R unning an apartment commu- nity presents so many oppor- tunities to work with residents and impact people’s lives. Many times though, residents don’t have the chance to know each other well, and take the time to protect them- selves and their neighborhoods. AMA’s Project S.A.F.E. program creates a meaningful opportunity for apartment community managers to reach into the greater community to bring together local educators, com- munity leaders to meet residents and foster community engagement. This year, more than 100 properties participated in Project S.A.F.E. and impacted thousands of residents. In fact, Phoenix had 65 communi- ties engaged in Project S.A.F.E. If each apartment community aver- ages 400 residents, that means that as many as 26,000 people were im- pacted by these initiatives. Each year, the Project S.A.F.E. team sees creative and inspiring pro- gramming through these events. This year there were entries that offered drowning prevention programs, fire prevention training, and updates on safe driving and cyber bullying. In September, the AMA members gath- ered to honor these managers who hosted unique Project S.A.F.E. events and celebrate their success. More than 135 members joined the AMA for the awards dinner. Tucson Goes for the Gold Taking the East Valley by Storm Professional Publishing, Inc PO Box 30327 Portland, OR 97294-3327 PRSRT STD US Postage PAID Seattle, WA Permit #741 Current Resident or THE OFFICIAL PUBLICATION OF THE ARIZONA MULTIHOUSING ASSOCIATION November 2013 • Vol. 50 No. 11 Continued on page 10 Project S.A.F.E. Honors Special Event Leaders Continued on page 2 Congratulations to all of the Project S.A.F.E. Winners! Phoenix – Best of Awards: • Theme – Whispering Pines (U.S. Residential Group) • Flyer – Glendale Enterprise Lofts & Ironwood Village (Dunlap & Magee) • Community Participation – Willow Springs (Centurion) • Community Participation – Maddox Estates (Allison- Shelton Real Estate Services Inc.), Tucson • Turnout – Covington Park (ConAm) • Committee Choice – Ridgepoint (P.B.Bell) By Joanna Grassinger, AMA O n September 20, AMA Tucson said ‘Go for the Gold’ at the 2013 Tucson Education Conference and Trade- show sponsored by Koglmeier Law Group at the Tucson Convention Center. The day started with two amazing speakers. Les Taylor of Outperform- ers International began the sessions with ‘You Are The Brand.’ At- tendees learned how they are the “President and CEO” of themselves and they can change their brand and image if they are not happy with it. Second came JoAnn Contorno – motiva- tional speaker, author, entertainer, mother, wife, runner and come- dienne. Joann was the keynote speaker, sponsored by Greenspan Adjusters International. JoAnn had attendees laughing until they were in tears while making an impact with her ‘Going for the Gold’ pre- sentation. JoAnn was inspiring and absolutely hysterical. She related her presentation perfectly to the multi- housing industry and left the crowd wanting more. Over 300 hundred people enjoyed a fantastic lunch and then kicked off the Tradeshow with a bang. Close to 400 property management attend- ees packed the Tradeshow floor of a sold out 75 booths. The creativity of the ex- hibitors’ use of theme with costumes, goodies and interactive activi- ties was outstanding. The ‘Most Interactive’ Booth Award went to Distinc- tive Carpets, Inc./For Rent Media Solutions. The ‘Best Use of Theme’ went to Val- ley Protective Services. The ‘Best Costumes’ Award went to Redi Carpet. Attendees spent close to three hours, playing games, winning prizes and having a great time. The end of the Tradeshow always brings great excitement with the AME Raffle of a trip valued sat $500 and the $1000 Grand Prizes (spon- sored by Valley Protective Services). P&P Speakers Share Insights into Southeast Market By AMA Perspectives and Projections, the AMA’s annual economic outlook event, brought together hundreds of real estate industry leaders, mul- tifamily operators, managers and investors for a half day of education and insights. Starting with Michael Bidwill, the president of the Arizona Cardinals, attendees learned more about the aggressive economic de- velopment efforts of the past few years and the impressive results. During the panel with the East Val- ley mayors, moderated by AMA president and CEO Tom Simplot, it was clear that these business attrac- tion efforts are benefitting the multi- family industry. As thousands of new jobs have been created here in the Valley over the past few months, many of them in the growing southeast valley, the need for and interest in multifamily product has grown. The home own- ership rate today is at 65%, down from its peak, in 2004, when it was 69.2%. Speakers noted that there ap- pears to be a feeling that people will wait longer to buy a house fol- lowing the recession and housing crash. The national trend of adult children living with their parents for a longer period has shifted the timing for buying a home. Many of those young adults are going to be entering the rental market soon as they look for jobs. This generation also appears to be more mobile, and therefore less likely to purchase a home early in their careers. Apart- ment communities, especially the newer communities, offer luxury amenities like pools, technology, and lifestyle. In addition, there seems to be a shift in the Valley toward communities with access to major transportation corridors, and light rail to meet the interests of Generation Y renters who want a vi- brant lifestyle in proximity to where they work. The Hot Panel – East Valley Mayors Chandler is Rocking It! Intel, General Motors, Wells Fargo have all decided to make Chandler the home of their new expansions. The city’s mayor, Jay Tibshraeny, was excited to share the recent successes in business attrac- tion and expansion with the P&P crowd. Intel has two major expansions in Chandler that are driving the need for housing. One of the Intel developments is the second largest construction project in the world according to Tibshraeny. General Motors is constructing a research and development facility in Chan- dler that will create 1,000 new jobs Continued on page 3
Published monthly by Rental Housing Journal, Apartment news is the business journal for the Arizona multifamily and property management industry.
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Transcript
Running an apartment commu-nity presents so many oppor-tunities to work with residents
and impact people’s lives. Many times though, residents don’t have the chance to know each other well, and take the time to protect them-selves and their neighborhoods.
AMA’s Project S.A.F.E. program creates a meaningful opportunity for apartment community managers to reach into the greater community to bring together local educators, com-munity leaders to meet residents and foster community engagement. This year, more than 100 properties participated in Project S.A.F.E. and impacted thousands of residents.
In fact, Phoenix had 65 communi-
ties engaged in Project S.A.F.E. If each apartment community aver-ages 400 residents, that means that as many as 26,000 people were im-pacted by these initiatives.
Each year, the Project S.A.F.E. team sees creative and inspiring pro-gramming through these events. This year there were entries that offered drowning prevention programs, fire prevention training, and updates on safe driving and cyber bullying. In September, the AMA members gath-ered to honor these managers who hosted unique Project S.A.F.E. events and celebrate their success. More than 135 members joined the AMA for the awards dinner.
Tucson Goes for the Gold
Taking the East Valley by Storm
Professional Publishing, Inc PO Box 30327 Portland, OR 97294-3327
PRSRT STD US Postage PAID
Seattle, WA Permit #741
Current Resident or
The Official PublicaTiOn Of The arizOna MulTihOusing assOciaTiOn
November 2013 • Vol. 50 No. 11
Continued on page 10
Project S.A.F.E. Honors Special Event Leaders
Continued on page 2
Congratulations to all of the Project S.A.F.E. Winners!
