COV I
D -19
IAL SPECUE ISS 20 20
ON RENTAL HOUSING
M AY J U N 2 0 2 0
Adrian Garcia
Amanda Seamans
Amber Collins
Amy Lydic
Bill Warren
Brooke Mahoney
Carrie Thomes
Christi Pyle
Christy Sanchez
Dana Bolz
Dedra Bouffard
Desiree Golden
Emily Blair
Gus Villegas
Haydee Scott
Jeanette Gonzalez
Josh Nichols
Katya Watson
Kim McGregor
Kris Burleson
Lisa Berman
Lyndsay Hanes
Lynne Williams
Meagan Johnston
Paul Cauduro
Robyn Riley
Ryan Harmon
Toni Rackley
T H E O F F I C I A L P U B L I C AT I O N O F T H E
Austin Apartment Association
YOUR SAFETY. YOUR UTILITIES. OUR PRIORITY.
We want to keep the lights on and the water running. The City of Austin cares about the health and safety of you and your residents. While social distancing, stay connected to your City Utilities and City information channels. Resources for both residents and owners and managers of multifamily properties are available. For more information, please visit: austintexas.gov/COVID19 or call 3-1-1. Š 2020 City of Austin
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CONTENTS MAY / JUNE 2020 ISSUE
FEATURES 24 COVID and the Rental Housing Industry
By Emily Blair, CEA – AAA Executive Vice President
30 Creativity Through Crisis: Balancing Work and Family During COVID-19
10
AAA Business Exchange Meaningful Connections Made
15
APEX Awards – Save the Date Property of the Year and Professional of The Year
21
Redbook Legal Seminar New August Dates Announced
29
Wild Wild West Trade Show New October Date Announced
32
26
Cutting Back on Training Could Be Costing You Part Two: For The Employee
Grease Bowl-A-Rama, February 2020 The Last AAA Event before the Shelter-in-Place Orders for COVID-19
34
NAA/TAA Update TAA Board of Directors Meeting and NAA Advocate Conference
37
PAC Investor Reception Recap from March
MAY / JUNE /
3
Austin Apartment Association 2019-20 2 0
BREAKING DOWN $1 DOLLAR OF RENT IN TEXAS There exists a misconception that rental housing owners enjoy large margins and can continue operating in the absence of rent payments.
With so much discussion around rent payments during COVID-19, the rental housing industry would like to explain the breakdown of $1 dollar of rent.
Only 8 cents of every $1 are returned to owners, including the many apartment owners who are themselves small businesses and rely on this revenue to make ends meet. Approximately 37 cents of every $1 pays for the mortgage on the property. 9 cents of every $1 is spent on capital expenditures, including roof and HVAC replacement and other important repairs.
26 cents of every $1 covers payroll, including paying employees who operate and maintain the property.
20 cents of every $1 goes to property taxes, which in turn supports the community.
The Official Publication of the
A USTIN APARTMENT A SSOCIATION 8620 Burnet Road #475 Austin, TX 78757 P: 512.323.0990 F: 512.323.2979 www.austinaptassoc.com
Communications Advisory Committee Chairs Danielle Archuleta (844) 433-3824 Stephanie Naylor (512) 335-8138
Publishing Director Emily Blair, CAE
IN EV E RY I S S U E 5 Leadership
14
Industry Update
6 Calendar
16
Diamond Sponsors
7
Presidents Perspective
18
New Members
8
Letter from EVP
22
Committee Chat
11
Market Report
38
Law In Order
Editor Amber Collins
Association Staff Emily Blair, CAE, Executive Vice President, emily@austinaptassoc.com Dana Bolz, CMP, Director of Events/Meetings, dana@austinaptassoc.com Paul Cauduro, CAE, Director of Government Relations,
paul@austinaptassoc.com Amber Collins, Director of Marketing & Communications,
amber@austinaptassoc.com Jeanette Gonzalez, Administrative Assistant, jeanette@austinaptassoc.com Amy Lydic, CAE, Director of Education amyl@austinaptassoc.com Lynne Williams, Accounting Manager, lynne@austinaptassoc.com Lisa Berman, Director of Membership Development
IFC Austin Energy
19 BG Multifamily
1
A&A Wrecker
23 Austin Resource Recovery
IBC Charter Furniture
2
Camp Construction
25 Austin Estate Gate
OBC Integrity Paving
9
Century A/C Supply
17 Contractors Inc.
35 Maintenance Supply Headquarters
35 Compound Security Systems
The advertising and article submission deadline for the July/August 2020 issue of Window on Rental Housing is May 31, 2020. All material submitted is subject to review and approval of the Austin Apartment Association. The publisher assumes no responsibility for care and return of unsolicited material. The Austin Apartment Association is affiliated with the Texas Apartment Association and the National Apartment Association. For questions concerning
lisa@austinaptassoc.com
advertising, articles or subscriptions, call (512) 323-0990. Window on Rental Housing is
Event Photos by David Cox
published bi-monthly by the Austin Apartment Association, 8620 Burnet Road #475, Austin,
www.davidcox.org
Design by Graphic Engine Design Studio
www.GraphicEngine.net
4
AD VE RT I S E R I N D EX
/ WINDOW ON RENTAL HOUSING
Texas 78757, (512) 323-0990, (512) 323-2979 fax.
20 19 -2 0 2 0 E XEC UT I V E CO MMI T T EE
2019-2020 BOARD OF DIRECTORS Kris Burleson, CAS, Gage Multifamily Services Kimberly Faulkner, Greystar Shay Mickler, The Liberty Group Cecil Domel, Belco Equities Adrian Garcia, CAM, CAPS, Bluebonnet Commercial Management, LLC Desiree Golden, CAM, CAPS, Foundation Communities
Sandy Eckhardt CREA Management
Stephani Park Roscoe Properties
President
President-elect
Ryan Harmon
Christy Sanchez
CAS
CPM, CAM
Camp Construction
Shannon Green, Weinstein Properties Lyndsay Hanes, CPM, Topaz Asset Management
Alliance Residential, LLC, Secretary/Treasurer
Vice President
Meagan Johnston, CAPS, Roscoe Properties Chelsea Kneeland, CAS, J Turner Research Sam Levassar, CAS, Camp Construction Stephanie Naylor, CAS, Flooring Warehouse Terri Needham, CAS, PS Landscapes, Inc. Christi Pyle, CAM, CAPS, LDG Development Toni Rackley, Flooring Warehouse Haydee Scott, CAS, BG Multifamily Amanda Seamans, CAS, Texas Materials a CRH Company
Stephanie Petersen, CAM Bluebonnet Commercial Management LLC
Katya Watson
Renee Zahn
CAM
NALP, CAM, ARM, CPM
VP at Large
VP at Large
Immediate Past President
Greystar
Tracy Slappey-Scott, Pinnacle An American Mgmt. Co. Missy Sterns, CAPS, LDG Development
Greystar
Bill Warren, Warren Law Firm
A A A PA ST PRE SI D ENT S John Harrison* (64)
Jim Solt* (76)
Carl E. Beck (88)
Frank Montgomery* (65)
Steve Colella (77)
Kim M. McGregor (89)
Jim Eichelberger* (66)
Ted Hendricks* (78)
Beth Holt (90)
Andy Wagner* (67)
Hank Guerrero* (79)
David Stapleton, CPM (91)
Ray Littlefield* (68)
Don Tait (80)
Sheri Gallo (92)
George Nalle* (69)
Ray Head (81)
Gina Roberts (93)
Don Jackson (70)
Ed Norton (82)
Carol Martine, CPM (94)
Gene McGregor* (71)
Bob Benson (83)
Keith Warner (95)
Ed Hamel (72)
Jimmy C. Elliott (84)
Michael R. Hill, CPM (96)
Barry Gillingwater* (73)
Joe Sharp (85)
Vicki L. Sharp, NALP, CAPS (97)
James Raper (74)
Dick Obenhaus (86)
Kim M. McGregor (98)
Rich Ellmer (75)
Susan Melton (87)
Anna Kelley* (99)
Bill Roland, CPM, CCIM (00-01) Tami Martin, NALP, CAMT, CAM, CAPS (01-02) Carol Martine, CPM (02-03) Joy Lamb, CPM (03- 04) John Raper (04-05) Debi Wehmeier, CPM (05-06) Renee Clark, CAM, CAPS (06-07) Sherry Perrin (07-08) Jana Ellis (08-09) Kara Garst, CAPS (09-10) Sarah Thompson, CAM, CAPS
Brooke Mahoney-Livesay CAPS (11-12) Sandy Eckhardt (12-13) Colleen Grahn (13-14) Robbie Robinson, CAM, CAPS, ARM (14-15) Gus Villegas (15-16) Theresa Ebner (16-17) Dwayne Stewart (17-18) Renee Zahn, CAM, NALP, ARM, CPM (18-19) *deceased
(10-11)
20 19 -2 0 2 0 COMMI T T EE CHAI RPERSO NS Austin Supervisors Council
Kimberly Faulkner Meagan Johnston, CAPS Shanna Pope Communications Advisory Committee
Education Foundation Board President
Brooke Mahoney-Livesay, CAPS Food Drive
Danielle Archuleta Stephanie Naylor, CAS
Stephanie Naylor, CAS Terri Needham, CAS Paige Russell
Community Outreach
Investment Committee
Taryn Merrill Toni Rackley
Stephanie Petersen, CAM Ben Wells, CAS
Education Advisory Council
Legislative Committee
Dedra Bouffard, CAM Krista Washbourne
Meagan Johnston, CAPS Lyndsay Hanes, CPM Stephanie Petersen, CAM
Membership A-Team
Products & Services Council
Of Counsel
Robyn Riley Carrie Thomes, CAM
Bill Warren, Warren Law Firm
Ryan Harmon, CAS Joshua Nichols
Ryan Harmon, CAS, Chair Rene Flores, CAS, Chair-elect Toni Rackley, Vice Chair Terri Needham, CAS, Immediate Past Chair
Next Gen Committee
PSC Members at Large
Tiffany Blankman John Claybrook Brooke Ludwig
Kris Burleson, CAS Brian Hackworth Chelsea Kneeland, CAS Shay Mickler, CAM, CAS Ashley Pruden, CAS Robyn Riley Anna Samaratunga, CAS Haydee Scott Carol Taylor
Membership M-Team
Political Action
Theresa Ebner, CAM, CAPS, CPM Gus Villegas
Texas Apartment Association
512-479‑6252 National Apartment Association
703‑518‑6141
MAY / JUNE /
5
Calendar of DATE EVENT
6
PLACE
TIME
27 AAA Webinar - Austin Area Compliance: Cares Act, City Ordinances, and Court Orders ZOOM 3:00pm-4:00pm
JUNE 2020
8
AAA Webinar: Media 101 for Property Managers
12
Education Advisory Council ZOOM 12:00pm-1:00pm
13
Webinar Wednesday: Follow Up Frenzy WEBINAR 1:00pm-2:00pm
10
Webinar Wednesday: We Are Drowning From Change! Is the Pace of New Initiatives, Software and Policy Changes Leaving Your Team Overwhelmed? WEBINAR 1:00pm
20
AAA Webinar - Pools & Amenities: What Real Estate Professionals Should Know Before Opening ZOOM 9:30am-10:30am
24
Webinar Wednesday: Toni Blake Presents – Closing on First Contact WEBINAR 1:00pm-2:00pm
20
Webinar Wednesday: From Leasing to Leadership – Creating a Path to Career Success WEBINAR 1:00pm-2:00pm
/ WINDOW ON RENTAL HOUSING
ZOOM 12:00pm-1:00pm
DATE EVENT
PLACE
TIME
shutterstock
MAY 2020
EVENTS
President’s
PERSPECTIVE Sandy Eckhardt
CREA Management 2019-2020 President
AN INDUSTRY WHO CARES
New Solutions, Ways to Connect, and New Perspectives Have Come Out of the COVID-19 Crisis
T
hey say “Don’t let a crisis go to waste” – something I am sure you’ve heard at some point during this global pandemic. That certainly has been mentioned a time or two with AAA leadership; and that thought has challenged us. Challenged us to connect in new ways, seek new solutions, to look at things with a new perspective, and to focus on the positive and powerful stories of the actions of people in our industry. The COVID-19 crisis has been that opportunity for the greater Austin region to hear more from “the landlords” than ever before, and for rental housing providers to be presented in the positive light that they deserve. Let’s rebrand that term “landlord”, shall we? We are rental housing providers. We are small business. We are investors. We are local. We are an integral part and care deeply about our community. We care. Never has the community been able to see this and hear this more directly than now. We care about our residents – almost 90% of our industry offered payment plans, rent deferrals and whatever they could to meet the needs of their residents in making their rent payments these last few months. We advocated for rental relief with Congress. As the Federal government issued the largest relief package in history, we had a voice on behalf of our residents and shared how critical rent relief for renters is in times like this. We also advocated for emergency rental assistance for right here in Austin.
