02 Sep September 2020
“Most people believe that the rental housing market will rebound and remain strong as a result of the high demand for affordable rental housing units.”
Greetings to all our AACSC members and supporters, and welcome to the September edition of the Official California Apartment Journal. Along with all our Board Members and staff we hope you and your families are safe and doing well in these ever changing times. It goes without saying this year has brought about unprecedented changes where many others just like us in the rental housing industry have sustained great losses. With that being said, we must remember that during these times we must remain optimistic and hold strong to the belief that working together we will be able to move forward in achieving legislative and public policy changes that are important to both tenants and rental property owners because we all share the same common interest.
It is also very important that we have your correct email addresses as legislative changes occur almost every day, and we want to keep you not only informed but engaged. There will be many legislative changes that will have taken place between the time this article was written and when you receive this publication, and it is through our electronic system we will be able to provide you the latest information.
As many of you are aware, I filed as the Petitioner on a lawsuit against Alex Padilla, Secretary of State for the State of California, on behalf of our industry regarding the new Proposition 21; however, and unfortunately, he ruled against us. This merely means we will have to come together in opposition as we did in the past, which at that time it was Prop. 10. Please be sure to carefully read the information in the publication from Ron Kingston, our Sacramento lobbyist, about the latest information on several pieces of legislation that have major impacts on how we do business.
Like most of you, I am going through a lot of information about the market and where we will land when all of this is over and we reach some level of normal for whatever that looks like. Some industry leaders have indicated that with lower than normal occupancy, many owners who are in a position to do so, are taking advantage of this time and upgrading vacant units. This is based on the theory that as the market picks up, tenants will be looking for properties where owners have made investments and improved these properties. As we all realize that many of our tenants are working from home, it appears that this may be the wave of the future. For many of us we feel the financial results of this with increased water usage as well as additional maintenance issues arising as a result of more people being at home.
Most people believe that the rental housing market will rebound and remain strong as a result of the high demand for affordable rental housing units.
There was a report out by Jones Lang LaSalle, Inc., that stated that office vacancy was down slightly; however, they did indicate that the reason it has not hit harder is a result of long-term leases. As players in one of the most important industries, we must continue to stay focused and informed in order to make the best decisions and at the right time. At the Apartment Association, California Southern Cities we are here to provide informative and timely information to you. It is important that you speak with your tax advisors because there are some short-term and long-term ramifications as a result of the COVID-19 Pandemic. It appears that there have been a few tax laws that were modified to help lessen the burden of the financial ramifications of the pandemic. As we get closer to the end of the year, we will provide you resources so that you can speak with your financial advisors to find out what options are best for you.
For those of you who were unable to attend our virtual General Membership meeting on August 27, 2020, regarding the new Proposition 21, we will be providing you updated information as legislation moves forward.
Once again, along with our Board of Directors and staff, we are here for you and we are just a phone call away. Stay safe, and I look forward to seeing each of you when it is safe for all of us to meet together.