It is traditional at the end of the year for the President of any organization to look back and recite the accomplishments of the organization in recognition of the setting in which the organization exists and then to further predict the coming year. I have been extremely fortunate, honored and pleased to be President of ACTION this past year, a year full of opportunity, excitement and major strides for property owners in Santa Monica, in a year that ends on a favorable note.

For example, the lawsuits that the Board of Directors authorized were successful. We no longer pay interest on security deposits above and beyond the amount that the bank pays us. We no longer are subject to tenant harassment complaints simply because we ask for our rent. We are no longer subject to lawsuits simply because we would like the court to determine whether we are right or wrong in managing our business. Previously, the Santa Monica Rent Control Board, through the city attorney’s office, would attempt to interfere with our power to file a lawsuit merely because we wanted the court determination on rent that’s due and owing or another breach of rental agreement. The alternate forum of dispute resolution service (i.e., mediation) was often a time consuming, delaying tactic utilized by the tenant to deprive the owner of quick justice as opposed to justice delayed.

Our business is a very interesting business because it is subject to rent control guidelines. Because of the nature of our government regulations we must maintain close proximity to the courthouse as another source of relief in a landlord/tenant dispute. The negotiation works sometimes but that is generally a delaying tactic used by the tenant who simply cannot afford the rent, most likely is judgment proof and delays the inevitable. Our ACTION lawyer, Rosario Perry, has done a superb job concerning the prosecution of lawsuits and we are optimistic, now that local elections are over, we may be able to eliminate what we believe to be an unconstitutional form of income restriction based on the excuse of “housing”.

Most of our members have purchased retirement income property after investing years and years of hard work and it certainly is not reasonable that a tenant paying monthly rent should obtain more rights than the owner of the property.

On a local front, ACTION seems to fit in well now that we have a different City Council. One successful candidate ran on the ticket that he does not want over local regulation to determine the height of his hedges on his front path. Is there really any difference between over government regulations on the height of your trees and over government regulation on the amount of rent you should be able to receive? Natural laws of supply and demand genuinely handle these situations effectively. Herb Katz states that he is an independent, Bobby Shriver, who indicates that he is an independent, are now two voices on the City Council that may shed reason and logic away from the philosophy of the Santa Monican’s for Renters Rights political faction. In fact, I was personally pleased when some of the candidates agreed to speak at an election debate and an outside observer thought that we were trying to be a political force and, therefore, encouraged candidates not to attend our debate. I personally never thought to accomplish such status, but merely to explain our own existence to our members and allow them to understand the ever changing rules as it affects our membership, the property owners in Santa Monica.

So we start into the new year optimistic with Gov. Schwarzenegger heading up state government in California, with President Bush heading up national government and its policies abroad as well as local advisors, national cabinet positions and a Republican-dominated legislature, which should allow for beneficial opportunities yet to be seen. Perhaps the pendulum has finally swung back to a more even keel and we can be fair but not lose money as a “housing” provider.

In my quarter century career as a Real Estate litigator and advisor, now is perhaps the most advantageous time as we turn the corner into the New Year for peace, prosperity and happiness. The ACTION office remains open to your questions and is only dedicated to helping you, so please participate. We are always looking for advertisers in the magazine and we attempt to bring programs to your attention that are beneficial to you individually and to your business. The Lithuanian Credit Union program will gather increased momentum this year as will the insurance settlement program and other beneficial programs set forth by our advertisers in this magazine. If we can ever be of help to you please do not hesitate to call.

Again, ACTION is the only game in town dedicated to servicing the needs of Santa Monica property owners and any and all suggestions for improved performance are always welcome.

The best season’s greetings and happy wishes for a new year and I remain,

Yours very truly,

Gordon P. Gitlen, ACTION President