On top of all that, we saw communities stay connected in so many unique ways throughout this time – whether it was balcony parties, activities for kids, virtual health and wellness initiatives – the sky was the limit! How great it was to see the creativity and care displayed. We care about our teams – we have gone to bat for them! Whether it was gearing them up with personal protective equipment or putting them in a safe environment (like their own home!) – we worked hard to create a healthy and safe workplace. We also care about our community. AAA staff and leadership established new or renewed connections with local nonprofits, the Housing Authority, and our homeless service providers. We launched a R.E.N.T. program with the City of Austin, and supported the Red Cross in their response efforts during this time. We also care about our members – you! In April, we had a team of volunteers reach out to all our property members to see how you were doing. I hope you were able to connect and directly hear the ways the Association has been here to support you and your business. But guess what? The good news is - none of this stops at the end of the COVID-19 pandemic. Before, during and after – we have been an industry that cares. We are grateful for the opportunity for the broader community to see a glimpse of this during this time. Thank you for being a part of this wonderful industry. I look forward to continuing to serve you as President a little while longer.
I look forward to continuing to serve you as President a little while longer.
MAY / JUNE /
7
Letter from
THE EVP
WE HEAR YOU AND WE ARE HERE FOR YOU. Can you believe this? Not “CAN YOU BELIEVE THIS?!” which I am sure we have all exclaimed at some point over the past couple of months. Rather — is this something you can believe?: We hear you and we are here for you.
B
ecause, if I can have one thing as a result of all of this — one thing to be remembered about our Association in the COVID-19 pandemic — I sincerely hope that this statement is believed to be true by our members. We hear you and we are here for you. Never has our industry been more at the forefront of a situation. With the majority of households (over 56% to be exact) in Austin renting — and every household feeling an impact of this crisis — the rental housing providers are right at the core of the COVID-19 pandemic. The amount of adaptation, flexibility, innovation and energy the industry has put forward to help your community’s residents, your teams and yourselves to get through this health crisis — has been inspiring to see. Right away it became clear we needed to be listening, asking the right questions, and striking up the right conversation with the media. So, we hear you. Along with the industry response, never has our team here at the Association had to make sure we were trying to be one step ahead to give you the critical information you needed — sometimes on a daily basis. And your voice was heard. Your voice has been represented by a small group of members — our COVID-19 Task Force — who are serving the Association and leading us all through to the other
8
/ WINDOW ON RENTAL HOUSING
Emily Blair, CAE
2019-2020 Executive Vice President
side. I want to thank those members for their time and dedication. There has been much asked of that group (and at all hours)! Thank you to Renee Zahn and Sandy Eckhardt for leading us in our endeavors and making sure our member’s voice was brought forward. We are here for you. You will hear me say this time and time again — this is YOUR Association. We are here to serve you and [hopefully] make your job a little brighter, help you work smarter, develop your skills, and offer ways for you to connect — even during global pandemic! I know we are all wishing for things to get back to normal, but one thing is certain: the “new normal” is your Association being responsive, relevant, and boldly advocating for you — just as we have strived to be during these past couple of months. Now more than ever, thank you for your membership and for allowing us to serve you. Stay healthy and keep washing your hands,
Emily Blair, CAE
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MAY / JUNE /
9
AAA BUSINESS
EXCHANGE MEANINGFUL CONNECTIONS MADE
How to Enter the AAA Business Exchange Lottery Drawing this May. Enter the drawing: austinaptassoc.com/business-exchange
PUT YOUR NAME IN THE HAT Suppliers interested in attending the Business Exchange must enter the drawing at austinaptassoc.com /business-exchange between May 1 - May 31, 2020. Drawing is for option to purchase two tickets.
SECOND CHANCE LIVE AUCTION FOR TWO REGISTRATIONS Auction immediately following the June 3 lottery drawing at AAA. You must attend in-person to participate in the auction.
ARE YOU FEELING LUCKY? Lottery drawing for 25 supplier member registration spots held at 11:00 am, June 3 at the AAA office. Everyone is welcome to attend the drawing.
YOU WIN! NOW WHAT? Companies drawn in the lottery will have option to purchase UP TO two tickets to the Business Exchange at $350 per attendee. Payment is due within 48 hrs of win confirmation from AAA.
BUSINESS EXCHANGE DETAILS Thursday, July 9, 2020 | 1:30pm-5pm Canyon View Events Center 4800 Spicewood Springs Rd. , Austin, TX $350 per supplier attendee - max 2 No walk-ins day of event. Networking reception followed by one-on-one meetings.
10
/ WINDOW ON RENTAL HOUSING
Enter drawing: austinaptassoc.com/business-exchange Drawing submissions accepted online only May 1-31, 2020 Questions? Email Dana@austinaptassoc.com
mparison Overview
roperty Type: Conventional, Affordable Housing, Student Housing, Senior Housing
es a statistical analysis of the specified target area. Included is information on current and historical rent
es, unit mix and amenity information per property, current and future construction for the specified area,
First Quarter, 2020
n figures and a sales analysis.
upancy, Rental Rates & New Units Added
ent/Mo.
Concession Value
New Units Added
% Occ 4,500
What started out as a typical first 4,000 quarter, took a downturn as the 3,500 reality of the global pandemic 3,000 descended on the city. 2,500 Occupancy rates that started off on 2,000 an even keel, plummeted at the end of the quarter. 1,500
30,553 # OF
# OF
% OF
AVG
AVG
AVG
PROPS
UNITS
UNITS
SIZE
$/SF
$/MO
320
79,496
33%
914
$1.72
$1,569
313
81,890
34%
964
$1.44
$1,383
$1.45 $1,118 $153,620
422
80,916
33%
770
1,055
242,302
100%
882
1,055
242,302
# OF PROPS
882
$1.54
$1,356
$1.54
$1,356 8
# OF
% OF
AVG
AVG
AVG
UNITS
UNITS
SIZE
$/SF
$/MO
48
5,605
2%
743
$1.54
$1,141
111
18,773
8%
758
$1.45
$1,098
0.7%/ $9
94.6%
1Q20
4Q19
3Q19
1,000 under Managers, finding themselves lockdown and working with500skeleton crews, adjusted quickly and0 began offering virtual tours by website, Facetime, YouTube or provided selfguided tours. Those with a more ANNUAL CHANGE %/$ AVG integrated website for quality CONC OCC % OCC % prospect interaction $/PSF held up better 1.7%/ 89.5% and$28 adjusted easily. 2.55% 0.46% 2Q19
3Q18
2Q18
29,671 1Q18
4Q17
3Q17
2Q17
1Q17
4Q16
3Q16
2Q16
1Q16
4Q15
-1,405
1Q19
$1.55
4Q18
93.14%
42,067
17%
732
$1.46
$1,065
97
28,111
12%
920
$1.44
$1,325
246
63,807
26%
971
$1.44
$1,394
314
78,166
32%
918
$1.70
$1,564 1.4%/ $22
92.9%
$2,500 $2,000
1500
$1,500
1000
$1,000
500 0
$500 0
1
3.99%
4.03%
While investors remain interested in 27 5,773 2% 878 $1.61 $1,417 6.6%/ $100 46.2% 30.33% -19.21% the Austin area, most deals that 1,055 242,302 100% 882 $1.54 $1,356 1.1%/ $15 92.9% 4.69% -0.03% were previously underway were 1,055 242,302 882 $1.54 $1,356 1.1%/ $15 92.9% 4.69% -0.03% challenged by market concern, tightened lending and terms that were generally unfavorable to a n contained herein was obtained from our industry sources and other third parties, and we have used commercially reasonable efforts to gather, uch information. NONETHELESS, WE MAKE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, INCLUDING ANY WARRANTY OF MERCHANTABILITY current ULAR PURPOSE OR USE, WITH RESPECT TO THE INFORMATION CONTAINED HEREIN. All information shouldpurchase. be independently verified by the user of
2
3
AVG SIZE
6.84% 0.05%
Construction news was mixed. 0.8%/ $9 94.5% 4.13% -0.48% Projects that were already underway 1.1%/ $15 92.9% 4.69% -0.03% continued, and developers that 1.1%/ $15 92.9% 4.69% -0.03% intended to start prior to March 15th ANNUAL CHANGE %/$ did. However, AVG those with a date CONC OCC % $/PSF OCC % thereafter typically did not break 0.6%/ $7 95.6% 3.16% -0.56% ground and temporarily established a 1.1%/ $12month93.8% three delay or2.69% a wait-0.96% and see 0.7%/ $8 95.0% 5.11% -0.17% approach. Submittals have remained 0.7%/ $10 breaking 94.3% 3.28% 0.20% record throughout the year 0.6%/ 94.5% the 4.90% but$9tapered since last of-0.18% March.
212
Unit Size/Average $ per Month 2000
$0
4+
AVG $/MO
# Sales / Avg. Price per Unit 120
$200,000
100
$150,000
80 60
$100,000
40
$50,000
20
$0
0 2015
2016
2017
# Sales
2018
2019
1Q20
AVG $/Unit
f this report in whole or part is prohibited without prior written consent of Austin Investor Interests. LLC.
