The Advocate for aug Berkeley’s Rental Housing Providers 2019 Founded 1980 • Charter Member, California Rental Housing Association 2041 Bancroft Way, Suite 203, Berkeley, CA • www.bpoa.org Rentopia Kathryn Snowden, President, BPOA
Welcome to the brave new world of state-and-local rent control. Not only are most rental units subject to the Berkeley Rent Ordinance, but those that are not may soon fall under State of California rent caps. There has been zero thought given to establishing a new form of rent control that’s fair. By “fair” here, I mean defining a new social compact for rental housing that protects owners as well as tenants. Given that the clock is being turned back, it’s time to push hard for fairness. There is no reason to go back to the real damage that a rigid (and even more corrupt) form of rent control can cause. Seeing tenants as de-facto owners Here is rent control as the Rent Stabilization Board (RSB) defines it: “The ordinance falls within Berkeley’s tradi- tion of demanding equal rights for all, providing tenants in good standing with a level of security in their homes that is nearly equivalent to that available to homeowners with fixed-rate mortgages. Over the years, Berkeley voters have reaffirmed support for protecting tenants from arbitrary eviction, but the RSB has consistently sought to treat tenants as de-facto owners. Did Berkeley voters actually decide to overlook the time, money, and risk of owning real property? They did not. But the RSB acts as if they did. If we accept RSB’s premise of “near equivalency,” it follows that residential renters in Berkeley should share the burden that owners currently bear for increased taxes, fees, repairs, and upgrades. And when individual, means- tested tenants are exempted, the community, not the owner, should make up the difference. That’s what “fair” actually means. What does fair rent control look like? Here’s an outline of a new social compact for rental housing in Berkeley. The aim is to balance the claims of own- ers and renters, recognizing that if the latter are “near-equivalent” owners, they should share in the risks and cost that owning residential rental properties involves. Here’s an outline: 1. A system of publicly-funded vouchers would support vulnerable and low-income tenants. Their plight is the responsibility of the entire community, as with welfare in general. continued on page 10 Members Meeting Inside this Issue Saturday, August 3rd Editorial...... Page 2 Legal & Property Management Coalition Corner...... Page 3 Considerations in Berkeley Berkeley to Remove Gendered Language...... Page 4 Berlin’s Senate Mandates Rent Freeze...... Page 5 Come learn about the importance of Oakland to Require Section 8 Consideration...Page 6 legal considerations & how best to Housing Crisis: 8 Astonishing Numbers...... Page 7 manage your property Local Rent Controls Coming to More Cities.....Page 8 Quote of the Month...... Page 8 ST JOHN’S PRESBYTERIAN CHURCH Monthly Meeting Info...... Page 9 2727 COLLEGE AVENUE IN BERKELEY 94705 Special Meeting for NEW MEMBERS!...... Page 12 SEE PAGE 9 FOR DETAILS Services & Businesses...... Page 13 THEY SITS BY THE FIRE NEVERMORE Albert Sukoff, Editor BPOA Monthly is a regular publication of the Berkeley likes to be the first to stir the pot. First city to do this; first city to do Berkeley Property Owners Association, a trade that. Depending on your point of view, this is pioneering leadership — a service association dedicated to assisting rental hous- to less enlightened world — or it is just the silliness of political iconoclasts. The ing providers with upkeep and management City added two more firsts this summer. of residential rental property and coping with Berkeley’s rent law. The Berkeley City Council has passed an Ordinance to rework the Municipal 2019 Code so as to make it gender-neutral. (See article on page four in this issue of Board of Directors the newsletter.) With all due respect to those effected by gender-specific labels, Kathy Snowden, President and acknowledging the power of language, this is a roll-your-eyes moment. It is Sid Lakireddy, Treasurer PC over the top. It will create confusion as it assumes changes to the language Jon Vicars, Vice President which are not universally or commonly recognized. George Soengen Richard Genirberg, Secretary Hubris aside, the Berkeley City Council is not the English counterpart to the Jim Smith Academie francaise which has been the official body governing French since Will Flynn 1635. The Council has decided that they and them are the gender-neutral ver- Paul Tuleja sions of he and she and him and her. This would be fine were it not that, in Albert Sukoff English as we know it, they/them are plural he/she and him/her are singular. It is Mark Tarses not hard to imagine not only innocuous confusion but also serious issues that Editor: could arise in the legal interpretation of the code. I remember an article from Albert Sukoff 30 years ago that suggested a less confusing tey/tem as gender-neutral singular Advisor: Michael St. John pronouns. And then there is landlord, a clear vestige of a bygone era if ever there was one. Our Office Location: We are not lords of the land, especially in regulation-laden California. We argu- 2041 Bancroft Way, Suite 203 ably do not even have the benefits of ownership explicit in the US Constitution. Berkeley, CA 94704 The term could indeed use an update. The BPOA has been using Rental Housing Phone 510.525.3666 Provider for decades. This is gender-neutral and descriptive. If it were left to Email [email protected] the Rent Board to pick a term, we would probably become Heartless Rapacious Website http://www.bpoa.org Capitalists. It probably doesn’t matter, however, because the rent control law is a Office Hours: voter-passed measure and cannot be changed by the Council or the Rent Board Open Monday – Friday, with dedicated one- without submitting the changes to the voters. on-one appointments for your convenience. The other first-of-its-kind