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THE HOUSTON APARTMENT ASSOCIATION MAGAZINE
www.haaonline.org
ABODE November 2017
n i h t g n e Str Y T I N U Comm ry weathered The multifamily indust returns, n the storm and as the su ther to rebuild. ge communities come to
We See You at ACES, the Supplier Program, Go-Getter Happy Hour, NEXT and much more!
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CONTENTS November 2017
ON THE COVER 30 Strength in Community – Houston and the multifamily industry weathered the storm and as the sun returns, communities are coming together to rebuild. This month’s issue features the stories of the heroes of Harvey and a discussion of the hard work ahead as the city and the industry rebuilds communities. Cover image © F11photo/dreamstime.com
FEATURES & PHOTOS
MONTHLY UPDATES
30 Harvey Heroes – Here are the stories of apartment professionals who were on-site during Harvey, battling the storm and comforting their residents.
7 President’s Corner – Hurricane Harvey devastated Houston, but the apartment industry came together.
38 What’s Next? – ABODE sits down with President Kyle Brown and Incoming-President Michelle Pawelek to discuss post-Harvey operations and the ripple effect on the industry. 42 A Good Time to Invest – What draws investors to real estate and apartments? 44 Seniors Living – Welcome to the New Urbanism neighborhood.
8 Patron of the Month – Meet and support Dixie Carpet Installations. 9 Legislative Update – The lessons we learned from Katrina, and more lessons from Harvey. 11 It’s The Law – More on Hurricane Harvey and the evolving issues. 14 Resident Relations – Three roommates are surprised when they receive a hefty bill at move-out.
46 On the Scene – Photos from the NEXT Professional Development Breakfast.
19 Upcoming Education – Find out what education courses offered by the Houston Apartment Foundation.
48 On the Scene – Photos from the HAA PAC Luncheon.
20 Calendar – HAA’s schedule of events for the coming months.
50 On the Scene – Photos from the Supplier Education Program.
26 NAA Update – NAA and NMHC release an apartment industry statement on the “Big 6”.
52 On the Scene – Photos from the September IROC Breakfast. 54 On the Scene – Photos from the ACES Luncheon. 58 On Site with ABODE – Take a closer look at four more of the HAA Honors Award-winning properties.
28 On the Road with HAA – See photos from the Woodlands and Lake Jackson Area Council Happy Hours. 56 Welcome Mat – Find out about the newest HAA members. 64 Go-Getters – Making membership matter at the latest Happy Hour. 68 The Ambassador ONE Society – The Ambassadors make connections. 70 Portfolio Changes and In the News – Property updates and industry news clips from our members. 74 Index of Advertisers – See the supplier members who support this publication. 75 MarketLine – The latest area market numbers. 76 BackPage – News from around the community.
We welcome your comments. Email us at comm@haaonline.org. COLUMNS &
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OFFICERS AND ASSOCIATION LEADERSHIP
JOHN BORIACK Vice President at Large
MICHELLE PAWELEK President-Elect KYLE BROWN President
JOHN FEDORKO Vice President at Large
DIANE GILBERT Vice President at Large
KELLY SCOTT Secretary/Treasurer
CLAY HICKS Vice President at Large
HOWARD BOOKSTAFF General Counsel
STARLA TURNBO Vice President at Large JEFF HALL Executive VP
