OREGON RENTAL HOUSING NEWS SUMMER 1998


  1. Earthquake Rehabilitation 
  2. Central Oregon ROA 
  3. When the Smoke Clears 
  4. Application Denial - Newest Form 
  5. President's Message 
  6. Fall Planning Session 
  7. Around The Capitol 
  8. Heating Improvements 
  1. Why Are Inspections Necessary 
  2. Oregon Calendar 
  3. Oregon Rental Housing Board Meetings 
  4. Local Associations 
  5. 1997-98 Officers 
  6. PROS Seminar Schedule 

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Previous News Letters
winter 1998
Autumn 1997
Summer 1997


Earthquake Rehabilitation
Costly To Landloards
By Shawn Miller

Whether you live in Portland, Astoria, Coos Bay or Klamath Falls, there is a "chance" of an earthquake hitting your area in your lifetime. Unfortunately, no one can predict how big or how small but it has been a concern of state geologists since the early 1990's when they reclassified Western Oregon into a higher risk for seismic activity. Well, we're not California (and we take pride in that in more than just earthquakes) but the state has been looking into what California has done to prepare for the next "rumble". 

Since the reclassification into higher risk, Governor John Kitzhaber appointed a task force on seismic rehabilitation which subsequently met and held hearings in 1995 and 1996 determining that there was clear evidence of a safety hazard to Oregonians caused by buildings that are inadequately designed. So the task force introduced a bill in 1997 (senate bill 1057) which included, of all things, mandatory seismic retrofit of existing unreinforced masonry buildings of which there are many in Portland as well as elsewhere around the state. 

When the legislature looked at the bill in 1997 and examined the small business impact, they decided that businesses could not take the cost burden required within the bill for an earthquake that may never come. Although the Oregon Rental Housing Association stressed interest in safety and protection of tenants, the cost to such a retrofit would not only have taken away even more affordable housing but it could put some landlords out of business. In the end, the bill died with the intent of re-examining the issue in the 1998 interim to address again in the 1999 legislative session. 

On May 12, the Seismic safety Policy Advisory Commission met again to hear ideas on change for next session. Our association again opposed the mandatory rehabilitation of buildings but at the same time, the association realized that in a competitive rental industry, property owners are forced to invest in their property due to market forces rather than government forces. 

The two elements that we can support next session is a statewide educational program that consists of a property or income tax credit to property owners who voluntary conduct seismic upgrades to their property. I stress the word "voluntary". This program would encourage the market to participate in seismic upgrades with an incentive. Furthermore, it would be a reasonable solution to safety prevention rather than the proposed government mandate which doesn't take in consideration the costly effects of the small business owner. 

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Central Oregon ROA
By Susan Strawn

COROA's new year started in July, with our 4th annual picnic at the Ralph Hergenrader home, with a beautiful view of Bend and gorgeous weather. Our new board members are Michelle Reynolds, Whit Ross and Priscilla Smith. We look forward to their ideas and participation to promote growth in membership, enhance our education and develop a better resident and landlord relationship. 

COROA educational meetings are once-a-month. Some of the programs are how to deal with illegal drugs, associate members workshop, mediation, and PRO certification class. Prior to the meeting, we have a 30 minute question and answer time. Also, mini work shops are held monthly in Bend on the second Thursday and in Redmond on the third Thursday. We encourage the members to bring the Landlord Law Book. With Oregon Rental Housing Associations new forms book, the members can bring the form book for reference and how to use the forms. Thank you Norton Cabell, President of Oregon Rental Housing Association and author of this great book. 

Some of COROA's educational tools are a form display, members notebooks, 52 legal up-to-date forms, a forms packet for owners who have one to five rentals, professional and informative newsletter, net working and camaraderie among members, etc. Out-of area members... please come to our meetings. 

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Northeast Oregon ROA
When the Smoke Clears
By Leslie House

Have you ever wondered how government can justify competing with the private sector? Well, they have done just that in LaGrande, Oregon and it looks like this: Do you have a house "For Sale?" Do you have a house "For Rent?" Do you pay property taxes? Does your employment rely on the local economy? Well now Northeast Oregon Housing Authority is now going into competition with you. Our position is this DO NOT harm some while trying to help others! Let's use existing housing. If existing housing is used who is harmed? Not the home owners, not the rental owners experiencing high vacancies, not the struggling economy, not the rent-to-own buyers. We encourage everyone to work together to find a solution that does not damage anyone. 

