Archive

Posts Tagged ‘affordable housing’

Legal Update: Legislation that Real Estate Investors, Landlords and Veterans Should Keep Tabs on in the New Year.

January 4, 2018 Leave a comment

It is a beautiful and cold afternoon in downtown Grand Rapids today.

IMG_2039

We head into 2018 with some Michigan Bills that affect Real Estate Investors, Landlords and Veterans.

Veterans.

The Michigan Legislature is pushing hard to protect those who have served our country.

Yesterday MLive posted that the Michigan Legislature is taking up some 50 bills that will affect Veterans

One such bill I highlighted in a post last summer. On August 16, 2017 HB 4872 was introduced into the Michigan House.

The Bill would amend the “Elliott-Larsen civil rights act,” and would provide that veterans are included in the list of those protected by Michigan law against housing discrimination.

The Bill would define Military Service as:

“STATUS OF BEING AN ACTIVE DUTY MEMBER OF THE ARMED FORCES OF THE UNITED STATES OR A VETERAN WHO RECEIVED AN HONORABLE OR GENERAL
ADMINISTRATIVE DISCHARGE FROM ACTIVE DUTY WITH THE ARMED FORCES F THE UNITED STATES.”

The Bill brings two thoughts to mind:

  1. Our Veterans and those who served our country deserve to be treated fairly in housing and all other areas of life.
  2. This Bill brings up a fundamental question: are Veterans being discriminated against in housing? Does it happen?

 

According to statistics recently published in the Bridge with insight from Dennis Van Kampen of Mel Trotter Ministries, there are fewer homeless veterans than ever in Michigan today, but more homeless youth.

The Bill was sent to the committee on Military and Veteran Affairs. No action has been taken on this bill since I posted in August, but I will continue to track this bill.

I look forward to hear comments from the public on this issue: are we in Michigan protecting our Veterans access to fair housing?

 

“Nuisance Property”: Bill Would Protect Those in Affordable Housing from being penalized from calling 911.

On November 28, 2017 Senate Bill 667 was introduced.

The bill is intended to prohibit local units of government from penalizing tenants, occupants, or landlords of rental dwellings for contacts made for police or emergency assistance in certain situations.

Presumably, the Bill is intended to restrict those municipalities that have ordinances that punish landlords and tenants by labeling a rental property a “nuisance” when a certain number of calls to police or emergency assistance.

The Bill in its current form, generally, holds a “reasonableness” standard – meaning the emergency call must be reasonable under the circumstances – the person making the call must reasonably believe they, or a person they are calling on behalf of, is a victim of a crime; and the intervention is needed to prevent a crime, or respond to an emergency.

 

This appears to be one of several Bills that would potentially address the affordable housing crisis.

As a reference, I would highly recommend reading Matthew Desmond’s book “Evicted” It is no secret that Michigan, particularly Kent County, is experiencing an Affordable Housing Crisis.

One potential way to address this crisis is providing Landlords and Tenants security that their local government unit will not unreasonably label properties as nuisances if the police are called for real emergencies. It appears this Bill is attempting to address such a scenario.

 

Questions? Comments?

email: Jeshua@dwlawpc.com

http://www.dwlawpc.com

Twitter: @JeshuaTLauka

Advertisements

Grand Rapids Combats Affordable Housing Crisis – Eviction Prevention Program

November 21, 2017 Leave a comment

 

You know winter is approaching when Rosa Parks Circle begins to freeze over and the ice rink begins to form. See the photo I took from my office yesterday.

In fact, the Ice Rink officially opens on Friday!

IMG_1926

 

Before we know it, downtown will look like a snow globe – see the photo, below, I took from last Christmas.IMG_1927
There is an Address Affordable Housing Crisis

As many of you know, Kent County, like much of the U.S. is experiencing a serious lack of Affordable Housing.