Date Produced: 04-May-2020
www.apartmenttrends.com by Austin Investor Interests, LLC 512-261-0100 | Copyright Š 2020
MAY / JUNE /
11
Market Comparison Overview Market: Austin Region, Property Type: Conventional, Affordable Housing, Student Housing, Senior Housing
Overview This report provides a statistical analysis of the specified target area. Included is information on current and historical rent and occupancy rates, unit mix and amenity information per property, current and future construction for the specified area, historical absorption figures and a sales analysis.
Historical Occupancy, Rental Rates & New Units Added Avg. Rent/Mo.
Concession Value
New Units Added
% Occ
100%
4,500
90%
4,000
80%
3,500
70%
3,000
60%
2,500
50%
2,000
40%
1,500
30% 20%
1,000
10%
500
0%
CLASS
# OF
# OF
% OF
AVG
AVG
AVG
PROPS
UNITS
UNITS
SIZE
$/SF
$/MO
320
79,496
33%
914
$1.72
A
1Q20
4Q19
3Q19
2Q19
1Q19
4Q18
3Q18
2Q18
1Q18
4Q17
3Q17
2Q17
1Q17
4Q16
3Q16
2Q16
1Q16
4Q15
3Q15
2Q15
0
ANNUAL CHANGE
%/$
AVG
CONC
OCC %
$1,569
1.7%/ $28
89.5%
2.55% 0.46%
$/PSF
OCC %
B
313
81,890
34%
964
$1.44
$1,383
0.7%/ $9
94.6%
6.84% 0.05%
C
422
80,916
33%
770
$1.45
$1,118
0.8%/ $9
94.5%
4.13% -0.48%
Target Mkt Total
1,055
242,302
100%
882
$1.54
$1,356
1.1%/ $15
92.9%
4.69% -0.03%
Overall Mkt Total
1,055
242,302
882
$1.54
$1,356
1.1%/ $15
92.9%
4.69% -0.03%
CONS.
# OF
DECADE
PROPS
# OF
% OF
AVG
AVG
AVG
UNITS
UNITS
SIZE
$/SF
$/MO
%/$ CONC
AVG OCC %
ANNUAL CHANGE $/PSF
OCC %
1960s
48
5,605
2%
743
$1.54
$1,141 0.6%/ $7
95.6%
3.16%
-0.56%
1970s
111
18,773
8%
758
$1.45
$1,098 1.1%/ $12
93.8%
2.69%
-0.96%
1980s
212
42,067
17%
732
$1.46
$1,065 0.7%/ $8
95.0%
5.11%
-0.17%
1990s
97
28,111
12%
920
$1.44
$1,325 0.7%/ $10
94.3%
3.28%
0.20%
2000s
246
63,807
26%
971
$1.44
$1,394 0.6%/ $9
94.5%
4.90%
-0.18%
2010s
314
78,166
32%
918
$1.70
$1,564 1.4%/ $22
92.9%
3.99%
4.03%
2020s
27
5,773
2%
878
$1.61
$1,417 6.6%/ $100
46.2% 30.33% -19.21%
Target Mkt Total
1,055
242,302
100%
882
$1.54
$1,356 1.1%/ $15
92.9%
4.69%
-0.03%
Overall Mkt Total
1,055
242,302
882
$1.54
$1,356 1.1%/ $15
92.9%
4.69%
-0.03%
Disclaimer: The information contained herein was obtained from our industry sources and other third parties, and we have used commercially reasonable efforts to gather, verify, analyze and report such information. NONETHELESS, WE MAKE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, WITH RESPECT TO THE INFORMATION CONTAINED HEREIN. All information should be independently verified by the user of this report. Reproduction of this report in whole or part is prohibited without prior written consent of Austin Investor Interests. LLC.
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Page 1 of 2
Date Produced: 04-May-2020
www.apartmenttrends.com by Austin Investor Interests, LLC 512-261-0100 | Copyright © 2020
Unit Mix Summary
BEDROOM(S)
0 1 2 3 4+ Target Mkt Total Overall Mkt Total
Rentable Units
% TARGET
AVG
AVG
AVG
MKT
SIZE
$/SF
$/MO
8,072 122,266 89,250 16,717 5,979 242,302 242,302
3.3% 50.5% 36.8% 6.9% 2.5% 100.0%
472 715 1,033 1,272 1,519 882 882
$2.26 $1.67 $1.40 $1.33 $1.74 $1.54 $1.54
0
Annual
1
Change
2
3
4+
6.9%
$/MO
$1,065 $1,197 $1,449 $1,696 $2,643 $1,356 $1,356
4.82% 5.58% 4.38% 3.58% 10.56% 4.79% 4.75%
36.8%
50.5%
Amenity Comparison AMENITY
% TARGET MKT
AMENITY
% TARGET MKT
AMENITY
% TARGET MKT
Fitness Center
75%
Business Center
60%
Parking Garage
17%
Media Room
23%
Pool
93%
Attached Garages
15%
Game Room
28%
Mixed Use
7%
Detached Garages
27%
Target Area Construction #UNITS
Units Absorbed
Submitted
26,300
5,000
Approved
4,253
4,000
Proposed
10,273
3,000
Under Construction
29,671
Net Unit Change*
11,841
New Units Added*
11,005
Units Absorbed*
10,925
1,000 0 -1,000
1Q20
4Q19
3Q19
2Q19
1Q19
4Q18
3Q18
2Q18
1Q18
4Q17
3Q17
2Q17
1Q17
4Q16
3Q16
2Q16
1Q16
-2,000 4Q15
*Past 12 mo. *Net unit change is the change in rentable units due to new units added, down units or property type change *New units added include additions from new development
Net Unit Change
2,000
3Q15
___________________________________
2Q15
STATUS
Target Area Sales #PROJECTS
# UNITS
AVG $/UNIT
AVG $/SF
# LISTED FOR SALE
65
17,486
$166,052
$198.95
45
*Sales figures are reported for the previous 12 months.
Disclaimer: The information contained herein was obtained from our industry sources and other third parties, and we have used commercially reasonable efforts to gather, verify, analyze and report such information. NONETHELESS, WE MAKE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, WITH RESPECT TO THE INFORMATION CONTAINED HEREIN. All information should be independently verified by the user of MAY / JUNE / this report. Reproduction of this report in whole or part is prohibited without prior written consent of Austin Investor Interests. LLC.
13
Date Produced: 04-May-2020
Industry UPDATE LEGAL QUESTIONS ABOUND By Paul Cauduro, AAA Director of Government Relations
O
The AAA spoke out citing that discussions between residents and property management regarding rent payment plan agreements and late-fee waivers were occurring in good faith throughout the city.
n Thursday, March 26, in response to the anticipated economic hardships brought on by the coronavirus pandemic, the Austin City Council has passed an ordinance requiring a 60-day “Notice of Proposed Eviction” before an official “Notice to Vacate” can be posted using the normal procedures outlined in the Texas Property Code. On the same day, the Mayor issued on order prohibiting the issuance of a Notice to Vacate to any resident living in a rental unit or to any business occupying commercial property. When the ordinance passed and the order was issued, many renters and housing advocates spoke out by saying that the ordinance did not go far enough and wanted to see full rent suspension and rent freezes. The AAA spoke out citing that discussions between residents and property management regarding rent payment plan agreements and late-fee waivers were occurring in good faith throughout the city. The AAA pointed to the new
lease forms quickly distributed by the Texas Apartment Association to address the rent deferral situations unique to each resident, and stated that unnecessary government actions could create confusion among residents and rental property owners.
The fact that some city leaders proclaimed, before a vote was even taken, that the ordinance established a 60-day “grace period” for renters only added to the confusion. Before the vote the Austin Apartment Association (AAA) also re-
Read about AAA’s current advocacy issues at austinaptassoc.com/currentissue.
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minded the Council that the Texas Supreme Court had addressed eviction delays and implemented orders preventing new evictions from happening through the end of April. The AAA also informed city leaders that the actions were likely illegal. The legality of the city’s actions was examined by a top-notch law firm engaged by the AAA that specializes in municipal law. In a fourpage legal brief submitted to the city before the vote was taken, the AAA clearly outlined the many legal issues and questions raised by enacting a new 60-day pre-eviction notice requirement. The primary legal issue raised by the AAA is that when cities exercise a discretionary power outside its normal powers and takes an action directed only at a certain segment of the general public (renters in this case) the courts have found that no governmental immunity exists. When no government immunity exists then cities can be found liable for damages. In other words, rental property owners economically harmed by the action could file a lawsuit against the city and the courts could rule that the city must pay damages. With more than 200,000 renter households in Austin, the actions taken by the city pose a huge economic risk should the city end up on the wrong side of a court ruling. The other legal issue raised is that the city actions tread on those that are solely within the scope of the Texas legislature. In this case, a new notice procedure that must take place before the requirements of the Texas Property Code can take place could ultimately create an unmanageable patchwork of city notice requirements throughout the state. This issue has been raised before
with regard to a City of Austin action such as requiring rental property owners to accept federal housing choice vouchers (the 2014 “Source of Income Ordinance”) and the requirement that commercial businesses implement sick leave policies for employees (the 2018 Sick Leave Ordinance). Both of these city actions were viewed to be beyond the bounds of city powers and stirred actions by the Texas Legislature to void the ordinances. The legalities of the city’s 60-day Notice of Proposed Eviction will continue to be discussed long after the ordinance is set to expire on May 8. It is certain that state lawmakers may soon look closely at the city’s action through the legal lens outlined in AAA’s legal brief, but our legal lens will not be the only one used. Other legal questions surrounding the limits of mayoral and related city powers during a declared disaster have also been raised. Whatever the lens used, the outcome will have long-lasting implications if, and when, similar actions are taken again in the future whether taken during a pandemic or not.
Legal Issues Create Uncertainly for Austin’s Land Development Code Rewrite A legal ruling in mid-March has put the rewrite of the City of Austin Land Development Code (LDC) in legal limbo. The ruling voided two votes City Council had previously taken to advance the LDC toward a third and final vote. The legal setback comes after the spending nearly eight years and more than $10 million trying to rewrite the LDC. The final third vote was supposed to be held in
late March or early April, but was delayed due to the coronavirus pandemic. The legal issue that voided the two previous votes surrounds the legal rights of homeowners to protest changes to the zoning of their land. The city had been moving forward on the LDC by claiming that a citywide code revision is not the same as typical rezoning cases and that the rules for rezoning do not apply. Under state law, property owners can challenge changes to the zoning of their property or those nearby, and if there is a challenge a three-fourths vote of the council is needed to pass the new zoning. In the case of Austin’s LDC Rewrite, several homeowners challenged the code rewrite because it included massive changes to the zoning code. The two votes taken to advance the code were 7 to 4, but the Judge ruled that since the LDC contains zoning provisions the normal rules apply and therefore the three fourths vote requirement is needed to overcome the homeowners challenge to the change. In Austin this means nine of the eleven Council members would need to vote to overcome the homeowners challenge. Many city hall observers feel it is unlikely that nine votes can be found to thwart the homeowners’ challenge to the code changes. On April 16 the city’s legal department filed a notice that it will appeal the March ruling. Given the legal wrangling over the code, the difficulty in getting to nine votes, and the delays to the city’s approval process due to the pandemic, it is uncertain when the LDC will get back on track. For more information about these issues contact paul@austinaptassoc.com.
