AAGLA is Hard at Work — Again, as Usual

s midyear approaches, I find myself reflecting upon our accomplishments from the beginning of my term as AAGLA President in January of 2007. We have successfully merged with the former Valley association, completed the sale of their former headquarters building in Van Nuys, refinanced the long-term debt secured by our headquarters building on Westmoreland Ave. in L.A., and begun the process of improving upon our membership and technology platforms.

I am proud of all we have accomplished to date. Nevertheless, we fell short of achieving all of the important goals that I outlined in my January 2007 Apartment Age column. You have my pledge to continue to improve upon an already good effort to date.

Your association (and I do mean "your" association) operates in an increasingly competitive environment. We must continue to strive to do a better job of delivering value to you for your hard-earned dollars and communicating effectively with you, our members. We cannot be successful without your help.

Our primary focus continues to be membership (growth and satisfaction) and our profit centers (advertising, tenant screening, seminars, etc.), which help to support our very successful political representation of apartment owners locally and in Sacramento.

Please send me your ideas and suggestions for improvement via email at jschulhofaagla.org  I promise to respond to you directly, or indirectly through a staff member if they are better qualified to address your questions and/or suggestions.

2008 Trade Show Scheduled

Please make a note of our upcoming Trade Show to be held at the Sportsman's Lodge on October 7. We have moved the show and seminars indoors by popular request to this historic and beautiful venue. Stay tuned for more on this exciting development in upcoming issues of the magazine.

Prop. 98 — The Final Push

Lastly, we also need every member to support the California Property Owners and Farmland Protection Act (CPOFPA), Prop. 98, a new proposed Constitutional Initiative measure. If passed by the voters, the CPOFPA will permanently phase out rent control laws in the State of California and protect you from unfair eminent domain takings by government.

In other words, the CPOFPA wipes out the "taking" of private property for the purpose of conferring your economic benefits on another private individual. Substantial funds are still needed to pass the most important initiative we've seen since Proposition 13. Let's make history together. Please help us with your votes and your dollars. And don't forget to vote No on Prop. 99. It's important.

This important Constitutional Initiative can change the face of our industry forever. Please help us support and pass CPOFPA. Thank You.

April is Fair Housing Month — Nationally and in California

iscrimination in housing was outlawed four decades ago when Congress passed, and the President signed, the Fair Housing Act of 1968. If you discriminate against race, color, national origin, sex (including sexual predators under state law), family status, or disability, you violate federal law.

A property owner or agent cannot refuse to sell or rent to an individual who is a member of one of the above‑listed protected classes when anyone makes an offer to buy or rent real estate.

You also cannot charge a higher security deposit or change the terms of a lease depending on family status, or charge higher application fees

based on race. Of course you cannot lie on the availability of a unit, whether for rent or for sale. A landlord must also set reasonable non‑discriminatory terms for an applicant with disabilities.

The State of California also provides fair housing protection through the California Department of Fair Employment and Housing. Complaints can be lodged at 1800-884-1684 during regular business hours, or to obtain an interview with a state investigator.

Phyllis Cheng is the director of California's Department of Fair Employment and Housing. Her department uses an automatic on‑line system to receive complaints. Prior to accepting her appointment by Governor Arnold Schwarzenegger in January 2008, Cheng was counsel in the Los Angeles offices of Littler Mendelson.

In conclusion, AAGLA has supported and promoted fair housing for decades, well before 1968. It's the right thing to do, and it makes good business sense, too.

Vote Yes on Prop. 98

Finally, don't forget to vote Yes on Prop. 98, the property rights initiative. It's just as important that you vote No on Prop. 99 (the fake property rights initiative).

Too Little, Too late

espite the fact that the Federal Reserve Bank just completed an unprecedented 125-basis-point reduction of the Federal Funds Rate within a single month (the interest rate charged by banks with excess reserves at the Federal Reserve District Bank to banks needing overnight loans to meet reserve requirements), a recent survey of banks showed they are much more stringent in their extension of credit.

That is an important distinction because you and I cannot borrow money from the Federal Reserve Bank. As a result, how much credit the Fed provides, and at what price, impacts us only indirectly. It takes a bank to make that loan to pay for our house, or our apartment building purchase or refinance.