BOARD OF DIRECTORS Alison Hall, Immediate Past President Josh Allen Mack Armstrong Jeff Blevins John Boriack Kyle Brown Joe Bryson Tina Cavaco Grant Crowell Scott Douglas Ian Douglas John Fedorko Paula Forshee Amy Funk Israel Garza Diane Gilbert Stephanie Graves Ira Gross Bryan Head Clay Hicks David Jones Jacob Kunath Barby Lake Laura Lestus Kristin McLaughlin Carlos Neto Dean O’Kelley Michelle Pahl Velissa Parmer Jenifer Paneral Mark Park Michelle Pawelek Jackie Rhone Christy Rodriguez Kelly Scott Kurt Seidel Kim Small Debbie Sulzer Dana Tucker Starla Turnbo Beth Van Winkle Quintina Willis Tracie Yoder DIRECTORS EMERITUS Gary Blumberg Ken Bohan Kathy Clem Jack Dinerstein
Darlene Guidry Jenard Gross David Hargrove Larry Hill Stacy Hunt Hap Hunnicutt Mike Koch Dick LaMarche Tim Myers P. David Onanian John Ridgway Eileen Subinsky Steve Sweet Kirk Tate Suan Tinsley H.J. Tollett Pat Tollett Vic Vacek Jr. Jerry Winograd ADVISORY DIRECTORS Terri Clifton Brenda Crawford Billy Griffin Cesar Lima Robert Lopes Sonia Lopez Karen Nelsen Shelley Watson Tony Whitaker GENERAL COUNSEL EMERITUS Joe Bax HONORARY LIFE MEMBERS Claude Arnold Kenn Brown Tina Cavaco 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 PRODUCT SERVICE COUNCIL OFFICERS Israel Garza, CAS, President Maintenance Supply Headquarters Grant Crowell, CAS, Vice President The Urban Foresters Jacob Kunath, CAS, Secretary Century A/C Supply Laura Lestus, CAS, Treasurer The Liberty Group Kristin McLaughlin, CASE, Immediate Past President Mohawk Industries MEMBERS Marivel Bownds, CAS, Valet Waste Dixie Caldwell-Greer, CAS, The Liberty Group Peggy Charles, CASE, Sunny Rock International LLC Dylan Coleman, CAS Camp Construction Services Deborah DeRouen, CAS, Respage Derek DeVries, CAS, Camp Construction Services Brian Febbo, CAS FSI Construction Jimmie Hotz, CASE, HD Supply Dan James, CAS Redevelopment Services Debra Knight, CAS, Valet Waste
Stephanie Krop, CASE, Buyers Access David Lindley, CAS, FSI Construction Inc. Candis Mohr, CAS, AAA Plumbers Doug Oehl, CAS Power Express PATRON MEMBERS 1980 CSC ServiceWorks 1982 Republic Services 1986 Craven Carpet 1987 For Rent Media Solutions 1994 AAA Plumbers Presto Maintenance Supply 1996 Houston Planned Energy Systems 1997 RentPath 1999 FSI Construction Inc. 2003 Dixie Carpet Installations 2009 Camp Construction Services 2013 Criterion Brock
SPONSOR MEMBERS 1968 Century A/C Supply Hoover Slovacek LLP Reliant 1973 Brady Chapman Holland & Assoc. CORT Furniture Rental 1974 Mueller Water Conditioning 1976 Great American Business Products 1977 Webb Pest Control 1978 Houston Metro Electrical Corp. The Liberty Group 1981 AmRent Marvin F. Poer & Company 1983 Namco Mfg. Co. Inc. Sherwin Williams Company 1984 RENCON 1985 Gemstar Construction Development Inc. 1986 ApartmentData.com 1988 Wallace Garcia Wilson Architects Inc. 1992 Alexander-Rose Associates Saint Clair & Sons Inc. 1998 AAA Staffing Ltd. CoreLogic Rental Property Solutions 2000 Moveforfree.com Inc. Pura Flo Corporation 2001 Apartment Life Inc. 2002 American Fire Systems Classic Touch Painting Direct Energy LP Keystone Resources Southwest Painting Contractors Inc. 2003 Sign-Ups & Banners 2005 LSR Multifamily Swain & Baldwin Insurance & Risk Management United Protective Services 2006 Bell’s Laundries CAD Restoration Services DoodyCalls Lopez Carpet Care & Painting Masonry Solutions Inc. Roto-Rooter Services Co. TXU Energy Multifamily Services Valet Living 2008 ARE Business Solutions Flavor Finish Resurfacing HARCO Insurance Services Texas Turf Management 2009 Contractors Inc. Moen Inc. Redevelopment Services Storm Maintenance & Monitoring 2010 ALN Apartment Data Inc. BAC Products Belfor Property Restoration Certified Termite and Pest Control Cotton Commercial USA FTK Construction Services 2011 DNM Contracting Inc. Fantastic Floors Greenway Environmental Services Infinite Energy Inc. Parking Management Company/PMC Towing 2012 ABC Supply Co. Inc. Accent Sign & Awning Co. Brown & Gay Engineers Cantrell McCulloch Inc. EnviroSmart Multifamily Pest Solutions Floor and Decor Giordano Construction Go-Staff Inc. Maldonado Nursery & Landscaping Inc. Nationwide Eviction Texas Concrete Professional Company
