Milan Properties Blog

When Will Lenders Discount 2008 Properties and Should You Take 2008 Capital Gains Profits? Milan Properties

2009-01-12T20:48:13Z

Okay, so there are lots of foreclosures. Many have been listed for sale – but at full ticket
prices.
When is a Bargain a Genuine Bargain?
There are auctions of properties, priced at 25% less than 2006 prices; but not priced at
25% off 2008 prices, which are substantially lower!
If house prices in your area are off 15% to 25% in the last two years, since 2006; then
property auctions at 25% of 2006 prices are not a bargain.
What you’re seeking instead, are properties that are discounted way below existing prices
for 2008, right? When will that occur?
Right now, lenders are not pricing properties or listing them well below 2008 markets.
Perhaps they lent too much money on them in 2006 or didn’t get enough in down
payments originally. Maybe their 2006 appraisals were inflated. Should you wait for
eventual resale at lower prices?
FDIC May Determine Outcome
The Federal Reserve Board audits banks. Then, when troubled banks can go no further
or can’t borrow their way out of problems any longer, the Federal Deposit Insurance
Corporation steps in to protect insured depositors up to $100,000 each. The FDIC then
tries to get some other bank to take over the failed bank. Lately, we know the number of
troubled banks under close scrutiny watched by the FDIC, has risen from 90 to 117.
When the banks’ auditors come in and start screaming, “You’ve got too much foreclosed
real estate on the books”, that’s when those troubled banks “get religion”. Then, they
start selling off properties for whatever they will bring, to the public. From 1988 to 1992,
the Resolution Trust Corporation was set up to dispose of troubled properties – repos and
foreclosures. RTC was run by William Seidman, a noted accountant. When the smoke
cleared, several things had happened.
1. The Federal Savings and Loan Insurance Corporation had to be taken over by the
FDIC, absorbed.
2. 2. Many auctions were conducted. Among the hardest hit states were California,
Florida, Oklahoma, Arizona, Ohio and a number of others. I recall that in Texas
sales, you could buy a dozen modern houses for $100,000 … for all 12 houses in
the package!
Money-Making Opportunities
By the time the RTC folded its tent, prices realized on homes and buildings had averaged
59% of low appraisal. On vacant land sold at auction by the RTC, those sales realized an

average of 41% of the low appraised values. In Dallas, Houston and several other Texas
cities, you had “see-through high rises” where one could look in the windows of one side
of the building and see completely through out the windows of the other side of the
building. Entire floors were vacant in office buildings.
The RTC got the mess cleaned up by blowing off those repossessed properties at
whatever the market would pay, what people were willing to pay on distressed properties
– many new properties and building developments among them! In the USA, the RTC
got the job done.
No Sales Equals Long Recession – 15 Years
“Pretend” Payments
But in Japan, where investors had been buying up trophy properties and accumulated
many, many bad loans, no such disposal methods were used. Japan had a lingering 15
year recession due to their inability and reluctance to get rid of their bad loans and
foreclosed properties. Many of the Japanese lenders kept their bad loans on their books
as though they were still being paid as promised, even though the borrowers had long
since stopped making payments.
Summary
It’s still too soon. The USA lenders in the current crisis have not yet “got religion”.
They aren’t really discounting properties in 2008 to the attractive levels that took place
comparably in 1988 to 1992 under the RTC.
I have the feeling that a lot of bad loans are still being swept under the rug,
unacknowledged. And you and I both know that lenders with bad loans, no-doc (no
documentation loans) or inflated appraisals are just not pushing very hard to get those
properties disposed of in the marketplace at whatever the free market will pay.
Back in 1988 to 1992, I bid on a number of properties at an RTC auction myself, though I
was usually “frozen out” for bidding too low. But I’d recommended RTC auctions to
Forecaster clients time and again and a number of them were successful bidders and
made big money when property prices finally rose. Therefore, I think you need not rush
to buy the 2008 “bargain” auctioned or listed property at a modest discount to 2006
(boom year) appraisal. That 2006 appraisal might or might not be inflated beyond
current market. For example, houses in the new Gold Coast area of Oxnard, California –
three bedroom, two bath homes that were listed at $525,000 in 2006 are now listed at
$340,000 in 2008 and still haven’t “hit bottom”. I’m sure if you tried, you could come up
with a few examples in your own area where you live. Be careful. Continue building
cash-form resources.
FORECAST:
You’ll get your opportunity to make a six or seven figure bargain buy for
profit soon … just not yet. Don’t rush the process. Let the marketplace make you rich
with your Contrarian Forecaster approach.
Should You Take Capital Gains Profits 2008?

How confident are you that Barack will be our new President come 2009? More than
20%? More than 50%? 100% certain? If your level of certainty is high, then you should
really strategize and think about taking profits during 2008. Translation - that means
selling properties and other assets. Why? Because Barack has promised to raise long
term capital gains federal taxes from the current 15% level.
How high would the boost be? Perhaps to 28%, nearly double or even higher if budgets
are really blasted after he takes office, 35%. Therefore, if you think this is what will
happen, then maybe you should sell some of those items that you bought so cheaply years
ago, pre-recent inflation and just pay up the 15% tax.
1031 Exchanges Could Mean Higher Tax Bill!

More thoughts - why 1031 exchanges don’t make sense. If you were deferring long-term
capital gains taxes on properties you own, by trading them for other properties in a 1031
exchange, you may end up paying substantially higher profit taxes when you eventually
resell! You may pay higher than the current 15%, maybe even 28% or higher.
In recent years, I have advised clients not to do 1031 exchanges and not to get involved in
Tenant-in-Common exchanges for this very reason. Why defer current low capital gains
taxes (15% maximum) to pay nearly double some years down the road? It makes no
sense. Furthermore, on TIC exchanges, you lose control of your property and your
money. You get treated like a tenant, that’s why they call you a Tenant-in-Common,
you’re just a small fractional owner.
There are other moves you should make if you believe that the Bush tax cuts will be
allowed to expire in 2010. Among these are 2008 large estate money give-aways, to
avoid Death Taxes in 2011 and later. Here’s another idea. If you think taxes are going to
rise on corporations (instead of fall from 35% to 25% as McCain has outlined) then you
will want to defer buying equipment and other purchases. Why? You’ll want to defray
higher tax rates after the tax hikers get in office! If you buy depreciable equipment and
pay tax-deductible expenses now, in 2008, and then they hike taxes in 2009, 2010 and
beyond, the more tax-deductible expenses you can “park” into those later high-tax years,
the more “mileage” you’ll get out of those later tax deductions, slightly postponed!
OK, admittedly it sounds a little complex. But tax deductions are worth more in high tax
years than in low tax years, that’s the principle.
That’s just one more reason for funneling optional income into a lower tax year such as
2008, rather than waiting until the big tax-ers get into office 2009 and beyond. Bluntly,
show yourself the money, get the money and funnel the taxable income where you can
into 2008 rather than into 2009.

