08/28/08, 8:00 A.M.

Pursuant to the e-mail notification dated August 18, 2008, 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: Chris Erdley, Lee Harris, Scott Buescher, Rick Oddo,  Bill Charcut, Dennis Watts, Jerry Miller,  and  Jim Bowers. Also present were Lenora Carpenter, Jason Charcut, Doug Clements, David Andrews, Henry Lyons and Sam Alpert. (Doug Price, Ward Katz, Ralph Lewis,  and Ken Riedemann were  absent.)

Chris Erdley presided and convened the meeting, introducing Jason Charcut of the Neighborhood  Group and Doug Clements of Price Management Co.

The  minutes of the August  31, 2008 meeting were reviewed  and approved  by those present.

KCMO TRASH REBATE- As reported in July by  Jim Bowers and Sam Alpert,  after the KCMO Transportation & Infrastructure Committee passed an ordinance to terminate the trash rebate program  out of committee to be adopted by the full City Council,  they had conferred with a number of council members  to advise them of the City’s potential legal exposure. Subsequent to  these communications, the full City Council referred the ordinance back to the Finance & Audit Committee for further consideration. On August 21st, Ordinance 080858 was introduced to be heard in the Finance & Audit Committee on September 3rd. The measure provides for an emergency   appropriation  from the General Fund  in the amount of  $800,000 to be used to bring unpaid trash rebates current , and to fund the program through October 31, 2008. There is no way to know at this juncture what the City’s thinking might be in terms of a permanent resolution,  but the HAA has already made it clear  that it will  vigorously pursue an equitable settlement.  Many in attendance expressed frustration over the fact that  the HAA continues to be  forced to expend significant resources just to  recover  what has been  unlawfully taken through the City’s arbitrary termination of the program. Sam Alpert suggested that a special assessment of at least $3.00 per KCMO unit (approximating  one month’s trash rebate) would be in order to fund  the HAA’s legal costs incurred  in this process.  Those in attendance agreed. 

In a  related discussion, concerns were  raised as to whether apartment owners are being singled out as specific targets of  burdensome government imposition.  Jim Bowers pointed out  that  a number of other (non-multifamily) real estate and development community associated  interests have expressed similar concerns,  and that  only  a consistent  effort that  suggests  both  financial strength and political consequence would  be effective.  

Sam Alpert reported that he, Jim Bowers and Chris Erdley  had made a formal presentation requesting a significant legal defense financial contribution from the KCRAR  Commercial Division.  Word had been received that the request was advanced to the full KCRAR Board with a recommendation from the Commercial Division  to participate.

Henry Lyons suggested that  current communication of our concerns within the context of housing affordability  (through newsletters) to our residents  would be a valuable tool in establishing  a strong supporting constituency. Those in attendance agreed , and Lee Harris offered  some staff support  to help facilitate this initiative.

KCMO BUSINESS LICENSE LITIGATION- Jim Bowers and Sam Alpert updated those present on the current status of ongoing  negotiations with both the City Council & City Attorney. Pending these talks, and upon the joint  request of the parties to the lawsuit,  Jackson County Circuit Court Judge O’Malley  granted a one year continuance.  At the request of the City Attorney the HAA has outlined its relative “point of beginning” with respect to  restructuring  the business license funding requirement to a flat fee basis  (cost per unit as opposed to paying on a  gross receipts calculation). This is  being advanced with some understanding that  the City may choose to address only  the passive ownership of  multifamily rental units, and not  speak to the gross receipts approach  to any other type of income property.  There has been no further progress other than  a communication from  Councilwoman Beth Gottstien  that we should expect  to hear soon from Steve Walsh in the City Attorney’s office.

KCMO, Lenexa, Mission Rental Registration / Licensing Programs-  Dennis Watts observed that  Lenexa’s program  had accomplished nothing more than to generate revenue to the City.  Mr. Watts also reported that Mission’s program is seen to have a need to generate unnecessary  citations just to validate the outside engineering firm’s  continuing  contract with the City;  which, as previously reported has created an inappropriate and unethical   financial motivation to  over-regulate rental properties.  Sam Alpert requested some specific case history, which might be used to  enter into discussion with City of Mission officials.

RATIFICATION OF TWO NEW BOARD MEMBERS-  Sam Alpert requested that  the Board ratify the seating of  two additional Board members……..Lenora Carpenter of Resource Residential  and Jason Charcut of  The Neighborhood Group .  A motion for ratification was made , seconded, and  was unanimously approved by the Board. See attached Officers and Directors  roster that  reflects this addition.

AAKC / HAA   LEGISLATIVE FUNDRAISER-  Lenora Carpenter reported that the AAKC / HAA  legislative fundraiser  to be held on September 6th  was needing some additional promotion. Both HAA and  IREM were posting the information on their respective web-sites and utilizing e-mail lists to get the word out.   Volunteers for the event were also needed.

NEW BUSINESS-

Chris Erdley  requested that  HAA members  consider  a cooperative promotion of IREM professional development  education programs, which have been  nationally recognized  as a high quality offering for many years.

The next regularly scheduled HAA Board of Directors meeting will be held on Thursday, September 25, 2008.

There being no further business to come before the Board, the meeting was adjourned at approximately  9:05 a.m.