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Help save the Mortgage Interest Deduction (MID)!

Addressing the National Association of Realtors in 1984, President Ronald Reagan said, "I want you to know that we will preserve the part of the American dream which the home-mortgage-interest deduction symbolizes."  I cannot believe that, less than thirty years later, any Congressperson would even think of proposing a limit to the Mortgage Interest Deduction.  If you are not sure of your understanding of the MID, or would like to know more about the history of it, the San Francisco Chronicle has a well-written, easy to understand article about it here.

While we all support efforts to reduce the deficit, further undermining the housing recovery cannot be the price that is paid. 
Click here to contact your Congressperson to ask him or her to defend the Mortgage Interest Deduction from any cuts or reduction as described in the Deficit Commission Report.

Here are some suggested talking points for you to use when you call or write your Congressperson:

  • The mortgage interest deduction helps middle-income families, who already pay nearly all U.S. income taxes.  More than 60% of the families who claim the mortgage interest deduction have household incomes between $60,000 and $200,000 (estimate from the NATIONAL ASSOCIATION OF REALTORS®).
  • A large number of high-income taxpayers live in areas where housing is very expensive, such as California and New York. In high-cost housing markets, lowering the $1 million cap would add a tax burden on families who already must pay high prices for homes.
  • Home owners already pay 80% to 90% of the income tax in our country.
  • Getting rid of the mortgage interest deduction would hurt home prices.  Home values would be likely to fall, due to buyers who lower the amount of their purchase offers that consider the loss of the mortgage interest deduction.
  • It’s wrong thinking to blame the mortgage meltdown to the fed’s support for home ownership. The meltdown was caused by lax underwriting and faulty ratings by credit rating agencies of the securities backed by the mortgage.

Hud Fair Housing Report Documents Progress, Identifies Challenges
-Press Release -HUD No. 10-156 -Shantae Goodloe

Report finds most complaints allege disability discrimination

WASHINGTON - The Department of Housing and Urban Development today released the Obama Administration's first annual report on the state of fair housing in America. HUD's Fiscal Year 2009 annual State of Fair Housing Report highlights the agency's progress in enforcing the Fair Housing Act, identifies challenges that remain, and demonstrates its commitment to acting now to end housing discrimination.

The report, which covers the last full fiscal year of HUD's complaint investigations and fair housing activities, was released during HUD's National Fair Housing Policy Conference in New Orleans. The report shows that discrimination based on a person's disability status continues to account for the largest-single category of complaints. Of the 10,242 complaints filed with HUD and its fair housing partners during fiscal year 2009, 44 percent alleged disability discrimination, while 31 percent alleged discrimination based on race, and 20 percent based on family status. The number and type of complaints received are consistent with the previous two years.

"Despite much progress and hard work, Americans continue to face housing discrimination because they're in a wheelchair, are a different color, or background, or have children," stated John Trasvina, Assistant Secretary for Fair Housing and Equal Opportunity. "This report is a stark reminder that HUD and our fair housing partners must redouble our commitment to end housing discrimination."

This year's report highlights HUD's enforcement efforts, including those that led to changes of policies and equal housing opportunities for racial and ethnic minorities, persons with disabilities, and others. The Department also handled an array of discrimination cases that resulted in compensation for the victims or pertained to families with children. For example:

  • HUD charged two Tallassee, AL, landlords with violating the Fair Housing Act for allegedly forcing a white family to move out of the house they rented to them after the landlords saw the family talking with African-American neighbors in their front yard. Three months after charging the case, HUD obtained a settlement that required the landlords to pay the African-American family $63,000.

  • HUD charged a Puerto Rico condominium association with violating the Fair Housing Act for denying a disabled couple the use of two handicap accessible parking spaces. A HUD Administrative Law Judge subsequently ordered the association to pay $25,000 in damages to the couple, and $10,000 in civil penalties for violating the couple's fair housing rights.

  • HUD charged an Atlanta condominium association and a local real estate company and its agent with discrimination for refusing to sell to families with children. The agent advertised a unit and conditioned the sale to those without children. During HUD's investigation, the agent admitted that several prospective buyers with children younger than 14 inquired about the unit and were told about the restriction.