Since the beginning of 2006, over 200 major U.S. lending operations have collapsed, leaving a huge void in their wake for those seeking less than “AAA” quality residential or commercial loans. Meanwhile, foreclosures are soaring as home prices tumble.

In past downturns, the last obligation you abandoned was your home loan. Today, many borrowers appear to have little reservation about just "walking away" if they are upside down (have no or negative equity). This marks a significant change in the mentality of Americans as it relates to their financial obligations and may affect the availability and pricing of credit in the future.

Lenders are looking for a greater margin of safety today and, thus, are much less willing to make what they perceive to be marginally risky loans. Therefore, the Fed's rate cuts may provide far less help to our slowing economy this time around.

Happy New Year!

e begin the New Year a bigger, stronger, and better organization overall. We completed the merger with the Apartment Association of San Fernando Valley/Ventura County, emerging as one of the largest apartment trade associations in the United States.

We also have strengthened our balance sheet as a result of the merger and the restructuring of our long-term debt. On the member service side, we have made tremendous strides in membership services with an expanded and improved website as well as enhancements across the board in all membership service areas.

Politically, we have strengthened our political relationships over the last year, better enabling us to achieve our tactical and strategic objectives locally and statewide.

Finally, in 2008 we shall begin to see the fruits of our labor with respect to our merger as we achieve greater economies of scale and increased income due to our larger membership base.

It is no surprise that the coming year will be full of new challenges. The business landscape has become much more competitive than in the past. AAGLA is a mutual-benefit corporation owned by the members (That's You) and operated solely for your benefit. Our competitors offer some of the same services that we do, and sometimes at marginally lower costs (but not very often). However, like Exxon and General Electric, their mandate is to maximize profits and only that.

Your association spent well over a half a million dollars over the past five years in the political arena alone (which includes support for fair‑minded legislators' political campaigns and our lobbyists).

Supporting our lobbyists and friends in elected office is very expensive. Without their political influence and representation locally and statewide, you could be laboring under punitive and tyrannical legislation, depriving you of your basic rights, profits, and even your property.

If we are to continue to support and represent you effectively, we must have your commitment and support through your donations to our Political Action Committee (AAGLA PAC), payment of your annual membership dues, and use of our member services and programs, such as tenant screening. Please make the same commitment to AAGLA that AAGLA has made to you for the last 90 years. I promise you that with your support we can and will make a difference.

I would like to offer my congratulations to Trevor Grimm, the HJTA, AAGLA and everyone else involved in raising $2 million, collecting 1.1 million signatures, and qualifying the California Property Owners and Farmland Protection Act (CPOFPA) for the June 2008 Ballot.

The ballot measure offers sound reforms that specifically prohibit government from taking private property from unwilling sellers for non-public purposes (such as building a strip shopping mall that nobody needs). The most significant aspect of this measure for apartment owners is permanent vacancy decontrol, eliminating rent control over time. We must support CPOFPA with our votes and our money. If we don't, the bad guys will win again.

In other news, our 90th Installation Dinner was a huge success thanks to Charles Isham and his dedicated staff. We had a terrific turnout this year, particularly from the political spectrum, where new and old friends alike supported one of our most important traditions.

My many thanks go out to Harold Greenberg (Chairman of the Los Angeles Government Relations Committee and Past President), Richard L. Otterstrom (Vice Chairman of LAGRC), Jim Clarke, Local Government Relations Manager, Steve Carlson, Sacramento Lobbyist, and the many others who have worked tirelessly to forge these all important relationships locally and in Sacramento. Lainy Parry was this year's recipient of the 2007 Presidential Leadership Award in recognition of the tremendous work she has done collaborating with the City of Santa Monica to serve landlords and tenants alike.

This year, we shall focus on membership growth; improving communication with our members and the community at large; further expanding and improving membership services; seeking out strategic partnerships and acquisition opportunities; growing profitability and our balance sheet; continuing to expand our political influence and PAC; and providing all the support we can to help pass the California Property Owners and Farmland Protection Act on the June 2008 Ballot. Best wishes for a happy, healthy, and prosperous New Year!

