Score Card


WE HAVE MADE A DIFFERENCE!

HEARTLAND APARTMENT ASSOCIATION ACCOMPLISHMENTS

2007- HAA leads a number of efforts in opposition to rental property licensing . As a direct result of these efforts, Kansas City, MO was convinced to adopt a less onerous program that requires all rental property owners to register at no cost and with no required interior inspections, except for properties located in target neighborhoods that consent to inspection of all residential properties (both owner occupied and renter occupied). Kansas side cities, including Lenexa and Mission undertook stronger measures, requiring annual license fees, with Mission requiring that 5% of the multifamily units receive interior inspections when vacant. The year ended with Overland Park considering a registration program for single family - 4 plex scattered site rentals only. In all cases HAA is monitoring these programs to determine whether enforcement is being fairly and lawfully applied.

2007 - HAA continues to pursue lawsuits in Jackson County Circuit Court challenging KCMO in its attempts to assess "business license" fees on gross rents as a means of taxing passive owners. The case, now in a discovery phase, is scheduled to come before the court in July, 2008.

2007 -.HAA, along with BOMA, prevail when the Missouri Supreme Court refuses to hear a final appeal from KCMO regarding illegal Fire Inspection Fees, the subject of a long running law suit. The City is ordered to repay all such fees improperly collected since 2003 to the entire business community, as well as to refund both HAA and BOMA reasonable legal fees. At the end of the year KCMO was finding it difficult to account for fees that had been collected (estimated to be in excess if 1.1MM), and the plaintiffs were actively pursing a satisfactory resolution through the court.

2007 - HAA continues to work with Johnson County as a major "stakeholder" on a task force on improving the delivery of basic wastewater services to various segments of the community. Some movement has been achieved in convincing Johnson County Wastewater to consolidate both operating and capital billing, which until now has been split between a bi-monthly billing for customer service charges and an "EDU" capital charge on the annual property tax bill.

2007 - HAA works as a community "stakeholder" on a regional Johnson County task force on the future of municipal solid waste handling in light of an imminent closing of the region's largest landfill within the next 10-20 years. Recognizing significant cost implications for all multifamily owners, ongoing engagement in this process is imperative.

2007 - HAA is invited to participate in the KCMO Climate Protection Plan initiative in an effort to find creative ways in which to reduce carbon emissions. HAA brings an important perspective to these discussions, which deal largely with more efficient land use and building higher density, cost effective concentrated communities, which require less reliance on the auto commutes.

2006 - HAA continues leading a number of efforts throughout the region to reign in unwarranted rental property over-regulation. In addition to Kansas City and Independence in Missouri, Kansas side cities including Lenexa, Mission, Overland Park, and Shawnee all advocate for stronger rental unit regulation and / or licensing during the year. With the exception of Mission, Ks, which ultimately adopts a sharply reduced rental unit licensing requirement (down from what was initially proposed), the HAA successfully argues against imminent adoption of pending legislation.

2006 - HAA successfully campaigns against a ballot issue requesting voters to approve KCMO Fire Inspection fees, the subject of ongoing litigation now before the Western District of the Missouri Court of Appeals. Marshalling the support of the greater real estate community, HAA funds a media campaign that effectively convinces voters that the "DOUBLE TAXATION" of being assessed a separate fee for the delivery of a basic public (safety) service is not acceptable.

2006 - HAA is enlisted by Johnson County as a major "stakeholder" to work on a task force on improving the delivery of basic wastewater services to various segments of the community. HAA also takes the initiative to encourage Johnson County WaterOne to more closely cooperate with Johnson County Wastewater, especially in matters such as customer billing cycles and associated administrative activities.

2005- HAA files two concurrent lawsuits in Jackson County Circuit Court challenging KCMO in its attempts to assess "business license" fees on gross rents as a means of taxing passive owners. This action was taken as insurance that ongoing negotiations with the City to revamp the nearly century old statute were taken seriously and considered with some urgency. By year end, talks with the City had stalled out and steps were being taken by HAA to begin strategic discovery in preparation to go to court.

2005- HAA initiates an effort to consolidate development community public affairs concerns and advocacy activities through the formation of an industry coalition including AAKC, BOMA, IREM, Builders Association, Construction Users Council , HBA, and the REALTORS Association. It is decided that certain issues would merit having a unified "industry voice" to establish a formidable presence. The group known as the "Metropolitan Development Community Advisory Council" (MDCAC) continued constructive discussion among its respective component organizations throughout most of the year in anticipation of launching collaborative advocacy efforts in 2006.

