Bluestone & Hockley | Portland Property Management https://www.bluestonehockley.com Portland Property Management Tue, 16 Oct 2018 18:24:30 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.8 Three Charitable Giving Solutions to Consider for Year End https://www.bluestonehockley.com/three-charitable-giving-solutions-to-consider-for-year-end/ https://www.bluestonehockley.com/three-charitable-giving-solutions-to-consider-for-year-end/#respond Fri, 12 Oct 2018 16:16:42 +0000 https://www.bluestonehockley.com/?p=25411 Three Charitable Giving Solutions to Consider for Year End Strategies Your Clients Can Use Right Now It may seem too early to talk about year-end planning. But the 2017 Tax Cuts and Jobs Act set many changes in motion for charitable giving. Whether a clients’ charitable giving stems from a concern for those who are... Read more ›

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Three Charitable Giving Solutions to Consider for Year End
Strategies Your Clients Can Use Right Now

It may seem too early to talk about year-end planning. But the 2017 Tax Cuts and Jobs Act set many changes in motion for charitable giving. Whether a clients’ charitable giving stems from a concern for those who are less fortunate, the desire to support a particular cause or an endeavor to gain recognition in their community, the changes to the income tax deductions will likely impact the charitably inclined.

The increase in the standard deduction ($12,000 for individuals, $18,000 for heads of household, and $24,000 for married couples) means far fewer people will itemize (a requirement to obtain the charitable deduction). Additionally, the $11.18 million estate tax exemption per person means far fewer people have taxable estates now than before the act came into effect. Because of the general reduction tax in tax liability after the Tax Cuts and Jobs Act, charitable planning no longer has the same tax-saving benefit it once did.

Even against these headwinds, there remain actionable solutions you can implement with your clients to maximize their charitable giving results. When you share these solutions with charitably-minded clients, you enhance the value you provide and deepen your relationships.

1.   Bundle Gifts Together
When your clients make relatively small gifts each year, there often isn’t enough to make those gifts tax deductible. That’s why it’s helpful to bundle gifts so the amount becomes deductible in one year. For example, if a client gives $10,000 per year, they can instead give $30,000 in one year and inform the charity that the gift is for three years. This way, the client is “prepaying” three years of annual gifts. Utilizing this larger amount, the client can now obtain the income tax deduction for the one year that the gift is made.

Another option is to use a donor-advised fund (DAF) if a client isn’t 100% sure about which charities they want to support. These are similar to the private foundations established by the very wealthy, but they’re a more practical way to prepay gifts for people across the wealth spectrum. In a DAF, the client makes an irrevocable donation and receives an immediate tax deduction. Their gift then grows tax-free in the DAF. The client can then, at a later time, choose which charitable organizations to make grants to from the funds in the DAF.

2.   Use IRA Rollovers and Other Retirement Plans
Retirement assets have both lifetime and at-death planning opportunities. Because of the estate and income taxes that occur when IRAs are passed on to beneficiaries, they’re an excellent – and tax-efficient – way to include charitable giving in your clients’ estate plans.

Instruct your client to designate a charity as a beneficiary on retirement plan assets (and leave life insurance or other property to family or non-charity beneficiaries). The charity will pay no income tax on the retirement plan or IRA proceeds, retaining the full value of the charitable gift. Let your clients know that donating their IRA value to a charity means bypassing loss of the IRA’s value through income tax as well, and they are likely to see the value in this resourceful strategy.

During life, there are planning opportunities too. Clients over 70 ½ can use the IRA to charity rollover to avoid the entire income tax deduction issue since funds directly given from an IRA to a charity are not added to taxable income. This way, the client gets an income tax benefit whether they itemize or not because the direct distribution to the charity effectively bypasses your client’s tax return.

3.   Use Charitable Lead and Remainder Trusts
There are a variety of trusts that can provide significant benefit for your wealthy clients — especially if we work together proactively to plan the sale of an asset with significant gain. CLTs and CRTs are two notable examples.

  • Charitable Lead Trust (CLT): CLTs are a type of irrevocable trust that can help your clients achieve their charitable giving goals by providing money to a charity over a set period of time without their assets being eaten away by taxation. Once the stated period of time has elapsed, the remaining sum can be passed onto their chosen loved ones or other beneficiaries. In a CLT, the charity receives money now and for a specified period of time and then the remainder is left for your non-charitable beneficiaries.
  • Charitable Remainder Trust (CRT): CRTs are also a type of charitable trust. CRTs provide a stream of income to your client for a period of years or a lifetime, with the remainder going to the charity of their choice. Because of the tax benefits these trusts receive, they can be an excellent vehicle to convert highly appreciated assets into lifelong or retirement income for the right client while also achieving a clients’ charitable goals.

