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Improve Energy Efficiency With Free Energy-Saving Products

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By The Editors
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energy trust of oregon

Sponsored Blog

Often the biggest challenge to improving energy efficiency at a multifamily property, is knowing where to start. Energy Trust of Oregon’s free instant savings upgrades offer an easy, no-cost entry point to significantly reduce your energy consumption and costs.

Northwest Housing Alternatives has utilized this free service at ten sites in the Portland Metro area and Salem, saving the properties 212,680 kilowatt-hours, 11,000 therms and $24,280 in estimated annual energy costs. Marie Alaniz, resident service coordinator says “with the upgraded products provided and installed by Energy Trust, my residents save on their energy bills and substantially reduce water and electricity waste. Residents love the product upgrades and are pleased to be doing their part.”

These free energy-saving products, including LED bulbs, showerheads, shower wands, faucet aerators and advanced power strips, are more efficient and longer-lasting than standard equipment. LED bulbs use 85 percent less energy than incandescent bulbs, while energy-efficient showerheads and faucet aerators not only save energy but also use up to 20 percent less water compared to standard fixtures. Advanced power strips reduce energy waste by shutting off power to devices that are not in use. These products give maintenance teams more time to tackle pressing site issues.

In addition to energy- and cost-savings, installation is quick and convenient with minimal disruption for residents. Products are typically installed in as little as five minutes per dwelling unit by Energy Trust representatives. “Energy Trust’s energy advisors were accommodating and very considerate of residents,” said Alaniz. “The whole process was very simple and well worth it.”

For more information or to schedule the installation of free instant savings upgrades, call us at 1.877.510.2130, email [email protected] or visit www.energytrust.org/multifamily.

About Energy Trust of Oregon
Energy Trust of Oregon is committed to delivering clean, affordable energy to qualified utility customers across Oregon. Our customer base is comprised of businesses and residences including multifamily properties looking for energy-efficient solutions to help lower energy use and reduce operating costs. We offer cash incentives for the installation of qualified energy-efficient equipment and the installation free instant savings upgrades including LED bulbs, showerheads, shower wands, advanced power strips and faucet aerators. We’ll also conduct a free walkthrough survey to identify potential energy savings at your property.

For more energy-efficiency news and stories from around Oregon, visit the Energy Trust of Oregon blog at https://blog.energytrust.org/.

 

Accommodating Disabled Tenants In Your Rental Property

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By The Editors
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accommodating disabled tenants in your rental property and 15 tips to help

In accommodating disabled tenants it is important for a property manager to understand the laws pertaining to disability and accessibility for prospective disabled tenants. The maintenance checkup from Keepe this week involves 15 maintenance ideas to make your property more accessible to disabled tenants.

Researching and studying actual accessibility law should be a priority to prepare and protect yourself.

The Fair Housing Act and the Fair Housing Amendments Act make it unlawful to reject a prospective tenant because of their disability as you know. However it also prohibits asking a prospective disabled tenant about whether they are disabled and about the nature of their disability, visible or not.

While such questions are unlawful, the law allows for clarifying whether a prospective tenant qualifies for demanding a rental unit designed for disabled tenants only, or for a unit designed to accommodate certain disabilities in particular.

Accommodations are a core element to accessibility law.  The law states that disabled tenants may request reasonable accommodations to be provided, added or allowed for them to use and access their living space and common areas within the property.

Disabled tenants request for accommodation should be reasonable

Accommodating Disabled Tenants In Your Rental Property

The nature of the accommodation requested should exhibit a reasonable relationship to the disability. Such reasonable requests include allowing a service animal to live on the property or a designated parking space. To handle requests properly, it is fundamental to have an open discussion with a tenant regarding their needs.

Deciding what represents a “reasonable” request can be challenging considering that it can vary from case to case and property to property: the US Department of Housing Development requires a “interactive process” for reaching a reasonable compromise between a tenant and property manager/landlord/owner, generally justifying the rejection of demands for certain accommodations only when they represent an “undue” financial burden.

Accessibility Through Property Modifications

Requesting or making changes to a property fall into the category of “reasonable” requests that may or may not be granted. Before any modifications can be made, they must be approved by a property manager/landlord/owner in charge, who can ask the tenant to provide information regarding how proposed changes are necessary and/or ideal for them.

State laws can also apply to residential requirements, and should be considered when handling a request for building modifications.

Why You Should Invest In Accessible Modifications

Accommodating Disabled Tenants In Your Rental Property

Generally, unless a property is considered to be federally assisted housing, disabled tenants are expected to arrange and pay for necessary modifications to the property. This being said, the following 15 tips have been provided to make residential units safe and accessible for prospective tenants who are disabled or who have particular needs pertaining to mobility and access.

