05/31/07, 8:00 A.M.

Pursuant to the e-mail notification dated May 22, 2007, the May 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: Chris Erdley, Lee Harris, Dennis Watts, Ralph Lewis, and Scott Buescher. Also present was Sam Alpert. (Doug Price, Ken Riedemann, Rick Oddo, Bill Charcut, Jerry Miller, Jim Adams, Jim Bowers and Ward Katz were absent.)

Chris Erdley called the meeting to order.

The minutes of the April 26th meeting were reviewed and discussed only in the absence of a quorum.

RENTAL REGULATION - Sam Alpert reported that he believes that some sort of rental unit regulation proposal will be introduced to the KCMO City Council by Dan Schmelzinger, the newly hired "Rental Housing Administrator", within the next few months. It is because this eventuality appears imminent that the HAA is systematically meeting with individual city council members to convey our on-going concerns that an ill-advised licensing proposal will do nothing to address the core concerns about neighborhood blighting influences. The pressure from the neighborhoods is primarily the result of lack of enforcement of existing property maintenance codes; not necessarily attributable to "absentee landlords". There appears to be movement in KCMO and other area municipalities to focus property maintenance codes enforcement efforts toward holding those residing on the premises more accountable before seeking legal recourse against the property owner. The goal from HAA's perspective is to promote uniform enforcement that doesn't distinguish between "owner occupied" and "non-owner occupied properties.

JOCO WASTEWATER UPDATE - Sam Alpert reported that he had formally criticized recent proceedings before the BOCC. Per the attached e-mail of May 16, 2007 to the BOCC, Alpert cited his disappointment over JCW's inability to move forward in a timely manner to consolidate capital and operating billings, which would immediately demonstrate a significantly improved cost-effectiveness for all concerned. Further, Alpert noted that even after spending down excessive reserve balances, basic service rate increases are projected to exceed 28% (over current rates) through 2012. Alpert noted that the current situation creates competing constituencies between JCW and the public (trust), which results in an untenable conflict for the governing BOCC. Those present raised the possibility that it seems that it would be advantageous for the County to privatize this operation in order to bring it under the purview of KCC rate increase regulation.

KCMO CITY COUNCIL CAMPAIGN CONTRIBUTION - Sam Alpert requested a recommendation to the HAPAC to respond to a request for funding from Beth Gottstein, 4th District At Large City Councilwoman. Alpert suggested a contribution in the amount of $200. Those in attendance agreed.

VENDOR SOLICITATION LETTERS / ONGOING LEGAL EXPENSE - Sam Alpert encouraged those present to continue efforts to mail vendor solicitation letters. In light of approximately $27,000 in current outstanding legal bills, as well as a real possibility of having to fund a future media campaign in opposition to a proposed licensing ordinance, soliciting more financial participation will be necessary for the foreseeable future..

HAA 2007 / 2008 ELECTION OF OFFICERS & DIRECTORS - Sam Alpert reminded those present that the attached official election ballot needed to be completed with the respective number of members' voting units; and then returned to the HAA offices no later than June 8, 2007.

NEW BUSINESS - Lee Harris reported that the Miami County Assessor is creating a state test case by which property tax valuation would include an imputed value for specific tax credits allocated to the property.

The next regularly scheduled meeting of the HAA Board of Directors will be June 28, 2007.

Another special meeting of the HAA Board (to meet with 4th district at-large candidate Doug Gamble) was scheduled for March 22nd. Sam Alpert urged as many as possible to attend. The next regularly scheduled meeting of the HAA Board of Directors will be April 26, 2007.

There being no further business to come before the Board, the meeting was adjourned at approximately 9:15 a.m.