NAA/NMHC secured a significant victory when the U.S. House of Representatives passed a bill to reform the Section 8 voucher program (H.R. 1851) on July 12. The bill not only makes much-needed changes to the often cumbersome housing voucher program, but NAA/NMHC staff worked closely with legislators to secure a favorable amendment related to the U.S. Department of Housing and Urban Developmentís (HUD) recently released—and onerous—Guidance regarding Limited English Proficiency (LEP).

The LEP Guidance, which went into effect on March 7, requires federally funded apartment owners to translate a broad array of documents into multiple languages and to provide verbal translations for those who do not read in their native language. NAA/NMHC filed a lawsuit against HUD, asking a federal judge to strike down the overly vague and burdensome requirements. We have also been working on a legislative solution while the lawsuit works its way through the courts. Thanks to our advocacy, H.R. 1851 includes an amendment requiring HUD to translate both its own official vital documents and selected non-HUD property documents into any language the Department identifies as necessary, and to provide a HUD-funded and HUD-administered toll-free 800 number for oral interpretation needs.

The measure also includes several NAA/NMHC-requested changes for the Section 8 voucher program, including language amending the inspection process to eliminate unnecessary delays and duplication. In addition, the measure simplifies rent calculations, authorizes 20,000 new vouchers a year for the next five years, and fixes a flawed voucher funding formula implemented by HUD in 2004 to make the program more stable. While the House-passed bill represents a big victory for NAA/NMHC, it is still up to the Senate to move similar legislation. The prospects for that are very unclear at this time.

Pundits have long noted Noah built his arc well before it started to rain. His first career must have been in politics.

2006 brought dramatic changes to the leadership of Harrisburg and Washington. But while other organizations may be anxious about reduced influence with the newly installed Democrat “powers that be”, we can simply continue with our vigorous advocacy on behalf of the apartment industry. AAGP and the Pennsylvania Apartment Association have never waited for a change in the political forecast to pursue open dialogue with members of each major party. We have routinely communicated with Democrats and Republicans and we are well positioned to continue our roles as the authoritative voices on issues that affect multi-family housing.

Our lobbyist Kim Sokoloski regularly communicates with Harrisburg Democrats and Republicans in both the House and Senate and keeps everyone well acquainted with our issues. Additionally, we are long time supporters of the new State Senate pro tempore Joe Scarnati and majority leader Dominic Pileggi. In 2007 Kim will be representing PAA as a new member of the Government Relations division of Buchanan Ingersoll and Rooney, a firm known for its contacts with a cross section of General Assembly members.

2006 also saw our increased participation in the efforts of the National Apartment Association to address important national issues. A sizable Pennsylvania contingency attended the 2006 Capitol Conference and met with several Representatives as well as then Senator Santorum. We advanced our position on national issues such as the need for a balanced housing policy that equally addresses the interests of apartment residents and home owners. We have also been proactive on task force activities that are tackling problems such as inspections laws and immigration reform.

Locally, our fight against inspections ordinances and the dangerous Philadelphia Rental Suitability Certificate requirement continue in the New Year. We routinely track legislative activity in major municipalities and take proactive action, including providing testimony and active lobbying, on pertinent bills.

The following is a summary of the year's government affairs activities:

LOCAL:
Philadelphia Rental Suitability Certificate: The ill-conceived ordinance which requires owners to promise to maintain their properties virtually free of defects, creates serious liability for landlords even for inconsequential maintenance code violations, and allows tenants to live rent free in many cases where License and Inspections records are not accurate, went in to effect in September of 2006. The bill was hastily written and rushed in to law early in the year. It was introduced by City Councilman Mariano just before he went on trial for mail fraud, money laundering and other charges. He has since resigned his seat and is now serving time in federal prison. But this destructive ordinance remains in effect.

AAGP tried throughout the year to convince city officials to revise this onerous law that will only serve to deter good landlords from doing business in Philadelphia. Throughout 2006 we presented testimony to City Council, wrote Council members and met with Council and L & I officials. Our last resort was litigation. We continue to pursue the lawsuit we filed in October of 2006.

