the president's report
Cheaters Never Win
by David Wasserman
Fellow members, please read and consider a recent letter that I sent to SFAA:
Please update the “David and Stephen Wasserman” account by adding 24 units to the current number of apartment units owned by this membership. On October 1, 2008, we closed escrow on a 24-unit residential apartment building located at 949 Post St. Please send a supplemental billing statement and adjust our annual membership dues accordingly. Sincerely, The Felix Group, LLC |
Many of us may have acquired or sold buildings and failed to adjust our accounts accordingly. SFAA’s dues structure is based upon the number of rental units that a regular member owns. We conduct no audits; therefore, our ability to sustain revenue growth is entirely dependent on your honesty. Nobody relishes the notion of increasing their expenses. However, if we fail to pay our fair share, we end up paying far more to battle egregious legislation and harmful governmental policies. So, please take some time at the start of the new year to ensure that SFAA has your correct and complete portfolio information. Remember, we are a nonprofit organization, which means that all revenue pays for the advancement of the housing industry. We are only as effective as the tools within our disposal, and we need a large arsenal to battle the ever-growing tenant lobby. Feel free to use my letter as a form.
In addition, SFAA maintains a legal fund that requires annual replenishment. In late September, you should have received a letter from Executive Director Janan New requesting $250 from each member for the legal fund. As we have stressed over and over again, the only forum where the playing field is somewhat level is at the courthouse. We will not receive any degree of fairness from the legislature, as these elected officials know that most of their constituents are tenants. Likewise, the mayor must also temper his assistance towards the industry, as he has his own challenges at city hall. Litigation provides the only meaningful avenue for relief when we are faced with grossly unfair legislation and actions by the government.
For example, the California Supreme Court and Court of Appeal finally limited tenants’ ability to sue their landlords for simply serving an eviction notice and prosecuting an unlawful detainer. These rulings, which greatly enhanced the ability to evict problem tenants without the fear of losing one’s net worth in the process, were made possible by legal challenges to the status quo. Our legal fund has also assisted industry attorneys with efforts to strike down laws inhibiting free discourse with our tenants, expanding ownership requirements for owner move-in evictions, and imposing vacancy controls on empty units. Absent the swift response in court, the City would have continued to enforce these illegal laws to the detriment of owners.
Remember, the City enjoys immunity from most official acts, and the billions of dollars it spends every year come from taxpayers like us, so there is no incentive to do the right thing. Instead, the bureaucrats almost always cede to the political winds, so we need the ability to hire industry lawyers to ensure that our government abides by the laws of the state. While this reality may reflect a sad state of affairs, it is nonetheless a reality that we must accept for the time being. In sum, if we fail to protect property interests via the courts, we can expect these rights to be discarded by those charged with our care.
Fighting the local government is also a very expensive endeavor. The City Attorney’s Office has more resources than any private law firm in the city. Plus, its budget is paid for by you and me. There is almost no private landlord who can afford to battle the City; as a result, funding from SFAA and similar groups is absolutely imperative to ensure that bad laws and actions get stricken. Indeed, fighting City Hall is the ultimate “David versus Goliath” battle. To assist an industry member with such a battle, our organization could easily spend $100,000, yet the result not only benefits everyone, but also further conveys the message that we will not tolerate the types of injustices that have been so prevalent in recent years.
As reported by SF Apartment Magazine on a regular basis, the industry wins its cases most of the time. Our victories occur because cases are carefully selected and evaluated before funding is committed. The industry attorneys are very experienced and advise only taking cases that are factually and legally likely to yield a favorable result with the widest possible impact. The record over the past 10 years shows that this formula has worked well. Thus, your donations are not going towards useless efforts or lost causes, and I encourage everyone to read the court update columns in the magazine to confirm the validity of this representation. In sum, please donate at least the minimum amount requested, and send more if you can. As most challenges to the City’s governmental arrogance is terribly costly, we need to stand ready to assist members with the right battle at the right time.
Finally, the same September letter also requested a $250 contribution to the Political Action Committee. The PAC supports political campaigns and candidates that are favorable to the industry, as well as efforts to defeat measures designed to erode what few rights we have left. Each year, SFAA determines which local measures should be supported or opposed, and which candidates deserve our contributions. The PAC ensures that we can contribute to the pro-owner candidates and campaigns. In the past, we have been instrumental in defeating ballot initiatives that would have been extraordinarily harmful.
To this end, many members voice their concern that we should oppose more measures and lend heavier support to our friendly causes. While the concern is well noted, the state of our PAC budget usually constrains the ability to aid the entire field of favorable prospects. Thus, your assistance will broaden the ability to make a stronger impact during the elections, so please remember to make an annual PAC donation.
The stakes have never been higher. Our opponents continue their attacks as they fear that gentrification will substantially reduce their political clout. We cannot tolerate the ongoing unconstitutional reprisals, and we need your help to fund the appropriate responses and offensives. Thank you for support in 2008, and I look forward to a happy and prosperous 2009.
The opinions expressed in this article are those of the author, and do not necessarily reflect the viewpoint of the SFAA or the SF Apartment Magazine. David Wasserman is the president of SFAA. He can be contacted at Wasserman-Stern Law Offices, 415-567-9600. Copyright © 2009 by Black Point Press. All rights reserved.