02/23/06, 8:00 A.M.

Pursuant to the e-mail notification dated February 13, 2006, the February  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: Doug Price, Lee Harris, Jim Beverlin, Jim Adams, Bill Charcut, Rick Oddo, and Ralph Lewis. Also present were Municipal Court Judge Wayne Cagle, Jim Bowers,   and  Sam Alpert. (Chris Erdley, Jerry Miller, Ward Katz, Dennis Watts, and Ken Riedemann  were  absent.)

The meeting was  called to order and introductions were made.

The minutes of the last meeting on 01/26/06, which had been previously circulated, were reviewed and approved by those present.

KCMO RENTAL UNIT REGULATION TASK FORCE- Sam Alpert reported that subsequent to the January 26 meeting he had met with Doug Price, and Jim Bowers to discuss concerns that had been raised.  Jim Bowers recommended that Municipal Court Judge Wayne Cagle be invited to the February HAA Board meeting to help shed some light on what effective city remedies exist with regard to addressing problem landlords. In response to that invitation Judge Cagle agreed to attend  and participate in a Q&A session. Judge Cagle indicated that from his perspective systematic rental unit inspections would prove beneficial in shifting from a “complaint based” program to a more universal codes compliance routine in which rental units would be inspected  by officials on a scheduled basis. HAA members noted their skepticism  that a new costly inspection regime would not  address the neighborhood concerns over “blight” caused through property neglect,  and that such a new program could lead to selective enforcement abuses in addition to creating an unwarranted cost burden for countless responsible landlords. The Q&A  exchange resulted in the recognition that there is probably  a need to enact MO legislation that clearly facilitates a separate civil action (injunctive relief) to prevent repeat and habitual codes offenders from continuing to operate within the state. This would more readily enable codes enforcement efforts to be targeted toward the relatively small number of  “bad apples”, thereby reducing the requirement to beef up the number of inspectors and associated administrative  staff.  At the conclusion of these discussions Judge Cagle departed the meeting.

KCMO BUSINESS LICENSE- Jim Bowers reported that an interrogatory and a request for production of  relevant documents had been submitted to KCMO earlier in the week, and that the clock had begun running on an initial 33 day response requirement. Members were cautioned that while the City has 33 days to respond, no one should be surprised if they (the City) request an extension of  time.

JOCO WASTEWATER - Sam Alpert reported that the previously submitted joint communication to the JOCO BOCC and WaterOne had yet to receive a response. He indicated that he was not surprised at the lack of a response at this time, as the matter may have required some time to make its way to the regular dockets of  both the BOCC and WaterOne. It was suggested that a number of  companies with “standing” as constituents of  the Metropolitan Development Community Advisory Council  make independent inquiries  as to the status of  the BOCC and WaterOne respective consideration of the communication. Lee Harris indicated that it might be worthwhile to review the original enabling JOCO resolution to see if the BOCC had proceeded as intended.

KCMO FIRE INSPECTION FEES- Sam Alpert reported that a final court order had been received and that certain attorneys fees associated with lobbying activities and the attempted referendum initiative had been disallowed by the judge. The receipt of the final order triggered the filing of an “official notice of appeal” by the City. It is anticipated that it could take at least 9-12 months for the MO Court of Appeals to take up the matter. In any event, this would be the intermediate step, assuming the City would request the MO Supreme Court to take up the case if the plaintiffs prevail at appeal. The MO Supreme Court retains the prerogative to either to hear the case after appeal, decline to hear the case after appeal, or to reach down and take the case and eliminate  the  appellate step altogether. It was also learned that the City is preparing a ballot issue on the matter to submit to the voters, probably next fall. If and when we receive confirmation of a ballot proposal, it will be incumbent on the plaintiffs to mount an effective election campaign to defeat the proposal.

KS HB 2592- Sam Alpert reported that the bill introduced to protect landlords from unpaid tenant contracted utility obligations was making its way through the legislature and appears to have sufficient support to pass. While the primary  intent of the bill appears to be in  the owner’s best interest, Ralph Lewis had previously pointed out that it provided that in the event of an owner’s non-payment of an obligation for which the owner is clearly responsible, the damaged party could file a lien that would be senior to the mortgage on the same basis as a tax lien. Sam Alpert had passed this concern on to Representative Miller, but had not received any further response.

KS SB 380- At the January meeting, Ralph Lewis brought a proposed bill to the attention of the Board, which attempts to rewrite significant sections of the KS  Residential Landlord and Tenant Act. The changes would significantly limit remedies now available to a landlord with emphasis on  allowable amounts and disposition of  respective security deposits.  This bill, having  its  origins among college student advocates,  will need to be closely monitored by all interested parties. Meanwhile, attempts are being made to identify specific legislative sponsors of the bill.

Doug Price  and  Sam Alpert indicated that there is an effort underway in Overland Park to modify portions of the Fire Code, which would effectively eliminate all “open flame” cooking grills on multifamily properties. Sam Alpert indicated that he was following up with OP officials to get the full story.

Jim Beverlin reported that he had been made aware of pending changes in EPA lead based paint abatement regulations that could require a much higher standard of technical certification when making property improvements, such as replacing windows.

Jim Bowers reported that some Jackson County owners are receiving “2005 partial property tax assessments” that appear to retroactively increase assessment valuations.

The next regularly scheduled meeting of the HAA Board of Directors will be held on March 30, 2006.

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