Phoenix – Best of Awards: • Theme – Whispering Pines (U.S. Residential Group)
• Community Participation – Willow Springs (Centurion)
• Community Participation – Maddox Estates (Allison- Shelton Real Estate Services Inc.), Tucson
• Turnout – Covington Park (ConAm)
• Committee Choice – Ridgepoint (P.B.Bell)
By Joanna Grassinger, AMA
On September 20, AMA Tucson said ‘Go for the Gold’ at the 2013 Tucson
Education Conference and Trade-show sponsored by Koglmeier Law Group at the Tucson Convention Center. The day started with two amazing speakers. Les Taylor of Outperform-ers International began the sessions with ‘You Are The Brand.’ At-tendees learned how they are the “President and CEO” of themselves and they can change their brand and image if they are not happy with it. Second came JoAnn Contorno – motiva-tional speaker, author, entertainer, mother, wife, runner and come-dienne. Joann was the keynote speaker, sponsored by Greenspan Adjusters International. JoAnn had attendees laughing until they were in tears while making an impact with her ‘Going for the Gold’ pre-sentation. JoAnn was inspiring and
absolutely hysterical. She related her presentation perfectly to the multi-housing industry and left the crowd wanting more.
Over 300 hundred people enjoyed a fantastic lunch and then kicked off the Tradeshow with a bang. Close to 400 property management attend-
ees packed the Tradeshow floor of a sold out 75 booths.
The creativity of the ex-hibitors’ use of theme with costumes, goodies and interactive activi-
ties was outstanding. The ‘Most Interactive’ Booth
Award went to Distinc-tive Carpets, Inc./For Rent Media Solutions. The ‘Best Use of Theme’ went to Val-
ley Protective Services. The ‘Best Costumes’ Award went to Redi
Carpet. Attendees spent close to three hours, playing games, winning prizes and having a great time.
The end of the Tradeshow always brings great excitement with the AME Raffle of a trip valued sat $500 and the $1000 Grand Prizes (spon-sored by Valley Protective Services).
P&P Speakers Share Insights into Southeast MarketBy AMA
Perspectives and Projections, the AMA’s annual economic outlook event, brought together hundreds of real estate industry leaders, mul-tifamily operators, managers and investors for a half day of education and insights. Starting with Michael Bidwill, the president of the Arizona Cardinals, attendees learned more about the aggressive economic de-velopment efforts of the past few years and the impressive results. During the panel with the East Val-ley mayors, moderated by AMA president and CEO Tom Simplot, it was clear that these business attrac-tion efforts are benefitting the multi-family industry.
As thousands of new jobs have been created here in the Valley over the past few months, many of them in the growing southeast valley, the need for and interest in multifamily product has grown. The home own-ership rate today is at 65%, down from its peak, in 2004, when it was 69.2%.
Speakers noted that there ap-pears to be a feeling that people will wait longer to buy a house fol-lowing the recession and housing crash. The national trend of adult children living with their parents for a longer period has shifted the timing for buying a home. Many of those young adults are going to be
entering the rental market soon as they look for jobs. This generation also appears to be more mobile, and therefore less likely to purchase a home early in their careers. Apart-ment communities, especially the newer communities, offer luxury amenities like pools, technology, and lifestyle. In addition, there seems to be a shift in the Valley toward communities with access to major transportation corridors, and light rail to meet the interests of Generation Y renters who want a vi-brant lifestyle in proximity to where they work.
The Hot Panel – East Valley MayorsChandler is Rocking It!
Intel, General Motors, Wells Fargo have all decided to make Chandler the home of their new expansions. The city’s mayor, Jay Tibshraeny, was excited to share the recent successes in business attrac-tion and expansion with the P&P crowd.
Intel has two major expansions in Chandler that are driving the need for housing. One of the Intel developments is the second largest construction project in the world according to Tibshraeny. General Motors is constructing a research and development facility in Chan-dler that will create 1,000 new jobs
Continued on page 3
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By Robert Hicks, Alliance Residential, President of the Board of Directors, AMA
This year’s annual Perspectives and Pro-jections conference brought together hundreds of leaders in our industry to learn more about the
capital markets, financing, planning in the East Valley, and the economic health of our region. Attendees had the good fortune to learn from local Mayors more about their plans on the planning and zoning of the re-development projects that we have been watching and on their process for reviewing and approving new multifamily developments. This
was also our opportunity to dem-onstrate how we are partners with these municipalities, offering high quality housing for their residents. Some cities have struggled to under-stand how important apartments are to the housing mix in their bedroom communities. We offer younger professionals, and those individu-als and families looking for a more urban lifestyle the opportunity to live in setting of their choice. Today, we are even bringing multifamily to some more suburban settings as the demand for our homes increases. It’s important for us to educate our city leaders about the industry and for us to get to know them better.
Elliot Pollack’s overview of the local economic and housing markets was foundational information as we
plan for investments. The business attraction efforts and success of the economy impact the multifamily industry early in the cycle as new people moving to Arizona for em-ployment often choose apartments first. Because of this, and other migration and housing industry fac-tors, the apartment industry contin-ues to be a bright spot in the Valley housing market. Pollack’s outlook was much more optimistic and he predicts that 2015 will be a strong year for the Valley.
The AMA team did an impressive job pulling together these panels for our members and local leaders, and we appreciate all of their work. This annual conference is an important event for our members.q
Notes from the Chair
Moving Ahead in Our Industry and Giving Back
CHAIR of tHe boARd: Robert Hicks, Alliance Residential
CHAIR eleCt: Kimberly Fitch, Nicolosi & Fitch, Inc.
VICe CHAIR: Christine Shipley, Dunlap & Magee
Property Management
tReASUReR: Chris Evans, HSL Asset Management
SeCRetARY: Amy Smith, Bella Investment Group
IMMedIAte PASt CHAIR: Lesley Brice, MC Residential
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david Adame, Tiempo, Inc.Vicki Allison, Allison-Shelton Real Estate Services
Jen Ambrosius, Apartment GuideChapin bell, P.B. Bell Companies
Maintenance Mania is an educational conference and exposition designed for on-site maintenance personnel. It is a great opportunity for AMA vendors to make new clients and provides exposure to hundreds of decision making maintenance professionals. The AMA sets yearly attendance records and is
annually recognized by the NAA!
This event provides educational classes for attendees in the morning, followed by an afternoon of friendly competition
How You Can Get Involved:
Surrounding the competitions is a “Trade Show” floor of exhibit tables.
Tables are available on a first come, first served basis the day of Move-In. Vendors with backdrops must choose a table against a wall; view of the
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Presenting Sponsor:
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Additional sponsors:
Apartment News (ISSN 0746-0686) is published monthly by Professional Publishing, Inc. for the Arizona Multihousing Consulting Corporation. Advertising rates available upon request. We are not responsible for nor guarantee any information, statements, products
or services of any advertisers in the publication. The articles herein do not necessarily represent the views of the corporation or the majority of its members, unless so stated.
Reproduction in part or whole is forbidden without written permission. Complete control, management and ownership along with the copyright and trade name belong to the Arizona Multihousing Consulting Corporation, 818 North 1st Street, Suite L160,
Phoenix, AZ 85004. Periodical postage paid at Snohomish, Washington.
• Represents ethical rental housing providers in legislative, legal and regulatory matters.
• Provides services, products, educational programs and net-working opportunities that enhance the general welfare and economic health of all our members.
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S.A.f.e. Winners...continued from front page
2 Apartment News • November 2013
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Leasing Office AccessibilityBy Judy Drickey-Prohow, Esq., The Law Offices of Scott M. Clark, P.C.