by John V. Kamin

Milan Properties Inc, Milan Management, Milan Rubenstein, Amy Rubenstein, Investment Propery,

Great Landlords, Great Management Co. 323-850-4900 www.milanproperties.com

milan@milanproperties.com

Legal Questions and Answers by Dennis Block & Associates brought to you by Milan Properties

2008-11-05T19:04:27Z

Question One: I recently purchased a house in a foreclosure proceeding. There are
occupants in the house. What notice is required to force them to vacate?
Answer One: If the previous owner or his family is occupying the house, a "30-Day
Notice To Quit" is required. If the persons who are occupying the house are tenants, the
new law now requires a 60-day notice to vacate the premises.
It should be noted that if this property is subject to rent control, good cause would be
required to terminate the tenancy with regard to a tenant.
Question Two: Last year I rented an apartment to two tenants as roommates. I received a
30-day notice that one of the tenants is vacating the premises. This tenant is demanding
that his portion of the security deposit be returned. Do I have to give back half of the
deposit and will the other tenant be responsible to make up the deposit?
Answer Two: The premises were leased to a "partnership" consisting of two tenants. No
security deposit need be returned until such time as the "partnership" vacates the unit. It
should be further noted that the vacating tenant is still responsible for the rent until the
tenancy is finally terminated. You should inform the vacating tenant to get reimbursed for
his security deposit from the remaining tenant.
Question Three: My property is under rent control. I recently gave my tenant a 3% rent
increase notice. The tenant is refusing to pay this small increase! If I accept the rent
check that the tenant gave me, am I nullifying the rent increase notice?
Answer Three: You can accept the check and it will not invalidate your rent increase
notice. You could then serve a 3-day notice to pay the rent for the balance owed. I
recommend, however, not to accept the rent and to issue a 3-day notice for the entire rent.
Notwithstanding the law, judges are reticent to evict a tenant over a small rental
deficiency.
Question Four: I have a building that is under the Los Angeles rent control. Over 15
years ago, I rented a unit to a married couple. For the last three years, another adult began
to occupy the premises. I never objected to this situation. My manager now informs me
that this original couple vacated the unit three months ago and he has been accepting rent
from this remaining person.
I called Rent Stabilization for the City of Los Angeles. They told me that since I accepted
rent from this tenant, that I have created a tenancy with him and that I cannot increase the
rent to market value. Is there anything I can do to obtain market value rent?
Answer Four: Many times, the advice that Rent Stabilization gives, is just plain wrong. I
find that they act as "tenant advocates" instead of properly administering the law. Under
State law, you would be able to increase the rent to market value. If the increase exceeds

10%, a 60-day notice of increase is required. The State law is designed to prevent new
tenants from establishing rent at the previous rental amount.
Question Five: I own an eight-unit apartment building in Downey. I would like to have
the tenants pay for their own water. Is there any law that would prevent me from doing
this?
Answer Five: There is no law that would prevent you from having your tenants pay for
their own water usage. Lately, owners have begun to install separate water meters. If this
is not possible, you will need to include in the rental agreement a statement that the
residents will be responsible for water usage. You will need to include the exact formula
that you will use to determine how the water bill will be divided between the units.
Question Six: I rented an apartment to a couple. They had a fight and the husband is now
in jail and waiting to go to court. The wife has asked me to do a new lease, without her
husband. Can I do this or do I need to give him a 30-day notice first?
Answer Six: Assuming your tenants are on month-to-month lease, you can serve a 30-
day notice to the husband to vacate. At the same time you can enter into a lease with the
wife, which will take effect in 30 days.
Question Seven: Can I have a "no smoking" policy in my building. With all of the news
these days, I am afraid of being sued for allowing second-hand smoke.
Answer Seven: There is no law that would prevent you from instituting this policy. If you
have a rent controlled building, you could not institute this policy to existing tenants. It
would only be enforceable against new tenancies.
Question Eight: I have a judgment that is about five years old. The judgment was
obtained against one of my former tenants for non-payment of rent, in the sum of $4,200.
I have never attempted to collect and I have no information where this tenant is at this
point. Is it too late to start at this point?
Answer Eight: A judgment is valid for 10 years and can be renewed for an additional 10-
year period. It is never too late to attempt to collect. My firm is associated with several
credit institutions, which allows us to search for employment and even bank accounts.
Most collection firms do not require you to pay any fee to commence collection. There
really is nothing to lose.
On another subject, I would like to thank the AOA members who attended my lecture
"How to Beat Rent Control" The turnout was fantastic and I received much positive
feedback.
Dennis Block, of Dennis P. Block & Associates can be reached for information on
landlord/tenant law or evictions at any of the following offices: Los Angeles:

323.938.2868, Encino: 818.986.3147, Inglewood: 310.673.2996, Long Beach:
310.434.5000, Ventura: 805.653.7264, Pasadena: 626.798.1014 or Orange:
714.634.8232 or by visiting www.evict123.com. Don’t miss his Landlord/Tenant Radio
Show, every Tuesday morning at 9:30 a.m., KTYM 1460 AM.

Points to Consider Before You Copy the Keys- Amy Rubenstein gives you advice.

2008-09-09T18:16:31Z

As rents continue to rise, so do the number of people looking to share a rental.

After all, why pay $1,200 for a two-bedroom when you can pay $600 for your share?

Here are suggestions for making roommate life a little easier.

* Compile an inventory of your personal traits. Start at the beginning of the day and move forward. Are you an early riser? Do you have food preferences that are unique? Do you smoke or drink? Your lifestyle should be compatible with the person sharing your space.

* What are you looking for? Some people just think about saving the rent money and forget there’s more to the equation.

Make a list of traits you absolutely will not tolerate in a roommate.

Are you the late-night party type or workaholic type? Housekeeping habits, cooking arrangements and level of privacy should also be considered.

* What will the arrangements be regarding overnight guests, especially those who are not on the lease? Clearly decide in advance on a time limit for guests (hours, days, etc.).

* Decide who gets the parking space (if any) and when. Will you take turns? First come, first take?

If one roommate gets exclusive right, be sure to adjust the rent share accordingly to avoid resentment.

