Jan 20

From Reuters:

Effective March 1, Delta, the second largest U.S. airline by passenger traffic, said it will require passengers seeking to fly with pets to present additional documents outlining the passenger’s need for the animal and proof of its training and vaccinations, 48 hours prior to the flight.

People love their animals. What they often do not comprehend is the impact an animal can have on others.

My wife has severe animal allergies. The allergies are so bad she went anaphylactic on a flight over the Atlantic due to an undeclared purse dog when we were coming back from teaching in Jamaica. When an emergency inhaler did not do the trick, we used her Epipen and the flight crew gave her oxygen.

I thought she would die. Anaphylaxis is terrible it’s like a fish out of water, struggling to breath. It was the absolute scariest couple of hours of my life.

Similarly, she cannot go into a house or a hotel room if there has been a dog in the place, without similar reactions. And animal allergies are not as uncommon as some believe.

Once every rental has to be pet friendly, where do the people with life threatening allergies live?  One would hope that Fair Housing laws give more weight to issues that can cause death.

 

Sep 27

Attorney Tristan Pettit, you know, the guy that writes the standard legal forms for Wisconsin Legal Blank, is doing his landlord-tenant Boot Camp again on Saturday, October 7th. There are still a few seats left.

You get a full day of landlord-tenant law training for the price you’ll spend for 30 minutes of attorney time after you make a mistake in this complex area of law,

All the details are at:
http://www.landlordbootcamp2017.com

But the proof of value is I send my staff to Tristan’s Boot Camps.  Even though I know the laws, it is of great value to have staff learn what they need to be concerned about in a different setting than the office.

Feb 09

For the past couple of years, we have sold out both the spring and fall sessions of Attorney Tristan Pettit’s AASEW Landlord Tenant Law Boot Camp.

It looks like we are on track to do the same for the upcoming February 18th, 2017 Boot Camp.

Last fall I waited too long to sign up my new staff members and could not get them in. I signed up three staff people very early for this one. 😉

You may ask ‘Why would Tim pay $537 plus wages to send three people to Boot Camp when he knows the laws so well?’

The answer is easy: One small mistake or missed opportunity will cost us far more than this. It is important that my folks know the law as WI landlord Tenant Law is not always what a reasonable person would assume it to be. And this is ever evolving, with both new laws, new interpretations by courts and new tricks by tenant advocates*. This is not the first time we’ve sent staff either.

This course is presented by Attorney Tristan Pettit. Tristan’s law practice focuses on landlord-tenant law, he is a current board member of the Apartment Association as well as former president, and drumroll please, he writes all the standard landlord tenant forms for Wisconsin Legal Blank.

If you want to go, now that my seats are secure ;-), you can sign up online or call Joy at the Association 414-276-7378 and reserve a spot.

http://www.landlordbootcamp2017.com

* Most “tenant advocates” only advocate for tenants that break the rules. This ultimately costs the rest of the good tenants more in increased rents and decreased service or more noise and disruption… but this is another story for another day.

May 02

A reader suggests  (copy below) that much of the conversation regarding the new HUD directive on the use of criminal records in tenant screening is an attempt to  “beat the law.”  It is not.  Rather it is seeking to answer the question of how do rental owners reduce the disruption and danger of crime at their properties while also addressing the concerns of local governments and neighbors by avoiding renting to those prone to criminal activity.