Is your leasing office accessible to persons with disabilities? Recently our office has received
several inquiries wanting to know when a property must make a leas-ing office accessible and how to go about doing so. As with many things legal, the answer usually will depend on the circumstances.
In buildings, the concept of acces-sibility refers to the degree to which a building or environment is avail-
able to as many people as possible. Laws involving accessibility turn on the idea of making places reachable and usable by all people, whether they have a disability or not.
The United States Congress has enacted several different laws requiring businesses and rental properties to make structures acces-sible for persons with disabilities. Most properties will be covered by either the Architectural Barriers Act of 1968, which requires buildings designed, built, altered or leased with federal funds to be accessible
to the public; the Federal Rehabilita-tion Act, which prohibits discrimi-nation in programs and services provided by the federal govern-ment; the federal Fair Housing Act (“FHA”), which establishes, among other things, minimal accessibil-ity requirements for multi-family properties that were designed and constructed for first occupancy after March 13, 1991; and/or the Ameri-cans with Disabilities Act (“ADA”), which prohibits discrimination in employment, places of public ac-commodation, governments, com-
munications and transportation. Because leasing offices are con-
sidered to be places of accommoda-tion, even when they are located in multi-family properties, it is not sufficient for leasing offices to comply with only FHA accessibility requirements. At a minimum they must meet the standards established under the ADA. In the event that the property is also leased with federal funds or receives federal financial assistance, the federal Rehabilitation Act and/or the Architectural Barri-
continued on page 6
taking the east Valley...continued from front page
Apartment News • November 2013 3
and Wells Fargo has another 450,000 square foot building under construc-tion.
Chandler has been setting the pace for major employer attraction. And Tibschraeny made the con-nection between job creation and the increased need for multifamily housing. Their city has 16 multi-family developments in its pipeline now. As part of a four corner initia-tive, the city of Chandler has also been rezoning lagging retails proj-ects into multifamily developments to encourage more urban living op-portunities.
Gilbert’s Changing Downtown
Gilbert continues to lead the Val-ley in the number of single family building permits issued. But Mayor John Lewis reminded the crowd that where you have single family homes, you need multifamily too.
Downtown Gilbert continues to evolve into a vibrant and beautiful dining destination. Home to both local favorites and national eater-ies, the area is growing and recently landed Xavier University, its first university. This should impact the multifamily industry as new em-ployees and students begin to popu-late the downtown in the future.
Employment cores around the 202 freeway have been driving the development of housing in Gil-bert. Rivulon, a major new master planned mixed use commute is being developed by the company that created Gainey Ranch. Their plans include more than three mil-lion square feet of office space and will likely include some multifamily residential.
Scottsdale’s Cores and Corridors
Mayor Lane recalled how Scott-sdale has historically been a com-munity of single family homes. And today, there are some con-dominium developments that are being converted to apartments in the downtown area. Following the recession, there are more multifam-ily and condo projects coming one and planned in Scottsdale to meet
the demand of the younger workers downtown and those who want a more urban lifestyle.
Mayor Lane cited the high-tech workforce as a driving source for the need for multifamily housing. Scottsdale’s technology investments have paid off and attracted a num-ber of major technology employers around the community and many of these younger workers are inter-ested in housing in the downtown. The Mayor pointed to a younger median age of the downtown area, 31 vs. 45 citywide, as another reason for the interest in apartment living downtown.
To date, there are 2,700 apartment units in downtown Scottsdale that are approved or under construction. In southern Scottsdale, Skysong and the McDowell Road corridor have attracted more than $200 million in capital investments. Skysong I and II, multifamily developments, are 98% leased and Sky Song III is breaking ground in October 2013.
Scottsdale’s new “Cure Corridor,” home to a number of biomedical companies, has created a tremen-dous economic engine in Scottsdale in recent years. Lane explained that 20% of the Scottsdale workforce revolves around the biomedical in-dustry, employing more than 28,000 people.
He also pointed to a number of key employment areas, the airpark, and Lincoln and Scottsdale Roads, as emerging destinations for apart-ment living. The Airpark, the sec-ond largest employment core in the Valley, draws thousands of workers and tourists to the area. Multifam-ily developments in Scottsdale and Phoenix are debuting in the area and there are more planned.
From Student Housing to Luxury Living, Tempe Has It All
Tempe Mayor Mark Mitchell gave an overview of the some of the region’s best known developments and previewed some of the new multifamily developments planned for Tempe. He explained that Tempe is landlocked and so the city
AMA CEO Tom Simplot (center) and East Valley Mayors
Michael Bidwill, President of the Arizona Cardinals
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taking the east Valley...continued from page 3
is working to reinvent the land they have.
Near Mill Avenue, West 6th, once a symbol of the Valley’s real estate meltdown, is today a model for the upswing in the multihousing sec-tor. Opened in 2011, the two towers total 375 units and are 100% leased today. Argo at the Town Lake is currently under construction and set to open in 2015. The new State Farm headquarters will be anchored at the Tempe Town Lake as well and should create a strong demand for this housing type and lifestyle.
The Hub at College, a develop-ment of student housing that is a public private partnership, has 269 units in downtown Tempe. Mayor Mitchell highlighted a number of new communities in the downtown area that offered really exclusive amenities like a lazy river, movie theaters, virtual golf as examples of the array of choices available. From luxury student housing, corporate apartments, and housing at the Hub, Tempe has it all.
Downtown Tempe offers the best of urban living with access to public transportation and METRO light rail that is helping people get around the community. Tempe is a multimodal city that is also sur-rounded by completed freeways. q
Is “No Reason,” Reason Enough?By Monique D. Young, Esq., Koglmeier Law Group, PLC
Every so often, I come across landlords and managers that have just enough information
to be dangerous. I, however, cannot fault or lay blame in the lap of the landlord when I am routinely try-ing to interpret and apply long and complex statutes which are appli-cable to the landlord/tenant arena. Nonetheless, one of the most dan-gerous examples I can provide of a landlord having just enough infor-mation to be dangerous is the state-ment, “I heard under Arizona law I do not need a reason to non-renew a tenant.” Is this a true statement?
Yes, under Arizona Landlord Tenant law, you do not need a rea-son to non-renew a tenant. How-ever, under Federal and State Fair Housing laws, the answer is not the
same. Indeed, under Federal and State Fair Housing laws, you may only non-renew tenants for legiti-mate, nondiscriminatory business reasons.
The Federal and State Fair Hous-ing investigators look at it this way: While you do not need a reason to non-renew a tenant, landlords typi-cally renew good tenants. If this is true, then the opposite view must be true that landlords only non-renew bad tenants for specific and objec-tive reasons relating to lost profits or good will to the landlord’s busi-ness. Thus, while under Arizona Landlord Tenant law, you do not need to have a reason as to why you served a tenant a notice of non-renewal in a willful hold-over case or to end the contractual relation-ship with the tenant—you do have reasons for non-renewing. And if the Arizona Civil Rights Division
comes knocking on your door with a discrimination complaint, you will have to provide these reasons for non-renewal.
