08/31/06, 8:00 A.M.

Pursuant to the e-mail notification dated August 21, 2006, the August 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, Chris Erdley, Rick Oddo, Scott Buescher, Jim Adams, and Dennis Watts. Also present were Jay Paussa, Rick Noon, and Sam Alpert. (Jerry Miller, Ken Riedemann, Bill Charcut, Ward Katz, Ralph Lewis, and Jim Bowers were absent.)

The minutes of the last meeting on 07/27/06, which had been previously circulated, were reviewed and approved by those present.

MISSION, KS RENTAL UNIT LICENSE & INSPECTIONS-
Rick Noon of the Johnson County Landlords and Sam Alpert reported that a significant multifamily unit license fee and interior inspection program is now under consideration by the Mission City Council, and will likely advance for full Council approval within the next few weeks. The final opportunity for public testimony would be on September 13th. The HAA views this as a test of a general proposition that, if the program as presented is adopted by Mission, other local municipalities would be encouraged to enact similar legislation, thereby adversely affecting apartment owners throughout the metro area. Sam Alpert encouraged everyone to communicate concerns to the City of Mission officials as well as to turn out to testify in person on September 13th.

PENDING LITIGATION- Sam Alpert reported both the KCMO Fire Inspection Fees and Business License cases are proceeding through the courts. HAA is anticipating that these cases could be docketed simultaneously, and in the case of the Business License it is possible that there may be both federal and state trial proceedings undertaken at the same time. Mr. Alpert emphasized the need to sustain this intense activity through solid funding of the legal effort. The introduction of the Mission KS license issue (noted above) creates added pressure to ensure that the HAA can continue to mount a robust legal challenge, especially when lacking the capacity to do so would undoubtedly result in widespread adverse legislation and regulation.

NOVEMBER 7TH ELECTION - Sam Alpert reported that since the last HAA Board meeting in July, the KCMO City Council enacted enabling legislation to place a prospective fire inspection fee schedule before the voters on November 7th. This is in keeping with state law, and will require the HAA to fund and coordinate a campaign in opposition to the ballot issue. Mr. Alpert will prepare a plan outlining strategy and required funding.

KCMO RENTAL UNIT REGULATION - Sam Alpert reported that KCMO had retreated from a position of placing a new codes compliance and inspection program before the voters on November 7th. Instead the Mayor has recommended that a new office of "Rental Unit Administrator" be created to oversee a more effective codes compliance and enforcement regime. The HAA supported this initiative with the understanding that that a public advisory group, as recommended by the Rental Unit Regulatory Task Force, be convened as soon as possible to assist with the creation the new office and implementation of a more efficient and cost-effective codes compliance program.

2007 MEMBERSHIP DUES & SPECIAL FUNDING REQUIREMENTS-
Sam Alpert asked the Board to consider a regular membership dues increase, as well as a special funding infusion to meet current legal and PR requirements. After discussion it was unanimously determined that a membership dues increase to $5.00 per unit should be implemented, and that in addition to the special request of $1.50 per unit (to meet immediate needs), a general funding appeal letter with multiple owner signatures would be submitted to all vendors not currently affiliated with the HAA. Sam Alpert requested that a common format mail merge list be assembled to facilitate a time sensitive and cost effective solicitation mailing.

The next regularly scheduled meeting of the HAA Board of Directors will be September 28, 2006.

There being no further business to come before the Board, the meeting was adjourned at approximately 9:35 a.m.