Back in 2001 our company set a screening criteria that we used with only minor adjustments since.  (Copy Below) This was based on researching our failed tenants.  At that time, we found that misdemeanor convictions and evictions appeared impactful if they occurred within the past three years and felonies for drugs and violence in the past seven years.  I was surprised while reading HUD’s directive on the use of criminal records for screening that it references a report* that states the recidivism rate of criminals drops to the incidents of criminal activity in the general population at 6-7 years.  I guess we got that one right from our own data, without the fancy formulas used by the researchers. 😉

Note that HUD permits and perhaps even encourage the lifetime rejection of persons with drug distribution and manufacture convictions.  So it seems in HUD’s view, a kid with a misdemeanor possession with intent to distribute conviction can be excluded for is life, while the violent person only for a “reasonable” period of time and the habitual thief never. I question whether permitting the exclusion for drug crimes was done out of recidivism data or if it was a case of political will. I know people who have had drug issues and have overcome those problems to lead productive and successful lives.  Many of those charged with possession with intent to deliver often are simply users or addicts selling small amounts to support their habits.

Back when researching our current criteria we recognized that some applicants with criminal histories did not cause future problems. How do you identify those who were not a risk, from those who are?  We chose to accept those with a letter of recommendation from their PO despite having convictions. In the fifteen or so years since that policy has been in place, we found applicants with the PO recommendation have a failure rate below that of general applicants.  It is unlikely that a PO would put their name to paper if they did not believe in the client.

Our company’s existing screening criteria seemed to be close to the requirements under the HUD April 4th directive. We had to modify it to exclude simple possession drug convictions and theft convictions as  disqualifiers.  While I believe that both are indicators of tenancies that may fail, neither are permitted today.  We also reduced the lookback period on felonies from seven years to six.  The report  HUD based their finding on said 6-7 years.   I do not want to be arguing over being at the top end. And finally, we added more options than PO letters, although PO letters will remain an automatic qualifier if our other criteria are met.  Our revised criminal screening is attached below.  Use it at your own risk if you wish and remember that I am just a landlord, not an attorney.

The part of the challenge is municipalities attempt to shift responsibility for criminal acts from the criminal to the owner of the house they live in through nuisance ordinances.  These laws encouraged owners to have strict no criminal screening policies.

If you go to neighborhood meetings, you will find that most people who live in neighborhoods where your properties are located will be angry if you rent to anyone with a criminal history regardless of the charge or how long ago it was.

This attempt by HUD to solve a problem that was not created by the housing industry (discriminatory law enforcement) creates a solution that makes screening and complying with nuisance laws far more difficult and far more prone to litigation.

All this leads to a tough balancing act for the property owners – far more difficult and involved than simply trying to “beat the law.”

* Megan C. Kurlychek et al., Scarlet Letters and Recidivism: Does an Old Criminal Record Predict Future Offending?, 5 Criminology and Pub. Pol’y 483 (2006) (reporting that after six or seven years without reoffending, the risk of new offenses by persons with a prior criminal history begins to approximate the risk of new offenses among persons with no criminal record).

http://www.albany.edu/bushway_research/publications/Kurlychek_et_al_2006.pdf

Affordable Rental Associates’ Revised Screening Criteria (To open the conversation, not for your use without your attorney’s review):
  • Municipal Convictions* related to manufacturing or distributing a controlled substance, crimes that indicate a demonstrable risk to the safety or peaceful enjoyment of residents or neighbors, and/or property damage: No convictions in 2 years.
  • Misdemeanor Convictions* related to manufacturing or distributing a controlled substance, crimes that indicate a demonstrable risk to the safety or peaceful enjoyment of residents or neighbors, and/or property damage: No convictions in 3 years.
  • Felony Convictions* related to manufacturing or distributing a controlled substance, crimes that indicate a demonstrable risk to the safety or peaceful enjoyment of residents or neighbors, and/or property damage: The latter of 6 years after conviction or 4 years after release from custody
  • Unresolved Cases* related to manufacturing or distributing a controlled substance, crimes that indicate a demonstrable risk to the safety or peaceful enjoyment of residents or neighbors, and/or property damage or charges that may result in imprisonment for more than 15 days: Application will be considered after resolution of the case.
    * Criminal record exception will be made for applicants with otherwise acceptable rental history and income upon positive written reference from their Parole Agent or other official on government letterhead. Other factors may be considered on a case by case basis. It is the responsibility of the applicant to supply any supporting information and documentation
Bill Writes

Much of the conversation I hear about this new directive is about figuring out ways to beat the law. I’m sure we landlords will come up with something and our lawyers will try to protect us.  But lets be realistic.  Most rental policies look back 3-5 years. Each town is different,  but most people returning from incarceration can only afford to live in low income neighborhoods. Much of this won’t apply to the higher end of the market.