To avoid fair housing liability, your non-renewal reasons must be nondiscriminatory, i.e. based on a legitimate nondiscriminatory busi-ness reason. And, no, I just don’t like them is not a legitimate business reason and neither is non-renewing a disabled tenant because it is too much work or hassle to house them. Accordingly, every non-renewal decision should be thought through in advance to ensure that it is based upon a legitimate, nondiscrimina-tory business reason. If you fail to think through the situation and just fall back on the old “I don’t need a reason” rationale because you just want a tenant out, you may have a difficult time responding to a dis-crimination complaint. If you can’t articulate the reason at the time the notice of non-renewal goes out, how are you going to articulate them under pressure from the Arizona Civil Rights Division? In addi-tion, you should be able to provide documentation or other comparable evidence to support the reasons to the Arizona Civil Rights Division for non-renewal. For instance, if you tell the investigator that you gave the Complainant (i.e., the ten-ant who filed the Fair Housing Act claim against you or your company) a notice of non-renewal for constant
noise complaints, then you better be able to provide the investigator with proof of this. Proof includes eye witness accounts and state-ments, police reports and/or police citations for the Complainant, and notices or letters that the landlord wrote to the tenant about the exces-sive noise coming from the Com-plainant’s apartment. Finally, your non-renewal decision should be consistent, i.e., you would give any tenant who conducted themselves in the manner the Complainant conducted themselves on property a notice of non-renewal. And hav-ing proof that you have consistently non-renewed other tenants who makes excessive noise on property is strong proof that a landlord’s nonrenewal decision is based on a legitimate business reason. Just as, disparate treatment of similarly situ-ated tenants is strong circumstantial evidence of discriminatory intent. q
Monique D. Young is an attorney with Koglmeier Law Group, PLC. She
can be reached at 480-962-5353. The views expressed here are general-
ized advice or information. Fact-specific questions should always be referred to legal counsel. Statements and opinions
expressed in these legal columns are solely those of the author or authors.
This advice does not necessarily repre-sent the views or opinions of the Ari-
zona Multihousing Association.
Connect with us!Enhance your membership. Broaden your network.
ers Act may impose stricter acces-sibility requirements.
Title III of the Americans with Disabilities Act
Title III of the ADA imposes three (3) different accessibility require-ments on owners and lessees of places of public accommodation. Under those requirements:
1. All “new construction,” defined as buildings constructed on or after July 1, 1993, must be completely ac-cessible for persons with disabilities and must meet the design and con-struction standards established by the Americans with Disabilities Act Access Board (ADAAG) or another functional equivalent.
2. In buildings constructed prior to July 1, 1993 but subsequently altered, the altered area of the building must be made as fully ac-cessible as possible. This standard is met by showing that the owner or lessee doing the alteration desig-nated not less than twenty percent (20%) of the alteration budget to bringing the altered area into com-pliance with ADAAG. If an owner/lessee was able to make the entire altered area accessible for less than twenty percent (20%) of the altera-tion budget, then the owner/lessee must also show that it designated any remaining part of that twenty percent (20%) of the budget, to making other, unaltered areas of the place of public accommodation
more accessible.
3. For buildings constructed prior to July 1, 1993 that have not been altered, the ADA requires owners and lessees to remove barriers that prevent or impede a person with a disability from accessing different areas of the property. In these situa-
tions barrier removal is mandated if it is “readily achievable.”
Barrier RemovalBarrier removal means exactly
what it suggests – that the owner/lessee must remove impediments that prevent a person with a dis-ability from accessing a building or service that the place of public ac-commodation offers to members of
the general public. Barrier removal is usually done in stages, depending on the resources available to the en-tity that owns or leases the place of public accommodation.
As noted above, barrier removal is required whenever it is read-ily achievable. The United States Department of Justice (“DOJ”) de-fines “readily achievable” to mean “easily accomplishable and able to be carried out without too much difficulty or expense.” Under guid-ance issued by DOJ certain kinds of barrier removal are prioritized over others. Priorities start with getting the person with a disability out of the parking lot and into the build-ing. From there entities are directed to consider how to provide access to the most common areas and services offered by the place of public accom-modation. DOJ’s suggested list of readily achievable barrier removal includes (in order of priority):
1. Installing ramps
2. Making curb cuts in sidewalks and entrances
3. Repositioning shelves
4. Rearranging tables, chairs, vend-ing machines, display racks, and other furniture
5. Repositioning telephones
6. Adding raised markings on el-evator control buttons
7. Installing flashing alarm lights
8. Widening doors
9. Installing offset hinges to widen doorways
10. Eliminating a turnstile or provid-ing an alternative accessible path
11. Installing accessible door hard-ware
12. Installing grab bars in toilet stalls
13. Rearranging toilet partitions to increase maneuvering space
14. Insulating lavatory pipes under sinks to prevent burns
15. Installing a raised toilet seat
16. Installing a full-length bathroom mirror
17. Repositioning the paper towel dispenser in a bathroom
18. Creating designated accessible parking spaces
19. Installing an accessible paper cup dispenser at an existing inacces-sible water fountain
20. Removing high pile, low density carpeting, or
21. Installing vehicle hand controls.The list is intended to be illustra-
tive. Each of these modifications will be readily achievable in many instances, but not in all. Whether or not any of these measures is readily achievable is to be determined on a case-by-case basis in light of the par-ticular circumstances presented and the factors discussed above.
It is important to keep in mind, also, that this obligation to engage in barrier removal is a continuing obligation for the entity. DOJ (and its Arizona counterpart, the Civil Rights Division of the Arizona At-torney General’s Office) generally anticipate that over time properties will be able to remove most of the more common barriers that prevent persons with disabilities from ac-cessing the facilities and services that a place of public accommoda-tion offers to other members of the community. As annual budgets are finalized it is a good practice to eval-uate the general accessibility of the leasing office (and any other part of the property that is made available by right to non-residents) and set at least a small portion of the operating budget to make it more usable for residents and applicants with dis-abilities. q
Persons with questions about these obligations should consult legal counsel.
Judy Drickey-Prohow is an attorney with the Law Offices of Scott M. Clark, P.C.. She can reached at 520.241.1847.
The views expressed here are general-ized advice or information. Fact-specific
questions should always be referred to legal counsel. Statements and opinions
expressed in these legal columns are solely those of the author or authors.
This advice does not necessarily repre-sent the views or opinions of the Ari-
zona Multihousing Association.
leasing office Accessibility...continued from page 3
By Andy M. Hull, Esq., Hull, Holliday and Holliday, PLC.
When renting a unit, the landlord should always conduct a walk-through
inspection with the resident both before leasing the unit and after the lease expires. This article will cover some of the more important reasons to do a walk-through.
All leases require giving the resi-dent the opportunity to complete a walk-through report and be present at the move-out inspection. This is true whether the renter is first oc-cupying the unit or entering into a lease renewal of an existing rental agreement.
According to A.R.S § 33-1321(c) of the Arizona Residential Landlord and Tenant Act:
With respect to tenants who first occupy the premise or enter into a new written rental agreement after January 1,1996, upon move-in a landlord shall furnish the tenant with a signed copy of the lease, a move-in form for specifying any ex-isting damages to the dwelling unit and written notification to the ten-ant when the landlord’s move-out inspection will occur. If the tenant is being evicted by a material irrepa-rable breach and the landlord has
reasonable cause to fear violence or intimidation on the part of the ten-ant, the landlord has no obligation to conduct a joint move-out inspec-tion with the tenant.