* What are you able to afford? Make sure to factor in the cost and sharing of utilities–especially the telephone, which can be expensive and frustrating to share.

* Find out if the potential roommate has or desires a pet.

* How long do you plan to room with someone? A year? Longer? Time is money if a lease is broken, so be sure your timelines are compatible.

* Determine responsibility. Do you prefer to lease a place together or be the sole responsible party? If you choose to bring in a roommate into an existing situation, check your lease. Subletting is not always allowed. Be sure to get the owner/manager’s written permission before giving someone the keys to your place, since you could be evicted for breaching this important clause.

* When seeking a roommate, ask friends, family and people you trust. If you are a college student, most colleges and universities have a housing office that provides roommate information. Several roommate-listing services are also available for a fee. Be wary; anyone can put in an ad. Applicants are not usually prescreened. Ask for picture identification and proof (such as student identification) of any representations made. Credit checks should also be considered.

* Once you’ve found a roommate, the next step is set up rules, in writing. Several roommate contracts are available through Internet search engines, bookstores and housing offices. Many recommend getting legal advice before signing any document.

* Before you move, be sure to fill out an inventory/condition-of-unit checklist so everyone agrees to the condition at move-in.

* Everyone signing the lease will be jointly and severally responsible for everything in the document. "Joint and several" means "all for one and one for all." If a roommate moves out, the remaining residents are still responsible for the total amount of the rent due and any damage.

* The security deposit is joint and several, with a twist. If someone moves out, the deposit remains with the unit.

Owners don’t usually return deposits until everyone moves out, since the deposit is basically insurance for the unit and the tenancy. The remaining (or new) tenant has to buy out the departing one. Contact the owner and find out what deductions should be made.

Once you’ve decided on the correct amount due, be sure that the departing roommate assigns his or her share in writing to the unit. At final move-out, the owner will divide (and make deductions from) the remaining deposit in equal shares, unless the lease says otherwise.

* Always put agreements in writing, and ask for legal advice if needed. Ink lasts longer than memory and makes clear everyone’s rights and responsibilities.

H. May Spitz is a freelance writer in Los Angeles. E-mail hmayspitz@aol .com

The Benefits of Organizing Your Rental Property as a LLC; Can You Afford Not To? 7011 Fountian LLc.

2008-09-04T17:20:23Z

(Published in November 2003 issue of Apartment Owners Association of Los Angeles Magazine)

By Michael K. Elson, Esq.

Generating income is the primary goal of any entrepreneur. Equally important to businessmen and investors is the desire to avoid personal financial liability for the obligations of the business. The invention of the traditional corporation and more modern business entities such as the Limited Liability Company, have created a risk barrier which encourages business ventures yet shields the owners’ personal assets from seizure.

As a landlord, you are subject to virtually unlimited financial liability and exposure arising out of the operation of your rental property. Large lawsuit judgments against landlords are becoming increasingly common. Without the protection of a Limited Liability Company (LLC), your home, vehicles, bank accounts, and other personal assets can be swept away.

Reorganizing your rental property into a LLC can eliminate this risk to your personal assets. A properly formed LLC is a separate and distinct business entity with its own taxpayer identification number. The LLC, rather than the landlord, becomes the owner of the individual rental property. In much the same way as shareholders of a corporation are protected from liability, a LLC will provide limited liability to its owner(s) and shield their personal assets. Should the owner(s) wish to manage the LLC’s daily operations, either in full or in part, they will be legally classified as employees of the LLC. Therefore, the maximum financial exposure to the owner(s) of the LLC, including exposure from acts of its employees, is limited to the individual property held by the LLC, and nothing else.

Once your attorney completes and files the array of legal documents required for the initial formation of your LLC, you will no longer be personally liable for any debts or judgments against the LLC. Utilizing the LLC eliminates the double taxation and extensive formalities associated with a traditional corporation. Perhaps the most obvious changes are that lease agreements are between the LLC and the tenant, rent checks are made payable to the LLC, and when evictions are instituted, it is the LLC that is evicting the tenant, thus eliminating the appearance that you are personally seeking the eviction.

The State of California requires the LLC to pay an annual $800 franchise tax fee, the same as a regular corporation or limited partnership. This fee, however, can be viewed as a yearly "insurance" premium, which provides vastly more protection than private insurance with an equivalent premium amount. The beneficial result is that the maximum financial exposure to the owner(s) of the LLC, including liability from acts of its employees, is limited to the individual property held in the LLC, and nothing else. Lastly, the critical transfer of the property to the LLC is almost always exempt from property tax reassesment. The attorney preparing the LLC will execute the proper paperwork to assure this exemption.

In today’s legal environment, successful tenant lawsuits against landlords are becoming more frequent. Additionally, insurance no longer provides adequate protection to the property owner(s). Most insurance policies contain exclusions for mold, discrimination claims, and lead-based paint. Even with insurance, a building fire or balcony collapse resulting in numerous claims could create a liability far exceeding your policy amount. Without the protection of a LLC, your personal assets can be taken from you, potentially leaving you destitute and bankrupt. Given all of the advantages of the LLC, not to mention the piece of mind it brings to its owner(s), it is foolish to not utilize this most valuable business invention. A typical LLC can be organized by an LLC specialist attorney for a very modest cost, bringing you, your family or your investors the protection you and they so rightfully deserve.

All of Milan Properties are protected by an LLc.

Foreclosures ensnare low-income renters- By William Heisel Amy Rubenstein

2008-09-03T21:47:53Z

Ruth Cordoba has never owned a home, but she is feeling the effects of the mortgage meltdown acutely.

Cordoba, 28, rented a three-bedroom home in Riverside for six months with the help of so-called Section 8 funds, money provided by the federal government through local housing agencies. In June, when her landlord could no longer make the mortgage payments on the house Cordoba was renting, she and her three children had to move to a hotel.

"I never missed a rent payment," Cordoba said. "Then I hear someone outside one morning, and I go outside and see a sign on my door that says they’re auctioning the house."

The collapse of home mortgage lending, which according to U.S. Housing Secretary Steve Preston may lead to 2.5 million foreclosure filings nationwide this year, sent shock waves up the income strata — from home buyers who took out subprime loans they couldn’t pay, through banks that couldn’t cover their losses on those loans, and onto high-end investors who had bought the banks’ bad loans.

Now the mortgage crisis is radiating downward and cracking the already fragile finances of people like Cordoba. There are more than 300,000 households getting Section 8 assistance in California, and their median income is $14,428, according to the Department of Housing and Urban Development.

