ABODE June 2024

Buckle Up!

The bumpy ride continues …

CONTENTS

June 2024

ON THE COVER

34

Buckle Up! – We may have hit the ground running in 2024, but the terrain is anything but smoot. See our June Market Report starting on Page 36 for all the details. And don’t miss photos from TopGolf and the NEXT Spring Social.

Cover images © marekuliasz, Volodymyr Kyrylyuk and Elena Pimukova | iStock by Getty Images

FEATURES & PHOTOS

26 On the Scene – Photos from the Brazoria State of the Submarket.

28 On the Scene – Photos from the HAA PAC Steering Committee.

30 On the Scene – Photos from the HAA PAC TopGolf Fundraiser.

36 Buckle Up! – The bumpy ride continues.

44 Build to Rent – The PSC sponsored education event took a closer look at this hot topic.

48 Insuring Texas Multifamily Communities – Tips to mitigate risks and stand better protected.

52 On the Scene – Photos from the Texas Apartment Association One Conference & Expo.

56 On the Scene – Photos from the NEXT Space City Social.

68 On Site with ABODE – Take a closer look at three of HAA’s Honor Award-winning communities.

COLUMNS & MONTHLY UPDATES

7 President’s Corner – Here comes the sun.

8 Patron of the Month – Meet and support Camp Facility Services.

9 Legislative Update – News from HAA’s Government Affairs.

11 It’s The Law – Using the Sue Weaver Act to limit liability.

14 Resident Relations – A resident dispute is settled by the committee.

20 Calendar – HAA’s schedule of events for the coming months.

58 Welcome Mat – A list of HAA’s newest members.

60 Go-Getters – Learn how to become a Go-Getter and see what the Membership Committee is up to.

62 The Ambassador ONE Society –Meet the HAA Supplier Network.

66 Portfolio Changes and

In the News – Property updates and industry news clips from our members.

70 Index of Advertisers – See the supplier members who support this publication.

71 MarketLine – The latest area market numbers.

72 Back Page – News from around the community.

We welcome your comments. Email us at comm@haaonline.org

OFFICERS AND ASSOCIATION LEADERSHIP

SHELLEY WATSON President-Elect

GINA ERWIN President

RYAN TERRELL Secretary/Treasurer

HOWARD BOOKSTAFF General Counsel

MONICA GRACIA

Vice President at Large –West

DEBORAH HOLCOMBE

Vice President at Large –South

CORRI SMITH

Vice President at Large –North

RICHARD WALL

Vice President at Large –East

PRODUCT SERVICE COUNCIL OFFICERS

JOSEPH RODRIGUEZ, CAS President Greenlogic

DEBORAH DEROUEN, CAS Vice President ClutchCity Consulting

CASEY WATTS MORGAN CEO

BOARD OF DIRECTORS

Mack Armstrong

Julie Batche

Kristen Becker

John Boriack

Kyle Brown

Tina Cavaco

Terri Clifton

Michelle Croasmun

Deborah DeRouen

Derek DeVries

Scott Douglas

Gina Erwin

Tamara Foster

Melissa Friend

Diane Gilbert

Monica Gracia

Stephanie Graves

Elizabeth Castro Gray

Manu Gupta

Clay Hicks

Deborah Holcombe

Karen Hefner

Nathan Kelley

Debbie Kelm

Crystal Jackson

Nathan Kelley

Jacob Kunath

Valerie Lacy

Barby Lake

David Lindley

Betsy Marshall

Joe Melton

Kristin McLaughlin

Candis Mohr

Katy Myrick

David Nargang

Carlos Neto

Jenifer Paneral

Angelee Kumar Parikh

Mark Park

Velissa Parmer

Michelle Pawelek

Kelly Robinson

Christy Rodriguez

Joseph Rodriguez

Ingrid Shultz

Nikki Sekunda

Corri Smith

Penny Sprang

Kelley Suess

Debbie Sulzer

Blaise Spitaleri

Ryan Terrell

Starla Turnbo

Richard Wall

BLAISE SPITALERI, CAS Secretary Gemstar Construction Development

Shelley Watson

Richard Whatcott

Quintina Willis Tracie Yoder

DIRECTORS EMERITUS

Josh Allen

Ken Bohan

Gary Blumberg

Kathy Clem

Jack Dinerstein

Jenard Gross

Darlene Guidry

Alison Hall

David Hargrove

Larry Hill

Stacy Hunt

Hap Hunnicutt

David Jones

Mel Kieke

Mike Koch

Dick LaMarche

Cesar Lima

Tim Myers

P David Onanian

Jackie Rhone

John Ridgway

Kim Small

Eileen Subinsky

Steve Sweet

Kirk Tate

Suan Tinsley

H J Tollett, Jr.

Pat Tollett

Vic Vacek, Jr.

Beth Van Winkle

Jerry Winograd

ADVISORY

DIRECTORS

Susan Alvarado

Jeff Blevins

Michelle Bridges

Roger Camp

Israel Garza

Billy Griffin

Stacy Lastovica

Mary Lawler

Laura Lestus

Cari Luetge

Bruce McClenny

Monica Morales

Ruth Reyes

Jake Slosburg

Lindsay Torres-Smith

Tony Whitaker

STEPHANIE GRAVES

Immediate Past President

GENERAL COUNSEL

EMERITUS

Joe Bax

HONORARY

LIFE MEMBERS

Claude Arnold

Kenn Brown

Tina Cavaco

Terri Clifton

Kevin Fenn

Diane Gilbert

Anita Harrison

Dwayne Henson

Mike Koch

Merry Mount

Monette Reynolds

Sherry Stevenson

Kirk Tate

Suan Tinsley

Sonny Unverzagt

Del Walmsley

Nancé Wells

H.P. Paul Young

Jeanne Marie

Zublin Dicks

PATRON MEMBERS

1968

Century A/C Supply

1978

Houston Planned Energy Systems

1982

Cotton Commercial

USA Inc.

1984

AAA Plumbers

1985

Gemstar Construction

Development

1986

Craven Carpet

1987

Dixie Carpet Installations

1993

Hire Priority Staffing & Executive Search

1994

Camp Construction Services

1997

Apartments.com

1999

FSI Construction Inc.

2006 Lowe’s Pro Supply

NIKKI SEKUNDA, CAS Treasurer The Liberty Group

CANDIS MOHR, CAS Immediate Past President AAA Plumbers

PRODUCT SERVICE COUNCIL MEMBERS

Susan Alvarado, CAS Century A/C Supply

Chris Bell, CAS, Greenlogic

Marivel Bownds, CAS, Valet Living

Tammy Broadway, CAS American Fire Systems

Shaun Callaway, CAS, Earthworks

Neal Conant, CAS, Gemstar Construction Development

Sean Cunningham, CAS, Flooring Warehouse

Deborah Derouen, CAS ClutchCity Consulting

Derek DeVries, CAS, Epic Multifamily Construction

Marcelino “Tito" Estrada, CAS First Onsite

Giovanna Gone, CAS, Century A/C Supply

Dan James, CAS, Redevelopment Services

Amanda Kelly, CAS, Brandt Electrical A/C & Heating Services

Debra Knight, CAS, Comm-Fit

Stephanie Krop, CAS Emeritus, Poolsure

Liz Levins, CAS Emeritus, Gemstar Construction Development

Jim Martensen, CAS Epic Multifamily Construction

Candis Mohr, CAS, AAA Plumbers

Tracey Moore, CAS, Flooring Warehouse

Karen Nelsen, CAS ALN Apartment Data

Arely Pena, CAS The Liberty Group

Nikki Sekunda, CAS, The Liberty Group

Joseph Rodriguez, CAS, Greenlogic

Blaise Spitaleri, CAS, Gemstar Construction Development

Amber Whitaker, CAS FSI Construction

ABODE

JUNE 2024 I VOLUME 47, ISSUE 6

Chief Executive Officer and Publisher

CASEY WATTS MORGAN, MPP cmorgan@haaonline.org

EDITORIAL AND DESIGN STAFF

Director of Publications and Design DEBORAH NIX dnix@haaonline.org

Communications Manager MADISON O’BAR mobar@haaonline.org

ADVERTISING

Vice President of Membership and Marketing AMANDA SHERBONDY, CAE asherbondy@haaonline.org

CONTRIBUTING STAFF

Chief Operating Officer SUSAN HINKLEY, CAE shinkley@haaonline.org

Vice President of Government Affairs BRADLEY PEPPER bpepper@haaonline.org

Chief Financial Officer TREY WIMBERLY, CPA twimberly@haaonline.org

Vice President of Education LAUREN RAGIN, CMP lragin@haaonline.org

Director of Resident Relations MATILDE LUNA mluna@haaonline.org

Director of Rental Credit Reporting TINA DEFIORE tdefiore@haaonline.org

Education Manager CINDY DE LA RIVA cdelariva@haaonline.org

Director of IT WILL ALFARO walfaro@haaonline.org

PRINTER TGI PRINTED www.tgiprinted.com

HOUSTON APARTMENT ASSOCIATION COMMITTEES

COMMITTEE CHAIR

Executive Gina Erwin

Nominating

Stephanie Graves

Fair Housing Howard Bookstaff

Ethics Michelle Pawelek

Finance Gary Blumberg

Past Presidents Council John Boriack

Legislative Shelley Watson

Political Action Stacy Hunt

Golf Starla Turnbo

Century Club Nikki Sekunda

Education Advisory Lindsay Torres-Smith

Michelle Bridges

Independent Rental

Owners Connection Elizabeth Castro-Gray

Leadership Development Kyle Brown

Community Outreach Joe Melton

Product Service Council

Joey Rodriguez

Expo Exhibitor Deborah DeRouen

Membership Valerie Lacy

Debra Knight

Ambassador ONE Society Tito Estrada

Karen Nelsen

Resident Relations A Jessica Wheeler

Resident Relations B Karah Carrillo

Resident Relations Appeals Darlene Guidry

HAF Fundraiser Neal Conant

Ryan Weis

NEXT Monica Morales

Susan Alvarado

Property Awards Diane Gilbert

Beth Levine

STAFF ADVISOR

Casey Morgan

Casey Morgan

Casey Morgan

Casey Morgan

Casey Morgan

Casey Morgan

Bradley Pepper

Bradley Pepper

Bradley Pepper

Bradley Pepper

Lauren Ragin

Lauren Ragin

Susan Hinkley

Susan Hinkley

Susan Hinkley

Amanda Sherbondy

Amanda Sherbondy

Amanda Sherbondy

Matti Luna

Matti Luna

Matti Luna

Lauren Ragin

Lauren Ragin

Lauren Ragin

HOUSTON APARTMENT ASSOCIATION MISSION AND VISION: HAA is the leading advocate, resource and community partner for quality rental housing providers in the Houston and surrounding area. HAA develops leadership in the multifamily industry by engaging broadly diverse membership, embracing effective technology and advocating for a geographically inclusive association. ABODE IS THE OFFICIAL PUBLICATION OF THE HOUSTON APARTMENT ASSOCIATION serving the multihousing industry in Austin, Brazoria, Chambers, Colorado, Fort Bend, Harris, Liberty, Matagorda, Montgomery, San Jacinto, Waller and Wharton counties.

ABODE, JUNE 2024, VOLUME 47, ISSUE 6

ABODE (USPS 024-962) is published monthly by the Houston Multi Housing Corporation. Publishing, editorial and advertising offices are located at 4810 Westway Park Blvd., Houston, Texas 77041. Telephone 713-595-0300. The $50 annual ABODE subscription rate is included in all member dues and additional subscriptions are available. The annual subscription rate is $50 for members, $65 for non-members. Advertising rates are available upon request. Contributed material does not necessarily reflect the views and opinions of the Houston Apartment Association. Copyright © 2024 by HAA.

Periodicals Postage Paid at Houston, Texas.

POSTMASTER: Send address changes to ABODE, 4810 Westway Park Blvd., Houston, Texas 77041.