Value of InspectionA move-in inspection documents
the condition of the rental unit so that the new resident isn’t charged for existing damage. The procedure also enables the landlord to charge the renter for any new damage caused during his or her occupancy of the unit, less any normal wear and tear.
Ideally, the landlord should par-ticipate in both the move-in and move-out inspections with the resi-dent, so both parties can agree on the condition of the unit. Always have the resident sign and date the inspection form.
Some landlords, however, pre-fer to give the move-in form to the resident and have him or her fill it out and return it to the leasing office within a specified time limit, usually 24 to 48 hours.
This is not the best procedure especially for the landlord. If there later is a dispute over the condition of the unit, it will be harder for the landlord to win since management was not present at the move-in in-
spection. If the resident notes any pre-existing damage on the com-pleted form, management should contact the resident as soon as pos-sible to jointly inspect the unit and verify the defects. This includes taking pictures and video of the con-dition.
Move-out InspectionA.R.S § 33-1321(c) also states
the resident may be present at the move-out inspection. This notice must be in writing and given to the resident when he or she moves in.
If the renter does not request to be present at the move-out, the landlord has no obligation to advise the resident of the inspection date and time. Additionally, the person has no right to schedule the walk-through at his or her convenience.
If the resident is present during the inspection, request that he or she sign and date the move-out form. If the person refuses, simply note that, “The tenant was present and refused to sign this form.” Once again, take pictures and video of the condition.
Defining “Wear and Tear”The resident is not responsible for
normal wear and tear to the rental unit at move-out. Unfortunately, there is no clear definition or stan-
dard as to what is “normal wear and tear.”
It is subjective and based on such factors as: the age and condition of the unit at move-in; the length of time the resident lived in the unit; and the number of occupants, in-cluding pets.
If the landlord finds damage be-yond normal wear and tear, take the following steps:• Document and date the damage
with photographs or video. The evidence can be decisive if the matter goes to court.
• Have several witnesses who can attest to the condition of the rental unit before the resident moved in and after the person va-cated the unit.The most common defense pre-
sented in court by a resident disput-ing damages is that he or she left the unit in the same or better condition at move-out. Frequently, the person brings several family members to court. They will testify they helped the resident move-in, visited the individual while he or she lived and assisted with the move-out.
Without photographs or video, a judge has to decide which witnesses are most credible and believable to decide the dispute. Some clients
The Ins and Outs of Inspections
...continued on page 12
By Adam Greco, Burns Pest Elimi-nation and Chairman, Associate Member Council
In August, the AMC members gathered at Riverstone Resi-dential’s beautiful Pinnacle at Union Hills apartment community. This
community, located in an emerging area of Phoenix just off the freeways, features unique amenities for its residents. Surrounded by large businesses like the Mayo Clinic, Sumitomo, American Express and the MIM, more people are locating to this area of the Valley. The Desert Ridge shopping and dining are also a major attraction in this area.
More than 100 AMC members joined the Riverstone team for this meeting and for the golf tournament lottery. The annual lottery for golf holes sold out quickly with associate members bidding for the valuable slots to showcase their companies
during the popular fall event. This sold-out October golf tournament always draws out the leadership teams of regular and associate mem-bers of the AMA.
Cole Eisenhower, Rob Wilson, and Stephanie Baird were on hand from Riverstone Residential to share insights in to how to work with their company and its properties. Mem-bers were also able to explore the beautiful grounds of the community and learn more about the Pinnacle property. The AMC raffle for lunch with Riverstone was won by Alebia Miller from Synergy.
Eisenhower also gave a presenta-tion on the AMA Foundation’s Julie Hirsch Scholarship Fund, named for a Riverstone board member who passed away last year. To honor her memory, the AMA created a scholar-ship for the children of employees in the multifamily industry. The Foun-dation is accepting donations to this scholarship fund. q
Adam Greco is the commercial sales manager of Burns Pest Elimination and
he chairs the Associate Member Coun-cil. He can be reached at
The Associate Member Council meets quarterly and meetings are hosted
at Properties and Property Manage-ment Companies. Please check calendar at www.azama.org for dates, times and
locations of these meetings
AMC Draws Crowds for Golf LotteryarizoNa multihousiNg assoCiatioN
8 Apartment News • November 2013
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By Courtney LeVinus and Jake Hin-man, Capitol Consulting
Beginning December 1, 2013, apartment owners and op-erators in the town of Buck-
eye will be able to select their solid waste/ recycling service provider. So long as the solid waste provider is properly licensed in the town, solid waste service will be opened to the market.
Currently, the town of Buckeye
requires multi-family properties to use the town contracted solid waste services, meaning members have not been able to choose the most com-petitive and cost effective solid waste provider.
The town made these changes based on a state law that went into effect in 2010 that prohibits cities and towns from excluding a private enterprise from delivering commer-cial solid waste or recycling services
within a municipality. Most cities in the state consider multi-family customers ‘commercial’ since multi-family properties utilize front-load, large metal containers or bins rather than 65 or 90-gallon plastic contain-ers most often attributed to residen-tial customers.
Other cities however still continue to mandate multi-family properties to use city services. Cities like Tempe, Glendale, Peoria, Mesa and Flagstaff all prohibit private waste haulers from offering services to multi-fam-ily properties. This means cities can
charge and increase their solid waste rates at their own discretion and remain free of the “checks and bal-ances” that free market competition provides.
The AMA will be working to ad-dress these concerns either with the cities directly or through legislative action. q
Courtney LeVinus is a principal with Capitol Consulting and Jake Hin-
man leads legislative affairs for the firm. They can be reached at 602.712.1121.
Buckeye to Allow Apartments to Choose Solid Waste Providers
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NAA’s 2013 Survey of Operating Income & Expenses in Rental Apartment Communities
Available Oct. 1Just in time for budget season, re-
sults from NAA’s 2013 Survey of Operating Income & Expenses in
Rental Apartment Communities are now available for purchase (available for free to participating companies).
The survey includes detailed indi-vidual market data that helps owners and management companies, as well as individual communities, a chance to benchmark against their peers when preparing next year’s operat-ing budgets. Please contact Valerie Sterns at [email protected] to order your survey, which costs $599 for members and $1,000 for non-mem-bers.
The survey features a total of 4,526 properties containing 1,138,056 units, which are represented in this year’s report. Data was reported for 4,117 market-rent properties containing 1,077,468 units and 49 subsidized properties containing 60,588 units. Data for the 2013 survey is based on fiscal year 2012.
The complete report (available Oct. 1 at www.naahq.org/13ies) con-tains detailed data summarized for six geographic regions; 91 metropoli-tan areas met the separate reporting
criteria for market-rent properties. Sufficient numbers of subsidized properties were submitted for 14 metropolitan areas.
An executive summary of the sur-vey is featured in the September 2013 issue of units, available to review at: www.naahq.org/sites/default/files/naa-documents/income-expenses-survey/2013-Income-Expenses-Sum-mary.pdf
Registration Now Open for the 2014 NAA Student Housing Conference
Plan to be at the head of the class from March 3-5, 2014, as NAA con-venes the 2014 Student Housing Con-ference & Exposition in Las Vegas at the ARIA Resort.
Join other star pupils for two days chock-full of education and network-ing opportunities, from general and breakout sessions led by recognized experts in the student housing busi-ness, to reception and time spent in-teracting with exhibitors on the trade show floor.