  • In addition, the report highlights HUD's efforts to ensure that the agency's core housing programs are open to all, regardless of sexual orientation or gender identity. Last month, HUD announced that it will now require all applicants for Fiscal Year 2010 grant funding to certify that they have not been charged with a systemic violation of state or local laws that are equivalent to the Fair Housing Act based on a person's lesbian, bisexual, gay, and transgender status.

"HUD and its fair housing partners are on the front lines when it comes to fighting housing discrimination, and our job to prevent it is not complete without addressing 21st Century issues," stated Trasvina.

For additional information about the conference, log onto HUD's Web site: www.hud.gov/fairhousing. To read the annual report -go here.


Protecting Tenants at Foreclosure Act

The Protecting Tenants at Foreclosure Act1 protects tenants from eviction because of foreclosure on the properties they are renting. These provisions took effect on May 20, 2009, and will expire on December 31, 2012.

The tenant protection provisions apply in the case of any foreclosure on a “federally related mortgage loan” or on any dwelling or residential real property. They provide that “any immediate successor in interest” in such a foreclosed property, including a bank that takes title to a house upon foreclosure, will assume the interest subject to the rights of any bona fide tenant and will need to comply with certain notice requirements.

Under this law, the immediate successor in interest of a dwelling or residential real property must provide tenants with a notice to vacate at least 90 days before the effective date of such notice. Additionally, tenants must be permitted to stay in the residence until the end of their lease, with two exceptions:

(1) When the property is sold after foreclosure to a purchaser who will occupy the property as a primary residence or,
(2) When there is no lease or the lease is terminable at will under state law.


However, even when these exceptions apply, tenants must still receive 90 days notice before they may be evicted.

The protections of this law apply to tenants under a “bona fide” lease or tenancy. A lease or tenancy is “bona fide” only if:

(1) The mortgagor or a child, spouse, or parent of the mortgagor under the contract is not the tenant;
(2) The lease or tenancy was the product of an arm’s-length transaction; and
(3) The lease or tenancy requires the receipt of rent that is not substantially less than fair market rent or the rent is reduced or subsidized due to a federal, state, or local subsidy.

 MORE INFO


The Internet Evils Have Entered the Rental Business.
By Mike Hill, Georgia Landlord Solutions

The scammers will "hijack" a legitimate manager's ad, substitute themselves as the landlord and try to collect the deposit and first month's rent themselves for a property they don't own or manage.

I belong to the National Association of Rental Property Managers (NARPM), formed for those who manage houses and small rental properties, instead of apartment complexes, which is a different world. Following is a shortened story from a property manager in California who, like many others, advertises vacancies on Craig's List.

The manager had a house listed at $2,500 a month, but had the ad "hijacked" by someone who advertised the same property on Craig's List for only $1,500 a month using the current tenant's name as the landlord/manager, substituting the scammer's phone number and using a private P.O address to receive the deposit and first month's rent. Which worked.

The "new" tenant then confronted the current tenant, ready to move in which, of course, the current tenant didn't know anything about. The "tenant" then demanded the current tenant return his security deposit and rent money which, of course, the current tenant also didn't know anything about. That's also (of course) when the real landlord/property manager was dragged into the mess.

Turned out the new "tenant", by the way, was a police officer who, the manager said, should have suspected there was something wrong with a $2,500 house being rented for $1,000 less. To add insult to injury, whoever pulled the scam now has all the personal information the policeman put on the fake application. You know, stuff like his Social Security #, where he banks and his account number, his dog's name, the size of his gun .. plus his money.

If they catch that guy and he's gonna have a serious cop problem, I suspect.


Federal Laws that Apply to All Landlords
Jan Leasure

Fair Housing Laws:

Title VIII of the Civil Rights Act of 1968 (the Fair Housing Act) prohibits discrimination in the rental, and in other housing-related transactions, based on seven categories. In order to be sure you are in compliance with fair housing laws, you should be familiar with those seven categories and understand how they are applicable to the provision of housing. For specific information on tenants' rights under the Fair Housing Act, order our complete article.

JOIN NOW AND READ THE FULL ARTICLE TODAY!

Our complete article contains links to Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, Section 109 of Title I of the Housing and Community Development Act of 1974, Title II of the Americans with Disabilities Act of 1990, Architectural Barriers Act of 1968, Age Discrimination Act of 1975, and Title IX of the Education Amendments Act of 1972

Advertising: Our complete article contains a link to guidance for landlords to use in advertising property to insure the landlords' compliance with federal fair housing laws.