Year-End Wrap-Up

t's hard to believe that this year is almost over, but it is. I have had a great experience serving as your President for 2007, and I look forward to one more year. Looking back, I feel extremely satisfied that AAGLA has made considerable progress this year.

At the beginning of the year, I wrote about things that I hoped we could accomplish, including expanded member services, long-term financial stability, and better member programs. I think we've done pretty well. Now, let's look at what's new and different at AAGLA.

Our biggest achievement was the smooth and successful merger with the Apartment Association San Fernando Valley/Ventura County. Last August, we welcomed over 700 new members to the AAGLA ranks. With the merger came other assets, including property that will aid in the future financial security that a not-for-profit trade association needs in order to keep membership dues lower for you. More importantly, this union makes AAGLA one of the largest rental property trade associations in the country — certainly, the largest "local" apartment association.

The AAGLA website has been over-hauled and enhanced tremendously. We are now receiving close to 200,000 user "hits" each month. Advertising is being displayed on the non-member home page, providing an additional opportunity for vendors and an added revenue stream for the association.

Our member billing system has also been upgraded to work more efficiently. The new invoices are easier to read and return with your payment. They also have the capability to include time-sensitive news and messages about upcoming events and programs.

In other news, AAGLA is becoming even more of a powerhouse in the rental property industry. The AAGLA Political Action Committee has tripled the amount of money raised and contributed in each election cycle. We have gained sorely-needed, additional influence with state legislators; not only in the L.A. area, but now we are also in Ventura County. And, our influence extends outside Southern California to Sacramento as well. As a very well-known and respected group at the city and county levels of government, we have achieved much this year (see Jim Clarke's webpage).

These are just a few of the many accomplishments that have been made this year, and you, our valued members, can be proud. It is you we listen to and represent to the best of our ability. Our direction comes from you. So, thank you for that and for your continuing support.

With 2008 just around the corner, we are gearing up for a very exciting new year. I intend to continue in the same direction and will bring you more details of our 2008 plans in my inaugural article in January. With that, I would like to wish you all a happy holiday season and a very prosperous new year.

Musings About Investment Risk

hile my articles usually relate exclusively to AAGLA, this month I thought I would touch upon the topic of risk. The U.S. Mortgage Market is under enormous stress as lender bankruptcies, hedge fund failures, and rising foreclosures have kept many of us captivated and anxious over the last several months. The events of the recent past underscore the failure of the mortgage industry to anticipate and adapt to external market forces.

I sometimes wonder if we (i.e., apartment investors) are not overly sanguine about the potential external risks to our property valuations and cash flows. I remember the painful lesson learned while a commercial lender in the mid‑90s in the Los Angeles area. I still have vivid recollections of my conversations with senior management pertaining to our collective assessment of the bank's overall downside risk in the event of a regional recession. We believed that California's underlying fundamentals were so strong that our economy was impervious to a substantial economic downturn and there fore we estimated our downside to be no more than 5% to 15% of current valuations: however, contrary to our risk assessment, values fell up to 60% of our original appraisals.

Could we only have anticipated the confluence of events to follow our meeting and sought risk mitigation actions to alter the outcome? The collapse of the Savings & Loan industry (and the government's improvident liquidation of real estate assets which was to follow), the end of the "Cold War" (and the subsequent collapse of the Southern California defense industry), the 1992 Los Angeles Riots, 1994 Northridge Earthquake, and the severe economic malaise which paralyzed our industry were devastating to investors and lenders alike.

Today we all have good reason to be thankful for the strong apartment property fundamentals we currently enjoy. A Housing Affordability Index in the mid‑teens, strong employment, population growth, and supply side constraints have afforded owners substantial rent growth and high occupancies over the last few years.

What might upset the "Apple Cart"? A severe recession, a catastrophe (e.g., an earthquake or an act of terrorism) resulting in a significant uninsured or underinsured property losses, the implementation of an immigration bill resulting in the wholesale deportation of illegal immigrants residing in the Southern California region, a severe contraction of the credit market, punitive rent control legislation, etc.