2005- HAA and BOMA prevail in the KCMO fire inspection fee lawsuit that had been in process for nearly two years. In November a judge in the Jackson County Circuit Court handed down a decision that was generally favorable to the plaintiffs (HAA and BOMA) on all counts. The decision found three different KCMO ordinances to be unconstitutional under both the state and federal constitutions, ordered city-wide refunds of fees paid to the City by business owners under the illicit ordinances, and granted the plaintiffs a reimbursement of applicable attorney's fees and court costs. The year ended with the expectation that KCMO would most likely appeal the decision, as due to the nature of a "constitutional challenge", the City was not required to post bond requisite to most appeals, and it would have nothing to lose in trying to get the decision overturned at either the appellate or state Supreme Court levels.

2005- HAA moved aggressively to resolve several outstanding issues regarding charges for Johnson County (KS) Wastewater services. We were able to successfully settle accounts (free of interest and late penalties) for a number of owners who had withheld significant amounts in protest over a nearly three year period. It was recognized that much still needs to be done with respect to the rate structure, adequate reserves, and more cost effective administration and collection activities. In that such significant unwarranted costs are continuing to be incurred by our owners, this will remain an ongoing priority for HAA until major changes occur.

2005- HAA headed up the owners' representation to a six month "task force" effort to improve KCMO housing codes enforcement. This was done in an effort to avert the introduction of a blanket "rental unit" licensing and inspection initiative being called for by both neighborhood activists and several City Council members. It is anticipated that the task force recommendations will require several months of deliberation before resolution, if any, in the coming year.

2004 - HAA joins with BOMA in filing a lawsuit challenging a new KCMO fire inspection user fee, which was enacted to reduce reliance on general tax revenue funding of a basic public safety function. On the basis of the evidence that had been presented, a Jackson County Circuit Court judge initially denies a motion for injunctive relief from assessment of the fee for a "certificate of compliance". Based on her opinion that owners had a "remedy at law", the constitutionality of the fee under the MO Hancock Amendment will be finally adjudicated sometime in 2005.

2004 - HAA continues in its efforts to redistribute the Johnson County Wastewater cost burden to a more equitable level for multifamily properties. A number of owners opt to withhold payment of hundreds of thousands of dollars in service fees until the County demonstrates a willingness to address the inequities of the existing system. During the year, HAA engages legal counsel to further bolster the position taken.

2004 - HAA determines the necessity to hold the Jackson County Circuit Courts accountable in conforming with MO state law requiring timely docketing and post judgment service with respect to bringing effective rent and possession actions.

2004 - HAA initiates and coordinates a consolidated effort to challenge Kansas City, MO as it attempts to assess "business license" fees on gross rents as a means of taxing "passive owners". Legal counsel is engaged to draft a lawsuit intended to reinforce negotiations with the city for the comprehensive review and redrafting of the archaic KCMO business license ordinance, conceived nearly a century ago.

2003 - HAA, leading an effort which included various building owners throughout the greater KCMO metropolitan area, succeeded in convincing the Missouri Elevator Safety Board that inspections conducted under Kansas City's elevator inspection regime could in fact satisfy the state standard requirements. This effectively eliminated the need to have a separate state sanctioned inspection in addition to the city inspection.

2003 - HAA led an effort to challenge a new KCMO fire inspection user fee, which was enacted to reduce reliance on general tax revenue funding of a basic public safety function. The year ended, after months of negotiation with the Mayor, City Manager, City Council, and the Fire Department, without finding a mutually agreeable resolution. HAA has taken the position that the "user fee" is entirely inappropriate in light of Missouri's "Hancock Amendment" , which sets out stringent guidelines for the enactment of new fees or taxes. It is anticipated that the courts may be asked to rule on this matter sometime during 2004.

2003 - HAA undertook in earnest to gain HUD's recognition that "frivolous" Fair Housing complaints pose a continuing unnecessary and costly irritation to law abiding apartment owners and managers. While HUD initially indicated their willingness to hear out our concerns, they ultimately retreated to a position of complete inflexibility. It has become clear that any hope for reform in this regard will have to come from the top in Washington, D.C. The HAA feels compelled to continue to pursue this issue to the highest levels.

2003 - HAA has led an effort to redistribute the Johnson County Wastewater cost burden to a more equitable level for multifamily properties. In 2002 operations and maintenance of the JOCO Wastewater District, previously funded through general tax revenues, became a basic service function supported by citizen "user fees" independent of tax revenues. While multifamily properties had expected to benefit from the savings in taxes, most have experienced two to three times more in wastewater expenditures than what they had been paying in the property tax mill levy prior to the change. Due largely to HAA's efforts, the JOCO Board of County Commissioners has acknowledged the significant shift of cost burden, but has been reluctant to make the changes we believe to be necessary. This matter will continue to hold a high priority in 2004 until it is fairly resolved.