State and federal officials are unable to say how many Section 8 renters have been affected by the wave of foreclosures sweeping the country, but local housing authorities say the number is significant — and growing.

Sacramento County had fewer than a dozen people seeking new Section 8 homes in June because of foreclosures. In July, the number was 100.

In Riverside County, more than 70 renters who receive Section 8 funds have asked for new homes because of the foreclosure crisis since the beginning of the year, and officials expect the number to grow.

"It’s been a huge increase because of these foreclosures," said Heidi Marshall, director of the Riverside County Housing Authority. "And families who are very low income feel the costs of having to move even more than other people."

East L.A. Community Corp., a nonprofit that owns and operates affordable housing, recently started going door-to-door to homes that were going into foreclosure, intending to help owners regain their footing. Instead, they found that most of the homes were occupied by renters, some with Section 8 vouchers, said Maria Cabildo, the group’s president.

"I don’t think we’ve seen the worst of it," Cabildo said. "The research shows that there are going to be more waves of these mortgages resetting, and people won’t be able to make the payments. That’s going to be devastating for these renters who have been in their homes in some cases for 10 or 15 years."

Although new foreclosures statewide decreased in July, experts anticipate a steady stream of homes being taken over by banks well into 2009 because of the large population of people with teaser-rate loans that will reset, increasing homeowners’ mortgage obligations beyond their ability to pay.

Diane Barragan, a Los Angeles tax preparer, bought more real estate than she could afford in the early part of the decade. By 2006, she owned four homes and a vacant commercial lot and was renting out two of the homes. She assumed home prices would keep going up, and she took out risky loans that had low payments for a few years but were scheduled to reset at a higher amount. She thought that if she had trouble making her payments, she would be able to refinance at a lower rate.

But when her loans started resetting, the payments outstripped her income. By 2007, she was facing foreclosure on two of her properties. One of them was a Section 8 rental in Moreno Valley that at one point had been owned by HUD. She paid $339,000. By the time it went into foreclosure, it was worth $207,000, according to Riverside County Assessor records, less than her loan.

"I had spent a lot of money on that house, put in a new dishwasher, upgraded the plumbing," Barragan said. "I ended up losing everything."

She was able to sell the other rental property at a loss. Now she has just one house and her commercial lot. She says those properties are in jeopardy too, because of equity loans she took out to make home improvements.

"I took out so many personal loans from friends just to keep paying my bills that for a while I was just hiding in my house," Barragan said. "I didn’t want to answer the phone, didn’t want to answer the door."

The man who was renting the house that went into foreclosure, Robert Harris, was another casualty of her poor financial planning, she said.

Harris had rented one house from Barragan for a year with his daughter and two grandchildren. When Barragan decided to sell that house for a profit, he moved to the property that ultimately went into foreclosure. He was in the new place from early 2007 until February. Like Cordoba, he found out from the mortgage company, not his landlord, that he was being kicked out.

Harris had been living mostly on state disability payments since 1989, after he was stabbed while working as a prison guard. But for the last two years, he had taken classes to become a home inspector and had paid off his debts in anticipation of buying his first home.

"I was doing everything I thought I was supposed to do," Harris said. "All of a sudden, I have to move."

He moved into another house shortly after Barragan’s house went into foreclosure. In July, though, he found out that his new landlord was also about to have her home taken away because she couldn’t make her payments.

"The owners are just collecting the rent up until the last minute, because they’re trying to get as much money as they can to pay their mortgages, and then they tell us three days before they’re about to kick someone out," said the Riverside County authority’s Marshall. "That doesn’t give these families nearly enough time to find a new place."

Section 8 renters have suffered on both sides of the housing boom, experts say. When housing prices were climbing, landlords were able to charge more than the program was willing to pay, reducing the number of low-rent homes available.

Now that prices are dropping, the low-income landlords are getting out — or being forced out.

"These low-income renters weren’t involved in the housing problem, or at least that’s what they thought," said Nancy Sidhu, senior economist for the Los Angeles County Economic Development Corp. "Now they’re caught up in the whirlwind too."

Technically, landlords who receive Section 8 money are supposed to give their renters 90 days’ notice of an eviction. But if they don’t, there is little the housing authorities can do. It would cost them more in staffing and paperwork to try to sue the landlords than they would be likely to recover, housing officials said. And the housing agencies have no leverage with the banks that have taken over the homes.

"Obviously we can’t hold the mortgage company accountable for a contract they don’t have with us," said Margarita Lares, Section 8 director for the Los Angeles County Housing Authority.

And Section 8 covers only the month-to-month rent. It doesn’t help with deposits or moving costs.

That’s why Cordoba is living in a hotel in Lake Elsinore. She lost her deposit when the house she rented went up for auction and, although she was able to negotiate a small payout from the bank that took over the house, it was not enough to pay for a new deposit and storage costs while she looks for a new place. She also was laid off from her job in May as an assembly-line worker in a grass-seed plant.

One of her daughters used to walk to the bus stop every day to go to middle school. The other walked a few blocks to elementary school. Now Cordoba drives them to school and spends the rest of the day looking for a job and a home.

"The kids at school make fun of my kids because they are living in a hotel," she said. "I tell them not to listen to them, but it makes them really upset."

She had hoped to find a new home by Labor Day but has not found a place big enough that will take Section 8 vouchers.

Milan Management accepts section 8 tenants.

The Fair Housing Discrimination List- Fair housing council

2008-08-22T22:43:12Z

by the Fair Housing Council

It’s the stuff of urban legends. It always comes up in fair housing trainings – be it classesI attended years ago as a sales agent, or in classes I conduct for the Fair Housing Council now. Everyone’s heard of it; everyone wants to know how to get his/her hands on it…some call it the “Red Light/Green Light” list; others have dubbed it with the classy moniker of the “No-No” list. That infamous, non-existent list of words one should never utter; a list that if ardently avoided would keep one safe from fair housing complaints or violations.

I’ve got news for you folks; “The List” is a myth! HUD, the federal regulatory body with the power to enforce the Fair Housing Act, does not have such a list. We at the Fair Housing Council (FHCO) have never had such a list. What most people probably recall are lists that newspapers have published for advertisers to help insult and ensure protection against a fair housing violation that would name them as well as the housing provider placing the ad. These media lists are often more conservative that we are, essentially because these publications are very sensitive to being slapped with a fine or lawsuit.

Realtors and those familiar with computerized multiple listing services may have experienced coding that cans newly input listings for verbiage that may violate housing laws. Please don’t be intimidated or put off by these electronic programs; they don’t know if you typed “white picket fence” or “whites only”. When you’re asked to review your listing, simply double check it and know that a living, breathing human will follow up to review it as well.