My purpose is not to create anxiety about the future but simply to provoke thought and to recommend that all of us review our investment portfolios from time‑to‑time to ensure an appropriate level of diversification across different asset classes (i.e., real estate, bonds, stocks, etc.) as well as

the practice of risk mitigation where possible. Think about it.

AAGLA Is Now Bigger and Better Than Ever

 would like to thank all of you who participated in AAGLA's historic Special Meeting and the vote to approve the AAGLN AASFV/VC merger on July 19, 2007.

As promised, those of you who participated in the special meeting were immortalized on the September cover of Apartment Age magazine. We emerge from this union not only as the largest local apartment trade association in the United States, but as a more politically potent representative of our members with significantly more resources to provide necessary services and representation.

The integration of the two trade organizations is well underway and is under the capable leadership of our Executive Vice President, Charles A. Isham. Our staff and Board of Directors are delighted to welcome all of our new Valley members into the AAGLA family.

We look forward to providing all of our new members with an expanded suite of products and services as well as effective representation at city hall and in our state capital. If you haven't already gotten it, your membership information is on the way to you. Meanwhile, I encourage you to visit or contact by telephone

any of your conveniently-located AAGLA offices with any questions or comments you may have, or just to say hello to AAGLA’s courteous and helpful staff members, or to fellow AAGLA members. The telephone numbers and addresses of our offices are listed in the ABOUT AAGLA page.

AAGLA is owned by its members and operates exclusively for their benefit. Therefore, it is in your best interest to support AAGLA by using all of our services and product offerings. They include: Free Legal and Management Assistance, Low-cost Tenant Screening Services (protect your investment before it's too late), free operating and management forms, political representation in Sacramento and across L.A. County, our free monthly Apartment Age magazine, Manager Training and Placement, Special Saturday Morning and Monday Evening Member Meetings (with special guests), low‑cost Seminars, and Trade Shows, and much, much more.

We look forward to serving and meeting all of our new Valley members.

AAGLA Welcomes 800 New Members Aboard!

I am very pleased and excited to announce that the merger between the Apartment Association of San Fernando Valley/Ventura County and the Apartment Association of Greater Los Angeles is complete. The proposal passed unanimously with the required votes by each of the associations' separate memberships during the month of July. Our newly united association will keep the AAGLA name.

This accomplishment increases our organization's size by 800 members, making AAGLA the largest local apartment association in the United States. Our new members will benefit from better and faster service as well as improved legislative and political advocacy at the local and state levels.

With our expanded numbers, AAGLA will, in turn, gain more clout in city halls around Southern California and in the business community as a whole.

We are proud to welcome our new colleagues from the San Fernando Valley and Ventura County. I look forward to meeting many of you at our member meetings held on the second Saturday of each month at our Westmoreland Ave. headquarters office. See Charles Isham's article on page eight for more details about our new association. Again, welcome aboard!

President's Circle

Our new bigger association has the potential to be one of the most active business groups in Sacramento and around Southern California. Our Political Action Committee will also have the ability to grow both financially and influentially.

With that said, I would like to invite all AAGLA members, new and not‑so‑old, to join the 2007­2008 AAGLA President's Circle. This program, detailed in a recent member mailing, helps benefit AAGLA PAC and increases the power and voice of rental property owners locally and statewide. Your premium contribution comes with extra benefits, such as special recognition, free tenant screening certificates, free special events and more. For more information, please contact Jim Clarke at 213‑384‑4131.

Lastly, I would like to thank the members of AAGLA's Board of Directors who have seen fit to elect me to another term as your president in 2008. I am honored to serve and expect more great things to come. I will detail our objectives for 2008 in my January 2008 article.

OUR MOMENT IS NOW

0ur 2007 Trade Show, The Best in the West, was a big success. Over 900 members and friends spent the day with us and left the show enlightened and entertained.

Sixty exhibitors and six seminar speakers spent the day educating AAGLA members about how to maximize rental income under challenging circumstances (and lots of other important topics). At the same time, our exhibitors were demonstrating their products and services to all who visited.

