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Los Angeles Apartment Owners & Friends


Wednesday, May 26, 2010

Renters Again Protest at City Council on May 26

A large, loud group of many of the same renters' advocates who were at the Friday meeting appeared and some spoke at Public Comment on May 26 and engaged in threats, accusations, condemnation and insults to members of the Council for not approving a rent freeze. The rationale was that they would all be homeless--along with countless elderly and children--on July 1, 2010. Of course, that date will come and go and it is doubtful that any of them will receive a rent increase that will cause them to not have a roof over their heads. All I could think was, I certainly hope these people are not truly representative of the renters in this city.

Two people were present to speak for the apartment owners, Bill Hooey, President of the Fair Housing Coalition and Phyllis Daugherty, a member of AAGLA. There was no scheduled item on the agenda, so all presentations took place in the two-minute Public Comment period near the beginning of the meeting. Council President Eric Garcetti wisely kept the wave of emotion by the renters dissipated by interjecting testimony of others, including those speaking for rental owners.

I would suggest everyone view the event on Friday (May 21) and today (May 26) by going to www.lacity.org and then down the home page to the Council meetings live. It will make you even more determined to have a voice. If you do not participate in shaping your future and these people are left to coerce and threaten without opposition, I guarantee you will not be able to survive as a rental-property owner in this city.

Chaos Ensues at Meeting: Daily News Letters for Wednesday, May 26, 2010

http://www.dailynews.com/opinions/ci_15161617

Chaos ensues at meeting

Re "Council balks at rent control moratorium" (May 22):

The unruly, threatening conduct by tenant representatives at the council meeting was much worse than just "several scuffles." It required numerous police officers and a prolonged recess of the council to restore order and safety. Council members experienced the type of reaction good landlords in Los Angeles risk constantly without the benefit of a security force or control of damage that may be done to their property. It demonstrates the sense of entitlement by many tenants that is driving responsible owners out of the city. Ten years ago, I started investing in Arizona rentals. The absence of rent control allows renters and landlords to negotiate with civility and respect, and properties can be maintained without oppressive local regulations and unpredictable cost increases.

PHYLLIS M. DAUGHERTY
Los Angeles

Sunday, May 23, 2010

OUR WORK HAS JUST BEGUN....The Next Meetings will be in the Los Angeles City Housing Committee and in the Planning Committee.

If you are not a member of the Apartment Association of Greater Los Angeles, Apartment Owners' Association, or The Fair Housing Coalition, consider joining one-- or more--in order to be an active voice in protecting your property interests in the City of Los Angeles.

Also, keep writing letters to Council President Garcetti, your Councilmember and ALWAYS send a copy (including reference to Council File No. 10-0613 in the subject line) to the City Clerk, 200 N. Spring Street, Los Angeles CA 90012, to be placed in the permanent file on this matter.

Council President Eric Garcetti and many of the City Council members are beginning to understand that rental owners are not the enemy of the city or of tenants; however, we are placed in the untenable situation of no longer being able to afford the restrictive rent-control provisions and maintain decent living conditions in our buildings. Our backs are against the wall, and we have no choice but to fight back.

Additionally, the Council had a chance to see first-hand what happens when some tenants don't get their way--a major act of civil disobedience erupted right in the Council chambers at the end of the meeting on Friday, May 21. Can they imagine what it is like for the individual property owner, or even a management company, to be dealing with people who resort to violent behavior when they are told "no"? Which member would like to face-to-face advise the tenants involved in that fiasco that they have broken rules which affect the health/safety of other tenants or that they will be receiving a minimal 3% rent increase in order to help the owner deal with huge increases in utilities and maintenance costs?

Bill Hooey, founder of The Fair Housing Coalition, put it very well. I will paraphrase his written statement to his members and supporters. There are some owners who call and say "thank you for all your efforts." There are some owners who join one of the apartment-owner groups and contribute financially although they cannot attend meetings. There are some who just sit back and let the rest of us fight the battle and then they enjoy the benefits. Don't sit on the sidelines in this fight for our survival. You can reach Bill at (323) 934-6465.

