Los Angeles City Rent Stabilization – Reminders and Updates – by Patricia A. Harris

Hopefully, if you own apartments in the City of Los Angeles and are under the L.A. Rent Stabilization Ordinance, you have already paid your building’s registration fees of $24.51 per unit which was due by February 29, 2017.  Serving a timely notice, you may collect one half of those fees from your tenants.  Note:  You used to collect this fee in the month of June, but for 2017, it has been changed to August. 

Collect $12.25 Registration Fees in AUGUST

The Los Angeles Rent Stabilization Division allows owners to pass-through one half of these fees ($12.25) with a 30-day notice, collectible in the month of August only.  That means you MUST serve the notice of the one time annual rent increase (found on the following page) in the month of July in order to collect this annual fee from your tenants.  AOA recommends you serve the notice on July 1^st to collect this fee along with the rent due on August 1^st.

IMPORTANT NOTE:  The notice of the one-time annual charge must be accompanied with a copy of your Rent Stabilization registration certificate to show that you paid the fees.

Code-Enforcement Pass-Through Fees

The SCEP fee of $43.32 per unit charge for the Housing Department’s code-enforcement inspection fee may also be passed through to your tenants.  This fee, however, must be amortized over a 12 month period and is collectible at a monthly rate of $3.61.  A 30-Day Notice of Change of Terms of Tenancy must be served to each tenant after you pay your bill before you can collect this fee.  That means with proper service, you can legally raise your rents (as long as you paid your bill!), $3.61 per month. Every little bit helps!  Your tenant may elect to pay this fee all at once, however they will not be awarded a refund should they move before the end of the year.  Also, if your building IS NOT under rent control, you may request and collect the fee in its entirety after serving the 30 day notice.

Other Los Angeles Rent Stabilization Updates

• SECURITY DEPOSIT INTEREST:  Please note that the required 2017 interest that must be paid on security deposits for units in L.A. City is 0.12 percent. A landlord may pay tenants the actual rate of interest earned if security deposits are kept in a separate account by providing a copy of the bank statement showing the actual interest rate earned for the year.

• ALLOWABLE ANNUAL RENT INCREASE:  The Los Angeles Rent Control’s annual rent increase is currently 3% through June 30, 2017.  As of this printing, the July 2017 rental increase percent was not yet determined but we were told it will most likely remain the same.  The actual amount should be made available to us in June. 

Via https://www.aoausa.com/

New Landlord Requirements Regarding Bed Bugs – by Patricia A. Harris

AB551 prescribes the duties of landlords and tenants with regard to the treatment and control of bed bugs.  The below describes in general, a landlord’s responsibilities.

What Must a Landlord Do?

• On and after July 1, 2017, prior to creating a new tenancy for a dwelling unit, a landlord shall provide a written bedbug notice to the prospective tenant. [Note: Tenant acknowledgement of this notice is now included in the revised AOA Rental Agreements – please download and use the new rental agreements for new tenancies.]

• This same notice shall be provided to all other tenants by January 1, 2018.

• The notice shall be in at least 10-point type and shall include, but is not limited to, the following: General information about bed bug identification, behavior and biology, the importance of cooperation for prevention and treatment, and the importance of and for prompt written reporting of suspected infestations to the landlord. (AOA Members may download the form “Information About Bedbugs” for FREE in the forms alphabetical listings at www.aoausa.com.)

• The landlord shall notify the tenants of those units inspected by the pest control operator pursuant to Section 1954.604 of the pest control operator’s findings. The notification shall be in writing and made within two business days of receipt of the pest control operator’s findings. For confirmed infestations in common areas, all tenants shall be provided notice of the pest control operator’s findings.

• Entry to inspect a tenant’s dwelling unit shall comply with Section 1954(2) – (to make necessary or agreed repairs …) with a 24-hour notice to enter the premises. Entry to inspect any unit selected by the pest control operator and to conduct follow-up inspections of surrounding units until bed bugs are eliminated is a necessary service for the purpose of Section 1954. Tenants shall cooperate with the inspection to facilitate the detection and treatment of bed bugs, including providing requested information that is necessary to facilitate the detection and treatment of bed bugs to the pest control operator.