These changes can be significantly beneficial. It can make a rental property particularly appealing for tenants who value living in an accessible and safe space.

Considering that disability law is more lax and challenging to apply uniformly for residential spaces, disabled tenants will likely also value their ability to find a welcoming space that they can trust to accommodate their needs, often becoming long-term tenants.

Finally, addressing accessibility improvements to a property in a proactive manner makes it possible to avoid being unprepared when a prospective disabled tenant makes requests down the road.

15 Maintenance Tips For Making a Property Safe And Accessible For Disabled Tenants

1. Repair or remove carpet flooring that has become loose, broken tiling and/or any kind of uneven, damaged pavement.

2. Pave all walkways and driveways to render them regular and obstacle-free.

3. Enlarge all doorways on both interior and exteriors to at least 36 in. wide

4. Consider installing automatic systems allowing remote opening of doorways, garages and gates

5. Install ramps on all multileveled access points; our experts encourage having a qualified urban planning professional inspect the property and recommend adequate placement of ramps

6. Replace door knobs with accessible flat handles

7. Install non-slip flooring in bathrooms, kitchens, exterior walkways and any other surface that is likely to become slippery when wet

8. Install grab bars in the bathroom, ensuring that they are placed at the correct height and that can support the weight of an average adult

9. Consider installing particular accessible fixtures – such as toilets and showers – or begin by lowering toilets and lavatories.

10. Accessible faucets are ideally switched on by motion sensors

11. Light switches should be lowered to be accessible for wheelchair users, or substituted for a motion-sensing lighting system

12. Mailboxes should be lowered or substituted for accessible models

13. If the unit is furnished, furniture arrangements should allow enough clearance for users of assistive devices to travel around comfortably

14. Consider implementing Smart technology home system; Smart tech automates several in-home, everyday tasks, which renders them accessible. Additionally, Smart tech is generally a worthy investment as it is a unique and practical asset for most tenants – regardless of ability.

15. Upgrade to a side-by-side refrigerator: especially if your property is due for replacing outdated appliances – which is a beneficial investment considering that most newer appliance models feature energy-saving features – side-to-side refrigerators are ideal as they allow easy access to both refrigerating and freezing compartments

About Keepe:

Keepe is an on-demand maintenance solution for property managers and independent landlords. The company makes a network of hundreds of independent contractors and handymen available for maintenance projects at rental properties.

Keepe is available in the Greater Seattle area, Greater Phoenix area, San Francisco Bay area, Portland, San Diego and is coming soon to an area near you. Learn more about Keepe at https://www.keepe.com.

5 Maintenance Tips For Long-Lasting Carpet In Your Rentals

Kitchen Range Hood Options for Your Rentals

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Can Tenants Have Multiple Service Animals Or Assistance Animals?

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the-editors
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Ultimate guide to assistance animals in rental housing

The Grace Hill training tip of the week continues the focus on the confusing issue of service animals, assistance animals and emotional support animals.

By Ellen Clark

By now you’ve probably figured out that complying with assistance animal requests is confusing and difficult.

One of the situations that many people find particularly confusing is when there are multiple animals involved and an apartment complex that may have a one-pet rule.

    • Can residents have more than one assistance animal?
    • Can residents have pets and assistance animals?

 Can a resident have more than one service animal or assistance animal?

The Fair Housing Act (FHA) and Section 504 of the Rehabilitation Act of 1973 (Section 504) do not limit the number of assistance animals one person can have.

 Consider these service animal and assistance animals scenarios:

    • A person with a visual disability and a seizure disorder may use a guide dog to get around and another animal to be alerted to oncoming seizures
    • A person might need two assistance animals for the same task, such as two dogs for stability when walking

If a resident requests multiple animals, you may request documentation to show that each animal provides disability-related assistance or emotional support.

Remember that you can only request documentation for the animals where the disability-related need is not obvious or known to you.

 What if I have a one-pet policy and a resident with a pet requests a service animal or assistance animal, too?

If a person with a disability has a pet and makes a reasonable accommodation request to have an assistance animal too, you cannot deny the request just because of your one-pet policy.

Remember, assistance animals are not pets.

If the number of animals requested becomes unreasonable or you think it presents an undue hardship to your community, consult with your legal counsel to see if you can legally deny the request.

Open communication with residents is best solution

Remember, evaluating a reasonable accommodation request should be an individualized process with an ongoing dialog between you and the resident.

Often people file discrimination claims because they don’t feel heard, don’t understand the process, or aren’t kept in the loop.

Don’t underestimate the importance of good communication as you navigate these complicated issues.

