01/25/07, 8:00 A.M.

Pursuant to the e-mail notification dated January 15, 2007, 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, Chris Erdley, Ken Riedemann, Bill Charcut, Dennis Watts, and Jim Bowers. Also present were Jay Pausa and Sam Alpert. (Doug Price, Jerry Miller, Rick Oddo, Jim Adams, Ward Katz, and Ralph Lewis were absent.)

The minutes of the last meeting on 11/30/06, which had been previously circulated, were reviewed and approved by those present.

MARC SEVERE STORM PROTECTION MODEL ORDINANCE ("SAFE ROOMS") - Sam Alpert reported that a model code ordinance on the requirement for a safe haven in the event of severe weather will shortly be circulated by MARC to municipalities throughout the region. Logistics on specific multifamily properties will make such a requirement difficult to meet, regardless of cost. It also remains a serious concern that the introduction of a "model ordinance" may eventually lead to some municipalities imposing onerous retrofit requirements on existing multifamily properties, as opposed to enacting prospective new construction requirements. It is intended that the submission include a preface that explains that the model is not a recommendation, but rather serves as guidance to those municipalities who may choose to enact an ordinance of this type. Housing providers in general (HBA, HAA, and mobile home manufacturers) have expressed their concerns regarding cost benefit and effectiveness of such a specific requirement that in all likelihood may never be utilized.

RENTAL REGULATION - Sam Alpert reported that since the last meeting Mission Ks. had enacted rental license ordinance, and that Lenexa, Shawnee, and Overland Park had all stated intentions to pursue some form of additional rental regulation. It had been reported that in the case of Overland Park, city officials were most concerned about the neighborhood blighting effect of single family, duplex and four-plex rental units; and would seek to specifically regulate those rental units. Alpert said that he would attempt to meet with the codes enforcement staff as soon as possible to determine what they might have in mind.

KCMO CLIMATE PROTECTION - Sam Alpert reported that he had been requested to serve on a KCMO "Climate Protection" task force, which is seeking ways to significantly reduce "greenhouse gas" emissions within the city limits.

JOCO WASTEWATER / WATERONE - Sam Alpert reported that he and Doug Price had met with Charlotte O'Hara, Ed Eilert, and Robert Olson to discuss cooperative ways in which to increase better operating efficiencies to the benefit of JOCO utility ratepayers, while working to address the core concerns regarding wastewater operations that have been conveyed by the HAA over the past four years. Olson, the Kansas House majority whip, thought there may be merit in pursuing state legislation to reign in the BOCC, but he was uncertain regarding the "home rule" implications. Meanwhile, it was agreed that we will need to keep the pressure on to make sure that our concerns are receiving the consideration they deserve.

PENDING LITIGATION (KCMO BUSINESS LICENSE)- Jim Bowers reported that the pending KCMO Business License litigation is at a critical juncture when discovery activities will cause legal expenses to increase significantly. It is anticipated that at least another $50,000 will need to be raised in order to conduct the discovery necessary to go to trial when docketed sometime soon, as well as to satisfy the bills accrued to date.

Mr. Bowers also presented a brief report on the cumulative legal matters on which his firm has open case files on the HAA's behalf since 2003. It was informative in that it illustrated why the HAA finds it necessary to obtain special funding to cover these extraordinary expenses. Once the HAA undertook an aggressive campaign to address matters including the pending KCMO Business License Tax, the Jackson County Courts regarding expediting rent and possession cases, JOCO Wastewater rate dispute, OP Storm Water assessment fairness issue, Mission KS. Rental Licensing, and various other lesser issues, Mr. Bowers's firm had billed the HAA a total of $106,222, of which HAA had paid $72,006 to date. These costs were in addition to another major lawsuit (still pending) challenging the KCMO fire inspection fees beginning in 2003 (BOMA & HAA vs, KCMO), and handled by Lathrop & Gage at an additional cost of approx. $50,000 to HAA over the same period of time. It is conceivable that some of these costs are recoverable to the extent that HAA prevails in its claims for attorneys' fees, but at this juncture it is impossible to know if and when such reimbursements can be reasonably expected to be received.

Lee Harris suggested that more needs to be done legislatively in Kansas to ensure an improved allocation of affordable housing tax credits in conjunction with other associated housing preservation funding resources.

The next regularly scheduled meeting of the HAA Board of Directors will be February 22, 2007.

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