Marriott Hotel
San Jose, California
Thursday, October 8, 2009
7:00am - 8:00am

Presiding:
Don Readinger, Chair
Gwynne Hodge, Vice Chair
Tica O'Neill, Vice Chair
Terry Wunderlich, Committee Liaison

C.A.R. Staff:
Dave Milton

I. Opening Comments

II. Introduction/Discussion of 2010 Housing Committee Structure:
Housing Committee Mission Statement - This Committee is a Policy Committee. Its mission is to develop C.A.R.'s housing policy. It has original jurisdiction to evaluate housing legislation and regulation in the following issue areas:

Common Interest Developments
Fair Housing/Equal Opportunity
Housing Policy
Manufactured Housing
Multifamily Housing
Property Management
Real Estate Finance

Presiding:
LeFrancis Arnold, Chair
John Torres, Vice Chair

Issue Chairs:
Rana Linka, Common Interest Development
Miguel Garcia, Fair Housing/ Equal Opportunity
Georgia Richardson, Housing Policy
Diane Conaway, Manufactured Housing
Mike Riley, Multifamily Housing
Tica O'Neill, Property Management
Winnie Davis, Real Estate Finance

Committee Liaisons:
Kevin Brown
Annette Graw

Staff Coordinators:
Dave Milton
Matt Roberts






III. State Legislation of Interest

Foreclosure and Rental Property
AB 603 (Skinner) Statewide Just Cause for Eviction in Foreclosure Situations - This bill would have prohibited anyone who acquired foreclosed rental property from terminating a tenancy unless the new owner had owned the property for a minimum of one year or demonstrated a "just cause" (e.g., non-payment of rent, etc.) for the eviction. C.A.R. opposed AB 603 because it would have created a disincentive for ANY buyer to purchase an REO home, which would have only served to further delay the recovery of California's housing market. AB 603 was amended to instead conform to the new federal legislation which requires at least a 90-day notice to terminate tenancy, unless the tenant has an existing lease with more then 90-days remaining on the term in which case the tenant may remain until the lease term ends. AB 603 continues to permit eviction if the owner can demonstrate a "just cause" for eviction and still applies to ANY residential property leased or rented by a tenant prior to the completion of the foreclosure proceedings. The provisions in AB 603 would sunset January 1, 2013. C.A.R. is now neutral on AB 603.
Position: Watch as Amended   Status: Assembly Floor Inactive File

Required Notices to Tenants
SB 290 (Leno) Repeal of Sunset on 60-Day Notice for Terminating Tenancies of 1-year+ - Current law requires an owner of a residential dwelling wishing to terminate a tenancy to provide at least 60-days' notice, in writing, when tenants have been in occupancy more then 12 months, and at least 30 days' notice prior to termination if any tenant or resident has resided in the dwelling for less than one year. This bill would delete the January 1, 2010 sunset date on this 60-day notice mandate, which if left in place would repeal the 60-day notice requirement. C.A.R. opposed SB 290 and sought amendments to require tenants to give the same 60 days' notice for terminating a tenancy in excess of one year that is currently required for residential rental property owners.
Position: Oppose Unless Amended   Status: Enrolled to the Governor

SB 120 (Lowenthal) Notice to Tenants Regarding Utility Services - This bill would authorize a tenant or occupant who has made a utility payment to a public utility or publicly owned utility because the landlord failed to do so as required, to deduct the amount of the payment from the rent. It also provides that, where a landlord-tenant relationship exists, if an electrical, gas, heat, or water corporation furnishes individually metered residential service to residential occupants in a detached single-family dwelling, multiunit residential structure, mobile home park, or permanent residential structure in a labor camp, and the owner, manager, or operator is the customer of record, the corporation is required to make a good faith effort to inform the residential occupants when the account is in arrears. The notice shall be in writing, notify that service will be terminated at least 10 days prior to termination, and be in English, Spanish, Chinese, Tagalog, Vietnamese, and Korean.
Position: Watch   Status: Enrolled to Governor