And it was all right next door to the fabulous Autry National Center. What a combination! The Autry National Center celebrates the American West through three important institutions: the Museum of the American West, the Southwest Museum of the Amencan Indian, and the Institute for the Study of the American West. Members and exhibitors attending the show were given free passes to the museum. Over 200 toured it and reported that it is both interesting and informative.

I believe this is the best venue to date for our Annual Trade Show. Next year's Trade Show will probably be scheduled in April or May to avoid the warmer weather. Please send us your comments and suggestions to further improve the show.

I want to thank AAGLA staffers Kevin Postema and Angela Sapien for all their hard work and a terrific show.

NEWEST AAGLA LAWSUIT FILED AGAINST L.A. Ciiy

On May 30, the Mayor of Los Angeles signed an ordinance into law that subjects new apartment units that are built on former rent-stabilized properties to one of two forms of "price (rent) control." This policy is a clear violation of the state Costa-Hawkins Rental Housing Act.

Thus, AAGLA and the California Apartment Law Information Foundation filed a lawsuit against the city last month on behalf of the entire membership.

Please help support this important challenge to the city's illegitimate attempt to further regulate our industry and reduce the value of our properties. Please help support this lawsuit with your checks.

CPOFPA EXPLAINED

Lastly, we also need every member to support the California Property Owners and Farmland Protection Act (CPOFPA), a new proposed Constitutional Initiative measure. If passed by the voters, the CPOFPA will permanently phase out rent control laws in the State of California.

The CPOFPA wipes out the "taking" of private property for the purpose of conferring your economic benefits on another private individual. Over one million signatures are required to ensure that the measure obtains the required 763,789 valid signatures necessary to qualify it for the June 2008 ballot. Please help us with your signatures and your dollars.

This important Constitutional Initiative can change the face of our industry forever. Please help us support CPOFPA (click here for more details).

OUR MOMENT IS NOW

I asked the Board of Directors at our June 13, 2007, board meeting, to adopt and approve a two-part motion. I asked it to allow the merger of the Apartment Association of Greater Los Angeles (AAGLA) and the Apartment Association San Fernando Valley/Ventura County (AASFVNC), and to call a special meeting of membership for the sole purpose of voting on the subject merger. The surviving entity will be AAGLA. The special meeting will be held on July 19, 2007, at AAGLA's main office, located 621 S. Westmoreland Avenue, Los Angeles, California.

I am extremely excited and pleased at the pending merger of two great apartment associations that will emerge from this process as one (stronger and better able to serve their members). In fact, we will be the largest apartment association in the United States of America. Napoleon Bonaparte once said, "in war there is but one favorable moment; the great art is to seize it," our moment is now.

There are many benefits to the members of the merged entities.

As the largest and the best apartment association in the USA, we will increase our political clout and resources (i.e., PAC funds pay for lobbyists and lawsuits). The current members of AASFVNC will benefit from enhanced online services available at www.aagla.org, which include interactive legal forms allowing the user to personalize their forms with their entity name, tenant name, property address, rent amount, etc., and to print forms directly from our website.

There will also be cost savings achieved through greater economies of scale, which will allow us to better serve you. Finally, AAGLA's balance sheet will be strengthened, as well as numerous other benefits to all of you.

Lastly, I would like to thank Past Presidents Jerry Factor, Larry Cannizzaro, William Shaw, and Trevor Grimm, Executive Vice President Charles Isham, and others who invested their time and energy to bring this merger to fruition. Please support the proposed merger with your vote on July 19, 2007. We shall take a commemorative photograph after the vote is completed, and it will appear on the cover of the September issue of Apartment Age. This is your opportunity to become a part of AAGLA history. I shall look forward to seeing you at our Special Meeting.

SINK OR SWIM

Political representation is essential to the long‑term viability of our industry. Effective representation requires resources (PAC contributions to pay for lobbyists, advertising, etc.), your time, and your votes. There are simply more renters than landlords, so we must make every vote count.

Most recently, we found ourselves compromised again by the duplicitous actions of the Los Angeles City Council (See Jim Clarke's column).

The Condo Conversion Moratorium was traded for higher relocation fees for tenants displaced when the Ellis Act is used to convert a building to condos or for redevelopment (or so we thought).