• A landlord shall not show, rent, or lease to a prospective tenant any vacant dwelling unit that the landlord knows has a current bed bug infestation.

For more information, visit http://leginfo.legislature.ca.gov/faces/billCompareClient.xhtml?bill_id=201520160AB551

Via https://www.aoausa.com

Repeal Costa-Hawkins? Assembly Bill 1506 seeks to kill this bedrock California property rights law

In February 17, 2017, Assembly Members Chiu, Bonta, and Bloom introduced AB 1506, an effort to repeal the Costa-Hawkins Rental Housing Act—a state law that places strict limits on a city’s ability to impose rent control on housing. Prior to Costa-Hawkins, rent control ordinances had long been held to be a valid exercise of a city’s “police power”—the ability to regulate the health and safety of their residents—and five California cities (Berkeley, Santa Monica, Cotati, East Palo Alto, and West Hollywood) had “strict” rent control ordinances, imposing what is known as “vacancy control” on empty units even after a tenant voluntarily vacated. In 1995, State Assembly Member Hawkins introduced AB 1164 (with State Senate Member Costa as a co-author), advancing what they saw as a “moderate approach to overturn extreme vacancy control ordinances [that] unduly and unfairly interfere with the free market.”

Costa-Hawkins achieves several forms of decontrol on local price ceiling regulations. It prohibits rent control on new construction and on single-family homes and condos (subject to certain conditions and limitations). It also prevents vacancy control by prohibiting cities from setting prices on vacant units and by allowing landlords to impose market-rate increases on subsequent occupants, once the last “original occupant” has vacated.

While Costa-Hawkins seeks a middle ground between inflexible price controls, on the one hand, and “rent-gouging” and displacement on the other, some lawmakers have expressed concern about the consequences of vacancy decontrol in tough situations. (For instance, Supervisor Jane Kim has proposed a “compassion clause” to protect the surviving spouses/partners of recently deceased, rent-controlled original occupants.) However, Costa-Hawkins has now been on the books for over two decades, and a sudden repeal would wash away the existing case law and local regulation that navigate between these competing interests.

As with the recent proposed legislation by Assembly Members Chiu and Bloom to amend the Ellis Act (AB 982), the purpose of AB 1506 is unclear. Costa-Hawkins expressly allows cities to impose limits on evictions. Local real estate blogs, like SocketSite.com, have recently reported that rental rates in San Francisco are dipping back down to 2014 levels. So, rather than ward off climbing prices, this kind of gesture would merely seem to further cement protections for incumbent tenants, as compared to anyone else in the market for a rental unit. It may also have unintended consequences, where landlords rush to invoke the Ellis Act, which allows its own form of vacancy decontrol if a property goes back onto the rental market.

Help defeat AB 1506
AB 1506 will remain in print for 30 days (until March 21, 2017) before it goes to committee. In the meantime, you can help build political pressure by expressing your opposition to this legislation directly—make the four calls suggested in the Call to Action. (Information listed below)

CALL TO ACTION

Say “No” To AB 1506!!
AB 1506 must be defeated. Please phone both offices of
our two California State AssemblyMembers David Chiu and
Phil Ting. Each office tallies the number of calls on any bill,
so calling both will have the greatest impact.

• Assembly member David Chiu
  Sacramento: (916) 319-2017
  San Francisco: (415) 557-3013
• Assembly member Phil Ting
  Sacramento: (916) 319-2019
  San Francisco: (415) 557-2312

Also, please consider traveling with us to Sacramento in the
next few weeks to show up in numbers at the Assembly’s
Housing Committee hearing on AB 1506.We’ll let you know
when we have a definite hearing date.
The membership of SPOSFI has been instrumental in protecting the rights of small property owners in the past. In 2014 and again in 2015, Senator Leno introduced successive efforts to stifle San Francisco property owners’ use of the Ellis Act (in SB 1439 and SB 364, respectively). Members voiced their opposition (and even got on buses to Sacramento) to apply the necessary political pressure to preserve property rights. A repeal of Costa-Hawkins would take away the ability of property owners to decide the price at which they will enter the market (or to continue renting to a stranger), giving those rights to tenants and city bureaucrats instead.