For your clients who are interested in starting or continuing their charitable giving efforts, the Tax Act has likely caused a fair bit of confusion and concern about a loss of tax benefits. By using these strategies, we can collectively help realign your clients giving plans with the new legislative realities caused by the Tax Act. We are here to help and collaborate as key players on your clients’ planning team.

Written by:  Eden Rose Brown

The Law Office of Eden Rose Brown

1011 Liberty St. SE
Salem, OR 97302
(503) 581-1800

EdenRoseBrown.com 

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Preserving & Maintaining Real Estate Investments https://www.bluestonehockley.com/preserving-maintaining-real-estate-investments/ https://www.bluestonehockley.com/preserving-maintaining-real-estate-investments/#respond Wed, 10 Oct 2018 20:10:39 +0000 https://www.bluestonehockley.com/?p=25392 By Doug Moe, Residential Portfolio Manager Bluestone and Hockley Real Estate Services The powerful elements: wind, sun and rain attack all buildings. It’s an investor’s job to protect their investments by preserving them. One way to do this is to apply protective coatings regularly. The First Step The first step when moving through the painting... Read more ›

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By Doug Moe, Residential Portfolio Manager

Bluestone and Hockley Real Estate Services

The powerful elements: wind, sun and rain attack all buildings. It’s an investor’s job to protect their investments by preserving them. One way to do this is to apply protective coatings regularly.

The First Step

The first step when moving through the painting process is to make sure to hire a licensed, bonded and insured painting contractor. Their credentials can be verified through the Oregon CCB website: http://search.ccb.state.or.us/search/

Every licensed painting contractor in Oregon must be lead certified which requires the appropriate initial and continuing education which is verified by the CCB. Lead is a neuro-toxin and is especially harmful to children ages 6 and under. Make sure that the appropriate testing is completed and that the vendor is following proper safety protocols as needed.

Finding Contractors

How do you find the right contractor? One of the best ways is by word of mouth. Going to the local paint store and asking for recommendations is also another good method. It’s important to take time to speak with references contractors provide and if possible, to go out and physically look at the job that was completed. If it’s done recently, take note of how the landscaping looks around the work-areas. Let’s face it, people often forgo the due diligence and instead just look for the lowest bid to get the job done. Many of us have learned the hard way about the real costs associated with picking the lowest bid.

Reviewing Bids

After confirming that the contractor is licensed it’s important to correctly compare quotes. Making sure that the quotes have the same scope of work as one another is the only way to complete a true comparison. Some items that are important to discuss and written down in the contract:

  • What areas will be worked on?
  • How many coats of paint will be applied?
  • Are they applying by brush, roller or sprayer?
  • Is the job going to be subbed out or completed with their own crew?
  • How long will it take to complete the job?
  • What quality and sheen of paint is being used?
  • What type of warranty is offered?

Underlying Issues

Another important point to consider is the underlying cause of the current paint failure. Did it wear down naturally over time? Is it delaminating or chipping? Was the surface prepped appropriately? Are there visible moisture or mildew issues? Is the substrate soft to the touch (potential rot issues)? Was the correct type of product applied for the specific substrate/use?

Discussing these topics with the contractor can help make sure the right things are being done to address the underlying issues. This will help to make sure the current job last as long as possible.

Preparation

Preparation is often overlooked due to the initial costs associated with doing the job correctly. After identifying the underlying issues, it’s important to make sure the scope of work has the steps that will be taken to prepare all surfaces for the project. Some common items that should be addressed:

  • What type of protection and containment will be used?
  • Will there be pressure washing, soft washing, hand washing? (or no washing at all)
  • What drying protocols will be followed? (lower than a 15% moisture reading)
  • What type of sanding or scraping (along with appropriate containment) will be used?
  • Will they be using tarps, tape, paper, and/or plastic?
  • If it’s warm or sunny, what about the plants or grass underneath plastic?
  • Will lead paint procedures be needed?
  • What areas will be caulked and what type of caulking will be used?
  • What will be primed and will it be primed before or after the caulking?
  • Other than caulking, will any fillers or patching material be used?
  • Are there too many coats of paint on a surface and is striping down to bare needed?

*Pro-Tip: It’s also important to note the clean-up procedures and how often they will occur.

Correct preparation is the key to a successful paint job.  Skimp on the prep and your paint job will not turn out as nice or last as long as it should. Trying to save money by using the cheapest materials is penny wise and pound foolish. Project timing is also important to consider. If you wait too long to paint your property, it could cost much more in preparation and/or repairs to the substrate.

