New Mandates Require Alarms in Multi-Family Housing Units in 2013

by Deborah Hanson, director of external affairs, BRK Brands, Inc.

California is taking another stand against the “silent killer,” with new carbon monoxide (CO) legislation set to take effect statewide on January 1, 2013. At that time, California law requires owners of multi-family dwellings to install CO alarms in every unit of their properties. These requirements are the final phase of the state’s groundbreaking Carbon Monoxide Poisoning Prevention Act.

Under the new law, owners of multi-family dwellings are required to install, repair, maintain and test CO devices in each of their properties’ units. The law applies to all multi-family residences, such as apartment buildings, that contain carbon monoxide sources or are situated within structures that contain one or more sources of this poisonous gas. CO sources may include, but are not limited to, heaters, fireplaces, furnaces, appliances or cooking sources using coal, wood, petroleum products, or other fuels emitting CO as a by-product of combustion. Attached garages with doors, ductwork or ventilation shafts connected to a living space also are sources of CO.

The January deadline for these new requirements is of particular importance, as more CO deaths occur during the winter months than any other time of year, due in part to increased use of fuel-burning sources to heat homes, according to the National Fire Protection Association (NFPA).

CO laws coupled with education and awareness will help reduce the number of accidental poisonings from this silent killer. According to the American Medical Association, CO poisoning is the number one cause of accidental poisoning in the U.S. Over-exposure to this colorless, odorless gas leads to approximately 450 deaths and more than 20,000 emergency room visits each year. The California Air Resources Board attributes 30-40 avoidable deaths annually statewide from unintentional carbon monoxide poisoning.

Diagnosis of CO poisoning can be difficult because symptoms mimic those of many other illnesses and include nausea, headaches, dizziness, weakness, chest pain and vomiting. In more severe poisoning cases, people may experience disorientation or unconsciousness, or suffer long-term neurological disabilities, cardio respiratory failure or death.

Added Protection for Tenants:

The following is an overview of the new regulations:

• Owners of multi-family leased/rental dwellings (i.e. apartment buildings)  are required to install, repair, maintain and test the CO devices, pursuant to Civil Code 1954, which allows them to enter the unit with 24-hour notice.  The CO device must be operable at the time the tenant takes possession of the unit.
• CO alarms must have a distinct audible sound.  If the alarm is a combination smoke/fire and CO detector, the alarm must have separate distinct audible sounds for each function.
• CO alarms may be either battery powered or plug-in/hard-wired with battery back-up.

As the most trusted and recognized brand name in home safety, First Alert is committed to educating the public about the dangers of fire and CO poisoning. For additional information on carbon monoxide safety, visit http://www.firstalert.com/.

More information on the Carbon Monoxide Poisoning Prevention Act can be found on the Office of the State Fire Marshal website, at http://osfm.fire.ca.gov/.

California is taking another stand against the “silent killer,” with new carbon monoxide (CO) legislation set to take effect statewide on January 1, 2013. At that time, California law requires owners of multi-family dwellings to install CO alarms in every unit of their properties. These requirements are the final phase of the state’s groundbreaking Carbon Monoxide Poisoning Prevention Act.

Under the new law, owners of multi-family dwellings are required to install, repair, maintain and test CO devices in each of their properties’ units. The law applies to all multi-family residences, such as apartment buildings, that contain carbon monoxide sources or are situated within structures that contain one or more sources of this poisonous gas. CO sources may include, but are not limited to, heaters, fireplaces, furnaces, appliances or cooking sources using coal, wood, petroleum products, or other fuels emitting CO as a by-product of combustion. Attached garages with doors, ductwork or ventilation shafts connected to a living space also are sources of CO.

The January deadline for these new requirements is of particular importance, as more CO deaths occur during the winter months than any other time of year, due in part to increased use of fuel-burning sources to heat homes, according to the National Fire Protection Association (NFPA).

CO laws coupled with education and awareness will help reduce the number of accidental poisonings from this silent killer. According to the American Medical Association, CO poisoning is the number one cause of accidental poisoning in the U.S. Over-exposure to this colorless, odorless gas leads to approximately 450 deaths and more than 20,000 emergency room visits each year. The California Air Resources Board attributes 30-40 avoidable deaths annually statewide from unintentional carbon monoxide poisoning.

Diagnosis of CO poisoning can be difficult because symptoms mimic those of many other illnesses and include nausea, headaches, dizziness, weakness, chest pain and vomiting. In more severe poisoning cases, people may experience disorientation or unconsciousness, or suffer long-term neurological disabilities, cardio respiratory failure or death.

Added Protection for Tenants:

The following is an overview of the new regulations:

• Owners of multi-family leased/rental dwellings (i.e. apartment buildings)  are required to install, repair, maintain and test the CO devices, pursuant to Civil Code 1954, which allows them to enter the unit with 24-hour notice.  The CO device must be operable at the time the tenant takes possession of the unit.
• CO alarms must have a distinct audible sound.  If the alarm is a combination smoke/fire and CO detector, the alarm must have separate distinct audible sounds for each function.
• CO alarms may be either battery powered or plug-in/hard-wired with battery back-up.