Now, the myth of the list has spawned many urban legends, which I would like to debunk and/or explain here:

Walk-in Closet – This is a common feature in many homes and is commonly understood to refer to such. So long as you don’t go on to imply that (or limit access to) someone who isn’t ambulatory can’t use the closet or live in the home, you’re fine!

View Property: Same as above. So long as you don’t limit access to the view property to sighted individuals, there’s nothing wrong with using the word “view” to describe a property with such an amenity. That is opposed to a case in which a landlord refused to tour an available unit with a blind applicant saying, “Why should I bother; you can’t see it anyway!” That, my friends, is discriminatory and illegal.

Mother–in-law Suite and Bachelor Apartment: Guess what; they’re fine so long as you don’t really mean that only a mother-in-law or a single male can live in the unit.

What about “Near”? Now, we’re getting into a more complex issue. It’s not uncommon to see promotional verbiage indicating close to shopping, transit, etc. This is fine. However, you begin to cross the line with hair housing law if you say “near the ABC mosque” or close to the XYZ church.” Referencing religious or cultural sites – even though they are valid landmarks, may have what we call a “chilling effect” and can be illegal. Let’s say a synagogue or Jewish community center is referenced and the housing consumer reading isn’t of that faith or ethnic background. They may feel that they’re not welcome there and this chilling effect can have a discriminatory impact whether it was intended to or not.

Another touch issue is referencing local schools. National sales tests have found that schools are sometimes used as a proxy for where to buy a home. That is, some agents encourage buyers to look at and buy homes in school districts whose demographics are consistent with that of the buyer. White testers were told the virtues of predominately white schools (and by association, their neighborhoods); the exact schools agents told white testers to avoid. Simply listing the school district and schools that serve the area is fine so long as you do this with all of your properties. Referring housing consumers to the district’s office or website for school stats and other information from which they can develop their own opinion in is a safe strategy so long as it is applied neutrally and consistently. Touting certain schools over others is less so and we don’t recommend it.

Of course, any good list (if we were to create one) would include the following blatantly discriminatory statements:

• No minorities

• African Americans and Arabians tend to clash with me so that won’t work out

• Ladies, please rent from me.

• Requirements: Clean, Godly, Christian Male.

• Will allow only single occupancy and

• No Children

All of these illegal statements (and many more) have been posted on the online service CraigsList. Housing providers that use illegally discriminatory statements such as these – and potentially the hosting website – are liable for having violated the Fair Housing Act.

As is the landlord who told one of our staff that she had advertised “Christians Only” for 20 years. It doesn’t matter where you advertise – newspapers, flyers, yard signs and yes even free advertising and verbal statements – fair housing laws apply. Milan Management embraces the fairhousing act and are committed in serving their tenants to the highest standard whether it’s fairhousing or thier tenants.

For questions about your rights and responsibilities under fair housing laws, visit www.fairhousing.com. Reprinted with permission of Metro Apartment Manager.

$100M Fund Formed for Affordable Housing in LA - Milan Management

2008-08-21T17:19:19Z

July 22, 2008
By: Barbra Murray, Contributing Editor

The City of Los Angeles has joined forces with Enterprise Community Partners to establish the $100 million New Generation Fund, the city’s first multi-million-dollar financing tool for the development and preservation of affordable housing.

The New Generation Fund is owned by Enterprise and is being backed financially by a consortium–consisting of Citi, Wachovia, Enterprise Community Loan Fund, Merrill Lynch, MetLife and HSBC–that has endowed the fund with $100 million. Additionally, the City, the Ahmanson Foundation, the California Community Foundation and the Weingarten Foundation are supplying a total of approximately $14 million in credit enhancements.

The pre-development and acquisition fund is designed to combat homelessness and provide a greater pool of dwellings for low- and moderate-income residents by making early stage financing of as much as $10 million per project available to developers of affordable housing properties. The financing will be provided at 130 percent loan-to-value for non-profit organizations and 95 percent loan-to-value for for-profit developers. Additionally, Enterprise will help participating developers to go green by offering free access to green development consulting. On target to increase to as much as $150 million one year from now, the fund dovetails with the city’s plan to preserve and construct approximately 4,000 affordable housing units annually until 2014.

Many developers are already stepping up to the plate to augment the affordable housing supply in Los Angeles. According to a first quarter report by real estate investment services firm Marcus & Millichap, approximately 2,300 units affordable housing units are scheduled for delivery by the close of this year. Meta Housing Corp. broke ground less than two weeks ago on a mixed-use project in South Los Angeles with 80 apartments atop retail space. In February, Golden Boy Partners broke ground on a 107-unit urban infill project designed for working families in South Gate in Los Angeles County.

Preservation efforts are also in the works. A few months ago, the Apartment Investment and Management Co. announced plans for a comprehensive upgrade program that will preserve affordable housing for 400 low-income seniors at Grand Plaza Apartments in Chinatown, courtesy of $20 million in financing from the California Housing Finance Agency.

Enterprise, headquartered in Columbia, Md., is a leading provider of capital and expertise for the development of affordable homes and communities. The organization has raised and invested approximately $9 billion in equity, grants and loans to develop or preserve 240,000 affordable housing residences.

Many of Milan Management buildings except HUD section 8 vouchuer that ease the strain that families witness.

Foreclosure flood brings more renters- Good for Milan Management

2008-08-20T17:45:13Z

Report: Rental rate hits record level in 2007

By Inman News, Wednesday, April 30, 2008.

The share of rental households jumped by about 1 million last year and this group is likely to expand further if foreclosure trends continue, Harvard University’s Joint Center for Housing Studies reports today, while the monthly rental rate reached a record high last year.

"Now that large numbers of former owners are flooding back into rental markets, expanding the available supply of affordable rentals is critical," the report urges.

Foreclosures will convert some homeowners to renters and will also displace renters who are living in foreclosure properties and may compound affordability problems in the rental market in the short term, according to the report, "America’s Rental Housing: The Key to a Balanced National Policy."

Nicolas P. Retsinas, director of the Harvard center, said in a statement that "the fallout from foreclosure is hitting the same neighborhoods where many of the nation’s most economically vulnerable renters live."

Investor-owned multifamily rental properties with one to four units have accounted for about 20 percent of all foreclosures, Retsinas stated.

Annual growth in the share of renter households averaged 0.7 percent from 2003-06 before the 2.8 percent gain last year.