THE FACTS ARE:

  1. NEOHA has purchased 20 acres on 26th street to develop additional housing. The first phase is 35 new manufactured homes constructed outside the area in another labor pool. The second phase of 35 units will be setup followed by a third phase of 40 unit apartment complex. The total plan calls for 110 new housing units in LaGrande.

  2.  

     

  3. The first phase of 35 homes is designed as a Rent-to-own project, the unfavorable piece to this plan is the Housing Authority will use your tax dollars to compete against you for buyers and tenants. They could use this same money to buy existing homes! REALTORS and the Rental Owners Association support the Rent-to-own project if it is planned so it does not economically damage our community and it's citizens.

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  5. NEOHA is a tax exempt government agency with 3.1 million dollars of real estate in Union, but only pays approximately $3,000 in property taxes. These new projects will increase their holdings to 9 or 10 million dollars. Private property owners could lower their rents too if they only had to pay a token property tax like NEOHA.

  6.  

     

  7. The appraisal completed in 1997 for NEOHA states that under the present market conditions only one new home should be built per month, to balance current demand and supply. The private sector can meet this need very easily.

  8.  

     

  9. Do you remember the housing slump in the mid-1980's? Do you remember the low-income housing projects that were built during that period? Do you remember all the foreclosure notices published in the newspaper? Statistically, our local Housing Authority has 598 subsidized units for a population of 24,500. In neighboring Umatilla Co. they have 44 subsidized units for a population of 65,500, yet they have substantially fewer subsidized housing. 
  10. The survey commissioned by NEOHA states that "LaGrande must carefully pace the addition of new housing in the community ". We agree! Let's use existing housing and partnership with the private sector. The Administrative Plan for NEOHA states that Because landlord/owner participation is vital to the success of the Section 8 Existing and Housing Voucher program. NOHA will carefully monitor outreach to owners. In our effort to give input, we have been criticized and labeled unfavorably resulting in alienation rather than cooperation.

  11.  Perhaps we should concentrate on getting jobs to our community instead of creating a housing glut that could devastate the economy. Let's work together to find a solution that won't economically have disadvantaged people that need housing, nor people in ownership of real property. 

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Forms Hightlight
Form 43 - Application Denial Oregon Rental Housing's Newest Form
By Norton Cabell
A new Fair Credit Reporting Act took effect last October. It affects credit bureaus in a major way; but it also affects landlords, though in minor ways. Under the new law a landlord who takes an adverse action (and that term is defined to mean turning down an applicant or altering the terms, such as requiring a co-signer or larger fee or deposit), must notify the applicant in writing. State law only requires that the landlord tell the applicant by actual notice. That means calling up and giving them the bad news on the telephone, or even just leaving a message on their answering machine works under state law, but it doesn't now under federal law. So anytime you turn an applicant down, or request a co-signer or larger deposit, you need to make certain disclosures. For that purpose-and to comply with the new law-we've completely redesigned Form 43. The newly required disclosures now are, essentially, (1) that you're either turning the application down or you're requiring increased deposit or fee or cosigner, (2) if you got a credit report, which of the national concerns generated the report, (3) that the credit reporting agency didn't make the decision-you did, (4) that the applicant has the right to a copy of the report, to dispute the accuracy of anything in it, to insert a statement of dispute in his credit report, (5) that the applicant can get a copy of his credit report for free if requested within 60 days, and (6) that if you got information from other than a credit reporting agency, the applicant can learn the nature of that information by requesting it from you in writing within 60 days. Fortunately, you don't need to remember to make each of these disclosures. That's what the all new Form 43 does. Filling out the form is easy. But be aware of two things. One, regardless of who you use for a credit bureau or screening company, you are to disclose which national firm obtained the report. If your screening company doesn't tell you, you should ask them. You need to check one of the three on the form, not list your local screening company. Two, if you check references directly-like calling landlords or employers-you need to disclose that information to the applicant. Be sure to check that box. And a final hint. Don't screen someone without using a written application, and one that authorizes you to check their credit. Most, but not all, screening companies want a copy of the application, with the appropriate authorizing language, before they'll do what they do. But even if they don't ask, you need to have it. Our Form #1, the Rental Application, has all that authorizing language. By the way, this law has teeth. If you don't comply with the law, you can be fined up to $2,500. So do it right. If you turn someone down-or ask for a larger deposit or fee or for a co-signer-do it in writing by using Form 43.
J. Norton Cabell, 
3680 Thames St., Eugene OR 97405-1177