SAVE THE DATE
d ar an e Y of the y t r e Prop Year e h t al of n o i s s Profe ards w A
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MAY / JUNE /
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New MEMBERS AAA welcomes these new members who joined the association between February 1, 2020 and March 31, 2020. When deciding where to make your next purchase for your property, please consider an AAA supplier member.
NEW PROPERTY OWNERS/MANAGEMENT COMPANY MEMBERS Carpenter Properties
Schulte Properties
Couri Properties
Spatz Development Co
Carlton Carpenter Wimberley, TX 1 unit
Kate Couri Austin, TX 4 units
Stephen Schulte Kerrville, TX 1 unit
Kayla Boyd Austin, TX 72 units
Elmington Property Management
Spectrum Realty Group
Irwin R Rose & Co - Amalgamated Mgmt Corp
The Michaels Organization
NCRC Properties, LLC
Wilder Hale Properties
Keira Caldwell Nashville, TN 426 units Lacey Gilley Dallas, TX 383 units
Nikki Rowling Burnet, TX 8 units
Mary Proctor McKinney, TX 268 units
Maggie Woolfork San Marcos, TX 352 units
Bruce Kerr Florence, TX 10 units
NEW SUPPLIER MEMBERS Cleaning Service-Crime Scene
Fire Protection
BioTechs Crime Scene Cleaning
Century Fire Protection
Audrey Trinidad 1117 W Hildebrand Ave San Antonio, TX 78201 512-999-8200 www.BioTechsOnline.com
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/ WINDOW ON RENTAL HOUSING
Jerry Dolan 3000 Joe DiMaggio Blvd, Suite 22 Round Rock, TX 78665 254-718-9807 www.Centuryfp.com
Fire/Water Restoration
YOUR APARTMENT WORKFORCE SOLUTIONS PROVIDER
PuroClean Israel de la Vara 9705 Burnet Rd, Ste 317 Austin, TX 78758 512-956-5700 www.puroclean.com/pps-tx
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Certified & Lead Maintenance Technicians
Flooring-Sales & Installation
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Cash Flooring LLC Coy Sanders 365 Warehouse Dr #119 Buda, TX. 78610 832-860-3226 coysnd@gmail.com
Groundskeepers & Housekeepers Experienced & Specialty Leasing Tomorrow's Talent Leasing Graduates Community & Assistant Managers
Plumbing Contractors
Holiday & Vacation Coverage Student Housing Turn
Allstate Plumbing Larry Mondik 1914-A West Howard Lane Austin, TX. 78728 512-990-8600 larry@allstate-plumbing.com
Executive Placement Search Package Management Direct Hire Concierge Services www.bgmultifamily.com.
Reliant Plumbing Brooke Anderson 107 Ranch Road 620 S, Ste 105 Austin, TX 78734 512-662-7410 www.reliantplumbing.com
CONTACT YOUR AUSTIN TEAM TODAY: AUSTIN.ORDERS@BGMULTIFAMILY.COM
Pressure Washing
Security & Surveillance
Out The Blue Pressure Washing & Detail
Alert 360
Brayden Beynaerts 7310 Menchaca Rd Austin, TX 78715 832-525-9416 www.outtheblueservices.com
Roofs-Contractors Hermes Renovations Peter Hermes 3001 S Lamar Blvd, Suite 250 Austin, TX. 78704 833-HERMES9 www.hermesrenovations.com
Viking Roofing & Construction, LLC Roland Castillo 157 Lorne Rd Canyon Lake, TX 78133 210-219-6906 www.vikingroofs.com
Debra Villarreal 11500 Metric Blvd #215 Austin, TX 78758 512-748-0865 dan.ward@alert360.com
Spot Rish Gupta 262 Convington Road Los Altos, CA 94024 415-515-8353 www.spotai.co
Siding-Contractors Infinity Roofing & Siding Inc Mike Cannon 8305 Hwy 71 W #260 Austin, TX 78735 512-372-9757 www.infinityroofer.com
MAY / JUNE /
19
Subscribe & save. ACE YOUR EDUCATION ALL YEAR! UNLIMITED SEMINARS. UNLIMITED STAFF. ONE LOW PRICE. Is your company part of AAA’s Annual Career Education Subscription Program?
PLANS START AS LOW AS $280 PER YEAR | AUSTINAPTASSOC.COM/ACE-SUBSCRIPTION UNLIMITED SEMINARS
Most seminars are presented in half day sessions, eliminating significant time away from the workplace. All classes are held in the AAA Classroom at 8620 Burnet Road, Suite 475. AAA guarantees a minimum of 60 hours (20 seminars) each year.
UNLIMITED STAFF
The Apartment Career Education (ACE) Subscription Program has been designed to be affordable and valuable to our apartment community members. With an annual ACE subscription, an unlimited number of your community personnel may attend any ACE-eligible seminar...all for one price.
ONE LOW PRICE
Single class fees are typically $80 per attendee. Subscribers who enroll in the NAAAEI Designation Program will receive a 10% discount. The program is based on a calendar year and will be prorated for the year based on the sign up date.
APARTMENT COMMUNITY SUBSCRIPTION PLAN PRICING # OF RENTALS 0-24 25-49 50-99 100-199 200-299 300-499 500+
ANNUAL PRICE $280 $420 $630 $700 $840 $910 $1050
Questions? Contact Amy Lydic at 512-323-0990 or amyl@austinaptassoc.com.
20
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Register Review Realize REDBOOK Legal Seminar 2020 Join Attorney Bill Warren, Warren Law Firm, For The Must-Attend Seminar of 2020! NEW SEMINAR DATES: South on August 25 OR North on August 27 (You will automatically be moved to the corresponding SOUTH or NORTH August date if you had already registered for the March or April seminars) Sharpen your knowledge of your legal rights and responsibilities as a rental housing owner or manager by participating in one of the REDBOOK “Multi-Family Rental Housing Legal Seminars” being offered by AAA. These full-day intensive seminars cover legal, leasing and liability issues from the perspective of onsite apartment managers, assistant managers and leasing agents. They emphasize changes in management practices required by new laws passed during the last legislative session and updates on key regulatory issues.
2 DATES & 2 LOCATIONS TO CHOOSE FROM All-Day Session•$234 ($374 with Redbook purchase)•Lunch Included SOUTH Tuesday, August 25, 2020 9:00 AM - 4:30 PM TCEA Conference Center 3100 Alvin DeVane Blvd., Building B Austin, TX 78741
NORTH Thursday, August 27, 2020 9:00 AM - 4:30 PM The Commons at J.J. Pickle Research Campus 10100 Burnet Rd. Austin, TX 78758
REGISTER: www.austinaptassoc.com/redbook All AAA Education: www.austinaptassoc.com/education
CONTINUING EDUCATION CREDITS Must be present for your entire session. Five (5) TREC/ MCE & NAA/CEC credits given for the All-Day Session. Must bring real estate license number for MCE credits. Course Name and Number: Apartment & Rental Housing Legal Seminar -- 38665 Provider: Texas Apartment Association (TAA) -- 0087
LIMITED ENROLLMENT Your place is guaranteed only after you receive an email confirmation (within 48 hours of submission).
CANCELLATIONS You must submit your cancellation in writing. For the August 25 seminar, cancel by 5:00 p.m., August 18. For the August 27 seminar, cancel by 5:00 p.m., August 20.
MAY / JUNE /
21
Committee
CHAT
Danielle Archuletta
COMMUNICATIONS ADVISORY COMMITTEE (COMAC): Danielle Archuleta of Fetch Package Stephanie Naylor of Flooring Warehouse Stephanie Naylor
THIS MONTH, WE FEATURE THE COMMUNICATIONS ADVISORY COMMITTEE (COMAC) This committee plans editorial content and develops communication strategy for the association. Members decide and procure the content and promote advertising for the Window magazine, email newsletters and the website, as well as discuss social media and other communication media of the association.
COMAC IS LED BY:
How long have you been involved? DA: A little over 3 years SN: Almost 12 years.
Tell us about where you work and how long you’ve been there? DA: Fetch Package for almost two years. I’m the Sales Manager for the Austin and Phoenix markets. SN: Flooring Warehouse. I’ve been here for 12 years.
What do you like most about AAA? DA: Moving from another city and starting from scratch was hard. I loved having that instant feeling of connection that the Association gave. I was able to meet people and develop friendships quickly because of a common cause. SN: The people. They’re my best friends and family all rolled into one fun group.
Danielle Archuleta of Fetch Package Stephanie Naylor of Flooring Warehouse
What do you love most about your job? DA: The amazing people I work with and for. SN: The people. I get to work with some of the very best and have the opportunity to meet lots of fantastic people too. How did you get involved with the association? DA: I’ve been a part of the local association since moving to Austin. My counterpart who was moving for another role was involved and took me over to the Association office to meet the team. SN: I first started by attending Community Outreach and was immediately hooked by all the friendly people.
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What do you like most about being a committee chair? DA: I like that I feel like I am making a difference. You don’t have to be a committee chair to influence change and make a difference but I like the responsibility of helping make the changes come to life. SN: Helping to guide the direction of our association and meeting new people. What was your first job? DA: Working for my dad helping answer phones and take messages. SN: Taco Bell
What was your favorite school subject? DA: Science and Math SN: Chemistry or Writing What inspires you? DA: I find inspiration in family, friends, work, nature but the person who inspires me to be my best is my daughter. SN: On a good day, hopefully thousands of small things – smiles from a friend, reading a good book, snuggling my dog. What is your leadership style? DA: Coach, I really have always appreciated working for coach/mentor personality types and I try to emulate a lot of their leadership style. SN: Participatory – I like buy-in. What do you do in your free time? DA: Travel, hike, attempt to grow plants, spend time with my friends and family who are spread out all over the country. SN: Swim with my kiddos and running (um, jogging slowly). Also love seeing movies with my husband. What is your favorite drink? DA: Orangina, it’s been my favorite since I can remember. SN: Mojito
Apartment Recycling Changes Multifamily recycling requirements are changing on October 1, 2020 to: • 24 gallons of recycling per unit per week OR • equal capacity for recycling and landfill trash Contact your hauler to update your recycling service this fall. The City of Austin requires all multifamily owners/managers to provide convenient access to recycling for tenants and employees. New requirements take effect October 1, 2020.