SB 781 (Leno) Required Notices to Tenants of Licensed Residential Care Facilities for Elderly - The California Residential Care Facilities for the Elderly Act provides for the licensure and regulation of residential care facilities for the elderly by the State Department of Social Services. This law sets forth notice and other requirements that must be met before a residential care facility for the elderly can evict a resident. This bill further requires that a licensee who sends an eviction notice to a resident include specified information, including, but not limited to, information regarding the resident's right to file a complaint against such eviction proceeding.
Position: Watch   Status: Enrolled to Governor



Swimming Pool Safety
AB 1020 (Emmerson) Anti-Entrapment Devices Required in Swimming Pools - AB 1020 (Emmerson) Swimming Pool Anti-Entrapment Devices - The federal "Pool & Spa Safety Act," (ACT) enacted in 2007 and effective at the end of 2008, requires all "public pools and spas" to be equipped with anti-entrapment drain devices. The definition of "public pools and spas" includes pools open to the public as well as pools in apartment complexes, residential real estate developments and multi-family apartment buildings. AB 1020 proposes to enact the substantive portions of the federal ACT in state law, in order to allow these requirements to be enforced by state and local agencies. Specifically, this bill would require a "public swimming pool" constructed or renovated after December 18, 2009 to be equipped with an anti-entrapment device or system that meets federal safety requirements. Any pool constructed prior to December 18, 2009 must install an anti-entrapment device by December 19, 2011. C.A.R. favors AB 1020 because it seeks to make state and federal law consistent.
Position: Favor   Status: Enrolled to the Governor

Unlawful Detainer
AB 1171 (Ammiano) Attack on Ellis Act - AB 1171 (Ammiano) Tenant Notice Requirement - The "Ellis Act" requires rental property owners in rent controlled jurisdictions to provide tenants with a 120-day notice of termination of tenancy when removing residential rental property from the rental market. Tenants who are either disabled or are senior citizens (62 years of age or older) are entitled to a notice of one year. AB 1171 was amended in early April to require landlords electing to "go out of business" to give all tenants a one-year notice of termination of tenancy if even one disabled or senior citizen resides in the rental property's units. C.A.R. strongly opposes AB 1171 because it discourages investment in rental housing, places a substantial limitation on a property owner’s right to legitimately take a property off the rental market, negatively affects property values, and could cause substantial financial losses to rental property owners.
Position: Oppose   Status: Assembly Housing and Community Development Committee

SB 782 (Yee) Restriction on Unlawful Detainer Actions Involving Domestic Violence - SB 782 (Yee) Domestic Violence and Residential Tenancies - The City and County of San Francisco enacted an ordinance in 2008 to provide protections for tenants who are victims of domestic violence or sexual assault or stalking, including protection from evictions based on the actions of abusers or stalkers. SB 782 was amended to emulate this ordinance in State law. SB 782 intends to build upon protections for victims of domestic violence established last year by AB 2052 which authorized a tenant to notify the landlord in writing that he or she was a victim of an act of domestic violence, sexual assault, or stalking and, after meeting specified pre-conditions, could terminate the tenancy. As amended, SB 782 provides that the conduct of an abuser may be a defense to an eviction of the victim tenant when the notice to vacate is substantially based on the abuser’s act or acts that constitute domestic violence, sexual assault or stalking. The bill also provides confidentiality protections to the victim, regarding information provided to a landlord about the abuse. Lastly, the bill permits a court to order the eviction of an aggressive tenant who has perpetrated the domestic violence. AB 782 has technical inconsistencies with last year's AB 2052 and C.A.R. will maintain a "Not Favor" position until these deficiencies are eliminated from the bill.
Position: Not Favor   Status: Assembly Judiciary Committee