Via https://www.smallprop.org/

Is Pot the New Pets?

Donald Davidoff is an industry thought leader and can be reached by emailing Donald@d2demand.com

(Warning: Don’t read this if you’re not interested in hearing a provocative point of view)

I was meeting with a client of mine who has communities in California, and they shared a letter they were sending their residents. The letter was informing residents that, while California had passed a recreational marijuana initiative, the law gave apartment owners the right to declare their property to be marijuana free. The letter went on to inform residents that this company was exercising that right and that any use of marijuana in their apartments would be a violation of their lease and could result in eviction.

As a resident of Colorado (one of the earliest states to approve recreational use in homes) and a demand management modeler, this got me thinking. I wasn’t surprised that my client exercised their right; in fact, I expect that virtually all professionally managed communities will do or have done so already.

But is that really the right business answer? Perhaps the continued disconnect between these state laws and federal laws makes it the right answer. Perhaps there are indirect liabilities I’m not fully aware of (though not a lawyer, I would struggle to understand how liabilities surrounding marijuana would be any different than what already exists with alcohol consumption)? Or perhaps there are legitimate concerns related to managing issues like the potential for, shall we say earthy, aromas to permeate a building and annoy other residents (more on that later)?

All of which reminded me of pets and the late 1990s. Those of you in the industry long enough may remember that few mainstream operators allowed pets (excluding fish and maybe birds). There were legitimate concerns: noise, increased wear and tear on the unit and common area issues like damage to landscaping and owners not responsibly picking up pets’ solid waste.

I remember that the company I was with at the time was one of the earlier operators to introduce pet friendly policies (with accompanying pet rent). I was particularly convinced of the validity of our policy when I visited one of our communities. Archstone South Market was right on the edge of San Francisco’s financial district and attracted many professionals in its resident base. As I toured, I noticed a lot of pets. It seemed as if half the residents or more were walking a dog.

I asked the community manager about this, and she told me we were the only community in or near the financial district that accepted pets. In fact, our competitors would refer prospects with pets to us because their company policies (at the time) forbade pets. Imagine that, I thought…by allowing pets (while getting paid for it), we had turned our comps into one of our better sources of leads!

Of course, today virtually everyone accepts pets for at least part of their community (if not all). So the competitive advantage no longer exists; but it was sure nice while it lasted!

Which brings me to the title of this blog. Could marijuana be an opportunity, like pets, for innovative, early adopters to have a meaningful point of differentiation versus their comps? Sure, there are issues; but there were issues with pets that got solved. Maybe, for example, we start with allowing recreational use limited to a single building (in a garden community) or a single wing (in a high-rise community)? Analogous to pet rent (or for that matter south facing units), we could put a premium on those units and thus get paid for this. As a demand management modeler, I love the idea of this as a possible premium rent segment (just like pet owners); and it doesn’t even have to be as explicit a charge since a unit amenity rolls into the overall rent.

I’m sure there are other logistical and/or legal concerns to work out. That’s beyond the scope of this initial blog on the subject. My point is that some enterprising operator is going to take the new law and find opportunity in it rather than the easy, somewhat knee-jerk reaction of simply keeping the rules the same as they have always been. What will you do?

Via https://www.multifamilyinsiders.com

By Donald Davidoff.

7 Action Steps Apartment Owners and Managers Need to Do to Prepare and Get Ready for an Unlawful Detainer Trial

INTRODUCTION

Many landlords/ property managers have been involved in unlawful detainer/ eviction cases in one form or another.   Eviction cases take many forms and factual circumstances.   Some cases go smoother than others !    Some of the most common scenarios are either a tenant was not paying rent on time, or a tenant is being a problem and a nuisance and is disturbing the quiet enjoyment of neighbors in the apartment building.