Learn more at
AustinTexas.gov/URO
Where were you born? DA: Milwaukee, Wisconsin. My dad’s family is from there and my mom’s family is in Western NY State SN: I was born in Elgin, Illinois (it’s pronounced L-gin, not like the Texas city) What is your favorite family tradition? DA: When I’m at my parent’s house (weather permitting) we have a bonfire and play name that tune. We all try and stump each other with one-hit wonders. SN: We decorate like crazy for Halloween What is your favorite AAA Event? DA: Food Drive Delivery Day or the Gala SN: Any event where we get to dress up. I rarely do it, so it’s fun to actually do my hair and put on deodorant. What would your super power be? DA: Teleportation - I love to travel but I don’t always love the hassle of flying/ driving. All of my family lives out of state and it would be so nice to see them more often. SN: Time travel (or the ability to be in multiple places at one time)
What would people be surprised to know about me? DA: I’d really like to be a beekeeper at some point. Not as a profession but as a hobby. SN: I tried out for cheerleading. I was horrible. If you were shipwrecked on a deserted Island, and all your human needs – such as food and water – were taken care of, what two items would you want to have with you? DA: Music and coffee SN: iPad & wifi Favorite Breakfast Taco? DA: Torchy’s SN: Don’t have a favorite breakfast taco – love all of them.
Windows-Ad-HalfPage_2020-1
MORE ABOUT COMAC
When do they meet? Meets Quarterly in the mornings around 9am, at the Association (schedule varies). Who can join? All members! This is open to suppliers, owners, and management company members. How to join? Contact the Committee Chairs or Staff Liaison to obtain the meeting schedule. Join anytime throughout the year. Staff Liaison: Amber Collins Director of Marketing & Communications amber@austinaptassoc.com direct (737) 300-1101
If someone wrote a biography about you, what do you think the title would be? DA: Overcoming Challenges and Being Kind SN: She Has So Many Questions To find out more, contact Amber Collins at amber@austinaptassoc.com
MAY / JUNE /
23
COVID and the
Rental Housing Industry BY EMILY BLAIR, CAE – AAA EXECUTIVE VICE PRESIDENT By way of Wuhan, China, a strange new pneumonia of unknown cause was reported in December 2019 to the Chinese World Health Organization (WHO). The virus quickly spread, and the public health emergency was declared of international concern in late January as Europe and the U.S. report their first cases.
T
he World Health Organization named this new illness the coronavirus disease of 2019 (COVID-19). By February, the Chinese doctor who warned fellow doctors about the initial outbreak died of the disease, the US experienced its first death, and countries like Italy went entirely on lockdown to slow the spread. Coronavirus (COVID-19) guidance and preparations ramped up worldwide, as individuals and businesses anticipated COVID-19 arriving in our local communities and the virus escalated to a pandemic classification. It was likely early March when most Austinites felt the local impact of the COVID-19 virus. A milestone for many became the City of Austin’s cancellation of South by Southwest (SXSW) – an unprecedented move in the festival’s 34-year run. Then, community-wide chatter about the presence, growth, and the ever-familiar-term “flatten the curve” messages started flooding the airways. Real estate managers around the world quickly became concerned about the health and well-being of their residents, as well as operational and business implications, related to the outbreak and spread of COVID-19. Property management companies began in early March preparing their employees and properties by issuing guidelines, reviewing cleaning protocols and working with their suppliers.
24
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The Austin, Texas and National Apartment Associations began educating their members on new guidelines, protocols, and any available resource to equip the industry and meet the needs of properties and real estate professionals. From the start of the COVID-19 health crisis here in the Austin area, the rental housing industry was also at the forefront due to the fact Austin is a city where the majority of households are rental households. Even prior to the crisis, rental housing affordability was a known community-wide challenge. Now, combined with the fact most households were experiencing some level of impact – largely job loss or reduction in income; it became clear that the community would be facing a “crisis within a crisis.” Counties and governments responded with Emergency Orders to halt most evictions and implement regulations that impacted each rental housing provider or owner’s properties and operations. Then came the “Shelter-In-Place” orders and rapidly, apartment communities were at the center of renter’s lives, as they quarantined and stayed home. The Austin Apartment Association immediately formed a specialized COVID-19 task force of members and got to work distributing resources and information to aid in keeping communities and residents safe as well as interpret emergency orders, comply with amenity closure directives, essential worker classifications, and initiate rental payment plan agreements and late
The Residential Perimeter Security Specialists fee waivers. The industry’s priority was clear - now was the time for renters and their landlords to come together. Our voice became a voice for our renters. As we approached the work SALES ★ REPAIR ★ INSTALLATION to be done in advocating for the rental • Automatic Gates • Wood Fencing housing industry; the industry mes• Telephone Entry • Rails sage was that of housing stability for the • Radio Controls • Refurbishing • Video Security • Powerwashing individuals and families in the rental • Ornamental Iron • Replacement Remotes properties we owned and managed. SAME DAY SERVICE AVAILABLE Contrary to support of our industry and www.austinestategate.com renters – and contributing to the mountanthony@austinestategate.com ing confusion of compliance – the City of Austin implemented an ordinance to add a required step in the process of filing an eviction – creating a 60-day notice period prior to filing a Notice to Vacate [more about that in the Industry Update article on page 14. AAA and the Texas Apartment Asso- also released research of the breakdown of $1 of rent (as shown on page 3) – illustrating that by paying rent, renters were able ciation (TAA) came together to respond, and quickly brought to continue to support their fellow renters by allowing flexibilforward the legal implications of the City’s action. ity to be offered to their neighbors who may not be able to pay Shortly thereafter, the puzzle of regulations became more rent during the pandemic. Additionally, their rent supported complex as the City of Kyle and San Marcos both issued similar jobs in the communities in which they lived, supported schools orders – with Dallas to follow soon thereafter. with property taxes, and supported investors such as retirement Economically, the impact of the COVID-19 crisis also became trusts that many individuals rely on. The misconception that apparent. As time went on, more jobs were furloughed or cut rental housing owners enjoy large margins and can continue altogether. Additionally, the potentially crippling economic buroperating in the absence of rent payments, was counteracted. den on the real estate and rental housing industry became more And by late April, the results of the industry coming together and more real. Apartment community owners – many small with renters was evident – nationally 89% of April rent was colbusiness owners – were concerned about their ability to mainlected. (Source: NMHC Rent Tracker Report 4-19-20). tain properties and meet their obligations. As the close of April approached, so did the tension of the Relief was needed on all accounts. The federal and local govexpiring Emergency Orders, from Governor Abbott, the realernment responded and passed the largest relief package in ity of the coming rent cycle, and the “opening up” of Texas that history – the Coronavirus Aid, Relief, and Economic Security inevitably would begin slowly on May 1st. To help households (CARES) Act – a $2 trillion package which offered mortgage relief meet May 1 rent obligations, the Austin Apartment Associaprotections for some apartment owners, as well as eviction moration was proud to partner with the City of Austin Neighbortoriums for nonpayment of rent cases through July 25, 2020. hood Housing and Community Development and the Housing Those deemed “non-essential” industries were also grapAuthority of Austin to launch Relief of Emergency Needs for pling with economic fallout, which included commercial and Tenants (RENT) Program. The program is estimated to help iniresidential construction. Seeing the potential harm to meeting already difficult demand for apartment and rental housing here tially 1,000 Austin households, and is hoped to be scaled to help more households in the coming weeks. in Austin, AAA banded together with fellow real estate and Individuals in the industry are continuing their calls-to-action development trade organizations to voice the need to “Keep to Congress to include additional relief for renters in future stimuAustin Building.” The results were seen in a matter of weeks, lus packages. The Association continues advocating for local jurisand statewide orders were issued to keep the critical highdictions to make clear and consistent their timelines and policies ly-needed construction industry working. – while avoiding extending beyond their Constitutional provisions Mid-April brought the deadliest week in the US for the virus; and it became clear the pandemic would not be coming to – to aid the community in recovering from the pandemic. We may not yet know the full impact of the COVID-19 panan end in the short-term. demic; but it is certain that our focus will remain calling on Attention quickly turned to more solutions for the renter people to work together to create solutions to help our residents households in the community, and the media’s attention turned and to keep a viable housing supply here in the Austin area. A to the story of the “pressure” of the 1st of the month rent paysafe, well maintained home and community is what is needed ment many households likely would be facing. AAA encouraged most now and will continue to be a basic human need tomorconstant and immediate communication with both property row, and every day following. managers and renters. The National Apartment Association
512-296-2671
MAY / JUNE /
25
at Main Event FEBRUARY 27, 2020
PLATINUM SPONSORS
Guardian Construction, Northwest Construction Group, National Exemption Services, Integrity Paving & Coatings, and InterSolutions Staffing
26
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GOLD SPONSORS
ApartmentData.com Camp Construction Chamberlin Roofing and Waterproofing Cotton Commercial Kings III Emergency Communications Mohawk Industries Sundek of Austin Vamvoras, Ltd
Bowl-a-Rama co-chairs Carol Taylor with Centex Construction, Ashley Pruden with ApartmentData.com, Haydee Scott with BG Multifamily and Toni Rackley with Flooring Warehouse
SILVER SPONSORS
AZ Partsmaster FIDUS Construction Services Flooring Warehouse Hines Pool & Spa Impact Floors Interstate Restoration Visual Marketing Zumper
Game of Shame - Impact Floors Sponsored by ApartmentData.com, Camp Construction, Chamberlin Roofing & Waterproofing and Cotton Commercial
Best Bowler: Skylar Traskos Sponsored by Kings III, Mohawk Industries, Sundek of Austin and Vamvoras, Ltd.
3rd Place: Lone Star Carpet Team Sponsored by Guardian Construction, Integrity Paving & Coatings, InterSolutions Staffing, National Exemption Services and Northwest Construction Group
2nd Place: Value Waste Services Team Sponsored by Guardian Construction, Integrity Paving & Coatings, InterSolutions Staffing, National Exemption Services and Northwest Construction Group
1st Place: Infinite Capital Construction Team Sponsored by Guardian Construction, Integrity Paving & Coatings, InterSolutions Staffing, National Exemption Services and Northwest Construction Group
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Best Dressed Team - Roscoe Properties
$500 Grand Prize Winner - Mary Nicole Garza Jones Sponsored by A&A Wrecker and Recovery
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CREATIVITY THROUGH CRISIS: Balancing Work and Family During
COVID-19 By Amber Collins, AAA Director of Marketing and Communications
To fight the spread of Coronavirus (COVID -19), governmental officials have asked that Americans take a hard pill to swallow: Stay away from each other. Whether you are teleworking or an essential worker providing invaluable support to the rental housing industry, “social distancing” continues to be the new norm. Humans are social beings, so this is undoubtedly an incredibly complex and stressful time for all of us, and your welfare is the Austin Apartment Association’s top priority as we navigate the COVID-19 pandemic as a community. As we are discovering a new way of living and working together “apart”, here are some creative ideas – to use yourself or pass along to your apartment residents, clients, associates, etc.– for staying productive, entertained, connected and supported during this time of uncertainty.
STRUCTURE YOUR DAY Instead of having a vague plan, create and stick to a daily schedule for work/life balance. Generate a detailed to-do list for the entire family and put it in a visible place. This will also help in creating boundaries for everyone. Keep bedtime and morning wake up times the same as a regular school/work day. Use kids’ nap/quiet times efficiently, and try to schedule work that requires intense focus or conference calls during these times. You may need to work in the early morning or late evenings while your children are sleeping. Make it work for you. Routine is your rock, particularly when everything else is fluctuating around you.