Product Selection

Product selection can drastically change the longevity of the project. When considering the aesthetic goals of the project, it’s also important to factor in the owners five year goals and financial ability as different products have different average lifespans. There are generally two options to consider when deciding on exterior painting projects. To paint or to stain: that is the question!

Painting Options

There are for main types of paint: water-based (latex); oil-based (alkyd); hybrid and elastomeric. With the improvements in paint technology over the past 10 years, it’s now generally best to use a water-based product on most surfaces. Depending on the surface along with exposure to the elements, paint will generally last between 5 and 15 years before needing maintenance. Painting generally requires the highest amount of prep between projects.

When painting over an existing paint job, it’s important to consider: adhesion; flexibility; breathability; sheen; surface tension and color. Latex paint is more flexible than alkyd paints and won’t become brittle or oxidize over time. When painting over an alkyd with a latex, it might not properly adhere to one another. The correct preparation steps can help ensure proper adhesion. If there are too many coats of paint on a surface, the next coat of paint might the tipping point that limits breathability and cause the paint to start bubbling. When using specialty high-end paints on a project that has previously been painted multiple times, sometimes the surface tension that is created during the drying process can cause the base-layers to start delaminating. When choosing colors, it’s very important to keep surface temperatures in mind. Substrate surface temperatures on dark vs. light colors can vary by roughly 35% when in direct sunlight and will reduce the lifespan of the paint. For a project that’s focused on longevity, it’s best to choose lighter or earth-tone colors. Areas that are regularly exposed to direct sunlight can last roughly twice as long when painted with light colors vs. dark colors.

Staining Options

If showcasing the natural woodgrain is important, it’s best to go with a transparent stain. If the raw wood is new, it’s important to test to ensure there is not a mil-glaze on the surface and that the selected product will penetrate into the substrate. Preserving siding/fencing/decking/beams using transparent stains should be completed every 1-2 years for the first couple of years. Depending on how the stain is holding up, after the initial successive coats, the time between applications can be adjusted out longer as needed. Transparent stains generally lasts 1-2 years. The goal of a transparent stain is to absorb UV and other damage caused from the elements and wear away instead of the wood wearing away. This requires very little prep between coats other than washing.

To get a slightly longer project lifespan, going with a semi-transparent stain is another option which generally lasts 2-4 years. The downside is that will not showcase the natural wood-grain as much as a transparent finish. Also, depending on the solids content, it may require scraping or sanding between coats.

To maximize the lifespan of the staining project, going with a solid-body stain will generally last between 4-8 years. This generally won’t last as long as painting will, but it allows better breathability and shows off more woodgrain compared with paint. This will generally require scraping or sanding between coats which can add significant cost to the preparation portion of future projects.

*Pro-Tip: Staining the under-sides of decks (if accessible) increases the lifespan of the project.

Final Thoughts

Remember that like materials, it’s penny wise and pound foolish to go with the cheapest paint or stain. Materials costs are often only 20% of the overall project cost. Going from the cheapest to the mid-grade or best products should increase is overall cost by 10% – and it’s worth every penny! What if I told you that the project lifespan could increase by five years for a 10% increase in overall cost, what would you do? Hopefully the answer is clear. The cost of taking care of our properties is a challenge. As a successful real estate investor, we should all plan on saving adequate funds for regular painting and repairs of the investment. Not only does regular maintenance maintain the value of your property, it also increases resident satisfaction and marketability to prospective tenants. Remember to work with a vendor that is knowledgeable and willing to do a thorough job. You’ll be glad you did!

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Common Ground Coffee Hour https://www.bluestonehockley.com/common-ground-coffee-hour-2/ https://www.bluestonehockley.com/common-ground-coffee-hour-2/#respond Wed, 10 Oct 2018 17:55:44 +0000 https://www.bluestonehockley.com/?p=25383 Homeowners are invited to join Bluestone & Hockley and our special guest speaker, Attorney, Marlyn Hawkins of Barker Martin, P.S., a full-service litigation and homeowners association general counsel law firm. This is an exciting learning opportunity on Washington State Law and how it pertains to living in a Washington Community Association! About the Speaker: Marlyn... Read more ›

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Homeowners are invited to join Bluestone & Hockley and our special guest speaker, Attorney, Marlyn Hawkins of Barker Martin, P.S., a full-service litigation and homeowners association general counsel law firm. This is an exciting learning opportunity on Washington State Law and how it pertains to living in a Washington Community Association!

