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The Apartment Owners Association of California, Inc. started this petition to Governor Gavin Newsom To our Governor, United States and State Senators and Representatives, Mayors of all California cities, City Council Members and County Supervisors: PRAY! To those of you who pray, we hereby ask you to pray to God for wisdom and understanding; for help in reacting and asking others to react properly to the coronavirus and the housing crisis; for a good and accurate understanding of the needs of those who consume housing and those who provide housing, as well as those who provide services through their small businesses. As our President has requested, pray, pray and pray! Petition As a result and only because of recent laws and orders that have been put into effect, the undersigned do hereby petition you to do all you can to immediately support a twelve-month mortgage, utilities and tax moratorium. We urgently implore you to pay the rent for all tenants that the government classifies being eligible to stay and not pay! Wrong Solutions Please consider that the government’s current solutions (laws and orders) to this virus may be worse than the problem. Have we transformed a virus crisis into a social and economic crisis, with consequences more severe than the virus itself? Could our reaction to this virus cause a severe recession or even a depression? We do know that suspending evictions will create a more severe housing crisis. When people lose their income from their business and/or their job, they can, and many will, also lose their homes, cars, marriages, and their health. They not only cannot pay the rent, they can’t put food on the table for their kids. Neither can housing be provided for very long without rental income. “Society and friends” will not take care of them or us – i.e. witness the homeless. Think About This Would you pass a new law that would allow our needy citizens to go into a grocery store, fill up their carts, check out, and then walk out without paying? Oh, don’t forget they will be required to pay the full amount for that grocery bill when they go back to work. A six-month repayment plan will be worked out. Sure! Let’s Not Be Gullible Anyone who thinks these currently needy citizens will pay for those groceries or past due rent at a later date was born yesterday. They will now just move on and buy their food from a different grocery store! You can just hear them saying, “That food was free. I had no savings or extra money then and I do not have it now. How do they expect me to pay for that free food and rent either now OR later?” Why Have You Done This to Us? This is exactly what you have allowed to happen to the rental housing industry that was already in a “crisis”. Laws have been passed that allow renters to walk into a privately-owned building, live in and enjoy the apartment, and ring up a huge bill for back rent that they will never be able to pay. Even if they were allowed to spread out the payments over a ten-year period, our experience has proven that they will just choose not to pay the housing provider. That is a proven fact! Experienced housing providers know this to be true. It seems that inexperienced politicians do not have this knowledge or do not care. We ask you to care. Let government pay their rent. Better yet, allow us to take care of our renters without your interference in our business. We have done a pretty good job in the past without your laws that continue to drive up the cost of housing! We do thank you for exempting property management from the stay-at-home rules and recognizing housing providers as essential. This will help solve the housing crisis. Change the Eviction Laws? The eviction laws were already badly flawed and have now been changed to give an excuse to even rich tenants not to pay their legally due rent. Many renters have money in the bank or can borrow from family or friends. Housing providers are not in the lending business! The government should loan the rent money to tenants, not the housing providers who are already doing their part. All taxpayers normally pay for this type of welfare. Individual Financial Burden Please consider that this financial burden should not be passed on to only individual housing providers who, for many years, have already solved a large portion of the housing crisis. Many housing providers also live from paycheck to paycheck, or from monthly rental income. How about a moratorium on our property taxes? Bills have to paid; like the mortgage, utilities, insurance, maintenance, manager, gardener, trash, painter, plumber, electrician, and on and on. Who do you think will pay these people when the rent is not paid? In addition, many owners are still paying for the soft story earthquake retrofits. This can amount from $50,000 to hundreds of thousands of dollars that are now being paid (in addition to all the other bills!) Have mercy! Consider a twelve-month delay in requiring this work to be completed. Please Take Immediate Action We are in the business of providing housing and keeping our renters happy. We know we have to share the burden of this virus. Help us out! Pass a moratorium so that we can defer our mortgage payments, property taxes and utility bills and then we can defer the rent for the renters who need our help. We’re asking that Government share the burden and allow housing providers to also defer our expenses. Please Consider: Reinstituting laws that require rental payments to be paid when owed to any individual housing provider. Have the government loan housing consumers the money or pay their rent for them instead of putting the whole burden on individual housing providers. OR, pass a moratorium on expenses that owners are required to pay so we can pass on the benefits to our housing consumers. Better yet, allow our old American Economic System of Free Enterprise to work and together we can solve this problem, along with getting rid of all the panic and fear that the news media has generated. Prayer Pledge Those of us who pray hereby pledge to you to pray for our tenants, political leaders, those affected by the virus, and other disease(s) that are taking even more lives, healthcare workers and the homeless. Leadership Needed With your leadership, commitment to the housing industry and immediate actions of fairness, we look forward to serving our customers and being a huge part of the solution for our housing crisis. Thank you for your consideration. DONATE TO AOA POLITICAL ACTION COMMITTEE A lot of people are asking how they can donate to the AOA Political Action Committee to help fight for landlord rights. You may donate online to www.aoausa.com/pac You may also donate with a check or money order payable to: The AOA PAC and mail to: 6445 Sepulveda Blvd. Suite 300 Van Nuys, CA. 91411 Professional Property Management is happy to receive Referrals! If your property is already listed, please disregard this solicitation. 