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GET READY EVERYDAY Take the time to go about your normal morning routine, wake your family up at the same time you normally would, make sure everyone gets dressed for the day, and have breakfast as usual. If you normally go to the gym, supplement your routine with home exercises. Designate some work clothes, even if they’re more comfortable than your typical professional attire. If you prefer to do your hair and makeup, then go for it, even if it’s only for you. Or allow your skin to breathe and use this time to improve its health by applying serums, toners, or masks while you work. DESIGNATE A WORKSPACE Set up designated areas of your house to use as an “office” or “classroom” for you, your spouse and your kids. Sitting down in this space sends a clear signal to your brain that it’s time to focus. If you have limited space, something as simple as setting up at the dining room table, using a folding table and chairs, or making a standing desk at the kitchen counter can make a world of difference in avoiding the lure of working in bed or camping on the couch. COMMUNICATE WITH YOUR PARTNER If you suddenly find yourself working next to your partner all day, it’s important to discuss your work plans in advance - from having to work on a big project and needing to be undisturbed, to deciding if you want to have designated hangout times or prefer to do your own thing. Use headphones to minimize sounds and distractions while on calls, and listen to soft music to help you focus while you work. Make a plan to distribute household chores and child responsibilities. You will both be less likely to lose your cool or
feel frustrated if you know that you and your partner are on the same page.
SUPPORT YOUR KIDS No matter what age, your children may need some extra love, affection, and attention during this time so carve out time throughout the day so the kids know in advance when they have access to mom or dad. Whether it’s preparing lunch together, playing a game or taking a walk, you can point them to the schedule, and say, ‘We are going to hang out in 15 minutes’. Encourage them to entertain themselves, but help them manage their time wisely. Set up appropriate activities to keep them engaged. Look for an array of free online resources for virtual field trips, educational games, lesson plans, etc. Get creative. TAKE SHORT, EFFECTIVE BREAKS Working for long stretches without breaks leads to stress and exhaustion. Getting up from your chair to stretch, take a family stroll, walk the dog, do yoga, or whatever activity you prefer can refresh your mind, replenish your mental resources, and help you become more productive and creative.
BE TRANSPARENT WITH YOUR BOSS If you aren’t seen, it’s important that you create a trail of visibility. Have a conversation with your boss about your daily schedule and if needed, ask for a modified schedule while working from home with your children. Send emails and drafts of your work, schedule time on your boss’s calendar to catch up once a week, and send your boss an end-of-theweek update to ensure all your hard work and accomplishments don’t go unnoticed and that you and your boss are on the same page. You don’t want to be out of sight, out of mind, and that’s why it’s necessary to keep both communication and rapport in motion.
STAY CONNECTED Now is the time to reach out to friends, family and coworkers however you can. Let people know how much you care about them through a phone call, text, video chat, email or social media. Chat with at least one co-worker via video chat per day for a meeting or just to bounce ideas off one another. In addition to any virtual classes your kids are doing, schedule virtual play dates, study sessions or read-alongs. Start and end your day with a virtual coffee chat or happy hour. The point is for everyone to have a bit of face-to-face time with other people so you all feel more connected and less isolated. EXPAND YOUR KNOWLEDGE With the Internet at our fingertips, there are a wealth of personal and professional development books, podcasts, webinars and training videos for you to utilize, including resources made available through the AAA, TAA and NAA. Use this time to sharpen your professional skills, expand on a hobby or learn something entirely new. Whether you’re wanting to grow personally or professionally, taking control of your own learning and development is empowering and exciting, increases your creativity and dedication, and can help you achieve your goals and dreams. HAVE FUN AT WORK With more time spent away from others, finding ways to virtually connect has become an activity in itself. Play a game of show and tell where team members take turns
showing their homes, share a zoomed-in image of something and have everyone guess what the object is, play a game of Zoom I-SPY and take turns choosing something in the grid while everyone else tries to guess what it is, or simply schedule a virtual team lunch or birthday celebration to keep things feeling “normal”. At a time when people need to feel connected more than ever, it’s the experiences we share that help us get through each day.
AFTER WORK, “GO HOME” (EVEN IF YOU ARE HOME) When you’re done with your work day, stop working, clear your desk, turn off your computer and ‘go home’ by changing your clothes and leaving the office for the evening. When each part of your day is being conducted from the “comfort” of your home, it can be easy to think that you don’t need as much time to relax and decompress. But now more than ever, we all need to make sure we’re setting aside time to unplug.
BE SOCIAL Do what you can to bring people into your circle. Start a virtual book club or organize a web-based game night. A number of popular board games are available for free online. Start a recipe exchange. Host a virtual dinner party and get all dolled up. Plan a Netflix Party, that lets multiple viewers sync their video playback and chat about what’s going on. Attend a virtual church service, then organize a discussion to talk about the themes explored. Tune in to the same live-streaming concert or virtual gathering place to feel connected and inspired. BE A GOOD NEIGHBOR
With HOA and apartment amenities and gathering places closed, it’s important to find new and intentional ways to stay connected. Driveway and sidewalk happy hours are the new rage, so BYO folding chairs, beverages, and snacks and enjoy hanging out from afar. Host a drive-by birthday party or holiday celebration and ask neighbors, friends and family to cruise by slowly, tooting their horns, and waving. Get some sidewalk chalk and encourage your kids to get outside and draw a colorful image or some uplifting words for the neighbors to see. Join the scavenger hunt brigade and hang fun art in your windows or hide painted rocks around the hood for friends and neighbors to find as they drive or stroll by.
STAY ACTIVE Exercise is essential for better immune function, managing stress and anxiety, improving energy levels, and better sleep. Start your day with a good stretch or a virtual yoga or fitness class. There are loads of free online options out there for the whole family. Whether you’re a kid, teen or adult, play is also a great way to stay active. Have a dance party, water balloon fight, or even an old-fashioned game of tag. Movement and nature work especially well together to improve mood, so go for a bike ride, take a walk or hit the trails for a hike. While we’ve learned a lot over the past few weeks, we don’t have all the answers – no one does. So, whether you decide to try some or all of these tips, the most important thing is to stay engaged. Social distancing should help keep us safe, but we need social connection to keep us sane. A s you continue doing vital work for the rental housing industry during this critical time – remember to stay connected – and stay safe!
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CUTTING BACK ON TRAINING COULD BE COSTING YOU VICKI SHARP, NALP, CAPS, CDPM THE SHARP SOLUTION
As we discussed in the last edition, PART ONE: For the BOSS, a lot of companies are always looking for ways to cut back on expenses, even in a strong market. The previous article was written for the supervisor and/or company owner. This one is written especially for the employee, or the person who may be looking for a new or better job.
PART TWO: FOR THE EMPLOYEE! Even in today’s “hot” market, with national unemployment rates at the lowest level in decades, finding a job isn’t always easy, and finding a career is even harder. Companies are still looking for the best available team members. With property sales, and changes in management companies, there is still some uncertainty in our world. Further, with the automated on-line hiring procedures used almost universally today, HR directors and recruiters will be sorting through many resumes, looking for the most qualified person to fill the position. You need to be that “Most Qualified Applicant”, so here are a few things to consider. First, you need to make a decision. WHICH DO YOU WANT, A JOB OR A CAREER? What’s the difference, you may ask. A job is filler material, something you do to pay your bills until you find that “thing” you really want to do. A job is something you have to do, while a career is something you love to do. Sometimes a job can become a career, but that only happens when you allow yourself to be open to learning new skills, and constantly look for opportunities to take on more personal responsibility for your success. That’s what happened to me. After serving my initial enlistment in the Army, I needed a “job”, and found one totally by accident. I needed a place to live, and ended up getting a job leasing apartments. (More on how that happened later.) When I got the job offer, I even thought to myself, “Well, this is something I can do until I find something I like better”. But, I was
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lucky! I had a boss who saw something in me, and wasn’t afraid to show me the ropes. At first, I thought she was just unloading her work on me so she wouldn’t have to do it. Soon, I found out that she was preparing me for a career. Within a couple of months, when another community management position opened up in the company, she recommended me, and I was on my way up my career ladder. Today, 45 years later, I’m still working in the field I love, and can’t even imagine doing anything else. So, now that you’ve decided you are looking for a career, and not just a job, let’s talk about making you successful in that venture. APPEARANCE MATTERS…. A LOT! There is an old saying about how to dress for work. Dress for the job you want, not the job you have. Looking to move up in the company? Then you need to look like someone who can easily step into that next position. Required to wear a uniform to work? Make sure it is always clean, well pressed, and worn exactly to the standards set. If you can wear what you want to work, take a look at how others dress who are in the position you. For example, if the boss wears a suit to work, you won’t get their attention by showing up in jeans and a golf shirt. If you are going for a job interview, do some research and check out the company culture. If the photos on their websites show people in suits or business attire, this would be the most appropriate dress for your visit to their offices. I actually had a lady show up for a job interview in jeans, a T-shirt and house slippers! I didn’t even look at her qualifications. I didn’t care how good she may have been, she wasn’t appropriately attired for a job interview. There is another adage I’ve found to be true as well. The day of the job interview, the applicant will look their absolute best. If that’s not good enough, don’t hire them, because it’s never going to get any better! Most employers pay close attention to your attire when considering your application. After all, it’s not just the quality of the job you do; it’s also the appearance you present to the customer. Employers are hiring the whole package, so appearance does matter. Multiple body piercings and tattoos may allow you to express your individuality, but they can be very distracting to others, and
could keep you from getting the job you want. Flashy clothing and make up, along with heavy perfume can have the same effect. When trying to impress the hiring authority, less is best. Light makeup for ladies, clean shaven for guys, and conservative jewelry and clothing is always appropriate at the work place. One more area where appearance counts is in the presentation of your resume and cover letter. No typos allowed! Check the grammar as well and sentence structure as well. Do not simply rely on the spell check function of the computer. Using the wrong word or poor sentence structure can be disastrous. Here is an example of what NOT to do: I worked at ABC Corporation for too years. I left the company because their were two many people in the job and they had to cut somebody. Try it this way: I was employed with ABC Corporation for two years. Unfortunately, my position was eliminated due to budget cutbacks in my department. EXPERIENCE MATTERS Do your research and make sure your resume identifies the strengths you bring to the advertised position. For example, you might be terrific at marketing, and also great with the financial aspects of the business. If the company is looking for an asset manager, the financial strength is probably more important, so don’t start your resume with your marketing experience. Tailor your resume and your presentation to the job skills they desire. Then list the extra cool stuff about your abilities behind those required skills. TRAINING MATTERS Employers today are looking for what you will bring to the company. They want someone who can come to work, ready to contribute, and not have to worry about what they have to do to get you ready for the job. This means you may need to get additional training, and it may be at your own expense, but it will be money well spent. I have heard employees say things like this: “If the company won’t pay for me to attend that training seminar, then I’m just not going! They need to train me if they want me to do the job”. What a terrible attitude, especially in today’s job market. Let’s look at this in a different way. If you want to be a doctor or a nurse, who is going to pay for your medical school or nursing school? You do. If you want to be a lawyer, who is going to pay for law school? You do. If you want to be an IT professional, who pays for the technical school to learn how to do that? You do. In fact, a lot of service oriented folks pay for their own education to get where they want to be. The person who cuts your hair had to go to cosmetology school, and chances are they paid for it themselves. Why should it be different for our industry? Instead, think of any opportunity to get more
training as a chance to improve yourself for bigger and better opportunities ahead. Becoming well prepared for the job you want will have a positive impact on potential employers. After all, if you won’t invest in your future, who will? Your local Apartment Association has a multitude of classes and seminars that will make you better in your job. These classes are usually very affordable, especially for the level of training they offer. The association also offers various professional designation programs, such as the NALP (National Apartment Leasing Professional), and CAM (Certified Apartment Manager). If your company does not pay for or reimburse you for training, you should attend anyway. This shows your current or future supervisors that you believe in yourself, and bring valuable tools to the job when they hire you. Having these designations can result in higher pay and better jobs in the future. SO, WHAT’S THE BOTTOM LINE? Polish your shoes, polish your resume, and polish up your skills through training. These tools will help you impress your current employer, or stand out in a field of applicants, and will help you get the career you want. Oh yeah… I promised to tell you how I got the leasing job. I did it by taking the initiative to handle a problem. I was standing in the leasing office, waiting my turn to talk to a very busy manager. She was working by herself, had several people in the office ahead of me, and her telephone was ringing and ringing. This was back in the days before there were automatic answering machines, call waiting, call forwarding, or other such luxuries. Back in 1975, all you got was a telephone that rang and rang, until someone finally gave up, or someone finally answered it! The second time her phone started ringing, I answered it. I was polite to the caller, told them the manager was busy, and took a message. When it was my turn to talk to the manager, I gave her the message. While she was walking with me to see the apartment, she asked where I worked, and I told her I had just gotten out of the Army and would be looking for a job as soon as I found a place to live. She told me I didn’t need to do that because she needed an assistant manager. Because I took the initiative to answer the phone and take a message, she hired me on the spot. While my initiative got me in this industry, putting everything I’ve written above into play is what kept me here and got my career underway. If you’ve found that you love this industry, and have found your passion, try using some of the tips I’ve written in this article. I’m sure you will move along your career path successfully.