At the Council meeting, one of the owners who testified has already had his property go into foreclosure. The continuance of rent control in Los Angeles is counterproductive--it is causing the loss of housing, rather than its preservation. The free market dictates reasonable rents. Los Angeles city government needs to recognize this. Of course, that means dismantling a large part of the empire that has been built to keep owners under control and terrified. Rental property owners are not stupid and, if the market is left alone, tenants will have options which dictate sound practices.

No responsible property owner approves of blighted properties not being addressed by the City. No one wants people living in substandard conditions. But that is the job of the City's Code Enforcement Unit, and they are capable of doing it very well. There should be response to complaints if health, safety and sanitation of occupants are being ignored--but that does not mean that the responsible owners should be subjected to unnecessary inspections for which they have to pay. The first change that should be made in the current rent-contol law is to have the tenant pay the insepction fees for any complaint that is not valid or is the result of their own actions. That's just one of the things that would level the playing field, but it will still not bring fairness to the property owner who is considered guilty until proven innocent.

Join one of the rental-property owners' groups. The next rent-control/freeze meetings will be in the Housing Committee and the Planning Committee of the Los Angeles City Council. Watch for the date here and on the websites of the various organizations. Don't be a victim and a target! We need you as a warrior in this battle we should not have to fight; however, if we do not, we will be crushed. Just take a look at what happened at the end of the Council meeting!!

NO LOS ANGELES RENT FREEZE NOW, SAYS COUNCIL.

L.A. COUNCIL BLOCKS RENT FREEZE, TRIGGERING PROTESTS
Police clear unruly crowd after demonstrators disrupt meeting. Lawmakers' 10-5 vote cleared the way for a 3% increase on July 1.
By Phil Willon and Joel Rubin, Los Angeles Times

Read entire story:
http://www.latimes.com/news/local/crime/la-me-0522-council-rent-20100522,0,4087295.story

Friday, May 14, 2010

LA Times Prints Letter Opposing Rent Freeze

Even the liberal LA Times printed a letter opposing the rent freeze. It appeared on May 12:

http://articles.latimes.com/2010/may/11/opinion/la-le-0511-tuesday-20100511/2:

What about L.A. landlords?

Re "L.A. rent hikes might be delayed," May 6

It is amazing to me that the City Council's Housing, Community and Economic Development Committee is so blind to what it takes to run a business in Los Angeles. They want to put a freeze on rent hikes, even as they raise DWP rates.

A 3% rent increase does not necessarily raise landlords' incomes. Councilmember Richard Alarcon is sympathetic to struggling working-class people, but many buildings are owned by people who do not even break even anymore. Officials are just making it harder for anyone to make a profit. No wonder businesses are fleeing the city when they can. Too bad landlords cannot move their buildings out too.

Dafni Black
Culver City

DON'T FORGET THE NEXT HEARING: FRIDAY, MAY 21, 2010, CITY COUNCIL CHAMBERS, CITY HALL, 200 N. SPRINT STREET, LOS ANGELES CA 90012 (See more info below).

Thursday, May 13, 2010

Rent-Freeze Opposition - Op-ed and Letters in the Daily News 5-11-10

These are must-reads!! Please go to the links posted below, because clicking on them lets the Daily News know we appreciate their support. Also, it gives you a chance to leave a comment. This is our chance to speak and be heard/read...so take advantage of this forum and voice your frustration and sincere concern over the future of rentals in the city of Los Angeles.

http://www.dailynews.com/opinions/ci_15057492

Almut Bower: Rent freeze would leave landlords holding the bag
By Almut Bower Almut Bower is a mom-and-pop landlady of 22 years. She lives in Winnetka.
Posted: 05/11/2010 09:46:03 AM PDT
Updated: 05/11/2010 09:46:39 AM PDT

IF the Los Angeles City Council wants to help cash-strapped tenants, then the city should foot the bill. The landlords should not carry the burden of subsidizing the rent for people who may have fallen on hard times - quite often, but not always, through their own fault.

I am a mom-and-pop landlord. I own six units. It's my retirement. I worked hard for it and counted on the fruits of my labor during my golden years. Not only did I lose part of my invested savings during the downturn of the economy and the stock market the past couple of years, I am also on the hook for the retirement of public employees.