The City of Grand Rapids has made concerted efforts to address problem through an advisory board, which has come up with strategies for addressing the Affordable Housing Crisis

 

 

 

Kent County Eviction Prevention Program

Beginning January of 2018, the 61st District Court will begin a pilot program – the “Eviction Prevention Program” (EPP). Judges Faber and Distel are the initial judges presiding over the EPP.

The EPP was developed as a collaborative effort between the City of Grand Rapids, Salvation Army of West Michigan, The Kent County Court System, the Michigan Department of Human Services and with funding provided by Steelcase.

 

Purpose of the Eviction Prevention Program

The EPP is intended to keep those tenants in housing, who truly want to stay in their housing.

The program will not be appropriate for every tenant.

The EPP appears best suited for those on the margin of being homeless due to an emergency situation (as opposed to those tenants chronically behind in rent).

The EPP provides one-time rent assistance and would allow a Landlord to hold a possession and money judgment in abeyance, pending the Tenant’s payment of rent.

The program is, essentially,  intended as a one-time emergency for those on a fixed or low income, who are essentially faced with the difficult choice of either paying an outstanding medical bill, car repair bill, groceries, etc.., or pay their rent.

 

What Property Managers and Landlords need to know about this program:

Landlords – any tenants behind in rent which have been served a summons and complaint for eviction, beginning in January 2018, should be receiving information about the EPP along with the summons and complaint.

Tenants will know that this is a potential resource to keep them in housing.

What you need to know:

1. The program is entirely voluntary. Landlords can choose to opt out.

2. Not every tenant will qualify. A tenant needs to have income to make the next month’s rent payment.

3. The program is geared towards keeping tenants in housing. If a tenant wants out of your property, the program will likely not be the right fit.

 

Why I like this program.

This program provides an opportunity to keep people in housing who are on the verge of being homeless. The fact is, families are experiencing homelessness in Grand Rapids every day.

Practically speaking, the program works for tenants who have the potential to get caught up, who otherwise are good tenants.

The program is an opportunity for Landlords to get paid and to be part of the solution to the affordable housing crisis.

Housing is a community problem. It is encouraging to see the great collaboration between government, private sector, non-profit sector.

 

 

e-mail: Jeshua@dwlawpc.com

Twitter: @JeshuaTLauka

www.dwlawpc.com

Today I was confronted with the Need For Affordable Housing in Grand Rapids.

November 2, 2017 1 comment

Today I did what I routinely do on Thursdays around noon time – I visited the school where I mentor a student.

MTM

I walked to the classroom and talked

with his teacher who told me that this student was no longer enrolled in the school.

Just like that, a relationship that I had developed over the school year was suddenly without warning severed.

Imagine what an incident like this does for a kid with an unstable home environment.

In a matter of days an elementary school kid’s life (which, in this case, is typically already chaotic enough) can be flipped upside down.

New school. New housing.

Lack of community.

This program that I have been involved in over the past several years connects adults as mentors to school-aged kids is great.

It provides an opportunity for a supportive adult to encourage and love kids, tell them they are valued, made in the image of God.

This program provides a sense of community, a network of relationships for these kids.

I see how eviction can instantaneously severe these important relationships, causing displacement and uproot community.

 

My Perspective – Wearing several hats

I’ve written before about the fact that I wear a few different hats

I am a lawyer who represents real estate owners, investors, property managers/landlords.

I am occasionally in court evicting tenants who simply have not paid their rent. This lack of payment causes real problems for landlords, many of whom are simply trying to pay down their mortgage obligations.

I am the past-Board Chair at Mel Trotter Ministries.

MTM is the safety net for the homeless in the community. It is the place where families without a home seek temporary refuge and hope to get back into affordable and stable housing.  MTM is doing its part to find a solution to the affordable housing crisis in Kent County.

I am also a mentor in a local school to students, many who regularly face homelessness.

In the past several years all of the kids that I have mentored have relocated. The reasons and issues behind their relocation are varied and complex.

I know that lack of affordable housing was a factor at least in some of those situations.

