landmarks 2009 annual report statement.....17 naa education institute ..... ... the jc hart company...

L a n d m a r k sNATIONAL APARTMENT ASSOC IATION

2009 ANNUAL REPORT

During a year in which the nation’s economy,the housing sector and the political landscapeexperienced perhaps the most emotionally charged

pattern of peaks and valleys in our lifetime, the NationalApartment Association (NAA) delivered products andservices that enabled its members to overcome businessadversity while helping millions of Americans pursue The New American Dream: Renting.

NAA membership, which reached record numbers when three new Southern California associations joined in the fall, is now more than 51,000 and counting. Thesemembers are benefiting from an ever-expanding offeringof NAA products, services, communications, education and advocacy in 2009.

This is most critical as the recent financial meltdown hasaffected all housing—the apartment industry included.Owners are dealing with the expiring and resetting of loansfor their mortgages and are facing rising unemploymentwithin their resident bases while property managementfirms are challenged in the business of taking overproperties that have gone into receivership.

NAA’s volunteer leadership and staff at all levels havehelped membership better connect with one another on the local, state and national scene to address times of crisis through networking, conferences and criticalcommunications. We feel that there has hardly been a time during NAA’s 70-year history when NAA membershipwas more valuable than today.

NAA continues to promote apartment living as alifestyle choice—one that more comfortably meets theneeds of today’s mobile workforce, comprising those whowillingly accept more responsibility for their personalfinances and overall consumerism. NAA has carried this

message to legislators and the national media alike,securing favorable coverage while helping to educateAmericans on the merits of renting apartment homes.

NAA this year continued as the industry’s premiersource for networking through education. Our high point, again, came in June with another outstanding NAAEducation Conference & Exposition. NAA presented itsmost comprehensive, timely and valuable offering ofsessions, industry experts and thought leaders who coveredevery facet of our industry with a message that resonatedwith all levels of multifamily housing professionals.Attendance, support and enthusiasm for the event exceededexpectations.

This year has ended with us finding a far morepromising future than what our industry and our countrywere facing back in January. The turmoil and uncertaintythat owners, supplier partners, residents, investors, lendersand the general public experienced at the end of 2008carried into 2009. But with NAA and its entire membershipworking to meet the multifamily housing industry’s needs,the results stand to be much greater in 2010 and beyond.

Ron Shelton, CAPS2009 NAA Chairman of the Board

Douglas S. Culkin, CAENAA President

NAA President Doug Culkin (left) and NAA Chairman of the Board Ron Shelton

2 0 0 9 A n n u a l R e p o r t TABLE OF CONTENTSI n d u s t r y E c o n o m i c R e v i e w . . . . . . . 2

N A A E d u c a t i o n C o n f e r e n c e & E x p o s i t i o n . . . . . . . . . . . . . . . . . . . . . . . . 4

C o m m u n i c a t i o n s . . . . . . . . . . . . . . . . . . . . 8

L e g i s l a t i o n . . . . . . . . . . . . . . . . . . . . . . . . 10

N A A P o l i t i c a l A c t i v i t y . . . . . . . . . . .13

N A A L e a s e P r o g r a m . . . . . . . . . . . . . . . . 17

F i n a n c i a l S t a t e m e n t . . . . . . . . . . . . . 17

N A A E d u c a t i o n I n s t i t u t e . . . . . . . . 18

N A A N e t w o r k . . . . . . . . . . . . . . . . . . . . . . 20

COVER: AMALGAMATED MANAGEMENT CORP., STONELEIGH AT MESQUITE, DALLAS, TX

L a n d m a r k s 2 0 0 9 1

Tom Beaton, CPMThe Dolben Co.Region 2 VP

Mike BeirneThe Kamson Corp.Region 2 VP, Member Relations

Marc Cameron, CPMMiller-Valentine GroupRegion 3 VP

Cindy Clare, CPMKettler ManagementBoard Member-at-Large

Mike ClowGreystarRegion 7 VP

Victoria Cowart, CPMDarby Development Co. Inc.Communications Advisory Board

Doug Culkin, CAENational Apartment Assn. President

Terry DannerRiverstone Residential Group LLCBoard Member-at-Large

Paul DouganUniversity FurnishingsStudent Housing Committee

Dennis FunkhouserThe JC Hart CompanyRegion 3 VP

Rex Gambrell, CPMCorum Real Estate GroupRegion 8 VP

Michael Goldfarb, CPMManco Abbott Inc.Region 10 VP

Rick Graf, CPMPinnacle Realty Management Co.Region 6 VP

Greg GuerreroApartment Services CompanyIndependent Rental Owners Committee

David Hirsch, CAMECI GroupRegion 4 VP, National Issues

Mike HolmesEaslan ManagementRegion 4 VP, NAAPAC

Janae JarvisWasatch Property ManagementRegion 8 VP

Maitri Johnson, CAPSRiverstone Residential GroupNAAEI Curriculum Development

Christine Lee, CAMPremier Residential ManagementLLCRegion 5 VP

Jill Levins, CAPS, CPMGumenick PropertiesRegion 1 VP

Andrea MasseyNational Suppliers Council Chairman

Ellen Maxime, NALP, CAMDelaney Development Inc.Region 9 VP

John McDermott, Esq.National Apartment AssociationParliamentarian

Mike McDougal, CPA, CAPSMcDougal Cos.Region 6 VP, 2009 Conference Committee

Sam Merrick, CPM, CDPMLincoln Military HousingPrivatized Military Housing Committee

Jay OlsonConAm ManagementRegion 7 VP

Linda Page, CPM, ARM Edwin Raskin Co.Region 4 VP, Membership Committee

Mike PeterCampus AdvantageStudent Housing Committee

Diana Pittro, ARM RMK ManagementRegion 3 VP

Cheryl PucciLease Advisory Committee

Kathy Ratchford, CAM, CAPSUDRRegion 9 VP

John Ridgway, CPMCeltic Realty Advisors LLCNAA Leadership Lyceum

Marc Ross Bob Ross RealtyRegion 6 VP, Member Service

Rosemarie Selman, CAESan Antonio Apartment AssociationNAAEI Program Administration

Paul SmithAssociation Executive Council President

Rick SnyderR.A. Snyder Properties Inc.Region 10 VP

Robert Tinning, CPMChurchill Residential ManagementAffordable Housing Task Force

Susan TruesdaleGreystar Management ServicesRegion 9 VP

Dave Watkins, CAPSGreystarLease Advisory Committee

Scott Wilkerson Babcock & Brown Residential LLCRegion 4 VP

Jerry Wilkinson, CCIMThe Wilkinson Group Inc.Budget & Finance Committee

Brad Williams, CPMLincoln Property Co.Region 6 VP, Legislative Committee

Gary Wilson, CAMA.R. Wilson Inc.Region 5 VP

Bill Wollinger, SHCMWinnResidentialNAAEI Apartment Careers

Mike GormanCAPS, CPM, CCIM

NAA Vice ChairmanEdward Rose Companies

Indianapolis, IN

Ron Shelton, CAPSNAA Chairman

of the BoardAmalgamated

Management Corp.Dallas, TX

Marc RosenwasserNAA Chairman-Elect

Meadow Wood Property Company

Tampa, FL

Jerry Wilkinson, CCIMNAA Treasurer

The Wilkinson Group Inc.Atlanta, GA

Dave Watkins, CAPSNAA 2007

Chairman of the BoardGreystar

Tampa, FL

Alex Jackiw, CAPS, CPMNAA Secretary andNAAEI President

Buckingham Companies LLC Indianapolis, IN

N A A B o a r d o f D i r e c t o r s

N a t i o n a l A p a r t m e n t A s s o c i a t i o n

I n d u s t r y E c o n o m i c R e v i e wRECESS ION DRAMATI CALLY IMPACTS APARTMENT MARKET

T he apartment industry and rentalhousing market were dramaticallyimpacted by the economic

recession in 2009 with rapidly risingunemployment, consumer deleveraging,lack of credit and the near meltdown ofthe financial services sector. The actions ofthe federal government likely preventeda depression; while the massive deficitspending will have a negative impact onfuture economic growth, it likely will havea positive impact on the multifamilyindustry. Declining homeownership, aprotracted jobless recovery and lowerhousehold income and net worth willlikely steer a higher percentage of theU.S. population to renting… when theeconomy stabilizes.

While the economy has yet to reachbottom, the apartment industry in 2009is finally nearing its bottom. Beginningin 2010 and accelerating in 2011 andbeyond, the outlook amid the challengingeconomic climate is positive. Whencombined with shifting demographictrends, the future has now arrived for theapartment industry.

V a c a n c y R a t e sOverall vacancy levels in 2009

climbed to more than 12 percent, thehighest level in years. While there will besome improvement in 2010, apartmentowners were faced with a perfect storm ofa rapidly declining economy, recession,massive job losses, a looming single-family housing rental market and adecline in the rental participation ratesof what traditionally are “very likely”renter segments. The vacancy levels forinstitutional grade apartment buildingswill likely finish 2009 at approximatelyslightly more than 8 percent. Netabsorptions are expected to be at theirlowest levels in seven years. Traffic countswere down in 2009 and the level andamount of concessions increased asapartment owners and operatorscompeted for a declining number ofpotential renters.