2013 ACTIV Answer by Audio Images Arbor Contract Carpet ASAP Steamers Carpet Cleaning Capitol Wrecker LLC Comcast Gambit Construction Gorman Roofing Services Outdoor Elements Pool Works LLC ProMaster Roofing & Gutter StoveTop FireStop Tidal Renovations LLC 2014 Adventure Playground Systems Inc. Chadwell Supply Classic Same Day Blinds D & G Quality Roofing J National Jonah Systems LLC MX2 Commercial Paving Pathfinder Insurance Group Perma-Pier Foundation Repair of Texas Ram Jack Foundation Solutions SisTerra Landscape Texas Apartment Pool Services The Katy Plumbing Co. Virtual Leasing Systems WCA Waste Corporation Zillow Group 2015 Admiral Linen & Uniform Service by Alsco Air Pro Systems America Outdoor Furniture American Painting & Renovations Inc. ASAP Personnel Inc. BSI Cameras Onsite CertaPro Painters Citi Fence Commercial Competitive Choice Inc. CSILED.com DeNyse Companies Division-9 Inc. Duke Sys Fix My Slab Foundation Repair Fulton Law Group PLLC Gateman Inc. Goes Heating Systems Greater Houston Pool Management H.S. Services Holder’s Pest Control Infinity Power Partners Kathy Andrews Interiors Lane Law Firm Notifii LLC Pace Mechanical Services Power Express Prestige Restoration LLC Smith Protective Service The Allshouse Group LLC Torocon Services LLC Wilsonart 2016 3'D Painting & Construction LLP 5885 Roofing & Construction Inc. Action Window Coverings Inc. Air Rescue Allied Fire Protection, LP Armadillo Professional Landscaping LLC Bath Fitter BH Fitness North America Cinch – Cabinet Refacing Kits Citi Fence & Concrete E-Systems Pest Management Inc. Ecolo Environmental Inc. Embark Services Entrust Movers Express Employment Professionals Fidus Construction Services Fun Abounds Furniture Options Green City Recycler Green City Security Green Days Lawn Care Guardian Chimney Sweep Halo Doors Inc. Hive Houston Metro Security JLL Johnstone Supply Kastle Systems KONE Leah McVeigh Design and Consulting Liquid Waste Solutions Manning Pool Service McCann Total Security Solutions Murrah & Killough PLLC Murray Insurance & Financial
O'Conor, Mason & Bone PC Paul Davis Restoration North Houston Pet and Playground Products Platinum Enterprises LLC Progressive 1 Roofing & Construction Quantum Fitness Ram Construction RoofTec Ross Fried Consulting Sparkle Wash Pressure Washing Sustain-Ability Solutions Texan Glass & Solar Control Texas Southwest Floors The Home Depot The Perfect Light The PI Company ValencePM VMI Premier Group LLC WASH Multifamily Laundry Systems WellKept Whitmans Contracting and Roofing 2017 911 Security Cameras Inc. Abilities Unlimited Inc ACT Security Group Advanced Property Services All About Doody Pet Soutions LLC All American Mailboxes of Houston Inc. Allegion American Fire Protection Group Apartment Total Services Aquatic Training Institute BioTechs Crime & Trauma Scene Cleaning South Houston Brooklet Energy Distribution Buddy's Roofing & Construction Co. Byte Time Computing Cano Electric Inc. City Supply Co. Inc. Classic Towing Continental Adjusters CoreServ LLC Creative Surface Cypress Landscaping & Irrigation Inc. D&C Painting Designs by Holmes Disaster America Eagle Restore, LLC Energy Ogre Ernie Smith and Sons Roofing LLC Fast Forward Services, Finishes Etc LLC Flooring4.Us Frost Insurance Agency Gage Multifamily Services Genesis Panel Systems, Gravely & Pearson LLP Griddy Energy H Town Movers and HVAC Services Henley & Henley PC HousingManager.com Houston SEAL Patrol Division LLC Lithotech Printed