How Not To Get Sued in 2017

1 2017 © AppFolio, Inc. Confidential.


How Not to Get Sued in 2017

Presented by Managing Partner Puneet Singh, Law Offices of Kimball, Tirey & St. John LLP

Sponsored by AppFolio Property Manager and Inman


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Hello!I am Puneet Singh

Managing Partner, Law Offices of Kimball, Tirey & St. John LLP


Introductions• Legal disclaimer

o This seminar offers general information only, and is not intended as legal advice

o Attendance at this training does not create an attorney-client relationship with the speaker or the firm they represent

o For legal advice on specific issues, please contact an experienced attorney

o The information contained in this training may not be duplicated in any way or duplicated in any other medium without the prior written consent of Kimball, Tirey & St. John LLP


About the Kimball, Tirey, & St. John LLP • Representing owners and

managers of residential and commercial properties for over 35 years.

•

• Statewide representation• Areas of practice

Bay Area

Sacramento

San Diego

Los AngelesOrange County

WWW.KTS-LAW.COM


Preventive Law


Preventive Law

EducationEstablishment

of policiesConsistent

enforcement and…


Every Step of the Way…

Document, document, document!

ImportanceValue of written v. oral evidence CreationPurposeNeutral, objective and professional Procedures StoragePhysical v. digitalTime frames


Don’t Get Sued For…

Accessibility Violations

Fair Housing & Employment Issues

Landlord/Tenant Disputes & Class Action Lawsuits






• The Americans With Disabilities Act (ADA)

• Who’s getting sued and why?

• Construction Accessibility Requirements

• Certified Access Specialist (CASp)


#1 Accessibility Violations

Web Content Accessibility Guidelines 2.0 AA Standards

Increase in ADA lawsuits over digital content on websites and mobile applications


Fair Housing Issues


17 2017 © AppFolio, Inc. Confidential.#2 Fair Housing Issues

2015 TOP DFEH HOUSING COMPLAINTS BY PROTECTED CLASS NUMBER OF CLAIMS

1. Disability 1,2592. Race and Color 8423. Retaliation 8004. Sex (including Gender, Gender Identity, Gender Expression, Pregnancy, Harassment, and Orientation)

588

5. Familial Status/Marital Status 5326. Source of Income 3267. Ancestry and National Origin 2668. Age (40 and over) 185

9. Association with a Member of a Protected Class 157

10. Religion 9511. Genetic Information or Characteristics 46

18 2017 © AppFolio, Inc. Confidential.#2 Fair Housing Issues

2015 TOP 5 COUNTIES WITH THE MOST DFEH COMPLAINTS NUMBER OF CLAIMS

1. Los Angeles 374

2. San Diego 115

3. Sacramento 92

4. Santa Clara 73

5. Orange 72


#2 Fair Housing’s Biggest Issues: Assistive Animals

Most Common Disability

Cases: Assistive Animals


#2 Fair Housing’s Biggest Issues: Assistive Animals

• Common disability-related accommodation request

• When may a Landlord request verification?

• Rise in online services that provide verifications/ certifications

• DFEH proposed regulations


#2 Fair Housing’s Biggest Issues: Mental Illness


Cases: Mental Illness


#2 Fair Housing’s Biggest Issues: Parking


Cases: Parking


#2 Fair Housing’s Biggest Issues: Hoarding


Cases: Hoarding


Fair Housing’s Biggest Issues

Discriminationo Includes showing a preference

Protected Classes Include:o Familial Statuso Sex

• Transgender protectionso And others…



New HUD guidance re: criminal background checks

o Released April 4, 2016o Applies to all housing providerso Use of criminal background checks

may violate fair housing lawshttp://portal.hud.gov/hudportal/documents/huddoc?id=HUD_OGCGuidAppFHAStandCR.pdf

http://portal.hud.gov/hudportal/documents/huddoc?id=HUD_OGCGuidAppFHAStandCR.pdf





Discrimination Protected Classes (cont.)