Beginning September 26, visit www.naahq.org/shc for registration, schedule and the latest announce-
ments. Breathe easy—no admissions essay required! Remember to use the official hashtag: #NAAStudentConf.
Participate To Win An Eric Wahl Masterpiece and Support NAA Advocacy Efforts
Participate in the Wahl to Wall ad-vocacy campaign and support the NAAPAC or the NAA Better Gov-ernment Fund. All you need to do is guess the number of pennies in a jar. The jar in question was displayed at the Education Conference in June and can be viewed online at www.
tucson Goes for the Gold ...continued from front page
For Rent Media Solutions, Winner of Most Interactive Booth with Distinticve Carpets Valley Protective Services, Winner, Best Use of Theme
Redi Carpet, Winner, Best Costume Rooter 2000
Carpeturn.com National Tenant Network
The trip was awarded to Lauren Reece of Nicolosi and Fitch. The winner of the Grand Prize drawing was David Hurley of Sterling Point Apartments in Sierra Vista (a Nicolosi and Fitch Property). Congratulations, David!
Next Stop - the After Party at Zen Rock NightclubAbout 200 people packed the Zen Rock Nightclub on Congress for food,
dancing and music. It was the perfect stop after a long, fun day. Many stayed into the night laughing with friends, making new friends and just re-
Apartment News • November 2013 11
tucson Goes for the Gold ...continued from page 10
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HSL Properties Taps and Sons Electric
Kowalski Construction AZ Partsmaster
MEB Management Burns Pest Elimination
laxing and having fun. The Tradeshow After Party was sponsored by Redi Carpet and Tucson Apartment Guide.
Thank you to Tradeshow Cochairs Tim Furnas of Valley Protective Ser-vices and Gina Anderson from Prime Group, and the entire Tradeshow
committee for all of your hard work making the 2013 AMA Tucson Educa-tion and Tradeshow a great success. Thank you to all of the sponsors, ex-hibitors and attendees. q
12
actually keep a small 8 x 10 piece of the carpet and pad sealed in a Zip-loc bag of the worst carpet damage. This is very effective if animal urine was the cause of the damage. If a picture is worth a thousand words, smell is priceless!! q
Andy M. Hull is the principal of Hull, Holliday and Holliday, PLC. He
can be reached at 602.230.0088. The views expressed here are
generalized advice or information. Fact-specific questions should always
be referred to legal counsel. Statements and opinions expressed in these
legal columns are solely those of the author or authors. This advice does
not necessarily represent the views or opinions of the Arizona Multihousing
Association.
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Ins and outs ...continued from page 7NAA’s 2013 Survey ...continued from page 9
opportunities to network with like-minded professionals and boost your career if you haven’t joined NAA Connect at www.naahq.org/connect.
Learn all about Connect, includ-ing different ways to make this members-only tool work for you. If you need a little extra help, check out our series of short video tutorials at www.naahq.org/connect/video-tu-torials to see how you can join a com-munity, join a conversation, start a new discussion or share a document.
Don’t delay, join NAA Connect today!
Wednesdays Are For Webinars
Join NAAEI, Apartment All Stars and Multifamily Insiders for We-binar Wednesdays, the largest pre-mium webinar series in the industry to provide state and local association members with access to industry thought leaders to discuss innova-tive ideas, best practices and emerg-ing industry trends. These webinars will give participants the tools they need to become industry superstars in their own right.
Visit www.naahq.org/learn/edu-cation/take-a-class-online/webinar-wednesdays for information and registration.
“CAMnesty” Offers CAM Students Second Chance
CAMnesty is a new program that offers individuals who have started—but may not have com-pleted—their Certified Apartment Manager (CAM) designation the op-portunity to pick up where they left off and earn the CAM designation. Learn more about the CAMnesty program at www.naahq.org/learn/education/certified-apartment-man-ager/camnesty. q
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Apartment News • November 2013
v i s i t u s a t w w w . a z a m a . o r g
Apartment News • November 2013 13
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New members REGULAR MEMBERS
2040 CACTUS ROAD, PHOENIX, AZ 850292040 W. Cactus Rd.Phoenix, AZ 85029Phone: (714) 846-5244Fax: (714) 846-7651Contact: Aileen NishisakaUnits: 48Management Co.: Thomas J. Geiger
CASA BONITA (TUCSON)Leasing Office1016 E. Milton Rd.Tucson, AZ 85706Phone: (520) 792-1448Fax: (520) 792-6664Contact: Tina MoyerUnits: 60Management Co.: ConAm Management Corporation
PAULA GLESSNER- VALLEE & MICHAEL VALLEE18624 N. 95th St.Scottsdale, AZ 85255Phone: (425) 749-0001Contact: Michael ValleeUnits: 4IROC
REFLECTIONS ON PORTLANDLeasing Office345 N. 5th Ave.Phoenix, AZ 85003Phone: (602) 252-6620Fax: (602) 254-2243Contact: Veronica UribeUnits: 18Management Co.: Dunlap & Magee Property Management Inc.
SKYSONG APARTMENTS SCOTTSDALELeasing Office1301 N. Scottsdale Rd.Scottsdale, AZ 85257Phone: (480) 421-0121Fax: (480) 421-0122Contact: Kristie FousheeUnits: 325Management Co.: Lincoln Property Company
THOMAS J. GEIGER19226 Beckonridge Ln.Huntington Beach, CA 92648Phone: (562) 688-5062Fax: (714) 908-1919Contact: Aileen Nishisaka
ASSOCIATE MEMBERS
ABCOR, LLC3654 N. Power Rd., #150Mesa, AZ 85215Phone: (480) 641-0100Fax: (480) 641-0100Contact: Kelli StarkBusiness codes: Backflow Prevention-Certified Testing,Fire Extinguishers,Fire Sprinklers
NATURAL CHEMISTRY7186 W. Pontiac Dr.Glendale, AZ 85308Phone: (800) 753-1233Contact: Steve ArbBusiness codes: Swimming Pool Supplies & Chemicals
ODOR-AWAY.COM428 E. Thunderbird, #247Phoenix, AZ 85022Phone: (520) 971-2166Fax: (520) 423-3172Contact: Craig BertenshawBusiness codes: Odor Elimination
TEK FITNESS DISTRIBUTORSPO Box 18822Fountain Hills, AZ 85269Phone: (480) 298-3098Fax: (480) 921-9400Contact: Tim AndrewsBusiness codes: Exercise Equipment
WILDCAT FIRE PROTECTION2420 W. Ruthrauff Rd.Tucson, AZ 85705Phone: (623) 245-0636Fax: (602) 495-9291Contact: Todd SilvaBusiness codes: Fire Extinguishers
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REGULAR MEMBERS
LEONARDO MANAGE-MENT, INC.2415 E. Camelback Espla-nade, #700Phoenix, AZ 85016Phone: (213) 674-4140Fax: (213) 674-4141Contact: Douglas Mellen
PUEBLO APARTMENTSLeasing Office355 S. 12th St.Cottonwood, AZ 86326Phone: (928) 639-0068Fax: (928) 634-1300Contact: Cheryl KunzeUnits: 80Management Co.: Ventura Investment Co.