measure passed by the Berkeley City Council is to ban natural gas starting January 1, 2020. Twenty years ago, the ecologically About the Newsletter preferred home heating fuel in this climate was, yes, natural gas. Anything that Our articles are contributed on a volunteer generates heat — stoves, furnaces, etc. — uses a lot of electricity and gas was basis by members and other interested parties, although we do accept paid advertising. We then considered the preferable fuel. Whether or not electricity should really be are always happy to include material submit- the preferred power source depends of course on the source of the power. Same ted by members and welcome suggestions on with electric cars. Good idea if the electricity comes from benign generation how to improve our publication. processes; not so much if it comes from dirty plants. Several years ago, the City All articles in this publication represent the banned all wood-burning fireplaces. Now one can no longer install gas fireplac- author’s viewpoint and not necessarily the es. The combination of these two prohibitions: no more fireplaces in Berkeley. position of our organization. One could still put a video monitor in a nicely tiled box, capped with a mantle Direct comments and material to our and then run an endless loop of a roaring fire. It’s just not quite the same. Bancroft Way office or to [email protected] The point here is not that Berkeley should or should not pass groundbreaking laws, be they worthy or silly. The point is that neither Berkeley nor its kindred cities should be passing legislation the purpose of which goes way beyond the continued on page 10 august 2019 2 BPOA MONTHLY By Krista Gulbransen, Executive Director The Berkeley Rental Housing Coalition (BRHC) is the political and legal voice of Berkeley’s rental housing providers.
As the Berkeley Rental Housing Coalition celebrates its fourth us this is more than fixing a problem, it’s a preventative mea- year of existence, we wanted to give you an update on what’s sure for any owner that has their property in a Living Trust. happened policy-wise in the last year or so. Last year was Policies That “Might Have Been” quieter on the local front, because many of the housing activ- ists were hard at work trying to pass Proposition 10. But now, The “First in Time” Ordinance things are heating up once more. There is an increased focus This proposal would have required owners to rent to the on passing policies that “protect” tenants, likely in response first tenant that submitted a completed application and to not being able to repeal Costa Hawkins. Here’s a look at met the owner’s requirements. Advocates argued that it was what’s new, what could have been and what’s upcoming. the only way certain populations would have a “fair shot” at securing housing. Seattle was the first to attempt the New Policies ordinance in 2017, but after a lawsuit launched by property Rent Control and Eviction Protection Exemptions owners and the Pacific Legal Foundation, the court struck for Accessory Dwelling Units the ordinance down. Once the Ordinance was put before In the last election, we were successful in extending exemp- officials in Berkeley, we were able to point to the Seattle tions to owner-occupied parcels with an ADU. As long as an outcome, thus keeping the legislation at bay. owner of record lives in one of the units, the other unit can Policies Coming Down the Pike claim the exemptions. It is effective for any tenancy created The “Fair Chance” Ordinance after November 8, 2018. We knew that in order to encour- This policy would prohibit rental housing providers from age the development of new ADU’s, it was important to get asking about a prospective tenant’s criminal background. the legislation passed. This means no questions about past convictions on the Golden Duplex Exemptions for Living Trusts rental application, and no background checks during the Berkeley’s small owner legislation — known as the “Golden final tenant check. Seattle is the only other city in the U.S. Duplex rule” — provides rent control and eviction protec- to implement such a policy. The Washington Rental Hous- tion exemptions for owner-occupied parcels where the ing Association engaged the Pacific Legal Foundation to owner of record on December 31, 1979, lived on the parcel launch a lawsuit against the ordinance in 2018. They have as their primary residence. Although the legislation is a gained solid ground on the legal front, paving the way to a bit confusing, it’s an important regulation that recognizes possible win. We expect this could impact the final decision the unique relationship between owner and tenant when in Berkeley, although it is just in the beginning stages of an owner lives on the property. In 2019, some owners of consideration and drafting. We know this could significant- Golden Duplexes (who also had their property in a Living ly impact smaller owners who live on the same property as Trust), were sent a letter by the Rent Stabilization Board their tenants. stating that their exemptions no longer qualified because a The Tenant Opportunity to Purchase Act “Living Trust is not a natural person.” The Rent Board was Already implemented in San Francisco (known there as interpreting a Living Trust to be a corporation. We immedi- the Community Opportunity to Purchase Act), TOPA is ately launched a public relations campaign to pressure the Berkeley’s attempt to take up to 50% of housing, “off the Rent Stabilization Board commissioners to make a change speculative market.” The Act would be triggered for any to their interpretation, thus resuming Living Trust exemp- property sold (including single family homes) in which a tions under the Golden Duplex rule. As of the publication tenant resides at time of sale. It would give the tenant the of this newsletter, we are still awaiting the Rent Board’s first right of refusal for the sale by requiring the owner to passage of the modified regulation. It’s important to note provide