11/30/06, 8:00 A.M.

Pursuant to the e-mail notification dated November 20, 2006, the November / December year-end 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, Rick Oddo, Bill Charcut, Jim Adams, Dennis Watts, and Ralph Lewis. Also present were KCMO City Councilman Charles Eddy, and Sam Alpert. (Doug Price, Chris Erdley, Jerry Miller, Ken Riedemann, Ward Katz, and Jim Bowers were absent.)

Sam Alpert convened the meeting and introductions were made.

KCMO MAYORAL CANDIDATE CHARLES EDDY - Sam Alpert introduced KCMO mayoral candidate Charles ("Chuck") Eddy , who responded to questions regarding a number of city policy matters and industry specific concerns. Upon being advised that the HAA had been frustrated at being denied an opportunity to meet face to face with City Manager Wayne Cauthen, Councilman Eddy pledged to arrange for such a meeting to provide us an opportunity to convey a number of business community grievances in person. Upon completion of the Q & A session, Councilman Eddy departed the meeting.

The minutes of the last meeting on 10/26/06, which had been previously circulated, were reviewed and approved by those present.

MISSION KS. RENTAL LICENSE ORDINANCE - Sam Alpert reported that he had accused Mission City Council members of "over-reaching" in their efforts to enact new legislation that could be construed as a means by which owners can be deprived of certain due process, which could result in their having a license improperly denied or revoked, effectively putting them out of business. The Board discussed the consequence of such an ordinance being adopted within the context of how it would be viewed throughout the greater metropolitan area as a model to be emulated.

PENDING LITIGATION (KCMO BUSINESS LICENSE) - Sam Alpert reported that the pending KCMO Business License litigation is at a critical juncture when discovery activities will cause legal expenses to increase significantly. He went on to remind the Board that on November 7th, the same day that KCMO "Question 1" was defeated at the polls, oral arguments on our fire inspection fee case were made before the Missouri Western District Court of Appeals. It is anticipated that a decision will be forthcoming within 75-90 days of the trial date. Until these major issues are finally resolved, the HAA will find it necessary to seek special funding in support of these critical efforts.

MARC SEVERE STORM PROTECTION MODEL ORDINANCE ("SAFE ROOMS") - Sam Alpert reiterated a previous report that he and Ward Katz attended the MARC meeting on October 12th to discuss the objectives of a metro-wide model ordinance on "safe rooms". It remains a serious concern that the introduction of a "model ordinance" may eventually lead to some municipalities imposing onerous retrofit requirements on existing properties, as opposed to enacting prospective new construction requirements. MARC had scheduled a follow-up meeting to address this and other concerns.

2007 PROJECTED BUDGET & SPECIAL FUNDING REQUIREMENTS- Sam Alpert addressed a previously circulated projected operating (deficit) budget for review and approval . It was agreed by those in attendance that, taking into account accelerating legal expenses being incurred, the coming year will require extraordinary funding efforts.

Ralph Lewis reported that it was probable that the Jackson County Circuit Court would institute a "high volume" tenant / landlord docket (most likely presided over by Judge Charles Stitt) in order to better expedite the significant case load.

Lee Harris suggested that in light of Charlotte O'Hara's strong showing in her race for BOCC Chairperson, she might be a good candidate to encourage toward other elected opportunities.

The next regularly scheduled meeting of the HAA Board of Directors will be January 25, 2007.

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