About the Speaker:

Marlyn Hawkins is a Shareholder of Barker Martin, P.S., a full-service litigation and homeowner association general counsel law firm based in the Pacific Northwest.  Marlyn participates in and manages the general counsel practice in addition to litigating construction defect and insurance coverage issues.  Marlyn has been actively involved in advancing homeowner rights through the legislature and was a member of the committee that drafted the Washington Common Interest Ownership Act, which became effective July 1, 2018.  Marlyn spends her free time taxiing her teen and pre-teen children and finding ways to be in the sun.   

Please note that this event will be on Wednesday, rather than our usual Thursday’s for the Common Ground Coffee hour. We will also be providing a light lunch and refreshments. 

Seating is limited, so please RSVP today. We hope to see you there! 

 

October 17th: 11:30 am – 1:00 pm

Location: Total Wine & More

4816 NE Thurston Way

Vancouver, WA 98662

 

 

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Introduction to Bluestone & Hockley https://www.bluestonehockley.com/introduction-to-bluestone-hockley/ https://www.bluestonehockley.com/introduction-to-bluestone-hockley/#respond Mon, 08 Oct 2018 22:47:05 +0000 https://www.bluestonehockley.com/?p=25296 The post Introduction to Bluestone & Hockley appeared first on Bluestone & Hockley | Portland Property Management.

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B&H University: Landlord-Tenant Ordinance Changes https://www.bluestonehockley.com/bh-university-landlord-tenant-ordinance-changes/ https://www.bluestonehockley.com/bh-university-landlord-tenant-ordinance-changes/#respond Wed, 26 Sep 2018 23:23:55 +0000 https://www.bluestonehockley.com/?p=25333 B&H UNIVERSITY Landlord-Tenant Ordinance Changes An update on the changes to the city of Portland’s Landlord -Tenant Ordinances Monday | October 15th 4:30pm – 5:30pm 9320 SW Barbur Blvd., Suite 300 Portland, OR 97219 Presentation by: Leah Sykes, Partner GreenspoonMarder LLP Attorney, Leah Sykes will update us regarding changes to the City of Portland’s Landlord –... Read more ›

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B&H UNIVERSITY
Landlord-Tenant Ordinance Changes

An update on the changes to the city of Portland’s Landlord -Tenant Ordinances

Monday | October 15th
4:30pm – 5:30pm

9320 SW Barbur Blvd., Suite 300
Portland, OR 97219

Presentation by:
Leah Sykes, Partner
GreenspoonMarder LLP

Attorney, Leah Sykes will update us regarding changes to the City of Portland’s Landlord – Tenant Ordinances with a focus on the major changes to tenant screening & security deposits.

Light refreshments will be provided.

Register Now!

 

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Alert !!! Portland City Rental Services Commission Screening. https://www.bluestonehockley.com/alert-rental-services-commission/ https://www.bluestonehockley.com/alert-rental-services-commission/#respond Tue, 11 Sep 2018 16:13:57 +0000 https://www.bluestonehockley.com/?p=25274 Portland City Rental Services Commission screening criteria will force investment property owners out of rental housing. On Tuesday the 21st of August 2018, Portland Rental Services Commission held a hearing regarding the new draft of their screening criteria policy concept.  In that hearing, they left a total of thirty (30) minutes for public input, which... Read more ›

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Portland City Rental Services Commission screening criteria will force investment property owners out of rental housing.

On Tuesday the 21st of August 2018, Portland Rental Services Commission held a hearing regarding the new draft of their screening criteria policy concept.  In that hearing, they left a total of thirty (30) minutes for public input, which is not enough for a document of ten (10) pages that threatens the livelihood of most residential investors.

This document, which has been in the draft phases for over ten (10) months, is an attempt to regulate and limit the rights of property owners to screen tenants.

If you own rental housing of any kind in Portland, you must be aware of this draft language that is scheduled to be heard at the Portland City Council at the end of September 2018 and will most likely be adopted unless landlords make their voices heard.

Investors need to understand that the deck is stacked with pro-tenant advocates and the key objectives of this committee are: 1) for property owners to rent to all tenants (regardless of their qualifications); and 2) to find a way to lower income tenants to find housing.

I have summarized key bullet point highlights of the draft ordinance below, please read carefully:

Applications:

  • All applications must be date stamped and a receipt delivered to future tenants
  • Notices in 5(five) harbor languages need to be made available to all tenants
  • A landlord, property manager, or housing provider, owning or managing less than fifty (50) units within the City of Portland, may refuse submission of a completed application only if the applicant has a verifiable pattern of lease violations with that same landlord/property manager/housing provider and the most recent of such lease violations occurred within a one-year period.