Inclusionary Zoning: We are actively lobbying Philadelphia City Council regarding the proposed bill that would require developers to devote a percentage of residential units to low-income tenants, or, alternatively, contribute money to an affordable housing fund. The lesson from other cities is clear: inclusionary zoning is not effective in producing significant numbers of affordable housing units.

Philadelphia Gas Works (PGW): PGWís Landlord Cooperation Program (LCP) continues in its pilot program phase until August of 2007. The LCP is designed to protect owners against PGW placing liens on their rental properties for unpaid tenant gas bills. By law, the City owned PGW is entitled to place liens on owner properties if tenants become delinquent in their gas bill payments. PGW will not place liens on the properties of landlords who enroll the property in LCP. AAGP continued to play an active role in the task force comprised of representatives from various real estate and multi-family housing organizations that is monitoring the progress of the pilot program. The task force routinely met with PGW throughout 2006 in order to troubleshoot and modify the program. This working relationship will continue in 2007.

Philadelphia Department of Licenses and Inspections: Although we find ourselves on opposite sides of the Rental Suitability Certificate Lawsuit, our efforts to maintain communication with officials at L&I were not abandoned in 2006. Commissioner Robert Solvibile and Deputy Commissioner Dominic Verdi met with members of AAGP in March of 2006 to discuss issues important to owners of large multi-family housing. We value this important dialogue and, Mariano's anti-apartment Rental Suitability ordinance notwithstanding, will work with L&I, focusing on the workable laws already in place that protect tenants and assure strong communities for the nearly 300,000 rental housing citizens of Philadelphia.

STATE:
Kim Sokoloski, our Harrisburg lobbyist, joined the firm of Buchanan Ingersoll and Rooney. Through the years Kim's personal efforts were responsible for creating a positive presence for PAA in Harrisburg. We followed Kim to Buchanan for our lobbying services.

Abandoned Property Legislation: After extensive communication with Kim acting as our representative, and realizing this issue's importance to the financial health of apartment community owners, Senator Pileggi introduced a bill that would require certain procedures when dealing with tenantsí abandoned personal property. The bill did not survive the end of the legislative session, but our issues were clarified and assured of consideration in future legislation.

Meth Labs: Crystal meth labs are everywhere. Single family homes, mobile homes, commercial buildings and apartment buildings throughout the country have become sites for extremely dangerous clandestine drug laboratories that produce the illegal, potent and highly addictive substance. The manufacturing process produces highly hazardous vapors that are poisonous to mucous membranes, skin, eyes and respiratory tracts. The chemical ingredients, when combined, are highly volatile. The by-products can soak into porous surfaces such as countertops, drywall, and fabrics. They can also circulate through an HVAC system, easily spreading containments throughout the building. No one denies the need to address the many serious problems created by meth labs. What is needed is comprehensive legislation that creates well defined remediation and decontamination parameters. Additionally, apartment owners must not be singled out as the targets of onerous statutes.

Legislation was introduced in Pennsylvania in 2006 that would have placed irrational requirements on landlords to forever disclose to prospective tenants the fact that an apartment had been used as a clandestine drug laboratory. But its sponsors were willing to listen to our objections. Upon receiving our written response, the bill's sponsor, State Senator Robbins, offered to work with us in 2007 to, “hammer out legislation” addressing our concerns.

We have formed a task force among our Legislative Committee members and are in contact with Senator Robbins” staff who asked us to provide information and model language for responsible legislation. The Senator's staff has welcomed our input and support.

PA Housing policy and testimony: We submitted testimony to the PA House Urban Affairs Committee outlining our position on the vital role rental housing plays in healthy community development.

Inspection laws: The above testimony included a presentation on our position on the need for parity in rental inspection laws throughout Pennsylvania. Countless municipalities small and large have passed their own versions of multi-family inspections statutes. There is no evidence to show inspections programs are effective. They only serve to create a stream of revenue for the municipality. We are in the process of formulating an approach to legislation that would allow our Association to offer self inspection alternatives. We are also assisting in the NAAís efforts to bring logic and reason to inspections laws around the country.

Lead Paint: The Pennsylvania House Urban Affairs and Health and Human Services Joint Informational Meeting on Lead Poisoning welcomed our written testimony on the issue of whether there is a need for state legislation regulating lead-based paint. The Federal framework regulating lead-based paint is well established and effective, and state regulation would be superfluous. We would oppose measures that would adopt a statewide, one-size-fits-all approach requiring expensive interventions of dubious usefulness.