When unlawful detainer cases are filed, under state law, they receive “trial setting” priority in the courthouse- usually are set quickly within 21 days after a Memorandum to Set for trial is filed by the plaintiff landlord in Court.    If your property is in a rent control jurisdiction like the City of Los Angeles, the grounds for unlawful detainer are set forth in the local rent stabilization ordinance, which is part of the municipal code.     If your property is not in a rent control city- lucky you !  You have more flexibility in terms of serving a notice to terminate the tenancy, although you must comply with state law notice requirements, case law, and the local rules of court.

To get you through the process of being a party in an unlawful detainer action with a level of comfort and confidence, there are a few things that you should do to prepare for the unlawful detainer trial so you are organized and mentally prepared for the process and the trial.  Here is a useful checklist to review with your attorney:

 

1. REVIEW THE COMPLAINT AND ANSWER:   Review the complaint, summons, and defendant’s answer, and all the exhibits. Does your complaint need amending ?    The tenant’s answer sets forth affirmative defenses that the tenant may try to argue at trial to win the case.    Make a list of what facts and exhibits you can present to counter and defeat the tenant’s affirmative defenses.

 

2. REVIEW THE EXHIBITS:    Review your Notice to Terminate the tenancy, the proof of service of the Notice to Terminate the tenancy, the rental agreement,  rental payment history, and the calculations to determine how much rent, daily damages, and costs is due on the date of trial.   It is a good practice to bring to court as an exhibit your business license, and proof of registration with the local city housing department if you are in a rent control city because a tenant may argue as a defense that you are not registered with these agencies.  If you are running your business as a corporation or LLC, you should confirm that your entity is in good standing with the Secretary of State.  Your attorney should bring a sufficient amount of exhibit copies to court.  

 

3. WITNESSES SHOULD BE READY TO TESTIFY:    Compile a witness list, and have your attorney serve subpoenas if necessary to third party witnesses.  Review the case and the complaint with your attorney and primary trial witness.     If you are involved in an unlawful detainer situation where the tenant is alleged to be a nuisance- you should serve trial subpoenas to any neighbors who will testify in your favor to help prove the nuisance allegations.  You have the burden of proof.  If the tenant is contesting proper service of the notice to terminate the tenancy, please have your process server or the person who served the notice to terminate the tenancy appear in court as your witness to counter these allegations. 

 

4. JURY TRIAL:   Check to see if the tenant has posted jury fees, and filed a counter memorandum to request a jury trial.    If so, you should have your attorney prepare appropriate jury instructions and special verdict forms to bring to the trial so you are prepared for a jury trial.   If you have time, you may want to file a Motion for Summary Judgment against the tenant to try to get an early judgment, and avoid a jury trial.  

 

5. IS POSSESSION OF THE PREMISES AT “ISSUE” ?: The primary issue in an unlawful detainer case is possession of the property.  Before the trial date, check to see if the tenant has “caved in” and has vacated the premises.  Please check with your property manager or neighbors to confirm whether possession is at issue.    If possession is no longer at issue- then you may convert the case into a collection case if the tenant owes back rent and other charges,  and is collectable.

 

6. WHO WILL BE THE TRIAL JUDGE  ?:        On the day of trial you will have to face either a judge pro tem, a Court commissioner, or a fully credentialed  judge who will conduct your trial and will decide your case.    Certain judges or commissioners may have a bias that favor either tenants or landlords- you should discuss with your attorney whether you want be in front of a judge, commissioner, or a judge pro tem.   Ask your attorney whether your attorney has had a case with the proposed judge in the past, and what happened in that case.   You can also look up the judge or commissioner on line to see if there is any information on the person, and whether it is positive or negative.  If you want to have a fully credentialed judge try your case, then don’t agree to have a commission or judge pro tem hear the case- your case will be assigned to a judge.  You may have to wait in the hallway before a judge is available to hear your case !!