R e n t G r o w t hOverall rents were down 3.3 percent

to 3.5 percent in 2009 (unadjusted forany counter trend derived by the impact

of deflation—witnessed in 2Q and 3Q).Faced with deleveraging consumers,concerns over personal and householdfinancial well-being, layoffs, wagereductions and 401(k) losses, rents weredriven down in 2009 by the decliningnumber of apartment renters. Whileconditions are expected to improveslightly in 2010, the bottoming-out ofrent growth likely occurred in 2009.

O p e r a t i n g E x p e n s e sIn a very challenging time for the

apartment industry, the 2009 NAA Surveyof Operating Income & Expenses revealedthat apartment operators were able tonavigate the mine field of decliningrevenues and rising fixed and variablecosts. Total operating expenses increasedby .9 percentage points and net operatingincome declined by 2.7 percentage pointsto 53.9 percent.

R e n t e r H o u s e h o l d sOf all the occupied housing units in

the United States, 33.4% are filled byrenters. Homeownership in the country

2 L a n d m a r k s 2 0 0 9 N a t i o n a l A p a r t m e n t A s s o c i a t i o n

Moderator Jim VandeHei, Founder, Politico.com; and panelists Ric Campo, Chairman and CEO, Camden; Bob Faith, CEO, Greystar; and ChristopherLee, President and CEO, CEL & Associates, discuss issues during the CEO Panel session in June.

C E O P a n e l i s t s S h a r e I n s i g h tThree apartment experts engaged in a spirited and free-flowing discussion about the impacts of the economy on the apartment industry,offering their knowledge and experience on the steps necessary for companies to navigate through to a recovery at a CEO panel duringthe General Session “Knowledge is Power—How to Survive These Times,” June 26 at the 2009 NAA Education Conference & Expositionin Las Vegas.

has declined to 67.4 percent and in whatis projected to be a long jobless recovery,the number of renters is expected toincrease beginning in 2010. This willstart a trend that likely will continue formore than a decade. Single-familyhousing starts are down 21.7 percent ona seasonally adjusted basis. Someanalysts are projecting approximately 42percent or more of single-family homemortgages will be worth more than thevalue of the underlying asset by year-end2009. Approximately 69 percent ofsubprime loans will be underwater by2011. One interesting lesson consumerslearned in 2009 is to rein in excessspending—something that bodes wellfor the apar tment industr y in theyears ahead.

L a b o r M a r k e t sPayrolls continued to decline in 2009.

Nearly 8 million jobs have been lost sincethe recession began. Unemployment isnow hovering at 10 percent and 13million to 15 million people areunemployed, with nine million peopleworking part-time who are seeking full-time work. With a seven to 10-year supplyof available workers and a forecast forhigher unemployment in the first half of2010, the net impact long-term will be arise in apartment renters.

N e w C o n s t r u c t i o nMultifamily housing starts for five or

more units, as of August 2009, are at a very lowseasonally adjusted basis of approximately78,000. Permits are approximately 104,000units. While completions are strong atapproximately 210,000, it is important toremember that these units were started in2007 and 2008 before the downturnaccelerated. Freddie Mac and Fannie Mae arenow supplying more than 90 percent of thenew loans for the multifamily industry. Theimpact of low permits and starts likely willresult in a supply/demand imbalance in 2011and 2012.

—CEL & Associates

43.8

45.6

48.0 47.7

49.550.2 50.4

51.3

56.0

58.9

57.7 57.8

56.7

53.152.2

53.9

56.9 56.6

53.9

1988 1989 1990 1991 1992 1993 1994 1995 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 200840

42

44

46

48

50

52

54

56

58

60

of Gross ntial Rent

43.8

45.6

48.0 47.7

49.550.2 50.4

51.3

56.0

58.9

57.7 57.8

56.7

53.152.2

53.9

56.9 56.6

53.9

1988 1989 1990 1991 1992 1993 1994 1995 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 200840

42

44

46

48

50

52

54

56

58

60

of Gross ntial Rent

19701971

19721973

19741975

19761977

19781979

19801981

19821983

19841985

19861987

19881989

19901991

19921993

19941995

19961997

19981999

20002001

20022003

20042005

20062007

20082009

0

100

200

300

400

500

600

700

800

900

1,000housands

Source: Witten Advisors, LLC and U.S. Census Bureau. September 2009.

19701971

19721973

19741975

19761977

19781979

19801981

19821983

19841985

19861987

19881989

19901991

19921993

19941995

19961997

19981999

20002001

20022003

20042005

20062007

20082009

0

100

200

300

400

500

600

700

800

900

1,000housands

Source: Witten Advisors, LLC and U.S. Census Bureau. September 2009.

U . S . O c c u p a n c y / R e n t G r o w t h1 9 7 0 - 2 0 0 9

N e t O p e r a t i n g I n c o m eI N D I V I D U A L LY M E T E R E D M A R K E T R E N T G A R D E N P R O P E R T I E S

L a n d m a r k s 2 0 0 9 3N a t i o n a l A p a r t m e n t A s s o c i a t i o n

Information not available 1996-1997Source: NAA Income & Expense SurveyCEL & Associates, Inc.

% of GrossPotential Rent

Thousands

Source: Witten Advisors, LLC and U.S. Census Bureau, September 2009

“ W h i l e t h e e c o n o m y h a s y e t t o r e a c h b o t t o m , t h e a p a r t m e n t i n d u s t r y i n 2 0 0 9

i s f i n a l l y n e a r i n g i t s b o t t o m .”— C h r i s L e e , P r e s i d e n t , C E L & A s s o c i a t e s

Nearly 5,000 attendees earned a hugepayoff in June by attending the 2009NAA Education Conference &

Exposition at Mandalay Bay in Las Vegas.The three-day event featured more

than 50 education sessions, serving ninespecific career tracks as well as incrediblegeneral sessions presented by comedianDana Carvey and financial guru SteveForbes.

The conference also included a CEOpanel session where several top apartmentexecutives spoke on current trends and thefuture of the apartment industry. Sessionsalso were presented on the prospects ofnational and local markets and onefeatured an in-depth look at the apartmentindustry’s receivership trend and howmanagement companies are dealing withforeclosed properties.

The informative and inspiringThought Leader series included speakerson social media, communication,marketing, motivation and management.

The challenging economic environmentserved as motivation for attendance, asprofessionals from all parts of thecountry and all job types andmanagement levels gained valuableinformation and made the most ofnetworking opportunities that only theNAA Education Conference & Expositioncan deliver.

“Gripped with today’s economy anduncertain times, an event like the NAAEducation Conference helps our industryre-charge and re-focus as we prepareourselves for both the short-termchallenges and the bright, long-term futureof rental housing,” said 2009 NAAChairman of the Board Ron Shelton, CAPS,Amalgamated Management Corp., Dallas.

N A A H a l l o f F a m ePAST NAA CHAIRMAN OF THE BOARD DEANE DOLBEN, CAPS, INDUCTED

Honored as a man who consistently doeswhat is best for the apartment industry

and the National Apartment Association(NAA) on a national scale, Deane Dolben,CAPS, President of The Dolben Company,Boston, was inducted into the NAA Hall ofFame during Thursday’s General Sessionat the 2009 NAA Education Conference &Exposition in Las Vegas.

Induction into the NAA Hall of Famerepresents the highest honor that can bebestowed upon an apartment professional.Dolben is the 12th person inducted duringNAA’s 70-year history.

Dolben has been active in apartmentindustry leadership since 1997, whenhe was President of the Rental HousingAssociation of the Greater Boston RealEstate Board. In 1998, he played a keyrole in bringing the Northeast into

NAA’s membership.Dolben served as NAA President

(now recognized as Chairman of theBoard) in 2004. During his year as NAAPresident, Dolben was instrumental in

combining all NAA education componentsinto one entity designed to meet apartmentindustry education and recruitment needs,culminating in the formation of the NAAEducation Institute (NAAEI) in 2004.

Deane Dolben, CAPS, the 12th member of NAA’s Hall of Fame, with Jim Hepfner, CAPS (left),and Ron Shelton, CAPS.

N A A E d u c a t i o n C o n f e r e n c e & E x p o s i t i o nIT’S A NEW GAME… KNOWLEDGE IS POWER


The NAA Education Conference & Exposition delivered more than 50 entertaining and informativeeducation sessions.

NAA Education Conference & ExpositionChair Mike McDougal, McDougalCompanies, Lubbock, Texas, said the depthand breadth of the conference lineup onceagain made it the most important event inthe industry.

“At every turn and at every event, theconference gave attendees the ability tolearn about what their peers are

experiencing and various best practices onhow to deal with current conditions,”McDougal said. “At the same time, theconference gives all of us the chance toreconnect with friends and meet new andvaluable industry contacts.”

The conference also featured annualpresentations of NAA’s national PARAGONAwards and prize drawings galore,

including three drawings for $10,000cash in the exhibition hall. There,attendees also toured the booths of 320exhibitors on the 150,000-square-foot floor.The conference was supported by 21 metalsponsors, including 15 at the Platinum level.

The Platinum Sponsors (below) alsosupported NAA’s Capitol Conference andAssembly of Delegates.

P l a t i n u m S p o n s o r s G o l d S p o n s o r

S i l v e r S p o n s o r

B r o n z e S p o n s o r s

L a n d m a r k s 2 0 0 9 5

Attendees enjoy a tradeshow event. Dana Carvey entertains the crowd. Steve Forbes offers economic insight.