 

I see firsthand the tension:

 We should encourage entrepreneurs to revitalize our community  – we should do everything we can to place families in affordable housing.

There is a tension: and it needs to be embraced.

I get these words of wisdom – to “embrace the tension” we see in our daily lives from a man I admire named Fred Keller – founder of Cascade Engineering. Check out his blog where he speaks directly about the tension between “purpose and profit”

For me, the answer isn’t ignoring the tension on complicated matters – which is why I am writing this post. I embrace it.

I will continue to show up and mentor students.

I will continue to serve at Mel Trotter Ministries.

I will continue to provide legal services to the best of my ability for my business clients.

 

e-mail: Jeshua@dwlawpc.com

Twitter: @JeshuaTLauka

www.dwlawpc.com

Real Estate Investors and Property Managers – Update on the “Bed Bug Bill”

October 31, 2017 1 comment

Today is Halloween so I thought would write on a topic that gives me the creeps…. bed bugs.

 

Courtesy BedBugs.org

Infestations can be an issue that every property manager or owner of residential investment real estate may face.

 

One June 9th Michigan House Bill 4719 was introduced – by Representative Brandt Iden -himself a Developer and Property Manager in South West Michigan. check out the text here – the Bill would amend the Michigan statute governing landlord tenant relationships to include addressing the control of certain pests – including bed bugs.

Recent Update

There has been no noticeable progress, except that the House Fiscal Agency prepared its legislative analysis a few weeks back – you can check it out here

What the Bill seeks to do:

Impose certain duties on landlords regarding bed bugs:

1. Mandates specifically that the Landlord is to keep the rental space free from bed bugs and provide educational literature about bed bug infestations to new tenants.

2. Prohibits Landlords from renting out space that the landlord knows is infested with bedbugs

3. Provides specific requirements for a landlord to respond to a complaint of bed bugs:

  • within 7 days of receiving a complaint, Landlord shall order an inspection for bed bugs;
  • within 7 days of confirming infestation, Landlord shall begin control and schedule inspections of adjoining rental units.

4. Limits damages against Landlord for infestations unless caused by Landlord’s Negligence.

Impose certain duties on tenants regarding bed bugs:

1. Tenant shall inspect for bed bugs when first occupying the space;

2. Tenant shall not move “infested property” into a rental unit

3. Tenant shall notify Landlord within 2 days of notice of infestation.

4. Tenant responsible for damages due to bed bugs caused by Tenant, or guest.

The bill was referred to the Committee on Law and Justice.

Something that the legislative analysis highlights –

“Notwithstanding any other provision of the Landlord-Tenant Act, the landlord and tenant could agree in writing (by hard copy) or electronic mail how responsibility would be assigned for costs resulting from an infestation, including, but not limited to, costs of
control or treatment.”

This would provide some discretion among the parties to craft a resolution.

My thoughts:

Bedbug infestation is a problem. It can cause tenants problems, particularly in lower income housing. As reference, I would highly recommend reading Matthew Desmond’s book “Evicted” It is no secret that Michigan, particularly Kent County, is experiencing an Affordable Housing Crisis.  Further, unhappy tenants who withhold rent can cause landlord problems that end up in court.

This type of bill could provide clarity to landlords and tenants on their reciprocal duties and rights in such circumstances. It could also provide them flexibility to come up with a resolution to get rid of any infestations.

Questions? Comments?

email: Jeshua@dwlawpc.com

http://www.dwlawpc.com

Twitter: @JeshuaTLauka

Real Estate Investors & Property Managers Should Avoid These Pitfalls: DOJ and Landlord Settle Allegations of Family Discrimination.

September 8, 2017 Leave a comment

I’ve said it before, owning and managing real estate is challenging. Particularly residential real estate.

I hear it from my Property Owner and Property Manager clients. I experience it when I am involved in negotiating in landlord/tenant disputes.

2017-08-10 08.14.57-1

 

 

Some of the pitfalls property owners have to watch out for are illustrated in a Wednesday, September 6  Department of Justice Press Release.