To add insult to injury, on Friday the City Council voted to draft an ordinance to cut the income on the already rent-controlled apartments with a temporary freeze on rent increases. Some units fetch way under market rent. Tenants with new SUVs, flat screen TVs, and kids in college enjoy these comforts and I am happy for them. But these comforts are being paid with money subsidized by Mr./Mrs. Private Citizen Landlord and we feel we are being taken advantage of.
Rents of non-rent-controlled units way outpaced the allowable rent increase of rent-controlled units. Some tenants have not moved in many, many years and these tenants are not necessarily the ones who need to be subsidized; they are just damned clever or lucky!
We landlords have a conscience. We only increase rents on tenants who grossly underpay, the others we leave alone…..MORE http://www.dailynews.com/opinions/ci_15057492

AND LETTERS http://www.dailynews.com/opinions/ci_15057490

Bigger problems than just rent: Letters for Tuesday, May 11

Re "Council backs rent freeze in L.A." (May 8):
It is mind-boggling that the City Council of a city on the brink of bankruptcy believes itself qualified to tell apartment owners how to succeed in business. Councilman Richard Alarcon - who introduced the one-year rent freeze on all properties built before 1978 - admitted publicly that his employee had just received a voluntary rent reduction, demonstrating that owners appreciate and reward good tenants in tough times. There is an equal or greater problem with the onerous rent-control system in Los Angeles than just the limitation on rents. It requires scofflaws and gang members to be accommodated but does not protect other tenants from the dangerous conditions they create nor reimburse owners for the physical damage they do and the thousands of dollars it costs to evict them.
- DENISE A. JUSTIN
Los Angeles

Rent control to pay utility bills?

Re "Council backs rent freeze in L.A." (May 8):
As an apartment manager, I know firsthand the difficulties we have had in renting our vacant units to decent people and how much our income has gone down each month over the last couple of years. I also know that it's harder and harder for us to pay our bills. The only people we have increased rent on are those who have lived here for years and whose rent is very low. I think the real reason City Councilman Richard Alarc n wants rent increases frozen is so that these renters will have enough money each month to pay the increases in water and electric and all the other fees the city collects each month. It's way past time to put him and the rest of thieves out of office.
- TONY TAYLOR
North Hollywood

Monday, May 10, 2010

LA Times Article on 5/7 Council Meeting re Rent Freeze

Here's the link to the LA Times article, dated May 7, 2010, in case you didn't read it. Also suggest you read the comments at the bottom to see that apartment owners are fighting back--intelligently and with all the facts!!

It emphasizes the need for us to not take anything for granted and to attend the Friday, May 21, meeting at City Council. (See info on earlier posts on this site.)

http://latimesblogs.latimes.com/lanow/2010/05/los-angeles-city-council-narrowly-agrees-to-consider-four-month-rent-hike-moratorium.html

Sunday, May 9, 2010

Mothers are Los Angeles rental-owners, too!

HAPPY MOTHER'S DAY--especially to any mothers who are concerned about the possibility of losing their small rental properties which provide essential income to support a family.

There is a nurturing element in providing housing and safety to renters and their families, and most of us select our tenants as part of our extended family. We are now being portrayed by SOME members of the Los Angeles City Council as the "enemy" or as criminals who only care about profiting from the disadvantaged. Yet, we are not allowed to reduce our rents temporarily without changing the base we can use in the future when economic times improve. Nor are we allowed to refuse to rent to those we believe might endanger our other tenants or diminish the quality of life in our property.

Remember that rent control and the current measure to freeze rents in the city is not about concern for impoverished, starving tenants. It is about political control. If our tenants are led to believe that we want to harm them and their only protection is a "tenants' union" and local government, they become dependent upon those who lead these movements and that calculates into VOTES!!

No one who is taking the time to read this blog would condone poor living conditions for any human being. We cannot deny that there are greedy, uncaring apartment owners. But there are many laws that deal with code enforcement and sanitary conditions, and these should be immediately and diligently enforced. These are the owners we, ourselves, report because they devalue and endanger the entire neighborhood. Bringing negligent owners into compliance with law should not be done by punishing ALL law-abiding rental-property owners and driving them into bankruptcy.

Become involved--join one of the apartment associations and come to City Hall on May 21,2010. There is power in numbers and truth. We learned that from our Moms!!!