Here is a little recognized fact.  About 50% of the people leaving Wisconsin prisons are Caucasians! With the increase of drug felonies and prison time courtesy of the Heroin epidemic, more are released to places like Waukesha, Appleton, Wausau, Green Bay, Janesville, La Crosse, Stevens Point than ever before.  Its true Milwaukee has a larger racial component that other parts of the state, but the fact remains, people returning from incarceration will likely live in rentals in the low income neighborhoods of your city. They make up a significant portion of the tenant pool.  Figuring out a good way to bring these people back into the market is good business.

So why not  define the best practices way of working with our tenants?   HUD issued a letter [ Notice PIH 2015-19] in 2015 to the Public Housing Authorities doing just that for PHA’s http://portal.hud.gov/hudportal/documents/huddoc?id=PIH2015-19.pdf

Not all of this applies to us private landlords, but we can come up with our own list, run it by the attorneys, and Fair Housing.  Please email me your thoughts at billtoday43@aol.com.
In some neighborhoods the percentage of people without criminal history is much smaller than those that do.  

Second interesting fact. Most people do not re offend.  Recidivism is steadily going down in Wisconsin.  Most of the people sent back to prison are for crimeless revocations, meaning that a P.O. sent them back because of a rule violation, not a new crime. While caution in rental practices is warranted, fear is not.

Lastly, Felons are among us!!!  Its estimated that about 700,000 felons live in Wisconsin and they don’t all live in Milwaukee!  But most will live in low income neighborhoods. People on supervision make better tenants than those who are not because the fear of going back is a greater influence on current behavior.  They usually double up with family, friends, spouses, or partners. Anybody who owns property in these neighborhoods know the signs.  So lets be the leaders we are and get in front of this!

Apr 19
Over on  the ApartmentAssoc at YahooGroups list Bill Lauer wrote:
Since we use conviction records as a screening criteria, it is important to consider this in the larger societal context. The disparate impact issue starts way before someone applying for an apartment. This is a simplified version of a much longer story. The sex offender issue is different so lets make that a different discussion.
 
For example, Landlords use felony drug records to screen.  We now know that drug laws were written to unfairly punish one group over another.  For example, the sentencing differences between powder cocaine and crack cocaine.  First offenders with powder cocaine, used largely by white people, often times got off with probation.  Offenders with the same weight of crack, used largely by Black offenders, went to jail or prison. This is where the disparate impact begins.
 
Another example is the criminal  differences between alcohol use, used largely by whites,  and marijuana, used largely by young liberals and Blacks.  http://www.cnn.com/2016/03/23/politics/john-ehrlichman-richard-nixon-drug-war-blacks-hippie/
 
We know that cops overcharge so that “deals” can be made later in the process.  Deals usually come with reduced charges with higher fines in exchange for little or no jail time.  If you don’t have the money, you sit in jail. We know that if you had  the money for a lawyer  you could beat the charges and stay out of jail.  If you didn’t have the money, well, you went to jail, because there was nobody that could make the deal.  And of course, what groups don’t have the money for good lawyers?
 
So now enter the  Heroin epidemic. The current form has been going on for about 10 years, about 6 in Wisconsin.  It is largely affecting white middle class kids.  They go to treatment a few times, they go to prison for possession, maybe theft, prostitution, and burglary.  They come out as felons who can’t go home to their parents, they can’t get a decent job, nor decent housing. This is the push behind a lot of these changes, now, at this time. You can’t give the white kids a special deal for their medical condition of addiction without applying that equally across all protected classes.
 