SPONSOR MEMBERS

These companies have generously supported the Houston Apartment Association with their sponsor membership

Please give them careful consideration, whenever possible, in your business.

1st United Construction LLC

3BeeGuys Bee Removal

A&A Fence & Iron

A+ Aquatic Services

AAA Staffing Ltd

AAdvantage Laundry Systems

ABC Supply

ACM Contractors of Texas

ACT Security Group

Action Buggies

Action Towing Inc

Action Window Coverings Inc

Adobe Floors Inc

Advanced Building Supply LLC

Adventure Playground

Systems Inc

Advocate Construction Inc

Affinity Waste Solutions

Air Pro Systems

Alcaraz Lawn Care

Alexander-Rose Associates Inc

All American Mailboxes of Houston Inc

All Dry Service

All Power Solutions

Allen Lockers

ALN Apartment Data

Alpha Patrol Officer

Ambassador Services LLC

American Builders Group LLC

American Fire Protection Group

American Fire Systems Inc

American Platinum Builders

AmRent

Andrews Myers PC

Apex Multifamily

Arborworks TX

ARR Commercial Services

& Sheet Metal

Artisent Floors

ASAP Personnel Inc

Assurance Electric LLC

Asurety Dryer Vent & Fireplace Inspections

ATSG American Towing Service Group LLC

Audio Images International Inc

AWT Golf Carts

B&G Construction

Belfor Property Restoration

Bell’s Laundries

Bettencourt Tax Advisors LLC

BGE Inc/aka Brown & Gay Engineers Inc

Binswanger Glass

BioTechs Crime & Trauma

Scene Cleaning

Blue HERON Technologies LLC

Blue Marlin Maintenance & Services

Blue Star Security LLC

BluSky Restoration Contractors

BoldREMO LLC

Brady Chapman Holland & Assoc

Brokerology Properties

Brown & Brown Lone Star Insurance Agency Inc

BSI

Building Bright Houston

C4 Protection

Cameras Onsite LLC

Cano Electric Inc

Cantrell McCulloch

Capital Disaster Solutions

Capital Security Solutions

Cast Iron Construction and Remodeling LLC

Catalyst Construction

Centex Construction

Century Fire Protection Houston

CEP Construction Services LLC

CFI Group

Chadwell Supply

Chicago Title Commercial Division

Citi Fence & Concrete

Classic Same Day Blinds

CNM Roofing

Code Red Security Systems PLLC

Cody’s Wrecker Service

Comiskey Capital Insurance

Agency Inc

Commercial Fire Protection

Community Roofing Texas Contractors Inc

Core 24/7 Restoration & Construction

Core Multifamily Fabrication

CORT Furniture Rental

CRE Business Solutions LLC

Cromatik LLC

Crossroads Insurance Recovery

Advocates

Crowned Eagle Construction

CSC Serviceworks

CWC Renovation Inc

Cypress Landscaping & Irrigation Inc

D&G Quality Roofing Inc

DeNyse Companies

Designs by Holmes

DNM Contracting Inc

DoodyCalls

Double Oak Erosion

Dry Force Corp

Dryer Vent Wizard

EDT Construction Services

Elite Roofing LLC

Embark Services

Emersyn Electrical Services LLC

Encore Services TX, LLC

EnviroSmart Multifamily Pest

Solutions

Epic Multifamily Construction

EV Charge Solutions LLC/ EV Power Kings DBA

Exo Edge

Fantastic Floors

FASTSIGNS Missouri City

Featherston Sign Partners

FFH Inc DBA Liberty Builders

Fiat Construction LLC

Fidus Construction Services

Finish Factory Inc

Fire Reconstruction Inc

Flavor Finish Resurfacing

Floor Merchant

Fortified General Contractors

Foxen

Frontier Waste Solutions fun abounds

FW Walton

Gambit Construction

Gateman Inc

Giordano Construction Inc

Go Pro Contractors

Go-Staff Inc

Gold Star Restoration

Graphic Stylus Promotional Products

GraphTec Inc

GRASSA Construction

Graviti Fast EV Charging

Great American Business Products

Greater Houston Pool Management

Green City Security LLC

Green Garbology

Greenlogic

Grindstone General Contracting

Gulf Storm Roofing and Construction

Gulf-Tex Roofing & Services

H&R Operator Services Inc

Halo Doors Inc

Hamilton-Steele Outdoor Accents

Hartland Roofing & Construction

Hell N High Water Construction

Higginbotham

Hive Technology

HMS Landscaping LLC

Hoover Slovacek LLP

Hut Services LLC

Ideal Towing

Imperial Construction

Imperial Wallboard Supply/ The Villa Drywall, Inc.

Infinity Power Partners

Infinity Roofing & Restoration

Interior Logic GroupProperty Services

Iris MF LLC

J.P. Morin Company LLC

JAK Environmental LLC

Jenkins Restorations

Johnstone Supply

Leah McVeigh Design and Consulting

Ledge Lounger

Lee & Barrier Builders LLC

LGC Builders LLC

Lifeline Roofing Systems

Lift-Texas Construction

Lincoln Jacob Construction

Lithotech Printed Products/ Forms Center

LM Lawns

Long Point Roofing

Lopez Carpet Care & Painting

LP Building Solutions

Maldonado Nursery & Landscaping Inc

Mandalay Construction LLC

Masonry Solutions Inc

Matrix Construction Services

McMahan's Flooring Inc

MCW Signs Inc Dba Signarama

Magnolia

Merk Electric Co

Mohawk Industries

Monge Contracting Group

Montana Pavement Group LLC

MPS Direct

Mueller Water Conditioning Inc

Multifamily Access Control

MVP Same Day Signs

MX2 Commercial Paving

NEI General Contracting

Nelson Painting and Construction LLC

Norman Roofing and Construction

Northwood Construction

OnCall Patrol LLC

DBA ParkingPass.Com

Optima General Contractor LLC

Outdoor Elements

Pace Mechanical Services LLC

Parking Management Company/ PMC Towing

Pasadena Insurance Agency Inc

Paul Davis Restoration of Greater Houston

PCS Creative Surface LLC

Pepco Sales & Marketing

Perfect Parking

Phoenix Staffing

Power Services of Texas

Precision Safe Sidewalks LLC

Pretty Cleaning Service LLC

Pro-Tex Contracting Group LLC

Property Guardians

Protos Security

Pura Flo Corporation

PuroClean

Quatro Tax LLC

Qwikkit

RAM Construction

Ram Jack Foundation Solutions

Real Floors Inc

Redevelopment Services

Redwood Private Security LLC

Reliable Roofing of Texas Inc

Reliant

RENCON

Rent.

Resident IQ

Restoration 1 of Central Houston

Revela Inc

REVS (Refuel Electric Vehicle Solutions)

Right Scope LLC

Riverway Title

Roadrunner Restoration Company LLC

Roof Top Innovations

Roto-Rooter Services Co

Rotolo Consultants Inc (RCI)

SafeRent Solutions

Saint Clair & Sons Inc

Scoop Troop HTX

SEAL Security Solutions LLC

Secure Insurance

ServiceMaster Recovery Management

Servpro of Sugar Land

Sherwin Williams

Sign-Ups & Banners

Signal of Houston

Smart City Locating

Snappt

Space CT Towing

Spartan Fire Protection

Sprout Marketing

Steward Trash Valet Service

Stormwater Professionals Group

Strata Roofing and Construction LLC

Stripe Lines Inc Dba Grass Lines Inc

STX Roofing

Sunny Pressure Washing LLC

Surface Experts

Sutton AC Contractors LLC

Swain & Baldwin Insurance

& Risk Management

Texas Apartment Pool Services

Texas Concrete Professional

Company

Texas Crime Prevention Agency

Texas Southwest Floors Inc

Texas Window Cleaning Co Inc

The Apartments Concierge

The Dick Law Firm

The Legends Group LLC

The Liberty Group

The Window Source of Houston

Tidal Electrical Services Inc

Tillman Roofing Inc

Tradition Services

Two Brothers Foundation Repair

United Protective Services

Urban Design Constructors

Urban Value Corner Store

USA Heroes Coalition dba

USA Real Estate Professionals (USAREP)

USA Patrol Division

Valet Living

VBM Waste LLC

WASH Multifamily Laundry Systems

Watermark Restoration and Construction

Webb Pest Control

Westpark Communications

Whitmans Contracting and Roofing

Wilsonart LLC

WorldVue

XXL Construction Inc

Yellowstone Landscape

Yulf Decoration Group LLC

HERE COMES THE SUN – AND IT’S TIME FOR YOU TO MAKE A SPLASH AT HAA!

Some of our resident’s will be taking two months off from studying for tests and doing homework and swapping it with relaxing by the pool and staying up late all summer long. But, summer in the apartment industry doesn’t mean long days of relaxing in a lounge chair with a drink in our hand, it means we better be ready to gear up for a busy season ahead! There will be an influx of touring, clogged pool drains, air conditioning units going into overdrive and employees juggling work life balance while their kiddos are out on summer break.

It is easy to get lost in the summer chaos, but we don’t want our members melting in the heat. Here are a couple of tips to help this summer be a breeze.

First, make sure our teams are prepared for what is to come. Double check that inspections are up to date so there’s time to repair anything that may not be functioning properly and get units move in ready.

Second, if you are a manager, keep maintenance teams hydrated by bringing them water throughout the day while they are completing requests.

And third, consider holding a team meeting to prepare everyone for the busy summer ahead so they know what to expect.

Now while some students are taking a break from education, this is your time to indulge in the courses that HAA offers all summer long. Consider it summer school for the multifamily industry. Make a splash and sign up for some new classes. Whether you are an Executive, Independent Rental Owner, a young professional, or looking to improve your maintenance, tech, or apartment management skills, there is a session for you. Flip over to our Education Calendar for June on page 23 for dates and times!

Last but not least, let’s talk numbers. Another important thing to consider as we near the busiest time of the year is our spring market report. In December, we reported on being up in the air preparing for turbulence in the market. Have we landed back on the ground? Are there still bumps in the road? Will we be able to take a beach vacation this year? Read Bruce McClenny’s market report starting on Page 36 to find out.

Remember, life’s a beach, but we can still play in the sand. I hope everyone has a wonderful summer.

These companies have generously supported the Houston Apartment Association with their patron membership. Please give them careful consideration, whenever possible, in your business.

June Patron of the Month

Houston Planned Energy Systems HAA Member since 1978

Cotton Commercial USA Inc. HAA Member since 1982

Hire Priority Staffing & Executive Search HAA Member since 1993

Lowe’s Pro Supply HAA Member since 2006

Craven Carpet HAA Member since 1986

Camp Facilty Services HAA Member since 1994

Member since 1997

Gemstar Construction Development Inc. HAA Member since 1985

AAA Plumbers HAA Member since 1984

FSI Construction Inc. HAA Member since 1999

Dixie Carpet Installations HAA Member since 1987

Century A/C Supply HAA Member since 1968

By SHELLEY WATSON, HAA Legislative Chair, with BRADLEY PEPPER, Vice President

INAUGURAL ELECTIONS

For the first time, some county residents will be able to elect members to their Appraisal District Boards.

AFTER PASSING A historic property tax reform Constitutional Amendment in November, residents in counties with more than 75,000 people have the opportunity to elect three members to their Appraisal District Board of Directors for the first time.

Appraisal district boards do not have direct roles in determining property valuations, which are used to determine tax amounts for government entities such as municipalities, counties and school districts. But they have authority over the hiring and firing of chief appraisers. In addition, they are responsible for determining the pool of citizens that make up the Appraisal Review Board (ARB).

This is important because the ARBs ultimately have the authority to decide the value when a property owner protests their valuation. After listening to the property owner and appraisal district representative, the ARB makes a determination on the issues heard during the protest.