Saturday, May 8, 2010

Daily News Rent-Freeze Poll and Tim Conway, Jr., on KFI

The Daily News poll question today (May 8) was whether the proposed rent freeze should be passed. The results as of 10:00 p.m. showed: 64.7% - "NO"!! To read the Daily News article by Rick Orlov, go to the following link:

http://www.dailynews.com/ci_15041877?IADID=Search-www.dailynews.com-www.dailynews.com

On KFI tonight (Saturday, May 8), between 6:00 and 6:15 p.m., Tim Conway, Jr., gave a brilliant argument on why rent control creates higher rents and why passing a rent freeze would only result in more apartment owners going into foreclosure or not being able to properly maintain their properties. I'm not sure if it will be available on-line, but search for his show on http://www.kfiradio.com/, or just "Google" his name. An e-mail thanking him would let him know we appreciate his understanding and support.

Councilman Dennis Zine at AAGLA

At the regular monthly Saturday morning meeting at Apartment Association of Greater L.A. (AAGLA) on May 8, Councilman Dennis Zine gave a very lively and informative review of the political aspects of the proposed one-year rent freeze, introduced by Councilman Richard Alarcon. If you are not a member and want to keep up on developments that affect rental-property owners, you may want to contact AAGLA and see if their services and activities would benefit you.

The vote on the item may be deceptive because we cannot be sure whether the item was supported merely on a four-month basis (as opposed to one year) or whether a "yes" vote means that particular councilmember will also favor a long-term rent freeze. However, here's the vote: (Ayes) Alarcon, Hahn, Garcetti, Huizar, Krekorian, Reyes, Rosendahl and Wesson. (Noes) Parks, Koretz, LaBonge, Perry, Smith and Zine. (Cardenas was absent.)

Councilwoman Hahn introduced an amendment to exempt "mom-and-pop" buildings of five units or less (only if owned by individuals, not a large corporation). This motion passed, but that could change in the final vote, so don't become complacent if you are a small-property owner.

Bottom line...Councilman Zine is an apartment owner himself so he understands the rising expenses and other difficulties of properly maintaining properties. He's a strong supporter of what is right and what is fair for both owners and tenants. He opposes oppressive regulations, which ultimately hurt both. He emphasized that the battle has just begun if rental-property owners do not want to lose more of their property rights (although we've already lost most to the RSO).

Several things are very important:

(1) Write to your Council representative and tell him/her that they must NOT impose a rent freeze that can bankrupt many of the apartment owners who are already providing low-cost housing throughout the city. Go to www.lacity.org for information on how to contact your Councilmember. (A detailed list will appear on a later post on this blog also.)

(2) Come to the Council meeting for the next vote on this matter on Friday, May 21, and fill out a card to speak. All the cards are counted and entered by the City Clerk as part of the permanent on-line file. If you are uncomfortable about actually speaking, you can decline later. However, having your card counted as a property owner is VERY IMPORTANT.

Here's the info: (PLEASE MARK YOUR CALENDAR "URGENT" FOR THIS MEETING.)

10:00 a.m. (ARRIVE BY 8:30 a.m. in order to get a seat.)
Friday, May 21, 2010

City Council Chambers (Rm. 340)
Los Angeles City Hall
200 North Spring Street (enter on Main Street--between Temple St. and First St.)
Los Angeles CA 90012

Parking is not easy. There are some lots on Alameda St. or there is parking under the mall, which you can enter on Los Angeles St., north of Temple St. (More info on parking will appear on this blog before the meeting.)

Friday, May 7, 2010

Welcome, Los Angeles apartment/rental owners & friends

This is a new concept for those who own apartment/rental property in the City of Los Angeles. It is intended merely to share information, notification of meetings, reports on what is happening. It is also hoped that owners can communicate with each other and service providers to get answers to questions or locate those with common interests/issues/solutions.

Tomorrow, May 8, at 10:00 a.m. Councilman Dennis Zine will be the guest speaker at the Apartment Association of Greater Los Angeles monthly Saturday meeting. Several of us will attend and we will try to provide a synopsis of the Councilman's perspective on what is happening and what will probably happen in the future in regard to the rent-control ordinance, DWP rates, and other questions we all have.

Jump in and post. However, please keep it respectful, pertinent and informative.