Recent training tips you may have missed:

How A No Pet Policy Can Be Discriminatory

Assistance Animals Are Not Pets, Repeat, Assistance Animals Are Not Pets

Read Ellen’s full blog post here

About the author:

assistance animals and apartments

 

Ellen Clark is the Director of Assessment at Grace Hill.  Her work has spanned the entire learner lifecycle, from elementary school through professional education. She spent over 10 years working with K12 Inc.’s network of online charter schools – measuring learning, developing learning improvement plans using evidence-based strategies, and conducting learning studies. Later, at Kaplan Inc., she worked in the vocational education and job training divisions, improving online, blended and face-to-face training programs, and working directly with business leadership and trainers to improve learner outcomes and job performance. Ellen lives and works in Maryland, where she was born and raised.

About Grace Hill

For nearly two decades, Grace Hill has been developing best-in-class online training courseware and administration solely for the Property Management Industry, designed to help people, teams and companies improve performance and reduce risk.

Can A Resident assistance animals? - more than one?

Capt. Robert Baldwin and 1st Lt. Gregory Caliwag, 88th Medical Center clinical nurses pet Bailey, a pet therapy dog from the Miami Valley Pet Therapy Association on July 21, 2017. Pet therapy dogs visit the medical center seven days a week to provide comfort to patients and staff members. (U.S. Air Force photo/Stacey Geiger) via creative commons.

 

Oregon Senate Passes Bill Extending Property Tax Exemptions for Multifamily Housing

By
John Triplett
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Lawmakers Extend Oregon Eviction Moratorium Through End of September

The Oregon Senate has passed, 26-0, Senate Bill 262, which extends the sunset on a program that permits cities and counties to grant property tax exemptions for multifamily housing rentals.

Multi-unit rentals can provide affordable housing options for Oregon families. This bill extends the incentives for builders and developers to create this type of housing, according to a release from Senate Democrats.

“In Senate Bill 608, we provided greater protections against rent-gouging and no-cause evictions. At the time, we acknowledged the need for greater affordable-housing supply in our state,” said Sen. Michael Dembrow (D-Portland), who carried the bill on the Senate floor, in a release.

“This bill will encourage developers to build affordable multi-family units. Local governments get to decide whether they want to participate and how they want that to happen. It’s a tool to help local governments spur affordable housing development in their communities.”

Property tax exemptions for multifamily housing

The program is scheduled to last until Jan. 1, 2022, and this bill will extend its availability until Jan. 1, 2032. As part of the program, cities and counties can grant property tax exemptions – if they choose to do that – for multiple-unit rental housing for a 10-year period. Several counties use this tool to create housing for their residents with less than 60 to 80 percent of the median- area income. The programs are designed by local governments. After the program sunsets, the property tax exemptions won’t be available anymore.

Some officials hope that extending the sunset and providing property tax exemptions for multifamily housing will entice more cities to participate in the program, which so far has been used more often by counties. The exemption was claimed by 36 properties last year and provided an incentive of $13.7 million in waived property taxes.

“More cities are exploring a variety of options to help with the development costs of long-term affordable units, and, for some communities, this tool will help them to meet their goals,” Erin Doyle, League of Oregon Cities intergovernmental relations associate, said in her written testimony on the bill.

Housing issues aren’t just affecting families in some communities; it’s a statewide crisis. Alison McIntosh, with Oregon Housing Alliance, testified that during the last school year 21,750 of the state’s school children in kindergarten through 12th grade experienced homelessness at some point.

“Today, we simply don’t have enough affordable homes for people who need them, and vacancy rates have dropped precipitously towards zero in communities across Oregon,” McIntosh wrote in her testimony on the bill. “People – our neighbors and members of our community – are struggling with homelessness, housing instability, rent burdens and to make ends meet and put food on the table.”

Senate Bill 262 now goes to the House of Representatives for consideration.

Why Is It So Hard To Build Affordable Housing In Portland?

Real Estate Syndication Investing – 10 Things To Know

By
the-editors
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If you are thinking of investing in a real estate syndication, especially for multifamily investing, here are 10 things to know from Kim Lisa Taylor, Esq., founding attorney of Syndication Attorneys, PLLC.

By Kim Lisa Taylor, Esq.

If you have a self-directed IRA or substantial investment funds, you no doubt have considered investing in real estate, especially multifamily.

However, you may lack the funds to invest on your own or the desire to deal with the hassles of property management. A viable option for you may be to invest in a real estate “syndication” (i.e., a group real estate investment, also known as a Private Placement Offering) as a passive investor.

Real Estate Syndication – What Is It?