The Department of Justice issued a press release today concerning a lawsuit settlement reached with a Landlord and Tenant over Discrimination Charges brought by the Federal Government. You can review that press release here.

 

 

According to the press release, the Federal government alleged in its complaint filed in March 2017 that “in March 2014 defendant Appleby told a woman seeking an apartment for herself, her husband and their one-year-old child that the apartment buildings were “adult only.

The complaint also alleged that defendants advertised their apartments as being in “adult buildings.

Not good.

The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.

As stated by Acting Assistant Attorney General John M. Gore, of the Justice Department’s Civil Rights Division. “The Fair Housing Act prohibits apartment owners and managers from denying housing to families because they have children…We will continue to vigorously enforce the Fair Housing Act’s prohibition of discrimination against families with children.

 

I’m speculating, but maybe the landlord didn’t know the law.

I wonder, did the landlord/property owner ever consult with legal counsel on its practices?

On a personal level, this type of practice of discriminating against families is unfortunate, especially considering we are in an affordable housing crisis.

In Kent County Michigan, it is reported that 2,098 school-aged kids are reported homeless.

 

 

There are some lessons to be learned for landlords, property owners, managers, and real estate investors.

Two takeaways from this news headline:

1. It is worth engaging legal counsel. 

Issues arise. When in doubt, e-mail or call your attorney.

 

2. Residential Real Estate Investment is highly regulated.

If you are a landlord leasing out “residential” property as opposed to purely commercial property (business tenant), you are under much more stringent regulations. You must comply with Federal laws, like the Fair Housing Act and state laws, like the Michigan Truth in Renting Act, and Landlord Tenant Relationship Act. Make sure you are operating lawfully.

 

Questions? Comments?

email: Jeshua@dwlawpc.com

http://www.dwlawpc.com

Twitter: @JeshuaTLauka

Community Revitalization To Include Downtown Grocery Stores: Update on The Urban Food Initiative.

August 1, 2017 Leave a comment

Yesterday I read a story about a Detroiter, Raphael Wright who plans on opening a “mission-driven supermarket” in downtown Detroit. Check out the article on NextCity.

Raphael’s idea is sparked by a much needed grocery option in Detroit- particularly for low-income residents.

I love this idea.

A few years back I took my family to New York City. We loved the walk-ability of City life – that you could walk down a block to a grocery store and get all of your household needs.

food-healthy-vegetables-potatoesI love downtown Grand Rapids.

 

If Grand Rapids wants to encourage urban living, it needs a downtown grocery store.

In February, House Bill 4207 was introduced in the Michigan house. Known as the “Urban Food Initiative” it would provide incentives for community revitalization that would include a downtown Grocery Store.

 

 

Specifically, HB 4207 would make “Urban Food Initiatives” allowable to receive funds under the Michigan Community Revitalization Program

 

An update since my last post, in May, the Trade and Commerce Committee recommended a substitute bill, check here.

The Bill substitute changed the name,  Urban Food Initiatives, to “NEIGHBORHOOD AND COMMERCIAL CORRIDOR FOOD INITIATIVE”  – thereby broadening the applicability of these community revitalization incentives –  I have bracketed the additional language:

Property that will be used primarily as a retail supermarket, grocery store, produce market or delicatessen that is located in a downtown [OR IN A DEVELOPMENT AREA AS DEFINED IN SECTION 2 OF 3 THE CORRIDOR IMPROVEMENT AUTHORITY ACT] area…that offers unprocessed USDA inspected meat and poultry products or meat products that carry the USDA organic seal, fresh fruit and vegetables, and dairy products for sale to the public.”

The other substantive revision to the substitute bill would require that at least 5% of community revitalization incentives be awarded to these initiatives. Check out the Bill Analysis from the House Fiscal Agency, for more information.

 

Clearly having available and healthy food options in a downtown are necessary to City living, particularly for low-income residents. Check out a previous article from Next City about the Food Revolution in Detroit.