Advertisements:

  • When requiring applicants to pick-up or submit applications in person (as opposed to online or by mail) any open application period that is publicly advertised must be published at least 1 week in advance of the application pick-up or submittal period.
  • The potential Landlord risk with this language is that it suggests that units (where tenants apply in person – i.e. smaller landlords), need to be marketed a week before they can accept other tenants. This is not first come first serve. There should be no delay in renting a unit to a new tenant unless the city is willing to pick up the tab for the lost rent.  This commission seems to forget that investment property owners have mortgages, and other bills to pay in order to deliver rental housing to the marketplace.

Identification:

  • Landlords must accept any of the following as forms of identification: i) Valid Social Security Number (SSN), ii) Valid Permanent Resident Alien Registrations Receipt Card, iii) Immigrant Visa, iv) Individual Taxpayer Identification Number (ITIN), v) Non-Immigrant Visa, vi) any other government-issued identification, or vii) any other non-government issued identification that would allow verification of identity and enable the landlord to screen for both credit and criminal history in the United States.
  • This is a violation of what is commonly referred to as the Red Flags Rule, which requires certain ID be verified when using a credit report. This is a federal rule from the Federal Trade Commission requires.   (https://en.wikipedia.org/wiki/Red_Flags_Rule)
  • A landlord may not reject an application as incomplete due to lack of Social Security Number (SSN).
  • Landlords may not inquire about the immigration status of the applicant or require that the applicant prove citizenship.

Income:

  • Landlords cannot require income to rent ratio be greater than two (2) times the amount of rent listed for the unit.
  • This means that property owners will be forced to rent to residents that do not have the money to pay the rent.
  • Tenant advocates believe that the current housing shortage is forcing low-income tenants out of rental housing and are looking to use this language to require property owners to rent to non-qualified tenants. Most landlords that offer market-rate housing have had extensive experience with renting to tenants whose income is limited. An income ratio of two (2) times the rent is just not enough for tenants to be able to pay their rent. The Commission should be looking at keeping the current industry standard of three (3) times the rent.
  • This policy is very short-sighted and will create a larger problem for those tenants that will be evicted for inability to pay their rent. A better solution would be for the city to co-sign behind those tenants and provide Landlords insurance for lost rent and potential damages.
  • All sources of income must be considered when estimating the ability to pay the rent including but not limited to wages, rent assistance, verifiable family assistance, and public benefits.

Individualized assessment:

  • A landlord may not deny an applicant for residential tenancy unless the landlord conducts an individualized assessment of that applicant and provides in writing to the applicant how, taking into account any supplemental evidence as defined in this ordinance, there is a nexus between the specific circumstances surrounding the reasons for denial and a substantial, legitimate, nondiscriminatory interest of the landlord.
  • New Protections include:
    • Criminal history: (you need to read it to believe it)
      • When evaluating an applicant with a criminal record when the landlord intends that the criminal record will be a reason for denial, the landlord must consider the following as part of the individualized assessment: i) The nature and severity of the conviction, ii) The number and types of convictions, iii) The time that has elapsed since the date of conviction, iv) Age of the individual at the time of conviction, v) Evidence of good tenant history before and/or after the conviction occurred; and 4 vi) Any supplemental evidence related to the individual’s rehabilitation, good conduct, and additional facts or explanations provided by the individual, if the individual chooses to do so.
      • Including any information the landlord is required to consider as a part of an individualized assessment performed pursuant to this section, when an applicant’s criminal history shows any of the following alone, or in combination with any other factor listed below, it is presumed that the crime or conduct for which the applicant was convicted or charged is not of a nature that would adversely affect property of the landlord or a tenant, nor is it likely to adversely affect the health, safety or right to peaceful enjoyment of the premises of residents, the landlord or the landlord’s agent: (1) An arrest that did not result in conviction, unless the resulting charge is pending at the time that the applicant submits the application, (2) Participation in or completion of a diversion or a deferral of judgment program, (3) A conviction that has been judicially dismissed, expunged, voided or invalidated, (4) A conviction for a crime that is no longer illegal, (5) A conviction or any other determination or adjudication in the juvenile justice system, (6) A conviction or pending charge for any of the following: (a) When the date of sentencing is 3 or more years or the date of release is greater than 1 year, whichever is latest, before the applicant submits the application: (i) Felony assault and battery, (ii) Misdemeanor domestic violence, (iii) Robbery offenses (no weapon involved), (iv) Sex offenses (non-forcible), (v) Stalking, (vi) Felony burglary or felony breaking and entering-related offenses, (vii) Theft, stolen property, or fraud-related offenses when the history shows two or more felony convictions within the timeframe in this section, (viii) Felony destruction, damage, or vandalism of property offenses, (ix) Drug possession when the history shows two or more felony convictions within the timeframe in this section, 5 (x) Drug Manufacture, distribution or possession with the intent to distribute, or (xi) Weapons offenses, other than use of a firearm against a person.
      • When the date of sentencing is 1 or more years or the date of release is greater than 1 year, whichever is latest, before the applicant submits the application, driving under the influence-related offenses, when the history shows two or more convictions within the timeframe in this section, or (c) A criminal conviction older than 7 years for any conviction, the date of conviction being the date of sentencing, or more than 4 years from the date of release, whichever is latest. (d) A criminal conviction older than 10 years for any convictions, the date of conviction being the date of sentencing, when the history shows two or more misdemeanor or felony convictions within the timeframe in this section, or (e) A criminal conviction older than 20 years for any convictions, the date of conviction being the date of sentencing, when the history shows four or more misdemeanor or felony convictions within the timeframe in this section.
    • Credit history:
      • “ any information the landlord is required to consider as a part of an individualized assessment performed pursuant to this section, when an applicant’s history that is not related to criminal history shows any of the following alone, or in combination with any other factor listed below, it is presumed that no nexus exists between the factor in the application and a substantial, legitimate, nondiscriminatory interest of the landlord:   i) Credit history that shows any of the following alone or in combination with 3 or fewer of the following: (1) Insufficient credit score, (2) Lack of credit history, unless the applicant in bad faith withholds credit history information that might otherwise form the basis for denial, (3) Adverse accounts under $1000, unless the account is related to debt from a prior tenancy, (4) Property debt under $300, (5) Bankruptcy filed by the applicant more than 5 years ago, (6) Medical or secondary education debt
      • In other words, if you screen tenants that have items 1 -6 in their background review you need to ignore it