Products/Forms Center Maven Auto Detailing McMahan's Flooring Inc. Media Nation Outdoor MPS Direct Norman Construction NorthMarq Capital On Site Towing LLC Pack-It Movers Paragon Roofing Inc. Paul Ryan Windows POPIC Quick Relief Restoration Re-Mark Technologies Group LLC Reliable Fire Protection Rent Accelerator Richmond Equipment Roof Top Innovations Rutherford Services Inc SEAL Security Solutions Secure Insurance Securecomm Inc Special Touch Landscaping State Sign - A Comet Signs Company Student Movers Inc. Swiff-Train Company Symmons Industries TD Waterproofing Inc. Texas Crime Prevention Agency Texas Engineered Roofing & General Contracting Texas Eviction LLC USA Patrol Division WBI General Contractor Willbanks & Associates
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ABODE NOVEMBER 2017 I VOLUME 40, ISSUE 11 Executive Vice President and Publisher
JEFF HALL, CAE jhall@haaonline.org EDITORIAL AND DESIGN STAFF
Director of Publications and Design DEBORAH NIX dnix@haaonline.org Writer/Editor MORGAN TAYLOR mtaylor@haaonline.org ADVERTISING
Vice President of Membership and Marketing AMANDA SHERBONDY asherbondy@haaonline.org CONTRIBUTING STAFF
Vice President and General Manager SUSAN HINKLEY, CAE shinkley@haaonline.org Vice President of Professional Development EMILY HILTON, CPP ehilton@haaonline.org Vice President of Public Affairs ANDY TEAS, CAE ateas@haaonline.org Vice President of Finance NANCY LI LO, CPA nlo@haaonline.org Director of Information Technology ART EIDMAN aeidman@haaonline.org Director of Resident Relations MATILDE LUNA mluna@haaonline.org Director of Events and Meetings EMILY BANNWARTH, CMP ebannwarth@haaonline.org Director of Rental Credit Reporting TINA DEFIORE tdefiore@haaonline.org Education and Meetings Coordinator KAREN MITCHELL kmitchell@haaonline.org Strategic Growth Manager LAUREN TURNER, CMP lturner@haaonline.org Membership and Marketing Coordinator LAUREN WOLFSON lwolfson@haaonline.org Public Affairs Specialist ALPA PATEL apatel@haaonline.org Webmaster and IT Specialist WILL ALFARO walfaro@haaonline.org PRINTER
TGI PRINTED www.tgiprinted.com HOUSTON COMMITTEE Executive Program & Budget Nominating Ethics Investment Fair Housing By-Laws Past Presidents Council Strategic Growth Legislative PAC Fundraising HAA Better Government Fund Century Club Multifamily Fire Safety Alliance Media Relations Golf Developers Leadership Development Product Service Council Community Outreach Resident Relations Appeals Resident Relations A Resident Relations B Membership Ambassador ONE Society 2017 Expo IROC Education Advisory Council Career/Community Development NEXT HAF Fundraiser Property Awards HAA Street Team
APARTMENT ASSOCIATION COMMITTEES CHAIR STAFF ADVISOR KYLE BROWN JEFF HALL MICHELLE PAWELEK JEFF HALL ALISON HALL JEFF HALL EILEEN SUBINSKY JEFF HALL KELLY SCOTT JEFF HALL BRYAN HEAD JEFF HALL KIM SMALL JEFF HALL JENIFER PANERAL JEFF HALL KELLY SCOTT LAUREN TURNER MICHELLE PAWELEK ANDY TEAS JERRY WINOGRAD ANDY TEAS STACY HUNT/JOHN RIDGWAY ANDY TEAS LAURA LESTUS ANDY TEAS JOHN FEDORKO ANDY TEAS JOHN FEDORKO ANDY TEAS CLAY HICKS ANDY TEAS CYRUS BAHRAMI ANDY TEAS MACK ARMSTRONG SUSAN HINKLEY IZZY GARZA SUSAN HINKLEY JOHN BORIACK SUSAN HINKLEY DARLENE GUIDRY MATILDE LUNA HEATHER LACLAIRE MATILDE LUNA KARI CARGLE MATILDE LUNA CLAY HICKS AMANDA SHERBONDY DEBORAH DEROUEN/DEREK DEVRIES AMANDA SHERBONDY GRANT CROWELL AMANDA SHERBONDY STEPHANIE BRYSON EMILY HILTON STARLA TURNBO EMILY HILTON DIANE GILBERT EMILY HILTON LINDSAY TORRES/DAVID LINDLEY EMILY HILTON SUSAN WELLS/ARRIE COLCA EMILY BANNWARTH DAVID JONES/STEPHANIE GRAVES TINA DEFIORE CARINA BRYARS LAUREN WOLFSON
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.
