07/26/07, 8:00 A.M.

Pursuant to the e-mail notification dated July 17, 2007, the July 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, Ralph Lewis, Rick Oddo, Bill Charcut, Jim Bowers, Dennis Watts, and Scott Buescher. Also present were Jay Stock, Henry Lyons, Christine Lee, Debbie Haukenberry, and Sam Alpert. (Doug Price, Chris Erdley, Ken Riedemann, Jerry Miller, Jim Adams, and Ward Katz were absent.)

In Doug Price's absence Sam Alpert called the meeting to order.

The minutes of the May 31st meeting were distributed, but were not formally reviewed and approved by those present, as the meeting proceeded immediately to the agenda item on "Rental Unit Regulation Initiatives". (Note- As the May 31st meeting lacked a quorum, minutes of both the April 26th and May 31st meetings have yet to be approved.)

RENTAL REGULATION - Sam Alpert reported that two strong simultaneous rental regulatory initiates in KCMO and Lenexa, respectively, would require a focused industry effort in opposition over the course of the next several months.

With respect to KCMO, Jay Stock and Henry Lyons provided perspectives of both small landlords and neighborhood preservation advocates. They and Sam Alpert elaborated on a strategy that would bring organized neighborhoods, investment property owners, tenants, and the City Council together in a common goal to focus limited City resources on identifiable properties and neighborhoods in decline. The emphasis is on wide-spread community cooperation and empowerment to effectively address blight without imposing a disproportionate financial burden on just investment property owners.

With respect to Lenexa, Sam Alpert reported that within the next month the City Council would likely adopt an expensive new rental licensing provision unless at least five council members could be convinced otherwise. The measure, if adopted in its present form, would charge rental property owners an annual license / registration fee of an initial $75 per property plus $20 per unit. The City would then require registrants to fill out and submit a "self-assessment" of codes compliance. The City would perform periodic "external" property maintenance inspection on an infrequent 2-3 year schedule, and would perform interior inspections only upon request from the owner or tenant. Follow-up to such a requested initial internal inspection or to confirm an exterior remedy, depending on the total number of visits required, could result in substantial additional administrative City charges added to the direct cost of correcting the "alleged", and many times highly subjective deficient property condition. It was apparent to Bill Charcut, Sam Alpert, and others who testified on the proposed ordinance on July 17th that there is currently a clear predisposition on the part of the majority of the City Council to adopt this burdensome provision. Today's meeting attendees were in general agreement that nothing short of taking a strong opposing position that demonstrates a far reaching public out-cry against such an unwarranted measure would succeed in turning the tide. It was agreed by all to pursue an intensive communications campaign in the coming weeks, which would include engaging and encouraging tenants and business interests to contact the City Council and staff to express their strong opposition to this regressive policy. It was agreed that Sam Alpert would develop a tenant notification letter that would encourage their personal response to the City.

JOCO WASTEWATER UPDATE - Sam Alpert reported that the JOCO BOCC has approved a 4% rate increase for 2008 and that JCW rates are scheduled to increase by 28.5% through 2012. Beginning in 2008, the rate increase will include a shift in "infiltration and inflow (I&I)" from capital to an operating expense allocation. It is the stated intent of JCW to gradually increase the I&I allocation until 65% of this cost is covered in the customer service charge. HAA continues to be a lone "voice in the wilderness" in opposition to these increases. We hope to convince BOCC that it is in the best interest of all Johnson County residents to consolidate the capital and operating expense into one periodic billing. We have been told that this may be accomplished by 2009.

HAA 2007 / 2008 ELECTION OF OFFICERS & DIRECTORS - Sam Alpert distributed an official slate of HAA 2007 / 2008 officers and directors, effective as of July 1, 2007.

The next regularly scheduled meeting of the HAA Board of Directors will be August 30, 2007.

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