March 2020 Updated April 6, 2020 Email:ppm4rent@aol.com Telephone: 510.758.5636 Coronavirus Aid, Relief, and Economic Security Act (CA RES Act) 1. Unemployment a. $600 per week per recipient for up to 4 months b. Extended UI Benefits to Self-Employed Workers 2. Recovery Rebates a. Use 2019 tax return or 2018 if 2019 has not been filed to determine rebate. b. $1,200 per adult and $500 per child. c. Income limits apply with taxable income over $75,000 (single) and $150,000 (married), $112,500 (head of household). 3. Estimated Tax Payments a. Any required estimated tax payment that are required during March 27, 2020 through October 15, 2020 shall be due October 15, 2020 as one payment. b. Therefore, taxpayers should add the 1st, 2nd and 3rd estimated tax payments and make one payment on October 15, 2020. The 4th quarter payment due January 15, 2021 is still due. THIS SECTION DID NOT MAKE THE FINAL BILL. ESTIMATE PAYMENTS ARE DUE April 15th , June 15th, October 15th and January 15, 2021. 4. Temporary Waiver of Required Minimum Distribution Rules a. Required Minimum Distribution (RMD) will not be applied for calendar year 2020. THIS SECTION DID NOT MAKE THE FINAL BILL. RMD still need to be made for 2020. 5. Delay of Estimated Tax Payments a. Any estimate that was due between March 27, 2020 to October 15, 2020 is now due on October 15, 2020 as one payment. b. Therefore, estimate tax payments for calendar year end taxpayers that are due April 15th, June 15th, and September 15th are now due October 15, 2020. c. Therefore, estimated tax payments for fiscal yearend taxpayers that have estimated due between March 27, 2020 – October 15, 2020 are all due October 15, 2020. THIS SECTION DID NOT MAKE THE FINAL BILL. ESTIMATE PAYMENTS ARE DUE April, 15th, June 15th, October 15th and January 15, 2021. 6. Qualified Charitable Contributions (effective for 2020 tax year) a. Contributions up to $300 will be allowed to be taken against taxable income prior to standard deduction or itemized deduction. b. Temporary suspension of limitations on certain cash contributions. c. Therefore, taxpayers will not be limited by 50% of their income on charitable contributions. d. Corporation contributions would be allowed 25% of taxable income as qualified contribution expense. 7. Retirement Funds a. Distributions from retirement plan as a result of effect of COVID-19 can be repaid within 3 years or the income can be recognized over 3-year period. b. Limit on withdrawals is $100,000 c. Coronavirus-related distribution is defined as: i. Anyone diagnosed with COVID-19 ii. Spouse or depended is diagnosed with COVID-19 iii. Experienced financial consequences as a result of quarantined, furloughed or laid off due to such virus or disease d. Loans from Qualified Plans i. Any loan from a qualified employer plan to a qualified individual shall substitute $100,000 for $50,000 when applying Sec 72(p)(2)(A). ii. Therefore, employees are allowed to take $100,000 in loans during 180-day period beginning March 27, 2020. iii. Delay of repayment on loan from qualified plans shall be delayed for 1 year. 8. Employee Retention Credit a. Credit will be allowed against employer’s employment taxes equal to 50% of the wages paid to each employee for the calendar quarter. b. Applicable employment taxes are FICA and Medicare taxes owed by employer. c. Eligible Employer: i. Employer is fully or partially suspended during the calendar quarter due to order from government authority limited commerce, travel, or group meetings due to COVID-19 ii. Significant decline in gross receipts – 50% less gross receipts for 1st quarter of 2020 and 80% less gross receipts for quarter following the 1st quarter of 2020 d. This credit can be claimed by tax-exempt organizations. 9. Net Operating Losses a. Net Operating Losses recognized after December 31, 2017 to January 1, 2020 shall be carried back to each of the 5 years preceding the taxable year of such loss b. The tentative carryback and refund for tax years 2018 and 2017 is timely filed if filed not later than 120 days from enactment of this act or July 25, 2020. c. Amendment is made for Tax Code section 172 to allow the carryback of NOL from 2018, 2019, and 2020. 10. Delay of Payment of Employer Payroll Taxes a. Employer payroll taxes (FICA and Medicare) will be allowed to be deferred b. Employee portion including withholding are still subject to deposit and payment requirements. c. Deferral i. 50% of employer payroll taxes need to be paid by December 31, 2021 ii. Remaining balance of employer payroll taxes need to be paid by December 31, 2022 d. Employer payroll taxes incurred from March 27, 2020 to December 31, 2020 can be deferred. e. No penalties will be issued on late payroll deposits for the employer portion payroll taxes. f. Late deposit penalties will be issued for late deposit of employee withholding and employee FICA taxes. 