09/30/04, 7:45 A.M.

Pursuant to the e-mail notification dated September 20, 2004, the September 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, Rick Oddo, Jim Beverlin, Jim Adams, and Ralph Lewis. Also present were Jim Bowers, Ed Jardak, Jon Bills, and Sam Alpert. (Jerry Miller, Chris Erdley, Bill Charcut, Mike Cassin, Ken Riedemann, Dennis Watts, Ward Katz, and Ron Nolan were absent.)

Awaiting the arrival of Doug Price, Sam Alpert called the meeting to order.

The minutes of the last meeting on 08/26/04, which had been previously circulated, were reviewed and approved by those present.

JACKSON COUNTY COURTS - It was the consensus of those present that the process through the Jackson County courts had improved to a significant extent, and that it appeared that the court administrators were being responsive to the HAA's grievance.

KCMO FIRE INSPECTION FEE SCHEDULE - Sam Alpert reported that the Jackson County Circuit Court held a hearing on September 10th to consider the issuance of an injunction to prevent KCMO from continuing to collect "certificate of compliance" fees while the entire lawsuit is being fully adjudicated . Judge Del Muro had taken the matter under advisement and there had been no decision on the injunction as yet.

KCMO BUSINESS LICENSE - Doug Price, Jim Bowers & Sam Alpert reported that the coalition including the HAA, AAKC, and Landlords, Inc. had agreed that it would be appropriate to pursue a dual course of attempting to persuade the City Manager to reconsider the current interpretation of an antiquated statute, while simultaneously preparing to litigate if necessary. Bowers further reported that he had begun discussions with John Franklin, Assistant City Manager, which he thought would lead to a face to face meeting with Wayne Cauthen. Those present voted to authorize Jim Bowers to prepare a declaratory petition draft.

JOHNSON COUNTY WASTE WATER - Sam Alpert and Doug Price reported that after months of deliberation the JOCO BOCC was dragging its feet in providing the relief HAA has insisted upon. It was suggested by those in attendance that in preparation for an October 14th BOCC work session it would be prudent to begin contemplating litigation in the event that the county does not respond favorably to our demands for a timely resolution. Alpert recommended that the BOCC should be alerted to the fact that the HAA is considering litigation at the October 14th session. Alpert and Price further advised that it would be HAA's burden to refute the county's rate setting methodology if legal action proceeds. This would necessarily entail the engagement of a nationally renowned civil engineering consultant to perform an in-depth system wide analysis, which would clearly demonstrate the current lack of equity in assessing multifamily properties relative to their respective utilization of waste water services and facilities.

RENTAL UNIT LICENSING - It was suggest that the KCMO Registered Agent statute be circulated prior to next Board meeting for discussion at that time.

VOTER REGISTRATION - Doug Price reported that his firm had received good response in encouraging residents to register before the Kansas and Missouri general election cut off dates.

KANSAS USER FEE LEGISLATION - Lee Harris provided a draft bill to be introduced by KS State Rep. Dean Newton that would effectively require a municipality to conduct an independent audit to establish the efficacy and equity of any new proposed "user" or "service" fee. Harris also circulated an article he authored for "Apartment Finance Today", a widely circulated national industry publication. In the article he articulated common concerns of apartment owners throughout the country regarding the onslaught of a seemingly endless stream of new fees, taxes, and over-regulation.

It was agreed that it would be beneficial to explore the possibility of a cooperative purchasing arrangement at the next Board meeting.

The next meeting of the HAA Board of Directors is tentatively scheduled to be held on Thursday, October 28, 2004, 7:45 a.m. at the HAA offices, 2405 Grand, Suite 106, KCMO.

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