 

7. WORK OUT A SETTLEMENT WITH THE TENANT IF POSSIBLE:

At Court when all parties are present, before the trial is about to commence,  is the perfect time to negotiate a settlement, and enter into a written and signed stipulation for entry of judgment with the tenant.   Perhaps you may need to give the tenant a few extra days to move out or a small rent concession.  You should have a well drafted, specific, and clear stipulation and  agreement that applies to all parties and all issues.    Having a well drafted stipulation for judgment and settlement with a “drop dead date” to vacate the premises, that binds all tenants in the unit, and that allows for a sheriff’s lock out after a date certain is truly in your best interest.    If the tenant does not have an attorney, ask the judge to make sure the tenant understands all of the terms of the stipulation, and make sure that the tenant personally signs and dates the stipulation, and make sure the Judge signs it as well.  

CONCLUSION- Be Prepared and Confident

This seven point list is not an exhaustive list for preparing for your day in eviction court, but is just a starting point to get you ready for an unlawful detainer trial.  You should consult with your attorney on all issues, questions, procedures, and dealing with uncertainties.   If you follow the steps on this checklist you should have a level of comfort going into the trial. When you let a judge or jury decide your case, there is no guaranty of victory. Try to settle the case in writing with your tenant if you can. If there is any problem, you can request a continuance from the Court, but for most garden variety non payment of rent eviction cases, you should be able to complete your business in the first go around !!  

The author of this article, Nate Bernstein, Esq., is the Managing Counsel of LA Real Estate Law Group, and a member of the State Bar of California and his practice concentrates in the areas of complex real estate litigation, commercial litigation, employment law,  and bankruptcy matters. The contact number is (818) 383-5759, and email is natebernstein44@gmail.com.   Nate Bernstein is a 22 year veteran Los Angeles real estate and business attorney and trial lawyer.   Mr. Bernstein also has expertise on bankruptcy law, the federal bankruptcy court system, creditor’s rights and debtor’s bankruptcy options.    He previously served as Vice President and In House trial counsel at Fidelity Title Insurance Company, a Fortune 500 company, and in house counsel at Denley Investment Management Company.      Nate Bernstein created www.laquiettitleattorney.com, a leading educational resource on quiet title real estate litigation.     Nate Bernstein is a local expert on real estate law and economic trends in the real estate and leasing market, business law, bankruptcy law.    Nate has personally litigated more than 40 major real estate trials, and has settled more than 200 complex real estate and business cases.

By  Nate  Bernstein, Esq.   –  Managing  Counsel, LA Real Estate Law Group

Important News Regarding Rent Control Legislation: Calif AB 1506

A California Assembly Bill, AB 1506 (BLOOM), was introduced three weeks ago and aims to repeal the Costa-Hawkins Act, which currently prevents cities and counties from adopting extremely restrictive rent control policies. The Costa-Hawkins Act was adopted in 1995 to curb extreme rent control, enabling property owners to raise rents on vacant units during a time where strict rent control laws were in place across California. If passed, this repeal would heavily affect the rental industry as it encourages local government to fiercely control rental rates and evictions.

I urge you to join us and organizations within the multifamily industry like the California Apartment Association, California Association of Realtors, Apartment Association of Orange County, and many others. Contact your local Assemblymember and ask them to vote NO on AB 1506 when it is taken up on the assembly floor.

Click here to find your California Representative.

Via CICReports.com

New For 2017 – LA’s Rent Registry

Due to a recent amendment to Chapter XV of the Los Angeles Municipal Code, beginning in January 2017, the City will collect rent rates for all units subject to the Rent Stabilization Ordinance (RSO). Previously, landlords were only required to pay the annual registration fee and provide an emergency contact. The Los Angeles City Council enacted the City’s Rent Registry Program (Ordinance #184529) effective October 4, 2016. This ordinance provides that, in addition to paying the annual registration fee, landlords must also provide the rent amount for every rental unit subject to the RSO by the last day of February of each year. Registration is complete only when all outstanding registration fees have been paid and all required rental amount and tenancy information, including emergency contact information, is provided.