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President's Message
By Norton Cabell

1998 Convention in Seaside a Success! Oregon Rental Housing Association would like to Thank the Clatsop Co. ROA for a wonderful convention. We are happy to say that we made a profit....... Good job Clatsop Co. ROA.
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Fall Planning Session
September 25, 26 & 27
By Terry Flora

FALL PLANNING SESSION

September 25, 26 & 27

Hosted by
Northwest Oregon Rental Housing Association

One of the most important

 events of the year for our

 association is the planning

 session that takes place in the 

fall. This meeting has a great

 impact on the rental housing

 industry in Oregon. This is

 where the goals and direction

 of our association are set for the

 years ahead.

THIS IS WHERE YOUR VIEWS AND IDEAS SHOULD BE HEARD.
YOUR IDEAS AND VIEWPOINTS ARE VITAL!!!

TO: LOCAL ASSOCIATION MEMBERS & THEIR LEADERSHIP

PLACE: BEST WESTERN RAMA INN & SUITES
1711 21st Street LaGrande, OR 97850
(541) 963-3100

RATES: $62.21 Includes Tax
An additional list of hotels are available, call Maren for more information

FRIDAY, SEPTEMBER 25TH 
1:00 p.m. - 5:00 p.m. PRO's Seminar "Mediation", Terry Flora 

( $30 members/ $45 non-members)
5:00 p.m. - 6:00 p.m. Committee Meetings
6:00 p.m. - 6:15 p.m. Break - - H'odervers 
6:15 p.m. - 6:45 p.m. Local Association Reports
7:00 p.m. - 9:00 p.m. ORHA Board Meeting

SATURDAY, SEPTEMBER 26TH 
8:00 a.m.- 8:30 a.m. Continental Breakfast, Hotel guests only
8:30-Noon Planning Session
12:00 p.m.-1:00 p.m. Lunch
1:00 p.m.-5:00 p.m. Planning Session
6:00 p.m. - 9:00 p.m. No Host Dinner - - surprise location & entertainment 

SUNDAY, SEPTEMBER 27TH 
8:00 a.m.- 9:00 a.m. Continental Breakfast , Hotel guests only
8:30 a.m.- Noon Planning Wrap-up


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Around The Capitol
Every Vote Counts
By Shawn Miller

Although I can't say for sure, but I would guess that nearly a quarter of our membership will not vote this November in the General Election. Why should they? It's not a Presidential election year and the economy is doing so well, why should people bother to take the time and vote? Unfortunately, in U.S. and Oregon politics, we face the horrific fact that nearly half of the general public doesn't care to vote. Although the members of the Oregon Rental Housing Association will have a much higher propensity to vote than the general public, it always boggles my mind how some people believe that "their vote doesn't count." 

I can tell you that every vote counts. Many Oregon elections have been won and lost by just a few votes. Nothing drives a campaign more crazy than to think- "if only I had turned out a few more voters." This sad state of mind is something that troubles many of us who are trying to get people to turn out and vote. In a perfect world, turn-out shouldn't be the obstacle to getting elected. It should be the gateway. So why is this year so important for people and especially our members to turn out and vote? 

Because in 1999, when the 70th legislative assembly convenes at the Capitol in Salem- the laws are "up-for-grabs." When I mean "up-for-grabs," I think of a rugby match where the ball pops up in the air and you have about 20 people scratching, kicking and hitting at each other to get the ball. This describes our legislative process, only with a lot more people. Issues are being thrown into the air and legislators are scratching, kicking and hitting at each other to fix something or another. 

Even though it's not a Presidential year and our economy is doing very well, the members of the Oregon Rental Housing Association are going to be challenged with over 100 bills next session whether we like it or not. Knowing this, wouldn't you rather have the ball than be scratched, kicked and hit with legislation that hurts your ability to operate your rental property? 