After September 11, 2001, landlords and property managers began developing security policies as a result of their concern for the possibility of future terrorist attacks. For information on how to insure that your policies are effective but fair, order our complete article.

Lead-based Paint

At the direction of Congress, who recognized that tenants have a right to know about potential lead hazards in the homes they rent, disclosure requirements were developed for landlords to make to their tenants when leasing homes built prior to 1978. These requirements became effective in 1996. To obtain a link to the rules and obtain the forms for disclosure, order our complete article. download form here. (FREE)

Fair Credit Reporting Act

The FCRA requires landlords, when they decline to rent to a rental applicant based in any way on a "consumer report" from a "consumer reporting agency," to provide an adverse action notice to that consumer. Our complete article describes how landlords may insure that they are complying with all aspects of the FCRA.

Immigration Laws

The Federal Immigration and Nationality Act governs the activities of "illegal aliens" and imposes penalties on those persons who assist them. In contrast to the federal law, some state laws prohibit inquiring about an applicant's citizenship status. Our complete article describes this dilemma in detail.

Subsidized Housing

Some Federal laws apply or have additional provisions that are applicable to landlords who receive certain funding, such as rental assistance, from the federal government. Our complete article contains links to detailed descriptions of specific programs with special provisions.

Mold

Despite the lack of specific legislation related to mold, mold has been the subject of countless lawsuits, many involving landlords and tenants, in the last ten or more years. Our complete article describes how landlords and managers protect themselves from liability where mold is concerned.

JOIN NOW AND READ THE FULL ARTICLE TODAY!


 
Favorite Quotes
 
"Trying to get everyone to like you
 is a sign of mediocrity." - Colin Powell

In the landlord biz, not everyone is going to like you.
So operate so that you like yourself.

 

 

WHEN ORDERING ARTICLES

PLEASE NOTE: You will receive an email with a link to the download area with a PASSWORD. Your USERNAME will be your email address you submitted when filling out the purchase form.

Keeping Up with the Law - $5.95

Federal Laws that Apply to All Landlords  -$9.95


Change to Megan’s Law Has Implications for Landlords
Jan Leasure

A hot topic among landlords and property managers is the emergence of the California Attorney General's sex offender database website. As you no doubt know, the California Department of Justice has maintained a 900 number to their Sex Offender Identification Hotline for some time. The law now requires that information about sex offenders be made available on an internet website. Previously, you, your residents, and the general public could only get sex offender information by personally visiting local law enforcement offices or by calling 1-900-448-3000.

However, the California Attorney General is now making available the registered home address of sex offenders who are believed to be the most serious offenders at www.meganslaw.ca.gov.

To read a discussion of the rules for the use of the database and the liability landlords may be assuming, whether they elect to use the database or not to use the database.  JOIN California Landlord Solutions NOW!


Keeping Up with the Law
Jan Leasure

The best landlords stay abreast of legal changes that affect the way they do business.  Eliminating the opportunity for a tenant to trip you on a technicality can drastically reduce the hassle factor of your business.

This article discusses changes in Section 1942 of the California Civil Code that are in effect as of January 2004.  This code section previously provided that a landlord is liable to a tenant for up to $1,000 when

  1. the landlord demands or collects rent on a building that is untenantable,
  2. the property has been inspected by a public officer responsible for the
    enforcement of any housing law,
  3. the public officer has provided a specified notice to a landlord, and
  4. the violations have continued to exist for 60 days


  5. The law now provides that a landlord is liable also when

  6. the landlord issues a notice of rent increase or
  7. issues a 3-day notice pursuant to an unlawful detainer action if Items 2 and 3,  above, exist, and
  8. the period of time that the violations need to have continued to exist is  reduced from 60 days to 35 days.

The amount that a tenant can collect under these provisions is increased from $1000.00 to $5,000.00.

The previous law permitted a landlord to bring an action for unlawful detainer and permitted the tenant to assert an affirmative defense that the landlord had failed in his/ her obligation to provide a tenantable dwelling or that the landlord had breached some other warranty of habitability.

The law provides that the landlord who institutes an unlawful detainer proceeding based upon a tenant's nonpayment of rent is liable to the tenant for reasonable attorney's fees and costs of the suit, in an amount to be fixed by the court, if the landlord is in violation of specified provisions of the Civil Code and the Health and Safety Code.