The independently elected representatives on the Appraisal Boards will help decide who serves on the ARB. In theory, having ARB members that actually understand the impact of property taxes on owners will help during the appraisal review process in determining actual values.

These elections were held on May 4. In Harris County, two of the three races are headed to June 15 runoffs after none of the candidates for at-large Places 2 and 3 received more than 50%. In the Place 1 election, former Houston ISD trustee Kathy Blueford-Daniels won outright.

The runoff for Place 2 will be Kyle Scott (HAA PAC endorsed), who led a five-candidate race by receiving 46.6% of the vote and Melissa Noriega (24.9%). The Place 3 runoff will be Ericka McCrutcheon (HAA PAC endorsed)

who received 41.3% and Pelumi Adeleke (21.3%). This was also a five-person race.

In Brazoria County, Robert York-Westbrook defeated Patton D. Ritter for the Place 1 seat, while Elizabeth Day beat Debra RosenthalRitter for Place 3 and John Luquette was unopposed in the Place 2 race.

In Fort Bend County, two of the three races had candidates that were unopposed, with Shaizad “Sam” Chatriwala and Andrew Johnson being unanimously elected. In the other race, Larry Indermuehle outpaced Amer Kumar. Webb Melder was unopposed in Montgomery County. In the other two races, Gary W. Beck beat Freddie Books and Pete Palmer defeated Luis Pedraza.

As stated, this is the first time that we have seen these types of elections. It was part of a historic property tax relief constitutional amendment that voters passed last year which included $12.7 billion in new property tax cuts.

These new board members will have fouryear terms, so time will tell how these new reforms will impact the property values of multifamily and commercial properties.

HUD Issues Fair Housing Act Guidance on Resident Screening, Online Advertising

On May 2, 2024, the U.S. Department of Housing and Urban Development (HUD) released two guidance documents regarding the use of artificial intelligence in the resident screening process and its application to targeted advertisements on online platforms.

HUD’s guidance does not represent changes to the Fair Housing Act; however, it does reflect the Biden Administration’s interpretation of renters’ protections under the Act. The resident screening guidance suggests that housing providers are liable for ensuring their rental

decisions comply with the Act even if they outsource screening to a third party.

HUD says that housing providers and tenant screening companies both have a role to play in ensuring that tenant screenings are transparent, accurate and fair.

The new tenant screening guidance highlights that use of third-party screening companies, including those that use artificial intelligence or other advanced technologies, must comply with the Fair Housing Act, and ensure that all housing applicants are given an equal opportunity to be evaluated on their own merit.

“Housing providers, tenant screening companies, advertisers, and online platforms should be aware that the Fair Housing Act applies to tenant screening and the advertising of housing, including when artificial intelligence and algorithms are used to perform these functions,” HUD stated.

While the housing advertising guidance is focused on the use of artificial intelligence in targeted housing advertisements by online platforms, housing providers should be aware the guidance suggests potential fair housing violations could result “when ad targeting and delivery functions are used, based on protected characteristics, to target vulnerable consumers for predatory products or services, display content that could discourage or deter potential consumers, or charge different amounts for delivered advertisements.”

If you have a regulatory problem or question, call the HAA main line at 713-595-0300 and ask for Government Affairs. If a particular code requirement or issue concerns you, let us know by emailing Bradley at bpepper@haaonline.org.

The Houston Apartment Association Political Action Committee is the PAC of the Houston Apartment Association, a non-profit trade association representing the area apartment industry. Without political capital, our industry would not be as successful in representing you or your clients’ interests, and thus, your financial well-being. The HAAPAC participates in local and state political campaigns, helping candidates who support the apartment industry and its supplier businesses. You can participate in the HAAPAC on several levels. For more on HAAPAC, visit www.haaonline.org/haapac

THE CASE OF THE MISSING BASEBALL CARD

Using the Sue Weaver Act to limit liability.

A RESIDENT REPORTS that the air conditioning in the resident’s apartment does not work. The heat doesn’t heat enough. The cold doesn’t cool enough. Occasionally it leaks and shuts off.

You’ve got this! You check references and call ACME AC, the best air conditioning company you can find.

The day after the air conditioning company does its job, the resident comes into the office quite upset. It seems that the resident’s prized Mickey Mantle rookie baseball card (which the resident calls “priceless”) is missing. The resident wants you to pay $50,000for the card. You tell the resident that you will look into the matter.

The next day, you receive a letter from a lawyer representing the resident. The letter explains that the card was prominently displayed on the mantle (no pun intended) in the living room of the two-bedroom apartment and was there before ACME began its work and was missing after ACME left. The lawyer says that the obvious conclusion is that one of the repairmen with ACME stole the card. The lawyer also says that you are responsible for the missing card because you hired this air conditioning company. The resident now wants to sue you for $75,000.

You wonder, “Is there a way to protect yourself from this type of liability?” You think “I wonder what the Sue Weaver Act in Texas has to offer?”

What is the Sue Weaver Act?

Chapter 145 of the Texas Civil Practice and Remedies Code limits liability for hiring certain types of companies that perform services in an occupied unit if certain conditions are met. This chapter is known as the “Sue Weaver Act.”

What protection does the Sue Weaver Act afford to property owners?

Section 145.004 provides that “a person who contracts with a residential delivery company” to deliver an item or who contracts with an “in-home service company” to place, assemble, repair or install certain items is rebuttably presumed to have not acted negligently if they meet certain requirements.

What is an “in-home service company”?

An “in- home service company” means a person who employs a person to enter another person’s resident and for a fee repair: (i) an appliance; and (ii) the resident’s heating, air-conditioning, and ventilation system; (iii) the resident’s plumbing system; or (iv) the resident’s electrical system.

What is a “residential delivery company”?

A “residential delivery company” means a person who employs a person to, for a fee: (i) deliver an item to another person’s residence; and (ii) enter the residence to place, assemble or install the item.

What are the conditions that must be met to limit liability when hiring an “inhome service company” or a “residential delivery company”?

A person who contracts with a “residential delivery company” to deliver an item or an “in-home service company” to place, assemble, repair or install an item is reputably presumed to have not acted negligently in doing so if:

1. the “residential delivery company” or “in-home service company” has done the following:

i. at the time a person was hired, the company obtained from the Department of Public Safety or a private vendor all criminal history record information relating to an officer, employee, or perspective employee; and

ii. the criminal history record information shows that, in the 20 years preceding the date the information was obtained for a felony or in the 10 years preceding the date the information was obtained for a Class A or Class B misdemeanor, the officer or employee had not been convicted of, or placed on deferred adjudication for: (a) an offense classified in Texas as an offense against a person or the family, an offense against property or public indecency; or (b) an offense in another jurisdiction that would be similarly classified as an offense listed in (a) in Texas; or

2. the person who contracts with the “residential delivery company” or “in-home service company” requests that the company; (a) obtain from the Department of Public Safety or a private vendor all criminal history record information relating to an officer, employee, or prospective employee; or (b) ascertain that the person holds in good standing an occupational license issued by a licensing authority in this state that has, before issuing or renewing the license, performed a criminal history background check on any employee of the company being sent to deliver, place, assemble, repair, or install an item. The person’s request must be in writing and delivered to the company prior to the company’s employee being sent.

What can I do now to obtain the protections afforded by the Act? First, determine which of your vendors

would qualify as an “in-home service company” or a “residential delivery company.” This would probably include most types of vendors that perform services in an occupied unit.

Second, determine whether you have a written contract with the type of vendor you have identified as either an “in-home service company” or a “residential delivery company.”

Third, if you have a written contract, determine whether you have a provision that adequately requests, or requires, the vendor to obtain the criminal history information which is required by the Act.

Fourth, if you do not have a written contract with your vendor, provide written notice to the vendor that you are requesting that the vendor perform the criminal history background checks required by the Act.

Fifth, the Act requires that a copy of your request must be maintained for at least two years. Consequently, whether you use the contract or notice, a copy should be maintained in your records for at least two years.

You never know when a resident might claim something is missing from their apartment. By taking the extra precaution of com-

plying with the Sue Weaver Act, you can build a defense if someone you hire goes into an apartment and is alleged to have done something in the apartment.

Good Luck!

Want more “it’s the Law”? See current and previous issues of ABODE online at http://issuu.com/haa_abode

NEW for 2024: Got a minute?

The first Thursday of each month, HAA will release a series of videos by legal topic with multiple videos for each chosen theme. Don’t miss this continously building library of legal information, with subscriber access all year long. Cost: $250 per subscriber/per email for one year of access. For more information, visit www.haaonline.org.

UNSIGNED, SEALED, DELIVERED

A resident requests a refund after losing her full security deposit to damage charges.

A RESIDENT FILED a complaint with the Houston Apartment Association asking for a refund of $1,350 and to dispute damages that were added to her final move out statement. The resident lived in the unit for seven years and expected that normal wear and tear charges would not be added to her account. She provided photos upon move out showing the condition of her unit.

HAA reached out to the apartment property and passed along the information and that response was forwarded to the resident. Enclosed in the management’s response were copies of the final account statement, notice to vacate, lease and move-in/move-out condition form. The charges were for a broken mirror and blinds, carpet replacement and cleaning of the

unit totaling to $1,350. The property did not have a copy of the resident’s signed lease, due to changing management companies four times while the resident was living in the unit.

The case was heard during a Resident Relations Committee meeting where the committee decided in favor of the resident. The committee made this decision because management did not provide a signed copy of the lease.

Management is to refund the resident her full security deposit of $1,350 and remove all other charges listed.

The HAA Resident Relations Committees provide an impartial review of resident complaints using the documentation provided by both the resident and management. When the committee

finds in favor of the resident, we appreciate a direct response from the property to the resident within two weeks and a copy of the payment sent to HAA for our records. When the committee finds in favor of the resident, management may file an appeal. When the committee finds in favor of the property owner, the decision is final.

If you are a manager with a resident relations issue, call HAA at 713-595-0300 for direct assistance. Renters can be referred to HAA to speak to a trained consultant, fluent in English and Spanish, Monday through Friday from 9 a.m. to 4 p.m. Residents can also be directed online to www.haaonline.org/renters.

Join us as we recognize the multifamily industry's

professionals and properties, as well as recent NAA credential holders.

2024 Honors Awards

RECEPTION AND REGISTRATION FROM 4:30 PM TO 6 PM

AWARDS PROGRAM WILL BEGIN PROMPTLY AT 6:30 PM

HILTON AMERICAS-HOUSTON

1600 LAMAR ST., HOUSTON, TEXAS 77010

$130/seat or $1,350 for a table of 10

Early Bird Discount: Save 10% if registering by June 5

Tables of 10 may be reserved by company name when paid in full.

Requests for refunds must be received in writing by the end of business day on June 24. No refunds will be granted after June 24 or for no shows, but tickets are fully transferable.

Register online at www.haaonline.org/honors

BE A PART OF THE NEXT GENERATION OF HAA LEADERSHIP. This niche group within HAA is dedicated to the networking and professional development needs of HAA’s young professionals and it is open to all members. Network with your peers and grow your career together among the next generation of HAA leadership! To learn how to become involved with NEXT, see online at www.haaonline.org/next.

NEXT Mission Statement:

A network of young professionals committed to the growth of future leaders with the Houston Apartment Association through education, peer-to-peer networking, and legislative and community involvement.

HAA NEXT programs include networking socials hosted at various venues across Houston and professional development breakfasts held at the HAF Education Center. The Professional Development programs feature special guest speakers on timely topics relevant to enhancing and furthering your multifamily industry career.

Register online at www.haaonline.org/next or email us at events@haaonline.org for more information. We look forward to meeting you!

NEXT Professional Breakfast

MINDSET: Techniques for

a Resilient Mindset with Kevin Karschnik

Your mindset has the power to transform the way you see the world, view failure, and build resilience. In this presentation, you will learn practical activities to build optimism, reduce stress, and become more mindful. Participants will walk away with information and strategies they can apply immediately including happy habits that contribute to a positive mindset, understanding negativity bias, managing anxiety during an emotional hijack, and establishing a morning routine.

