Pursuant to the memorandum dated December 12, the December Heartland Apartment Association Board of Directors meeting was held at the above stated date and time at the offices of Midland Property Management, 2001 Shawnee Mission Parkway, Mission Hills, Kansas.

Board members present were: Doug Price, Rick Oddo, Jerry Miller, Lee Harris, Ron Nolan, Bill Charcut, Chris Erdley, and  Brent Blake. Also present were: Peter Engelman, Jim Beverlin and Sam Alpert. (Nick Moos, Ward Katz, Ken Riedemann, and Ralph Lewis were  absent.)

Doug Price called the meeting to order.

The minutes of the last meeting on 11/29/01, which had been previously circulated, were reviewed and approved by those present.

The November financial statement, which had been previously circulated, was reviewed and approved by those present.

Doug Price advised the Board that in the wake of failed merger discussions with the AAKC,  the 2002 HAA operating budget hinged upon the organization’s ability to collect sustaining dues from HAA’s core participants. After lengthy discussion it was determined that an operating budget would be “backed into” based upon anticipated gross receipts from the  members. Sam Alpert and Doug Price agreed  to prepare an operating budget proposal for Board approval. It was also agreed that subject to the Board’s approval, 2002 dues billings would be submitted to member companies for payment during the month of January.

Doug Price further advised the Board that efforts will be made to engage the AAKC in a cooperative working relationship that will include cross representation at periodic (legislative) meetings of both the AAKC and HAA. Sam Alpert was requested to provide a calendar of  scheduled HAA Board meetings for the year 2002.

Sam Alpert presented an update of current legislative activity, and with input from Jim Beverlin, distributed written summaries on a number of issues including Missouri  elevator inspections, rising insurance expense (terrorism insurance being a particularly urgent concern while under consideration in the U.S. Senate as part of an overall economic recovery package), and mold environmental  hazards. Doug Price noted that a meeting with Jeff Leaders of AMLI Residential had been scheduled to discuss the events leading up to the adoption by Overland Park of  a new “storm water utility” and associated user fees and tax increases. Lee Harris also shared correspondence with AMLI principals in which he questioned the process under which the new utility was adopted by Overland Park.

A change of meeting venue was discussed, as it was noted that Midland Properties had been a gracious host for over five years, and it was time to pursue other possibilities. In response, the Board agreed that the next regularly scheduled meeting of the HAA Board of Directors would  be held on Thursday, January 24,  2002, 7:45 A.M. at the offices of  Oddo Development Co., 8460 Neiman Road, Overland Park, KS.

There being no further business to come before the Board of Directors, the meeting was adjourned at approximately 9:30 a.m.