2003 - HAA continued in its efforts to convince Overland Park, KS to restructure its storm water utility assessments for apartments. Negotiations with the Public Works staff and subsequent presentation to the OP City Council did not produce a favorable response. While staff agrees with HAA's observations regarding storm water impervious area and associated fees, and that the current system places an inordinate financial burden on apartment properties (vs. low density single family lots), the City Council will require an imperative to facilitate change. In this instance, after exhausting all available administrative remedies to establish equity, it may be necessary to seek a legal resolution.

2002- HAA led a successful letter writing and communications campaign that turned the tide of public opinion with respect to a one mill property tax increase in Johnson County KS. The tax increase required to purchase additional public parkland was ultimately rejected by the Johnson County Board of Commissioners in favor of public debt financing.

2002- HAA worked with the Johnson County Wastewater District in an effort to reduce the reliance on property taxes to pay for waste water treatment. In July, a new system was adopted by the Johnson County Board of Commissioners that will reduce property taxes for apartment owners in favor of charging a service fee based upon actual domestic water consumption. For those owners who sub-meter water and bill their residents accordingly, a significant net savings will be realized.

2002- HAA began discussions with Overland Park , KS regarding the inequities embodied in Storm Water Utility service charges that began appearing on property tax bills in 2001. This discourse will continue as a fair resolution is sought.

2002- HAA continued its efforts to obtain an exemption for Kansas City elevators from the Missouri Elevator Board Safety Board inspection regime. Meanwhile, HAA worked with Kansas City building codes officials to help facilitate a plan by which owners could either request the city inspectors to perform elevator inspections to state standards or, without prejudice, choose to have only a city inspection performed. This is seen to be a temporary relief measure, in anticipation of a permanent legislative or judicial solution.

2002- HAA joined a coalition of property interests that successfully defeated attempts by telecommunications providers in both Kansas and Missouri to introduce "Forced Access" legislation. It is likely that this issue will come before both state legislatures again in 2003.

2002- HAA opposed the Missouri contract retainage restriction provision that eventually became law. Owners in increasing numbers throughout the state are becoming aware of a substantial increase of their relative exposure to unjustified "payment withholding" claims brought by contractors and sub-contractors (throughout the contracting chain). Many think it is only a matter of time until the new law will be tested as to its constitutionality.

2001- HAA, in cooperation with the National Multi Housing Council, the Apartment Association of Kansas City, and the Kansas Apartment Association, succeeds in making Kansas the 35th state to adopt "Pre-emptive Rent Control". The statute provides that no local jurisdiction can enact rent controls without approval of the full Kansas legislature.

2001- HAA, along with numerous owner interests throughout Missouri, defeats a strongly supported measure which would have restricted contract payment retainage to a maximum of five percent (5%) and required owners to accept "alternative" securities to ensure performance in lieu of withholding payment. [Historically, on significant contract work of an extended duration (contracts with terms exceeding 30 days), an owner withholds up to ten percent of monthly progress payments in order to ensure timely and specific contract completion.]

2001- HAA assumes leadership role in promoting the adoption of the 2000 International Building Code with an emphasis on progressive rehabilitation provisions that would directly benefit the redevelopment of older buildings in Kansas City, MO.

2000 - HAA takes a leadership role in bringing Kansas City, Missouri real estate interests together to oppose relinquishing local (KCMO Codes Administration) elevator inspection and certification responsibilities to the Missouri (state) Fire Marshall. Due to local amendments, which enabled the redevelopment of older elevator served structures, it is likely that the repeal of these provisions under a state run elevator inspection program would result in retro-fitting a large number of Kansas City elevators at a significant, if not prohibitive, cost to owners.

2000 - HAA's Executive Director, Sam Alpert, is appointed to the "Citizen's Advisory Committee on Housing" by Kansas City, Missouri Mayor Kay Barnes. The committee is charged with the facilitation of a comprehensive long-term metropolitan housing policy, which will ultimately address all critical aspects of the City's housing inventory and production over the next 25-50 years. The thirty member committee is comprised of housing providers, builders, lenders, federal and state agencies, and various community development corporations.

2000 - HAA, utilizing legal representation on behalf of rental unit owners throughout Overland Park, KS succeeds in convincing city officials to adopt an enhanced codes enforcement program that effectively leverages existing law, while focusing the city’s resources on the “BAD APPLES” (repeat chronic and habitual codes offenders). This is in contrast to earlier city staff recommendations calling for enabling legislation to facilitate routine inspections, certification, registration, and associated supporting fee assessments for all rental units located within the O.P. city limits.

2000 - HAA represents Kansas apartment owners in statewide real estate coalition opposing SB54, “Cable Forced Access”. The measure, strongly supported by broad band cable telecom service providers, is temporarily tabled, but will require continued monitoring.

2000 - HAA joins statewide real estate and other commercial interests in Missouri to oppose SB822, a perennial attempt to impose a costly fire sprinkler retrofit of all non-sprinkled buildings over seventy-five (75) feet in height over a twelve (12) year phase-in period. As an adjunct to other unrelated legislation, the measure is ruled out of order on the Senate floor and referred back to committee. This labor-backed initiative is likely to resurface in the not too distant future.