JUNE

4-5

Leasing 101

Tuesday, June 4 through Wednesday, June 5

9 a.m. to 5 p.m. on Tuesday 9 a.m. to Noon on Wednesday From Fair Housing to today’s terminology and sales techniques, the industry’s most seasoned and dynamic instructors are on hand to educate students on the boundless potential that awaits those who choose the apartment management industry as their career. Visit www.haaonline.org for more information.

5

New Supplier Orientation

Wednesday, June 5

10 a.m. to 11 a.m. Via Zoom

All new supplier members or representatives can attend this online orientation. Learn how to get involved and take advantage of member benefits. Email members@haaonline.org for details.

Ambassador ONE Society Meeting

Wednesday, June 5

3:30 p.m. to 5:30 p.m.

Kirby Ice House Memorial Supplier partners can join this committee for HAA Ambassadors to find out how to promote HAA Events, contact properties to survey them on benefits, and network with other supplier partners. Supplier members only. Email members@haaonline.org for details.

7

ACES Luncheon

Friday, June 7

11:30 a.m. to 1 p.m.

In pursuit of an ever-increasing level of professionalism, the Apartment Community Executives & Supervisors group has created a vehicle to interface with members and exchange information and knowledge. Visit www.haaonline.org/events for more information and to register.

Sponsored by Best Plumbing and Catalyst Construction

11

NEXT Breakfast

Tuesday, June 11

8:30 a.m. to 10 a.m.

HAA NEXT is a network of young professionals committed to the growth of future leaders with HAA through education, peer-to-peer networking, and legislative and community involvement. Visit www.haaonline.org/next.

Sponsored by Lincoln Jacob Construction and Qwikkit

12

IROC Breakfast

Wednesday, June 12

8 a.m. to 10 a.m.

Whether you own/operate two or 200 units, we encourage you to join HAA and your fellow independent owners for networking, education and more. Topics range from regulatory and compliance concerns to leasing and marketing strategies for smaller communities on a limited budget. Contact education@haaonline.org for details.

Sponsored by Matrix Construction Services

12

Resident Relations Committee B Meeting

Wednesday, June 12

2 p.m.

Closed committee meeting via Zoom

13

Avenues: Main Street 2 Thursday, June 13

9 a.m. to Noon

See Page 22 for more information. Sponsored by Best Plumbing

Sponsorship Auction Thursday, June 13

3 p.m. to 5:30 p.m.

Supplier partners can purchase sponsorhips for upcoming HAA meetings and events. Contact asherbondy@haaonline.org for details.

19

HAA Offices Closed Wednesday, June 19

The HAA offices will be closed in observance of Juneteenth

25-26

CPO: Certified Pool Operator (Spanish) Tuesday, June 25 and Wednesday June 26

9 a.m. to 5 p.m.

CPO will dispel the myths in pool care and tremendously reduce chemical expenses and extend the life of your pool. Successful completion of this course offers apartment industry personnel a five-year certification from the National Swimming Pool Foundation and helps you ensure that pool chemicals are being used properly and when appropriate. Recommended for anyone working with pools, this course is also a great course for property managers. Make sure you are up-to-date on local codes to help reduce risk and liability by attending this informative session. Visit www.haaonline.org/events to register.

Sponsored by Poolsure

27

Featured Event: Honors Awards

Thursday, June 27

5 p.m. to 8 p.m.

1600 Lamar Street, 77010

Join us as we honor and celebrate the multifamily industry's finest professionals and properties, as well as recent NAA credential holders. For more information and to register, visit www.haaonline.org/events and see Page 18.

Individual Awards sponsored by Apartments.com and Tidal Electrical Services

Property Awards sponsored by American Fire Systems and Ameritex Movers

Reception sponsored by Century A/C Supply and Lowe’s Pro Supply

UNLESS OTHERWISE NOTED, all events meet at our Dinerstein Reed Prokop Education Center, 4810 Westway Park Blvd., second floor, in either the Direct Energy and Liberty Personnel & Executive Search or the Camden and Michael Stevens Interests Room. Meetings located at the HAA Offices, 4810 Westway Park Blvd., first floor, will be held in the Redi Carpet and Winograd Families/Judwin Properties Conference Room. See www.haaonline.org/events for an interactive calendar.

JULY 2

Avenues: Technology Row 2

Tuesday, July 2

9 a.m.. to Noon

See Page 22 for details.

Sponsored by AAA Plumbers

3

New Supplier Orientation

Wednesday, July 3

10 a.m. to 11 a.m. Via Zoom

All new supplier members or representatives can attend this online orientation. Learn how to get involved and take advantage of member benefits. Email members@haaonline.org for details.

Ambassador ONE Society Meeting

Wednesday, July 3

3:30 p.m. to 5:30 p.m.

Kirby Ice House Memorial Supplier partners can join this committee for HAA Ambassadors to find out how to promote HAA Events, contact properties to survey them on benefits, and network with other supplier partners. Supplier members only. Email members@haaonline.org for details.

4-5

HAA Offices Closed Thursday, July 4 through Friday, July 5

HAA will be closed in observance of Independence Day

10-12

Extreme CAM

Wednesday, July 10 through Friday, July 12

9 a.m. to 5 p.m.

The Certified Apartment Manager credential is already exceptional. Presented in a super-charged format, Extreme CAM accelerates the education process and allows you to attain the CAM credential via a schedule that works best for you. (Recommended for experienced managers only.) Visit www.haaonnline.org/events for more details.

Sponsored by AAA Plumbers, Fidus Construction, and Prime Elevator

10

Resident Relations Committee A Meeting Wednesday, July 10

2 p.m.

Closed committee meeting via Zoom

11

Go-Getter Meet and Greet Thursday, July 11

4 p.m. to 6:00 p.m. Cottonwood

16

Blue Star Certification

Tuesday, July 16

7:30 a.m. to 4:30 p.m.

Contact eucation@haaonline.org for details.

Sponsored by American Fire Systems and Greenlogic

17-19

Extreme CAM Wednesday, July 17 through Friday, July 19

9 a.m. to 5 p.m.

The Certified Apartment Manager credential is already exceptional. Presented in a super-charged format, Extreme CAM accelerates the education process and allows you to attain the CAM credential via a schedule that works best for you. (Recommended for experienced managers only.) Visit www.haaonnline.org/events for more details.

24

Pasadena Region Meeting Wednesday, July 24

11:30 a.m. to 1:00 p.m.

Registration starts at 11 a.m. The program and lunch begin at 11:30 a.m. This event is open to onsite personnel and management only. This event is free, but we kindly ask you to RSVP yourself and/or team members. More information to come. Visit www.haaonline.org/ outreach meetings for up-to-date information. Contact education@haaonline.org to RSVP.

Sponsored by Roadrunner Restoration

25

Avenues: Marketing Place 2 Thursday, July 25

9 a.m. to Noon

See Page 22 for details.

Sponsored by Dry Force Please

Sponsored by Encore Services, Matrix Construction Services, and Valet Living

Sponsored by ALN Apartment Data 30

Excel 101: Beginner Tuesday, July 30

8:30 a.m. to Noon

Learn how to conquer the spreadsheet in this informative course. Visit www.haaonline.org/events for details and to register.

What is Avenues?

It is a series of seminars presenting nationally-acclaimed speakers who are experts in their fields, with sessions for every level of multifamily professional.

Who Can Sign Up?

We offer multiple options for registration:

• Annual per property subscription

• based on the number of units.

• Individual Annual Supplier

• Partner subscription

• Individual/Corporate

• subscription rate

What does this get me?

Once you sign up it gives you access to all 15 education sessions through out the year. All you need to do is respond to the reminder email before each session letting us know how many are attending.

Pricing:

• Fewer than 200 units: $210/year

• 201-350 units: $410/year

• More than 351 units: $510/year

• Supplier: $210/year

• Corporate Individual: $210/year

• Individual sessions: $60/person

Three (3) CEC credits awarded per session.

Look for the class schedule at www.haaonline.org for details. Contact the HAA Education Department at education@haaonline.org or register online at www.haaonline.org.

by Charlotte Pisciotta

ACES Manager

Presented

Summer Business Exchange 5 Minutes!

Property management supervisors and executives:

Don’t miss this free networking opportunity that supports our industry.

Join HAA and Event Chairs Ingrid Shultz, RPM Living, and Joe Melton, The Morgan Group, for the 18th annual HAA Summer Business Exchange, a great opportunity to learn about the latest industry products and services in an online, controlled environment and give back to your industry. Find supplier partners that can help with your needs with CapEx Projects, renovations, staffing, pest control, technology and more!

Thursday, August 8 HCC West Houston Institute, 2811 Hayes Road, 77082

8 a.m. – Registration

9 a.m. to 11 a.m. – Exchange

See more at: www.haaonline.org/businessexchange or contact Susan Hinkley at shinkley@haaonline.org or 713-595-0313 for more information.

Registration opens June 26, visit www.haaonline.org/businessexchange

Owners/Property Management:

The Business Exchange is a forum where property management leaders are seated at tables while supplier representatives move around the room, selecting the individuals they wish to visit. Each visit has a five minute limit. Supplier companies pay for this opportunity and your attendance makes this possible.

This event raises money for the Houston Apartment Foundation Scholarship Fund. The HAF Scholarship Fund provides monetary assistance to students who are pursuing their credentials. By simply attending, (you pay nothing) you are helping us grow talented people to work in the industry. To take part in this great fundraising event, contact HAA’s Susan Hinkley at shinkley@haaonline.org

Suppliers:

You will have access to a number of property management leaders from owner executives to maintenance supervisors. For the cost to participate, visit the link below.

Register at www.haaonline.org/businessexchange and thank you for your support.

Brazoria County State of the Submarket

Tuesday, March 19 at the Hilton Garden Inn - Pearland Sponsored by Apartments.com, Fidus Construction and Lincoln Jacob Construction

A great lineup of local area leaders presented timely information on economic trends, rental rates, new developments and more for Brazoria County. Thank you to Moderator Deborah Holcombe, Capstone Management, and the panelists: Matt Buchanan, President, Pearland Economic Development Corporation; Nichole Williams, Smart Apartment Data; Patti Worfe, The Economic Development Alliance for Brazoria County; and Judge Matt Sebesta, Brazoria County.

On the Scene with the HAA

HAA PAC Steering Committee

Tuesday, April 16

The HAA PAC Steering Committee hosted three Harris County JPs: Judge Wanda Adams, Judge Eric William Carter and Judge Victor Trevino. The lunch was a great opportunity for informative, robust discussion. HAA appreciates the admirable public service of these judges.

WE’RE ALL ABOUT BETTER GOVERNMENT Threats from government are coming at the apartment industry at a rapid pace. The HAA PAC, the political action committee of the Houston Apartment Association, needs your help to fight bad legislation. HAA members can participate in the PAC on several levels. Committee application forms are available. To join, renew or learn how to become involved with the PAC, see online at www.haaonline.org/haapac or contact govaffairs@haaonline.org.

HAA PAC TopGolf Fundraiser

Thursday, April 11 at TopGolf Katy HAA’s amazing members scored a HOLE IN ONE for the HAA Political Action Committee at the Top Golf PAC Fundraiser. Thank you to everyone who helped raise $20,800 for the HAA PAC!

