Texting and the Landlord/Tenant Relationship

A Friend and Colleague Jacob Beeson, with Beehive Property Management wrote this post. With his permission, I am sharing it here. Very Good Information.

While texting is a quick and convenient way to communicate, you must be very careful using it for professional, important, or potentially contentious and adversarial conversations.

Authentication:
Courts are not quite ready to count text messages as actual communication.
While it’s a good practice to keep screen shots of juicy messages, it won’t always work. Unless you have the whole conversation, it could be tough to prove the context. It’s tempting to negotiate late rent payments, timing of repairs, inspections, or move out dates via text. It’s best to assume that whatever ‘deals’ are struck via text are not enforceable without lengthy (and expen$ive) court proceedings.

Don’t get emotional!
Texting is for convenience in communicating with people you know and like. Text messages are usually personal and private; from family and close friends. Don’t invite sticky landlord-tenant issues into this type of communication!
Texting can get emotional quickly. When communicating via text with someone you don’t know well, you cannot pick up on non-verbal cues or other communication subtleties. This can lead to a ‘worst case scenario’ reading of any and every message; especially in an adversarial situation.

What’s the answer?
From the very beginning, establish with your tenant / landlord a professional relationship that does not include texting!

For example, if you get a text from a tenant asking if they can pay rent late; send this text back “my counsel has advised me not to discuss landlord tenant issues via text message. Please email this message to me. :-)” Then, do not respond to any more texts from them. Or, send an email in response to a text. It’s a nice way of saying that you’d rather have the message delivered in a traceable, verifiable, and professional way.

Most of all, when you have Arizona landlord – tenant problems, don’t stress!

Gaining Efficiency in Real Estate Property Management by Offering Generation-Appropriate Payment Channels

Interesting Article taken from National Real Estate Investor, 8/24/2013 by Nancy Pierce.
Farnsworth Ricks offers a variety of payment methods, including check or money order taken during office hours or after hours through our payment drop box; Online through our Website where a tenant can use their credit card if desired or the tenant may sign up for an ACH withdrawal from their bank acct. each month.

In an increasingly competitive rental market, understanding and using tenant demographics and preferences to strategically select payment channel offerings enables real estate property managers to improve their tenant experience as well as save money and enhance accounts receivable management.

This article reports on how different age groups view both traditional payment methods and emerging payment technology, and how those views influence their rental payment behavior. It also suggests the payment methods—including a number of newer electronic channels—that real estate property managers might want to consider offering based on the generational demographic mix of their tenants.

Drive for efficiency

In any service industry, companies must be efficient and tightly manage costs in order to be successful. While new technology is helping to meet such goals, there are new challenges exacerbating the traditional pressure to be efficient in real estate property management.

For instance, tough economic times have led to more people foregoing home ownership in favor of apartment living. For real estate property managers, the housing crisis created a business opportunity by increasing the demand for apartments. However, at the same time, this trend resulted in greater competition.

Because of the escalating demand for apartment space and the low cost of entry, many non-traditional providers have taken the leap into the commercial real estate market. This new competition is heightened in the property management arena, with many firms taking management responsibilities in house. What’s more, many apartment brokers are expanding their roles to include the full cycle of real estate management activities, including those traditionally performed by property managers, such as rent collection and property maintenance. As such, apartment brokers are becoming a new source of competition.

Shifting generational demographics

Another big challenge for real estate property managers has been a shifting of generational demographics among their tenants.

In addition to efficiency, a traditional success factor in the service industry has always been the ability to keep customers satisfied. In real estate property management, that means meeting the needs of existing and prospective tenants. But what they want often differs based on their age. And today there are some generational demographic trends challenging property managers as they pursue customer satisfaction.

First, seniors, the largest generation, represent a growing percentage of apartment dwellers. And, second, the gap between what seniors want and the desires of the younger generation is as wide as it has ever been. This divide between age groups is particularly evident regarding the use of technology for making rent payments.

Technology and expectations

The most recent Federal Reserve Payments Study, results of which were released in April 2011, revealed that the number of checks written each year was falling at a rate of almost 6 percent a year, while electronic payments volume was rising at more than 9 percent a year. This trend plays right into the challenges that real estate property managers face to increase efficiency, maintain profitability and remain competitive in today’s tough business environment.

Accepting electronic payments can help property managers increase their working capital by converting rent payments into available cash faster, allowing them to utilize the cash for short-term investing or paying down debt. It can also help property managers reduce bank costs, as financial institutions are pricing their services to incent greater use of more efficient electronic payments and convert paper checks to electronic form as early in the deposit cycle as possible.