What are those specified provisions?  JOIN NOW AND GET THE DETAILS!

A revision to the security deposit law will require landlords to provide receipts to the tenants when deductions are taken from security deposits. The newest form provided in our forms library will help you comply with the new law. And, of course, as always, all forms are free to download for California Landlord Solutions members! Civil Code Section 1950.5 will require landlords to provide tenants with receipts when they use a tenant's security deposit for services, repairs, or cleaning to the rental unit. This new law takes effect January 1, 2004.

With some exceptions, landlords must provide tenants with the following no later than 21 days from the time that the tenant vacates the premises:

(This is the same as always) An itemized statement indicating the basis for, and the amount of, any security received and the disposition of the security and shall return any remaining portion of the security to the tenant; and

(This is the newer part) Copies of receipts, bills, invoices, or a vendor price list or other vendor document that reasonably documents the cost of the items purchased by the owner and used in the repair or cleaning of the unit.

For more details on this new law,
Join California Landlord Solutions now!


Increased Penalties for Bad Faith Retention of Security Deposit
Jan Leasure

The court may award damages for bad faith whenever the facts warrant such an award, regardless of whether the injured party has specifically requested relief. In any action under this section, the landlord has the burden of proof as to the reasonableness of the amounts claimed. Members of California Landlord Solutions will find the forms necessary to comply with this new legislation.

Forms currently available to our Members are on our site for this application include:

  • Notice to Resident of Right to Walk-Through
  • Notice of Date
  • Time of Walk-Through
  • Statement of Inspection during Walk-Through.

Join Now to Find Out More About Mold and What You Need to Know...........
Jan Leasure

In recent years, there has been an increase in media coverage of mold-related problems in rental property. While mold has always been present in our environment, there has been an increase in mold occurrences in buildings. 

This increase has been attributed to an aging building stock; new housing construction where porous materials may not have been kept dry during construction; and modern building techniques designed to conserve energy that also seal in moisture. 

In 2001, the U.S. Environmental Protection Agency issued mold remediation guidelines, and in California, legislation was passed that requires the Department of Health Services to establish standards for mold hazard identification, disclosure, and remediation. 

JOIN NOW AND READ THE FULL ARTICLE TODAY!


EPA Issues Regulations for Painting
Jan Leasure

If you are cutting or sanding painted surfaces on the inside or outside of your home, you can create hazardous lead dust and chips if your home happens to have lead-based paint, which was legal in the US until 1977. You are no doubt familiar with the disclosure requirement regarding lead based paint in homes built prior to 1978.

To further protect people from the risks of lead based paint, the EPA issued a rule requiring the use of certain prescribed lead-safe practices when disturbing painted surfaces of more than six square feet on the interior or more than 20 square feet on the exterior.

Under the new rule, contractors who undertake renovation, repair and painting projects that disturb lead-based paint in homes, child care facilities, and schools built before 1978 must be certified by the EPA. What does this mean in practical terms?

It means that firms performing renovation, repair, and painting projects that meet the above criteria be certified by EPA, and that they use certified renovators who are trained by EPA-approved training providers to follow lead-safe work practices. Thus, property management companies who perform their own repairs must become certified, or if they hire firms to do repairs, they must hire certified firms. If you are an owner-operator of your own rental property built before 1978, you must become certified if you do your own repairs.

If you hire contractors to do repairs for you, you must be sure they are certified. Individuals can become certified renovators by taking an eight-hour training course from an EPA-approved training provider. Click here to find out where to take a training course near you.

Alternately, if you have only one pre-1978 rental or just a few, you may wish to get an inspection by a Certified Risk Assessor, Lead Inspector or Certified Renovator who will certify the property to be lead-free, in which case the rule would not apply. The California Department of Public Health maintains an index of lead-certified professionals on their website. 


Carbon Monoxide Detectors to be Required by California Law
Jan Leasure

To prevent carbon monoxide poisoning, Senate Bill 183 was signed into law by  Governor Arnold Schwarzenegger on May 7, 2010.  This bill will require carbon monoxide detectors in all existing California homes by July 1, 2011. and apartments by January 1, 2013. The new law covers single-family housing, factory-built homes, condominiums, and apartments that have a "a fossil fuel burning heater or appliance, fireplace, or an attached garage".  That means any heater, appliance or fireplace that burns coal, kerosene, oil, wood, fuel gases, and other petroleum or hydrocarbon products, which emit carbon monoxide as a byproduct of combustion. In other words, unless the home is an all-electric home with a detached garage, it is covered by this law.