N A A S t u d e n t H o u s i n g C o n f e r e n c eRECORD-BREAKING CONFERENCE CONNECTS FAST-GROWING NI CHE MARKET PROFESS IONALS

6 L a n d m a r k s 2 0 0 9

Student-housing professionals andsupplier partners gathered at the2009 NAA Student Housing

Conference & Exposition for a jam-packed schedule of general and breakouteducation sessions covering all aspectsof student-housing development,operations and management in LasVegas, Feb. 2-4.

Off-campus housing is one of theapartment industry’s most importantniche markets. This year’s conferenceattendees and their colleagues are in theunique positions of continuing toincrease their businesses and grow theirindustry during a national economicdownturn. As the number of individualsseeking higher education grows, so doesthe need for high-quality studenthousing.

Student Housing Executive Panelmembers from four top management

and development firms opened theconference with an enlighteningdiscussion on everything fromappropriating bandwidth and studentprivacy to international markets anduniversity relations. Mike Peter, Presidentand CEO, Campus Advantage, wasmoderator to panelists Bill Bayless,President and CEO, American CampusCommunities; Mike Mouron, Presidentand Chairman, Capstone; Jim Short,President and CEO, Campus LivingVillage; and Tom Trubiana, ChiefInvestment Officer, Education Realty Trust.

General Session Keynote Speaker NeilHowe, author of “The Millennials Go ToCollege,” kicked off the second day of theconference with an overview ofgenerational differences and marketingtechniques to appeal to current collegestudents. Richard Ferraro, Assistant VicePresident for Student Affairs, Virginia Tech,

closed out the conference with hispresentation on dealing with students in crisis.

A total of 12 breakout sessions spreadover three hours allowed attendees totailor their education to the topics andexperience levels most appropriate to them.

“The speakers had such a vastknowledge of what is going on in the market,specific to our demographic—students,”says Denise Haggard, Property Manager,Smallwood Plaza, Bloomington, Ind.

A record 143 exhibiting companies with252 booth workers and nine sponsors—four at the Graduate level: ApartmentGuide, Campus Advantage, UniversityFurnishings and U.S. Postal Solutions; andfive at the Undergraduate level: Capturethe Market, JPI, RealPage, Resident Checkand Yardi—filled the tradeshow floor,showcasing their products and serviceswith prizes and giveaways during theconference’s lunch breaks.

NAA Student Housing Conference attendees listened to executive panelists (from left) Jim Short, Tom Trubiana, moderator Mike Peter, Mike Mouron

and Bill Bayless reflect on the state of the industry.


The bright, open halls of the PhoenixConvention Center, a LEED Silver-ratedbuilding and one of the greenest

convention centers in the world, proved anappropriate and eco-friendly setting for theinaugural NAA Green Conference &Exposition, where apartment industryprofessionals and suppliers gathered in Aprilto discuss and learn about green apartmentbuilding and management.

Hundreds of attendees packed sessionrooms to learn green best practices fromthe experts. More management methodsand government and utility incentives areavailable for green building than ever before.Energy-efficient operations are increasinglymore important to apartment companies’efforts to tighten bottom lines.

NAA thanks the 2009 NAA Green Conference& Exposition sponsors: ista, Minol, SherwinWilliams, TXU Energy, Valet Waste and WasteManagement Concierge.

N A A L a u n c h e s G r e e n W e b P o r t a l

In preparing the multifamily housingindustry for the market shift to sustainablebuilding and operations, NAA initiated aGreen Web Portal (www.naahq.org/green).The Portal provides a one-stop informationresource with information regarding NAA’sand the industry’s green efforts.

L a n d m a r k s 2 0 0 9 7

Attendees learn about green strategies andsustainability in the apartment industry.


N A A G r e e n C o n f e r e n c eAPARTMENT INDUSTRY TAKES NEXT STEPS TOWARD SUSTAINABILITY

M e d i a R e l a t i o n sNAA PROMOTES APARTMENT LIVING THROUGH NATIONAL MEDIA

NAA gained positive press this year innational and local print, magazines, blogs,news Web sites and television and radio.

Offering NAA members and staff asinterview sources, NAA garnered more than135 million impressions over national andlocal media. Articles mainly focused onapartment living as a lifestyle choice. Otherarticle topics were trends in concessions,rising unemployment’s impact on residents, thereceivership market, the future of apartmentliving, green strategies by owners, residents’attraction to green living and the price ofhomeownership.

NAA President Doug Culkin appeared askeynote speaker and addressed the nation’sapartment market during the RealShareApartments 2009 conference in October inLos Angeles, an event covered by nationaland local industry media.

J a n . “Believe me, on Monday I had more fun shoveling snow [in front of my apartment community]than people who watched their stock market investments.” — Wisconsin-based independent owner Rich Sommer on others’ failed investment strategies

F e b . “You know you are in trouble when it seems that the biggest risk taker out there is the federalgovernment. Debt is great in an up cycle, but it’s very unforgiving in a down cycle.” — Dale Gruen, Managing Director, BlackRock Realty, on the credit crisis

M a r c h “Personal contact is worth a hell of a lot more than sending e-mail. When you’re talking face to face, [employees] know you’re feeling their pain, that you’re sincere in what you’re doing.” — Dave Watkins, CAPS, Senior Director, Greystar, on communicating with employees about layoffs

A p r i l “We wanted to create a program where our residents wouldn’t be penalized by us for beinginvoluntarily out of work.” — Resource Residential President Harlan Krichman on his company’s decisionto waive termination fees for residents who are laid off

M a y “A lot of these overleveraged owners can’t hang on. You’re throwing good money after bad. They justlet go.” — Chris Burns, Southeast Regional Vice President for Lincoln Property Co., on owners whopurchased overvalued properties being unable to refinance or pay debt service after the bubble burst

J u n e “Five or 10 years ago, no one ever discussed green. In the last few years, we’ve been focused ongreen not only in development, but also on the management side. Companies are looking for new ways to manage and market green.” — Kettler President Cindy Clare on the surge in popularity of green apartment living

J u l y “That’s an indicator for what’s out there and what’s going to be out there. It was a highly motivatedseller in a market that it didn’t want to be in. [The seller] never intended to be in the property managementbusiness.” — Bill Freeman, Co-Founder, Freeman Webb Investments, on the $3.95 million price it got for an apartment community originally listed for $9.3 million

A u g . “Don’t expect new construction any time soon. You shouldn’t be building in most markets anyway.What’s the point, when you can walk in and buy a three-year-old, beautiful property for 20 percent to 30percent below the cost of new construction?” — Apartment Realty Advisors’ Principal Jeff Hawks on today’s new construction standstill

S e p t . “As consumer habits change, so should our industry. The apartment industry has been slow to adapt to changing technologies, but text messaging and mobile apps provide us with another mode of communication—a mode many folks prefer.” — Melanie Stiles, National Director of Training and Marketing for Milestone Management, on marketing via text-messaging and phone apps

O c t . “There’s the possibility that maturing debt in the commercial real estate sector will bring anotherbig blow to the financial industry and refreeze the capital markets just as they start to make some solidprogress in the thawing process. It is doubtful 2010 will be as ugly as 2008 and 2009 have been, but it won’t be pretty either.” — Greg Willett, Vice President of Research & Analysis, MPF Research, on the coming year

N o v . “The apartment sector experienced one of its weakest quarters in decades, with the nationalvacancy rate reaching 7.8 percent in Q3 2009, marking a 23-year high, according to Reis. Asking rentsfell by 0.5 percent over Q2, one of the largest single-quarter declines in the firm’s history—exceeded only by the declines in the first half of this year.” — Real Estate research firm Reis’ Q3 2009 Trends for the Apartment Sector report

C o m m u n i c a t i o n sTHE YEAR IN QUOTES: units MAGAZINE HAS THE APARTMENT INDUSTRY COVERED


NAA launched a new, multi-author blogon www.naahq.org in February 2009.The blog features NAA staff, apartment

industry professionals, subject-matterexperts and training professionals bloggingabout a wide variety of industry topicsincluding breaking apartment industry

news, current legal issues, marketing andleasing, green and energy issues,operations, economic issues and personaldevelopment.

Recent posts covered litigation aboutbed bugs, accessibility and smoke-freeapartments, resident retention and effectivegreen strategies. Readers are encouraged topost comments to the blog, to ask questionsand engage with the NAA bloggers. Readerscan also subscribe to the blog via RSS toreceive instant updates when new posts areadded. Visit www.naahq.org/blog to readthe latest posts.

Social networking continues to transformthe online communications landscape;as a result, NAA this year launched social

networking groups on LinkedIn and Facebookas well as Twitter accounts in a strategiceffort to remain ahead of the technologycurve and to increase engagement with keymember segments through these newcommunication avenues. NAA’s onlinecommunity groups provide both membersand non-member apartment industryprofessionals with a forum to discuss thelatest apartment industry topics, breakingnews and industry best practices. NAA alsouses these groups to keep members up todate with NAA events and generate greaterawareness of the NAA brand and the productsand services NAA provides for the benefit ofthe industry including the NAA EducationInstitute designation programs, units magazineand the National Lease Program. In 2009,these sites also were instrumental inincreasing traffic to the NAA’s Web site. Visitwww.naahq.org/community to learn moreabout NAA’s social networking activities.

S o c i a l N e t w o r k i n g

L a n d m a r k s 2 0 0 9 9

APTLY SPOKEN NAA COMMUNITY


1,757 fans

1,841 followers

2,168 connectionsAs of Oct. 29, 2009

L e g i s l a t i o nGOVERNMENT AFFAIRS STAFF SUPPORTS MEMBERSHIP

10 L a n d m a r k s 2 0 0 9

NAA’s Government Affairs staffprovided resources and support toits membership on numerous critical

legislative, regulatory and legal issues.Visit www.naahq.org/governmentaffairs.