Thank You to our Event Sponsors and Congratulations to the Winners:

TOP Sponsors

Catalyst Construction

Tidal Electrical Services

Beverage Sponsors

Best Plumbing

Guardian Construction

Best Team Spirit Contest Sponsors

AAA Plumbers

Valet Living

Hole In One Sponsor Epic Multifamily Construction

Lunch Sponsors

Behr Paint

Intersolutions Staffing

Welcome Sponsor Earthworks

Last Place Award

Encore Services TX

Team Awards Sponsors Apartments.com

Hire Priority Staffing & Executive Search

Saferent Solutions

Best Male & Female Award Sponsors

Church Foundation Repair

Church Pool Services

TopGolf Team Winners:

1st Place – Tidal Electrical 2nd Place – Epic Multifamily Construction 3rd Place – Norman Construction

TopGolf Best Male and Female Award Winners: Zach Tracy with Tidal Electrical Services and Beth S

TopGolf Last Place Award Winner: Zinnia Rangel, Judwin Properties

TopGolf Best Team Spirit Award Winner: Century A/C Supply with Honorable Mention to Greystar

On the Scene

Buckle

Up!

The bumpy ride continues …

We may have hit the ground running in 2024, but the terrain is anything but smooth.

By BRUCE MCCLENNY

In the December 2023 ABODE, we discussed the apartment industry facing turbulent times due to the extreme amount of new apartment supply being delivered in 2023 and continuing to be delivered in 2024. The beginnings of this over-built scenario formed in 2021 as local rent growth exploded by 14% and occupancy reached a high point of 91.5% driven by absorption of 38,000 units. Incredibly strong fundamental performance was happening across the nation which immediately received the attention of developers, and rightly so. In 2021, interest rates were very low and capital was plentiful and readily available. Put all these aspects together and a nationwide development cycle was born. Inherent in such a cycle is the timing it takes a property to go from conception to construction delivery, which is approximately two years. This construction boom cycle formed in 2021 created a 50-year high for deliveries two years later, in 2023 and 2024.

In Houston, deliveries in 2023 registered 26,000 units, which is the largest number of units delivered in any one year since we began collecting data in 1986. In 2024, deliveries should reach 21,000 units, which will stand as the fifth largest number of deliveries we have ever recorded. By the end of 2024, Houston will have delivered around 47,000 units from the years of 2023 and 2024. This number of units is Houston’s significant contribution to the current historical construction boom cycle. The 47,000 units delivered in 2023 and 2024 will be 12% greater than the 42,000 units delivered in the back-toback years of 2015 and 2016 during the Fracking Boom.

Houston’s level of new supply that the pipeline has poured out, as large as it is, only becomes an issue if demand/leasing/ absorption does not keep pace. All three of these terms (demand, leasing and absorption) are correlated. These terms are all part of the “build it and they will come” thesis. Demand for apartments is generated by job and population growth. The more people coming to an area, the more need there is for housing which creates leases. Absorption is the measurement or an expression of the change in the number of occupied units for a period of time. To put it another way, absorption is the net of move-ins and move-outs expressed in units.

The graph above compares the new units delivered over the last 12 months, as of the end of April, to overall absorption. In addition, overall absorption is split into Class A and the combination of absorption for Classes B, C and D. This graph provides a means to assess how the level of demand generated through leases, expressed in terms of absorption, is keeping up with new units delivered. There are no established rules that state, for example, if Class A absorption is two-thirds of new units delivered then all is well with properties in lease-up. By the way, the Class A absorption in the graph is 62% (17,282/27,662) a little less than two-thirds of the new units delivered, but still provides no guidance as to whether the market is over built or not. Instead, the determination that there is too much supply for demand is inferred from the level of concessions or a drop in the rent level of Class A.

To better understand the dynamics behind pricing strategy during a construction cycle, focus on just one of the 105 properties making up the 27,662 new units delivered. A property in lease-up has a proforma, or a monthly leasing goal, of say 20 units. If that monthly goal is not met and leasing velocity falls behind, a property lowers price or raises a concession to attract more traffic. The graph at right captures the prevalence and magnitude of Class A concessions. Notice the relatively low prevalence of concessions at 32% back in August of 2022, when Class A monthly rent reached an all-time high of $1,805. In addition, the magnitude of concessions was at a relatively low average of -5.7%. This level of concessions occurred at a time when market conditions were strong, providing a balance that allowed rent to grow while leasing flourished. Now contrast August 2022 to October 2023 when market conditions have changed to a time when supply has begun to outpace demand, as evidenced by the dramatic jump to 46% of all Class A units offering a concession that lowered those units’ market price by 6.2%. With such discounting, the Class A monthly price in October of 2023 dropped $54 to $1,751. From there, the concessions mount, month after month, to the point that the current Class A monthly price as of the end of April has set-

tled to $1,739, a $66 drop from the market high of $1,805 in August of 2022. It is safe to say that this series of escalating concessions qualifies for declaring an over-built market.

Another point to be made about the new units delivered vs absorption graph at left is the negative absorption of Classes B, C and D of 5,347 units over the last 12-months at the end of April. Prior to 2020, or the Pandemic, these classes exhibited stable occupancy levels with little movement in occupancy one way or another. But the reopening of the economy in 2021 spiked absorption for these classes by more than 12,800 units, which pushed occupancy to or near historical highs. In December of 2021, occupancy for Class B had risen to 94.2%, which was a record high. Occupancy for Class C at the end of 2021 was 93.1%, which was very close to the all-time high of 93.4% recorded in 2015 during the Fracking Boom. For Class D, occupancy peaked at 89.9% by the end of 2021, which fell short of the 2015 Class D occupancy high of 91.8%. Since such lofty occupancy attainment, these classes have experienced nothing but a steady stream of net move-outs. The table of data below goes more in

depth, accounting for the move-outs starting in 2022 and continuing through April of 2024 for Classes B, C and D. This persistent level of negative absorption is troublesome and unprecedented. Occupancy levels for these Classes are suffering from the rise of the Single Family Rental (SFR) shadow market. Ever since the end of the Great Recession in 2009, corporations, such as Blackstone and J.P. Morgan Asset Management, have funded companies like Invitation Homes, American Homes 4-Rent and Tricon Residential. These companies, along with others plus Mom-and-Pop investors, have been amassing a sizeable and growing supply of SFR’s which are causing this flight from professionally-managed apartments.

Houston apartments from top to bottom, A to D, are experiencing varying degrees of demand issues. Class A is suffering from too much supply overwhelming demand and the other classes are facing a steady stream of moveouts to shadow market rentals. The outcome of these demand issues results in lower overall occupancy which over time lessens pricing power.

The graph below shows a history of all classes for overall occupancy and effective rent going back to December of 2019 in quarterly increments. Before and during the Pandemic, 2019 and 2020, rent moved in a narrow range between $1,051 and $1,060 and occupancy was weakened by the economic lock-down. During 2021, when the economy reopened, spurred by historic job growth and work from anywhere migration, occupancy leapt to an overall record of 91.5% and rent growth spiked delivering growth of 14.0% in 2021 followed by 5.4% growth in 2022. Once occupancy reached 91.5% in the fourth quarter of 2021, the demand forces discussed above began driving occupancy sequentially lower for 27 months. From this relentless drop in occupancy, rent finally rolled over in June 2023, which started the slide to its current level of $1,271. Over the last 12-months, overall effective rent growth was negative by 1.4%.

Chart © Bruce McClenny,

These same supply vs demand dynamics are playing out in other major Texas markets, decimating occupancy levels and rent growth to a much greater degree than what Houston has experienced. In Dallas/Fort Worth, current rent growth is -4.0%; in Austin -8.5%, and -4.2% in San Antonio. Compared to these other markets, Houston’s rent growth of -1.4% looks much rosier, whatever consolation that might be.

Market Fundamentals by Class

Overall statistics of average rent, average occupancy and total absorption are an aggregation of these statistics for each class of property. Classes are determined primarily by a distribu-

tion of market rate or price. The table below, “Greater Houston Class Analysis as of 04-302024,” breaks out how each class differs in performance and contributes to the overall performance. In addition, Class A has been divided into two groups. One group contains those Class A properties that opened or began leasing in 2023 and 2024. Since properties in this group are in a wide range of lease-up, occupancy is understandably low at 39.1%. Due to the everincreasing supply of this group over the time frames analyzed, rent trends cannot be property calculated. However, it is reasonable to assume that rent levels of this group are under pressure as they are in all other classes. The sec-

ond group, Class A Stable are those properties that were opened in 2022 and prior, and make up the bulk of Class A.

To continue the absorption discussion, focus on the far right of the table. The stark contrast between both categories of Class A absorption and the other classes is dramatic, which is all positive absorption in Class A and all negative in the other classes of B, C and D. Even though Class A had such positive absorption, it does not measure up enough against new supply as Class A rent growth over the last 12 months reacted negatively by 2.9%. All other classes of 12 month rent growth are basically flat. Classes B and D both experienced a -0.7% decline,

© Bruce McClenny,

whereas Class C’s 12 month rent growth was a positive 0.4%. Such weak rent movement in these classes is traced back to loss of occupancy from the SFR shadow market. The overall three month rent trend at 2.5% has turned positive strictly from the performance from Classes A and B. The three month trend is an annualized calculation meaning the nominal trend is multiplied times four which assumes that the actual trend growth over the last three months will continue over the next nine months. Due to fourth quarter seasonality and the delivery of another 14,000 units this year, the likelihood of achieving this level of rent growth for 2024 is remote.

Another point of interest found in the class analysis is the price level of Class A 2023 and 2024 at $1,614 compared to the average price of $1,760 for Class A stable. It would be reasonable to assume that the price of brand-new product would be higher priced, on average, than existing older, stable product but that is not the case with this current round of deliveries in 2023 and 2024. Further investigation reveals that 91% of the units delivered are in

suburban sub-markets and not in the generally higher-price urban sub-markets within Loop 610, Galleria and the I-10 Corridor west to CityCentre. A precept of residential real estate is that the further you move from the urban core of a metro area, the lower the purchase price of a single-family home and the lower the rent for an apartment. This pricing dynamic is part of the old axiom of “Drive till you qualify.”

The Road Ahead

The route is already set for 2024 with a historically large construction pipeline at a time when job growth, the dynamic that powers absorption to fill apartments, is settling back to a range near the long term average of 65,000 jobs per year. Such job growth is decent, but seems insufficient to avoid more pressue to lower pricing.

For 2024, expect new apartment deliveries of 21,000 units. Even if absorption could muster 15,000 units, occupancy would end the year below 89% which is a very weak position for properties to be in to move rent higher. This

level of absorption assumes that Classes B, C and D turn around the move-out problem that has been plaguing them since 2021. There will be winners and losers in every class of property. Some properties will navigate the bumpy terrain and experience rent growth of +3% whereas others will struggle and realize negative rent growth of 3%. Those are the extremes of rent growth. The bulk of properties will find their rent growth all along the +3/-3 spectrum. Put all this mixed results together and the stage is set for flat or mildly negative overall rent growth in 2024.

Bruce McClenny is Industry Principal, MRI ApartmentData MRI Real Estate Software.

For more details, call 281-759-2200, email bruce@apartmentdata.com, see Marketline on Page 71 and subscribe to his YouTube channel at: https://www.youtube.com/channel/UCaP mY9AevdjCpqe4UeQU7xw/featured

This Product Service Council sponsored education event took a closer look at a hot topic: Build-to-Rent.

By MADISON O’BAR, HAA Communications Manager

It’s three letters I am sure you have heard about in an increasing amount over the last few years: “BTR” otherwise known as Build-to-Rent. Did you know that the Houston metro area is third in the nation for BTR developments, with 4,836 units underway and completion expected by 2026? According to RentCafe, demand for more BTR homes is growing as residents skip closing on a house to lease one instead, calling these renters “renters by choice.”

Due to requests for more information on the subject, the HAA Product Service Council’s May 18 Supplier Success Program presented a panel discussion covering this latest rental housing option. These single-family Build-toRent communities are attracting significant interest among renters and capital investments. Product Service Council President Joey Rodriguez, CAS, Greenlogic, and Debra Knight, CAS, Comm-Fit, led the discussion and were joined by panelists Dana Dovell, Vice President, Kaplan Management; Margot Brown, CAPS, Regional Property Manager,

Cushman & Wakefield; Misti Morales, Vice President, Asset Living; and Julie Caballero, Purchasing Project Manager, Wan Bridge Group/TBD Management. Below are some key takeaways from the discussion.