In a real estate syndication, a “sponsor” or “syndicator (which may be an individual or an entity) will typically identify a real estate asset, such as an existing commercial or multifamily property (or vacant land for development) or single-family fix-and-flips that will yield a sufficient return to pay themselves and their investors from cash flow during operations and/or equity on resale.

The sponsor may obtain institutional financing for a portion of the purchase price and then pool funds from private investors to finance the down payment and closing costs, or he or she may raise all of the purchase money from private investors. The sponsor’s job will consist of finding a suitable property, putting the group of investors together and managing the asset on their behalf. In exchange for these efforts, the sponsor will receive fees and/or a percentage of the “distributable cash” (i.e., profits) left after all expenses and loan obligations have been paid.

Real Estate Syndication: What Kind of Returns Do Syndications Offer?

Typical investor returns can range from 6 % to 12% (or more) annualized, calculated against the amount of money invested. The range varies, based on the type of investment and the level of risk to which an investor may be exposed. The higher the return offered, the greater the risk.

For example, an investor or self-directed IRA might take a position as a “debt partner,” in which case the returns will be calculated as interest on the amount invested. Such returns may be in the lower ranges, but the debt partnership position may be “preferred” or “secured” by a lien against the real estate, which is a lower-risk position.

Another option for investors is an “equity partnership” position, where the distributable cash is split proportionately between the group of investors and the sponsor, whose compensation can range from 25% to 50% of the distributable cash. In this case, the investor returns may be greater, but they will be dependent on the performance of the property and the sponsor’s ability to maximize returns by increasing income and minimizing expenses.

What Information Should I Get from the Syndicator?

Prior to accepting any investor funds, the sponsor is required by securities laws to provide a set of offering documents that explains the terms and discloses the risks of the offering to prospective investors.

Further, sponsors typically answer to their investors by means of periodic newsletters, financial reports and/or teleconferences. Unlike a stock investment, investors may also have some limited voting rights regarding major decisions affecting the company or their investment.

Investing In A Real Estate Syndication – 10 Things To Know

Before investing in a real estate syndication, you should carefully review all of the offering documents provided by the sponsor and look for (or ask) questions regarding the following things:

1. The Sponsor’s background, education and experience with similar investments, if any.

2. The team members involved in acquisition and operation of the property, including attorneys, CPAs, other members of the sponsor, property managers and affiliates that may receive fees, etc.

3. Cash distributions to investors during acquisition, operation and disposition of the property, including the proposed timing and anticipated percentage returns.

4. Sponsor fees and cash distributions.

5. Anticipated duration of the investment.

6. Property information, including its type and condition, the purchase price, financial history, proposed “value add” and exit strategies and pro forma financial projections.

7. Dispute resolution provisions.

8. Voting rights of investors.

9. Provisions for removal of the sponsor.

10. Information about the law firm that structured the offering and drafted the offering documents, and whether the firm is experienced with securities offerings.

Seek Professional Advice

In addition to satisfying yourself with respect to all of the items listed above, you should seek the advice of your own attorney, financial adviser or accountant regarding the investment.

Your attorney should determine whether the offering complies with applicable securities laws. A sponsor that disregards the applicable laws (or drafts its own documents) may expose itself and the entire investment to unnecessary civil or criminal liability, or it may be unaware of its fiduciary obligations to its investors.

Your CPA or financial adviser should evaluate the financial merits of the investment based on past financial statements for the property and pro forma projections provided by the sponsor, as well as its suitability for your investment portfolio.

Where Can I Meet Syndicators?

Become a member of your local real estate investment clubs and attend their meetings on a regular basis, and attend the informational seminars offered by your self-directed IRA administrator.

DISCLAIMER: The discussion herein is of a general nature only and is not to be construed as specific legal advice, which requires the establishment of an attorney-client relationship and fee agreement. An issuer represented by securities counsel should rely on his or her own attorney’s advice with respect to the matters discussed in this article.

About the Author

Real Estate Syndication Investing – 10 Things To Know

Kim Lisa Taylor, Esq., is founding attorney of Syndication Attorneys, PLLC, a boutique corporate securities law firm that helps clients nationwide with their federal real estate securities offerings. She has been licensed in California since 2002 and in Florida since 2012 and has made securities transactional law the focus of her practice since 2008. The firm employs one additional contract attorney with securities experience as well as other support staff. Kim and her team are available for consultation in St. Augustine, Florida.

Related:

How Multifamily Investors and Others Raise Private Money Legally

 

 

 

Affordable Housing Community in Downtown Seattle Purchased by Security Properties

By
John Triplett
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Affordable Housing Community in Downtown Seattle Purchased by Security Properties

A newly constructed 160-unit affordable housing community in downtown Seattle, called HANA, at the intersection of 6th and Yesler, has been acquired by Security Properties and Pacific Life, according to a release.