2000 - HAA initiates a letter writing campaign in opposition of Missouri SJR45, which would reduce the school bond election requirement from a super majority of either two thirds (2/3) or four sevenths (4/7), depending on the election event, to a simple majority or something in excess of fifty per cent (50%+)

1999 - HAA participates with other owner organizations in urging codes enforcement officials in Independence, MO and Kansas City, MO to focus limited financial and staff resources on problem property owners or “BAD APPLES” (repeat chronic and habitual codes offenders). The resulting respective “BAD APPLE” programs in both jurisdictions are in contrast to earlier calls for onerous inspections and registration fees for all rental units.

1999 - HAA joins a diverse coalition of rental property owners and managers to oppose the introduction of onerous codes enforcement rental unit licensing and mandatory inspection provisions in Overland Park, KS.

1997 - HAA participates in refining and promoting final passage of Missouri HB 361, which implements sweeping changes in tenant/landlord law.

1997 - HAA represents the multifamily industry regarding the resurgence of the 1994 debate on retrofitting all buildings in K.C., MO. over 75 feet in height with automatic fire sprinklers. The Royal Towers fire of 1996, which resulted in multiple deaths, has caused this issue to resurface. This has led the city council to establish a task force on which the HAA participates as part of the select steering committee.

1997 - HAA leads the debate over the imposition of new licensing and inspection provisions aimed at rental units, and successfully discourages implementation within multiple jurisdictions.

1997 - HAA works to establish a better understanding of HUD’s approach to some specific fair housing complaints dealing with occupancy standards.

1996 - The City of Olathe, KS expresses appreciation to the HAA for its willingness to assist in resolving the Rental Unit Registration issue. Olathe also acknowledges the HAA’s expertise and level of commitment to the betterment of the community, as well as encouraging professionalism within the multifamily industry.

1996 - HAA succeeds in convincing the State of Kansas to institute a separate Worker’s Compensation rate class for apartment Property Managers and Leasing Agents. Effective in 1996, the new rate class initially saves owners and managers approximately $5.00-$6.00 per $100.00 in payroll for these employees (depending on individual experience modifiers).

1995 - HAA works to establish a similar Worker’s Compensation classification for "Property Managers and Leasing Agents" in the State of Missouri.

1995 - HAA, as integral part of a state-wide Missouri coalition of apartment owners and managers, sees property-tax relief finally become reality when H.B. 211 (reclassifies apartment properties as "residential" to be assessed at a 19% {vs. 32%} rate) is passed by the General Assembly and is signed into law on June 1, 1995 by Governor Carnahan.

1994 - HAA’s leadership and diligence prevail in convincing the Kansas City, Missouri City Council of the negative economic impact posed by a proposal to retrofit all buildings of 75 feet or more in height with automatic fire sprinklers. Kansas City hi-rise apartment owners, due to HAA efforts, are spared (until this issue resurfaces at a later date) in excess of a $10,000,000 nonrecoverable imposition.

1994 - HAA continues its efforts to clarify the Missouri sales tax statute, working with the legislature and a number of utilities throughout the state. HAA’s mission is to define once and for all the sales tax exemptions that the Missouri legislature had originally intended for "residential" or "domestic" utility purchases.

1994 - HAA petitions both Missouri and Kansas Departments of Insurance to institute a new Workers Compensation rate classification: "Apartment Property Manager and Leasing Agents" (Code-9012). When approved, significant savings will result after affected employees are reclassified from current code-9015, "Building Operations by Owner or Lessor." This activity is supported by real estate organizations throughout the country. HAA succeeds with this measure in Missouri and Kansas in 1995 and 1996 respectively.

1993 - HAA wins a landmark case in the Missouri Supreme Court which effectively exempts from sales tax all apartment utilities either sold under a "residential rate tariff" or utilized for "domestic" use. Potential savings to date to all Missouri apartment owners is in excess of $40,000,000.

1992 - HAA, through multiple legal actions (involving condominium and demising wall construction issues) and legislative efforts, has taken a leadership role in Missouri to reform property taxation policies relative to apartments. Potential state wide property tax savings resulting from these activities are believed to be in excess of $50,000,000.

1991 - HAA forces the first tax-payer referendum in Johnson County, Kansas history, saving apartment owners nearly $2,000,000 in sewer-use taxes during 1992. HAA continues to monitor and counsel with the Johnson County board of County Commissioners regarding this issue.

1990 - HAA owners campaign against and defeat an ill-conceived Kansas City Missouri recycling plan, saving apartment owners over $1,000,000 per year in unwarranted costs. HAA subsequently involves itself in responsible voluntary recycling programs and a region wide basis.

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