “temporary” Los Angeles County eviction moratorium expires. The Board has created a three-phase plan to end the protections unless the Board decides to extend/modify the moratorium again in the future.

  • Where Does the Los Angeles County Eviction Moratorium Apply? Does Your Rental Property Fall Within its Jurisdiction?