In all of our conversations with our elected representatives, that was the deal. However, in the final draft of the City Council ordinance, mysteriously (because no one seems to know who inserted it???), some additional language was inserted. This new ordinance now includes "good-faith" relocation evictions as well.

If you are contemplating moving your 76-yearold mother into your duplex, it may cost you as much as $17,000. Thankfully, we have good fair-minded Council members like Bernard Parks (and others) who are fair and have the best interests of their constituents and the city at heart. He and Dennis Zine have promised to author "clean‑up" legislation in the near future.

Now, AAGLA is calling on you again. We need you to send your letters and e‑mails to your council members telling them of your outrage at their most recent trickery. You can find their email addresses, phone, and fax numbers on the net at www.lacity.org or by phone at 213‑485­2121. Also, contact the council members who serve on the Housing, Community & Economic Development Committee, Jan Perry, Ed Reyes, Herb Wesson, Eric Garcetti and Tony Cardenas.

From time-to-time, Jim Clarke, our local lobbyist, must also have your support at city hall. If you would like to volunteer, please contact him at jim@aagla.org or by phone at (213) 384­4131 ext. 335. On these occasions, transportation will be provided by AAGLA from our headquarters office.

We must speak with our votes and our money to protect our industry from the increasingly threatening voices of those who seek to unfairly regulate and deprive us of our property.  

AAGLA GOES TO THE CAPITAL

0n March 21, the California Housing Providers Coalition (CHPC) held its Annual Legislative Leadership Conference in your state capitol. CHPC is a coalition of six apartment associations from Garden Grove to Santa Barbara. AAGLA is, of course, the largest member of the coalition (in terms of membership) with the biggest lobbying budget.

CHPC communicates to policy makers the negative consequences of further regulation on an already overregulated industry. Proposed legislation is often wrongly based upon anomalous events at the potential expense of landlord and tenant alike. CHPC and their advocates work diligently to clarify and help solve perceived problems with our lawmakers to avoid unnecessary and potentially costly and destructive legislation.

AAGLA was well represented. I was accompanied on this one‑day capitol summit by AAGLA Vice Presidents Arnie Corlin and Earle Vaughan, Past Presidents Larry Cannizzaro and Irma Vargas (our State Committee Chair), and by Local Government Relations Vice Chair Richard Otterstorm. Jim Clarke (Manager, Government Relations), and Steve Carlson (State Legislative Advocate) also attended. (Read Steve’s articles under the menu “Government Issues, California).

In addition, the Foothill Apartment Association was represented by its President, Charles F. Dunn, the San Fernando/Ventura County Apartment Association was represented by its Past President, Joe Cobert, and the Santa Barbara Apartment Association was represented by its President, Thomas W. Sutphen and its Chief of Staff, Joan Brooks. We embarked upon our ambitious schedule of having meetings with 14 Assembly Members and eight Senators within 7 hours (Wow!!!).

We had many meaningful discussions with these state leaders, and I believe we effectively explained our point of view on some key legislative issues coming before the California State Legislature. Never forget that your Association, AAGLA, is working tirelessly to represent your interests everyday, whether it be in Santa Monica, Beverly Hills, Los Angeles, Sacramento, or in any of the myriad of other municipalities that we serve in L.A. County.

We met with the following elected representatives and/or their staff: Assemblywoman Laura Richardson (D-Long Beach), Assemblyman Mike Davis (D-Los Angeles), Senator Mark Ridley Thomas (D-Los Angeles), Assemblyman Ted Lieu (D-Torrance), Assemblyman Charles Calderon (D-Montebello), Assemblyman Sam Blakeslee (R-San Luis Obispo), Assemblyman Paul Krekorian (D-Glendale), Senator Alan Lowenthal (D-Long Beach), Assemblyman Edward Hernandez (D-West Covina), Senator Bob Margett (R-Glendora), Senator Tom McClintock (R-Thousand Oaks), Assemblyman Curren Price (D-Inglewood), Assemblyman Anthony Portantino (D-Pasadena), Assemblyman Kevin De Leon (D-Los Angeles), Assembly Member Audra Strickland (R-Westlake Village), Senator Abel Maldonado (R-Santa Barbara), Assemblyman Pedro Nava (D-Santa Barbara), Senator Jack Scott (D-Pasadena), Senator Ron Calderon (D-Montebello), Senator Alex Padilla (D-San Fernando Valley), Assemblyman Lloyd Levine (D-Van Nuys), and Assembly Majority Leader Karen Bass (D-Los Angeles).