"The growing numbers of renters must now compete for the limited supply of affordable housing, adding to the longstanding pressures in markets across the country," according to the report, which cites statistics from the National Low Income Housing Coalition (see related Inman News article) stating that no single minimum-wage earner who works full-time throughout the year can afford the cost of a modest rental unit in any market across the country.

The debt burden of low-income renters has been growing, and the population of lowest-income renters in debt grew by 20 percent from 1995 to 2004, to 7.6 million, the Harvard center reported. Average outstanding debt for members of this lowest-income group rose 62 percent in inflation-adjusted terms, from $3,200 to $5,200.

Affordability may ease in the long term, as "the flood of foreclosed properties onto the rental market could ease some of the affordability pressures, but only to the extent that for-sale units converted to rentals meet the needs of households in the market. Indeed, lowest-income renters may be unable to afford even the highly discounted asking rents on foreclosed homes," the report states.

There are threats to the supply of affordable rental housing, as the U.S. Government Accountability Office estimates that mortgage restrictions and rental assistance contracts on about 1 million subsidized units are set to expire by 2013, and "limited funding … hampers any widespread or permanent solution" to preserve this supply.

"Since developing new affordable rental housing remains difficult without steep subsidy, preserving whatever low-cost units remain should be an urgent priority," and the report also suggests that such efforts rely on Congress to ensure adequate money is available for low-cost rental units.

The report also recommends continuing efforts to eliminate land-use policies that limit affordable, higher-density rental housing in suburban areas, and that housing assistance programs also improve access to health and human services, child care, transportation and other workforce initiatives to promote higher-income employment.

Know the Law, Know the Law, Know the Law! - Robert L. Cain & Amy Rubenstein

2008-08-19T23:38:34Z

One property manager I knew told the story about the time she was talking to a landlord about her rental property and said, “The law says…”

The landlord replied aghast, “There are laws!!??

Yes ma’am, there are laws. And in most states, those laws were written to protect the “poor, abused, downtrodden” bad tenant. Also, in most states there are too many judges who take it a step farther and interpret the laws and rule in ways that provide bad tenants even more rights to not pay the rent and trash property.

Shame on the legislatures and shame on the judges, but that’s the situation we face when we own and manage rental property. Rental property is one of the most regulated industries in the country. It is filled with traps, pitfalls and snares awaiting the unwary landlord. The rental property business is one of the easiest to get into, as well. All you have to do is buy a house, tidy it up a little, find a tenant and rent it out.

Then the fun begins for the bad tenant when the landlord he or she rents from is totally unaware of the landlord-tenant law of the state. Landlords enter without proper notice, harass tenants when rent is late, apply the apartment complex’s rule unfairly, select tenants in violation of the Fair Housing Act and handle security deposits improperly.

Bad tenants often know the law. They know the law because they have had experience using it and have probably used a landlord or two over the course of the bad-tenant pillaging and devastation. Again and again they catch landlords who are unaware that laws govern our business. They lurk behind moldy tall grass and under rocks waiting for their landlords to violate the law ever so slightly and then they slither out trying to get a judge to let them live rent free for months and months.

The landlord-tenant laws of most states are easily obtainable either online or from your local Apartment Owners Association. Having them on your bookshelf is one thing, but actually taking the time to read and understand them is another. [Editor’s Note: Please call your nearest AOA office and order a copy of California’s Landlord Law Book: Rights and Responsibilities, by Nolo Press. AOA members receive a special discounted price of only $28.95 plus shipping.]

Whenever I travel to another state to speak, I always print out that state’s landlord-tenant act and read it. The first thing I look at are notice requirements, that is how much time a landlord has to give to terminate a tenancy, change the terms of the rental agreement, allow after the rent is due before filing an eviction and before he or she can enter a tenant’s home for inspection or repair.

Next, I want to know the security deposit requirement. Is there a limit on how much a landlord can collect? Does the deposit have to be placed in a special bank account? What are the requirements for accounting for it when a tenant moves out?

In most states’ landlord-tenant laws, you can expect to see similar rights and responsibilities for both landlords and tenants. The real difference lies in entrance, notification and security deposit requirements. Those are the ones that will get you in trouble if you violate them and the ones that bad tenants can probably recite verbatim.

If you don’t know the law, you leave yourself wide open for the scheming of bad tenants. These people will take your property, your money and your sanity. Know the law, know the law, and know the law. Milan Management specializes in evictions and knows the law very well.

Robert Cain is a nationally-recognized speaker and writer on property management and real estate issues.

Can landlord abruptly declare ‘no pets’ policy? - Milan Management

2008-08-18T20:12:02Z

Some say about-face puts unfair burden on existing tenants

August 18, 2008

By Robert Griswold

Q: I work for a local humane society and was wondering about the rights of tenants to have pets in their rental unit. We frequently receive calls from tenants with pets claiming that they received a 30-day notice to terminate their tenancy because they have violated the "no pets" policy at their rental property. This also has happened with tenants that claim they are just feeding stray animals in the neighborhood. I can understand a landlord may have a policy against pets, but I have had calls about situations where a landlord suddenly changed his policy to prohibit pets after accepting them for years. That doesn’t seem fair. What do you think?

A: I think you have a valid concern about landlords that abruptly change from a policy of accepting pets to one of prohibiting pets for existing residents. However, I would support a landlord trying to enforce a "no pets" policy against tenants that claim they are only feeding stray pets. I understand and have compassion for the issue of stray animals, but there are potentially serious problems that can occur if a tenant is allowed to feed stray animals. If someone were to get hurt by this stray animal, you would find that no one would accept responsibility for the animal. The landlord could be sued if he knew that the pet was on the property.

Remember that the right to have pets is not one of the standard fair-housing-protected classes such as race, religion, creed, color, national origin, handicap, etc. A tenant that is in violation of a lease clause prohibiting pets would be subject to a 30-day (or 60-day if they are long-term tenants) written notice to terminate their tenancy. The only exception to a rule change prohibiting pets would be for tenants who have requested and been approved for a companion animal under the fair housing laws or the Americans with Disabilities Act. But only those qualified animals would be exempt. For example, a tenant may have a specific dog as a companion animal and thus the landlord’s new "no pet" policy would not apply. But that would not cover any pet or stray animal, and the tenant would have to remove any nonqualified pets from the rental property.

There is nothing to prevent a landlord from accepting pets and then deciding that he no longer wants to allow tenants to have pets. Personally, I think that this can be extremely unfair to current tenants who have pets and who cannot be expected to simply get rid of the family pet due to the landlord changing his mind and adopting a "no pets" policy. I do understand that there are occasions when the landlord becomes aware of a specific pet that constitutes a health and safety risk. In such cases I would agree that the landlord is acting reasonably and to insist that the tenant find another suitable home for the pet.