Electronic payments also provide an important tool for reducing payment fraud: The annual Payments Fraud and Control Survey conducted by the Association for Financial Professionals (AFP) continues to show that check fraud remains the predominant form of payment fraud—by a wide margin over various forms of electronic payment fraud.

Clearly, accepting electronic payments offers a number of financial advantages for real estate property managers. Furthermore, the growing popularity of electronic payments, along with emerging technology that is making the process of initiating such payments more flexible and convenient, has many renters expecting to be able to make their rent payments electronically.

But here’s where renter demographics make a difference. Many renters still prefer the paper check drop-off method of payment, but the ones who want to pay electronically may not want to pay through certain electronic payment channels. So how can a property manager determine what payment options a renter will appreciate the most, and which ones they should offer? A key factor is the age of the tenant or prospect.

Understanding resident preferences: Age matters

Houston-based J Turner Research conducts studies aimed at supporting marketing efforts in the apartment industry. The firm’s 2012 survey, “What Do Residents Want?,” looks at trends in resident technology and communication preferences. Specifically, the survey explores online apartment search patterns, behaviors and preferences across properties owned by 10 participating multifamily firms. Among other things, the study delves into how apartment tenants and prospects of different age groups use smartphones, tablets and other devices for researching and communicating with apartment operators and property managers, as well as patterns in their use of social media and online apartment rating and review sites.

In conducting its research, the company looks at the preferences expressed by tenants in the following generational demographic categories:

▪ Silent generation (Ages 66+)

▪ Baby boomer (Ages 45-65)

▪ Generation X (Ages 31-44)

▪ Millennial generation (Ages 18-30)

Here’s the basic premise of the J Turner Research generational studies, as explained in the 2012 “What Do Residents Want” study results:

“Understanding resident preferences is critical to successfully delivering the amenities and customer service that drive satisfaction at multifamily apartment communities.”

The J Turner Research studies don’t investigate specifically which payment methods that tenants of different age groups prefer. However, it seems clear that the generational demographic focus of the J Turner Research studies can be instructive for real estate property managers when applied to the issue of payment channels. Below we take a look at how tenants in each generational category view technology in general and today’s payment alternatives, and how their preferences can inform the decisions real estate property managers make about which payment channels to offer.

The Silent Generation

Seniors are more wedded to paper checks than any other generation. While every age group has its exceptions to the general rule, tenants and prospects in the Silent Generation, who have written checks all their lives, tend to be more comfortable with paper rather than electronic payments. They generally prefer to make rent payments by mailing a check or walking over a check to the property manager’s office.

We have already established that accepting check payments increases payment processing costs and is an impediment to efficient cash management. That being the case, how can a property manager afford to keep offering a paper check payment option to keep its senior tenants and prospects satisfied?

The key is for property managers to use banking services that enable them to post paper checks to their accounts quickly and/or turn them into electronic deposits. Some services that add efficiency to A/R management include:

▪ Property Management Lockbox. Property managers can direct tenants to mail their payments to a special post office box, where the remittances are collected multiple times a day by the lockbox bank and processed and posted to the property manager’s account. A bank lockbox service can eliminate so-called “desk float” or “administrative float,” where checks sit idle in a property manager’s office waiting a day or more until an employee has time to transport them to a local bank branch for deposit. Desk float slows cash flow and increases fraud risk.

▪ Remote deposit capture. With this service — provided both by banks alone and by banks in concert with some accounting software — a property manager can run check payments delivered to the office through a desktop scanner each day and deliver the check images to the bank for deposit. Remote deposit capture speeds the deposit process, which improves cash flow and saves staff time by eliminating the need to physically transport checks to the local bank branch.

Property managers catering to the Silent Generation also need to be aware that these days, some portion of the monthly rent for many seniors is being paid by their children. As a result, managers whose properties include a significant number of seniors may want to offer payment options that appeal to the children of the Silent Generation, who typically are Baby Boomers or members of Generation X.

Baby boomers and generation X

The younger that tenants are, the more comfortable they tend to be with electronic payment solutions. Some Baby Boomers still cling to paper, but many are moving to electronic bill payment. For instance, some are paying rent by allowing their property manager to initiate a monthly Automated Clearing House (ACH) debit of their bank account. Others are paying through a bank online bill payment service.

