6/26/03, 7:45 A.M.

Pursuant to the e-mail notification dated June 16, 2003, the April Heartland Apartment Association Board of Directors meeting was held at the above stated date and time at the offices of Oddo Development Co., 8460 Nieman Road, Overland Park, KS.

Board members present were: Doug Price, Chris Erdley, Rick Oddo, Nick Moos, Ralph Lewis, Brent Blake, and Ken Riedemann. Also present were: Dennis Watts, Peter Engelman, Jim Beverlin, Mike Cassin, Phil Bird, and Sam Alpert. (Ward Katz, Bill Charcut, Lee Harris, Ron Nolan, Jim Adams, and Jerry Miller were absent.)

Doug Price introduced Phil Bird and called the meeting to order.

The minutes of the last meeting on 05/29/03, which had been previously circulated, were reviewed and approved by those present.

FHEO/ HUD- Sam Alpert reported that he had not received response from a follow-up letter he had written to Macie Houston subsequent to the May 15th meeting with HUD. He had , however, received a letter from Floyd May, under secretary at HUD, acknowledging the stated intent of the meeting. It was brought to the attention of the HAA Board that there remain recent instances of frivolous claims that are currently under investigation by HUD. The HAA will persist in attempting to drive home the necessity for HUD to practice any and all discretion it has in assessing the merit of claims of housing discrimination.

JACKSON COUNTY COURTS- Ralph Lewis reported that the presiding judge admonished the court staff to adhere to the statutory requirement to docket cases in a timely manner. However, there is concern that due to state budget cuts, court employees are being asked to take a 20% reduction in pay, while at the same time, courts will close one day a week. Whether or not this is likely to occur, there is great uncertainty as to the ability to make any marked improvement in expediting the process in light of the current
fiscal considerations.

OVERLAND PARK STORM WATER UTILITY- Sam Alpert and Doug Price reported that Larry Winn, on behalf of the HAA has met preliminarily with the OP Public Works staff to determine what level of support they might provide in getting the city council to revisit the user fee issue. There will be continued effort to lobby key council people on the merits of restructuring the storm water user fee assessment to more accurately reflect the run-off generated by apartments and smaller residential dwelling units.

JOHNSON COUNTY WASTE WATER- Sam Alpert and Doug Price reported that a series of meetings with the Johnson County Waste Water staff and the JoCo Board of County Commissioners has resulted in a recognition that some change in the way apartments are assessed may be necessary to achieve the originally intended "user fee" supported system. A constituency comprised of small Johnson County landlords and single family residents is taking HAA's lead in delivering a strong message that the current system contains serious flaws. After discussion, it was decided by those present to instruct Alpert and Price to pursue a resolution that would reduce the AWWU base months to just January and February, which would most accurately reflect average winter water usage in apartments. It was also suggested that every effort be made to engage JoCo Water District 1 in a cooperative effort to assist the county in billing for waste water. This would greatly reduce the billing cost burden, while enhancing the efficiency of administering operations and maintenance of the entire waste water system.

It was reported that notices of delinquent business licenses had been received by several properties. Sam Alpert was asked to ascertain what revenues were being taxed (gross rental income vs. management fee income).

Sam Alpert reported that a landmark "forced access" case in Texas had suffered a setback as the courts have so far rejected the "taking of private property" argument. BOMA International has pledged to support the appeal of the latest decision.

Dennis Watts provided those present with copies of a University of Missouri study entitled "The Missouri Tax Structure and Education Funding". The study, commissioned by the Missouri Apartment Association "(and Various Missouri School District Associations)", examines alternatives to property taxation for purposes of funding public schools.

Sam Alpert reported that he had attended a briefing on "Sarbanes-Oxely", the "whistle blowers'" legislation resulting from the corporate scandals of late. He indicated that his assessment of the act is that property managers employed by publicly traded companies, or federally assisted properties, may now be held to a much higher accounting and reporting standard.

It was reported that the U.S. Postal Service is seeking to case owners to retrofit all mail boxes to accommodate a larger volume of mail.

The next meeting of the HAA Board of Directors is tentatively scheduled to be held on Thursday, July 31, 2003, 7:45 a.m. at the offices of Oddo Development Co., 8460 Nieman Road, Overland Park, KS. Due to vacation schedules there will be a poll of the Board on about July 20th to determine whether a significant reduction in meeting attendance should result in a recess (no July meeting) until reconvening late in August.

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