“Us and Them”   As we approach our ninetieth birthday, we should reflect on why the SFAA is unique and distinct from the other “property rights” groups in our community.  Indeed, we are not alone:  Both in the City as well as the region, there are competing landlord organizations and apartment associations striving for your membership.  The SFAA can neither ignore, nor disregard, the fact that it must share the pond with other fishes.  Thus, the inevitable question posed on the eve of this celebration is what makes us unique from these other apartment associations, and are we the most deserving of your membership dollar?  

Some will argue that the SFAA is not aggressive enough in the effort to strengthen and restore property rights.  This contingency claims that a better SFAA would be unyielding in its position, seeking absolute abolishment of rent control without any serious recognition of the enormous and powerful tenant lobby in both our local and state electorates.  To them, the war is a simple “black and white” battleground.  

While I can understand the genesis this viewpoint given the ongoing erosion of basic property rights, I could not disagree more with those who advocate for such a hard line political stance.  Rather, I see SFAA’s primary strength as its ability to craft compromises and settlements in order to avoid catastrophic legislation and rulings.  If anyone believes that the environment cannot worsen for us, please think again.  Many never see, or conveniently ignore, the “proposed” or “almost passed” laws, and instead choose to focus on the end result.  Consequently, these critics attribute any pro-tenant bill to an inability to succeed at City Hall or at the Capitol.  Such presumptions belie reality.   

What should be lauded is SFAA’s ongoing ability to work with almost every Supervisor, and to garner the respect of just about everyone at City Hall.  This hard-earned respect translates into the local government’s willingness to incorporate the housing industry’s most important needs into an otherwise overly hostile and anti-ownership climate.  In the absence of such cooperation, the results would truly be dire:  erosion of Costa-Hawkins, imposition of the elected Rent Board, elimination of capital pass-throughs, and heightened penalties for code violations are just a few examples of what skillful politicking has managed to avert during the past few years.  

So to those who say we should declare war on 100 Van Ness Avenue, I say phooey.  With the voters aligned against us, such tact is tantamount to suicide.  When you are in the minority, the focus must lie in fostering relationships with those in power, not attacking them.  The later, for sure, would easily ensure that our pro-tenant adversaries will lock down this industry in such a manner that we would long for the glory days of 2007.  

There is also the fact that we are a nonprofit organization.  This is significant because every dollar you spend goes directly to what matters most:  rental housing education classes, development of forms, a better presence at City Hall, and litigation to dissipate unconstitutional legislation.  No person or groups profit from the SFAA.  To the contrary, many of us contribute endless hours of our day to the betterment of this organization, which ultimately translates to the improvement of the industry’s standing in the community.  The staff is paid modestly, as I can truly report that their skill set, coupled with the genuine effort they tirelessly put forward each and every day, would pay them more in the for-profit sectors of our economy.  From the Executive Director on down, the people you have working for you are, without doubt, first class and of admirable character.  Most importantly, their enthusiasm for their work is second-to-none, and even in the face of defeat they eagerly embark upon the next challenge.  

The second blessing comes from our volunteers.  Every month, you can attend the educational classes, priced modestly so as to cover the cost of the room rental, taught by leaders in the industry.  For example, you can learn property management and landlording skills from professionals who exact a premium for their services.  Incredibly, these eager volunteers are just that:  they give without charge month after month after month.  At every general membership meeting, attorneys who command hourly rates well over $300 answer your questions for free.  The annual trade show brings in substantial vendors, eager to help you navigate the rough seas of the industry.  No one but you really profits from these efforts.  

In the end, you must choose where you want to devote your time and financial resources.  You should, in essence, judge the SFAA and decide whether or not its structure comports with how you believe the industry should be positioning itself.  Unquestionably, we can rightfully conclude that the ongoing assault against our rights remains unabated.  To this end, every year brings another law or court decision that smacks of an unjust taking.  Yet how we respond to this reality will determine tomorrow’s success or failure.  If we wage an all-out assault against our foes, do we undermine our own effectiveness and relevancy?  Or, as suggested above, is the better avenue towards an even playing field defined by ongoing efforts to educate the adversary while, at the same time, build a political base that is able to successfully advance the industry’s agenda in a town comprised mostly of tenants?  To do the later, I submit that negotiating, effective long-term coalition building, and skillful lobbying will trump the overly aggressive stance some of the other apartment association organizations have employed over the past decade.  

In sum, the temptation to resort to strong arm tactics is overwhelming in the wake of the ongoing assaults we are confronted with year after year.  The ability to show restraint, coupled with well-planned strategy, is what separates ineffective from effective organizations.  You, as the consumer, need to decide what methodology better serves your interest.  

In closing, I would like to acknowledge our industry partners who truly compliment the efforts of SFAA.  Without their participation, many, if not most, of our successes could not have been attained.  First, the Greater San Francisco Association of Realtors should be lauded for its efforts aimed at stemming abusive legislation and erroneous court decisions.  The GSFAR, comprised of San Francisco Realtors, has always participated in the housing industry’s political and legislative battles.  No one can seriously argue that the purchase and sale of highly valued San Francisco real estate would halt even with the passage of the most extreme forms of rent control, so the Realtors’ partnership with us is truly genuine and not merely motivated by profit.  

Second, we should be thankful to the Coalition for Better Housing, or CBH.  This non-profit group consists mainly of large apartment building owners, managers, and developers.  CBH’s ability to raise funds for elections and legislative battles is unparalleled.  To this end, very few politicians run for major office without first testing their candidacy with CBH.  

Third, for those in the property management industry, the Professional Property Managers Association, or PPMA, has been a fixture in the City for 25 years.  Each month, property managers can inform themselves of the latest in laws, know-how, and tools of the trade at the PPMA lunch meetings.  Like the Realtors and CBH, PPMA fights alongside with us at every election and throughout the year.   With your SFAA membership, you also become members of the California Apartment Association, or CAA.  Once a minor player in Sacramento affairs, CAA today is one of the most important lobbying organizations in the State.  As the property rights battle shifts more and more from local debate to statewide showdowns, CAA’s muscles will become increasingly beneficial.  Not surprisingly, almost every major urban area in California has a CAA-affiliated apartment association, and SFAA is proud to be a part of this impressive alliance.  

So the next time you receive a solicitation in the mail or on-line, think about where your efforts will be best placed.  We all would relish the day that these onerous restrictions dissipate, yet the realistic achievement of this objective will be attained only with the right strategy and planning.  Stated succinctly, long term victory will not be accomplished by the short term aggression some of our competitors claim we should embrace.  SFAA, and its industry partners, consistently display the requisite restraint and skillful politicking, and, while only time will tell for certain, this is the road I submit will lead us to where we need to be.  

DW