“Given the well-documented demand for affordable housing in Seattle, HANA is a being delivered at the perfect time,” said Steve TeSelle, Director of Affordable Housing for Security Properties, in the release.

“HANA will provide high-end units at a significant discount to market rents in the surrounding area,” he said.

This is the third affordable housing joint-venture by Security Properties and Pacific Life.

Affordable housing community in downtown Seattle

HANA is a mixed-use, podium-style community with more than 13,000 square feet of commercial space occupied by Bright Horizons daycare, and 160 apartment units.

Apartments feature floor‐to‐ceiling windows, hard-surface kitchen countertops, and vinyl-plank flooring that is consistent with Class-A market rate product. Residents will also benefit from a 7th floor rooftop deck with community kitchen and unobstructed views of Puget Sound and downtown Seattle. The property is minutes from light-rail as well as a wide variety of restaurants, retail amenities, and the Stadium District.

Affordable Housing Community in Downtown Seattle Purchased by Security Properties
HANA is minutes from light-rail as well as a wide variety of restaurants, retail amenities, and the Stadium District.

HANA was delivered in early 2019 and is presently undergoing lease-up.

The property participates in a variety of local affordability programs, including Seattle’s Multifamily Tax Exemption (MFTE) program, which together restrict all units to households earning between 50% and 80% of Area Median Income (AMI).

This translates to affordable rents for families earning up to $80,000, for a household of 4 people.

HANA is Security Properties’ fourth affordable housing acquisition in Washington state. The company’s Affordable Housing Group maintains a national footprint with an existing portfolio of more than 8,000 units across 58 low-income housing assets. Security Properties also owns more than 13,900 conventional units across 54 properties.

About Security Properties
Security Properties is a national real estate investment, development, and operating company headquartered in Seattle, Washington. For more than 50 years, Security Properties has provided quality housing to its residents as well as excellent financial performance for its investors. Since its founding, Security Properties has acquired or developed more than 83,000 residential units at a cost of over $5.7 billion. Security Properties maintains a focused multi-family strategy supported by integrated teams of professional acquisition, development, construction, investment, and property-management specialists. For more information, visit www.securityproperties.com

Seattle and Portland In Top 5 Cities in U.S. for Most Green Apartment Rental Units

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By The Editors
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Seattle and Portland In Top 5 Cities in U.S. for Most Green Apartment Rental Units

Seattle and Portland are in the top five cities in the United States with the most green apartment rental units, according to a new study by RentCafe.

The study shows that while green-apartment growth has slowed slightly recently, it is still up 300 percent over the past 10 years.

Seattle has the most green buildings of any city

The Emerald City stays true to its colors with around 22% of all Seattle apartments being sustainable. With almost 20,000 green certified units in 94 residential buildings, Seattle has the largest number of green buildings of any city in the United States.

Portland right behind Seattle in green building

Seattle and Portland In Top 5 Cities in U.S. for Most Green Apartment Rental Units

Portland, OR makes other cities green with envy with the second largest residential green share in the country after Seattle —  about 20% of what has been built there since 2009 is sustainable. As of 2018, the city offers more than 11,500 green apartments in 75 sustainable residential buildings.

“When discussing ideas for a healthier environment, we cannot overlook the part green-certified buildings play among verifiable eco-friendly solutions that reduce carbon emissions and waste, while using less energy and water. As commercial buildings embrace more resource-efficient options, it was only a matter of time before green construction development would contribute to the multifamily sector next,” RentCafe says in the report.

“In order to see how sustainable the U.S. rental market really is, we analyzed the evolution of green construction over the past decade, between 2008 and 2018. By examining Yardi Matrix‘s national inventory, we considered buildings of 50+ units that have already achieved or are proposed for LEED certification, the most widely used international sustainable building rating system. The verification system introduced in 2000 by the Leadership in Energy and Environmental Design confirms whether a building has been developed under eco-conscious principles or not.”

Seattle and Portland In Top 5 Cities in U.S. for Most Green Apartment Rental Units

Green apartment rental study highlights:

  • Ten years ago, only 5% of new apartments were green-certified, approx. 11,200. The number of sustainable rentals increased each year, peaking at 50,300 LEED-certified units in 2016, which accounted for 16% of the residential construction that year.
  • Since then, the number of sustainable units has dropped, seeing a 6% year-over-year decline in 2018, when about 15% of the apartments delivered had LEED certification. While the present is greener than the past, we cannot yet talk about a constant year-over-year increase in energy-efficient housing.
  • Which cities show significant eco-friendly development? Chicago leads the way with 20,600 green units delivered last year, followed closely by Seattle, with 19,800, which also boasts the largest number of LEED-certified buildings in the nation, 94.
  • Washington, D.C. follows up with 13,200 units. Its metro area, though, has the best offer for eco-conscious renters, with no more than 7 cities in the list of best ratios of people-to-green units.
  • Which is the greenest state? This title goes to California, which has the highest number of green residential units – 55,100. Texas and Washington also show significant green apartment development.