Online bill pay services accept payment instructions electronically; however, they often send a paper check to the property management company. Also, many online bill pay services consolidate payments from multiple tenants of the same property management company into a single check payment, which they send to the property manager with an itemized list of the individual tenant payments. Whether the property manager receives a check, or a check and a list, paper payments require manual effort to research and then post to the property manager’s A/R system. Even if the property manager receives such paper payments through its lockbox service, they often must be treated as rejects because they don’t have a remittance stub, creating the need for time-consuming research.

To address this challenge, some banks offer a remittance processing service solution. This service consolidates the property manager’s online bill payments and delivers them in their preferred electronic format, so the payments can post automatically to the property manager’s A/R system.

Members of Generation X are generally comfortable using bank online bill pay services, but they are even more likely than Baby Boomers to opt for a full electronic payment alternative using the Internet and possibly a mobile device. To meet this need, property managers can work with a bank to establish a branded portal on their company website. Payments initiated in this fashion are typically completed electronically using ACH or card payment options.

What millennials want

The youngest tenants, of the so-called Millennial Generation, are the most comfortable with electronic payment alternatives. In fact, it’s not an exaggeration to point out that some younger members of the Millennial Generation have never even written a check.

As a result, property managers targeting this large segment of potential renters should consider offering payment alternatives that take into account Millennials’ desire for flexibility and convenience, and their utter fearlessness when it comes to using web-based payment channels.

Millennials want to make rent payments on their own terms — when and how they want, which usually means over the Internet. But that doesn’t mean with a desktop computer. They are more likely to want to pay with a smartphone, tablet or some other mobile device. Often they want the option to use a mobile device to access a payment page at the property manager’s website.

Other Millennial preferences around rent payments include:

▪ They want a no-hassle, automatic process that registers them, at the time they sign thelease, to make rent payments at a web portal.

▪ Each month, when it’s time to make a rent payment, they want to be alerted, via text message or e-mail (not by paper mail).

▪ They want the alert to offer a link to the payment page, so they don’t have to visit a separate website and execute a separate log-in. In other words, they want a seamless process.

▪ When making payments, they prefer an intuitive, easy-to-use payment site unencumbered with advertising messages or graphics.

A property management payment portal is the ideal solution for the most technologically savvy generation. Banks provide a URL or link to the manager’s website that allows the tenant to securely access and review rent statements, choose between a checking account debit or a credit card for paying the rent, and set up reminders. All this can be accessed through the Internet or the mobile web.

Millennials also are comfortable with social media playing a part in the rent payment process. In response, property managers have established Facebook pages that offer electronic payment services to tenants. Tenants can “like” the offering to indicate their interest and even click on a link to visit the property manager’s payment portal and start making electronic payments.

Efficiency and marketing success

Maximizing the use of electronic payments helps property managers achieve greater accounts receivable management efficiency. At the same time, understanding generational payment method preferences can help them be more effective marketers and provide a competitive advantage, and in that way contribute to the bottom line.

As a customer retention strategy, property managers can analyze their existing tenant base and offer the payment channel offerings most likely to satisfy their residents, based on generational demographics. Additionally, those who are looking to attract more tenants of a particular generation can do so by highlighting in marketing communications the availability of that generation’s preferred payment methods.

It’s easy to fall into the trap of continuing to “do things the same way we’ve always done them.” But demanding that tenants pay a particular way, whether it’s by mailing a paper check or using a web-based payment portal, is likely to be ineffective from a marketing standpoint, because it fails to take into account age-based preferences. A more effective strategy for most property managers would be to offer a full array of cost-neutral payment options, including various electronic alternatives, as a way of promoting both tenant satisfaction and A/R management efficiency.

Consult with your treasury management bank

The payment alternatives that property managers choose to offer can impact their working capital management, ability to minimize payment fraud and overall marketing success.

Keeping up with the latest technology-based payment methods is a challenge. But your treasury management bank can help you analyze your tenant base and marketing goals so that you can select the best payment methods to offer.

Nancy Pierce is senior vice president and manager of the treasury management, product management group for Capital One Bank.

Must Have Numbers for Evaluating Your Real Estate Investment

As prices on Real Estate have been steadily rising, Investors should always know their numbers to correctly evaluate their investment.  Do you know your numbers?

Taken from Michelle Lerner in Investopia, May, 2011:

Rock bottom real estate prices are enticing some novice real estate investors into the market. But before you join the ranks of landlords, be sure you have a strong grasp of the financial information that can make the difference between becoming the next Donald Trump and finding yourself in bankruptcy court. Here are eight real estate investing numbers you need to know.