SAGEWOOD APART-MENTS (COTTONWOOD)Leasing Office330 N. 10th St.Cottonwood, AZ 86326Phone: (928) 634-9000Contact: Julie MilesUnits: 80Management Co.: Ventura Investment Co.
THE VILLAGES AT METROLeasing Office9652 N. 31st Ave.Phoenix, AZ 85051Phone: (602) 861-6234Fax: (602) 861-3266Contact: Kathryn DukeUnits: 290Management Co.: The Vil-lages at Metro
WINSLOW TRAILER PARK, LLC708 E. AspinwallWinslow, AZ 86047Phone: (928) 241-0668Contact: Monty FlackUnits: 48
ASSOCIATE MEMBERS
RESTORED RESOURCES1318 E. Estelle Ln.San Tan, AZ 85140Phone: (615) 679-1383Contact: Keith BaderBusiness codes: Water Conservation
editor’s note: All applicants who are applying to be Regular or Associate members of the Arizona Multihousing Association must complete the ap-plication and pay applicable dues. The applicant shall agree to abide by the provisions of the Articles of Incorporation, the Bylaws of the association, and by the Code of Conduct prescribed by the as-sociation.
The applicant will then be classified as a Provi-sional member. During this period, the Provisional member will have the rights and responsibilities of full membership.
Within 60 days of applying for membership, the names of the Provisional members will be pub-lished in Apartment News, and existing members will be encouraged to provide comments on the suitability of the application.
If no negative comments are received from exist-ing members within 90 days of membership ap-plication, the Provisional member will be deemed automatically approved into membership.
If any negative comments are received, the
Ethics Review Board must review the application within 120 days from the receipt of the negative comment and recommend to the Board of Direc-tors the acceptance or rejection of the application. If the Ethics Review Board does not recommend acceptance of a Provisional member, the Provi-sional member must be notified and given the opportunity to request a hearing pursuant to the Bylaws.
If the directors reject an applicant, the AMA refunds all membership fees paid except for a $35 application-processing charge.
The following Provisional members applied for affiliation in September 2013. Any AMA member in good standing can e-mail or send a letter com-menting on the acceptability of any or all applicants seeking AMA Regular or Associate member status to the AMA Ethics Review Board. The e-mail goes to [email protected]. The mailing address is: Arizona Multihousing Association, Ethics Review Board, 818 N. 1st Street • Phoenix, AZ 85004.
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On September 13, 2013, the Treasury Department and In-ternal Revenue Service (IRS)
issued long-awaited final so-called Repair Regulations (T.D. 9636) that address how expenses in connection with acquiring, maintaining and im-proving tangible property, includ-ing multifamily buildings, should be treated for tax purposes (i.e., depreci-ated or expensed).
According to the rules, owners must depreciate expenses related to constructing or permanently improv-ing a building, restoring property or converting it to an alternate use. Routine maintenance costs, however, can be immediately expensed. The rules are generally effective for tax-able years beginning on or after Janu-ary 1, 2014.
NMHC/NAA viewed the rules as overly complex and burdensome when the proposal was issued in December 2011. At our urging, the final rule includes some important changes to the “de minimis” provi-sions that make it less onerous for apartment firms to comply.
Under the proposed de minimis
rule, taxpayers issuing Applicable Financial Statements (AFSs) would have been allowed to expense as re-pair costs the greater of 0.1 percent of the taxpayer’s gross receipts for the year or two percent of the taxpayer’s total depreciation and amortization expenses. Entities not issuing AFSs, including many smaller multifamily operators, would have only been able to deduct materials and supplies that cost $100 or less.
To avoid requiring operators to track literally every expense exceed-ing $100, the industry asked for addi-tional relief. Under the final rule:
• The ceiling for what can be ex-pensed by taxpayers with an AFS is eliminated. These taxpayers can deduct up to $5,000 per in-voice or per item for qualified costs that are substantiated by an invoice.
• For taxpayers without an AFS, the $100 threshold has been raised to $500 per invoice or per item as substantiated by an invoice. Tax-payers will be required to have written accounting procedures in
place to take advantage of this de minimis rule, however.
The final rules also expand a “routine maintenance safe harbor” to the benefit to apartment provid-ers. Under the safe harbor, firms can expense routine maintenance costs,
defined as maintenance expected to be performed at least once every 10 years. q
Sector demand could bolster property valuesMultifamily mortgage delin-
quency rates dropped in the second quarter of 2013, according to a report from the Mortgage Bankers Asso-ciation, further indication that the multifamily market is picking up alongside the recovery in housing. Commercial loans overall saw a de-cline as well.
“The quarterly decline in the de-linquency rate of loans held in com-mercial mortgage-backed securities was the largest on record, and de-linquency rates for loans held by life companies and the GSEs remain low and fell lower during the quarter,” said Jamie Woodwell, vice president of commercial real estate research at MBA.
The analysis from the MBA stud-ies commercial/multifamily delin-quency rates for five of the largest investor-groups: commercial banks and thrifts, CMBS, life insurance companies, Fannie Mae and Freddie Mac. These groups hold more than 80% of commercial/multifamily mortgage debt outstanding when combined.
For multifamily loans held by Freddie Mac, the delinquency rate was 6.72 percentage points lower than the series high of 6.81% in the fourth quarter of 1992. The delin-quency rate for multifamily loans held by Fannie Mae was 3.34 per-centage points lower than below the series high of 3.62% in the fourth
quarter of 1991.In the second quarter of this year,
the 60-plus day delinquency rate for commercial and multifamily mort-gages held in life company portfolios inched down 0.01 percentage points to 0.08%. The 60-plus day delin-quency rate for multifamily loans held or insured by Freddie Mac dropped 0.07 percentage points to 0.09%.
For multifamily loans held or insured by Fannie Mae, the 60-plus day delinquency rate dropped 0.11 percentage points to 0.28%. The 90-plus day delinquency rate for loans held by FDIC-insured banks and thrifts dropped 0.26 percentage points to 2.16%, while the 30-plus day delinquency rate for loans held in CMBS dropped 0.74 percentage points to 7.81%.
Based solely on the unpaid prin-cipal balance of loans at the end of the second quarter, delinquency rates for 60-plus day loans for Fred-die Mac was 0.09%, while Fannie Mac loans saw a delinquency rate of 0.28%.
Freddie Mac Chief Economist Frank Nothaft told HousingWire that the multifamily sector is con-tinuing to strengthen significantly and should continue doing so going into 2014.
”There have been a lot of very positive developments in the multi-family apartment market,” Nothaft
said. Delinquency rates dropping and rates rising are both important for the multifamily market because it implies the revenue flow is improv-ing, he added.
“As the cash flow improves for the owners and landlords of the apartment buildings, that helps to support their payments they need to cover their expenses,” Nothaft said.
The economist added that eco-nomic fundamentals have been very positive for the multifam-ily apartment market as a result of rents increasing over the past couple of years. Nothaft added that multifamily values fell during the Great Recession parallel to a drop in single-family home values; however, the multifamily market started to improve sooner.
Multifamily values are up a fair amount over the last three years, said Nothaft. They’re not at the peak levels that they were at in 2006, but they have come back and they’re about 8-10% below where they had been at their peak. “It’s much better improvement in valuation compared to single-family properties,” he added.