What are the benefits of Build-to-Rent

Communities?

The Build-to-Rent market is very similar to the trends seen in the 80s and 90s when developers started growing townhome communities. Back then, townhomes gave developers the opportunity to diversify their pipeline, and that is exactly what is happening here. The combination of an apartment community and a single-family home, within a master plan, delivers options to those who need housing from the developer side and from the operation side. The multifamily developers are looking at adding that additional business unit to their portfolio because the lenders are not as generous as they were before, and they want to make certain that there is a return on their investment. With BTR, the developer can con-

tinue their pipeline on the real estate side with another product type, but also future proof their plan to grow and attract renters.

What are the challenges of Build-to-Rent Communities?

There are many, but one challenge in the market is the competition from single-family homes that are being rented out. While apartment communities offer management services and maintenance support, the unpredictability of the number of homes being put up for rent poses a disadvantage. Another challenge is developers needing guidance, especially smaller ones who are new to BTR, to create realistic performance goals and manage operational expenses effectively. Budgeting for repairs and maintenance in the first year is a challenge, so having reliable partners who can help solve unforeseen problems is crucial. Having vendors who can give specific care and maintenance instructions for the installed product are essential for providing quality service to residents. It is also important for

Build to rent

supplier partners to notify the management team about discontinued products to ensure easy replacement when needed. In the past, a multifamily project can experience difficulties when residential builders, who primarily work on single-family projects, were hired. Similarly, in the BTR space, residential builders need to ensure alignment with the needs and expectations of renters.

How is the BTR market looking in Houston?

All of the markets have seen some major shifts, and you have to take a step back and look at it from 40,000 feet, not just the property next door, but ask yourself, “Who’s coming and who’s going to stay?” Territory locations differ from suburban and urban core locations in terms of renter demand. Plus, the upcoming election is expected to further impact consumer decisions, particularly in the BTR community, determining whether tenants or potential tenants are going to continue to rent or to buy. Now, finding the perfect renter is hard to pinpoint in the BTR market. The market remains skewed, making it challenging for developers to identify target renters and determine appropriate strategies and finishes to put in their communities based on who they think will live there. Understanding buyer preferences, especially in the BTR market, is crucial and right now there is a fine distinction between current BTR deals and new buyers who are just now entering the market.

What are some key similarities and differences between apartment communities and Build-to-Rent communities?

There are of course similarities between Build-to-Rent and multifamily housing models, with the biggest difference being the structure. The structures are built together in a planned community and often have shared features such as fitness facilities, swimming pools, parks, playgrounds, and dog parks, among other amenities, like most multifamily properties. But BTR homes can look like homes in any other surrounding neighborhood, except these are to rent and not to buy. Now looking inside the structure, at the differences in the people who are living in the

community, there is a different collaboration effort on these BTR properties. For example, if the management team doesn’t handle a situation with the resident in a genuine and authentic way, they will see through it. If one resident has a negative experience, the neighborhood is coming together, because everybody knows each other and everybody talks, which is a different collaboration than a traditional conventional apartment community.

What kind of amenities are offered in BTR communities and are there amenity fees that are associated with these?

This varies across the board. Most communities offer residents instant communication, pools, dog parks and walkways, in a master plan. In terms of amenity fees, some have HOA fees that are added into the amenity fees. As far as services go, some companies offer resident reward programs, some include WIFI and smart home access in their monthly amenity fees, and some are starting to include lawn maintenance and care, so now that will be added into resident’s monthly amenity fee as well.

How do companies approach the staffing and management of BTR?

Some companies have chosen to centralize. So, for example, you have seven builds, with 700 homes and you have a staff of four that are overseeing them. This management approach is very different than what has been seen before, and they have no on-site staff. There is a lot of self-guided tours with BTR homes being shown by a realtor. Some companies in Houston are very heavily reliant on the locator market, so models must be completely shifted and accommodated to that style of leasing. They are getting 95% of their leases through MLS Listings alone.

Other companies have chosen to keep someone on-site for a more hands on approach and focus on very strong digital marketing campaigns with a digital marketing partner that includes a very healthy search engine optimization. Using this targeting approach, they are consistently getting great referrals and leases in their market areas.

What are some recommendations for suppliers to get in front of manufacturers to see how they can help?

Consistent communication is key, but lack of communication is also key. When a vendor is trying to establish relationships with the BTR offices, the amount of time available is much less than on a typical multifamily and community deal, so being efficient and mindful of their limited time will only enhance opportunities with that BTR group. The challenges and obstacles found in opening BTR properties can be different from multifamily properties, especially if it’s a pod in a master plan where the management is not the land developer. One company employs a manager to check three e-mail accounts every day with little time to build relationships with suppliers. Another panelist suggested that if a supplier has a manager’s phone number, they should send them a quick text message every now and then to see how the manager’s day is going. Vendors should do their research, come with solutions for the specific business module, and put the best price up front.

What are the three most important factors for leasing an apartment?

Digital curb appeal, realtors, and location. The digital piece is important because it gives management the ability to better control their brand, better control the messaging, and really dial into the qualified consumer. By not investing in digital curb appeal and realtors early on, it will take too long to create that needed traffic to get you the numbers. It is important to start the digital piece early on and to manage it well, especially in outlying suburban markets, so that it can attract the right qualified consumer. Not only do they rely on the digital marketing, but they also want to maintain that communication, and keep residents engaged. By creating a sense of community, the tenants aren’t just leasing for one year but become longtime residents.

Build-to-Rent is causing a significant shift in the landscape of housing and real estate in Houston, and it isn’t going anywhere anytime soon. Stay tuned for more on BTR and the Houston area rental markets in the near future.

Want more Supplier Success? Find our upcoming dates at www.haaonline.org and reach out to a Product Service Council Mentor, see Page 65 or scan the QR code at right for details.

Insuring Texas Multifamily Communities

Tips to mitigate risks and stand better protected.

By MASON MCENTIRE, Brady, Chapman, Holland & Associates

Texas, with its vast landscapes and diverse cities, offers something for virtually every renter. Whether a person wants to be fully immersed in big-city life, lay down roots in quiet suburbs or live surrounded by lush fields and livestock, chances are there’s a community to suit them.

The sheer diversity that appeals to so many, however, also presents unique challenges for those who own and manage multifamily communities. This is particularly true when it comes to insuring them. As those in the industry grapple with the intricacies of safeguarding their investments, they find themselves facing a number of challenges. Let’s take a look at common issues Texas property owners and managers find themselves up against, and steps they can take to keep their communities and businesses better protected.

The Multifamily Residential Industry Faces a Myriad of Potentially Costly Challenges

Every industry has its obstacles and risks, but the stakes tend to feel higher for those working to provide safe living environments for residents while also maintaining successful businesses. The following issues, though commonplace, have the potential to deal properties a costly financial blow.

•Issues Related to Extreme Weather: From scorching summers that require HVAC systems to

put in overtime to unpredictable hurricane seasons that can result in wind and water damage, Texas’ susceptibility to natural disasters and extreme conditions poses a considerable risk for multifamily communities. Carefully crafted property insurance policies play a crucial role in addressing potential damages and helping communities recover quickly.

•Rising Replacement Cost Valuations: For some time now, property owners and managers have watched as property insurance rates steadily increased. Now, it costs more to replace a community following a loss, too. Ongoing inflation has led to cost increases across the board, while supply chain concerns make procuring necessary replacement parts and materials difficult — while also driving up prices. Similarly, a lack of skilled labor means construction crews stretched to maximum capacity, resulting in elevated costs on that front. In response, insurers everywhere are requiring higher property policy limits.

•Evolving Legal and Regulatory Landscapes: Ever-changing laws and compliance regulations make it difficult for property owners and managers to act with certainty on decisions that impact resident safety or quality of life. Slides incorporated into outdoor pools make properties more appealing to families, for instance, but require owners to meet strict requirements to

maintain insurance coverage. Meanwhile, failure to send proper notices to residents regarding issues such as smoke detector use can result in a management company being found liable in the event of a loss.

•Tenant-Related Risks: At the end of the day, property owners and managers are overseeing communities filled with real people — people who make noise, throw parties, get into automotive accidents and more. Managing issues such as liability claims, or navigating proceedings with particularly litigious tenants, often requires extensive time and money. Comprehensive coverage is crucial to protect against potential legal actions initiated by tenants, or in resolving claims related to concerns such as bodily injury, property damage or liability risks.

Putting a Strategy in Place with the Right Support by Your Side

Understanding the potential issues property owners, managers and investment groups face is just half the battle. The best way to safeguard one’s investment and position multifamily communities for success is to enact a comprehensive risk management plan. Ideally, that plan will incorporate insurance coverage tailored to a community’s unique needs. A professional risk management firm can serve as an invaluable asset here.

By working closely with a professional firm, you have access to a team that understands the rules and regulations that govern multifamily communities, has a grasp of available coverages and their limitations, and can provide invaluable guidance in the event of a loss. They serve as an extension of

Navigating the challenges of property insurance requires a proactive and strategic approach. Texas property owners and managers must stay informed about the state's unique risks, weather patterns and regulatory environment, but they don’t have to go it alone.

your team, helping to position your business in the safest, smartest manner possible. Here are a few ways professional support can help.

•Budget-Conscious Protections for Companies with Unique Circumstances: There’s no denying that protecting communities against the unexpected is costly. In many cases, however, there are strategies your firm can implement to help you secure better rates. Master policies, which involve moving all of a company’s communities under a single policy, are a great option for larger operations. The idea is that properties located in different cities or states benefit from a good spread of risk, and the likelihood of each property experiencing a catastrophic loss is incredibly slim. Thus, a master policy can provide property owners peace of mind through both coverage and financial savings. Similarly, for companies with smaller properties, there are ways to take advantage of easing markets. Lower premiums are often available for well-maintained properties with a total insurable value of less than $10 million. In encouraging news, it’s possible such benefits might extend to properties valued at up to $20 million by this summer.

•The Ability to Shift Your Approach When Circumstances Call for it: Changing regulatory requirements, fluctuating market conditions, property purchases, sales or upgrades are just a few considerations that can impact the type and amount of coverage to best protect a community. Professional firms stay on top of changes and can leverage their knowledge and resources to update a company’s protections in ways that avoid gaps in cover-

age or legal complications that might otherwise arise when filing a claim.

•Assessments and Corrections Beyond Traditional Insurance Concerns: Risk management involves more than having proper insurance coverage. It’s a strategic approach based on factors such as a company’s unique location, amenities and way of going about daily operations. A quality risk management firm will be able to help you spot potential trouble before it becomes a full-fledged (and potentially costly) problem. Regular evaluations help pinpoint everything from walkways that present trip hazards to file storage approaches that leave you open to data breaches and property additions you overlooked factoring into your policy.

Navigating the challenges of property insurance requires a proactive and strategic approach. Texas property owners and managers must stay informed about the state's unique risks, weather patterns and regulatory environment, but they don’t have to go it alone. There are qualified teams out there to help companies craft insurance policies that address challenges head-on while creating safer, more successful communities.

Mason McEntire is a risk advisor with Brady, Chapman, Holland & Associates, an independent insurance agency specializing in risk management, business insurance and employee benefits.

On the Scene

Texas Apartment Association One Conference and Expo

Wednesday, April 24 through Friday, April 26 in San Antonio

Photos by Mark Hiebert and HAA Staff

It was FiesTAA time for TAA’s 2024 Conference and Expo! Members attended seminars during the day that included many HAA member speakers. Master of Ceremonies “The Daytripper” Chet Garner did a Q&A with keynote guest Tiffany Haddish and presented TAA’s industry awards. Congratulations to the Houston winners: Mike Clark Supplier Partner Company of the Year AAA Plumbers, Rita Kirby Regional Manager of the Year Diane Totten, Camden Property Trust, as well as Mallory Hess, Century A/C Supply, and Jacoby Racine, Camden Property Trust, two of the new TAA Be the Next Room to Grow Ambassadors. Each evening concluded with Fiesta and ‘80s Neon parties and Houston area suppliers showed the best in products and services on the Expo show floor. HAA was also proud to co-sponsor a reception with one of our chosen charities, Entryway. For more photos, visit the galleries at www.haaonline.org.