the tenant with a purchase price prior to going out that we anticipated the Rent Board may also use this Living on the open market. Tenants would have up to 120 days to Trust interpretation to block owner move-in evictions by a secure financing. They would also have the option to sign Living Trust or ADU exemptions under the new ADU law. For continued on page 11 august 2019 3 BPOA MONTHLY Ashley McBride, San Francisco Chronicle, July 17, 2019 In an effort to be more inclusive, the Berkeley City Council sexual male — in many ways these issues don’t affect me. adopted an ordinance Tuesday to replace gendered language I’ve gotten to know so many people for whom these issues in the city’s municipal code with neutral terms. are important, largely through the campus community.” Personal pronouns like “she,” “he,” “her” and “him” will change to “they” and “them.” Gendered Terms Commonly Non-Gendered Term Found in Existing Code Replacement “Fireman” or “firewoman” will become “firefighter.” Bondsman Bonds-person “Manpower” will be eschewed for “human effort” or “work- force,” while “maintenance hole” will replace “manhole.” Brother Sibling In total, more than two dozen commonly used terms will Chairman Chair, Chairperson be changed in the city code after the measure unanimously Craftsmen Craftspeople, artisans passed. Fireman, Firewoman, Firefighter, firefighters “Gender-neutral language creates a lot of room to acknowl- Firemen, Firewomen edge that it’s not just men running the country,” said coun- Fraternal Social cil member Rigel Robinson, who sponsored the ordinance. Heirs Beneficiaries Robinson submitted a request in March to the city man- Journeyman Journey ager for a plan to adjust Berkeley’s code to reflect gender- Maiden Family neutral language and add space on city forms for preferred Male and Femaie People of different genders pronouns. The council voted to approve the city manager’s Manhole Maintenance Hole draft to amend the code, while the process for updating Manmade Human-made,artificial, forms is still ongoing, Robinson said. manufactured, machine- Critics have suggested the council should spend time on made, synthetic other things, Robinson said, but he pointed to the other Manpower Human effort items he considered important on Tuesday’s agenda, which included an ordinance to make Berkeley the first city in the Manpower workforce country to prohibit natural gas infrastructure in new build- Master Captain, skipper, pilot, safety ings. officer, central “We are capable of doing more than one thing at a time,” Men and women people Robinson said. “We’re not just looking at symbolic things.” Men or women a single gender The measure follows a move in February that allowed city Ombudsman Ombuds, investigating official employees to opt for preferred pronouns on their name Patrolmen Patrol, guards badges. Policeman, Policemen, police officer, police officers The change in updating city forms will cost $600, officials Policewoman, Policewomen said. Pregnant woman/women pregnant employess A list of the words to be changed will be posted at public Repairman repairs, repairer libraries and the council chambers within 15 days of adop- Salesman salesperson, salespeople tion. The ordinance does not include a timeline for when Sister sibling the change must happen. Sorority, Fraternity Collegiate greek system Robinson, 23, was elected in November as the youngest city Residence council member in Berkeley history. He graduated from UC Sportsman Hunters Berkeley last year and credits his college experience with broadening his perspective on gender issues. The masculine pronoun Words referring to a specific includes the feminine gender may be extended to “Awareness and issues of gender identity are often particu- any other gender larly visible on college campuses, but it’s important that it doesn’t stay there,” Robinson said. “I’m a cisgender hetero- Watchmen Guards august 2019 4 BPOA MONTHLY Dr Rainer Zitelmann, fee.org, Sunday, July 14, 2019 In June, Berlin’s Senate approved the main components of a rent freeze in the German capital Germany’s publicly traded real estate companies (Deutsche gone as far as calling for a complete ban on private property Wohnen, Vonovia, ADO, and others) have come under owners renting out their apartments. massive pressure in recent weeks. Many of their stockhold- State-Owned Housing and Rent Freezes Are ers come from the United States and Great Britain, and the Nothing New in Germany companies’ prospects are not looking good right now. This In June, Berlin’s Senate approved the main components is because the kinds of ideas traditionally associated with of a rent freeze in the German capital. According to the planned economies are gaining more and more support all Senate’s plans, rents in Berlin will be frozen for five years. over Germany. Landlords will also be forced to lower in-place rents if they Substantial numbers of people have moved to Germany’s exceed a certain, as yet undefined, level. major cities, including people from Germany’s eastern Advocates of such central economic planning react sen- states who have been moving to cities in the west, along sitively when they are reminded that it has already been with people from other European countries, and finally, tried in East Germany (the GDR) with catastrophic results. immigrants who arrived in Germany under Angela Merkel’s An earlier rent freeze was approved in Germany on April generous refugee policy. Clearly, the supply of housing has 20, 1936, as a gift from the National Socialist Party to the failed to keep pace with these significant developments, and citizens of Germany on Adolf Hitler’s 47th birthday. The this is largely because construction approval processes are National Socialists’ rent cap was adopted into the GDR’s so- so long-winded and the latest environmental regulations cialist law by Price Regulation No. 415 of May 6, 1955, and have made building prohibitively expensive. it remained in force until the collapse of the GDR in 