TUTORIAL: Exploring Real Estate Investments

1. Your Mortgage Payment
For a standard owner-occupied home, lenders typically prefer a total debt-to-income ratio of 36%, but some will go up to 45% depending on other qualifying factors such as your credit score and cash reserves. This ratio compares your total gross monthly income with your monthly debt payment obligations. For the housing payment, lenders prefer a gross income-to-total housing payment of 28 to 33%, depending on other factors. For an investment property, Freddie Mac guidelines say that the maximum debt-to-income ratio is 45%. (For more check out Simple Ways To Invest In Real Estate.)

2. Down Payment Requirements
While owner-occupied properties can be financed with a mortgage and as little as 3.5% down for anFHA loan, investor mortgages typically require a down payment of 20 to 25% or sometimes as much as 40%. None of the down payment or closing costs for an investment property may be from gift funds. Individual lenders will determine how much you need to put down to qualify for a loan depending on your debt-to-income ratios, credit score, the property price and likely rent.

3. Rental Income to Qualify
While you may assume that, since your tenant’s rent payments will (hopefully) cover your mortgage, you should not need extra income to qualify for the home loan. However, in order for the rent to be considered income, you must have a two-year history of managing investment properties, purchase rent loss insurance coverage for at least six months of gross monthly rent and any negative rental income from any rental properties must be considered as debt in the debt-to-income ratio. (Besides creating ongoing income and capital appreciation, real estate provides deductions that can reduce the income tax on your profits. Check out Tax Deductions For Rental Property Owners.)

4. Price to Income Ratio
This ratio compared the median household price in an area to the median household income. Before the housing bubble burst, the price-to-income ratio in the U.S. was 2.75, while at the end of 2010 the ratio was 1.71. The average between 1989-2003 is 1.92 according to Fiserv, Inc., Federal Housing Finance Agency, Moody‘s Analytics.

5. Price to Rent Ratio
The price-to-rent ratio is a calculation that compares median home prices and median rents in a particular market. Simply divide the median house price by the median annual rent to generate a ratio. At the peak of the U.S. market in 2006, the ratio for the U.S. was 18.46. The ratio dropped to 11.34 by the end of 2010. The long-term average (from 1989 to 2003) was 9.56. As a general rule of thumb, consumers should consider buying when the ratio is under 15 and rent when it is above 20. Markets with a high price/rent ratio usually do not offer as good an investment opportunity. (Thinking of buying a home? We look at the initial and ongoing costs as well as the benefits. Check out To Rent or Buy? The Financial Issues.)

6. Gross Rental Yield
The gross rental yield for an individual property can be found by dividing the annual rent collected by the total property cost, then multiplying that number by 100 to get the percentage. The total property cost includes the purchase price, all closing costs and renovation costs.

7. Capitalization Rate
A more valuable number than the gross rental yield is the capitalization rate, also known as the cap rate or net rental yield, because this figure includes operating expenses for the property. This can be calculated by starting with the annual rent and subtracting annual expenses, then dividing that number by the total property cost and multiplying the resulting number by 100 for the percentage. Total rental property expenses include repair costs, taxes, landlord insurance, vacancy costs and agent fees.

8. Cash Flow
If you can cover the mortgage principal, interest, taxes and insurance with the monthly rent, you are in good shape as a landlord. Just make sure you have cash reserves in hand to cover that payment in case you have a vacancy or need to cover unexpected maintenance costs. Negative cash flow, which occurs most often when an investor has borrowed too much to buy the property, can result in a default on the loan unless you are able to sell the property for a profit.

TUTORIAL: 20 Investments: Real Estate & Property

The Bottom Line
Once you have made all these calculations, you can make an informed decision about whether a particular property will be a valuable investment.

Refusing to Rent Units with Lead Paint to Children…

A good reminder that discrimination can be costly.  What do you think?

Taken from a post by Fred Hemmila, Lead inspector in Massachusets.