All necessary information and will be included in the materials mailed by HCIDLA with the annual RSO/SCEP bill. The 2017 annual RSO/SCEP bill will now include a two-page double-sided Rent Registry form. An online Rent Registry Portal has also been created at registerLArent.org to provide Landlords a more effective and efficient means to ensure accuracy and avoid any mailing delays. The Rent Registry Portal includes an online downloadable excel template, which will be especially helpful for owners and managers of larger properties. This template can be downloaded and, once information has been entered, the information entered on the template can be uploaded automatically to the online rent registry portal. Landlords who pay their annual registration and submit their completed Rent Registry form online will receive their Annual Statement of Registration (Certificate) within minutes of online submission. Much of the information entered in 2017 will be automatically saved for registration in future years.

The RSO allows a landlord to pass-through 50% of the registration fee to the tenant as a lump sum surcharge. Beginning in 2017, this fee will be eligible to be collected in the month of August due to the recent amendment in the RSO (in prior years, surcharge could only be collected in the month of June). Registration Statements (Certificates) issued in 2017 will be valid from May 1, 2017 to July 31, 2018. Subsequently, the Registration Statements will be effective from July 1st to June 30th of each year, reflecting a fiscal calendar year.

The Rent Registry Program will build a historical data of rent trends for the City’s rent-stabilized housing stock and deter unlawful rent increases while simultaneously assisting new or prospective landlords who may inherit or buy property through foreclosure or from property owners who fail to provide rent records or tenant estoppels upon the sale of occupied rent-stabilized properties.

The Los Angeles Housing + Community Investment Department (HCIDLA) is working to make this new program as easy as possible for landlords. Workshops will be offered throughout the month of January to assist landlords in understanding and complying with this new requirement. Additionally, a “Drop-In” session is available on the first Tuesday of the month from 2:00 to 4:00 by calling (213) 928-9075 to request an appointment. To learn more about the new Rent Registry Program, please visit registerLArent.Org or call (866) 557-(7368).

Reprinted with permission of AAGLA (Apartment Association of Greater Los Angeles)

AAGLA EXPO APRIL 19, 2017, FREE REGISTRATION AAGLAexpo.com

Help Protect Your Building From Sewage Backups And Overflows – by Greg Martin

Most homes in the Bay Area were built decades ago and still have their original pipes that connect the home to the sewer line in the street. Over time, these Private Sewer Laterals (PSL), crack which allows your sewage to seep out into the ground around your home.  It also allows rain water that has absorbed into the earth to seep into the sewer system. If your private sewer lateral is cracked, winter storms can fill your pipes with water, tree roots and mud. Those things can clog your pipe and, farther down the line, can lead to sewage spills into the San Francisco Bay, polluting our ocean.

A private sewer lateral (PSL) is the pipe that carries waste from the plumbing in a home or business to the sanitary sewer main, usually located in the street. It consists of two sections: an upper lateral, which connects the building cleanout to the curbside cleanout, and a lower lateral, which connects the curbside cleanout to the sewer main. Property owners are responsible for maintaining the entire PSL, except in Alameda and Albany where that responsibility is for the upper lateral only.

Backups can also occur in your sewer lateral due to washing and flushing items that don’t belong down the drain. Items like fats, oils and grease (FOG) and products labelled “disposable” or “flushable,” wipes, household cleaning and personal hygiene products should never be flushed. Often those non-flushable items get tangled with hair and debris, creating massive sewer backups or creating a clog or blockage in your plumbing system. An overflowing toilet can ruin a home in an instant. What can be flushed? Only three things: poo, pee and toilet paper. All other items should be disposed of in the trash.

In 2009, the United States Environmental Protection Agency (EPA) and the California Regional Water Quality Control Board ordered the East Bay Municipal Utility District (EBMUD), the six cities that make up the greater Bay Area and one sewer district to fix old, cracked sanitary sewer pipes. Many pipes are in need of repair to prevent the infiltration of rainwater, which can overwhelm wastewater treatment facilities and lead to the release of partially treated wastewater into the Bay. The EPA’s mandate compelled EBMUD and its partners to phase in a Regional Private Sewer Lateral (PSL) Ordinance beginning in 2011. Affected property owners must obtain a certificate from EBMUD certifying that all of their PSLs are leak-free. So by law, you now must prove your sewer line is leak-free when you sell or remodel your building or when you change the size of the water meter. But if you’ve had to call a plumber to come unclog your drains, that might mean your pipe is cracked and fixing it now could save you the inconvenience and, in the long-run, money on plumbers.