• Familial status• Source of income

• Section 8?• Sex

• California includes: • Gender• Gender identity• Gender expression• And others…



• Applies to single user restrooms made available to the public

• Must be identified as all-gender toilet facilities

• Updated signage must comply with Title 24 of California Building Code

• Compliance date: March 1, 2017

Restroom Signage – AB 1732:


Landlord / Tenant Disputes & Class Action Lawsuits


29 2017 © AppFolio, Inc. Confidential.#3: Landlord/ Tenant Disputes & Class Action

Lawsuits

Late Fees:Requirements:

• Included as part of a written Lease

• Reasonable• Based on actual damages • Actual cost vs. Liquidated

damages

Can also apply to:• Transfer fees • Break lease penalties• Concession charge backs


Lawsuits

Security deposits:CA Civil Code §1950.5Common Pitfalls:

• Overcharging • Delay • Failure to:

• Provide accounting • Provide pre-move out

inspection

Penalties


Lawsuits

Habitability Issues:Pest control:

• Notifications & Disclosures:• Landlord/authorized agent

• Civil Code §1940.8.5Mold:

• Updates to Health & Safety Code §17920 and Civil Code §1941.7


Lawsuits

Bed Bugs:Nationwide Increase:

• Ongoing problem at Residential communities

Treatment:• Resident cooperation• Seek advice from a

knowledgeable attorney


Lawsuits

Bed Bugs - AB 551: (Cont.)• Seeks to raise bedbug awareness and

treatment obligations for landlords and tenants

• Creates new Civil Code §1954.600 -1954.605

• Prohibits renting bed bug infested units


Lawsuits

Bed Bugs - AB 551: (Cont.)• Requires dissemination of bed bug

notice:• General information as provided by statute

• Procedure to report suspected infestations

• Allows entry to unit for inspection and treatment

• Requires tenant cooperation

• Notice to tenants of pest control operator’s findings within 2 days of receipt


2017 Trends


Rising Rents & Rent Control Initiatives

Continued rise in legislation among local governments to implement eviction and/or rent control ordinances: • Richmond

• Mountain View

• Emeryville

• Alameda

• Berkeley

• Oakland

• East Palo Alto


Vacation Rentals

• Ongoing popularity• Increased legislation• State laws • Local ordinances • Subleasing concerns• Landlord managed vacation rentals


Smoking

Continued increase of smoke-free or smoking-restricted properties throughout California: www.center4tobaccopolicy.org/localpolicies-smokefreehousing

New laws:• Local

• HUD Final Rule

http://www.center4tobaccopolicy.org/localpolicies-smokefreehousing


Marijuana

Health & Safety Code §11362: • Persons 21 and older

• Allowable amounts

• Storage

California Law - Proposition 64: (Adult Use of Marijuana Act)


Marijuana

• Federal law• Response by local

governments • Impact on multi-family housing• Recreational v. Medical

Marijuana

California Law - Proposition 64: (Adult Use of Marijuana Act)


A Quick Checklist: Avoiding Lawsuits



Put procedures in place for handling disability requests

• Get fair housing training• Have proper forms

Have a compliance review done for the property• ADA• Fair housing new construction

(if applicable)



Establish legally appropriate polices

Have all legal documents reviewed on a regular basis, including:

• Leases• Rental applications • Community rules• Rental criteria• Notices



• Pay attention to complaints• Document, Document, Document (with care)



And especially…Get advice early when you see trouble brewing

Doing the one right thing now is often far cheaper than doing twenty right things later


Resources

For further information:• Law Offices of Kimball, Tirey & St. John

oOffices statewideoWide range of services oLive seminars and private trainings

• www.kts-law.com oArticles oLegal AlertsoWebinars


Thank You!

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For more information, please visit our website:www.kts-law.com

Or give us a call:800.525.1690


Thanks!Any Questions?

Visit www.kts-law.comor give us a call:

800.525.1690


How Not To Get Sued in 2017

Real Estate