1989. ”We Want to Drive Investors Out of Our City” The GDR’s housing sector was defined by state ownership In Germany’s capital, Berlin, where rents have experienced and the rent freeze. Although rents in the GDR were very a particularly sharp rise, it now takes 12 years to draft and low, citizens had to wait many years to be allocated one approve a zoning plan, which in many cases is a prerequi- of the country’s highly coveted prefabricated apartments. site for the development of new dwellings. The number of When the GDR collapsed, much of the stock of period zoning plans drawn up under the aegis of Berlin’s Senator apartments in pre-war, multi-family buildings in Leipzig, for Urban Development, Katrin Lompscher, has halved. In Dresden, East Berlin, Erfurt, and other East German cities 1981, the senator joined the communist SED, East Ger- was in an extremely run-down condition: 40 percent of many’s former ruling party. Today, she is responsible for apartment buildings were in a state of significant disrepair, housing policy in the German capital. and 11 percent were completely uninhabitable. A total of An initiative in Berlin calling for the expropriation of 200 historic town centers in eastern Germany were on the private real estate companies has collected three times as brink of collapse. As late as 1989, 65 percent of the apart- many signatures as it needed to initiate a petition for a ments in the GDR were still heated by coal ovens. One in referendum. The initiative’s spokesman stated openly: “We four didn’t even have a toilet. After reunification, a massive want to drive investors out of our city.” The initiative is de- tax program was launched to tackle the severe shortage of manding the expropriation of all private real estate compa- suitable housing in East Germany and East Berlin. A total nies that own more than 3,000 apartments in Berlin. of 838,638 new apartments were built-at a cost of 84 billion According to the initiative’s organizers, real estate compa- euros. nies should be compensated but at far below the market The Housing Industry Is Not Defending Itself value of their real estate-discounts of around 70 percent Berliners are not alone in believing that the housing market have been mentioned. In effect, this would amount to has failed and the only solution is massive state interven- expropriation without compensation since the companies’ tion. In 2015, Germany’s federal government introduced a bank liabilities are larger than the amounts they would “rent brake” (Mietpreisbremse) to prohibit landlords from receive in compensation. Kevin Kühnert, chairman of the charging rents of more than 10 percent above an official youth organization of the center-left SPD (which is also the benchmark-the local comparative rent-for existing junior coalition partner in Angela Merkel’s government) has continued on page 8 august 2019 5 BPOA MONTHLY A similar statewide bill is also progressing in Sacramento Jail time if I don’t take Section 8 tenants? It is pos- ordinance to guarantee this protection for low-income sible under new regulations in Oakland, landlords face Oakland residents regardless of the outcome of the tough consequences for discriminating against ap- state bill. plicants who receive Section 8 housing assistance. The Under the new Oakland ordinance, aggrieved current City Attorney is now authorized to bring civil actions or prospective tenants and non-profits can bring civil for restitution, litigation and investigation costs, and actions against landlords for restitution and/or mon- attorney’s fees. The District Attorney will be able to etary recovery of up to three times the greater of: impose a criminal infraction for first-time violations actual damages, one month’s rent for the unit; or the and a misdemeanor for multiple violations, which HUD Small Area Fair Market Rent for the unit. Own- could result in jail time. ers may also be liable for litigation costs, attorney’s In July, in response to concerns that the Bay Area’s fees, and punitive damages. The ordinance does not housing shortage is making it harder for Section 8 restrict landlords’ ability to evaluate prospective ten- voucher holders to compete in the rental-applicant ants based on criteria unrelated to receipt of housing pool, The Oakland City Council passed the Equitable assistance. Presumably, this means other financial- Access to Low-Income Housing (EQUAL) Ordinance health indicators such as credit score requirements will this week which will prohibit landlords from: still be permitted. Rental units that are occupied by or • Refusing to rent to persons who receive housing share a bathroom or kitchen with an owner or their assistance family member will be exempt. We still recommend • Applying tenant selection standards that disadvan- that you conduct thorough tenant screening that is in tage recipients of housing assistance compliance with Fair Housing Laws. • Altering the terms of rental agreements; or limit- While it remains to be seen exactly how reporting and ing facilities, services, or repairs for recipients of verification of such violations will play out, now is the housing assistance time for all Oakland landlords to make sure their appli- cation processes are squeaky clean. If you’ve ever used • Making statements that indicate preference or ECS phrases in your rental ads like “No Section 8,” you will prejudice based on a prospective tenant’s receipt of Group, Inc. want to stop that practice immediately! You may also housing assistance Group, Inc. want to consider a standardized method for applicant ECSThe ordinance is similar to a statewide bill that has selection when multiple qualified parties apply, such as been progressing through Sacramento as well, SB-329, giving priority based on when applications are received ECS which if it passes, would preempt this local measure. with a timestamp (e.g. within an email program) to be Group, Inc. The Oakland City Council voted to pass their own able to defend your applicant selection process.