Visit www.ebmud.com/wastewater/private-sewer-laterals for more information on certifying that your sewer line is leak free and or call a Sewer Specialist who can run a camera to assess the buildings sewer lateral condition. Help protect the San Francisco Bay!  Fix your sewer laterals today!

Greg Martin is with Streamline Plumbing and can be reached at  510-481-0380 or www.streamlineplumbingco.com.

Reprinted with permission of AOA (Apartment Owners Association, Inc.)

Smoke is Smoke: Regulating Marijuana Use in Apartments – By Esther Schiller

The passage of Prop. 64 (Marijuana Legalization Initiative) on the California ballot on November 8^th is not a “carte blanche” (total permission) for the use of marijuana wherever and whenever people desire and decide to use it. Rather, the result is the de-criminalization of marijuana use accompanied by a complex series of regulations which will take time to put in place and to fully understand. The bottom line question for this article: can landlords ban the smoking of marijuana in order to protect their properties and their tenants from marijuana smoke? The answer very simply is YES.

Marijuana Smoking Can Be Regulated

The smoking of marijuana, like the smoking of tobacco products, can be regulated and even banned in apartments (and condominiums). But it is important to make that clear as soon as possible to existing and to prospective tenants. The use of marijuana is still illegal under Federal law, and a landlord can use this information to explain the reason for banning it. However, it may be more helpful to provide your tenants with information about the health risks of exposure to secondhand smoke from marijuana cigarettes and electronic smoking devices using marijuana.

Based on the many calls and e mails we have received from landlords and tenants even before the passage of Prop. 64, there is more worry about being exposed to marijuana smoke than being exposed to tobacco smoke. Landlords have the responsibility to provide a healthful environment for their residents. Smoking tobacco products or marijuana in a unit or on a balcony or patio may be a legal activity which enables the tenant who is smoking to use and enjoy the unit. But if that smoke drifts into another tenant’s unit, it could be preventing that tenant from using and enjoying his or her premises. In addition, the drifting tobacco or marijuana smoke could be considered trespass and/or battery and represents a serious health hazard.

Health Risks of Marijuana Smoke

Because marijuana is illegal under federal law, there have been a limited number of studies examining health risks associated with marijuana use and exposure in the United States. However, enough studies have been done to indicate that exposure to secondhand marijuana smoke has health risks similar to the health risks of exposure to secondhand tobacco smoke. In 2009, the California Office of Environmental Health Hazard Assessment added marijuana smoke to its Proposition 65 list of carcinogens and reproductive toxins. It reported that at least 33 chemicals present in both marijuana smoke and tobacco smoke can cause cancer.

Some of the chemicals include ammonia, arsenic, formaldehyde, hydrogen cyanide, lead, and mercury. In fact, marijuana smoke contains 20 times the amount of ammonia and 3-5 times more hydrogen cyanide than tobacco smoke.

In addition, secondhand smoke from marijuana smoke contains fine particulate matter that can be breathed deeply into the lungs. This can cause lung irritation, asthma and asthma attacks, and makes people more vulnerable to respiratory infections. This is especially dangerous for people with existing respiratory conditions. Because of the similar chemical composition of marijuana and tobacco smoke, exposure to marijuana smoke can also cause heart attacks and stroke.

Children are especially impacted by the effects of breathing secondhand tobacco smoke and perhaps by marijuana smoke as well. Secondhand tobacco smoke interferes with the ability to learn and causes children to be more likely to suffer from pneumonia, bronchitis, and ear infections. Secondhand smoke exposure can also cause asthma, and children who have asthma will have more asthma attacks and the episodes can be more severe.