A downtown grocery store is necessary if a City wants to attract urban living – it is also necessary to provide healthy food options for those living downtown without readily available transportation.

 

 

I think particularly of the under-employed and the homeless who receive services from organizations like Mel Trotter Ministries. Grand Rapids has a need for affordable housing for the most vulnerable in our society. It would be great to see grocery options as well.

I am looking forward to tracking the progress of this bill. I am also encouraged by the many businesses in West Michigan taking serious their responsibility as community stakeholders and asking the question: “How am I building a better community?

e-mail: Jeshua@dwlawpc.com

http://www.dwlawpc.com

Twitter: @JeshuaTLauka

More Updates on Michigan’s Affordable Housing Crisis

June 2, 2017 4 comments

Today is a beautiful day in downtown Grand Rapids. The photo below actually from yesterday. There is something about the sun that just puts me in a good mood.

A few days ago I did not have a sunny disposition. I was in court during a landlord/tenant docket. I’ll be honest – it was a depressing scene.  Many of the people in the courtroom were in a sad condition – one lady was visibly intoxicated.IMG_1570

Grand Rapids’ Housing Crisis

This morning I read an article on how the Rental Housing Market Leads to Homelessness in Grand Rapids

Clearly, Grand Rapids, and other parts of the State and Nation have an affordable housing crisis. I have previously offered my own perspective, both as a lawyer representing real estate developers/investors, and as Board Chairman at Mel Trotter Ministries.

A Community Problem – requires Community Collaboration

Recently Mel Trotter Ministries announced that it was partnering with 3:11 Youth Housing and the NAACP to provide housing for homeless males ages 18-24.

This effort could not have happened without collaboration between community stakeholders. It also couldn’t have happened without real estate owners willing to put “purpose above profit”.

There are other examples of social enterprises taking action to address affordable housing. One community partner is Pastor Jim Davis and his company “Purpose Properties

“The mission of Purpose Properties is to “raise enough money from local foundations and philanthropists to buy market-rate and affordable rental properties in the city.”

It will take all community stakeholders to do their part – businesses, churches, government, and non-profits.

The question we should all ask ourselves: Am I working to build a better community?
Legal Updates – Bills and Lawsuits.

 

A few months back I wrote about a Michigan House Bill introduced that would repeal Michigan’s prohibition on rent control. This Bill seemed to be a “gut response” to the affordable housing crisis that we are facing in Michigan and all across the United States.

Other local governments across the U.S. are exploring legislative avenues to address the housing crisis.

A few days ago, Representative Stephanie Chang introduced a few other Bills on Affordable Housing.

On May 31, 2017 House Bill 4686 was introduced that would allow local government  to “adopt an ordinance to limit the rent paid by senior citizens and individuals with a disability to 50% of their household incomes.”

Tie-barred to that Bill was House Bill 4687  which would prohibit local government from enacting, maintaining, or enforcing “an ordinance or resolution that would have the effect of  controlling the amount of rent charged for leasing private resident.”

Representative Chang also spoke on the issue of Affordable Housing at a Detroit Housing Summit a few days ago at the University of Detroit Mercy School of Law.

 

DOJ sues City of Jacksonville for refusing to allow development of permanent supportive housing for individuals with disabilities.

You can check out the press release from yesterday – Where Cities Can Get in Trouble with Fair Housing Laws

Yesterday, the Department of Justice issued a Press Release concerning an agreement it reached with the City of Jacksonville, Florida. Apparently, the DOJ sued the City concerning “allegations that the city violated the Fair Housing Act and the Americans with Disabilities Act when it refused to all ow the development of permanent supportive housing for individuals with disabilities in its Springfield neighborhood.”

As part of the settlement, the City has agreed to “establish a $1.5 million grant to develop permanent supportive housing in the city for people with disabilities.”

 

e-mail: Jeshua@dwlawpc.com

Twitter: @JeshuaTLauka