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Dealing with Bed Bug Infestation

Bedbugs: Addressing and Preventing Outbreaks in Tax Credit Properties By A. J. Johnson Outbreaks of bedbug infestation in apartments are increasing at an alarming rate in most metropolitan areas of the country, and low-income housing tax credit properties are not immune from this problem. Bedbugs can have a severe negative impact (e.g., economic, public relations) on an apartment complex, and may soon become the major pest control problem for the multifamily industry. Severe outbreaks can cost from $20,000 to $50,000 to address. While bedbugs are not known to transmit disease, they are stressful to residents and challenging to eliminate. Successful bedbug control requires a proactive, multi-pronged approach by property owners and management. Integrated Pest Management Pesticides alone should not be used to control bedbugs. The most effective program for eliminating and controlling bedbugs is an Integrated Pest Management System (IPM). This involves multiple actions taken in a carefully coordinated and logical combination that minimize the risk of pesticide exposure while protecting the environment. A good IPM program will provide for: (1) inspection of infested areas and surrounding living spaces; (2) correct identification of the pest; (3) good recordkeeping, including the dates and locations of when the pests were found; (4) cleaning of all items within a bedbug-infested living area; (5) reducing clutter where bedbugs can hide; (6) eliminating of bedbug habitats; (7) physical removal of bedbugs through cleaning; (8) careful and limited use of pesticides; (9) follow-up inspections and possible treatments; and (10) tenant education on bedbug prevention. An apartment building may need several cycles of treatment before bedbugs are fully eliminated. For this reason, the "prevention through education" part of IPM is stressed. Responsibilities of Management and Residents A successful IPM program recognizes the responsibilities of both management and tenants. Management must: Encourage the reporting of bedbugs by renters and guests; Keep records of infestation complaints on site in a log book; Respond quickly to complaints with inspection and intervention; Develop an aggressive bedbug control plan with elimination as the goal; Raise tenant awareness about bedbugs; Institute a prevention program, centered on awareness; and, Refer tenants to the proper sources of help, such as medical, mental health, financial, and social services. Tenant responsibilities include: Reading and following all guidelines provided by management for reporting signs of bedbugs, and for cleaning and room preparation; Cooperating with management staff in the prevention and control of bedbugs, regardless of whether the tenant s individual living space is overrun or not; Knowing the signs of bedbugs and checking constantly for them in personal living spaces; and, Encouraging other tenants to follow the guidelines and to cooperate with management. Control and prevention of bedbug infestation requires cooperation between management and residents, and the services of a pest management professional. Few managers are qualified to undertake a prevention and control program on their own. When seeking a professional pest management professional, the following should be considered: The pest management company should be licensed by the state and insured; Technicians should be fully licensed in the state and be certified pest management professionals; The company should be a member of a professional organization, such as the National Pest Management Association (www.pestworld.org); The company should have a staff entomologist or access to one; Technicians should have experience with bedbug management; and, The proposed work should follow the steps of integrated pest management - not just a pesticide application. Choose a company based on the quality of service - not just price - and obtain several proposals for service if possible. In addition, always request a pre-inspection to assess the scope of work. Strategies to Avoid Certain strategies just do not work when it comes to eliminating and preventing bedbugs. Abandoning rooms or entire buildings will not guarantee eradication. Adult bedbugs can live without food for over a year and will merely move to a new host. Also, the use of "bug bombs" or full-room foggers is ill-advised. They release small droplets of chemicals that do not penetrate the cracks and crevices where bedbugs live, but can cause harmful exposure to humans and pets. In addition, merely discarding infested beds and bedding is not a viable approach. Bedbugs will simply spread to walls, molding, ceilings, light fixtures, electronics, TV remote controls, alarm clocks, floor boards, and the edges of carpets. If infested furniture and belongings are discarded, they should be defaced or destroyed and labeled with the work "bedbugs" to discourage others from taking them. All in all, bedbugs are an increasingly common nuisance that can be difficult to eliminate. But implementing an integrated pest management system can address current outbreaks and minimize the odds of recurrence going forward.