The landlord can also issue a 30-day notice of change in terms of tenancy on a month-to-month rental agreement with a new rule that no longer allows pets (just like they can change any other rules with proper notice).

If a landlord would like to convert his rental units to a "no pet" rental property, he should do it gradually. I suggest he immediately inform new tenants of his policy but that the current tenants should be allowed to "grandfather in" their existing pets with the understanding that no new or replacement pets are allowed. I think this is a much more compassionate approach than to simply send out a written notice demanding all tenants get rid of their pets in 30 days. While this scenario often occurs when there is a change in ownership, I would also suggest a phasing in of a "no pet" policy be used by the new owners as a common courtesy to the existing tenants.

Actually, tenants with pets are a great "target market" for landlords. Of course, you need to have the proper written agreements and increased security deposits to protect against damage and give the tenant an incentive to return your rental property in good condition.

While there are many horror stories about renting to people with pets, many landlords have had excellent, long-term tenants that have been extremely responsible and have kept the rental property in great condition and gladly paid for any damage at the end of the tenancy. I would suggest you assist your callers by keeping a list of local landlords that would welcome tenants with pets.

Milan Management has always been a pet friendly company. We value the joy and conpanionship that our little friends provide and encourage our tenants to value it as well.

milan management llc

2008-08-18T18:21:42Z

milan managemnt llc 5369 w. pico blvd. 2nd floor, los angeles, ca 90019

How Rent Control Drives Out Affordable Housing- William Tucker & Milan Management

2008-08-15T18:47:53Z

William Tucker is the author of The Excluded Americans: Homelessness and Housing Policies (Regnery) and Zoning, Rent Control, and Affordable Housing (Cato Institute).

Executive Summary

Rent control has been in force in a number of major American cities for many decades. The best-known example is New York, which still retains rent controls from the temporary price controls imposed during World War II. But this policy, meant to assist poorer residents, harms far more citizens than it helps, benefits the better-off, and limits the freedom of all citizens.

A look at the classified ads in rent-controlled cities reveals that very few moderately priced rental units are actually available. Most advertised units are priced well above the actual median rent. Yet in cities without controls, moderately priced units are universally available.

In many cities, policymakers understand that controls drive out residents and businesses. Thus many exempt significant portions of housing from controls, creating shadow markets. Yet as controls hold down rents for some units, costs for all other rental housing skyrockets. And tenants in rent-controlled units fear moving to more desirable neighborhoods since the only units available for rent are very high-priced.

But the trend in recent years has been toward removal of rent control. The repeal of controls in Massachusetts, for example, did not lead to the widespread evictions and hardships that some predicted. The lesson for the rest of the country is that rent control is policy that never was justified and certainly should be scrapped.

As rents increase Milan Management are determined to provide more for more bang for the buck at their properties. That said, Milan Management offer freshly painted and Pergo floors in all their new units.

Legal Q & A by Dennis P. Block, Attorney- Milan Management

2008-08-14T19:07:30Z

Question 1:

I need access to a tenant’s apartment as his unit provides access to a central plumbing fixture. I have written him a letter asking permission to do these repairs along with three different phone calls. He is yet to respond and I am desperate to make this repairs. What can I do to gain access?

Answer 1:

You do not need the permission of your tenant. You need to serve a notice that you will be entering the unit. If you cannot hand this notice to the tenant, then post it on his door at least 24 hours in advance. You must state the date, time and reason. The access should be requested for normal business hours, Monday through Friday, 9:00 AM to 5:00 PM. At the requested time, if the tenant is not there, you have the right you use your passkey to gain entrance. If you do not have a key, you may engage the services of a locksmith to open the door.

Question 2:

I increased the rent to my tenant last October. It was a $300 increase, from $1,450 to $1,750. Can I give her another $100 increase for August or do I have to wait until October? My property is not under rent control.

Answer 2:

There are no limitations to the amount of times that you can raise the rent. If you increase the rent more than 10% in any twelve-month period, then a 60-day notice is required.

Question 3:

I served my tenant with a "3-Day Notice to Pay the Rent or Move Out”. The tenant came with a partial payment and told me that I had to accept it since it was within the 3-day period. I took the partial payment but now I question whether I did have to accept this payment.

Answer 3:

A landlord does not have to accept a partial payment in rent. If the tenant does not pay the full amount, within the 3-day period, an unlawful detainer can proceed. Since you accepted the partial payment, you should immediately serve a 3-day notice for the amount currently owed.

Question 4:

I have a house, which is currently for sale. Tenants are currently occupying the premises. They have a lease, which expires March 31, 2008. I have not kept up with the mortgage payments for several months now. I might have a buyer who intends to occupy the home. How do I get the tenants out prior to the end of their lease? The tenants are aware that the house is being sold because they are allowing viewing of the home. If the sale does not go through, it will be foreclosed on and I do not want the tenants caught in the middle.

Answer 4:

You are in a tough position. You do not have the power to unilaterally revoke a lease, even under these circumstances. You should explain to the tenants that if the house foreclosed, their lease would be extinguished by operation of law. As such, it would be in their best interest to take a rent reduction or a cash settlement to move at the time of sale.

Question 5:

Can I charge rent on the basis of how many persons will be occupying the premises? One applicant told me that this is discrimination.

Answer 5:

If your policy is consistent for all applicants, this would not be considered discrimination. A landlord can set the rental amount. In this case you recognize the fact that more utilities will be used and that there will be more wear and tear on the premises. It is reasonable to charge more rent for more persons.

Question 6:

I just bought an apartment unit in a rent controlled area. I sent letters to the tenants advising them that I am the new owner, with my phone number and an address as to where to pay the rent. One tenant refuses to pay me the rent until I show him the deed to the property. I knew I was going to have trouble with this tenant as he had a "big mouth" during the inspection. Do I need to show him the deed?

Answer 6:

You have no obligation to show him the deed. Serve the tenant a 3-Day Notice to Pay Rent or Move Out. If the rent is not paid timely, immediately commence the eviction action.

Question 7:

I am planning to buy a duplex in the City of Los Angeles. I intend to move into one of the units and to continue leasing the other unit. Currently both units are occupied. What is the procedure to have one of the tenants vacate. The unit I want to occupy has a family who has been there for over eight years.

