The Landlord Times - Colorado - May 2013

Tax reform must be comprehen-sive and take special care not to harm the thousands of businesses involved in multifamily real estate nor the 35 million Americans who call an apartment home. This was the focus of testimony by the National Multi Housing Council (NMHC) and the National Apartment Association (NAA) before the House Committee on Ways and Means recently.

Representing NMHC and NAA, Thomas Moran, Chairman and Managing Partner of Moran & Company, testified on the need to meet the housing needs of what the Harvard Joint Center for Housing Studies research suggests is up to seven million new renter households this decade.

“Like many other small business-es, the apartment industry has a considerable stake in tax reform. In addition, we provide homes for mil-lions of Americans covering the entire socioeconomic spectrum," said Moran. "An estimated 300,000 to 400,000 units a year must be built to meet expected demand; yet just 158,000 apartments were delivered in 2012 – not enough to even replace the units lost every year to demoli-tion and obsolescence."

To meet the ongoing demand for rental housing, the apartment indus-try asks Congress to:• Ensure that tax reform is compre-

hensive and does not reduce cor-porate taxes at the expense of small businesses.

• Maintain the current treatment of carried interest to help offset the considerable financial risks in real estate.

• Retain the 100 percent deduction for business interest.

• Protect the Low-Income Housing Tax Credit program, which is responsible for more than 2.4 mil-lion affordable apartment homes.

• Respect the estate tax legislation enacted as part of the American Relief Act of 2012.

• Modify the section 179D Energy Efficient Commercial Buildings Tax Deduction to enable more properties to qualify for the incen-tive.“The apartment industry builds

vibrant communities by offering

Not long ago, it was common to smell cigarette smoke in Washington workplaces and restaurants. But with mounting evidence that sec-ondhand smoke causes disease and death, and the passage of Washington’s smoke-free indoor air law, people have come to expect clean air where they work and live.

Secondhand smoke can cause heart attacks, lung cancer, and trig-ger longer and more severe asthma attacks in children. It is responsible for an estimated 49,400 deaths among non-smoking adults in the U.S. each year. Yet the home remains one of the most common places where peo-ple continue to be exposed—often due to secondhand smoke drifting from a neighboring unit or patio.

Today, no-smoking rules are becoming the norm. In fact, ninety-two percent of Washington renters prefer smoke-free housing. Over the last 10 years, thousands of rental properties across Washington and the nation have gone smoke-free. The trend reflects the benefits of reduced cleaning and turnover costs, fire and property damage preven-tion, and cleaner, healthier residenc-es.

The key to successfully imple-menting a no-smoking rule is clear and consistent enforcement. Taking the rule seriously from the start, and ensuring that it applies equally to all residents, will send a clear message that smoking is not allowed.

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U.S. Housing and Urban Develop-ment (HUD) Secretary Shaun Dono-van recently awarded $1,237,701 a second round of grants to support 9 local homeless housing and service programs in Colorado. Provided through HUD’s Continuum of Care programs, funding announced re-cently will ensure these HUD-assisted local homeless assistance programs remain operating in the coming year. Last March, HUD awarded additional support to hundreds of other existing local programs and will make a third round of funding to support selected new projects later this year. View a complete list of all the Colorado homeless projects awarded funding.

Obama Administration Announces $1,237,701 to Continue

Helping Homeless Persons and Families in Colorado

Continued on page 2

HUD grants renew support for 9 local housing and service projects

Continued on page 3

Clearing the Air: Best Practices for

Enforcing Smoke-free Rules

Continued on page 3

Apartment Industry Outlines Tax Reform Principles for Congress

“We know these modest invest-ments in housing and serving our homeless neighbors not only saves money, but saves lives,” said Dono-van. “These local programs are on the front lines of the Obama Admin-istrations efforts to prevent and end homelessness as we know it once and for all.”

HUD’s Continuum of Care grants are awarded competitively to local projects to meet the needs of their homeless clients. The grants fund a wide variety of programs from street outreach and assessment programs to transitional and permanent hous-ing for homeless persons and fami-lies. HUD funds are a critical part of the Obama Administration’s strategic plan to prevent and end homeless-ness.

“Despite fiscal challenges, HUD is proving its commitment to pre-vent homelessness through renewed investments in rental assistance, housing assistance and supportive

services,” said HUD’s Rocky Moun-tain Regional Administrator Rick M. Garcia. “Combined with the targeted efforts of our local communities, we’ll continue working to move homeless families and individuals to perma-nent housing.”