SHAWN M. RAU, CIEC, CAC Consulting Microbiologist Beacon Properties ECS Senior Industrial Hygienist Group, Inc. 707.732.3370 Careful, Conscientious [email protected] Property Management Indoor EnvIronmEntal and WatEr QualIty InvEstIgatIons Carlon Tanner, Broker Water Damage - Sewer Damage 466 40th Street, Oakland CA 94609 ECS Industrial Hygiene – Asbestos, Lead, Methamphetamine Water Quality – Cooling Towers, Fountians, Central Systems 510-428-1864 Group, Inc. Microbiology - Bacteria, Mold
august 2019 6 BPOA MONTHLY $117,400 $400/month That is what is considered “low income” for a family of That’s what a new kind of landlord is charging to rent four in Marin, San Mateo and San Francisco counties, out RV’s and park on the streets of Palo Alto. These according to the Department of Housing and Urban landlords buy old, used-up RVs and rent them to Development. The amount, which is nearly twice the homeless people or low-income workers, who then live national household median income, jumped 10 per- on the streets. cent from the previous year. In a report by the Califor- 46 percent nia Association of Realtors, they found a prospective The percentage of Bay Area residents that have con- buyer would need an income of nearly $350,000 to sidered leaving the Bay Area, according to a Bay Area buy in San Francisco or San Mateo counties. Council survey released in June. The housing crisis was $1.23 million cited as the top reason why so many desire to leave for That is what a teardown in Fremont sold for in March, the fourth year in a row. 2018. Despite a listing that read “Beyond FIXER, 48 Home is CONDEMNED, Enter at your own RISK,” The number of Bay Area zip codes that are on a list of the home sold above its $1 million asking price. And the 100 most expensive in the U.S. Five of the 10 most it wasn’t the only uninhabitable property that fetched expensive zip codes were in Silicon Valley, including a high price tag, with a burned out home site in San Atherton (94027), which topped the list with a $6.7 Jose selling for $930,000 and a burned out Mountain million median sale price. View property selling for $1.6 million, above its $1.48 90 minutes million asking price. Length of time commuting one-way that constitutes 22 years a “super commute.” Modesto and Stockton, which is The amount of time it would take for a median-income just beyond the Bay Area, lead the country in super family ($118,000) to save up for a 20% down payment commutes, according to an analysis by Apartment List. on a median-priced $1.2 million home in Silicon Val- Lengthy commutes stretching several hours have even ley, according to Zillow. A generation ago, a median- gone up among Bay Area residents, with San Francisco income San Jose family only needed 10.6 years to save having the 6th highest percentage of super commuters up for a down payment. in the U.S. 3.5 : 1 The ratio of new jobs to housing units in the Bay Area, the MTC reported in September. Much of the housing crunch has been blamed on housing construction not keeping up with job creation. ❖ ST. JOHN & ASSOCIATES, LLC Property Management Consultants Rent Control . Condominium Conversion . Real Estate Planning Michael St. John, Ph.D., Principal Consultant Andrew W. Fingado, Associate Consultant Marti Dion, Associate Consultant www.stjohnandassociates.net 2115 West Street, Berkeley, CA 94702 (510) 845-8928 . North Coast Office (707) 937-3711 august 2019 7 BPOA MONTHLY continued from page 5 apartments. However, the law has been fundamentally announced that his company will “voluntarily” limit the ineffective: It featured many vague legal formulations and extent of future rent increases. As of July 1, Deutsche triggered a substantial wave of lawsuits. In an attempt to Wohnen will forgo rent increases if they will result in address the rent brake’s weaknesses, legislators tightened the new, higher rent exceeding 30 percent of the ten- the law effective January 1, 2019. They are now discuss- ant household’s net income. At the same time, Zahn has ing further and even more drastic changes. suggested that income-dependent rent increases should Germany’s largest housing companies are clearly intimi- be anchored in state law by creating a “solidarity model,” dated and have reacted by trying to appease their anti- which would cover landlords, tenants, and politicians. capitalist attackers. Unfortunately, the companies’ op- It is an absurd model: it would require a gigantic tenant ponents have only been strengthened in their belief that database and for every single tenant to disclose their they are on the right track. The situation has become so income and assets. tense that Michael Zahn, the CEO of Deutsche Wohnen, With proposals like these, the housing industry is sending a leading property company, can only leave his apartment two signals: First, that it has willingly accepted the role if he is surrounded by bodyguards. The aggressive cam- of scapegoat for the housing market’s problems. Second, paign against Deutsche Wohnen has included some of the that it has swallowed its left-wing opponents’ argument company’s vehicles being “torched. that free-market economics does not work in the housing Following months of intense criticism, Zahn recently sector.