Rental History:

Resulted in a general judgment against the applicant that was entered fewer than five years before the applicant submits the application, which implies that evictions need to be ignored as part of screening history.

The judgment against the applicant was a default judgment due to a failure to appear, if the applicant presents credible evidence to the landlord that the applicant had already vacated the unit upon which the action was based at the time that notice of the action was served.

Any information that the landlord obtains from an oral rental reference, except defaults in rent, outstanding balance due to the landlord or behaviors as a tenant that resulted in a termination with cause. Any information provided from an oral rental reference that the landlord intends to use as the basis for denial must be recorded in writing and attributed to the prior landlord (There goes the ability of a former tenant’s Landlord to warn a future Landlord anonymously and avoid retaliation.)

The commission wants you to use a co-signer to help a new tenant secure their rent and rental performance, something our company does not do because it is very difficult to collect rent from the co-signers.

Appeals:

An applicant who is denied for residential tenancy by a landlord must have the opportunity to appeal that denial directly to the landlord or property manager based on:

i) incomplete or inaccurate information on application

ii) newly acquired supplemental evidence

iii) evidence of inappropriate nexus identified in denial

The landlord is not required to hold the unit for the application during the pendency of the appeals process.

If the appeal results in the denial being overturned, the landlord must place the applicant on a waitlist for the next available unit, for up to 6 months.

Additional deposits:

The commission wants to limit the use of additional deposits requested from weak tenants by creating more hurdles for landlords to overcome.

a) Landlords may charge additional security deposit only if they determine that supplemental evidence provided by the applicant is not adequate to offset a substantial, legitimate, nondiscriminatory interest of the landlord.

b) To request additional deposit, the landlord must provide a written notice of “Conditional Denial” to the applicant to inform the applicant of the specific circumstances surrounding the reasons for the request.

Screening fees:

If documentation of denial is not provided to the applicant within 2 weeks, the owner must refund their entire application fee within the same 2-week period.

There are new limitations on what you can charge for screening fees, that are already limited by state law.

There are also sections regarding Modification Requests, Exemptions, Damages and Definitions in the attached draft document but they have not been fleshed out.

Multifamily and Single-family investors in the City of Portland must call all City Commissioners NOW to voice their concerns.

The cost of complying with these new regulations is enormous. The city’s intent is to make it easier for low-income tenants to rent.  But, financially weak tenants for whom this ordinance is designed will continue to struggle to make ends meet no matter how many changes the city makes to their rules.

Property owners invest a significant amount of money to buy and hold rental housing, and most tenants have the ability to pay rent. These rules are geared to a very small group of people that need help. This ordinance will just discourage investors from buying and keeping rentals in Portland, further reducing the supply of rental housing stock, which is opposite of what the city wants and needs.