Every pro-Every pro-landlord, mayor, city councilor, judge and legislative candidate you cast your vote for this November will make my job a lot easier next session and thus make your job of running your business a lot smoother. 

With absentee voting making it easier for busy people to vote, there is no excuse for you not to cast your ballot. So take a moment right now and look at your calendar and determine if you will have the time to vote on election day, November 3rd. If not, call your county elections division and register as an absentee voter. You will then get your ballot a couple weeks ahead of election day. Fill it out- and mail it in! 

I encourage every member of our association to exercise their right to vote, the single most important aspect of democracy. Remember, you have to elect the right people, then I have to protect you from the people you elected. 

If you need information on a legislative race in your area, feel free to call Shawn Miller at (503) 585-2119.

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Heating Improvements Help Keep Tenants, Boost Resale Value, Earn Tax Credit and Rebate

By Lisa Schwartz, Oregon Office of Energy

To be successful as a rental property owner, Donna Osorio must do three things: attract good tenants, keep good tenants, and make a profit when she sells her homes. 

Osorio says weatherization and heating improvements help her do all of that. 

"If they're going to be paying a lot of money for heating in the wintertime, tenants won't want to stay very long," Osorio said. "I also feel it improves the property for the time of sale. If you can show you've done weatherization on the house, people will be more likely to buy it." 

So when Osorio added to her properties an older oil-heated home in Portland, she called the State Home Oil Weatherization (SHOW) program to get a free energy audit. 

"The tenant was using a lot of oil," Osorio said. "We thought it was something that we should do, to make it more comfortable for tenants. I try to keep my places nice so I have tenants a long time." 

Osorio followed the energy analyst's recommendations for the measures that would pay back the fastest. She installed R-25 insulation under the floors, insulated the heating ducts in the crawl space, had R-27 fiberglass blown into the attic (the attic had only a few inches of insulation) and had R-11 cellulose blown into the uninsulated walls. 

She also put in a high-efficiency oil burner and a setback thermostat. 

The energy analyst estimated that the improvements would reduce oil use by 42 percent. Osorio has seen that reduction in the bills she gets from the oil company. (The tenant reimburses her.) 

"The tenant is real happy that she's not paying nearly as much money for heating," Osorio said. "It also has helped keep the house cooler in summertime. And she just loves the new thermostat. I have one here myself. That's why I chose to put one in." 

Osorio says she was "very happy" with both of the contractors who did the work. For the heating improvements, she used the contractor who tunes up the furnaces in her houses. For the insulation, she used the contractor who weatherized two homes she had lived in herself. 

The total cost of the improvements was $2,940. After a $400 SHOW rebate and a 35-percent state energy tax credit - totaling $890 - Osorio's final cost was just $1,650. 

Osorio says the investment is well worth it. "You're going to get it back by keeping tenants in there and when you sell the home," Osorio said. 

In addition to the SHOW rebate and state tax credit, Osorio got a 6.5 percent SHOW loan to pay for the improvements. She says it was easy to use the state programs. "I just had to go through the proper steps to get the forms completed and signed. It was very simple, really. I was real pleased with the program." 

To learn how you can get a 35-percent state tax credit for improving the energy efficiency of your rental home, call the Oregon Office of Energy at 1-800-221-8035. (In Salem, call 378-4040.) 

For a free energy analysis of your rental property and information on cash rebates and loans for weatherization and heating improvements... 

Oil heat: Call the SHOW program at 1-800-452-8660.
Electric or natural gas heat: Call the utility that provides your heat. 

- Lisa Schwartz, Oregon Office of Energy 

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Why Are Inspections Necessary

By Susan Strawn, COROA

  • To see what maintenance needs to be done 
  • To promote safety: heaters, exits, patio, etc 
  • To improve sanitation 
  • To improve housekeeping skills 
  • To answer questions of the resident 
Prior to inspections a 24 hour notice is given, form #18. It is a good idea to give the resident a weeks notice. 

Also, ask if there is anything that needs to be fixed, listing each room in the rental , etc. Some owners/agents prefer the resident to be home. Some residents want to be home during inspection. Respect the residents decision. It is a good idea for the landlord/agent to have another person with he or she. This helps jog the resident's memory of items that need to be fixed. It is a good idea to take a camera or camcorder with you. 

