Articles by Cliff Hockley, CPM

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Articles by
Cliff Hockley

By Cliff Hockley, President
Bluestone and Hockley Real Estate Services

All landlords are faced with challenges of many types when operating their properties. One of the most difficult challenges to get your arms around are regulatory and legislative changes.

As a representative of Building Owner and Managers Association (BOMA) and Institute of Real Estate Management (IREM), I have been involved with monitoring these issues for over 15 years. I can truly say we have more issues at many different levels to face than ever before.

Let’s start with building operation issues. BOMA’s Operations and Codes Committee has been following these issues:

Boiler Inspections: Move inspections from a 2 year to a 6 year inspection cycle unless there is a safety concern.
CROW (Containers in the Right of Way): The city of Portland has been trying to get Metal rubbish containers out of the street and stored inside of buildings. Final Meeting is on 2/27/07 before it goes to city council.
Electrical/Elevator Board: BOMA was instrumental in switching inspections to a two year cycle from an annual cycle
ADA Interpretations for Remodeling: an issue that is being watched
TIBC (International Building Codes) Issues: BOMA is reviewing new rules
Fire Escapes: Looking into a list of architects that can advise building owners how to remove fire escapes
Fire Code Inspections (#CP): Moved to annual inspection- used to be every 5 years
IBC Issues: BOMA Codes Committee is reviewing New rules
Solid Waste: Move by the City to franchise commercial garbage hauling in addition to the already existing residential franchising arrangements.

Bills in the Oregon Legislature
There are many bills in the house and senate that BOMA and IREM are following. Some of these will be passed because they have significant support. Some will die in committee. They affect all areas property ownership. There are revisions to the mobile home park laws, the Condominium Act, the Landlord Tenant Act, construction defects and construction laws, and the laws affecting the overtime pay for your onsite managers and maintenance technicians.

The proposed laws also affect the real estate agency and propose a major overhaul of the agency. They also discuss changes to the law regarding Tenant in Common interest.

The best way to get more information regarding the bills is to read them at the Oregon Legislature website and then to contact the legislative reps for the different associations that lobby on your behalf. (i.e. Building Owner and Managers Association( BOMA), Institute for Real Estate Management( IREM), Metro Multifamily Housing, and the Rental Housing Association of Greater Portland, Manufactured Housing Communities of Oregon (MHCO), Commercial Association of Realtors, The Oregon Association of Realtors, Oregon Rental Housing Association.) All of these organizations have web sites that will then lead you to the legislative staff the executive staff, or their legislative volunteers.

To follow, I have provided a non-exclusive summary of bills we are watching right now:

HB 2541	Limits Authority of a city or a county to impose a business tax on real estate licensees. Requires Real Estate Agency to develop handout describing rights and responsibilities of tenant.
HB 2545	Limits reasons for which residential landlord may terminate month-to-month tenancy without cause.
HB 2539	Expands Membership of The State Plumbing Board.
HB 2655	Requires general contractor constructing new residential dwelling unit to provide purchaser with a warranty for workmanship and materials.
HB 2656	Establishes certification system for building envelope specialists and building envelope installers.
HB 2657	Requires contractor undertaking residential construction or improvement work on residential structure to provide owner with a written contract.
HB 2658	Establishes Oregon Construction Defect Limited assistance fund.
HB 2659	Allows construction Contractors board to investigate financial and criminal history of applicants for licensing.
HB 2665	Revises Provisions regarding Condominiums and HOA's.
HB 2666	Revises Provisions regarding Condominiums and HOA's.
HB 2673	Revises the Wage and Hour Rules to allow overtime for work exceeding 8 hours in a 10 hour working day.
HB 2735	Regarding mobile home park closure rules.
SB 38	Establishes Fee for recording documents, to fund programs for low income housing in the Housing and Community Development department.
SB 116	Regarding Towing of vehicles and authorizing Attorney general to adopt rules.
SB 167	Clarifies authority of Real Estate Agency to issue real estate licenses only to individuals. This bill also has an attachment that allows for property managers to keep records out of state.
SB 168	Authorizes Real Estate Commissioner to allow late renewal of expired escrow agent licenses.
SB 324	Reorganizes Real Estate Agency.
SB 388	Requires drivers, operators and controllers of towed vehicles to post towing rates on vehicles.
SB 389	Requires landlord that has business arrangement with towing business to notify tenants of amounts charged by business for recovery of vehicles towed from rental property.
SB 390	Requires that landlords agent give tenant 24 hours notice before tenants motor vehicle may be removed from rental parking space.
SB 431	Prohibits certain business practices and requires other business practices by towers of motor vehicles.
SB 437	Allows removable of recyclable materials from solid waste disposal receptacles.
SB 449	Regarding Tenancy in Common Interests.
SB 488	Prohibits smoking within 75 feet of entrance to public place.
SB 561	Allows tenant to cause repair of minor defect in dwelling unit if a landlord fails to timely repair defect after tenant gives timely notice/Domestic Violence still on the table/waiver/towing.
OR RE Agency	Insure that temporary rules become permanent without changes

Federal Government: Rental agreements in how many languages?
On January 22, 2007 HUD issued final guidance clarifying the obligation of property owners who receive any federal assistance, including the Section 8 program, to accommodate people with Limited English Proficiency (LEP). The rules became effective February 21 and effectively require covered owners to translate a broad array of “vital” documents in multiple languages, such as resident applications, leases, lease attachment applications, facility rules, facility regulations, termination/eviction notices and more. They also require verbal translations of these documents for those who do not read in their native language. The HUD guidance is intended to comply with a 2000 Executive Order noting the need for federal agencies to comply with Title VI of the 1964 Civil Rights Act by ensuring that people with LEP have meaningful access to HUD programs and activities.

IREM has taken a strong stance on this position. Because of the hundreds of letters IREM members sent plus letters from members of other real estate related associations, HUD has pushed back the effective date of the guidance to March 7, 2007 and has scheduled a "guidance meeting," on the new LEP regulations.

The U.S. House of Representatives Financial Services Committee has approved their oversight plan for the 110th Congress. The plan includes a review of HUD's guidance on LEP. These rules could become onerous. It would make sense to print out the rules for yourself and to then send a letter to your congressman objecting to these requirements.

It is my position that all documents should be in English, since English is the official language of the United States. The cost of translating all of your essential forms into and keeping them current with ever-changing laws is onerous.

I encourage you to get involved and to monitor these issues; they affect you. Bear in mind our state legislators are easily accessible. Take advantage of that accessibility and call, write or visit them.