Seattle and Portland In Top 5 Cities in U.S. for Most Green Apartment Rental Units

Sustainable building construction and certification went down in the past two years, naturally following the deceleration trend in overall apartment construction, but never below the 42,000 mark. For example, even the -9% year-over-year drop registered in 2017 translated into 45,600 new buildings that got a green certification by the end of the year.

Read the full report from RentCafe here.

Methodology:

  • Property and rent data was compiled from Yardi Matrix, our sister company that specializes in multifamily market research.
  •  Property and rent data as of January 2019.
  • We consider “green buildings” multifamily projects that are LEED-certified or proposed for LEED certification.
  •  LEED-certification was cross-checked with USGBC’s public records; updates may occur.
  •  Study includes only large-scale apartment buildings of 50 units or more.
  •  Average rent comparisons were performed in U.S. cities with at least 5 green multifamily buildings and 500 units.

 

1031 Exchange Investors Are Choosing DST Properties for Passive Real Estate Ownership

By
Jason Salmon
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Kay Properties and 1031 and 1033 exchanges and eminent domain options details

Sponsored Blog

By Jason Salmon
Senior Vice President; Managing Director of Real Estate Analytics
Kay Properties & Investments, LLC

Over the course of the past several years, Kay Properties has observed incremental growth in the number of investors choosing Delaware Statutory Trusts (DSTs) as a preferred means of passive real estate investing for like-kind, tax-deferred 1031 exchanges.

1031 Exchange Basics

Per section 1031 of the Internal Revenue Code, real estate investors—under specific guidelines—may potentially defer their capital gains tax, depreciation recapture tax, and other taxes (each investor should consult their own CPA/attorney since every situation is unique). Upon the sale of investment real estate, the proceeds would go to a Qualified Intermediary, then the investor must purchase real estate of equal or greater value and has 45 days to “identify” replacement property with a concurrent 180-day timeline to close.

IRS/DSTs

Through what’s known as the Internal Revenue Service’s Revenue Ruling 2004-86, DSTs have been recognized as vehicles for investors looking for like-kind real estate as 1031 exchange replacement property with the ability to conduct another 1031 exchange upon the sale of the DST property.

Passive Real Estate Investing

For many real estate investors that have had their lives consumed with being pinned to real estate property management and/or asset management responsibilities, DSTs offer the opportunity to be passive and diversified—via the 1031 exchange into multiple DSTs/multiple geographic areas/multiple property types. Diversification does not guarantee profits or protect against losses.

As of the time of writing this article, Kay Properties has over 35 DST offerings available to our clients from over 20 companies that most would consider sophisticated real estate asset managers. As such, real estate sectors represented include, but are not limited to healthcare, multifamily, net-leased real estate (NNN), industrial/distribution, and office, student housing and self-storage.

It is important to note that these real estate management companies do not call for investors’ funds, then go out to buy properties. Rather, they’ll typically acquire the real estate first—thereby helping to reduce investor 1031 exchange closing risk—and the DST can be comprised of multiple properties or just a single asset.

DSTs come either with or without debt, so investors conducting a 1031 exchange may find the non-recourse financing already in place useful for the purposes of their transaction. Others might seek out debt-free DSTs as 1031 replacement property if they sold real estate that was unencumbered by debt and do not want the added risks of using financing with real estate investing.

The minimum investment size for 1031 exchange investors is typically $100,000, so in many cases investors can diversify into multiple DST offerings–depending on the size of their transaction.

Several factors have contributed to the industry’s growing popularity including the passive nature of the DST structure in conjunction with the real estate portfolio strategy (by investing with varied DST sponsor companies/asset-managers, locations and property types), and the ability to close quickly. Accredited investors find DSTs to be quite accessible compared to the search for high-quality real estate, negotiating with sellers and having to potentially put all their eggs in one basket. We’re pleased to be able to offer DSTs to our clients with the goal to streamline their 1031 exchange process..