As the most trusted and recognized brand name in home safety, First Alert is committed to educating the public about the dangers of fire and CO poisoning. For additional information on carbon monoxide safety, visit http://www.firstalert.com/.

More information on the Carbon Monoxide Poisoning Prevention Act can be found on the Office of the State Fire Marshal website, at http://osfm.fire.ca.gov/.

Savvy real estate investors have long used periodic 1031 exchanges to maintain leverage, increase income and equity, and eventually divest themselves of "tenants, toilets, and termites" by exchanging into shares in larger, professionally managed properties.

Long-­term, this can be a good strategy. However, in the short term real estate is subject to market cycles similar to stocks and bonds. In 2006 the real estate bubble burst, leading to a decline in property values, transactions, and 1031 exchanges that reached bottom in 2009. Since then, some recovery has occurred, and our clients have begun asking us, "When will the market be ready for our next 1031 exchange?"

Income property values are driven in large part by supply and demand -­‐-­‐ the number of rental units available vs. the number of qualified renters competing for them. The renter population is growing at 4% per year (US Census Bureau), while construction of new apartments is adding only 0.5% per year to existing inventory, with no substantial speed-­‐up projected for the next 5 years (REIS). This is good news for property owners.

The strong increase in renter population is being driven by 3 factors. The first is immigration. About a million legal immigrants come to this country each year, and 85% of them rent, as opposed to only 32% of existing US residents. (National Multi Family Housing Council)

Then there are Baby Boomers downsizing in retirement. While most are homeowners and will remain so, an increasing percentage are opting, either by necessity or choice, for the flexibility, mobility, and maintenance-­‐ free living of being renters (National Multi Family Housing Council).

The greatest increase in demand for rentals is coming from the children of the Baby Boomers, known as Echo Boomers. This group is 75 million strong, and of an age when most singles and young families have traditionally rented while saving to buy their first home. Now, due to the economy and changing lifestyles, many of them are postponing or even rejecting home ownership in favor of the lower debt and greater flexibility afforded by renting (National Multi Family Housing Council).

To keep pace with renter population growth, 10 million additional apartment units will be needed in the next 10 years. That will require $1 trillion in invested capital, but it's just not available from the traditional sources (Freddie Mac). Lenders tightened up on credit requirements tremendously in response to the mortgage crisis of 2006-­‐2007, which in turn collapsed new construction to its lowest level since World War II. The situation is now easing a bit, but will continue to limit construction of new apartments for at least several more years (Witten Advisors).

Due to these factors, it's becoming more and more of a landlord's market. National vacancy rates peaked at 8% in 2009, but are now down to about 5% (MPF Research. And, at the end of 2011 vacancy rates in Los Angeles were only 4.1% (Los Angeles Housing Department). Meanwhile, rents on new leases have increased 8% nationally since 2009 (MPF Research), and are predicted to grow another 3-­‐6% nationally, and 5-­‐6% in Los Angeles, during 2012 (National Apartment Association). As a result, multifamily property values have largely recovered (Grubb & Ellis).

On the 1031 exchange front, transactions doubled in 2011 over 2010, and so far in 2012 are running at 4 times their 2011 pace (Exeter 1031 Exchange Services). So, the game is definitely back on.

Of course, when doing a 1031 exchange, it's important to get a good price on the replacement property. Cap rates in Los Angeles are lower than the country as a whole, so it may make sense to look at other metro areas where they are more attractive (Jones Lang LaSalle). There is also a great window of opportunity right now to acquire properties at a discount from owners in distress and banks that have foreclosed, and to convert B and C properties to A's as the demand for upscale rentals drives gentrification in certain areas (RK Properties).

When the time comes for you to sell your property we have the experience and relationships to help you find the right 1031 solution and replacement property for your individual circumstances. For a personal, private consultation, give us a call at 626-­‐588-­‐1520.

Robert "Rusty" Tweed is president of Tweed Financial Services, Inc. an independent, financial planning and investment management firm. Mr. Tweed has educated thousands of investors on real estate investment and estate and trust issues through his popular seminar series since 1997. A Certified Estate Advisor, he is a member of the Real Estate Investment Securities Association and the National Association of Financial and Estate Planners. Tweed Financial Services offices are located at 2060 Huntington Drive, Suite 1, San Marino, CA 91108. 626-­‐588-­‐1520. www.tweedfinancial.com. As with any real estate investment there are various risks to commercial real estate, including but not limited to: illiquidity, limited transferability, and variation in occupancy which may negatively impact cash flow, and even cause a loss of principal. Real estate values may fluctuate based on economic and environmental factors.