The American Society for Heating, Refrigeration, and Air Conditioning Engineering (ASHRAE), is the organization that develops engineering standards for building ventilation systems. ASHRAE now bases its ventilation standard for acceptable indoor air quality on an environment that is completely free from secondhand tobacco smoke, secondhand marijuana smoke, and emissions from electronic smoking devices.

New regulations under Prop. 64 for marijuana use include the requirement that all locations with existing laws or policies with regard to tobacco smoke now include marijuana smoke as well. But it is wise for a landlord who has already adopted no smoking policies for his/her buildings to remind residents that the policy will now also include smoking of marijuana.

Medical Marijuana

What about the use of marijuana for medical purposes? Although a tenant may request a “reasonable accommodation” under Fair Housing laws, we suggest as a compromise that marijuana can also be inhaled using a vaporizer or ingested using foods available in medical marijuana stores. It may also be possible to find recipes for preparing marijuana in cooked foods.  However, there are still some illnesses and treatments of illnesses which make it difficult for patients to “hold food down.” It has been suggested that in these situations, the smoking of marijuana is the only measure that helps the patient to eat. If your tenant can provide a letter or prescription from a doctor that the smoking of marijuana is vital for nutrition, that may necessitate allowing marijuana to be smoked. Perhaps the landlord can provide an outdoor area away from the building where the marijuana can be smoked by that tenant.

Growing Marijuana in an Apartment Unit?

Can your tenant grow marijuana? With regard to cultivation of marijuana in an apartment unit, your tenant can grow up to six plants at any one time. Personal cultivation is subject to local ordinances, but none have been enacted as yet. Plants in excess of 28.5 grams must be kept in a locked space, and not visible from a public space. Persons 21 or older can possess, transport, purchase or give away to a person 21 or older not more than 28.5 grams of marijuana and not more than eight grams of concentrated cannabis. However, they cannot sell marijuana without a license. We understand that there is sufficient clarity in Prop. 64 which allows landlords to establish whatever policy they require on the use of marijuana and that could also include the growing of marijuana plants.

It is vital to include these requirements in your lease or contract.

Esther Schiller is the Executive Director of the non-profit organization Smokefree Air For Everyone (S.A.F.E.) and directs the Smokefree Apartment House Registry, www.smokefreeapartments.org For questions and additional information, she can be reached at info@smokefreeapartments.org.

Reprinted with permission of AOA (Apartment Owners Association, Inc.) and the author.

ALERT – Senate Bill 407 – Provided by Metro Retrofitting

ALERT – Senate Bill 407:   Water Conservation Retrofitting Goes Statewide for Single Family Dwellings on January 1, 2017.  Approved and Filed with Secretary of State on October 11, 2009.

SB 407 Property Transfers: Plumbing Fixture Replacement

• The bill would require, on or before January 1, 2017, that all noncompliant plumbing fixtures in any single-family residential real property shall be replaced by the property owner with water-conserving plumbing fixtures.
• The bill would require, on and after January 1, 2017, that a seller or transferor of single-family residential real property, multifamily residential real property, or commercial real property disclose to a purchaser or transferee, in writing, specified requirements for replacing plumbing fixtures, and whether the real property includes noncompliant plumbing.
• The bill would require, on or before January 1, 2019, that all noncompliant plumbing fixtures in multifamily residential real property and commercial real property, as defined, be replaced with water-conserving plumbing fixtures.
• The bill would permit an owner or the owner’s agent to enter rental property for the purpose of installing, repairing, testing, and maintaining water-conserving plumbing fixtures, as specified, and would require, on and after January 1, 2019, that the water-conserving plumbing fixtures prescribed by the bill operate at the manufacturer’s rated water consumption at the time that a tenant takes possession, as specified.

Established in 1996, Metro Retrofitting identifies and satisfies the mandatory point of sale city and state ordinances and code requirements for the Real Estate Community, Homeowners, Condos, Apartments & Commercial properties and for Escrow companies. For more information, please call 800-450-3660 or visit http://www.gometroretro.com.

Reprinted with permission of AOA (Apartment Owners Association, Inc.) and the author.