Answer 7:

An application needs to be filed and approved by the Rent Stabilization for the City of Los Angeles. Relocation money would have to be paid to the tenant. Currently that sum is $17,080. Since your tenant has been in the unit for over one year, a 60-day notice to quit would need to be served on your tenant, once the application is approved.

Question 8:

I have an unlawful detainer trial that will be coming up in a couple of weeks. My witness cannot attend due to preexisting vacation plans. Is it permissible for this person to sign a statement?

Answer 8:

In general, an out of court statement cannot be used during a trial. This would be considered hearsay. If this person’s testimony is truly needed, you should seek a postponement of the trial so that this person would be in attendance.

Dennis Block has served as Milan Management’s legal rep for the 10 years. Amy and Milan have been very sucessful in rent controled properties with Dennis.

Dennis Block, of Dennis P. Block & Associates can be reached for information on landlord/tenant law or evictions at any of the following offices: Los Angeles:

323.938.2868, Encino: 818.986.3147, Inglewood: 310.673.2996, Long Beach:

310.434.5000, Ventura: 805.653.7264, Pasadena: 626.798.1014 or Orange:

714.634.8232 or by visiting www.evict123.com. Don’t miss his Landlord/Tenant Radio

Show, every Tuesday morning at 9:30 a.m., KTYM 1460 AM.

Meruelo Maddux Closes on $84M to Finish L.A. Residential Tower

2008-08-12T23:33:02Z

Unlike a bevy of construction projects across the country, development of the upscale 214-residence apartment high-rise at 717 W. Ninth St. in Los Angeles will not fall victim to the credit crunch, as Meruelo Maddux Properties Inc. has just closed on an $84 million construction loan. The 35-story structure, located across from the Staples Center sports arena and the $2.5 billion L.A. Live mixed-use project, is part of a long list of developments that are contributing to the multi-billion remake of downtown Los Angeles.

Meruelo Maddux was able to secure financing for 717 W. Ninth from an affiliate of Los Angeles-based investment advisor and money management firm Canyon Capital Realty Advisors L.L.C., which provided a loan with an initial term of 18 months, plus the option for five six-month extensions. The first 18-month period of the loan carries a 1.5 percent commitment fee, and a 12 percent fixed interest rate is attached through the loan’s maturity. Meruelo Maddux had experienced a few hiccups with 717 W. Ninth’s progress, but the new financing has paved the way for smooth sailing. "There were some challenges but work had not stopped–it slowed but it did not stop," a spokesperson for Meruelo Maddux told CPN today. While the majority of the loan will be utilized for continued construction activities, remaining proceeds will be used to fund an interest payment reserve and a real estate tax and insurance reserve.

Funes Architecture is behind the design of the building, which occupies two-thirds of an acre. In addition to the apartment units, 717 W. Ninth will feature a restaurant, as well as 6,800 square feet of ground-level retail, 322 parking stalls, a fitness facility and a library. The property has also been designed to meet standards for LEED Silver certification. Apartments are scheduled to come online in September 2009, and upon completion, 717 W. Ninth will be one of downtown’s tallest residential buildings.

With a bevy of new projects delivering, the vacancy rate in the downtown area has risen a tad, but it is still not expected to exceed a relatively low 5.2 percent this year, according to a report by real estate investment services firm Marcus & Millichap. Furthermore, swelling asking rents, which are expected to increase 4 percent this year, will continue to offset minor growth in the average vacancy rate. "The demand for upscale apartments downtown is very strong," the spokesperson said. "Downtown is really evolving into an area that can accommodate residential. It’s been tried before, the idea of having downtown residential development, but at the end of the day downtown essentially closed down. But now there’s a rebirth. There are restaurants, nightlife and ancillary services people are accustomed to having."

Headquartered in Los Angeles, Meruelo Maddux is a full-service real estate concern that owns and develops commercial and residential projects in downtown Los Angeles, and in other urban centers in California that are presently experiencing demographic or economic changes.

Milan and Amy want to manage and own properties like this.

It’s All about the Green- Go Green to $ave Green- Rich Whalen & Milan Management

2008-08-07T19:59:09Z

Are you purchasing, managing or developing with “Green” appliances? No not avocado green from the 1970’s.The question is are these appliances easy on the environment? Talk and action about “Green” is coming to the forefront as we close out 2007 and look forward to 2008. I watched as a recent Sunday Night Football studio broadcast was presented with the lights powered down to bring attention to saving energy. As we all know, the cost of energy is on the rise. On average, apartment owners can raise the value of their building with Energy Star rated appliances. Replacing an old refrigerator can save $150 a year in electricity costs, an old air conditioner $55, and an old dishwasher $15 a year. That’s $220 per year per unit. A 15 unit building could save upwards of $3,300 per year; a 40 unit building $8,800, and a 150 unit building $33,000, improving your GRM.

Many consumers are not aware that an older top loading clothes washer uses more than 40 gallons of water per load. A new front loading machine uses up to 60 percent less! Energy Star appliances incorporate technologies that use 10 to 50 percent less energy. For a home owner or apartment owner or manager responsible for utility costs the savings can be substantial. Also, utility company and manufacturer rebates are at an all time high, some reaching $250 for a single appliance.

An online bulk purchasing tool was recently launched as “Energy Star Quantity Quotes”. This tool provides help to contractors builders, property managers and owners in the selection of bulk appliances, light bulbs, fixtures etc. All designed to save

money,energy and the environment. Speaking of the environment, simple actions can make a big difference. If just one in 10

homes or apartments switched to Energy Star appliances the change would be like planting 1.7 million acres of trees. One

of the leading “Green” manufacturers of appliances is Bosch. They are a company that sets the standard in the industry. They

operate on a “principle of environmental protection”. This includes a pledge to develop and manufacture products that are

safe, eco‐friendly and economical. The Bosch free standing convection range for example is made of 98 percent recyclable

materials.

On the subject of recycling, appliance change-outs can sometimes become a hassle. Old refrigerators for example contain hazardous materials that must be properly disposed of. Companies that specialize in appliance recycling, such as ARCA, will assume responsibility for proper handling of old appliances. Some utilities will offer cash rebates for replacement of older working appliances. Discarded appliances are second only to automobiles as a source of recycled metals, particularly steel. Using recycled steel has a positive impact on the environment. It takes four times as much energy to produce steel from virgin ore as it does to make the same steel from recycled scrap.

By thinking “Green” when planning new projects and replacement jobs, we can make our planet a better place to live now and for generations to come.

Milan Rubenstein, Amy Rubenstein, Milan Properties, 4950 Coldwater, Milan Management