 Also, the industry’s response to being made more responsible for tenants behavior, [starting 20 years ago] coupled with easy access to  records through the Internet have had a long term, unintended consequence that we as an industry, really need to look at.  As Tim says below, this is nothing that was not predictable.  But we weren’t proactive, so now we get to be reactive.
 
The wave of change in the criminal justice system that this HUD letter represents has got a lot of momentum. Its 25 years in the making.  Coupled with the pressure of governments to reduce the cost of prisons, we’ll see a lot more change in the upcoming 5 years as America empties its prisons.  And they all need a place to live.
 
Bill Lauer
 
I mean….If you follow Ron Johnson’s career, who in a million years would have guessed that he would be calling for more drug treatment, more action, spending more money on junkie, on national TV in WAUKESHA???????  Sitting  next to Tammy Baldwin!

Bill is right.  But this is wrong.

Yes, the HUD screening directive is in response to a criminal justice system that appears skewed against racial and social minorities.

The method chosen to correct the underlying problem completely ignores the cause.  Rather, the Federal Government and the Administration made screening more complex and litigious instead of addressing unequal enforcement of criminal and municipal laws. Sure in the most egregious situations like Ferguson you see the government step in.

In general, this is another issue forced upon owners who were not the cause. This is a lot like the lead paint situation where the government permitted the use of a known dangerous product for decades, even requiring its use for some federally funded housing, before leaving most of the cost and legal challenges in the lap of the property owners.

So now owners will have to walk even more of a tightrope – rejecting far less applicants for criminal records may keep HUD happy, but then you have to deal with nuisance property concerns and worries that someone you put in may harm other tenants, employees or neighbors.

Apr 12

Last week HUD issued a directive on the use of criminal records in tenant screening.  On the surface, this ruling would prohibit blanket rejections for criminal records, ostensibly including a blanket prohibition against sex offenders.

Renting to registered sex offenders cause anxiety for your neighbors. And I do not disagree with their sentiments.  I would not have wanted someone on the registry living next to me when my children were small and I certainly would not want one living next to my grandchildren today.

I expressed my concern that owners would have to begin accepting  sex offenders to AASEW General Counsel, Heiner Giese.  Heiner brought to my attention that in Milwaukee only 55 properties meet the Milwaukee Sex Offender Residency rule.  The rule penalizes the offender, not the property owners.

If your properties are outside of Milwaukee you may be required to accept sex offenders under the HUD directive.  However, this HUD rule was implemented to address disparate impact of such screening processes as they impact existing protected classes.  It does create a new protected class per se.  Most sex offenders are White males which should make this less of an issue under the April 4th, 2016 HUD Fair Housing letter.

Some people are very passionate on these issues as the recent FaceBook discussion regarding screening for criminals shows. There is, of course, many larger issues with the sex offender registry.  The two kids experimenting in the back of the Chevy probably should not be branded for life on an offender registry.  Remember that 48% of kids have had sex by the time they are 17.  The first sex offender in WI was a case similar to this in Palmyra.

Not that I am an advocate for sex offenders, Affordable had a prohibition against sex offenders renting from us for as nearly as long as the registry existed, but the abundance of residency restrictions will ultimately cause politicians or judges will make them a protected class.  Then all owners, including government housing, will have to rent to them unrestricted throughout the community.

Miami adopted a similar 2,500-foot restriction in 2006.  This resulted in the sex offenders forming a cardboard box camp under the bridges of the Julia Tuttle Causeway, I-195.  In 2010, the city of Miami bulldozed the camp.  It then cost the city $1000 per month per offender that was relocated to house them in hotels.  256 offenders stopped reporting their addresses in the process.

People smarter than me need to find the answer but trust that it will become a problem for everyone if left unaddressed.

