Apartment firms are reminded that a number of significant tax increases impacting the industry, which were enacted in 2010 as part of health care reform legislation, are scheduled to take effect beginning in 2013. Two of the most important changes, which affect both apartment firms and employees, concern the Medicare tax rate and applicability.

The Phoenix metro area in third quarter 2012 recorded its lowest apartment vacancy rate since third quarter 2006. Third quarter 2012 also saw the planning and zoning pipeline of new apartment development increase fivefold since third quarter 2010 and continued declines in concession offerings compared to one year ago. Third quarter 2012 marks the first time in six quarters in which asking rents were higher than those observed in the same period of the prior year.

RENTS

Effective rent and occupancy levels during October 2012, which showed declines of -0.28% and -0.14% respectively, were almost the same as the slight declines recorded over the same period of 2010 and 2011, according to the latest data reported by Axiometrics Inc., the leading provider of apartment data and market research.

As part of the financing of Obama Care, Congress created Internal Revenue Code Section 1411, which created a new 3.8 percent Medicare tax. The new Medicare tax will take effect on January 1, 2013, and will apply to net investment income of individuals with a modified adjusted gross income of at least $200,000 ($250,000 for couples filing jointly). The tax will apply to the lesser of (1) the taxpayer’s total “net investment income” for the year, or (2) the amount by which the individual’s total income exceeds $200,000 (or $250,000 for married couples filing jointly).

By: Jay Harris, Vice President of Business Services, CoreLogic SafeRent

The Multifamily Applicant Risk Index (MAR Index) Report indicates an increase in national renter credit quality and applicant pool quality for the second quarter 2012 and now includes renter trends. The third quarter MAR Index value decreased two points from the second quarter 2012 and increased two points from a year ago, indicating a modest increase in national renter credit quality and applicant pool quality.

Here is how Seattle-Tacoma-Bellevue, WA performed in the second quarter compared to last year:

Plan begins with demonstration fiber project in 12 Seattle neighborhoods

Oregon point-in-time count shows 8.3 percent decline in homelessness from 2011 to 2012

On a single night in January, 2012, 633,782 people were homeless in the United States, largely unchanged from the year before. In releasing HUD's latest national estimate of homelessness, U.S. Housing and Urban Development Secretary Shaun Donovan noted that even during a historic housing and economic downturn, local communities are reporting significant declines in the number of homeless veterans and those experiencing long-term chronic homelessness.

Q. Some of my tenants use a lot of extension cords and power strips. Is this safe, and are there ways I can help them use electricity in their homes more safely?

A. Safety is a core value at Portland General Electric, and we have plenty of suggestions about helping your tenants stay safe. You are correct: There are approved ways to use extension cords and power strips and there are ways that present potential hazards. Let's start there and move on to other safety tips that you can share with residents.

Practice cord management

The Multifamily Applicant Risk Index (MAR Index) Report indicates an increase in national renter credit quality and applicant pool quality for the second quarter 2012 and now includes renter trends. The third quarter MAR Index value decreased two points from the second quarter 2012 and increased two points from a year ago, indicating a modest increase in national renter credit quality and applicant pool quality.
Here is how Portland-Vancouver-Beaverton, OR-WA performed in the second quarter compared to last year:
• Portland-Vancouver-Beaverton, OR-WA: 2Q12 MAR Index = 115

One loan to develop Center for the Arts Plaza in downtown and second form loan pool to assist business or development projects in citywide

The U.S. Department of Housing and Urban Development recently announced that it has approved two Section 108 loan guarantees totaling $2,960,000 sought by the City of Gresham.