These rules will not reduce the cost of rental housing, rather will increase the costs as landlords try to comply and meet the city’s requirements.  There must be a better way to meet the Portland’s low-income housing needs.

You can add your input into the process at the next meeting of the  Rental Services Commission:
18th of September, 2018  from 2:30 – 5 P.M
Portland Housing Bureau, 421 6th Avenue, Suite 500, Portland, Oregon 97204.

To track the progress of the Rental Services Commission you can log in here and sign up for their mailing list  https://signup.e2ma.net/signup/1863801/1738353/.

Draft ordinance (as published on the 21st of August, 2018) can be found at the link below:

https://www.portlandoregon.gov/phb/article/695056

 

 

 

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B&H Common Ground Coffee Hour Emergency Preparedness https://www.bluestonehockley.com/bh-commmon-ground-coffee-hour-emergency-preparedness/ https://www.bluestonehockley.com/bh-commmon-ground-coffee-hour-emergency-preparedness/#respond Fri, 07 Sep 2018 23:43:34 +0000 https://www.bluestonehockley.com/?p=25257 B&H Common Ground Coffee Hour Emergency Preparedness: feat. Cynthia Valdivia of Washington County   Bluestone & Hockley welcomes all homeowners to join us for coffe and a presentation on Emergency Preparedness, with Cynthia Valdivia, a Senior Medical Reserve Corps Unit Coordinator from Washington County!   Please note that this event will be on Wednesday, rather than our... Read more ›

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B&H Common Ground Coffee Hour

Emergency Preparedness: feat. Cynthia Valdivia of Washington County

 

Bluestone & Hockley welcomes all homeowners to join us for coffe and a presentation on Emergency Preparedness, with Cynthia Valdivia, a Senior Medical Reserve Corps Unit Coordinator from Washington County!  

Please note that this event will be on Wednesday, rather than our usual Thursday’s for the Common Ground Coffee hour. 

Seating is limited, so please RSVP today. We hope to see you there! 

Click to register here!

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Metro recommends UGB expansions – Daily Journal of Commerce https://www.bluestonehockley.com/metro-recommends-ugb-expansions-daily-journal-of-commerce/ https://www.bluestonehockley.com/metro-recommends-ugb-expansions-daily-journal-of-commerce/#respond Fri, 07 Sep 2018 23:35:58 +0000 https://www.bluestonehockley.com/?p=25253 Metro believes four suburban Portland cities should be granted urban growth boundary expansions. The regional planning agency’s chief operating officer, Martha Bennett, recommends Beaverton, Hillsboro, King City and Wilsonville be allowed to expand their growth boundaries. The changes would open 2,181 acres in the metro area to development. The recommendation will go to the Metro... Read more ›

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Metro believes four suburban Portland cities should be granted urban growth boundary expansions.

The regional planning agency’s chief operating officer, Martha Bennett, recommends Beaverton, Hillsboro, King City and Wilsonville be allowed to expand their growth boundaries. The changes would open 2,181 acres in the metro area to development.

The recommendation will go to the Metro Council for discussion at a work session on Tuesday. A vote is likely to follow in December.

Metro is flexing its new ability to expand the UGB outside the usual six-year cycle, after the Oregon Legislature last year changed state land use rules.

UGB expansion decisions typically result in appeals to the Land Conservation and Development Commission and district court. Metro spokesman Nick Christensen said he could not recall the previous UGB expansion decision that did not result in an appeal.

Bennett recommended boundary expansions for all four communities that requested them. (Sherwood withdrew an earlier UGB expansion proposal). All four cities demonstrated governance, infrastructure and market factors that will lead to housing development, Bennett stated.

Beaverton would gain the most land – 1,232 acres able to accommodate an estimated 3,760 homes in the Cooper Mountain area. Bennett wrote Beaverton’s “strong track record for getting housing built in the South Cooper Mountain area is a major reason why I recommend that the council expand the UGB in the Cooper Mountain urban reserve.”
Beaverton planning officials have thoughtfully planned for the area’s topographical features and environmental assets, she wrote.

Bennett recommends the council add the entire Cooper Mountain urban reserve inside the UGB to enable the city to provide infrastructure in a coherent fashion.

Beaverton’s concept plan for the area proposed that approximately 50 percent of the housing be attached single-family or multifamily.

“We’ve always anticipated a pretty broad range of housing types to be provided within the neighborhood,” said Cheryl Twete, Beaverton’s community development director.

Beaverton will perform a study to better understand how the city can attract development of various housing types, Twete said.