Lead Paint: The Pennsylvania House Urban Affairs and Health and Human Services Joint Informational Meeting on Lead Poisoning welcomed our written testimony on the issue of whether there is a need for state legislation regulating lead-based paint. The Federal framework regulating lead-based paint is well established and effective, and state regulation would be superfluous. We would oppose measures that would adopt a statewide, one-size-fits-all approach requiring expensive interventions of dubious usefulness.

NATIONAL:
Immigration: We have been monitoring the various illegal immigration ordinances that are popping up all over Pennsylvania. We are also assisting with the National Apartment Association's efforts to influence immigration policy as it relates to the apartment industry.

Several PA communities have followed the town of Hazleton PA and passed ordinances requiring landlords to be responsible for monitoring, in one form or another, the immigration status of tenants. These ordinances are often poorly written with little study devoted to constitutional issues. Hazelton has changed its law at least four times in the last year in response to criticism and the federal lawsuit recently filed by civil rights groups.

Our main objection to many of these local laws concerns the role they typically assign to landlords. Landlords are often placed in the position of having to verify immigration status, and the rights of immigrants who are legal residents are often jeopardized. Moreover, immigrant labor pools are widely used in the apartment industry. We support reforming federal immigration policy to enhance national security without placing unreasonable and costly burdens on landlords.

POLITICAL ACTION COMMITTEE: An ongoing and vital Government Affairs project, our PAC fund allows us to support key public officials and those who seek public office. It gives us access to those who have the power to affect policies that are crucial to our industry.

MEMBERS’ NETWORK: Our personal relationships with public officials are fundamental to advancing our interests. Office holders are most responsive to those whom they know personally. The time to develop contacts with your representatives in Washington, Harrisburg, and your own town is before we need anything. We will continue assisting individual members throughout 2007 in nurturing their personal connections with legislators.

MEMBER FEEDBACK: Members are invited to our Legislative Committee meetings, held on the last Tuesday of the month in AAGP offices. Please contact cgertz@aagp.com for details.

FOR MORE INFORMATION: Please feel free to contact cgertz@aagp.com for more information on any Government Affairs matter. Below is a checklist of the significant issues of 2006:

In 2004,Pennsylvania Legislature passed an act that gave landlord's the right to attach a tenant's wages for delinquent rent. On December 21, 2005, the Pennsylvania Supreme Court decided to curtail the landlord's right to attach a tenant's wages. As we all know we have three separate branches of government; the Executive, the Legislative and the Judiciary. The Legislature makes the law and the Courts interpret and enforce the law. This is true throughout our country ‚ everywhere except in Pennsylvania!

Respectfully submitted:
Christine Young-Gertz, Esq.
Government Affairs Director
Apartment Association of Greater Philadelphia

In 2004,Pennsylvania Legislature passed an act that gave landlord's the right to attach a tenant's wages for delinquent rent. On December 21, 2005, the Pennsylvania Supreme Court decided to curtail the landlord's right to attach a tenant's wages. As we all know we have three separate branches of government; the Executive, the Legislative and the Judiciary. The Legislature makes the law and the Courts interpret and enforce the law. This is true throughout our country—everywhere except in Pennsylvania!

Under the Pennsylvania Constitution, the Pennsylvania Supreme Court has the authority to suspend any law that is in conflict with its rules of civil procedure. The Pennsylvania Supreme Court also has the authority to promulgate rule of civil procedure to carry out the functions of the various courts throughout the State. In essence, the Judiciary in Pennsylvania uses the above authority to, in effect, write legislation.

The law that was passed by the legislature allows for a landlord to attach a tenantís wages based on a judgment against the tenant for rent owed. The law does not require that the judgment be obtained in a certain way or acted on within a certain amount of time. However, the Court recently determined that if a judgment was obtained where the tenant was not personally served or appeared at the hearing, then the landlord cannot attach the tenant's wages. The Court also put a 5 year time limit on the right of the landlord to attach a tenant's wages from the date of the original judgment.