N A A L a u n c h e s M o d e lL e g i s l a t i o n P r o g r a m

NAA developed and launched amodel legislation program. The programpresents legislation from around thenation that exemplifies the highestinterests of the multifamily housingindustry within the public policy realm.State and local affiliates then considerthese model legislative pieces as a basisof reference when crafting their ownproactive policy initiatives. NAA’s currentmodel pieces cover key industry issuessuch as bed bugs, maintenance personallicensing, mandatory renters insuranceand inspections.

N A A I m p l e m e n t s S t a t eL e g i s l a t i v e A l e r t S y s t e m

NAA implemented an e-mail basedstate legislative affairs alert system. Thesystem provides rapid dissemination of keyinformation regarding state-level policyevents. Alerts distributed in 2009 involvedNew York’s consideration of banningexclusive cable television marketingagreements and recent changes in the2009 International Fire Code.

N A A S u p p o r t s A f f i l i a t eA d v o c a c y E f f o r t s

NAA Works to Halt Lexington, Ky.,Rental Property OwnerLicensing Ordinance

Lending lobbying support tomembers in Lexington, Ky., NAAconveyed opposition to a proposedrental licensing ordinance throughcorrespondence targeted to the mayorand vice mayor of the Lexington-Fayette Urban County Government(UCG), as well as members of theUCG County Council. Staff alsocrafted a talking points memo inresponse to the proposal.

NAA Supports DMAA’s Effort to Combat Mandatory ‘Lead Clearance’ Certification

In response to a draft ordinancemandating that all owners of Detroitrental property secure ‘lead-clearance’ certifications for each oftheir properties, NAA argued againstthe measure in correspondencetargeted to members of the DetroitCity Council.

NAA Provides Lobbying SupportMaterial for CWAA Members

In correspondence targeted toWisconsin State legislators, NAA madeseveral arguments against legislationaimed at curbing citizens’ abilities toaccess resident’s criminal backgroundand arrest records.

NAA Works to Halt DelawareLeasing Agent Licensing Proposal

Providing support to the DelawareApartment Association, throughtargeted policymaker correspondence,NAA conveyed its opposition to aproposed rule by the Delaware RealEstate Commission aimed atrequiring the licensure of leasingagents throughout the state.

N A A P r o d u c e s N a t i o n a lR e s e a r c h P r o d u c t s

NAA conducted the followingcomprehensive research projects at therequest of affiliates in 2009:

Criminal Arrest Records Access NAA generated a 50-state report of laws

governing the public’s ability to access anindividual’s criminal background and arrestrecords. It includes a chart summarizingthe scope of information available to thepublic by state, as well as an analysis of recentand pending state legislation concerningpublic access to such information.

NAA Conducts Cold WeatherEviction Research

NAA conducted a study concerningwhich, if any, major municipalities havea standing judicial order or ordinancethat bars resident evictions during periodswhen the temperature is below a certaindegree Fahrenheit. It found Chicago andWashington, D.C., are the only majormunicipalities to have such restrictions.

Property Assessment AppealsIn determining which states require

the submission by multifamily propertyowners of their rent rolls and operatingstatements when contesting an appraisedvaluation, NAA’s Government Affairs staffreviewed each state’s tax code todetermine that such requirements existin at least eight states. Included withinthe report is a spreadsheet containing thestatutory text of each of the eight lawsand Web links to the respective statutes.

Property Storage and DisposalFollowing Resident Death

NAA found that statutes addressingthe storage and disposal of deceasedresidents’ personal property exist in atleast six states. Five of the six states alsoimpose upon property owners some formof responsibility to attempt to notify thedeceased resident’s “next of kin” that theproperty may be retrieved.


L a n d m a r k s 2 0 0 9 11

N A A P r o v i d e s M e m b e r sW i t h B e d B u g R e s o u r c e s

NAA published new research informationthat explores bed bug legislationnationwide. Additionally, NAA, inconjunction with two of its local affiliatesand the National Pest ManagementAssociation, successfully held educationalsymposiums in Newark, N.J., and Seattle.Other projects under way include an onlineeducation Webinar, informational handoutsfor distribution to members’ staff andresidents, and model legislation.

N A A U p d a t e s S e v e r a lI s s u e A l m a n a c s

NAA updated a number of existingIssue Almanacs. These almanacsexamine crucial state and local policy

issues that impact all facets of theindustry. Almanacs addressing Bed Bugs,Green Building, Inspections, CodeRetroactivity, Real Estate Licensing andSource of Income Protections wereupdated (pictured left).

N A A F i l e s A m i c u s B r i e f I n A r i z o n a M o l d C a s e

NAA filed an amicus brief with anArizona state appellate court arguingagainst a recent jury award of $3.3million to a plaintiff who claimedexposure to mold found to have infestedher apartment was the root cause of apermanent disability. Scientific studiescited in the brief debunk the notion of acausative effect between mold and health-related illnesses.


• Provided Washington MultifamilyHousing Association with research insupport of its opposition to a bill to requirethe installation of Carbon Monoxidedetectors in multifamily properties.

• Assisted the Greater Boston Real EstateBoard with research regarding if variousjurisdictions allow non-attorney propertymanagers to represent their multifamilycommunities in routine landlord/tenantcourt proceedings.

• Provided the South Dakota Multi-HousingAssociation with multifamily building firesafety statistics for use in opposition ofa local ordinance which would changeindustry fire sprinkler requirements.

• Assisted the Metro Multifamily HousingAssociation (Portland, Ore.) with researchregarding national trends on the meansmunicipal inspectors use to gain accessto occupied apartment units if deniedconsent to enter by the resident.

• Prepared a report for a member companyconcerning statutes and ordinancesacross several states and localities thatrequire apartment communities withpools to employ lifeguards.

• Conducted research for the PropertyManagement Association of Michiganregarding state laws concerning therepossession of rental housing unitsfollowing the resident death.

• Provided analysis, comments and talkingpoints to the Apartment Association ofGreater Philadelphia regarding the Cityof Philadelphia’s proposed ordinance whichwould establish a mandatory façadeinspections program for all high-rise buildings.

• Provided comments on draft legislationcomposed by the Arizona MultihousingAssociation that sets forth parametersfor multifamily property owners and residentswith regard to responsibilities stemmingfrom bed bug infestations.

• Compiled information for a SouthCarolina member detailing laws inseveral states which impose mandatesupon rental property owners to storepersonal property of evicted residents.

• Provided the Central Iowa ApartmentAssociation with statutory researchacross several states concerning latefee requirements and limitations as theypertain to the multifamily housingindustry.

• Conducted fair housing legal researchfor a member company in Californiaregarding if using the term “gatedcommunity” in apartment advertisingviolates fair housing law.

• Conducted fair housing legal researchfor a member company in Coloradoregarding if apartment communitypolicies stating that minor children mustbe accompanied by an adult at all timesviolate fair housing law.

A d d i t i o n a l N A A S t a t e & L o c a l I s s u e s S u p p o r t

The largest contingent of NAAmembers ever visited Members ofCongress in person to discuss key

issues at the 2009 NAA CapitolConference, held March 8-11 inWashington, D.C.

The annual meeting was the bestattended in NAA’s history, as attendeesparticipated in 178 Capitol Hill visits torepresentatives from 21 states across thenation. Members’ trips to Capitol Hillserved as the finale to the four-day event.Before venturing to Capitol Hill,conference attendees reviewed topindustry issues during a briefingdelivered by the NAA/NMHC JointLegislative Program staff, led by JimArbury, Senior Vice President ofGovernment Affairs.

The conference, held at Washington,D.C.’s Omni Shoreham Hotel, focused ona variety of timely issues—such as theTroubled Assets Relief Program (TARP)and Term Asset-Backed Securities LoanFacility (TALF), the capital markets,government-sponsored enterprisesreform, Section 8 funding, the Low-Income Housing Tax Credit and greenbuilding standards.

Experts in crisis communications,social media and bed bugs also presentedinformation. Members were invited to

share comments about local issues thatcould reach a national scale.

Additionally, Former White HousePress Secretary Dana Perino welcomedthe group through the opening keynoteaddress. It was Perino’s first public

appearance since leaving the WhiteHouse in January.

She said Congress “got a bit carriedaway” with its promotion of theAmerican Dream. She said the Bushadministration could have done more toalert Congress of the risks of this priority.“Congress’ position came at a great price,and we’re paying that price right now,”Perino said. “It got to be that Congressseemed to make it an embarrassment torent. That’s certainly not the case. People

have a choice to rent, and many aremaking it now.”

On civil terms, a debate ensued oncurrent political affairs during theannual Government Affairs Roundtablelunch’s “point-counterpoint” discussionbetween political pundits Tony Blankleyand Peter Beinart.

The Capitol Conference also serves asthe venue for one of the three joint NAABoard and Assembly of Delegatesmeetings each year.

N A A C a p i t o l C o n f e r e n c eATTENDEES ADDRESS CAPITAL AND CREDIT MARKET STRUCTURES WITH LEGISLATORS ON CAPITOL HILL

12 L a n d m a r k s 2 0 0 9

(Above) NAA members met in Washington in record numbers. (Top right) NAA members fromGeorgia meet with Rep. Lynn Westmoreland (R-GA-3rd) in his Capitol Hill office. (Right) FormerBush Press Secretary Dana Perino.