While the Fiscal Year 2012 funds awarded recently are not impacted by the automatic across-the-board budget cuts under sequestration that began March 1st, Donovan cautioned that future budget cuts may reverse significant reported declines in home-lessness: “During this challenging budget climate, we must make cer-tain that we don’t balance our books on the backs of our most vulnerable citizens. When we make even modest investments in these programs, we see a measureable decline in home-lessness.”

HUD recently announced its 2012 “point in time” estimate of the num-ber of homeless persons in Amer-ica. Approximately 3,000 cities and

counties reported 633,782 homeless persons on a single night in January of 2012, largely unchanged from the year before. While HUD found signif-icant declines among the long-term homeless and veterans, local com-munities reported an increase in the number of sheltered and unsheltered families with children. In Colorado, local communities reported a 10.9 percent overall rise in homelessness in 2012.

HUD’s Continuum of Care grants announced recently will continue of-fering permanent and transitional housing to homeless persons as well as services including job training, health care, mental health counsel-ing, substance abuse treatment and child care. Continuum of Care grants are awarded competitively to local programs to meet the needs of their homeless clients. These grants fund a wide variety of programs from street outreach and assessment programs to transitional and permanent housing for homeless persons and families.

In 2010, President Obama and 19 federal agencies and offices that form the U.S. Interagency Council on Homelessness (USICH) launched the nation’s first comprehensive strategy

to prevent and end homelessness. Opening Doors: Federal Strategic Plan to Prevent and End Homeless-ness puts the country on a path to end veterans and chronic homeless-ness by 2015 and to ending home-lessness among children, family, and youth by 2020.

HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and pro-tect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable com-munities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and http://espanol.hud.gov. You can also follow HUD on twit-ter @HUDnews, on facebook at www.facebook.com/HUD, or sign up for news alerts on HUD’s News Mailing List.

2 The Landlord Times - Colorado • May 2013

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The following guidelines will help establish your no-smoking rule:

• Write the policy into your lease. Make sure all current and new residents know where smoking is and is not allowed, and that the rule also applies to their guests.

• Advertise your property as “no smoking.” Research shows that many renters are even willing to pay more for smoke-free housing.

• Tell prospective residents that the building is smoke-free before they apply for an apartment, and remind them as they move in.

• Post signs that clearly identify the smoke-free areas on your proper-ty.

• Offer support to help residents quit smoking. Research shows that

smoke-free housing can help resi-dents quit. Useful tools are avail-able at www.SmokeFreeWashing ton.com.

Property managers, owners and residents can work together to estab-lish smoke-free housing. When you visit the property, ask residents if they are happy with the rules, and take note of anything that might indicate smoking, like cigarette butts or ashtrays for example.

If you learn that a resident is smoking, enforce the rule like any other. Consider having a friendly face-to-face chat to remind them that they live in a smoke-free property. If there is a second incident, follow up with a nice but firm warning letter that outlines the next steps.

Damage like burn holes, stains and carpet odors are expensive to clean when a resident moves out. Some vendors charge more for car-pet cleaning or painting due to smoke damage. You may want to use a third party vendor to verify smoke dam-age and note the charges on the resi-dent’s move-out security deposit statement.

Free resources, including an online guide to going smoke-free, are avail-able at www.SmokeFreeWashington.com. Visit the site to read stories from other landlords, and to find tools to help you with the process.

Ultimately, going smoke-free is a win-win for you and your residents. One year after my company went smoke-free, an independent resident survey found that nearly three-quar-

ters of all residents were happy with the policy—and 43 percent of resi-dents who smoked even reported smoking less!

Smoke-free housing can promote better business and, ultimately, bet-ter health. Going smoke-free is the perfect way to protect your bottom line and do the right thing for resi-dents and staff.

Amanda Clark is a senior portfolio manager with Guardian Management LLC, a division of Guardian Real Estate Services in Portland, Oregon that man-ages 280 properties in 7 states. www.gres.com

housing choice, supporting local small businesses, creating millions of jobs and contributing to the fabric of communities across the country. In fact, apartment homes and our 35 million residents contribute $1.1 tril-lion annually to the economy and help support nearly 26 million jobs,” Moran added.

For more than 20 years, the National Apartment Association (NAA) and the National Multi Housing Council

(NMHC) have partnered on behalf of America’s apartment industry. Drawing on the knowledge and policy expertise of staff in Washington, D.C., as well as the advocacy power of 170 NAA state and local affiliated associations, NAA and NMHC provide a single voice for devel-opers, owners and operators of multi-family rental housing. Apartments and their 35 million residents support more than 25 million jobs and contribute $1.1 trillion to the economy. To learn more about apartments, visit www.weareapart-

ments.org. For more information, con-tact:

NMHC at (202) 974-2300 or [email protected] or www.nmhc.org.

NAA at (703) 797-0616 or [email protected] or www.naahq.org/

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