More Local Rent Controls Come to California Cities Alameda: Following on the heels of a just-cause ordinance, Alameda added permanent rent control to their city’s tenant protections. Inglewood: The Inglewood City Council to pass permanent rent control, just-cause and tenant relocation ordi- nances. Rents are capped at 5% per year, and tenant relocation is triggered at 4%. Culver City: Culver City has passed a 1-year rent freeze while it studies whether to move forward with a more permanent rent control ordinance. Hayward: The Hayward City Council passed an ordinance for mandatory rent review (mediation) and anti-dis- crimination protections for renters using housing vouchers. Hayward expanded just-cause protections earlier this year. Long Beach: The Long Beach City Council passed a tenant relocation ordinance that will require payments of up to $4500 when a landlord increases rents more than 10% or the renter is evicted without cause. San Leandro: The San Leandro City Council adopted a rent stabilization and just-cause ordinance for mobile home parks.
QUOTE OF THE MONTH
It is the highest impertinence in kings and ministers to pretend to watch over the economy of private people. – Adam Smith
august 2019 8 BPOA MONTHLY Saturday, August 3rd, 2019 This month’s topic is Legal & Property Management Considerations in Berkeley With Daniel Bornstein, Law Offices of Bornstein & Bornstein Come hear from an expert who knows both the legal aspect of running a rental property, as well as the ins and outs of property management. Learn more about: • Tips and tools that will make you a better owner • How to manage difficult issues with your tenants • How to run your business as efficiently as possible As ever, it’s fun, it’s free and you always learn something. Join us at 9:30 am for coffee, pastries and networking! We’ll see you there! • 9:30am Refreshments • 10:00am Meeting & Workshop St. John’s Presbyterian Church, 2727 College Avenue, Berkeley, 94705 Parking available in the church lot
Coming Next Month: Special Evening Meeting Wednesday, September 25th, 6pm Marijuana, Emotional Support Animals & Other Tenant Challenges With Steve Williams, Fried & Williams Law Firm
Special insurance programs for landlords and apartment owners with multiple highly competitive carriers.
• Independent • Professional • Friendly • Knowledgeable •
Call or email Henry Yang : (925) 247-4356 [email protected] Lic#0G94464
august 2019 9 BPOA MONTHLY continued from page 1
2. Annually means test tenants who receive vouchers or Fairness also means that the RSB would end as we know it. It who qualify for currently “automatic” protections from would be absorbed into appropriate City departments which rent increases. As it stands, rent control is a lottery and would take over enforcement and hearings. Registration fees the winners are free to abuse their good luck by sublet- would reflect actual costs, and staff count would reflect le- ting or hanging on to units for convenience rather than gitimate activities and services. Surpluses would no longer necessity. (Note that Costa-Hawkins, if the RSB en- flow to patronage. The “deep state” of the RSB, with its mani- forced it, would put an end to most of these abuses.) fest abuses, would go. The city would actually be run by its 3. Annual increases that reflect actual increases in costs and elected leaders. fees, the need to build up reserves, and the legitimate The interests of owners and tenants would be represented right for owners to make a return on their investment by an appointed commission. It would be truly representa- of time and money. tive, not the closed-circuit circus of the current RSB. Com- 4. Passthroughs to tenants to repay owners over time for missioners would not be paid. mandatory life-safety and seismic upgrades and repairs, One more thing: Noni Richen, head of the Small Property and part of property and other taxes if they are sub- Owners of San Francisco Institute (SPOSFI) has written a stantially hiked. great article on the role of community owners like you in 5. Equal standards for owner and renter residency require- providing affordable housing. Ms. Richen has a fan in San ments, to end the gaming of the system by exploitative Francisco Mayor London Breed, which our local politicians renters, especially so-called master tenants. Lease may want to note. I will ask her if we can share her article agreements should be enforceable and tenants should on the BPOA website. See you soon at our August meeting. not enjoy rights that are denied to homeowners.