About Kay Properties and Investments, LLC:

Kay Properties and Investments, LLC is a national Delaware Statutory Trust (DST) investment firm with offices in Los Angeles, San Diego, San Francisco, Seattle, New York City and Washington DC. Kay Properties team members collectively have over 114 years of real estate experience, are licensed in all 50 states, and have participated in over $9 billion of DST real estate. Our clients have the ability to participate in private, exclusively available, DST properties as well as those presented to the wider DST marketplace; with the exception of those that fail our due-diligence process. To learn more about Kay Properties please visit: www.kpi1031.com

This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior investing. This email contains information that has been obtained from sources believed to be reliable. However, Kay Properties and Investments, LLC, WealthForge Securities, LLC and their representatives do not guarantee the accuracy and validity of the information herein. Investors should perform their own investigations before considering any investment. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. This material is not intended as tax or legal advice.

There are material risks associated with investing in real estate, Delaware Statutory Trust (DST) properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. For an investor to qualify for any type of investment, there are both financial requirements and suitability requirements that must match specific objectives, goals and risk tolerances.

Securities offered through WealthForge Securities, LLC. Member FINRA/SIPC. Kay Properties and Investments, LLC and WealthForge Securities, LLC are separate entities. This email, including attachments, may include non-public, proprietary, confidential or legally privileged information. If you are not an intended recipient or an authorized agent of an intended recipient, you are hereby notified that any dissemination, distribution or copying of the information contained in or transmitted with this e-mail is unauthorized and strictly prohibited. If you have received this email in error, please notify the sender by replying to this message and permanently delete this e-mail, its attachments, and any copies of it immediately. You should not retain, copy or use this e-mail or any attachment for any purpose, nor disclose all or any part of the contents to any other person. For your protection, please do not transmit orders or instructions by email or include account numbers, social security numbers, credit card numbers, passwords, or other personal information.

Portland Rents Increased Significantly Over the Past Month

By
By The Editors
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Portland Rents Increased Significantly Over the Past Month

Portland rents have increased 0.4% over the past month, but are down slightly by 0.3% in comparison to the same time last year, according to a new April report from Apartment List.

Currently, median rents in Portland stand at $1,120 for a one-bedroom apartment and $1,330 for a two-bedroom.

Second straight month for Portland rent increases

This is the second straight month that the city has seen rent increases after a decline in December of last year. Portland’s year-over-year rent growth leads the state average of -1.3%, but trails the national average of 0.9%.

Rents rising across cities in the Portland Metro

Portland Rents Increased Significantly Over the Past Month

While rent decreases have been occurring in the city of Portland over the past year, cities in the rest of the metro are seeing the opposite trend.

Rents have risen in 9 of the largest 10 cities in the Portland metro for which Apartment List has data. Oregon as a whole logged rent growth of -1.3% over the past year.

Here’s a look at how rents compare across some of the largest cities in the metro.

  • Hillsboro is the most expensive of all Portland metro’s major cities, with a median two-bedroom rent of $2,030; of the 10 largest Oregon metro cities that the company has data for, 9 have seen rents rise year-over-year, with Springfield experiencing the fastest growth (+2.7%).
  • Beaverton, Vancouver, and Eugene have all experienced year-over-year growth above the state average (2.0%, 1.7%, and 1.3%, respectively).

Portland rents more affordable than many similar cities nationwide

Portland Rents Increased Significantly Over the Past Month

As rents have fallen slightly in Portland, many comparable cities nationwide have seen prices increase, in some cases substantially. Portland is also more affordable than most other large cities across the country.

Portland’s median two-bedroom rent of $1,330 is above the national average of $1,170. Nationwide, rents have grown by 0.9% over the past year compared to the 0.3% decline in Portland.

While rents in Portland fell slightly over the past year, many cities nationwide saw increases, including Phoenix (+3.6%), Austin (+3.1%), and Las Vegas (+3.1%).

Renters will find more reasonable prices in Portland than most similar cities. For example, San Francisco has a median 2BR rent of $3,100, which is more than twice the price in Portland.

Eugene rents up slightly over the past month

Eugene rents up slightly over the past month

Eugene rents have increased 0.7% over the past month, and are up slightly by 1.6% in comparison to the same time last year.

Currently, median rents in Eugene stand at $830 for a one-bedroom apartment and $1,100 for a two-bedroom.

This is the third straight month that the city has seen rent increases after a decline in December of last year. Eugene’s year-over-year rent growth leads the state average of 0.7%, as well as the national average of 1.3%.

Salem rents also up

Salem rents also up

Salem rents have increased 1.3% over the past month, and have increased slightly by 1.4% in comparison to the same time last year.

Currently, median rents in Salem stand at $840 for a one-bedroom apartment and $1,100 for a two-bedroom. This is the third straight month that the city has seen rent increases after a decline in December of last year. Salem’s year-over-year rent growth leads the state average of 0.7%, as well as the national average of 1.3%.