Low vacancy rates coupled with a strengthening economy, which will support household formation for young potential renters, will keep the multifamily sector healthy mov-ing into next year. “Demand will support cash flow and will maintain
stability with property values na-tionwide,” said Nothaft. “It’s impor-tant to have a good cash flow,” he added.
Fannie Mae Multifamily Econo-mist Kim Betancourt said there has been ongoing demand in multifam-ily, both from the tenant side and the sales side of properties. “There’s been a big increase in demand for purchasing these multifamily prop-erties,” said Betancourt.
Looking ahead to 2014, Betancourt said demand will remain strong, but it is unlikely that factors such as rising rates and increasing home prices will have a strong effect on demand. “It’s not going to have the steep increase that it had in the past because now we’re in a more mod-erate cycle,” she said. Betancourt added that multifamily has its own demographic, so those who are un-able to own a home are more likely to rent single-family homes rather than renting an apartment.
“We anticipate it’s going to con-tinue to be a nice, steady improve-ment for the multifamily sector,” said Betancourt, who expects the delinquency rate to continue fall-ing as we approach 2014. “To me, there’s no reason why that number shouldn’t continue to decline.” q
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arizoNa multihousiNg assoCiatioN
Lockout/Tag-out Protects Workers from Hazardous Injuries, Death
By SCF Arizona
A sudden blast of steam, a jolt from an electrical short or a burst of stored mechanical
energy can cause serious injuries and even death to machinery work-ers when lockout/tag-out safety procedures are not followed.
Hazardous energy, as the Oc-cupational Safety and Health Ad-ministration (OSHA) calls it, is the danger that lurks when workers are performing maintenance and service tasks on machinery or equipment.
According to OSHA, some 3 mil-lion craft workers, machine opera-tors and laborers service equipment and face the greatest risk of hazard-ous energy. OSHA has a standard for employers to follow. These pro-cedures allow employers to create an energy control program tailored to the needs of a particular work-place or task, taking into account the machinery or equipment that is to be maintained or serviced.
Generally, appropriate lockout or tag-out devices must be applied to devices that isolate energy, thereby de-energizing machines or equip-ment. To comply with OSHA’s stan-dard, employers need to develop,
implement and enforce an energy-control program. Optimally, du-rable, standardized and substantial lockout devices should be used on equipment that can be locked out.
If lockout is not available, tag-out devices can be used, as long as they provide equal protection to employ-ees. These safety devices must iden-tify individual users, and an energy control program should allow only the employee who applied a lock-out/tag-out device to remove it.
Energy controls also apply to new or overhauled equipment that is ca-pable of being locked out. If lockout devices are unavailable for machines or equipment, an effective tag-out program should be developed, im-plemented and enforced.
Documentation is a critical part of an effective lockout/tag-out pro-gram, as are annual inspections to ensure energy control devices are durable, standardized and substantial.
OSHA says employers need to ensure their workers know, un-derstand and follow the steps in a lockout/tag-out program to control hazardous energy. Employee train-ing should cover:
• Aspects of the energy control program
• Elements of the energy control procedure and how it relates to the worker’s duties or assignment
• The various requirements of the OSHA standard related to lock-out/tag-out
OSHA has developed an inter-
active lockout/tag-out training program that includes a tutorial, hot topics and case studies. Control of Hazardous Energy, Lockout/Tagout is a downloadable e-book from OSHA. SCF Arizona also of-fers a free work safety training card and poster on lockout/tag-out; visit scfaz.com to order using our Safety Material Order Form. q
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AMA EVENT INFORMATION & REGISTRATION
COMMITTEE MEETINGSNovember 13Project S.A.F.E.Time: 2:00p.m.Location: AMA Office
November 18Big Hearts for Little HandsTime: 3:00p.m.Location: UMOM
November 20Membership CommitteeTime: 9:00a.m.Location: AMA Office
November 26Affordable Housing CommitteeTime: 8:00a.m.Location: AMA Office
November 26Government AffairsTime: 9:00a.m.Location: AMA OfficeNovember 26AMAPACTime: 11:00a.m.Location: AMA Office
December 5Community RelationsTime: 10:00a.m.Location: AMA Office
December 11Project S.A.F.E.Time: 2:00p.m.Location: AMA Office
December 16Big Hearts for Little HandsTime: 3:00p.m.Location: UMOM
December 18Membership CommitteeTime: 9:00a.m.Location: AMA Office
VALLEY EVENTSNovember 14Phoenix Maintnenance Mania Time: 7:30a.m.Location: Phoenix Convention Center, 100 N. 3rd St., Phoenix, AZ 85004
December 12Annual Industry Holiday Happy HourTime: 5:00p.m.Location: Palomar at Cityscape, 2 E. Jefferson, Phoenix, AZ 85004
TUCSON EVENTSNovember 5Associate Member Council (AMC)Time: 12:00p.m.Location: To Be Determined, check us out at azama.org for updates!November 7Tucson Maintenance ManiaTime: 8:00a.m.Location: Doubletree Tucson, 445 S. Alvernon Way, Tuc-son, AZ 85711
November 15Independent Rental Owners CouncilTime: 11:00a.m.Location: Tucson AMA Office
Apartment News • November 2013
VALLEYAMA OFFICE ** NEW ** 818 N. 1st StreetPhoenix, AZ 85004
El Zaribah Shrine552 N 40th St Phoenix, AZ 85008
TUCSONAMA OFFICE1001 N. Alvernon Way, Suite 101Tucson, AZ 85711
DOUBLETREE HOTEL TUCSONAT REID PARK445 N. Alvernon WayTucson, AZ 85711
RANDOLF GOLF COURSE CLUBHOUSE600 S. Alvernon WayTucson, AZ 85711
FLAGSTAFFLITTLE AMERICA HOTEL2515 E. Butler Ave.Flagstaff, AZ 86004
PRODUCTS & SERVICES GUIDEThe aMa suggests that members using services listed in the Products & services guide request proof of workers’ compensation insurance and contractor’s license prior to contracting work.
Reader notice: Under Arizona law, all residential and commercial contractors are required to be licensed by the state unless they fall under the handyman exemption for projects which require no building permit and are less than $750 for the total contract price. For more information or to verify the license status of an Arizona contractor, call 602-542-1525 or 888-271-9286 (toll-free outside Maricopa County) or visit www.rc.state.az.us.
• Payment flexibility (Use of credit card, debit card or coins)
• Online access to machine availability with LaundryView®
• Text message when cycle is done
To see a short video on the many benefits of Change Point® visit www.macgray.com/changepoint
1-888-MAC-GRAY
Proudly Serving Arizona2831 W. Indian School Rd., Phoenix, AZ 85017
1331 East 21st St., Tucson, AZ 85719
Learn more about Change Point.® To scan with your smartphone, download a free Barcode Scanner.
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24 Apartment News • November 2013
Holiday Happy HourPresented by the AMA Associate Member Council
You’re Invited to the Industry Partner AMA Holiday Happy Hour
Thursday, December 12, 2013Palomar Phoenix at CityScapeTwo East Jefferson Street, Phoenix, Arizona
No Cost for Regular Members to AttendRSVP to Michelle Rill: [email protected]
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Call Now for a Free Attorney Consultation602-279-0778 ext. 2 or 866-833-9411 ext. 211445 E. Via Linda, Ste. 2-610 Scottsdale, AZ 85259
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Apartment News • November 2013 25Apartment News • October 2013 25
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