  • Remember: To schedule time for maintenance. To schedule follow-up inspections, if necessary 
  • Inspections should be performed about every 4 months 

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Oregon Calendar

MEETING DATES FOR LOCAL ASSOCIATIONS
CENTRAL OREGON ROA September 29, October 27 Contact:
Michelle Anderson
(541) 382-7727
CLATSOP CO. ROA September 14th Contact:
Morgan Howells
(503) 738-0943
COLUMBIA CO. ROA September 15, October 14 Contact:
Jan Renzelman
(541) 397-2140
CURRY CO. RHA
-- 
Contact:
Susan Spencer
(541) 469-5483
DOUGLAS CO. ROA September 22 Contact:
Diana Wright
(541) 677-0299
KLAMATH RHA October 31 Contact:
Felice Koblos
(541) 884-6488
LANE CO. ROA September 22, October 27 Contact:
Help Line
(541) 485-7368
LINN-BENTON CO. ROA October 26 Contact:
Sharon Leibrant
(541) 926-9227
MID-COLUMBIA ROA September 15, October 20 Contact:
Karen Maravilla
(541) 298-4568
NORTHEAST OR ROA September 10, October 8 Contact:
Leslie Hasse
(541) 963-4156
OREGON APARTMENT ASSOCIATION September 16, October 21 Contact:
OAA Office
(503) 254-4723
SALEM RHA September 10, October 8 Contact:
Judy Steiner
(503) 375-6609
SOUTHWESTERN OREGON ROA September 24, October 29 Contact:
Jane Hatfield
(541) 269-1912
SOUTHERN OREGON ROA September 11, October 21 Contact:
Mark Kellenbeck
(541) 476-1141
TREASURE VALLEY ROA September 22, October 27 Contact:
Beth McDaniel
(541) 889-5600
UMATILLA CO ROA September 15 Contact:
Umatilla Office
(541) 278-7833
YAMHILL RHA September 18, October 13 Contact:
Judy Steiner
(503) 434-2038

 
 
OREGON RENTAL HOUSING BOARD MEETINGS
September 25th, 1998 Long Range Planning -- LaGrande, OR
Contact: Maren Winters (503) 364-5468

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LOCAL ASSOCIATIONS
Central Oregon Rental Owners Association
Clatsop County Rental Owners Association
Rental Owners Association of Columbia County
Curry County rental Housing association
Rental Owners Association of Douglas County
Klamath Rental Housing Association
Rental Owners Association of Lane County
Linn-Benton Rental Owners Association
Mid-Columbia Rental Owners Association
Rental Owners Association of Northeast Oregon
Oregon Apartment Association
Salem Rental Housing Association
Southern Oregon Rental Owners Association
Rental Owners Association of Southwestern Oregon
Treasure Valley Rental Owners Association
Umatilla County Rental Owners Association
Yamhill Rental Housing Association

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1997-98 Officers
Norton Cabell President
Sharon Fleming-Barrett Vice-President
Terry Flora Secretary
Virginia Rice Treasurer

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Seminar Schedule
Rental Management Forms
September 7, 14 & 28
October 5, 12 & 19
Portland
Portland
(503) 223-7639
(503) 223-7639
Speaker: Sharon Fleming-Barrett
Speaker: Sharon Fleming-Barrett
Fair Housing
September 15th
September 24th
St Helens
Ontario
(503) 397-2140
(503) 889-5600
Speaker: Sharon Fleming-Barrett
Speaker: Sharon Fleming-Barrett
Interviewing & Screening Prospective Tenants
September 12th Klamath Falls (541) 884-6488 Speaker: Sharon Fleming-Barrett
Marketing
October 17th
October 27th
Medford
Bend
(541) 476-1141
(541) 382-7727
Speaker: Sharon Fleming-Barrett
Speaker: Sharon Fleming-Barrett
Screening Issues
September 23 Eugene (541) 485-7368 Speaker: Norton Cable & Jon Tronrud
Tenancy Issues
October 21 Eugene (541) 485-7368 Speaker: Norton Cable & Jon Tronrud
Tenancy Termination
November 12th Eugene (541) 485-7368 Speaker: Norton Cable & Jon Tronrud
Mediation
September 25th La Grande (541) 963-4156 Speaker: Terry Flora

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Last Updated: Monday, November 1, 1998