 

Apr 05

On April 4th, 2016 HUD guidelines on the use of criminal records in tenant screening were released. This is a game changer that negates much of what was achieved with the crime-free portion of Wisconsin 2015 ACT 176. It also impacts all screening.

No longer can arrests be considered in screening. Convictions may be considered, but only those convictions that directly relate to the safety of the property or its residents.

“A housing provider with a more tailored policy or practice that excludes individuals with only certain types of convictions must still prove that its policy is necessary to serve a “substantial, legitimate, nondiscriminatory interest.” To do this, a housing provider must show that its policy accurately distinguishes between criminal conduct that indicates a demonstrable risk to resident safety and/or property and criminal conduct that does not”

Amazingly the directive does not appear to allow consideration of neighbors safety, only residents. So does this mean an axe murdering rapist drug dealing member of the local street gang must be allowed to rent any single family as long as they meet your income guides?

The real losers in this will be the law-abiding tenants and their neighbors

Sep 04

There is a discussion over on theApartment Association email discussion group about income criteria for unmarried co occupants vs. married occupants.

A tenant is a tenant, regardless if they are married, cohabitation, straight, gay, white, black or green.

If you are using a reasonable income criteria for screening, that is good as long as you don’t factor in the other things such as marital status.  

Your protection if occupant A departs on month two of a year lease is to let occupant A know you are not releasing them from the obligation they have to you under the rental agreement. Simply moving out does not relieve the vacating tenant from their obligations under the rental agreement. 

As soon as you start analyzing if applicant A has enough income without applicant B for unmarried tenants, but consider the income of both undividedly  for married tenants you are running afoul of Fair Housing, at least in Wisconsin.

While marital status is not a protected class under Federal Fair Housing, it is a protected class under Wisconsin’s Open Housing Law and in a number of other jurisdictions.

Plain English version:

https://dwd.wisconsin.gov/dwd/publications/erd/pdf/erd_9523_p.pdf

Statute:

https://docs.legis.wisconsin.gov/statutes/statutes/106/III/50/1

106.50 Open housing.

(1)  Intent. It is the intent of this section to render unlawful discrimination in housing. It is the declared policy of this state that all persons shall have an equal opportunity for housing regardless of sex, race, color, sexual orientation, disability, religion, national origin, marital status, family status, status as a victim of domestic abuse, sexual assault, or stalking, lawful source of income, age, or ancestry and it is the duty of the political subdivisions to assist in the orderly prevention or removal of all discrimination in housing through the powers granted under ss. 66.0125 and66.1011. The legislature hereby extends the state law governing equal housing opportunities to cover single-family residences that are owner-occupied. The legislature finds that the sale and rental of single-family residences constitute a significant portion of the housing business in this state and should be regulated. This section shall be considered an exercise of the police powers of the state for the protection of the welfare, health, peace, dignity, and human rights of the people of this state.

Apr 30

Over on the ApartmentAssoc Yahoo Group an owner asks:

I’m wondering if we would be discriminating to look for one person rather than two, whether a couple or whatever…because we are both over 55 and can’t take the noise we’ve taken through the years…even between couples yelling at each other. Do we have to declare the house 55 and older and find someone over 55 for the lower?  I thought I read a post that said if you are living in the other unit in the house you can…? 

Seems like Fair Housing question month.

Is this your personal residents?  There is an exemption to the Federal Fair Housing law for owner occupied 1-4 family properties. It is called the Mrs. Murphy exemption.   The exemption does NOT apply in Wisconsin however.  

Wisconsin 106.50 

106.50  Open housing.

(1)  Intent. It is the intent of this section to render unlawful discrimination in housing. It is the declared policy of this state that all persons shall have an equal opportunity for housing regardless of sex, race, color, sexual orientation, disability, religion, national origin, marital status, family status, status as a victim of domestic abuse, sexual assault, or stalking, lawful source of income, age, or ancestry and it is the duty of the political subdivisions to assist in the orderly prevention or removal of all discrimination in housing through the powers granted under ss.66.0125 and 66.1011. The legislature hereby extends the state law governing equal housing opportunities to cover single-family residences that are owner-occupied. The legislature finds that the sale and rental of single-family residences constitute a significant portion of the housing business in this state and should be regulated. This section shall be considered an exercise of the police powers of the state for the protection of the welfare, health, peace, dignity, and human rights of the people of this state.