NEXT Space City Social

Sponsored by Behr Paint, Core Landscape Group and Epic Multifamily Construction

Thursday, April 18 at Bad Astronaut Brewing

HAA young professionals came in “Clutch City” at one of the newest breweries in Houston for an evening of craft beer, games, networking and prizes. For more action from the event, visit the photo galleries at www.haaonline.org.

MEET THE NEXT GENERATION OF HAA LEADERSHIP. This niche group within HAA is dedicated to the networking and professional development needs of HAA’s young professionals. Network with your peers and grow your career together among the next generation of HAA leadership! To Learn how to become involved with NEXT, see online at www.haaonline.org/next.

OWNERS

Al Castrellon

Al Castrellon 1018 Oak Summit Lane

Conroe, TX 77384-3766 (703) 944-7833

Allen Hasegawa

Allen Hasegawa 11443 Outpost Cove Drive Willis, TX 77318 (808) 940-6335

Allen Hasegawa Homes

Casa Real Apts LLC

Theresa Hebert

215 W Little York Road Houston, TX 77076 (346) 618-1165

Casa Real Apts

CS Rental Properties

Cory Gilmore 2526 Country Road 344 Brazoria, TX 77422 (979) 481-1481

CS Rental Properties - Properties

Cullum & Kelley Property

Holdings LLC

Keith Cullum 1206 Paralee Drive Katy, TX 77494-4634 (281) 851-7096

Tradewinds Apartments

Emaret Holdings LLC

Marina Serbantez 125 Circle Way St Ste 101 Lake Jackson, TX 77566-5221 (979) 529-9749

Ocean Breeze Apartments Park Place Apartments Brazoria Oaks

Redwood Communities

Chad Christian 8524 Highway 6 N Ste 156 Houston, TX 77095-2199 (281) 407-4980

Referred by Diane Gilbert, CPM

SUPPLIERS

ATSG American Towing Service

Group LLC

Moe Shariff 15807 S Alley Court Houston, TX 77082-2968 (888) 654-2874

Towing Service

BoldREMO LLC

Stanislav Turecek 2023 Riverlawn Drive Humble, TX 77339 (832) 513-5737

Remodeling & Repair-Building Contractors, General Contractors

Referred by Chris Knehr

Building Bright Houston

Freddie Veteto 945 McKinney St Houston, TX 77002 (281) 627-8398

Pressure Washing - Equipment & Service, Building Maintenance

Crossroads Insurance Recovery Advocates

Cody Vise 1080 W Sam Houston Pkwy N Ste 210 Houston, TX 77043-5014 (281) 831-4116

Adjusters, Public Adjusters

Referred by Tina Cavaco

Exalt Painting & Construction

LaFayette Hodges 13121 Louetta Road #2001 Cypress, TX 77429 (770) 363-7199

General Contractors, Painting Contractors, Drywall Contractors

FW Walton

Harley Macdonald 8350 Mosley Rd Houston, TX 77075-1181 (281) 745-0512

Roofing Contractors, Roofing Consultants, Waterproofing Contractors, Gutters & Downspouts, Sheet Metal Work

Graviti Fast EV Charging

Nicole Reichling 13255 Stafford Road #400 Missouri City, TX 77489 (855) 762-3464

Electric Vehicle-charging docks, Electrical Contractors

H&R Operator Services Inc

Ethan McFatter PO Box 178 Pearland, TX 77588-0178 281485447

Gates & Gate-Operating Devices, Electrical Gates & Doors, IronOrnamental

H-Towne & Around Remodelers Inc

JR Smith 18733 Cypress Church Road Cypress, TX 77433-1431 (281) 477-3400

General Contractors, Siding Contractors

Hidalgos Cleaning Services

Estefan Hidalgo 5527 Bear Paw Circle Katy, TX 77449 (281) 475-1325

Make Ready, Maid Services

Jem Construction & Remodeling LLC

Elvis Acosta 6220 Westpark Drive Ste#149 B205 Houston, TX 77057 (832) 581-4508

Plumbing Contractors, Plumbing Drain/Sewer Cleaning, WindowReplacement & Repair, GlassPlate & Window

Referred by Terri Clifton

JWilliams Staffing

Diana Mercado 9711 S Mason Rd Ste 125-327 Richmond, TX 77407-7169 (713) 806-5879

Personnel Agency, Temporary Personnel

Lions Floor

Warren Avery 9435 Sorensen Ave

Santa Fe Springs, CA 90670-2652 (626) 636-4273

Floor Materials, Vinyl Flooring Referred by Kristin McLaughlin, CASE

MCW Signs Inc Dba Signarama Magnolia Krystal Villanueva 331 Corporate Woods Drive #D-1 Magnolia, TX 77354 (832) 821-8714

Signs, Graphic Designers

Multifamily Access Control

Shelly Mulder 2900 Weslayan St Ste 630 Houston, TX 77027-5150 (281) 886-8500

Gates & Gate-Operating Devices

Referred by Stephanie Graves, CAPS, CAM

On Demand Inc

Stephanie Davila 5821 Southwest Freeway Houston, TX 77057 (832) 333-3000

Copy Machines & Supplies, Package Management

Planet Painting & More

Mario Quintanilla PO Box 941692 Houston, TX 77094-8692 (346) 565-4126

Painting Contractors, Janitorial Services Referred by Richard Wall

Pro-Tex Contracting Group LLC

Delmer Rubio 9950 Westpark Drive Suite 126 Houston, TX 77063 (713) 992-8137

Concrete Repair, Garage DoorsService & Parts, Welding, Painting Contractors

Repipe Specialists

Katie Martin PO Box 910 Burbank, CA 91503-0910 (818) 962-4166

Plumbing Contractors

Roof Top Innovations

Tyler Jones 311 N Sycamore St Tomball, TX 77375 (281) 351-7663

Roofing Consultants, Roofing Contractors, General Contractors, Asbestos Abatement & Removal, Claims Processing Specialists, Electrical Contractors, Disaster Recovery/Relief, Mold Inspection & Testing, Gutters & Downspouts, Fire/Water Damage Restoration, Paint, Tile Installation, Siding Contractors

Stripe Lines Inc Dba Grass Lines Inc Dan Batterson 5430 Killough St Houston, TX 77086-4012 (281) 598-0651

Mulch, Irrigation Systems & Equipment, Landscape - Lighting, Lawn Maintenance, Parking Area Maintenance & Marking Referred by Bill Frere

Three Amigos Texas LLC

Baldemar Bravo 193 Grammar Road Houston, TX 77047-6002 (281) 988-6683

General Contractors, A/C Contractors, Electrical Contractors, Plumbing Contractors, Plumbing Drain/Sewer Cleaning, Roofing Contractors

Wolf Home Products

Brian Barron 23010 Franz Road Apt 3205 Katy, TX 77449-2969 (860) 849-5458

Cabinets, Kitchen Cabinets

ALL SUPPLIER MEMBERS are listed online at www.haabuyersguide.com, searchable by product/service category or company name.

The Go-Getters

MAKE IT HAPPEN!

Join the Go-Getters to help grow your association and network by recruiting.

Valerie Lacy Cushman & Wakefield

Debra Knight Comm-Fit 2024 Chairs: Join our Quarterly Meetings!

We're giving away TWO grand prizes this year of $1,000 cash at the July and December meetings!

Every new member you recruit this year earns you a chance to be entered into a drawing to win. No purchase necessary.

Recruit one member and get one entry. Recruit five members and get FIVE entries. It’s up to you! Contact the membership department at members@haaonline.org for more details!

Meeting will be held from 4 p.m. to 6 p.m. at Cottonwood, 3422 N Shepherd Drive, Houston, TX

Honorary Life Members

Claude Arnold

Kenn Brown

Tina Cavaco

Terri Clifton

Kevin Fenn

Diane Gilbert

Anita Harrison

Dwayne Henson

Mike Koch

Merry Mount

Monette Reynolds Sherry Stevenson Kirk Tate

Suan Tinsley

Sonny Unverzagt Del Walmsley

Nancé Wells

H.P. Paul Young

Jeanne Marie Zublin Dicks

Meeting Dates: July 11 ($1,000 Drawing) September 12 December 12 ($1,000 Drawing)

Visit www.haaonline.org/gogetters for more information.

You are made for this! Get in the know with these FREE informative online orientation sessions. Learn about member benefits and how to get involved with your HAA: Join HAA and HAA Past President John Boriak for Membership 101 via Zoom 12:30 p.m. to 1:30 p.m. June 12 • September 11 • December 11

THE GO-GETTERS ARE THE BACKBONE of the Houston Apartment Association. By recruiting new members, the Go-Getter Club helps both new management and supplier companies and the association grow for the future. To join the club and get going on recruitment, see online at www.haaonline.org or contact Amanda and Kaylon in the Membership Department at members@haaonline.org.

Do you really know your applicant?

Comprehensive applicant screening tools available today can uncover financial and criminal background information. Proper screening can also reveal identity fraud issues, including stolen and fabricated identities, which may result in costly problems. Comprehensive screening using Rental Credit Reporting can also tell you who hasn’t paid rent, who has broken leases and who has received their deposit refund.

RCR provides Houston’s apartment industry with the most effective rental credit reporting tool available. RCR was established in 1977 to solve screening problems HAA founders felt plagued the local apartment industry. RCR has unsurpassed data on resident rental histories in the Houston region and gives your leasing staff immediate access to information about which prospects have fulfilled their leases and who have been residents in good standing.

The Houston Apartment Association’s Rental Credit Reporting and SafeRent Solutions have partnered to offer numerous searches in one bundled report with immediate and unlimited inquiry access.

SUPPLIERS DO GOOD

HAA’s Ambassadors, the pros at outreach to our members, proudly presents a check from their April Crawfish Boil Fundraiser to one of HAA’s chosen charities, Entryway.

Photo, far right: Ambassador chairs Tito Estrada and Karen Nelsen present Entryway with $7,000.

Photo, near right: “ONE of the Month” was Dennis Juarez, Furniture Options, with 702 points; 2nd Place was Joseph DeMoss with 591 points and 3rd place was Giovanna Gone, Century A/C Supply, with 308 points.

Mark your calendars and join us! Ambassador ONE Society meetings are held on the first Wednesday of each month: June 5, July 3, August 7, September 4, October 2, November 6, No meeting in December

The meeting spot is Kirby Ice House, 1015 Gessner Road, Houston, Texas 77055. at 3:30 p.m.

Ambassador ONE Society members with at least 10 points, ranked by points

Team photos at left, from top:

First place –Brown SugHAA with 565 points

Second place – Purple Rain with 152 points

Third place – Orange Crush with 41 points

2024 Product Service Council Your

SUPPLIER PARTNERS SERVING TO FACILITATE GROWTH AND STRENGTHEN THE INDUSTRY.

The Product Service Council is a group of active supplier members whose objectives are to promote the active involvement and participation of supplier members.

Suppliers - Do you need some guidance?

Scan the QR code below and request a mentor from our informative and helpful Product Service Council. More information about the council members can be found at www.haaonline.org/psc.