The following chart shows other examples where the Court has suspended or nullified what the legislature has done:

Paul Jay Cohen, managing partner of Cohen & Willwerth, has been working diligently to get legislation passed to fix these and many other problems. Paul is the Chairman of the Landlord and Tenant Subcommittee to the Joint State Government Commission Advisory Committee on Real Property Law and is in the process of re-writing the Landlord and Tenant Act. He can be contacted at info@cohenwillwerth.com or (215) 887-8100.

By: Harvey M. Sachs, Ph.D.

• As of January 23, 2006, central air conditioners and heat pumps manufactured or imported for use in residential buildings must meet a new, higher energy-efficiency standard, from a 10 Seasonal Energy Efficiency Ratio (SEER) to a 13 SEER. This is a major change for the air conditioning industry and will require a redesign of its offerings as the market makes the transition to the new 13 SEER standard.



• This White Paper addresses apartment firm concerns about:
  
    1. the continued availability of spare parts and refrigerants for SEER 10-rated equipment;
  
    2. the size of the new SEER 13-rated equipment; and the cost of the new SEER 13-rated equipment.



• It explains what apartment owners must do to comply with the new standards and identifies best practices and design considerations for new and existing construction to maximize efficiency and minimize costs.



• It concludes with Frequently Asked Questions on equipment issues, regulatory issues and business considerations.



• Recommended Distribution: Property Managers Construction Managers Acquisition Managers Maintenance Managers

WASHINGTON, DC – The National Multi Housing Council (NMHC) and National Apartment Association (NAA) commend Congress and the President for their swift action in enacting the Junk Fax Prevention Act (S. 714), which protects consumers from unsolicited faxes while also preserving the ability of businesses to communicate with their customers. President Bush signed the measure into law on July 9.

NMHC/NAA Vice President of Property Management Jeanne Delgado issued the following statement after the bill’s enactment.

“This is a tremendous victory for the apartment industry. Without this measure, as of July 1, 2005 federal regulations would have required all businesses and organizations to collect written consent forms before sending commercial faxes to anyone, even to those with whom the firm has an established business relationship (EBR).

While the proposed regulations were a well-intentioned effort to respond to rising consumer frustration with unsolicited marketing faxes, the unintended consequences of the rules would have created a monumental and costly administrative burden on businesses.

The Junk Fax Prevention Act strikes the right balance by adding new consumer safeguards, but also preserving the right of trade associations to send commercial faxes to their members and apartment firms to send faxes to existing, prospective and prior residents as well as suppliers.”

NMHC and NAA operate a Joint Legislative Program and represent the nation’s leading firms participating in the multifamily rental housing industry. NMHC/NAA’s combined memberships are engaged in all aspects of the development and operation of apartment communities, including ownership, construction, finance and management. Together, the organizations operate a federal legislative program and provide a unified voice for the private apartment industry. Nearly one-third of Americans rent their housing, and almost 15 percent of all U.S. households live in an apartment home. For more information, contact NMHC at 202/974-2300, e-mail the Council at info@nmhc.org, or visit NMHC’s web site at www.nmhc.org.

On April 12th, Darlene Buick, Marcia Cashdollar and Pat Castille of WPAA attended the Inaugural Meeting of the Pennsylvania Apartment Association. Because of the growth in our region, we met to formalize PAA's structure, purpose and goals. We were greeted by other officers and board members from the Apartment Association of Greater Philadelphia and the Apartment Association of Central Pennsylvania.

The meeting was held in Harrisburg and we were introduced to our state contract lobbyists: Dan Clark, Rocco Pugliese and Kim Sokoloski all of Pugliese Associates.

Also in attendance at the luncheon meeting were Senator Dominic Peleggi, Chair of the Senate Urban Affairs Committee and Representative John Taylor, Chair of Urban Affairs Committee. A special report was also given by Jay Cohen, Joint Task Force, Chairman of the Subcommittee on Landlord and Tenant Law.

The meeting was productive and very informative. Each member was given the opportunity to discuss and/or ask questions of the Senator and Representative. Lou Derr, Executive Director for Senator Pileggi has been working with our State Association and was recognized for her efforts.

Click here for Legislative Update Newsletters and links on the Pennsylvania Apartment Association web site.