Subject: Melrose Landlord and Property Manager Ordered to Pay More Than $38,00
Melrose Landlord and Property Manager Ordered to Pay More Than $38,000 for Discriminatory Craigslist Ad
Court Judgment Requires Defendants to Delead Unit, Attend Fair Housing Training
BOSTON – A Melrose landlord and property manager have been ordered to pay more than $38,000 in a housing discrimination case that resulted from posting a Craigslist advertisement indicating their unwillingness to rent to families with children because of the lead status of a rental unit, Attorney General Martha Coakley announced today.
Last week, a civil judgment was entered in Suffolk Superior Court against landlord Nicholas Keramaris and MT. V.M. Realty Trust (MT. V.M.) – the owner of a 20-unit rental property in Melrose – who were found to have violated both the state anti-discrimination law and consumer protection law by posting an advertisement on the popular classified advertising website Craigslist.org stating that an apartment “is not deleaded, therefore it cannot be rented to families with children under six years old.”
“Massachusetts law is very clear – landlords cannot avoid their obligations under the state’s lead paint laws by refusing to rent to families with young children,” AG Coakley said. “This judgment demonstrates that there are serious consequences for violating anti-discrimination laws.”
In 2010, the AG’s Office filed a complaint against Keramaris and MT. V.M., alleging that their advertisements were discriminatory against families with young children. Under Massachusetts law, it is illegal to refuse to rent or steer families away from rental properties because they have young children whose presence triggers an owner’s duty to eliminate lead hazards that pose serious health risks.
The Court has ordered Keramaris and MT. V.M. to pay a civil penalty of $10,000, and more than $28,000 in attorneys’ fees and costs. They have also been ordered to cease from posting any discriminatory advertisements, and delead the next two-bedroom apartment in the building that becomes available for rent that is not yet deleaded. Additionally, both Nicholas Keramaris and George Keramaris, the trustee, are required to attend fair housing training.
Attorney General Coakley’s office works to ensure that the civil rights and liberties of visitors and residents of the Commonwealth are protected. Under federal and state fair housing laws, it is illegal to discriminate against an individual or a family seeking housing because of a person’s race, color, religion, sex, familial status (e.g., children or marital status), national origin, or handicap/disability. Since 2007, the AG’s Office has handled more than 130 housing and lending discrimination cases, resulting in more than $2.6 million in relief to Massachusetts residents.
This matter was handled by Jonathan B. Miller, Chief of AG Coakley’s Civil Rights Division, with assistance from Andrew Koster, an Assistant Attorney General in AG Coakley’s Trial Div.

Immigrant bill could allow Canadians a longer stay…

From a recent Article in the Arizona Republic regarding the Immigration bill currently being considered in Congress.  Though many around here like to complain about “snowbirds” this would definitely have a positive impact on our business and the overall economy.  What do you think?
July 22, 2013 9:17 AM

Every fall, Canadian snowbirds Lyle Pederson and his wife make the trek to Arizona, trading the bitter cold for sunny skies.

This year, they stayed a little longer, returning north in May. And while they plan to come back this fall, the 180-day limit for Canadian snowbirds to stay in the United States each year means the Pedersons are counting their days, and carefully.

“It’s an issue for all the Canadian snowbirds who go down to Arizona in the winter,” Lyle Pederson said.

Fortunately for them, a provision tucked in the immigration-reform bill passed by the U.S. Senate would allow many Canadian retirees to stay south of their border up to 60 days longer per year — a total of 240 days rather than 180 days.

Arizona tourism and economic officials have lauded the provision, which was incorporated into the bill’s Jobs Originating Through Launching Travel Act, to ostensibly boost travel and tourism to the United States.

With its balmy winters and affordable housing, Arizona has one of the largest markets for overnight stays among Canadian travelers, tourism officials say.

In 2012, Arizona ranked third, after Florida and California, in the number of nights that Canadians spent in the state, according to data from Statistics Canada.

Benefits, drawbacks

Extending the time for Canadians to stay, shop and dine here means more dollars flowing into Arizona’s economy, not to mention the extra tax-related revenue for the state and local governments, according to state tourism officials.

“Any opportunity that makes it possible for visitors to extend their stay in Arizona is always going to be good for our state,” said Kiva Couchon, spokeswoman for the Arizona Office of Tourism.

In 2011, Canadians spent an estimated $816 million in Arizona, said Evan Rachkovsky, a research officer for the Canadian Snowbird Association.

Nearly 704,000 Canadians spent an average of $1,126 per visit during that year, according to the most current figures from the Arizona Office of Tourism.

The impact of the provision on the state’s economic well-being “would be phenomenal,” Rachkovsky said.

“It’s hard to see any downside to letting snowbirds spend more time in the country,” said Pederson, who operates websites for snowbirds and promotes RV resort parks in the Southwest.