If you do not live in WI here is a good reference to state laws on the “Mrs. Murphy” exemption:

Even under the Federal “Mrs.Murphy” exclusion you are not permitted to advertise an otherwise discriminatory preference, so if you do not qualify under the housing for older persons exemption you could not, lets say, advertise ‘adults only’ or ‘one person only’.  If you do qualify you can advertise 55 and older.

I could not advise you on the housing for older persons question as it is not a issue that I deal with.  

My assumption is if one unit is vacant you do not meet the standard, but I may be wrong.  I would ask the Division of Equal Rights directly:

https://dwd.wisconsin.gov/dwdsendmail/mailtodwd.aspx

Sub (5m)(g) may offer some relief:

(g) A person may not be held personally liable for monetary damages for a violation of sub. (2)(2m) or (2r) if the person reasonably relied, in good faith, on the application of the exemption under this subsection relating to housing for older persons. For purposes of this paragraph, a person may show reasonable reliance, in good faith, on the application of the exemption under this subsection relating to housing for older persons only if the person shows all of the following:

1. That he or she has no actual knowledge that the housing is not or will not be eligible for the exemption.

2. That the owner of the housing has stated formally, in writing, that the housing complies with the requirements for the exemption.

Apr 24

 

Over on the ApartmentAssoc Yahoo Group an owner asks:

The person who would occupy the second floor apartment is older, and I have no real accommodation for mobility issues… is there a polite / legal way to ask before hand since I wouldnt be able to put them in once the person is there (( is there a list / guide to requirements in this regard ? )). 

You should make sure the applicant understands what they are renting ‘This is a second floor apartment’ , but not is a tone to discourage them from renting.    Obviously you cannot say ‘I think you are too old to climb our steps.’  

As far as accessibility modifications, in general you are required to permit the reasonable modifications but are not required to pay for the modifications in pre 1991 housing.  You can require the tenant at the time of move out to restore it to how it was prior to adding the accessibility modifications.  However in most cases doing so would be foolish as you the mod could be a high demand attribute that would make your unit more desirable to other tenants with similar needs. 

Apartments built or substantially modified after 3/1/1991 are required to meet the ADA standards. If that standard was not met during construction, the owner must update it to the ADA requirements. Of course you may be able to sue the builder to pay for it. 😉 

Here is a real good guide to the reasonable modifications requirements

You are required though to make reasonable accommodations, which is different than reasonable modifications.  An example is assigning a parking spot closer to the door for a person with mobility issues if they request this.  

One reasonable accommodation request  that many owners get wrong – if a person is on SSI due to a disability and therefore receives their check on a day other than on the first, you must modify their rent due date and not charge late fees. [Case]

When you decide it is up to you to determine what may or may not work out for a prospective tenant is when you get in trouble. 

There is a Fair Housing case from La Crosse where a landlord refused to rent to a single mom because the property had a long drive that was the tenant’s responsibility to shovel, which the landlord felt would be difficult for her to do.  The landlady’s attempt to take it upon herself to determine what would or would not work for the tenant cost the landlady $15,000 plus I’m sure some costs.  The right thing for the landlady to do would have been to point out to every prospective tenant that shoveling the driveway was their responsibility and failing to do so was a lease violation.

There are countless cases of owners who got in trouble for restricting families with children from living on the second floor, or living next to the pool.  The former being for the convenience of the other tenants and the latter being out of fear of children drowning.  Neither are legitimate reasons within the confines of Fair Housing.

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