If you didn’t attend the April meeting because of the threat of rain or to watch the UCLA game, you really missed out. Not only did it not rain and UCLA lost to Florida, but we had an outstanding meeting.

Jim Jacobson gave a thorough explanation of how the rent board is trying to do an end run around certain portions of the Costa-Hawkins bill in order to prevent you from receiving your full rent increases. Please see Jim’s article for the complete story.

ACTION has started with a new credit reporting service from Kroll Factual Data. Kroll is a large East Coast security company which is also responsible for the background investigations of all TSA security personnel at the airports. They really know how to do background checks. Our new service will include typical credit reporting and employment verification. Also included is a public records examination which will disclose unlawful detainers, bankruptcy, and other judgments. It’s getting to be that a credit report has more options than a new Lexus. You have the option of adding additional searches including a national criminal search. This would be an independent method of discovering if a prospective tenant is a registered sex offender.

While we are prohibited by California law from using the Megan’s Law database in determining whether or not a prospective tenant is a registered sex offender, we are not prohibited from using outside sources for such information. However, in Santa Monica it may be that you would want to rent to a registered sex offender as it may be a way of emptying out a building without having to do an Ellis (just kidding).

Our legislators in Sacramento are certainly in election year mode. The legislators who are up for re-election have proposed legislation which is more middle of the road. While those not under the election magnifying glass have sought to seek more extreme legislation. The California Apartment Association (CAA) is sponsoring legislation that would clarify that registered sex offenders are not a protected class as a result of the Megan’s Law database. Assembly Bill 2603 by Parra (D-Hanford) would clarify that a registered sex offender could not sue a rental property owner for refusing to rent to the sex offender. It would give the rental property owner the right to ask on an application to rent whether the prospective tenant is a registered sex offender. This bill would also give the rental property owner the ability, without fear of a fair housing claim, to evict the tenant if the owner learns through a third party (law enforcement or from the tenant himself) that he is a registered sex offender. Given the fact that the "Pervert Caucus" in Sacramento still has a firm grip on the housing committee, it is unlikely that this bill will proceed. However, it is necessary to highlight the problem and to keep it in the fore front of the legislature so that when the opportunity arises, we are able to move legislation through.

The CAA is also sponsoring a bill to curb eviction delay tactics in SB-1386 authored by Morrow (R-Oceanside). A common tactic by these firms is to set a case for a jury trial as a way to delay eviction. They know that it will cost you ten to twenty thousand dollars to do a jury trial even on such a trivial subject as non-payment of rent. After the jury trial is set, the tenant extorts additional time or a money settlement from the owner in exchange for waiving the jury trial.

In California, an agreement to waive jury trial in a lease is currently unenforceable. However, if the legislature approves the ability to waive a jury trial then we can insert such a clause in our lease agreements. I will keep you apprised as this important legislation proceeds.

Assembly member Toricco (D-Fremont) has reintroduced the 60-day notice for termination of tenancy. This is similar to Sheila Kuel’s bill last year. In Santa Monica, the 60-day notice generally only impacts owner occupancy notifications. However, in the rest of the free world without rent control and eviction protections, it has a much greater impact. It prohibits good landlords from protecting tenants from drug dealers and other bad tenants because it hampers the ability of owners to give 30-day notice termination of tenancy. I expect this bill to proceed through Senate Judiciary committee and off the Senate floor.

The real battle will be on the Assembly floor. This legislation needs 41 votes to move out of the Assembly. Last year, Kuel’s bill only received 36 votes and thus died. CAA has already talked to most of the members who have voted no or abstained on last year’s legislation. This will be at the top of our list for our legislation day in Sacramento, May 23. During the legislation day, we will get approximately one thousand members to descend on the Capitol and talk to individual legislators from across the state to let them know about our concerns and encourage the appropriate votes. Legislators generally pay a lot of attention to constituents from their home town. Our Leg day is the largest coordinated event in Sacramento each year. Very few statewide organizations can amass such a cohesive, well organized group of articulate individuals.

Senator Alacon (D-Los Angeles) has submitted a bill which would make it difficult for us to utilize the Ellis Act. SB-1834 would define to “go out of business” for the purpose of the Ellis Act to mean “discontinue in the business or occupation of being a landlord.” Apparently, a private attorney from Los Angeles has requested this bill. The stated purpose is to “increase and maintain affordable housing in Los Angeles.” CAA has vowed to vigorously oppose such legislation.

One never knows when well intentioned legislation could have a massive unintended consequence. Bill AB1953 proposed by Assembly member Chan (D-Oakland) is such an example. Under current law, no one can use any pipe or plumbing fitting, fixture, or soder that is not lead free. “Lead free” is defined as containing less than 8% lead. This bill reduces the standard to .25%. At first blush, this seems like a prudent move. However, the effect of AB-1953 would be to prohibit most everyday faucets and fixtures including backflow devices and valves that are on the market today. Many experts believe that no manufacturer could now or in the near future meet these proposed standards. You would not be able to buy any replacement faucets at Home Depot or your local hardware store if this bill passes. Thus, this bill could effectively bring construction, remodeling, and rehabilitation of your units and housing to a halt in California. Again, well intended legislation could have a completely adverse impact on the rental housing industry. This is especially bad now that we have heightened inspection requirements. We will vigorously oppose this legislation until there can be an economic alternative.

CAA is in the process of building one of the largest Political Action Committees in California. At a recent PAC meeting in Oakland, many candidates were interviewed. Jerry (“Moonbeam”) Brown sought our support for his bid for Attorney General. When asked the standard question, “Why are you running for Attorney General?” Brown responded with, “Well, it’s a way of putting off retirement for another four years.” The PAC committee decided to back Rocky Delgadillo for attorney general.

On the local front, in our own 41st district, Assemblywoman Fran Pavley has been termed out. This has opened up the seat. Since our district is so heavily Democratic, there is no way for a Republican to ever win. Thus, it is important for us to heavily back a moderate Democrat. We have chosen Barry Groveman as such a man. He is a firm Democrat, but he understands our issues. The other Democrat running in the primary is SMRR-sponsored Julia Brownley. I would encourage each and every one of us to strongly support Barry Groveman for the June primary.

Please plan on attending the meetings first Monday of each month. I hope to see you.