AOBA PARTICIPATES IN BRPAA TRAINING SESSION
This year, the Board of Real Property Assessments and Appeals (BRPAA) invited AOBA to participate in its annual training sessions for Board members. AOBA assembled a highly qualified panel to brief Board members on valuation issues pertaining to commercial and multifamily properties. G. Thomas Borger, Chairman of Borger Management, Inc. and Ernest S. Wittich, Senior Vice President of Acquisitions for Vornado/Charles E. Smith, represented AOBA before the Board. The panel addressed the diversity of issues that buyers and sellers of income-producing properties consider in determining a property’s value.
On the multifamily side, Mr. Borger discussed D.C.-specific factors, such as the impact of rent control and the Tenant Opportunity to Purchase Act. Mr. Wittich, in his presentation regarding commercial properties, spoke to a number of issues, including: decreasing rents and values; submarket differences in the marketplace; and the impact that lack of financing can have on value.
Board members responded favorably to the AOBA panelists and engaged each in a vigorous discussion on a variety of topics. AOBA was pleased to have the opportunity to participate in the 2010 training sessions and felt doing so was worthwhile; we hope there will be similar opportunities to address the Board in the 2011 and future training cycles.
AOBA TAKES RECYCLING ENFORCEMENT CONCERNS TO CITY ADMINISTRATOR
Over the past few years, both multifamily and commercial members of AOBA have raised complaints about the District’s enforcement of its recycling law, which often seems focused on a punishing, street-level effort of issuing citations for isolated instances of violations, rather than on a big-picture approach, i.e. trying to ensure that as many recyclables as possible do not enter the waste stream. In an effort to address these concerns through a cooperative approach with the District, AOBA and (increasingly) senior representatives from both commercial and multifamily member companies have participated in numerous meetings with staff representatives from the Department of Public Works (DPW), which is charged with recycling enforcement. To date, however, there has been regrettably little to show for our efforts; while we were able to obtain some meaningful changes in the agency’s enforcement regulations, e.g. getting the previous, one-size-fits-all fine structure revised, problems persist with things like citations being issued after-hours when no building personnel are present, that are delivered weeks later or sometimes not at all, and which result in ridiculous fines and even liens being placed on buildings—the same buildings that are contributing millions to the District’s tax base.
AOBA has now brought these ongoing concerns and member frustrations directly to the attention of City Administrator Neil Albert. In a meeting convened by the City Administrator and at which he had DPW Director Bill Howland in attendance with key staff, AOBA members Mary Lynch (Akridge), Kathryn Clement (Vornado/Charles E. Smith), Tom Borger (Borger Management) and John Ritz (William C. Smith and Co.) shared egregious examples, and minced no words in emphasizing the need for major improvements to the administration of the District’s recycling program-- if the city really intends it to be something other than a punitive means of revenue generation. AOBA reiterated its commitment to work with the District on effective means of increasing recycling rates and realizing the environmental benefits of recycling.
We came away from the high-level meeting with some reason to be encouraged that responsive changes to the enforcement effort may eventually result. For example, the DPW Director committed to improvements aimed at more timely notication of owners about inspections and any resulting notices of violations; the City Administrator, meanwhile, appeared concerned that the current enforcement scheme allowed no opportunity for an owner to cure a violation before a fine is imposed. At City Administrator Albert’s suggestion, AOBA and DPW will participate in a working group to help identify specific improvements to the District’s recycling program. He also indicated that he would hold a follow-up meeting in three months to monitor whether progress is being made in addressing AOBA concerns.
ISSUES REMAIN WITH LEAD-BASED PAINT DISCLOSURE FORMS
In accordance with the “Lead-Hazard Prevention and Elimination Act of 2008” (the “Act”), the District’s Department of the Environment (DDOE) issued a lead-based paint disclosure form—of its own creation, rather than utilizing a well-known Federal form-- in September 2009. Almost immediately, AOBA members identified a number of concerns. Most notably, the form requires an owner to disclose “actual knowledge” of lead-based paint (LBP) conditions in a property. The District’s form, unlike the Federal disclosure form, does not allow a property owner to indicate that it has no knowledge of LBP hazards in the dwelling. The absence of such language raises significant liability concerns.
AOBA conveyed these concerns to the DDOE Director and his staff and, more recently, to the City Administrator’s office. Based on these discussions, we are hopeful that the issues identified by AOBA will be addressed in the near future.
RENT CONTROL WORKING GROUP
Councilmember Michael Brown (D-At Large), Chair of the Council’s Committee on Housing and Workforce Development, recently invited AOBA and other stakeholders to participate in working group meetings aimed at addressing rent control reform in a comprehensive manner. AOBA supports a comprehensive approach to any review and possible revision of the Rental Housing Act, and has urged the Council to, in favor of such an approach, reject piecemeal amendments to the law. While it is premature to take his convening of the working group as a commitment by Brown to take no action on the various amendment bills pending in his Committee, the working group is being tasked with addressing a number of issues, ranging from proposed changes to the hardship petition process to a legislative proposal to make rent control permanent in the District. AOBA will update the membership on the working group’s activities with periodic Action Alerts and in At Issue.
AOBA’S FOURTH ANNUAL SCHOOL SUPPLIES DRIVE TO BENEFIT SPINGARN SENIOR HIGH - CONTRIBUTION DEADLINE IS AUGUST 19
AOBA has designated the District’s Joel Elias Spingarn Senior High School, 2500 Benning Road, NE in Ward 5, as the beneficiary of our fourth annual school supplies drive. With the funds we collect, AOBA will purchase graphic calculators for the students enrolled at Spingarn. WE NEED YOUR SUPPORT!
Donation requests, with recommended contribution levels, have been mailed to all members. As the school year begins on August 23, please remember to forward your contribution to AOBA by August 19, 2010. However, if you can make a contribution but may not be able to make the deadline, or otherwise have any questions, please contact Nicola Whiteman at (202) 296-3390 or NWhiteman@aoba-metro.org. Thank you for partnering with us to help meet the academic needs of students at Spingarn Senior High.
DC AGENCY UPDATES
REMINDER: DCRA Has Posted August Proactive Housing Inspections Schedule
The DC Department of Consumer and Regulatory Affairs (DCRA) has posted the August 2010 inspection schedule on its website. Click on DCRA – AUGUST PROACTIVE INSPECTION SCHEDULE to view the list of residential properties that DCRA plans to inspect in August.
September 15 DCRA Presentation on Elevator Licenses/Inspections
On September 15, from 10:00am to 12:00pm, DCRA will hold a briefing for property owners/managers regarding updates on elevator licenses and inspections in the District. Look for additional information, including location and the agenda for the event, in an upcoming Action Alert from AOBA.
City’s DDOE and the Federal Emergency Management Agency to Hold Briefing for Commercial Property Owners on Special Flood Hazard Area for the District of Columbia
The Federal Emergency Management Agency (FEMA) recently designated several areas within the District of Columbia, including downtown Washington, as likely being located within a Special Flood Hazard Area (Flood Zone). If a property is in the Flood Zone, its owner will be required by federally regulated mortgage lenders to obtain flood insurance for the buildings on the property.
AOBA members should review the Public Notice to Property Owners for information on a special briefing by FEMA and DDOE for commercial property owners. Please note that each property owner or tenant within the affected area will receive a letter similar to the one forwarded to AOBA. The briefing is scheduled for Thursday, August 19 from 2-3:30p.m. at the Washington DC Economic Partnership located at 1495 F Street, NW, Washington, DC 20004.
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