If you want to communicate directly with your state legislators, about our. issues, or our position on them, contact Jim Clarke for their phone numbers and/or email addresses.

AAGLA PROTECTS YOU AGAIN!

0nce again, the Apartment Association of Greater Los Angeles (AAGLA) has headed off another threat to our industry. Many of you may not be aware of the behind-the-scenes activities that AAGLA staff, Directors and members frequently conduct on your behalf. Recently, we became aware of a proposal by staff members in the City of Beverly Hills that was akin to the unreasonable Systematic Code Enforcement Program in Los Angeles.

AAGLA troops rallied to stave off this threat. I joined immediate Past President Bill Shaw, AAGLA Manager of Government Relations Jim Clarke, AAGLA Directors including, Earle Vaughan, Jerry Factor, Bob Magid and Christian Frére, along with several AAGLA members affiliated with the Beverly Hills Property Owners Association, in quickly stepping up to the plate.

This dedicated working group acted aggressively to launch a grassroots campaign (see Jim Clarke's page) and meet with Beverly Hills staff, members of the City Council, and candidates running for office in the March municipal election, gathering commitments to substantially revise the proposal and/or utilize existing remedies available to tenants. While this proposal is still under review, I believe that the powers that be have seen the light and will permanently table this ill‑conceived policy.

The issue is not just about the livelihood of our members in Beverly Hills. It is emblematic of an ongoing fight to prevent the spread of intrusive and unfair laws everywhere that, in the long run, will adversely affect rental property owners and tenants alike.

Moreover, this is a great example of how AAGLA can rapidly and effectively mobilize its considerable resources. You too can play a role in our efforts by volunteering and supporting AAGLA's Political Action Committee, which enables us to vigorously fight or promote any proposed policy that might impact your pocketbook. If you have any questions or comments, please e‑mail me at jschulhof@aagla.org. 

Stay (Or Get) Involved and Make a Difference

With the first quarter of 2007 coming to a close, my focus is shifting to the next quarter and the balance of the year. Your Board Of Directors has an ambitious agenda for 2007, and we are working hard to deliver on our commitment to maximize member value.

In fact, just last month we had our first board retreat in many years. It yielded many good ideas including a renewed focus on public education on such controversial issues as rent control. There is no shortage of thought‑provoking headlines everyday in the news on such issues as the war in Iraq, China's dizzying economic growth, the USA's growing trade deficit, the housing bubble, the subprime mortgage debt bubble, declining consumer savings rates, and on and on and on.

I do not mean to overwhelm you with worrisome news because there certainly is a lot of it, so here is some good news The apartment market is well positioned for another strong year. Housing affordability has plummeted in most major markets like Los Angeles County, causing vacancies to decline and rents to rise.

Unfortunately, our good fortune does not escape the attention of our elected and appointed leaders statewide for very long, and they will quickly begin to work their regulatory mischief. Stage Left: Renters' rights advocates and some politicians. Stage Right: The Apartment Association of Greater Los Angeles. Your generous contributions to our PAC, and to your Association, provide us with the sorely needed ammunition to fight to protect your rights as landlords and property owners.

Your participation in AAGLA is essential to our vitality and long-term vision as a member‑owned membership organization. Please find listed below three opportunities for your direct participation in your Association.

Monthly Membership Meetings

Please attend the monthly Saturday Morning or Monday Evening Member Meetings, held in L.A. and Santa Monica, respectively. They are informative and provide a forum to share your ideas and meet other members as well as the officers and directors of your Association (see page 22 for details.) We also solicit volunteers to aid staff in special projects from time to time. Call James Clarke for more information about that.

Seminars

Please participate in some of the many low‑cost seminars offered by AAGLA, and provide us with new ideas for topics to be covered in the future. AAGLA's seminars are extremely informative and often necessary for you to gain the expertise that will allow you to operate your building more safely and profitably.