This is not an offer to buy or sell any security. Securities are only offered by Private Placement Memorandum or prospectus to suitable, accredited investors. Investments are highly speculative, subject to up-­‐front fees and expenses that may impact investor returns and outweigh the tax benefits, are generally illiquid, the stated investment objectives may not be met, appreciation and income are not guaranteed, conflicts of interest may exist, and there is potential for the loss of principal invested.

Securities products offered through Concorde Investment Services, LLC, member FINRA/SIPC. Advisory services offered through Tweed Financial Services, Inc., a registered investment advisor. Tweed Financial Services, Inc., is independent of Concorde Investment Services, LLC. 

The Best Of Peru & Machu Picchu – March 4, 2013

This Spring, from March 4-20, we have another amazing adventure for members as we journey to Peru and visit the best of the country including a once-in-a-lifetime trip to the lost Inca cloud city of Machu Picchu. We will visit and stay in 6 different regions of the country including Lima, Cuzco, Machu Picchu, Iquitos, Lake Titicaca and the Amazon River Basin. This 16-day trip will also feature two wonderful train trips, including a full day on board the luxury Andean Explorer from Cusco to Lake Titicaca.

The tour also includes an incredible 4-night stay at one of the most authentic riverside jungle lodges right on the Amazon River with touring by canoe with local guides. The visit to Machu Picchu happens over 2-days, 1-day with a knowledgeable local guide and a return on the second morning giving you a chance to explore at your leisure. This trip includes all touring, beautiful hotels and most meals. It will be16-days filled with history, archaeology and local cultural performances as we explore the best that Peru has to offer.

16-Days for $3,999 pp

$1,999pp Special Group Airfare including International flight from LAX and all 3 Internal Flights!

Normandy River Cruise & Beautiful Loire Valley – August 5, 2013

This coming August 2013, we return for the third time to the boutique 5-Star AMA Waterways with members as we continue our exploration of the great rivers of Europe. We have designed a tour that includes a 7-night cruise on the Seine River that meanders through the stunning scenery and hamlets that dot the countryside of Normandy, France. Towns like Vernon, Giverny, Rouen, Les Andelys and Conflans – charming cities and villages many people don’t visit when coming to France. In addition to this, we’ll take members deep into the heart of the scenic and famous Loire Valley and stay 2-nights at a 17th century country Inn (Auberge) that you would not normally stay at on a typical group tour. During our stay in the Loire, we will tour a few of the most spectacular Chateaus in the area.

Rounding out the trip, we’ll begin with 2-nights in Paris at the historic landmark Opera Hotel and take you off-the-beaten-path on walking tours that show a side of Paris you might never have seen. We have also included a special nighttime visit to the top of the Eiffel tower to see the City of Light the way it was meant to be seen! Don’t forget a fabulous Parisian welcome dinner as we start off the trip right from Paris.

11-Nights – 5-Star Trip Only $4,199pp + Airfare (includes most meals!)

Don’t forget to talk to your tax professional about the benefits of association travel.

For a BROCHURE or RESERVATIONS, contact Stewart Tours 866-944-3036 or StewartTours.com.

Property managers across the nation are turning to a CSI strategy to battle dog poo. There’re using DNA technology to match which canine is responsible for leaving the piles so their owners can face fines.

Just the idea of using the technology people are used to seeing on the Crime Scene Investigation TV shows was enough to get residents at Legends at Taylor Lakes, a Montgomery apartment community, to clean up their act.

“We sent out letters to residents about what we were going to,” said property manager Joe Johnson. Legends has been using the service for about six weeks. “The problem of owners not cleaning up after their dogs just disappeared.”

PooPrints, a division of BioVet Pet Lab, developed a process in which DNA samples can be collected from dogs. The samples then can be used to determine which dogs are leaving waste behind. The company based in Knoxville, Tennesse, markets the service to property management companies, apartment complexes, condos and homeowners association. The company now has clients in 28 states, Israel and Singapore, said Eric Mayer, director of business development. Mayer said PooPrints is the only company currently providing this service and it is working on getting a patent.

Clients collect samples of waste and send them to the PooPrint lab. “The results won’t come back as showing a beagle left the pile of waste,” Mayer said. “It will be the beagle in Apartment 3A left the waste.”

Kendall Wahlert, a resident of Legends, likes the idea. She was recently walking Bro, her miniature Australian shepherd and had a plastic bag tied to the handle of her retractable leash to clean up any mess he left behind. “I’m for anything that would mean fewer piles,” she said.

The service works, said Michele Mann, regional property manager at United Residential Properties in Macon, Ga. The company manages residential properties in Alabama, Georgia, South Carolina and Tennessee. A test at a Knoxville complex started six months ago. The others came on board about two months ago, she said.

“We have seen our waste problems almost disappear. We fine residents $150 if they don’t clean up after their dogs,” she said.

Getting the DNA sample is $29.95 per dog, and each sample test is $49.95, Mayer said, each client, has its own policy governing fines.

Reprinted from USA TODAY, published in on June 12, 2012, by Marty Roney.