ABOUT THE AUTHOR Vicki Sharp, NALP, CAPS, CDPM, has filled a multitude of positions during her career in property management. From Leasing Agent, to Community Manager, then from Regional Manager to Vice President, Vicki now owns her own property management training and consulting firm, The Sharp Solution. Because she has worked “on the front lines” of the industry, her seminars and consulting work has a practicality of someone who has truly been there before. Her seminars have been referred to as entertraining, as she presents real life scenarios in a humorous and thought provoking manner. Contact Vicki to schedule training sessions, speak at your company event, or work with your teams for project success. You can reach Vicki by email at vicki.sharp@ thesharpsolution.net, or contact her by phone at 512.550.2021.
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TAA & NAA HIGHLIGHTS
Delegates from around Texas met in Houston late February for the Board of Directors meeting, including Austin Apartment Association Delegates. In March, Austin Delegates gathered in Washington D.C. for the Advocate Conference on Capitol Hill just before everything was shut down due to the COVID-19 crisis.
TEXAS APARTMENT ASSOCIATION WINTER BOARD OF DIRECTORS MEETING – FEBRUARY 2020
Here are some of the highlights: • The Board of Directors approved a revamped TAA student housing lease contract • Legislative Committee discussed a rewrite of swimming pool rules expected to be adopted by the Texas Department of State Health Services next fall and requested member input in reviewing drafted rules • TAA’s Legislative Committee formed a working group on insurance issues • Recognized the five Olin Steele Lifetime Achievement Award finalists including Austin’s own Deborah Vogel, CAS, Arbor Contract Carpet! • TAA announced the 10 nominees for the first-ever Supplier Partner Company of the Year Award – including 5 Austin members! • AAA Plumbing • Bug Express Pest Control • Camp Construction • Century Air Conditioning
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• eConservice, LLC • Flooring Warehouse • HD Supply • JLS Towing • Rasa Floors • The Liberty Group
Special Note: the TAA Bylaws and Standing Rules are being modified to accommodate a shift from a fiscal to a calendar year.
NEW DATE! TAA EDUCATION CONFERENCE & LONE STAR EXPO SEPTEMBER 2-4, 2020
Fort Worth, TX
Upcoming Texas Apartment Association meetings: TAA Summer Board Meeting
NATIONAL APARTMENT ASSOCIATION ADVOCATE CONFERENCE – MARCH 2020
The National Apartment Association (NAA) is the leading voice for the apartment housing industry in Washington D.C., and is the respected source of information and industry perspective to members of Congress and regulatory agencies. A key element of the NAA’s advocacy goals is the annual Advocate conference held in Washington D.C. during the month of March. At this event, apartment industry professionals from all over the country travel to the nation’s Capital to talk with all 535 members of Congress and educate them on key issues facing the industry. NAA’s Advocate 2020 was held on March 11, and AAA members attending the conference held separate meetings in the offices of the Congress members representing the Austin area which includes: Congressmen Michael McCaul (District 10), Judge John Carter (District 31), Chip Roy (District 21), Roger Williams (District 25), Lloyd Doggett (District 35) and Bill Flores (District 17). Meetings were also held with lead staff members in the offices of Senators John Cornyn and Ted Cruz. This year’s gathering in Washington D.C. came not only at a critical time for the apartment industry, but also at a unique time in the nation’s response to the coronavirus pandemic. When AAA members left Capitol Hill late in the afternoon on March 11 little did they know they would be among the last members of the public allowed into the Capitol office buildings. The Capitol building and Congress offices were closed to the public the following morning. The issues presented to our mem-
bers of Congress before the shutdown touched on eliminating barriers to affordable housing development such as growing permit fees, multifamily zoning restrictions and lengthy environmental and site plan reviews. The apartment industry was also able to share their thoughts on legislation impacting the ability of rental property owners to regain possession of their units, and express support for the Family Stability Opportunity Vouchers Act of 2019. The Act would create an additional 500,000 housing vouchers specifically designed for low-income families with young children to expand their access to neighborhoods of opportunity with high-performing schools, strong job prospects, and other resources. To see the NAA policy positions on a wide range of apartment issues visit NAA.org and navigate to the Advocacy tab.
AAA Past Presidents (L-R) Kim McGregor, Renee Zahn and Theresa Ebner share their thoughts with Evan Bender, Legislative Aide for Congressman John Carter.
AAA Member Stephanie Nayor, Flooring Warehouse (L) and AAA 201920 President Sandy Eckhardt share a moment at the Lincoln Memorial.
AAA President-Elect Stephani Park, AAA EVP Emily Blair and AAA Past President Renee Zahn talk policy in the office of Congressman Chip Roy.
The NAA Legislative Committee meeting is a critical component of the Advocate Conference.
Nighttime view of the Martin Luther King Memorial.
Congressman Lloyd Doggett (at right) shares his thoughts during a meeting with association members from both Austin and San Antonio.
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PAC Investor Reception Held at the Copeland Apartment Community
C
ontributions to Apartment PAC Austin make a difference by helping to keep keep the apartment industry free from unnecessary taxes, regulations and fees. Each year we invite all AAA members to help keep our industry strong by making an investment in the PAC, and to show our appreciation host an Annual PAC Investor Reception. In early March the Annual PAC Reception was held at the beautiful community center at the Copeland Apartment Community managed by Roscoe Properties. The event’s special guest Speaker was to be City of Austin Mayor Steve Adler.
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However, soon after the event started his office called AAA staff to express the Mayor’s regret that an emergency meeting with city and county leaders and public health officials would prevent him from attending. Two days later the Mayor announced the cancelation of the SXSW Festival. The Mayor has expressed his desire to visit with PAC contributors at a rescheduled event in the near future. Watch for details about that opportunity in the months to come, and then join us in the effort to keep our industry strong.
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LAW IN ORDER
The Warren Report THE EVER-EVOLVING LAW OF COVID-19
William S. Warren, Warren Law Firm
By William S. Warren, Warren Law Firm
Q
Just when you think you have gotten the answer you were seeking, something significant may change.
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uestions concerning COVID-19, the coronavirus, abound. Just when you think you have gotten the answer you were seeking, something significant may change. There may be a new law on the federal or state level. There may be a new local ordinance passed by a county or city. A court may issue an order interpreting or affecting those statutes and ordinances which seem to always be changing. This Warren Report: Law In Order will address some questions which many of you have had while navigating this environment. There is an important caveat to this article: due to publication timing, you will likely be reading this article during or after the week of May 4, 2020. By that time, new laws may be on the books and old deadlines may have been extended. The legal landscape of COVID-19 is ever-evolving. Yet the answers given below should prove helpful, and you can refer to the links in the article below to stay up to date. They will also illustrate the constant fluidity and unpredictability of the COVID-19 situation. Whatever the differences which develop over time, we must keep moving forward to conquer the fallout from the coronavirus. What does COVID-19 stand for? It is an acronym; and in its full form, COVID-19 stands for coronavirus
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disease of 2019. At this point in time, however, the name has become largely irrelevant. Since a day does not pass when COVID19 is not dominating the news, the acronym is convenient. What really matters, however, is what we are doing as citizens of our respective cities, counties, states and countries about COVID-19. One of the main things we have been doing is trying to stop its seemingly uncontrollable advance. We have done this largely through sheltering in place. To some extent, such conduct has been voluntary. For those disinterested in volunteering, however, we have federal, state and local laws and ordinances mandating what we shall do or not do. What is clear is that sheltering in place has significant financial consequences. When we cannot freely leave our residence, many of us are unable to work. When we don’t work, we don’t earn. When we don’t earn, we cannot pay. When rent does not get paid, the traditional remedy has been eviction. Yet eviction can often result, even if only temporarily, in some degree of displacement. As the coronavirus spreads, un-housed people are among the most vulnerable to infection. The government, on nearly every level, has stepped
in to minimize even temporary homelessness. It cannot be avoided altogether; and it is a problem which runs far deeper than COVID-19. But it can and should be minimized. It is hard to argue the benefit of predictable shelter. As ordinances have sprung up, mostly on local levels, they have provided insight. The City of Kyle, Texas passed its anti-eviction ordinance on April 7, 2020. It is like those passed elsewhere, notably Austin. The Kyle anti-eviction ordinance states that “… [in] order to comply with Stay-at-Home orders of the County and City, Governor Abbott’s Executive Order, and federal guidance; and to avoid person-to-person contact, individuals may be unable to work, which will impact the tenant’s ability to pay rent, fees, or other charges associated with the tenant’s lease….” https://www. cityofkyle.com/communications/ anti-eviction-ordinance That is a logical explanation. Yet the City of Kyle, like so many others, goes further and states: “… [if] the tenant is unable to timely pay rent, fees, or other charges related to residential property because of COVID-19 and therefore loses their ability to maintain housing, such a result is likely to increase person-to-person contact that spreads COVID-19 ….” Local government officials, therefore, have attempted to take it upon themselves to enable financially strapped individuals to maintain
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housing for a longer period of time. A key focus has been on eviction. As this article is being written, one of the newest ways local governments try to do this is by compelling a lengthy period of time to pass before a notice to vacate may be given. Before an eviction can be filed, a notice to vacate must be given and the requisite period of time to vacate must pass. This is typically done in one of two ways. FIRST will be a preliminary requirement. A landlord contemplating action to either get the rent paid or evict for non-payment of rent must serve the tenant who has a rent delinquency with a notice of proposed eviction. On more than one occasion we have seen a locality tell a landlord that an “impacted tenant” must be given a minimum 60-day period before notice to vacate can be given. During this period of delay, there is an optimistic expectation that the impacted tenant and his or her landlord will discuss the economic reality being faced and develop and agree upon a payment plan which will hopefully be adhered to and resolve the non-payment. Resolution of the issue, however, requires payment. If it cannot be made, it is likely tenant displacement will eventually result. SECOND, Following the now more frequent 60 day delay covered by the notice of proposed eviction, an additional 30 days is sometimes added. This extra time afforded to the tenant will cover the period encompassed by the notice to vacate. 3-day and 1-day notices to vacate have disappeared, despite provisions for them being present in leases and existing statutes. Some localities combine the 30-day and 60-day periods into one 90-day period. Either way, there is delay. Significant delay. The delay does not eliminate the obligation of the resident to pay the rent stated in the lease agreement. That obligation remains. But the money provided
for in the contract will often not be paid according to the schedule originally agreed to. That in turn will impact the property owner. Obligations for mortgage payments, property taxes, insurance and property management, just to name a few, are recurring, and timely payment is expected. This is where the real financial dilemma begins. Delay and adverse consequences, however, are not unique to multifamily residential rental housing. They affect, for example, commercial tenancies as well. How many of the restaurants you used to frequent are unlikely to reopen for dine-in before at least the end of the summer? Or how many of the retail stores you shopped at will close and be unable to reopen? The lack of customers equates to a lack of sales. This
results in a shortage in money to pay rent and other expenses, eventually followed by business closure of some type. The foregoing thoughts are intended to provide background. Most of it, however, you already know. Let us focus, therefore, upon some questions which frequently arise in the multi-family arena. Due to the publication deadline for this Warren Report, many of the dates you are about to read may either have expired or been extended by the time you are reading this. For that reason, you will occasionally find links below to websites where the most current information about the laws and orders and their present time frames may be found. Time waits for no one, especially now.