Peter Beinart (left) and Tony Blankley debate political issues.

NAA developed and launched a new,expanded version of its ApartmentIndustry Mobilization Service (AIMS)

Grassroots program in conjunction withNMHC. AIMS is vital to our industry’sability to represent your interests whendecisions are made in Washington, D.C.AIMS serves as a ready grassrootsmechanism to marshal local efforts thataffect federal legislation and regulation.

NAA has developed an interactive Webproduct to expand the role of AIMS withits membership. The interactive siteallows for easier access to elected officials,allowing members of NAA the opportunityto communicate via letter and phonewith legislators and their staff. Inaddition, key votes and information onelected officials and candidates are alsoposted on the site. Background on issues,calls to activate the membership and

information about the legislative processalso are included. With the help of NAA’skey members, more than 15,000 newparticipants were added to the NAAgrassroots database. This database isactivated in times of key concern togarner active support from theseparticipants. This new Web tool, inconjunction with the AIMS program willunite and grow our message withmembers of Congress and legislatorsnationwide.

NAAPAC Raises $200,000 in 2009NAAPAC raised $200,000 through the

fundraising and education efforts of theNAAPAC Ambassadors, Board of Directors, theaffiliates and the special events held at eachof NAA’s three major conferences.

NAAPAC is a member-only driven fundcreated entirely of personal contributions.

Bipartisan campaign reform legislation hasmade PACs the principal and only legal,congressionally sanctioned method forindustries and associations to contributeto federal candidates. NAAPAC supportsgovernment relations efforts on issues thataffect NAA member bottom lines.

Contributions are given to members ofCongress who support balanced housingpolicy and are pro-multifamily industry.NAAPAC contributed over $125,000 to keymembers of Congress, political partycommittees and candidates in 2009.

L a n d m a r k s 2 0 0 9 13

N A A P o l i t i c a l O u t r e a c h A c t i v i t yGRASSROOTS PROGRAM EXPANDED

NAA/NMHC achieved several landmarkvictories in what has been possibly themost important legislative session for

the housing sector in decades. Following isa summary of key legislative and regulatoryaccomplishments through Nov. 1.

A v e r t e d S y s t e m i c F a i l u r e i n t h e A p a r t m e n t S e c t o r

Throughout 2009, NAA/NMHC conducteda high-profile effort to restore the apartmentsector's access to capital. With most attentionfocused on the single-family housing sector,NAA/NMHC made sure policymakersunderstood that the apartment sectorhad also become a collateral victim of theglobal financial meltdown (see sidebar onnext page).

Blocked ‘Card Check ’ Leg is la t ionNAA/NMHC continued our intense

opposition to the Employee Free Choice Act,the lopsided union-backed bill known as“card check” that would effectively kill secretballots and render union electionsinherently vulnerable to fraud and coercion.Our efforts as part of a broad industrycoalition and a well-timed NAA/NMHCgrassroots alert helped stall the bill, whichhad been expected to win fast approval.

H e l p e d S t a l l C a r r i e dI n t e r e s t Ta x I n c r e a s e

NAA/NMHC mounted a ’round-the-clock lobbying campaign to oppose aproposal to change the taxation of carriedinterest (i.e., “the promote”) from thecurrent capital gains rate to ordinaryincome tax rates. Originally intended toreign in hedge fund and venture capitalmanagers, the measures have been broadlywritten to cover many partnerships in other

industries, including 2.5 million real estatepartnerships.

R e t a i n e d B a n o nD o w n p a y m e n t A s s i s t a n c e

We turned back an effort early in the yearto reinstate seller-financed "charity"downpayment programs after Congressbanned them in 2008. NAA/NMHC educatedlawmakers that these programs perpetuatethe now discredited zero-down mortgagelending and would threaten to re-inflate thehousing bubble.

D e f e a t e d O v e r l y G e n e r o u sH o m e o w n e r s h i p I n c e n t i v e s

Through an all-out lobbying campaign,NAA/NMHC helped transform the economicstimulus package enacted in February toreflect a balanced housing policy. The finallegislation stripped out a $15,000

N A A / N M H C 2 0 0 9 A c c o m p l i s h m e n t sCRITI CAL LEGISLATIVE AND REGULATORY ISSUES ADDRESSED


14 L a n d m a r k s 2 0 0 9

homebuyer tax credit for all buyers andreplaced it with a smaller, temporary,income-restricted tax credit only for first-time homebuyers. It also rejected calls forfederally subsidized "interest ratebuydowns" for house purchasers.Moreover, it included several provisionshelpful to apartment firms related to theLow-Income Housing Tax Credit(LIHTC) program, energy efficiencyincentives, bonus depreciation and more.

Defeated Ef fort to “Take Over”Struggling Apartment Properties

NAA/NMHC turned back efforts toallow the government to prematurelyforce apartment properties intobankruptcy and convert them toaffordable housing. Thanks toNAA/NMHC action, an amendmentallowing the government to intervenewhenever an apartment property isdelinquent, at risk of default or at risk ofdisinvestment or in foreclosure wasaltered to require the consent of the ownerbefore any action is taken.

We were also one of a limitednumber of stakeholders invited toattend a special meeting convened byHUD and the Treasury Department toexplore what role the governmentshould play related to distressed assetsand ensuring financially stable and wellmaintained properties.

D e f e a t e d O n e r o u s R e s i d e n tN o t i f i c a t i o n P r o p o s a l

NAA/NMHC turned back an proposalthat would have required apartmentowners to notify current or prospectiverenters whenever a property is in defaultor foreclosure even if the default wasnonmonetary. We educated officials thatthe ill-advised notification languagewould unduly alarm residents andcould actually trigger a foreclosure bydiscouraging existing residents fromrenewing their leases and prospectiveresidents from signing a lease.


The day after President Obama was

elected, NAA/NMHC convened a one-day

symposium at Harvard University to develop

a policy framework for ensuring sufficient

capital flow to our sector. In the following

months, we held meetings at the White

House, Federal Reserve and Treasury

Department as well as with members of

Congress and Fannie Mae and Freddie Mac's

regulator to outline the necessary steps

federal officials needed to take to avoid

system failure in the apartment sector.

As a result of our advocacy program, we:

Retained a Federal Liquidity

Backstop for the Apartment Sector

NAA/NMHC worked closely with the GSEs,

their regulator and their network of lenders to

secure added liquidity and stability for their

multifamily programs.

Secured a Federal Liquidity Backstop

For the CMBS Market

Backed Loan Facility (TALF) to include

both newly issued “and legacy" or existing

CMBS. CMBS are the only legacy asset class

eligible as TALF collateral.We also convinced

regulators to change TALF loan terms from

one year to five years to better match the

needs of CMBS investors and secured a

program extension beyond its original

December 2009 sunset date. Without our

efforts to restart the CMBS market, the industry

would have seen significant increases in

defaults as hundreds of billions worth of

mortgages mature in the next few years.

Secured Treasury Rules

Ease Restructuring of CMBS Loans

At the urging of NAA/NMHC and others,

the Treasury Department issued guidance

making it easier for CMBS servicers to begin

loan restructuring talks with borrowers before

the loans go into default. Prior to the

guidance, CMBS servicers triggered severe tax

penalties if they began discussions before

borrowers fell behind on their payments.

Secured Legislation

Raising FHA Loan Limits

Secured House-passage of a bill to

significantly increase the FHA per-unit loan

limits for multifamily loans in properties with

elevators. Low loan limits have essentially

excluded elevator buildings from taking

advantage of FHA construction financing.

Front row, from left, U.S. Housing and Urban Development Secretary Shaun Donovan,Treasury Secretary Timothy Geithner, Director of the National Economic CouncilLawrence Summers and Federal Reserve Chairman Ben Bernanke.

A d d r e s s i n g t h e C a p i t a l C r i s i s

L a n d m a r k s 2 0 0 9 15

Tr a n s f o r m e d O n e r o u sE n e r g y C o d e P r o p o s a l

When lawmakers targeted the builtenvironment for energy savings by passinga bill in the House that would create anational energy efficiency building code thatexceeds what is achievable with currenttechnology and economically unsupportable,NAA/NMHC convinced the Senate to consideran alternative approach that eliminatesspecific efficiency targets and timelinesand instead leaves those decisions to anEPA rulemaking.

L a u n c h e d N e w G r e e n B u i l d i n g S t a n d a r d

NAA/NMHC helped draft and launch theNational Green Building Standard, the firstconsensus-based standard for greenresidential new construction and buildingretrofits. The NGBS is an alternative to non-standardized green rating systems (such asthe U.S. Green Building Council’s LEEDcriteria) for local jurisdictions that areimplementing green building requirements.

Expanded and Improved FederalWe a t h e r i z a t i o n P r o g r a m

Capping a three-year NAA/NMHC effort,the Department of Energy issued new ruleslong sought by NAA/NMHC streamliningmaking the federal weatherization programmore accessible to apartment properties.Through the economic stimulus bill,NAA/NMHC also helped secure an increasein weatherization program funding from $400million to $5 billion, succeeded inexpanding the eligibility requirements theper-unit cap on assistance from $2,500 to$6,500.