Corvallis rents remain flat

Corvallis rents remain flat

Corvallis rents have remained flat over the past month, however, they are up marginally by 0.7% year-over-year. Currently, median rents in Corvallis stand at $820 for a one-bedroom apartment and $1,020 for a two-bedroom. Corvallis’ year-over-year rent growth is level with the state average of 0.7%, but lags the national average of 1.3%.

 

HUD Charges Facebook With Fair Housing Discrimination Over Targeted Advertising Practices

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By The Editors
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Justice Department Sues Owner, Manager of Rental Properties for Sexual Harassment of Female Tenant

Facebook’s targeted advertising platform violates the Fair Housing Act by “encouraging, enabling, and causing” unlawful discrimination by restricting who can view housing ads, the U.S. Department of Housing and Urban Development (HUD) charged in a release.

“Facebook is discriminating against people based upon who they are and where they live,” HUD Secretary Ben Carson said in the release. “Using a computer to limit a person’s housing choices can be just as discriminatory as slamming a door in someone’s face.”

HUD has also alerted Twitter and Google that it is scrutinizing their practices for possible housing discrimination, a sign that more technology companies could be ensnared in a government probe of their lucrative demographic ad targeting tools, according to the Washington Post.

Read HUD’s Charge against Facebook.

Today’s action follows HUD’s investigation of a Secretary-initiated complaint filed on August 13, 2018. HUD alleges that Facebook unlawfully discriminates based on race, color, national origin, religion, familial status, sex, and disability by restricting who can view housing-related ads on Facebook’s platforms and across the internet. Further, HUD claims Facebook mines extensive data about its users and then uses those data to determine which of its users view housing-related ads based, in part, on these protected characteristics.

“Facebook is discriminating against people based upon who they are and where they live,” said HUD Secretary Ben Carson. “Using a computer to limit a person’s housing choices can be just as discriminatory as slamming a door in someone’s face.”

HUD General Counsel Paul Compton added in the release, “Even as we confront new technologies, the fair housing laws enacted over half a century ago remain clear—discrimination in housing-related advertising is against the law.

“Just because a process to deliver advertising is opaque and complex doesn’t mean that it exempts Facebook and others from our scrutiny and the law of the land. Fashioning appropriate remedies and the rules of the road for today’s technology as it impacts housing are a priority for HUD,” Compton said.

The Fair Housing Act prohibits discrimination in housing and in housing-related services, including online advertisements, based on race, color, national origin, religion, sex, disability, or familial status.

According to HUD, Facebook enabled advertisers to exclude people whom Facebook classified as parents, non-American-born, non-Christian, interested in accessibility, interested in Hispanic culture or a wide variety of other interests that closely align with the Fair Housing Act’s protected classes.

Showing ads only in certain neighborhoods

HUD is also charging that Facebook enabled advertisers to exclude people based upon their neighborhood by drawing a red line around those neighborhoods on a map. Facebook also allegedly gave advertisers the option of showing ads only to men or only to women.

HUD asserts that Facebook also uses the protected characteristics of people to determine who will view ads regardless of whether an advertiser wants to reach a broad or narrow audience. HUD claims Facebook combines data it collects about user attributes and behavior with data it obtains about user behavior on other websites and in the non-digital world.

Facebook then allegedly uses machine learning and other prediction techniques to classify and group users to project each user’s likely response to a given ad, and in doing so, may recreate groupings defined by their protected class.

By grouping users who have similar attributes and behaviors (unrelated to housing) and presuming a shared interest or disinterest in housing-related advertisements, Facebook’s mechanisms function just like an advertiser who intentionally targets or excludes users based on their protected class, HUD charges.

HUD seeks to address unresolved fair housing issues regarding Facebook’s advertising practices and to obtain appropriate relief for the harm Facebook caused and continues to cause.

In August 2018, the Department of Justice, joined by HUD, filed a statement of interest in the U.S. District Court for the Southern District of New York (SDNY) on behalf of a number of private litigants challenging Facebook’s advertising platform. Read SDNY’s statement of interest.

HUD’s charges will be heard by a United States Administrative Law Judge unless any party to the charge elects to have the case heard in federal district court. If an administrative law judge finds after a hearing that discrimination has occurred, he may award damages for harm caused by the discrimination. The judge may also order injunctive relief and other equitable relief, as well as payment of attorney fees. In addition, the judge may impose fines to vindicate the public interest. If the matter is decided in federal court, the judge may also award punitive damages.

Persons who believe they have experienced discrimination may file a complaint by contacting HUD’s Office of Fair Housing and Equal Opportunity at (800) 669-9777 (voice) or (800) 927-9275 (TTY).

 

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