The Texas Supreme Court, in its Ninth Emergency Order Regarding the COVID-19 State of Disaster, issued April 6, 2020, directly addresses residential evictions and writs of possession. That order provides that in any action for eviction to recover possession of residential property as we know it, no trial, hearing or other proceeding may be conducted until, at the earliest, May 1, 2020. In addition, says the Supreme Court, neither the posting nor the execution of any writ of possession may occur until, at the earliest, May 8, 2020. In connection with new filings of eviction suits, they will be accepted but citation will neither be issued nor served until May 1, 2020, at the earliest. https:// www.txcourts.gov/media/coronavirus-covid-19-emergency-orders/ Each of the foregoing dates are likely already in your rearview mirror. Likely, the dates have been extended; but my crystal ball does not enable me to see how far out the new deadlines are. Fortunately, the Texas Supreme Court enacted a procedure for expediting eviction suits based upon an imminent threat of (i) physical harm to the property owner, the property owner’s employees, or other tenants, or (ii) criminal activity. These may, with court approval, proceed along a different schedule. But that will be the exception, not the rule. The Supreme Court’s Ninth Emergency Order, entered April 6, 2020, is scheduled to expire April 30, 2020. You may update the current status via the preceding link. It is interesting to note why the Texas Supreme Court decided to get involved with cases which must originate in a justice court and can be appealed de novo. Prior to involvement by our state’s highest court, local procedures for eviction cases appeared to be all over the place. In Texas, there are 254 counties; and each county has anywhere from 1 to 8 local justices of the peace and JP Courts. The result
Obligations for mortgage payments, property taxes, insurance and property management, just to name a few, are recurring, and timely payment is expected. This is where the real financial dilemma begins.
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2020 and all jury trials until at least June 15, 2020. By then, the impact of the current significantly reduced access to the courts, resulting in an unavoidable and extensive backlog, will begin to be felt. Delay is inevitable. COVID-19 has significantly changed things. No person and no business, whether deemed essential or not, can be unaffected. A phrase you have undoubtedly seen elsewhere, “we are all in this together,” says it all. With that in mind, many ideas are emerging, and several plans are coming together. We are amid a legal evolution. One such plan is the CARES Act, the acronym for the Coronavirus Aid, Relief and Economic Security Act. That federal statute provided for government checks, as an economic stim-
ulus, to be sent to various individuals throughout the country. The CARES Act also provided for a lot of funding related to housing. It provides, for example, more than $12 billion in funding for HUD programs. This includes $4 billion for Emergency Solutions Grants for homelessness assistance. It also provides $1.25 billion for the Housing Choice Voucher program. In addition, the CARES Act authorizes $1 billion for project-based rental assistance. This is just a sample of the provisions and protections contained in the 350-page CARES Act. https://www. congress.gov/116/bills/hr748/BILLS116hr748enr.pdf In addition to authorizing those dollar amounts which are quite sizable, the CARES Act institutes a moratorium on
foreclosures and evictions. To help avoid foreclosure, a rental housing owner with a federally backed mortgage may request loan forbearance for up to 30 days, which can be extended by another 60 days at the request of the borrower. To get such forbearance, however, the rental housing owner must agree not to evict tenants or charge late fees to their tenants. The CARES Act also institutes a moratorium on filings for evictions for renters in housing covered by a federally backed mortgage for 120 days after enactment of the CARES Act. This federal statute does not apply to everyone. The temporary moratorium on evictions is typically applicable to residents of federally subsidized apartments, including those supported by HUD, USDA, or Treasury (Low Income Housing Tax Credit developments). The bill also institutes a moratorium on filings for evictions for renters in homes covered by federally backed mortgages for 120 days after enactment of the CARES Act. The CARES Act’s eviction protection provisions cover approximately 12.3 million occupied federally financed rental units, or slightly more than one in four total rental units in the United States. According to the 2018 American Community Survey, roughly 43.8 million rental units in the U.S. are occupied, of which 22.3 million are in single family properties (i.e., one to four units) and 19.5 million are in multifamily properties (i.e., five or more units). This means that 28.1% of the nationwide stock of 43.8 million rental units are federally financed and therefore covered by the CARES Act. This eviction moratorium created by the CARES Act states, in section 4024(b), that landlords of “covered dwellings” may neither initiate eviction proceedings nor charge fees, penalties or other charges against the tenant for the nonpayment of rent during a 120-day period which began March 27, 2020 and will end July 25, 2020. Section 4024(c) of the CARES Act also provides that notices to vacate
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What happens upon expiration of the time period (now typically 60 days) created by the notice of proposed eviction? A notice to vacate can then be given. And after that time period (now typically 30 days) expires? An eviction suit can be filed.
is more than 820 justice courts, each with unique geographic jurisdiction, each able to establish and follow their own procedures. Texas Supreme Court Chief Justice Nathan L. Hecht, and his fellow justices, determined that was not in the best interest of any citizen of this state so, the highest court in the state, which can call the procedural shots for the other courts, created consistency to avoid chaos. Neither state law nor local city and county ordinances, as discussed above, could determine the procedures to be followed once a case got to court. But those laws and ordinances could influence the length of time it would take to get to court. Hence, the notice of proposed eviction procedure was born. The City of Austin ordinance providing for such notice is scheduled to expire August 25, 2020. The comparable ordinance enacted by the City of Kyle is scheduled to expire May 18, 2020. The City of San Marcus ordinance, another designed to delay the time period between rent default and notice to vacate, is scheduled to expire July 6, 2020. These are not the only local ordinances attempting to slow eviction filings. When you read this, there could be several others. This is the ever-evolving law of COVID-19. What happens upon expiration of the time period (now typically 60 days) created by the notice of proposed eviction? A notice to vacate can then be given. And after that time period (now typically 30 days) expires? An eviction suit can be filed. As the discussion of the Texas Supreme Court’s emergency order shows, the filing of the case itself does not immediately put you on the track to judicial resolution. There still must be issuance and service of citation, along with the trial. The judgment from that justice court trial, moreover, may be appealed to the respective county courts at law. There are restrictions governing those courts as well. In Travis County, for example, the County Court at Law and other courts are suspending in person hearings until at least late May,
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may not be issued until expiration of the moratorium on July 25, 2020. The notice to vacate, certainly in many situations and arguably in all, is to be for a period of at least 30 days. Given all the statutory and governmental interventions, one thing becomes clear. Landlords and their tenants must work together. You cannot get something from somebody, especially money, which they do not have. The alternative, then, is cooperation. Without flexibility, cooperation and candor, the COVID-19 fallout could be staggering. The Texas Apartment Association has developed forms which landlords can use in documenting agreements outside of the lease. A payment plan agreement, for example, through
which less than the entire amount owed is paid in periodic installments, is an immensely useful tool. The lease is a written contract meant to be enforced. Both landlords and tenants alike who are willing to modify its terms, however, may readily benefit from such “outside the box” thinking. Many landlords have shown a willingness to voluntarily waive late fees. This cooperative action, even if the waiver is temporary or in limited amounts, will assuredly help residents whose income has been adversely affected. On the multifamily level, some amenities have been closed to comply with ordinances designed to flatten the curve of the COVID-19 pandemic. Requirements for six-foot distancing
and prohibitions against any gatherings outside one’s residence mandate that. To afford further protection, maintenance requests must be handled differently for a while, prioritizing only those which are essential and need to be addressed immediately. We are all in this together. And we will all pull through this together. When remains unknown. At what cost is also presently indeterminable. But recovery will inevitably occur. If there was ever a time for optimism it is now. Pessimism and fear will make us ineffective. Compassion and understanding, however, are two attributes which must be present in those whom we consider most extraordinary. And those, my friends, are you.
The year 2020 marks BILL WARREN’s 40th year of practicing law. His law practice focuses on a variety of issues and cases, the majority of which address the concerns of those active in the multi-family industry. He founded and manages Warren Law Firm. In addition, he serves as Of Counsel for the Texas Apartment Association and as Legal Counsel of the Austin Apartment Association. Bill is also a Credentialed Mediator in Texas. He writes and speaks regularly, and as author of Law In Order: The Warren Report he has had over 120 articles published. His topics cover all nature of issues pertaining to rental housing, from onsite to the boardroom to the courtroom. Bill has been Board Certified in Civil Trial Law by the Texas Board of Legal Specialization for 30 years, and is also a Fellow of the College of the State Bar of Texas. He can be reached at Warren Law Firm, 1011 Westlake Drive, Austin, Texas 78746, (512) 347-8777, or through his firm’s website at www.WLFtexas.com.
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