continued from page 2 municipal purview. Wood burning fireplaces may be overly we are served by a single regional housing market and rent polluting and gas may be the wrong fuel for the future. control at the local level is lunacy. There are also whole-state However, Berkeley is less than two percent of the Bay Area. issues in which local jurisdictions are inappropriately in- What Berkeley does not solve a problem; it only sets an volved; individual city policies on immigration, for example. example at best. (Given the City’s reputation, this is as The State of California could and should do a much bet- likely to have the opposite as the desired reaction.) If we are ter job of defining which government functions pertain denied fireplaces and the rest of the metropolitan area is to which government entities. There are areas of concern not so constrained, we alone are burdened, all for naught. which clearly are not local. Cities nevertheless getting The action is a gesture. If fireplaces are indeed a detriment involved in these areas leads to wasted time and fruitless to the environment, they should be regionally banned. activity, contradictory and conflicting policies and pro- For lack of any adequately empowered metropolitan au- grams, and expensive duplication of effort. They oughta get thority, the burden of a proper public policy in all matters their act together. regional falls to the State, The legislature has done a terrible job here. It is overgenerous in doling out power to the cities, Holl Law & Mediation refuses to establish regional meaningful controls and fails Benjamin J. Holl to deal with regional issues itself. Remember that all politi- Attorney / Mediator cal power is held by the State. Cities, counties and special districts only exist when and if the State endows them. *Real Estate * Landlord / Tenant * Litigation * Mediation Regional issues for which there is no regional policy or authority would include: Tel (415) 324-8860 environmental controls, traffic issues, public transporta- Email: [email protected] tion, mental health (read: homelessness), the Bay, building 2119 West St., Berkeley, CA 94702 codes, and of course, housing issues. To beat a dead horse, 369 Pine St. Suite 420, San Francisco, CA 94104 august 2019 10 BPOA MONTHLY continued from page 3 their rights over to a nonprofit housing organization who rent control or Just Cause. This will likely be a phased in would also be permitted 120 days to secure financing. Activ- program with a test for units that are not currently tenant- ists believe that by constricting the sale, they will be able to occupied so that the rent control or eviction protection transfer ownership of more housing to tenants, nonprofits exemptions do not impact sitting tenants. or land use organizations. We think it’s a constraint of sale These are just a few of the policies that Berkeley is consider- and an owner’s right to choose who they sell their property ing. But there are many more that impact the quality of life to. We await the details of the ordinance itself, in order to be in Berkeley, for both owners and tenants alike. For example, able to answer questions about how the program will work. the City Council is considering a comprehensive “RV Dwell- Illegal Unit/ADU Amnesty Program er” program which would allow for RVs to receive permits to In many cities like Berkeley, there, are a considerable park within all the neighborhoods of Berkeley, for up to two number of units that were built without city permits. In weeks. They would “distribute” the total number of permits Berkeley, illegal units are rent controlled, and their tenants over all Districts in Berkeley. There are many homeowners have eviction protections. But many owners avoid coming that are gravely concerned about issues of safety, health and forward to register with the Rent Board, for fear of being sanitation if this program were put in place. These are issues regulated. Cities like San Francisco, San Mateo, Santa Cruz that although as an organization we don’t cover directly, we and Los Angeles have tried amnesty programs to encourage support those homeowners and Berkeley voters who are these units to become legalized. In cities like San Mateo and trying to effect policy. This means there is reason for you to Santa Cruz, they have been successful. But San Francisco be aware and to communicate to your neighbors about is- and LA have not seen the same level of success. The differ- sues that effect their quality life. We are all in this together! ence between the cities? San Mateo and Santa Cruz do not This information is brought to you by me — the Executive Direc- have rent regulations, but San Francisco and LA do. We tor of the Berkeley Rental Housing Coalition (and BPOA). The want to encourage owners to come forward and make sure only way this information will keep coming to you is if you help their units meet the minimum health and safety standards, to financially support the BRHC.Please consider joining the but we are aware they are less likely to do so should their BRHC. Your BPOA membership is automatically included. unit come under regulation. We are currently negotiating If you are interested in lending your support so we may continue with elected officials to design a program that does not as a strong organization, please contact Krista Gulbransen, penalize owners for coming forward, by placing them under Executive Director at 510-304-3575 or [email protected].