Committee Meetings

Please try to participate in some of our committee meetings, held on the second Wednesday of every month (except Aug. & Dec.) and beginning at 10:30 am. The committee schedule is posted on the internet and on page 22 in the magazine, or you can call Barbara at 213‑384‑4131, ext. 326, to request a copy of the schedule. It is at the committee level where ideas are formulated, problems are solved, and opportunities and challenges are identified. The committee level work is exciting and provides an excellent opportunity to meet AAGLA director and members.

Your continued support is essential to our long‑term success. By investing your time as well as your money in your Association, you help shape the environment in which we do business and the future of our industry.

AAGLA Board Looks Forward at Retreat

By the time you read this article, we (i.e., the Board of Directors and the Executive Vice President of AAGLA) will have participated in an executive retreat with the theme "2007 and Beyond." The purpose of our retreat was: threefold.

1. To identify challenges and opportunities in the near and long term.

2. To make certain as an association dedicated to serving its members that we are doing the best possible job we can.

3. To synthesize the aforementioned into a long-term strategic plan for the betterment of the membership.

In another vein, so that we can improve our ability to communicate effectively with you, please send us an email at aagla@aol with your name and membership number. It's that easy. Once your email address is in our data base, we can communicate with you quickly and efficiently, saving your association postage money, which can be redirected to further enhancing member services and our lobbying efforts on your behalf. More importantly, it allows us to keep you instantly abreast of cutting edge developments (political, legal, and otherwise).

In 2007, it is our goal to improve upon an already excellent membership benefits platform.

In conclusion, I would like to thank Bill Shaw for his dedication and service to AAGLA as a multi-term President, and James C. Fleck and Kevin B. Postema for their hard work in writing and publishing a book about our history, AAGLA The First 90 Years, which you may have already received through the mail. If not, you will be getting it soon. I hope you enjoy the book as much as I did. Special thanks also go to Shaw for the book. It was his idea and he provided the impetus for producing it.

We encourage you to get involved in your Association, whether it is committee participation, Saturday Morning Meetings, or volunteering for special projects. For more information about getting involved, please call Jim Clarke at 213-384-4134, Ext. 335.

Meet The President

On the evening of December 1, 2006, I was sworn in as the new President of the Apartment Association of Greater Los Angeles (AAGLA), replacing former President Bill Shaw. Association General Counsel Trevor Grimm served as our swearing in officer, spelling out my duties and obligations as your new President, and those of our new members on the Board of Directors. My wife, Kyoko, and three children, Tristan, Marika and Mark, joined me for the ceremony and inauguration, which took place at the Jonathan Club in downtown Los Angeles.

For the past 90 years, AAGLA has been dedicated to serving our members in an ever-changing environment fraught with both risks and great opportunities for those committed to the rental housing industry. The level of dedication and purpose exhibited by our staff and that of our members has been truly inspirational.

Over the next 12 months we'll be focusing our activities in three primary areas.

• Membership value through new and better member services.

• Long-term financial stability for AAGLA.

• Development of a long-term strategic plan.

I plan to focus primarily on improving our already excellent membership services programs.

First, we will improve access to information and products via the Internet. I would also like to develop new services and products. Some goals include the following.

• An affordable insurance program for our members.

• Easy internet access.

• Expanded offerings in Apartment Age magazine.

• New educational courses to keep every member on the cutting age of both technology and the complex regulatory environment we must navigate every day.

Second, I shall work closely with the relevant committees and with our Executive Vice­President, Charles Isham, to develop and improve existing profit centers within our organization to provide all the necessary resources in the political arena in both L.A. County and at the state level in Sacramento to support important projects as they develop.

Finally, from time to time, every organization must re-examine itself from the bottom up to ensure its financial strength, relevancy, and overall value to its membership. Therefore, I think it is incumbent upon our staff, your Board of Directors, and you, our members, to develop a long-term strategic perspective for the future viability and success of our association.

I want to thank all our members for their confidence in me that led to the Board of Directors elevating me to the top position on AAGLA's Board. I promise you I won't let you down. Look for good things to happen over the next 12 months.