General landlord Tenant Bills
AB 473 (Blumenfield) Recycling Services Requirements for Multi-Family Dwellings -
The California Integrated Waste Management Act of 1989, administered by the California Integrated Waste Management Board, requires local jurisdictions to develop a source reduction and recycling element in their integrated waste management plan. This bill would require an owner of a multifamily dwelling (a residential facility that consists of 5 or more living
units) on and after July 1, 2010, to arrange for recycling services that are appropriate and available for the multifamily dwelling and are consistent with state or local laws or requirements.
Position: Watch   Status: Enrolled to Governor

AB 530 (Krekorian) Regulation of Controlled Substances and Firearms on Rental Property - C.A.R. supported AB 1013, signed into law in 2007, which created a pilot program in the cities of Los Angeles, Long Beach, Oakland, San Diego and Sacramento to allow landlords and property managers to serve tenants with an unlawful detainer notice for creating a nuisance on the premises if the tenant illegally possesses weapons or ammunition. Local prosecutors and city attorneys are also permitted to serve the unlawful detainer action to criminal tenants constituting the nuisance on behalf of the community. This authority exists only until January 1, 2010. AB 530 would have eliminated the sunset date and expanded the enforcement authority statewide. C.A.R. supported AB 530 because it would have provided an important tool for landlords and property managers to help rid neighborhoods of dangerous tenants who illegally possess weapons or ammunition. The scope of bill was reduced and as amended the bill only serves to extend the sunset date to January 1, 2014 on the existing program.
Position: Watch as Amended   Status: Enrolled to the Governor

AB 1186 (Blumenfield) Employee Parking and Required Disclosures by Lessors re Cash-out Programs - In any air basin designated as nonattainment for certain air quality standards, an employer of 50 persons or more that provides a parking subsidy to employees, is required to offer a parking cash-out program. This bill would require a lessor that enters into or renews a lease with an employer subject to the requirement above, on or after January 1, 2011, to list the amount of parking costs as a separate line item in the lease or provide a list of parking costs to the lessee within 30 days after the lease is entered into or renewed.
Position: Watch   Status: Enrolled to Governor

IV. Standard Forms Advisory Committee (SFAC) Property Management Study Group - A Report
The purpose of this study group will be to review the existing property management forms as well as make recommendations for improvements to the SFAC. Additionally, this study group will serve as a focus group for property management products and services for REBS. The Study Group’s report would be due to the SFAC no later than the October 2010 business meetings.

V. Renovations, Lead and the EPA
Beginning in April 2010, federal law will require that contractors performing renovation, repair and painting projects that disturb lead-based paint in homes, child care facilities, and schools built before 1978 must be certified and follow specific work practices to prevent lead contamination. Until that time, EPA recommends that anyone performing renovation, repair, and painting projects that disturb lead-based paint in pre-1978 homes, child care facilities and schools follow lead-safe work practices. The contractor should follow these three simple procedures: Contain the work area; minimize dust; and clean up thoroughly.
To read about EPA's requirements go to: www.epa.gov/lead.



VI. Other Business


VII. Adjournment

* * * * *

8:00 am - 9:00 am

Open Forum: State Withholding Requirement for 7% of Out-of-State Owners' Rents - Don Readinger, Chair
Franchise Tax Board Guidelines for Property Managers - In February 2009, the Franchise Tax Board issued new guidelines "reinterpreting" existing regulations stating that residential rental property managers must begin withholding a portion of the rent collected from a California residential property before sending the proceeds to an out-of-state client. This rule applies only to out-of-state owners. While commercial property has been subject to this withholding requirement for a number of years, this was the first time that this rule would apply to residential rental property. Under the old guidelines, residential property was expressly exempted from the withholding requirement.

After the intervention by the California Apartment Association and CAR, the FTB agreed to delay the implementation of this withholding requirement for property managers of residential property until 2010. Instead it will use 2009 to educate property managers and companies about the requirement and work to get into full compliance by 2010. The CAA and CAR will work with the DRE and FTB to make sure that property managers by doing so will comply with DRE trust fund rules.

I. Panel Presentation by Representatives from the Department of Real Estate (DRE)
and Franchise Tax Board (FTB)


II. Q & A - Open to all in attendance