1901 Harrison St., 14th Floor Fried Oakland, CA 94612 &Williamsj www.friedwilliams.com Attorneys at Law 510-625-0100 Real Estate Attorneys Defense of Tenant Lawsuits | Rent Board Hearings | Difficult Evictions | Mediation Services
Legal Excellence. Dedication to Clients.
august 2019 11 BPOA MONTHLY A SPECIAL MEETING FOR NEW MEMBERS! Wednesday, September 25, 3019 Rental Housing Provider 101: A Crash Course in Berkeley Rental Housing Regulations for New Members With Krista Gulbransen, BPOA & BRHC Executive Director Come meet other new members to learn more about what it means to be a landlord in Berkeley. We’ll send you off with a packet of good reference materials, as well as pro- vide opportunities to ask lots of questions. Learn about: • All you need to know about leases • How to have a good relationship with your tenants • Regulations that impact your day-to-day life as a rental housing provider Join us at 5:30 pm for drinks, nibbles and networking! Meeting 6:00 - 7:30pm St. John’s Presbyterian Church, 2727 College Avenue, Berkeley, 94705 Parking available in the church lot
august 2019 12 BPOA MONTHLY Legal Consultation and Representation for Landlords
Law Office of Michael M. Sims 2161 Shattuck Ave., Suite #232 Berkeley, CA 94704 Tel: (510) 848-6601
REAL ESTATE SERVICES P R E M I U M PROPERTY MANAGEMENT LEASING PROPERTIES INVESTMENTS CONSULTING SALES & BROKERAGE DEVELOPMENT
SAM SOROKIN 6522 TELEGRAPH AVENUE BROKER & PARTNER OAKLAND, CA 94609
CRAIG BECKERMAN 5 1 0 . 5 9 4 . 0 7 9 4 M A I N
BROKER & PARTNER WWW.PREMIUMPD.COM
CA BRE LICENSE #01120349 BAY AREA CONTRACT CARPETS
Tax planning and preparation for landlords 747 Independent Road, Oakland (510) 613-0300 Lance W. Lee Carpet & Linoleum Certified Public Accountant Residential & Commercial Serving the Bay area since 1971 www.bayareacontractcarpets.com 1300 Clay Street, Suite 600 510-564-7203 Contractor’s License Number 714467 Oakland, CA 94612 [email protected] www.lwleecpa.com
august 2019 13 BPOA MONTHLY
Jon Vicars Realtor Over 25 years selling Berkeley Apartments BPOA member since 1982 (510) 898-1995
Multifamily sales SPECIALIST Sell your apartment property for optimal value. Use our proven services. lems commitment to excellence.
Joey Wang 3542Fruitvale Ave. #316 510.592.4244 02 [email protected] CA RE Lic. 01890931
201 N. Civic Dr. #130 , Walnut Creek, CA www.kwcommercial.com
august 2019 14 BPOA MONTHLY ST. JOHN & ASSOCIATES, LLC Property Management Consultants Rent Control . Condominium Conversion . Real Estate Planning Michael St. John, Ph.D., Principal Consultant CalBRE # 01185967 Andrew W. Fingado, Associate Consultant Marti Dion, Associate Consultant www.stjohnandassociates.net 2115 West Street, Berkeley, CA 94702 (510) 845-8928 . North Coast Office (707) 937-3711
Beacon Properties Careful, Conscientious Property Management Carlon Tanner, Broker 466 40th Street, Oakland CA 94609 510-428-1864
JUST FIX IT Expert Computer Support & Repair Website Design & Development Site Administration Michael Ross 510.549.9912 [email protected] Twenty Years of Just Making Things Work
Products and services advertised herein are not warranted, expressly or impliedly by the publisher or by its board of directors. The publisher takes no responsibility should the quality of the products and services not be as advertised.
Contributions or gifts to BPOA are not tax deductible as charitable contributions for federal or state income tax purposes, but are generally deductible as trade or business expenses. Please note that no portion of payments to BPOA are made to lobbying efforts or campaign committees. For further information, please consult a tax professional or the Internal Revenue code.
…nor shall private property be taken for public use, without just compensation. 5th Amendment, US Constitution august 2019 15 BPOA MONTHLY PRESORTED STANDARD US POSTAGE PAID OAKLAND, CA 2041 Bancroft Way, Suite 203 Berkeley, CA 94704 • www.bpoa.org • [email protected] PERMIT #2508
Berkeley Property Owners Association Members Meeting Saturday, August 3rd 9:30am Refreshments • 10:00am Meeting Legal & Property Management Considerations in Berkeley with Daniel Bornstein, Law Offices of Bornstein & Bornstein Come learn about: • Tips and tools that will make you a better owner • How to manage difficult issues with your tenants • How to run your business as efficiently as possible
ST JOHN’S PRESBYTERIAN CHURCH 2727 COLLEGE AVENUE IN BERKELEY 94705 (Parking available in the church lot) SEE PAGE 9 FOR DETAILS