HUD Publishes Formal Guidance on Infestation Control

On April 23, 2012, HUD published Notice H 2012-5, "Guidelines on Addressing Infestations in HUD insured and Assisted Multifamily Housing." This guidance formalizes that in cases of infestation, owner priority should be the establishment of an Integrated Pest Management Plan (IPM). This type of plan is especially important on preventing bed bug infestation in multifamily properties. This formal guidance applies only to properties receiving HUD assistance through project-based Section 8; it does not place additional requirements on owners of properties that accept vouchers.   HUD is putting strong emphasis on "shared responsibilities" between management staff and residents in the effort to prevent or eliminate infestations. Following are some of the recommendations made by HUD in establishing the IPM: Hold workshops with tenants on how to identify bed bugs and how to report possible bed bug activity; Provide orientation for new tenants and staff; and Post signs at the property with bed bug identification and prevention information.   As part of the IPM, staff training in identifying bed bugs and on going prevention is crucial. This staff training should include: Bed bug prevention and treatment methods; Inspection of infested areas and surrounding living spaces; Correct identification of bed bugs; Elimination of bed bug habitats; Physical removal of bed bugs via cleaning; Proper use of pesticides; Follow up inspections and secondary treatment methods; and Recordkeeping requirements.   Although REAC inspectors will not deduct points for bed bug infestation, inspectors will ask that you identify any bed bug infested units or buildings prior to inspection. They will then report the specific units or buildings in the Comment section of the Physical Inspection Report. HUD staff will then take additional steps to monitor and track reports of infestation and treatment of such infestation. If notified by HUD of the report of infestation, owners/agents must inform your project manager of the actions you are taking for bed bug control within five days of the date of the letter you receive. Your reply must detail the treatment method, timing for treatment, and a monitoring and prevention plan.   All operators of HUD project-based Section 8 properties should obtain a copy of HUD Notice H 2012-5 and familiarize themselves with its requirements.  

Section 538 Web Conferences

In August and November 2012, the United Stated States Department of Agriculture will hold a series of teleconference calls and/or web conferences regarding the Section 538 Guaranteed Loan Program. These discussions are open to the public and will cover a broad range of topics relating to the 538 program, including Update on 538 activities; Discussion on the current state of debt financing and impact on the 538 program; Discussions on using the 538 program with the transfer or preservation of Section 515 projects; and Use of the LIHTC with the 538 program.   If you register for the conferences, information regarding the dates and times of the calls/conferences will be emailed to you. To register, you should contact Monica Cole at Rural Development. Her contact information is as follows: Phone: 202-720-1251 Fax: 202-205-5066 Email: monica.cole@wdc.usda.gov   In order to ensure timely notification of the August conference, you should contact Monica prior to July 15. I recommend participation in these calls for anyone involved in either Section 515 or 538 development.

HUD Discrimination Charge Results in $15,000 Settlement

Today HUD announced that the owner of Breckenridge Plaza Apartments in Phoenixville, PA has agreed to pay $15,000 to settle claims that the property manager discriminated against families with children. The charges were originally made in August of 2011 and were a result of the owner and manager charging families higher rent when children were members of the household, indicating a preference against families with children. The complaint was made against the owner and manager by the Fair Housing Council of Suburban Philadelphia after testers had discovered the practice. The charge also alleged the owner and manager were liable for posting ads on craigslist.org which indicated a preference for households with no children. For example, one of the ads stated, "winter special price for two adults." Along with the payment of $15,000 to FHCSP, the owner must implement a non-discrimination policy.

Michigan Proposing New Rules to Encourage LIHTC Development

The Michigan State Housing Development Authority (MSHDA) has proposed changes to its rules to make projects more feasible for LIHTC developers and to encourage new developers to participate in the program. A major change would eliminate the requirement that investors provide a binding commitment letter to purchase a project s tax credits. Instead, equity investors would only have to show a serious interest and that due diligence has been conducted. The Authority is also proposing to lengthen the amount of time after receiving a priority for allocation to closing on the tax credit equity from 120-days to 180-days. Another change under consideration would eliminate the requirement that sponsors submit a fee with their applications equal to six percent of the annual credit allocation. The new provision would require submission of a three percent fee at the time of reservation, with the remainder being paid at equity closing. In order to encourage the participation of new developers, the Agency is proposing to reduce total points for experienced developers and management agents from 30 to 20.

Maryland Loan Program Provides Financing for Energy Upgrades

The Maryland Department of Housing & Community Development (MDHCD) has established a loan program to finance improvements to energy systems for multifamily developments, single-family homes, and businesses. The program is called be SMART (Save Money and Resources Today), and if funded by a $20 million grant from the U.S. Department of Energy. Under the program, the State will finance the purchase and installation of energy- efficient equipment, materials and measures that will result in an energy savings of 15 to 30 percent. Eligible multifamily properties must be existing income or rent restricted projects serving low to moderate-income tenants. MDHCD will give preference to projects based on the number of low-income units and the length of the affordability period. One multifamily property, Edinburgh House in Takoma Park, MD has already been funded under the program, receiving a $312,500 loan. For information on the loan program, contact MDHCD at 1-410-514-7704 or go on their website at www.dhcd.maryland.gov.

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