S e c u r e d ‘ G r e e n ’ M o n e y f o rMult i family in the St imulus Bi l l

NAA/NMHC helped secure a significantamount of money for energy efficientincentives in the apartment sector in theeconomic stimulus bill, including $3.2billion for an Energy Efficiency Block GrantProgram, $2.3 billion to make energy-efficient renovations in Section 8 and other

HUD-subsidized units and an increase inweatherization funding.

S e c u r e d N e w E N E R G Y S TA RP e r f o r m a n c e Tr a c k i n g To o l

At NAA/NMHC's urging, the EPAlaunched a multifamily-specific version ofits ENERGY STAR Portfolio Manager, anonline tool allows building owners tomeasure their buildings’ energyconsumption. The development of a fullyvetted ENERGY STAR labeling program forapartments has taken on new importance aslawmakers consider “disclosure/labeling”legislation that could require propertyowners to disclose energy scores orperformance ratings of their properties.

O p p o s e d O n e r o u s I m m i g r a t i o n M e a s u r e s

NAA/NMHC were active participants inthe immigration reform debate, working tooppose burdensome legislative andregulatory requirements on employers,including efforts to make the federalgovernment’s E-Verify employee screeningsystem mandatory. We also issued memberguidance on new regulations requiringE-Verify for federal contractors.

A v e r t e d S e c t i o n 8 F u n d i n g S h o r t f a l l

NAA/NMHC helped secure $2 billion inthe economic stimulus bill for full-yearpayments for project-based Section 8properties. Our Congressional testimony in2008 encouraged Congress to take thisaction toavert the serious funding shortfallthat has beset the program in prior years.

B o l s t e r e d t h e L o w - I n c o m eH o u s i n g Ta x C r e d i t P r o g r a m

NAA/NMHC obtained Congressionalassistance for the beleaguered LIHTCprogram through two provisions in theeconomic stimulus bill. One allocated $2billion for direct equity grants to states touse as “gap financing” for stalled LIHTCprojects. The second allowed states toexchange 40 percent of their 2009 LIHTC

allocations for cash grants from theTreasury Department.

O t a i n e d I R S C l a r i f i c a t i o no n S u b m e t e r i n g a t Ta x - C r e d i t P r o p e r t i e s

NAA/NMHC led the effort to secure animportant clarification to new IRS utilityallowance regulations that confirmed theright of property owners to submeter utilitieson LIHTC properties.

S u p p o r t e d S e c t i o n 8 R e f o r mReforms long-sought by NAA/NMHC to

the Section 8 program, includingstreamlining the inspection process andestablishing a reliable funding formula,were included in a bill that passed theHouse Financial Services Committee.

P r o d u c e d L e a d - B a s e d P a i n tR e g u l a t o r y G u i d a n c e

NAA/NMHC published comprehensiveguidance and a Webinar to help firmscomply with new EPA lead safetyregulations that govern commonrenovation and repair activities in pre-1978properties.

O p p o s e d R e s t r i c t i o n s o nTe l e c o m m u n i c a t i o n s C o n t r a c t s

NAA/NMHC continued to lead the realestate industry’s long-standing oppositionto unjustified federal regulations thatinterfere with an owner’s ability to enter intoand enforce telecommunications contracts.

Secured Flood Insurance ExtensionNAA/NMHC averted a shutdown of the

National Flood Insurance Program by securingan extension of it before its expiration date.

S e c u r e d A p a r t m e n t P r o v i s i o n sin Catastrophic Insurance Legislation

NAA/NMHC expanded catastrophicinsurance legislation to include multifamilyhousing. Thanks to our efforts, the pending billauthorizes a study to explore a program to meetthe apartment industry's catastrophicinsurance needs.


16 L a n d m a r k s 2 0 0 9

For some apartment communities, it’s apool, a fitness center or proximity topublic transportation. But at 2009

NAA PARAGON Community of the YearVentura Lofts Apartment Homes inHouston, the most popular amenity is theabsence of community clutter—namely,wide, open spaces.

“There is not another property likeVentura,” says Crystal Cathey, Managerof Real Estate Finance for Sueba USACorp., Ventura’s development firm. “Noother property in Houston possesses suchhigh-end features in an infill locationwhile offering such a low-densityenvironment.”

Ventura Lofts inhabits land inHouston’s commercial Westchase District,previously occupied by a vacant two-storyExxonMobil office building. Suebademolished the office building butpreserved the existing oak trees,decreasing the amount of developableland in a district that restricts thecommunity to three stories.

In part by choice and in part bycircumstance, Sueba’s project progressedat a uniquely low density of just 31.34units per acre. In contrast, the averagedensity among comparables is 62.04units per acre, Cathey says.

“Low-density building is veryexpensive to do,” says Vice President ofVentura’s management team,Southhampton Management, SoniaLopez. “We saved a lot of trees in thedevelopment; one of our main goals was

to preserve what already existed on the site.”

Located in the sixth largest metro inthe country, Ventura is close to manythings residents want from a city whileproviding a tranquil oasis within thecommunity’s perimeter, with two andone-half acres of open land. Thecommunity is one block from urbanHouston neighborhoods in one directionand one block from expensive single-family homes in the other.

A w a r d W i n n e r sPARAGON COMMUNITY OF THE YEAR: SUEBA USA’S VENTURA LOFTS, HOUSTON

M a i n t e n a n c e M a n i a

Encouraged by a roaring crowd filled withapartment association members backing

participants from their home regions, finalistsfor the third annual Maintenance Mania®

Championship in Las Vegas entered theirarena to professional sports-style introductions,raising their arms on cue and high-fivingtheir cheering fans. Then they gave thosespectators the performances they were lookingfor, setting about every-day maintenance taskssuch as wire screen repair, faucet installationand toilet repair with lightning-quick speed.

In the end, an industry newcomer overcamea sleepless night and 19 more experiencedcompetitors to nab first place and thousandsof dollars in prizes. Jason Frotten, MaintenanceTechnician for Archon Residential at Aventineat Deerwood in Jacksonville, Fla., said hesurprised even himself with his winning time

of 2 minutes, 19.122 seconds.Maintenance technicians from VanRooy

Properties in Indianapolis took the nexttwo places with 2007 champion Herb Harrcompleting the events in 2:21.434 and AdamParker finishing in 2:31.038. Harr placedthird in 2008 and won the competition in itsinaugural year in 2007 as part of a team withcolleague Troy Shelby.

Frotten said he entered this year to havefun. About a year ago, Frotten was serving inthe Navy Reserve in Iraq. Upon returninghome, he took a job as a maintenancetechnician. “I never expected to win,” he said.“I woke up early this morning because I couldn’tsleep. I got breakfast, but I couldn’t eat.”

Mike Hendel, Senior Marketing Managerfor presenting sponsor HD Supply, credited thenewly added Maintenance Mania Spirit

Award for spectators with creating a vibrantatmosphere. “It was a frenzy,” he said.” Twoaffiliateswon the award this year: the Apartment Association of Greater Orlando and the FirstCoast Apartment Association.

IRAQ WAR VET COMES HOME, JOINS APARTMENT INDUSTRY AND WINS BIG


Herb Harr, Jason Frotten and Adam Parker

L a n d m a r k s 2 0 0 9 17

Popularity in the NAA National LeaseProgram continues to soar. Presently,more than 4,500 communities are

using the lease and a new lease is beinggenerated every two seconds duringregular business hours. It is offered in 41states, with versions for Montana andIdaho on the way.

NAA is on pace to sell 23 million leaseclicks in 2009, a record, breaking themark of 19 million sold in 2008. Nowavailable with the NAA National Lease isthe Enterprise II program, designed byBluemoon Software for large- and mid-sizeapartment firms that operate multipleapartment communities.

Enterprise II enables management toaudit their leases in multiple states withone application and in one sitting. It helpsstreamline compliance with Sarbanes-Oxleyregulations. Enterprise also enables usersto use a computer anywhere and updateall state leases over its entire portfolio ina matter of seconds, with the simple clickof a mouse.

The NAA National Lease Programquickly generates and tracks leaserenewals and pre-leases on a unit-by-unitbasis and it provides a reminder promptwhen a pre-lease becomes current. View alist of states where the Lease Programis available at www.naahq.org/lease.

L e a s e P r o g r a mPOPULARITY SOARS

Consolidated Statements of Financial* Position Year Ended Dec. 31, 2008

ASSETS

Current AssetsCash and cash equivalents $433,746Accounts and contributions receivable, net of allowance for doubtful accounts of $22,754 536,486

Prepaid expenses 578,848Inventory 33,396Total Current Assets 1,582,476

Investments 10,673,861

Property and Equipments, net of accumulated depreciation of $513,699 531,126

Deposits 78,667Total Assets $12,866,130

LIABILITIES AND NET ASSETS

Current LiabilitiesAccounts Payable and Accrued Expenses $1,371,933Deferred Revenue 2,645,046Total Current Liabilities 4,016,979

Long-Term LiabilitiesDeferred Lease Obligations 214,310Total Liabilities 4,231,289

Net AssetsUnrestricted $7,193,098Temporary restricted 289,835Permanently restricted 1,151,908Total Net Assets 8,634,841

Total Liabilities and Net Assets $12,866,130

Consolidated Statements of Activities* Year Ended December 31, 2008

Revenue and Other SuportMembership 3,686,465Education 1,305,104Meetings & Expositions 5,563,052Communications 2,229,239National Lease Program 1,545,755Government Affairs 59,376Administrative Income 360,050Contributions 669,267Net Assets Released fromRestrictions 255,204Total Revenueand Support $15,673,512

ExpensesProgram ServicesMembership $535,732Education 2,003,952Meetings & Expositions 3,018,613Communications 2,117,293National Lease Program 1,178,997Government Affairs 1,961,014Fund Raising 2,400General Administrative 3,601,275

Total Expenses $14,419,276

Change in UnrestrictedNet Assets $1,254,236

Temporarily Restricted Net AssetsContributions 140,000Investment Income (104,396)Net Assets Released from Restrictions (255,204)

Change in Temporarily Restricted Net Assets (219,600)Change in Net Assets $1,034,636

Net AssetsBeginning of Year $7,600,205End of Year $8,634,841

*Includes NAA, NAAEI and The National Accessible Apartment Clearinghouse

N A A F i n a n c i a l S t a t e m e n t

N A A L e a s e P r o g r a mCLI CKS SOLD


N A A E d u c a t i o n I n s t i t u t ePRODUCTS AND SERVI CES CREATED AND ENHANCED

NAAEI has created, developed andenhanced a variety of its products andservices, from designation

curriculum to Web-based tools. It also hasforged strong relationships with keycareer-related organizations. Following arehighlights.