For some Canadians, the big issue “is not so much wanting to spend more than six months in Arizona but wanting or needing some days to allow for summer travel to and through the U.S.,” Pederson said.

There are drawbacks. As it stands now, some Canadians would lose their provincial health coverage if they stayed in the United States longer than six months a year, said Dale Walters, a partner and chief executive officer of KeatsConnelly, a wealth-management firm for Canadians and Americans that has offices in Arizona, Florida and Calgary, Alberta.

“Basically, there are different rules depending on what province you live in,” Walters said.

The Toronto-based Canadian Snowbird Association has successfully lobbied British Columbia and Manitoba to extend the limit on their residents to seven months, from six months, Rachkovsky said.

Residents from those provinces, as well as from Ontario and Newfoundland and Labrador, can be away for longer than six months and retain health benefits, he said.

Meanwhile, residents of Alberta — who logged the most visits to Arizona out of all Canadians in 2011 — are still limited to half a year.

The Canadian Snowbird Association is lobbying officials in Alberta to change that, Rachkovsky said.

Tourism boost

Under current language, only Canadian citizens age 55 or older and their spouses would be eligible for the extension.

They would have to maintain a Canadian residence and own or rent a U.S. residence, according to the legislation.

Arizona tourism officials say that the positives would far outweigh any negatives.

In Scottsdale, which relies heavily on tourism for tax dollars, Canadians make up the largest international-visitor market, said Rachel Pearson, vice president of community and government affairs for the Scottsdale Convention and Visitors Bureau.

The Senate’s legislation “would provide a wonderful opportunity for additional Canadian visitors to come to Scottsdale, as well as keep many of our current visitors in Arizona longer,” Pearson said.

In 2011, more than 14 percent of all overnight Canadian visitors stayed in Arizona for at least 31 days.

Glenn Williamson, founder and chief executive of the Canada Arizona Business Council, called the provision “a great thing for Arizona and Canadians that want to spend more time in the state.”

“During the recession, Canadians were the largest international group buying houses in the state,” he said. “Now that it has slowed down, they are going to want to use them, more especially to come down and go to the hockey games.”

How are you Aging?

Received this information from the National Care Planning Council and thought it was interesting.

Healthy Aging – Physically, Mentally and Financially.

The month of September brings a welcome relief from the hot summer days. Cool breezes and colorful foliage appearing on the trees entice one to walk and bask in healthy fresh air.

September has also been designated as “Healthy Aging Month” with encouragement to seniors to renew their attitudes towards better eating, exercise, and mental stability. With the nation’s senior population growing there is more focus on programs to help seniors remain healthy and active as they age physically, mentally and emotionally…read the entire article by going to the link below

Please go to the following URL for the entire article and previous articles: http://www.longtermcarelink.net/a13information_article.htm

Medical Marijuana Notice

The following is this Office’s policy on the Medical Marijuana issue here in Arizona, Courtesy of Our Attorney Andrew Hull.

NOTIFICATION OF ENFORCEMENT OF CRIME FREE ADDENDUM TO RENTAL AGREEMENT

To:  All Residents

Arizona recently passed a Medical Marijuana law that permits the limited use of Medical Marijuana in specific and limited circumstances.  The State of Arizona has adopted, or is in the process of adopting,  rules that govern the manner of establishing the regulations for the use of medical marijuana.

Despite Arizona’s new law, the federal Controlled Substance Act (CSA) categorizes marijuana as a Schedule 1 substance and the manufacture, distribution, or possession of marijuana is a federal criminal offense.  See 21 U.S.C. § 801 et seq.   Furthermore, the U.S. Department of Housing and Urban Development has sent out a Memorandum that specifically states that the use of marijuana for medical purposes violates federal law and that federal and state nondiscrimination laws do not require landlords to accommodate requests by current or prospective residents with disabilities to use medical marijuana.  See Medical Use of Marijuana and Reasonable Accommodation in Federal Public and Assisted Housing dated January 20, 2011.

This property has determined that the use, possession, distribution or manufacture of marijuana has been determined to interfere with the health, safety, welfare and right to peaceful enjoyment of the premises by other residents.  As such, the management hereby informs and reminds all tenants that they signed a Crime Free Addendum when they moved in and, pursuant to that addendum and the supporting federal laws,  any use of marijuana (medical or otherwise) by the tenant or their guests will result in an immediate termination.  If you have any questions or concerns about this policy, please speak to management

Thank you.