The carbon monoxide detector may be battery-powered, a plug in type, or it can be hard-wired with a battery backup. It can be combined with a smoke detector, but, if it is, it must emit "an alarm or voice warning in a manner that clearly differentiates between a carbon monoxide alarm warning and a smoke detector warning."  According to the new law, the State Fire Marshall is to certify and approve both the devices and their instructions, so property owners must install a detector that has been certified by the Fire Marshall. Once the Fire Marshall identifies the approved detectors, it will then be illegal to sell detectors that have not met the Fire Marshall's certification requirements.


Law Requires Landlord to Walk Thru with Resident!
Jan Leasure

There are a number of Landlord-Resident laws that savvy landlords need to be aware of. Most are very detailed, and one wrong move by the landlord can mean that his tenant will win an action against him.

One mandates a walk-through for a vacating resident and describes the required process. As of January 1, 2003, landlords must perform a walk-through with residents no earlier than two weeks prior to the termination of the tenancy if requested by the resident. If requested by the resident, the landlord, or an agent of the landlord, shall make an initial inspection of the rental at a reasonable time. This inspection is in addition to any final inspection the landlord or his agent may make after the resident has vacated the premises.

The intent of this new law is to give residents an opportunity to remedy identified deficiencies in the unit prior to move out. The landlord must notify the resident in writing of the resident's option to request a walk-through or an inspection of the premises within two weeks of the resident's departure. The landlord must also notify the resident of the resident's right to be present at the inspection. The purpose of the inspection is to allow the resident an opportunity to fix anything that is broken, to clean anything that needs cleaning, or to do anything else he needs to do in order to avoid deductions from the security deposit.

If a resident does not to request an inspection after being notified of his right to have one, no further action on the part of the landlord is required. If an inspection is requested by the resident, the landlord and resident must attempt to schedule the inspection at a mutually acceptable date and time. If a mutual time is agreed upon for the inspection, the landlord must give at least 48 hours prior written notice to the resident of the date and time of the inspection. The resident and the landlord may agree to forgo the 48-hour prior written notice by both signing a written waiver. If a mutually agreed time cannot be scheduled, the landlord must give at least 48 hours written notice to the resident of the date and time for an inspection.

The resident need not be present during the time of the inspection. If the resident is not present at the agreed-upon time, the landlord should continue with the inspection whether the resident is present or not, unless the resident previously withdrew his or her request for the inspection.
The inspection should be scheduled within a reasonable time after notification of either party's intention to terminate the tenancy, before the end of the lease term, but no earlier than two weeks before the termination of the tenancy or the end of the lease date.

The landlord must give the resident an itemized statement based on his inspection. The itemized statement should specify repairs or cleaning that the landlord plans to make the basis of any deduction from the resident's security deposit. This itemized statement must include the actual text of specified sections of the security deposit law (CA Civil Code section 1950.5). California law can be found online at www.leginfo.ca.gov/calaw.html  but don't panic. The language is available on the forms that are available on this site! The statement must be given to the resident, if the resident is present for the inspection, or should be left by the landlord inside the premises if the resident is not present.


During the time following the initial inspection until the end of the tenancy, the resident should be given a chance to remedy identified deficiencies, in order to avoid deductions from the security deposit. The landlord has the right to use the security deposit for deductions that are itemized in the statement that are not corrected by the resident, so long as the deductions are allowed by law.

Deductions allowed by law include the default by the resident in the payment of rent, the repair of damages to the unit, exclusive of ordinary wear and tear, caused by the resident or the resident's guests, the cleaning of the unit in order to bring the unit to the same level of cleanliness it was in at the inception of the tenancy, the failure of the resident to restore, replace, or return personal property or appurtenances, damage to the unit that occurred between completion of the initial inspection and termination of the tenancy, and damage to the unit that was not identified by the landlord during the initial inspection due to the presence of the resident's possessions.


 

Information and suggestions provided at this site are not intended to be legal advice. Only a California attorney can give you legal advice and explain to you how California law applies to your individual and specific circumstances. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult an attorney if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation. California Landlord Solutions is an affiliate of Landlordsolutions.org. View our Privacy Policy