President Joseph Rodriguez, CAS Greenlogic 281-678-9259 jrodriguez@ greenlogicelectric.com

Marivel Bownds, CAS Valet Living

713-806-9830

marivel.bownds@valet living.com

Giovanna Gone, CAM, CAS Century Air Conditioning Supply 346-269-2964 ggone@centuryac.com

Tracey Moore, CAS Flooring Warehouse 281-546-2283 tracey@myflooring warehouse.com

Vice President Deborah DeRouen, CAS ClutchCity Consulting 903-277-5451 deborah@clutch cityconsulting.com

Tammy Broadway, CAS American Fire Systems 713-502-9901 tbroadway@american firesys.com

Dan James, CAS Redevelopment Services 713-501-7555 djames@redevelopmentinc.com

Karen Nelsen, CAM, CAS ALN Apartment Data 832-647-8637 knelsen@alndata.com

Secretary Blaise Spitaleri, CAS Gemstar Construction Development 713-355-9230 blaise@gemstar construction.com

Shaun Callaway, CAS Earthworks 844-425-8168 shaun@earth.works

Treasurer Nikki Sekunda, CAS The Liberty Group 832-243-8888 nikkis@theliberty group.com

Brandon Coleman, CAPS, CAS, CAM, CALP, NAAEI Faculty Chadwell Supply 832-407-4809 brandon.coleman @chadwellsupply.com

Immediate Past President Candis Mohr, CAS AAA Plumbers 832-330-3998 candismohr@ aaaplumbers.com

Neal Conant, CAS Gemstar Construction Development 281-636-2214 nealc@gemstar construction.com

Debra Knight, CAS Comm-Fit 281-250-9517 dknight@comm-fit.com Stephanie Krop, CAS Emeritus Poolsure 281-914-0274 skrop@poolsure.com

Susan Alvarado, CAS Century Air Conditioning Supply 713-857-7252 salvarado@centuryac. com

Sean Cunningham, CAS Flooring Warehouse 512-739-4748 sean@myflooring warehouse.com

Chris Bell, CAS Greenlogic 832-264-7959 cbell@greenlogic electric.com

Marcelino “Tito"” Estrada, CAS First Onsite 281-928-7399 tito.estrada@first onsite.com Amanda Kelly, CAS Brandt Electrical, AC and Roofing Services 832-921-6690 akelly@brandt electrical.com

Liz Levins, CAS Emeritus Gemstar Construction Development 832-453-1718 liz@gemstar construction.com

Jim Martensen, CAS Epic Multifamily Construction 832-484-2501 jim.martensen@ epichtx.com

Arely Pena, CAS The Liberty Group 713-357-8378 arelyp@theliberty group.com

Amber Whitaker, CAS FSI Constuction 713-690-5330 amber@fsiconstruction.com

Portfolio Changes

The following owner/management companies have added the listed properties to their portfolios:

• Allen Hasegawa: Allen Hasegawa Homes, 6 units at Various Locations

• Allied Orion Group: Memorial at Six, 297 units at 816 Addicks Howell Rd and Bellfort Pines Apts, 248 units at 8300 Canyon St

• Asset Living: Hayson Creek, 236 units at 411 Highland Cross Drive, Houston Hills Apartments, 252 units at 2331 Bammelwood Drive

• Black Stream Investing LLC: Georgian Westside Townhomes, 54 units at 12910 Ashford Point Drive

• Brighton Residential Management: Roundhill Townhomes, 134 units at 601 Cypress Station Drive

• Capstone Real Estate Services Inc: Palm Living at Vintage Park, 158 units at 10110 Charterwood Drive and The Lawndale, 160 units at 8225 Lawndale St

• Casa Real Apts LLC: Casa Real Apts, 176 units at 215 W Little York Rd

• Common Living Inc: UNITi Montrose By Common, 350 units at 701 Richmond Ave

• Creative Property Management: Galleria Apartments, 122 units at 4900 Loop Central Drive

• Cullum & Kelley Property Holdings LLC: Tradewinds Apartments, 16 units at 513 E Caney St in Wharton

• Davis Development: Mio District West, 386 units at 7222 S Peek Rd in Richmond

• DMA Property Advisors: Ella Grand, 145 units at 2077 S Gessner Rd

• Dominium Management Services: Mariposa Clear Creek, 180 units at 1427 FM 528 Rd in Webster

• Equity Real Estate Management: The Blanca, 46 units at 8217 Fulton St, The Bianca, 50 units at 7615 Grahamcrest Drive #19 and The Selena, 446 units at 250 Uvalde Rd

• Evolve Living: Cobble Creek Apts, 168 units at 920 Lawrence St in Tomball, Queenston Manor Apts, 216 units at 6700 Queenston Blvd, 2121 Ella, 121 units at 2121 Ella Blvd, Heights West End Apts, 283 units at 4040 Koehler St and Evolve Champions, 336 units at 14919 TC Jester Blvd

• Exponential Property Group: Terraces at Fall Creek, 264 units at 7800 N Sam Houston Pkwy E in Humble

• GPI Real Estate Management Corp: The Cape, 228 units at 10810 Spring Cypress Rd in Tomball

• Graywood Properties, LLC: Aria at Almeda, 153 units at 9815 Almeda Rd

• Greenline Apartment Management LLC: Riviera at Clear Lake, 289 units at 16457 El Camino Real

• Greystar: Bellrock Sawyer Yards, 327 unis at 1215 Sawyer St, Bellrock Market Station, 329 units at 24002 Colonial Pkwy in Katy, Bellrock Memorial, 352 units at 1148 Silber Rd, Bellrock Summer Street, 375 units at 3030 Summer St Houston, Broadstone EaDo, 371 units at 2424 Bell St, Sabine Street Lofts, 202 units at 150 Sabine St, Preserve at Highway 6, 320 units at 11923 State Hwy 6 in Fresno, Vivi Med Center, 327 units at 7110 Ardmore St, Flats on Tanglewilde, 256 units at 2630 Tanglewilde St, Arlo Buffalo Heights, 318 units at 225 S Heights Blvd, Alta River Oaks, 364 units at 3636 W Dallas St, Alta

Sergeant, 354 units at 650 Sgt Ed Holcomb Blvd N in Conroe and Broadstone Baybrook, 380 units at 19101 Town Ridge Ln in Webster

• Hamilton Point Investments: The Standard at Champions, 360 units at 6701 FM 1960 W

• J.H.W. Enterprises Property Management Inc: J.H.W. Enterprises Homes, 1 units at Various Locations

• Krishna Management LLC: Star Voss Apts, 810 units at 2424 S Voss Rd

• Mosaic Residential Inc: The Pines at Woodcreek, 330 units at 21021 Aldine Westfield Rd in Humble

• The NRP Group: The Parkline, 341 units at 16717 Westpark Drive

• ParaWest Management: Glen Cove, 154 units at 22720 Imperial Valley Drive

• Q10 Property Advisors: Glenwood Apartments, 60 units at 9255 W Sam Houston Pkwy S, Dover Pointe, 168 units at 14445 Wallisville Rd, Coventry Park, 128 units at 9401 Coventry Square Drive and Avenue Terrace II, 48 units at 4004 Irvington

• RPM Living: The Chelsea at Bellevue, 206 units at 11000 Crescent Moon Drive, Bellevue at Riviera, 224 units at 555 Normandy St, Bellevue at Pecan Grove, 580 units at 2400 Old South Drive, The Fairway at Bellevue, 169 units at 1111 Golfview Drive and The Veridian at Bellevue, 712 units at 695 Pineloch Drive in Webster

• SI Communities: Rock Springs Apts, 256 units at 9000 Town Park Drive

• Sisters Property Management LLC: Rudel Crossing Apartments, 28 units at 1301 Rudel Drive in Tomball

• Tarantino Properties Inc: Willow Tree Apts, 100 units at 1800 James Bowie Drive in Baytown, Hunt Garden Apts, 100 units at 800 Hunt Rd in Baytown and Falls of Meadowglen, 576 units at 9801 Meadowglen Ln

• TriArc Living LLC: Grand Bay, 238 units at 907 South Rd in Baytown

• United Apartment Group Inc (UAG): Trafalgar, 129 units at 2900 Briarhurst Drive

• Willow Bridge Property Company: The Summit At Champions, 272 units at 14365 Cornerstone Village Drive

• WinnCompanies: Sunset Gardens, 330 units at 4141 Barberry Drive

Have something to report from your company or for yourself? Email us your news at comm@haaonline.org.

Note: Properties are listed with owner/management at time of the award.

Each month, ABODE takes a closer look at winning 2023 HAA Honors Awards properties. See future ABODEs for more of our honorees.

THE BELLAGIO

Garden Style Built Between 2000 and 2015

Property of the Year

Property: The Bellagio

Owner/Management: Francis Property Management

Location: 15000 Philippine St.

Date Built: 2003

Units: 235

Web: https://bellagioapartments.com

Photos provided by The Bellagio

The Bellagio is a luxurious townhome, garden-style community located on Beltway 8 and 290. When you pull onto the property, you might notice one of the 100+ types of plants and duck friends walking around the pond. The Bellagio offers residents a variety of amenities including a 24-hour Amazon hub, fitness center, club/billiard room, resort-style pool, spa and dog playground.

Inside the apartment home you can find features such as upgraded cherrywood cabinets, granite countertops, track lighting and new fixtures with attached garages in every home.

The Bellagio team likes to stay engaged with the community. The property utilizes Facebook, Instagram and Spruce Concierge to engage residents and provide community awards. They also boast amazing customer service, from staying late if needed, to accommodate resident requests, to their award-winning Maintenance team led by Manuel Garcia Medrano, who has been with the company for over 16 years.

The property participates in the annual HAA Food Drive, winning third place for most items collected in 2022.

The property's residents describe it as a “Diamond in the Rough” and have consistently achieved high economic and physical occupancy, earning its nickname.

A/C Supplies

Century A/C Supply 13 281-530-2859 www.centuryac.com

A/C Contractors

Gemstar HVAC 43 281-821-1195 www.gemstarconstruction.com

Carpet Installation

Dixie Interiors 2 281-261-6334 www.dixieinteriors.com

Texas Southwest Floors 66 800-719-4321 www.texasswfloors.com

Collection Agencies

Alexander-Rose Associates Inc. 67 713-644-4441 www.alexanderrose-inc.com

Electric Contractors

Brandt Electrical A/C & Heating Services 29 281-693-3383 www.brandtelectrical.com

Tidal Electrical Services 41 844-277-3599 www.tidalelectricalservices.com

Foundation Repair

Church Foundation Repair 10 713-468-8400 www.churchfoundationrepair.com

Furniture - Outdoor

Texacraft 43 281-494-1541 www.texacraft.com

General Contractors

Camp Facility Services Back Cover 713-413-2267 www.campfs.com

Cotton Commercial USA Inc. 14 877-511-2962 www.cottongds.com

Epic Multifamily Construction 35 832-489-5880 www.epicmfc.com

Gemstar Construction & Development 1 281-821-1195 www.gemstarconstruction.com

Guardian Construction 51 832-672-4196 www.guardianconst.com

MultiFamily Services 5 713-266-9100

RENCON Inside Back Cover 713-666-3636 www.rencon.com

Glass – Plate, Window, Etc.

Ameristar Screen and Glass 21 713-683-6767 www.ameristarglass.com

Landscape Contractors

Texscape Services 55 281-846-3779 www.texscapeservices.com

Paint

Behr Paint 27 800-431-3000 www.homedepot/proxtra.com

Personnel Agency

ASAP Personnel 67 972-432-6667 www.asapdo.com

Plumbing Contractors

AAA Plumbers 15 713-462-4753 www.aaaplumbers.com

Property Management

Sladestone Shadow Creek 5 346-500-5552 www.sladestoneshadowcreek.com

Resident Screening Service

SafeRent Solutions Inside Front Cover 888-297-8821 www.saferentsolutions.com

Screens

Ameristar Screen and Glass 67 713-683-6767 www.ameristarglass.com

Swimming Pool Service

Poolsure 12 800-858-POOL www.poolsure.com

HAA Products & Services

Rental Credit Reporting 61 713-595-0300 www.haaonline.org/rcr

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