C A M T P r o g r a m S e l e c t e d f o r A N S I P i l o t

NAAEI has been selected by theAmerican National Standards Institute(ANSI), a private non-profit organizationthat administers and coordinates the U.S.voluntary standardization andconformity assessment system, toparticipate in a pilot CertificateAccreditation Program (ANSI-CAP) tohave its Certificate for Apartment

Maintenance Technicians (CAMT)program reviewed by ANSI foraccreditation. NAAEI is one of 11organizations selected to participate inANSI’s pilot Certificate AccreditationProgram (ANSI-CAP).

As part of the accreditation process,ANSI will perform an audit to determinewhether the NAAEI CAMT program meetsASTM E2659-09, Standard Practice forCertificate Programs. If CAMT isaccredited by ANSI, NAAEI can use theANSI logo on certificates, curriculum andmarketing materials. More importantly,with ANSI accreditation, NAA state andlocal associations can promote CAMT asthe apartment industry training standardand aim to avoid additional state andlocal certification requirements. With

ANSI accreditation, CAMT will become asingle national standard for apartmentmaintenance and will stand out in theindustry as a truly unique and one-of-a-kindcertificate program.

N A A E I C e l e b r a t e s N a t i o n a l J o b C o r p s D a y

NAA Education Institute staffhelped to celebrate National Job CorpsDay on Capitol Hill on Sept. 23. NAAEIstaff displayed and distributedapartment career information duringthe day-long exhibit in the RayburnHouse Office Building in Washington,D.C. National Job Corps staffincluding the Interim NationalDirector of Job Corps, Lynn Intrepidi,Job Corps Center Administrators, JobCorps students and congressional staffattended.

National Job Corps Day is part of the45th anniversary of Job Corps, the largestand most successful residential andeducational workforce training programfor economically disadvantaged youth inthe United States.

Job Corps places trained facilitiesmaintenance students in work-basedlearning assignments at apartmentcommunities and eventually in full-timeapartment maintenance positions.

18 L a n d m a r k s 2 0 0 9

NAAEI celebrated National Job Corps Day.


Susan Weston, CAM, CAPS, was honoredby the National Apartment Association

Education Institute (NAAEI) with the 2009Apartment Career & Education (ACE) Award.

Weston has 30 years’ experience in theproperty management industry and hasbeen an active member for the ApartmentAssociations of Greater Dallas and TarrantCounty and the Texas Apartment Association.She regularly presents programs for affiliatesthroughout the country and is a memberof the NAAEI faculty, serving as an AdvancedInstructor Training Facilitator, CAM CommunityAnalysis Grader and NALP, CAM and CAPSsubject matter expert.

As Vice President, Learning & Developmentfor Pinnacle in Dallas, Weston guidesall learning initiatives for the company’s5,300 employees. She is responsible for

implementing strategic goals associatedwith competency identification, skilldevelopment and developing career paths,resulting in higher job satisfaction andorganization results.

2 0 0 9 A C E A w a r d sPINNACLE’S SUSAN WESTON RECOGNI ZED FOR SERVI CE TO INDUSTRY

Pinnacle’s Susan Weston, CAM, CAPS,accepts her NAAEI ACE Award from 2009NAA Chairman of the Board Ron Shelton,CAPS, and 2009 NAAEI PresidentAlexandra Jackiw, CAPS, CPM.

C A M T N a t i o n a l Tr a i n i n g In 2009, NAAEI developed its National

Training initiative. This successful initiativeincludes 320 students participating in theCAMT National Training program, 79 studentswill complete the entire certificate program withnine NAA affiliates hosting classes. In additionto following the CAMT curriculum, NAAEINational Maintenance and Safety InstructorPablo Paz, CAMT, emphasizes cost savings,safety and asks students to bring their biggestmaintenance issues to the class for resolution.NAAEI would also like to recognize HD Supplyfor its generous donation of tools, equipmentand supplies to make CAMT a truly “hands-on”experience for students. Fifteen NAA affiliatesplan to offer CAMT National Training in 2010.

NAAEI has also expanded its NationalTraining program to the CAM, CAPS and NALPcurricula and NAA affiliates have scheduledtraining for them in their areas.

N a t i o n a l M a i n t e n a n c e a n dS a f e t y I n s t r u c t o r H i r e d

Pablo Paz, CAMT, joined the NAAEI staff asits new National Maintenance and SafetyInstructor. A bilingual instructor with morethan 20 years of onsite experience and fouryears of corporate training experience, Pazformerly worked for Camden in Houston. Hewas named the Houston ApartmentAssociation’s Maintenance Supervisor of theYear in 2007. Paz instructs the CAMT programas part of the National Training initiative andassists with updates to the CAMT curriculum.

Said one of Paz’s CAMT students, “I havelearned many things in this class that willmake me a better maintenance technician. Irecommend Pablo to anyone who wants to learnabout every aspect of the maintenance field.”

J o b s f o r A m e r i c a ’ sG r a d u a t e s ( J A G )

NAAEI and the Georgia ApartmentIndustry Education Foundation hosted JAGTeacher Specialists from across the nation,who toured Icon City, a Lane Companycommunity in Atlanta. JAG specialists, whoteach more than 30,000 students, met withapartment employees in management, leasingand maintenance and toured the amenity-rich apartment community.

N A A E I N a t i o n a l S p o n s o r A t D E C A C o n f e r e n c e s

In April, NAAEI sponsored an apartmentindustry panel for 250 members of DECA’sCollege Business Management Academy andexhibited at the College Career Fair with 1,600college students in attendance. NAAEIsponsored a Bonus Case Study Competition atDECA’s Delta Epsilon Chi college conferenceand exhibited at DECA’s International CareerDevelopment Conference with more than 15,000students, advisors and parents in attendance.NAAEI also sponsored the DECA FinancialAnalysis competition for high school students.

Techn i ca l Co l l ege I ncorpora tesCAMT Curr i cu l um I n t o Program

Through a partnership with theCharleston (S.C.) Apartment Association andTrident Technical College, NAAEI’s CAMTprogram became a key part of the school’s

Facilities Maintenance Technician Program,netting many qualified graduates who nowwork in the apartment industry. The CAMTprogram was included as part of the 300 hoursof maintenance training Trident offered. Inthe inaugural class, 11 students completedthe program and nine were offered jobs byapartment and resort industry companies.

L a n d m a r k s 2 0 0 9 19

Pablo Paz, CAMT (center), with CAMT students.


L-R: Tom Shelton, CAPS, CPM, Western National Property Management; Londie Huggins, Western NationalProperty Management; Luisa Knight, Lincoln Military Housing; Alison Brown, Equity Residential; Tara AbbottDavis, BRE Properties; Daniel J. Hernandez, Pinnacle. Representing NAAEI at the national DECA conference,these industry professionals served on a panel attended by more than 250 business management college students.

Front row, left to right: Damian Heyward, Dr. Mary Thornley (President of Trident TechnicalCollege), Joshua Washington; second row: MelvinWashington, Jeremy Wright, William Freeman,Daniel Ives; third row: Gregory McCannick, TelvonCoakley, Henry Nowicki, Dwayne Norman andGralin Dunn.