11. Small Business Act Loans - Forgiveness a. Allows SBA covered loan program to be available to: i. Eligible self-employed individuals ii. Insured Credit Union iii. Non-Profit Organizations b. Amended allows the above to participate in the paycheck protection program which include paycheck protection loans. c. Organizations with less than 500 employees d. Maximum loan amount is 2.5 times the amount of average payroll costs incurred during the 1-year period before the date the loan is made. i. For example – Average payroll costs is $50,000, loan would be $50,000 time 2.5 equaling $125,000. e. Loan would be non-recourse with no personal guarantee and receive a risk weight of zero percent. 12. Small Business Act - Emergency Grants a. Grants up to $10,000 are available to businesses, non-profits, ag co-ops, that apply for SBA loan. b. The grant is to be used for providing paid sick leave, maintaining payroll, meeting increased costs of materials, rent or mortgage payments, and repaying obligations that cannot be met due to revenue loss. c. The CARES Act allocated $10,000,000,000 to this and once the funds are gone the grants will not be given. However, SBA loans will continue to be issued. d. To apply for the grant, you submit a SBA Loan application and required documentation timely. 13. SBA Loan forgiveness a. Loan made by SBA between March 1, 2020 – June 30, 2020. b. Loan was used to cover payroll costs, healthcare costs, interest on mortgage/debt payments, rent, and utilities c. Forgiveness would be considered Cancellation of Debt income however would not be taxable in the year of forgiveness. d. SBA Loan application shall include documentation verifying the number of full-time equivalent employees on payroll and pay rates including payroll tax returns, state payroll returns, debt obligation documents and any other documents SBA deems necessary. Information and Resources for Residents In these times of uncertainty, we look to stay connected and share relevant news and information with our residents. Our purpose at PPM: creating communities where people thrive. Now, more than ever, we find ways to support each other, as we navigate this road together. This web page was created as a resource for our residents, and includes our recent Covid-related communications, along with helpful links to outside resources in areas of Community Support and Financial Support. Please let us know what else we can do to further support you. Important Maintenance Guidance Emergency maintenance requests only As a reminder, we are temporarily deferring non-emergency maintenance requests in order to limit in-person contact and allow us to focus on urgent matters. Emergency requests include issues related to: Life safety Security Heating and air conditioning Appliances not working Important lighting and outlets Clogs, leaks, water supply or temperature Pest control If you’re interested in handling simple, non-emergency tasks on your own, please let us know. We can help you remotely and deliver any supplies you may need to complete the task (eg. plunger, zip-it hair removal drain tool). Please remember: Don’t overfill your refrigerator or freezer. Refrigerators and freezers will shut down if they’re over packed and don’t have proper air circulation. Don’t flush paper towels or wipes down the toilet. You’ll clog the toilet. Please have a plunger handy in case of clogs. Proper garbage disposal. Please separate recycling material from garbage where recycling options are provided. If you have a trash chute at your building, please use the correct chutes for disposal. Make sure garbage bags are tightly sealed. If recycling material is too large for the recycling chute or bin, please bring it to the main trash room or dumpster. Stay-at-Home Orders California State Level Alameda County City of Berkeley Contra Costa County Los Angeles City & County San Francisco City & County San Mateo County Financial Support IRS Tax Relief Government Benefits | Unemployment assistance, Healthcare, and Food & Nutrition Small Business Guidance | Small Business Guidance & Loan Resources Government Grants & Loans Student Aid | Coronavirus and Forbearance Info for Students, Borrowers, and Parents Supplemental Nutrition Assistance Program | Provides nutrition benefits to supplement the food budget of needy families State Resources for Financial Support California Unemployment Insurance Claim Community Support Giving Back Please consider donating to organizations in your local community, and assisting neighbors in need with grocery and pharmacy pickups, babysitting, and dog walking, to name a few. American Red Cross | Healthy individuals are needed to donate blood. Find a local blood drive. World Health Organization | Solidarity response fund Feeding America | Hunger relief No Kid Hungry | Provide kids in need with meals they’ve missed due to school closures Salvation Army | Relief for low-wage employees facing layoffs, limited hours and childcare challenges Global Giving | Medical supplies and relief efforts Eater’s List of Relief Funds | Restaurants, bars & food service workers Disability or Paid Family Leave Benefits All information is deemed reliable but not guaranteed. This was prepared by licensed California CPA to assist in understanding the ACT. Please consult with your own CPA for more information.