City officials are “very excited” by the positive recommendation, and city leaders support all four regional boundary expansions, she said.

“We feel really confident in the value and the case that we’re making for Cooper Mountain urban reserve,” she said.

Hillsboro’s bid to add 150 acres with 850 homes in the Witch Hazel Village South area was recommended. Hillsboro’s concept plan calls for up to 70 percent of the housing to be multifamily or attached single-family.
King City earned a recommendation to expand into 528 acres, with 3,000 homes planned, in an area known as Beef Bend South.
Bennett wrote King City “deserved credit” for its ambition to diversify its population and housing options. King City’s concept plan for a town center with 1,000 multifamily units “may be overly optimistic at this time,” but a smaller-scale town center could work, she wrote.

Wilsonville’s plan to add 271 acres near Advance Road in the Frog Pond area was recommended. The area would host approximately 1,325 housing units.
Wilsonville has a “strong track record getting housing built” in Villebois, Bennett wrote. With Frog Pond, Bennett wrote, “the city is ready to govern and serve this area and there is evidence that market demand is strong.”

Taken as a whole, the UGB expansions would represent opportunity for a modest addition to the Portland-metro area’s housing stock. The four expansions would add a projected 9,235 homes inside the growth boundary.

The relatively small expansion areas reflect how challenging it is to extend roads, sewer and other infrastructure into previously undeveloped areas, Christensen said.

“It’s really expensive and really difficult to build on green fields,” he said. “As long as that remains, you’re only going to see a handful of applications (with each cycle).”

Metro is pushing for accessory dwelling units (ADUs) and other forms of less expensive housing.

“Our population’s growing (and) our economy’s growing, so we need to make sure there’s housing for the people who live here,” he said.

Article written by:

Chuck Slothower – DJC Oregon
cslothower@djcoregon.com

djcoregon.com

 

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Exaction or Extortion? Limits on the Power to Take Property During Land Use Proceedings https://www.bluestonehockley.com/exaction-or-extortion-limits-on-the-power-to-take-property-during-land-use-proceedings/ https://www.bluestonehockley.com/exaction-or-extortion-limits-on-the-power-to-take-property-during-land-use-proceedings/#respond Tue, 04 Sep 2018 18:38:18 +0000 https://www.bluestonehockley.com/?p=25242 The Oregon Court of Appeals recently recognized that local jurisdictions cannot use local code to circumvent constitutional protections against the taking of property without just compensation. In Hill v. City of Portland, the landowner sought to divide his 1.06-acre property into three separate parcels, intended to accommodate a total of three single-family residences. The city approved the... Read more ›

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The Oregon Court of Appeals recently recognized that local jurisdictions cannot use local code to circumvent constitutional protections against the taking of property without just compensation.

In Hill v. City of Portland, the landowner sought to divide his 1.06-acre property into three separate parcels, intended to accommodate a total of three single-family residences. The city approved the application and specifically found that the existing transportation system was capable of safely supporting the proposed development. Despite this finding, the city imposed a condition of approval requiring the landowner to dedicate a strip of land along the property’s frontage as an additional right-of-way.

The landowner objected, arguing that the additional right-of-way might serve the city’s general policy goals, but would not address issues caused by the proposed development, as required by the Constitution. The city disagreed, arguing (a) that the existing right-of-way was not as wide as required by the city’s development code, (b) that it was therefore authorized to deny the application for the land division under the code, and (c) that it could, therefore, condition its approval of the land division on bringing the right-of-way into compliance with city code.

A pair of Supreme Court cases — Nollan v. California Coastal Commission and Dolan v. City of Tigard — established the constitutional test for exactions of property in this context. Although referred to as a two-part test, local jurisdictions must actually satisfy three requirements. First, they must show a legitimate government interest that would furnish valid grounds for denying the development permit. Second, the exaction must substantially advance the same legitimate government interest that would allow denial of the permit (i.e., the exaction must address the impact expected from the proposed development). Third, the nature and extent of the exaction must be roughly proportional to the impact of the proposed development.

Here, the city collapsed the first two requirements into one, asserting that non-compliance with city code was sufficient to show the required relationship between the requested exaction and the impact of the proposed development. Because the code did not require the city to assess the impact of the proposed development, it took the position that no such assessment was required. The Court of Appeals rejected this position, clarifying that — in addition to non-compliance with city code — the Constitution requires that the proposed development (two additional single-family residences) substantially impede the same government interest set forth in the code (sufficient right-of-way to accommodate expected users), before such interest can support an exaction of property.

To read the full article click here

Author:

Cozette Tran-Caffee 
trancaffeec@lanepowell.com

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