T h e N A A N e t w o r k

20 L a n d m a r k s 2 0 0 9

ALABAMA• Alabama Apt. Association

205/956-1387• Apt. Association

of North Alabama256/539-2998

• Greater BirminghamApt. Association205/956-1387

• Mobile Bay Area Apt. Association251/776-4882

• River Region Apt. Assn.334/514-1780

• The Plains Apt. Association334/821-5581

ARIZONA• Arizona Multihousing

Association602/296-6200

ARKANSAS• Arkansas Apt. Association

501/664-8300• Arkansas Multi-Family

Housing Association501/664-8300

• Northwest Arkansas Apt. Association479/387-1487

CALIFORNIA• Apartment Association,

California Southern Cities562/426-8341

• Apartment Association of Greater Los Angeles213/384-4131

• Apartment Association of Orange County714/638-5550

COLORADO• Apt. Association

of Metro Denver303/329-3300

• Apt. Association of Southern Colorado719/264-9195

• Northern Colorado Rental Housing Association970/484-7754

• Colorado Apt. Association303/329-3357

• Weld County Apt. Association970/395-0225

CONNECTICUT• Connecticut Apt. Association

860/722-9922

DELAWARE• Delaware Apt. Association

302/547-9436

DISTRICT OF COLUMBIA• Apt. and Office Building


FLORIDA• Apt. Association

of Greater Orlando407/644-0539

• Bay Area Apt. Association813/882-0222

• Bay County Multi-Housing Association850/265-3569

• Capital City Apt. Association229/221-4735

• Emerald Coast Apt. Association of NW Florida850/478-4283

• First Coast Apt. Association904/292-1345

• Florida Apt. Association407/647-8839

• North Central Florida Apt. Association352/333-0333

• South East Florida Apt. Association561/447-0696

• Southwest Florida Apt. Association239/298-3028

• Sun Coast Apt. Association866/599-3037

• Tri-City Apt. Association800/276-1927

GEORGIA• Apt. Association

of Greater Augusta706/790-1688

• Athens Apt. Association706/549-0098

• Atlanta Apt. Association770/518-4248

• Columbus Apt. Association706/568-9990

• Georgia Apt. Association770/518-4248

• Mid Georgia Apt. Association478/994-8773

• North Georgia Apt. Association770/855-2000

• Savannah Apt. Association912/920-3207

IDAHO• Idaho Rental Owners

and Managers Association 208/336-9449

ILLINOIS• Chicagoland Apt. Association

847/678-5717• Illinois Apt. Association

847/678-5717

INDIANA• Apt. Association

of Fort Wayne/Northern Indiana260/482-2916

• Apt. Owners and Managers Association of Terre Haute812/232-5083

• Apt. Association of Southern Indiana 812/473-0917

• Monroe County Apt. Association812/332-0053

• North Central Indiana Regional Apt. Council317/816-8900

• Northern Indiana Apt. Council800/688-6236

• South East IndianaRegional Apt. Council317/816-8900

• Tippecanoe Apt. Association765/420-8200

IOWA• Central Iowa Apt. Alliance

515/401-0995

KANSAS• Apt. Association

of Greater Wichita316/682-3508

• Apt. Association of Kansas City913/248-0355

• Apt. Council of Topeka785/273-0640

• Kansas Apt. Association785/682-3508

• Missouri Apt. Association888/859-5192

KENTUCKY• Greater Cincinnati Northern

Kentucky Apt. Association859/581-5990

• Greater Lexington Apt. Association859/278-6540

• Kentucky Apt. Association 502/426-6140

• Louisville Apt. Association502/426-6140

LOUISIANA• Acadiana Apt. Association

337/993-3354• Apt. Association

of Greater New Orleans504/888-2492

• Apt. Association of Louisiana337/237-3773

• Baton Rouge Apt. Association225/923-2808

• Houma-Thibodaux Apt. Association985/868-5893

• Northeast Louisiana Apt. Association318/322-9927

• Shreveport-Bossier Apt. Association318/746-0000

• Southwest Louisiana Apt. Association337/477-2951

MAINE• Maine Apt. Association

207/553-7777

MARYLAND• Maryland Multi-Housing

Association 410/825-6868

• Apt. and Office Building Association202/296-3390

MASSACHUSETTS• Rental Housing Association

of The Greater Boston Real Estate Board 617/399-7849

MICHIGAN• Detroit Metropolitan

Apt. Association248/594-9803

• Northern MichiganApt. Association616/531-5243

• Property Management Association of Michigan616/531-5243

• Property Management Association of Mid-Michigan810/449-1939

• Property Management Association of West Michigan616/531-5243

• Washtenaw Area Apt. Association734/663-1200

MISSISSIPPI• Mississippi Apt. Association

703/797-0624

MISSOURI• Apt. Association

of Kansas City913/248-0355

• Columbia Apt. Association573/886-8638

• Mid Missouri Rental Properties Association573/364-1985

• Mid-Missouri Apt. Association573/635-0613

• Missouri Apt. Association888/859/5192

• St. Louis Apt. Association314/205-8844

• Southwest Missouri Rental Housing Association417/781-3337

• Greater Springfield Apt. and Housing Association417/883-4942

NEBRASKA• Apt. Association of Greater

Omaha and Lincoln402/333-5331


NEVADA• Southern Nevada

Multi-Housing Association702/436-7662

NEW HAMPSHIRE• Apt. Association

of New Hampshire603/666-4242

NEW JERSEY• New Jersey Apt. Association

732/992-0600

NEW MEXICO• Apt. Association

of New Mexico505/822-1114

NEW YORK• New York Capital Region


NORTH CAROLINA• Apt. Association

of North Carolina704/334-9511

• Cumberland County Apt. Association 910/521-7450

• Apartment Associationof Western North Carolina828/277-7290

• Greater Charlotte Apt. Association 704/334-9511

• Greenville Area Property Managers Association252/752-8900

• Triad Apt. Association336/294-4428

• Triangle Apt. Association919/782-1165

• Wilmington Apt. Association910/251-2364

NORTH DAKOTA• Bismarck-Mandan


• FM Apt. Association701/233-6245

• North Dakota Apt. Association800/990-6322

OHIO• Columbus Apt. Association

614/488-2115• Greater Cincinnati Northern

Kentucky Apt. Association859/581-5990

• Greater Dayton Apt. Association937/293-1170

OKLAHOMA• Apt. Association

of Central Oklahoma405/606-2226

• Oklahoma Multi Housing Association405/360-9917

• Stillwater Apt. Association405/377-2787

• Tulsa Apt. Association918/747-6217

OREGON• Metro Multifamily Housing


PENNSYLVANIA• Apt. Association

of Central Pennsylvania717/730-0409

• Apt. Association of Greater Philadelphia610/664-1800

• Western Pennsylvania Apt. Association412/288-9780

• Pennsylvania Apt. Association610/664-1800

RHODE ISLAND• Rhode Island Apt. Association

401/272-3963

SOUTH CAROLINA• Apt. Association

of Greater Columbia803/252-5032

• Beaufort County Apt. Association843/290-6463

• Charleston Apt. Association843/722-7585

• Myrtle Beach Apt. Association843/903-0403

• South Carolina Apt. Association803/252-5032

• Upper State Apt. Association864/242-0200

SOUTH DAKOTA• Black Hills Area

Multi-Housing Association605/394-3310

• South Dakota Multi-Housing Association605/336-7756

TENNESSEE• Apt. Association

of Greater Knoxville865/588-8961

• Apt. Association of Greater Memphis901/685-9108

• Chattanooga Apt. Association423/876-8121

• Greater Nashville Apt. Association615/365-3047

• Tennessee Apt. Association615/365-3047

• Tri-City Apt. Association423/928-5683

TEXAS• Apt. Association

of Central Texas254/939-5655

• Apt. Association of Greater Dallas972/385-9091

• Apt. Association of South East Texas409/899-4455

• Apt. Association of Tarrant County817/284-1121

• Apt. Association of the Panhandle806/355-6391

• Austin Apt. Association512/323-0990

• Big Country Apt. Association325/695-7431

• Bryan-College Station Apt. Association979/260-9842

• Corpus Christi Apt. Association361/852-2787

• Corsicana Apt. Association903/874-7165

• El Paso Apt. Association915/598-0800

• Galveston County Apt. Association409/762-8339

• Greater Longview Apt. Association903/759-3966

• Heart of Texas Apt. Association254/776-5451

• Houston Apt. Association713/595-0300

• Lubbock Apt. Association806/794-2037

• North Texas Rental Properties Association940/322-7667

• Permian Basin Apt. Association432/563-1278

• Piney Woods Apt. Association936/569-6690

• Rio Grande ValleyApt. Association956/428-5072

• San Angelo Apt. Association 325/942-1332

• San Antonio Apt. Association210/692-7797

• Texarkana Apt. Association903/223-0217

• Texas Apt. Association512/479-6252

• Tyler Apt. Association903/594-8864

• Victoria Apt. Association361/572-4686

UTAH• Utah Apt. Association

801/487-5619

VIRGINIA• Blue Ridge Apt. Council

434/971-8000• Central Virginia


• Fredericksburg Area Multihousing Association804/373-0811

• New River Valley Apt. Council540/552-8340

• Roanoke Valley Apt. Association540/989-5556

• Shenandoah Valley Apt. Association540/432-5525

• Valley Landlords Association540/941-3588

• Virginia Apt. and Management Association804/756-8262

WASHINGTON• Washington Multi-Family

Housing Association425/656-9077

WISCONSIN• Apt. Owners and Managers

Association of Milwaukee414/278-7557

• Central Wisconsin Apartment Association715/345-1897

• Wausau Area Apt. Association715/581-0160

CANADA• Investment Property Owners Assn.

of Nova Scotia902/425-3572


THE NATIONAL APARTMENT ASSOCIATION(NAA) is America’s leading advocate for quality rentalhousing. NAA’s mission is to serve the interests of

multifamily housing owners, managers, developers andsuppliers and maintain a high level of professionalism in themultifamily housing industry to better serve the rentalhousing needs of the public.

NAA is a federation of 170 state and local affiliates,comprised of more than 50,000 multifamily housingcompanies representing more than 5.9 million apartmenthomes throughout the United States and Canada. Membersin good standing of any affiliated association areautomatically considered members of NAA and entitled toNAA benefits.

Our members represent all facets of the multifamilyhousing industry: apartment owners, developers, builders,investors, leasing consultants, property managers,management executives, maintenance personnel, suppliersand other related business professionals throughout theUnited States and Canada. NAA provides a wealth ofinformation through advocacy, research, technology,education and strategic partnerships.

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