01/27/05, 8:00 A.M.

Pursuant to the e-mail notification dated January 18, 2005, the January Heartland Apartment Association Board of Directors meeting was held at the above stated date and time at the HAA offices, 2405 Grand, Suite 106, Kansas City, MO 64108.

Board members present were: Lee Harris, Rick Oddo, Chris Erdley, Dennis Watts, and Ralph Lewis. Also present were Jim Bowers, Tom Anderson, Joe Schoonover, and Sam Alpert. (Doug Price, Jerry Miller, Ward Katz, Ken Riedemann, Jim Beverlin, Jim Adams, Mike Cassin, Bill Charcut, and Ron Nolan were absent.)

Rick Oddo called the meeting to order.

The minutes of the last meeting on 12/02/04, which had been previously circulated, were reviewed and approved by those present.

KCMO FIRE INSPECTION FEE SCHEDULE - Sam Alpert reported that subsequent to Judge Del Muro's handing down her decision to deny our motion for a preliminary injunction, Lathrop & Gage contacted the City Attorney's office to get an indication of how they viewed the decision. Not surprisingly, they agree with our initial assessment that her decision favored our argument. The judge qualified her decision stating that she believes the plaintiffs (BOMA / HAA) have demonstrated they have an "adequate remedy at law" in addressing the constitutionality of the city ordinance in question, and therefore, the plaintiffs would not qualify for injunctive relief, which is granted only when such remedy is not available. The City acknowledged its concern over the decision, indicating that they would be interested in seeking a settlement prior to the matter being placed on a spring docket.

KCMO BUSINESS LICENSE - Jim Bowers and Sam Alpert reported that both a political and a legal resolution are being sought simultaneously. A detailed letter seeking relief will be sent to Mayor Barnes while meetings are scheduled to seek a consolidation of legal actions among a number of plaintiffs, some of whom are not presently affiliated with the HAA. There will be efforts made to both enroll non-affiliated plaintiffs in the HAA and / or to equitably distribute the costs of litigation among the various plaintiffs. Prospective named plaintiffs will ideally need to be seen as being in compliance with respect to having filed profits tax returns or paying the occupational tax under protest.

JOHNSON COUNTY WASTE WATER - Sam Alpert and Jim Bowers reported that negotiations were underway with Johnson County to arrive at a settlement of delinquent waste water accounts. It was noted that of approximately $698,000 of total delinquencies attributed to multifamily properties, HAA member properties constituted all but about $18,000 of the total amount of accounts outstanding.

JACKSON COUNTY COURTS - Ralph Lewis and Jim Bowers led a discussion on the merits of pursuing various legal and legislative scenarios designed to bring the court into compliance with state law. It was determined that until specific documented instances of cost burden to owners resulting from undue delays in docketing and post judgment action could be effectively presented to the court, there was little chance of achieving a meaningful resolution.

KANSAS USER FEE QUALIFICATION LEGISLATION - Lee Harris reported that Kansas "user fee" legislation being introduced by Leawood Representative Dean Newton had already received favorable response from other key legislators. At the behest of Rep. Newton, Harris requested comments and suggested changes to the draft bill that was circulated last fall. Those present agreed that the language should be as clear as possible to declare any local ordinance adopted in non-compliance with the proposed state mandated procedure to be considered automatically null and void. It was further agreed that Rep. Newton should receive much deserved support from HAA and other Kansas stakeholders.

PURCHASING COOP - Dennis Watts reported that the AAKC would support an initiative designed to maximize purchasing efficiencies among AAKC and HAA owners. Rick Oddo expressed his desire to place a greater cooperative purchasing emphasis on apartment marketing publications and locator services. The first step will be to determine whether our collective properties will constitute a large enough buying contingent. It was decided at the December meeting to test the market limiting the initiative to appliance purchases only in order to establish procedures for a periodic bid process.

Sam Alpert reported that he had been contacted by the Johnson County Regional Prevention Center as a part of their "Methamphetamine Prevention Project" outreach. Dennis Watts indicated that the AAKC would probably have an interest in jointly promoting a coordinated industry forum with the HAA. It was agreed that further discussion would follow.

The next regularly scheduled meeting of the HAA Board of Directors is scheduled to be held on Thursday, February 24, 2005, 8:00 a.m. at the HAA offices, 2405 Grand, Suite 106, KCMO.

There being no further business to come before the Board of Directors, the meeting was adjourned at approximately 9:45 a.m.