Visit HAA Online at www.haaonline.org 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, NOVEMBER 2017 VOLUME 40, ISSUE 11 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 © 2017 by HAA. Periodicals Postage Paid at Houston, Texas. POSTMASTER: Send address changes to ABODE, 4810 Westway Park Blvd., Houston, Texas 77041.
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Who are your new leaders?
HAA Annual Business Meeting Thursday, November 16 6 p.m. to 8:30 p.m. JW Marriott 5150 Westheimer Road, Houston, TX 77056 Cost: $45 (before November 10); $65 (after November 10) $450 for a table of 10 (before November 10); $650 (after November 10) Reserved tables of 10 with company name are available when paid in full by one company.
Reception and Seated Dinner
Join us as we elect our leadership for 2018 and celebrate the achievements of 2017. Nomination and Election of 2018 Officers and Board of Directors Recognition of 2017 Committee Members Recognition of 2017 NAA Designates Presentation of 2017 Appreciation Awards
Sponsored by Gemstar Construction Development Inc. and TPI Construction & Painting Inc. Requests for refunds must be received in writing by end of business day on November 10, and will be subject to a $50 cancellation fee. No refunds will be granted after November 10 or for no shows. No refunds will be given for individual tickets, but tickets are fully transferrable. For reservations and information, contact the Meetings and Events Department at 713-595-0323, email events@haaonline.org or online at www.haaonline.org.
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President’s Corner By KYLE BROWN, CPM, 2017 HAA President
AFTER HARVEY
Hurricane Harvey devastated Houston, but the apartment industry came together HOUSING IS SO much more than just housing in Houston. We care for our residents and we put them first during tragic times. When the storm passed, HAA and its members began working with local organizations, along with TAA and NAA, to assist displaced residents. The Way Home, under the leadership of the Houston Coalition for the Homeless, created a disaster recovery shelter transition housing program. If you are interested in offering housing for Harvey victims, please visit www.thewayhome houston.abilafundraisingonline.com/housing forharveysignup092017. The program comes with guaranteed, six-month rental assistance. For more information, see www.haaonline.org. Raising Much Needed Funds and Goods The nation has watched as Houston has come together during this tough time to rebuild and support one another. Here at HAA, that sense of community is no different. At press time, the association has donated $10,000 to the Houston Chapter of the American Red Cross and $50,000 to Mayor Sylvester Turner’s Hurricane Harvey Relief Fund. Also, thanks to our generous members, HAA has raised another $18,350 for the Hurricane Harvey Relief Fund
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and we anticipate that number to keep rising. Thank you to Robert Martinez of Rockstar Capital Management, Carlos Neto of Auburn Regal, Jim Baker of Lone Star Recreation, Apartment List, Tracy Watson of RentPath, Verve Assets and the many more for your donations. See Page 26 on how you can contribute. Thanks to Hatching Hope of Alabama, who sent supplies which were collected and sorted by Chadwell Supplies and HAA volunteers. The HAA Ambassador ONE Society collected cleaning goods, hygiene supplies and children’s rain boots for Memorial Assistance Ministries. More Information To support our management companies and property owners, we have provided our members with as much information as we can. A list of initial questions regarding lease terminations, security deposits, uninhabitable units and more was published in our October magazine and www.haaonline.org. This month, HAA General Counsel Howard Bookstaff answers more questions that have come up as properties are undergoing demolition and rebuild starting on Page 11. HAA Vice President of Public Affairs Andy Teas dives into the
conversation no one wants to talk about – mold, starting on Page 9. Houston management companies, property managers and independent owners were hard at work relocating their residents whose apartment homes were inundated by the storm and flooding. Starting on Page 30 are the stories of apartment professionals who far exceeded their everyday duties to make sure their residents were safe during this historical natural disaster. Myself and Incoming President Michelle Pawelek share our experiences on post-Harvey business operations, starting on Page 38. HAA will continue to support the apartment industry and residents as best it can as we recover from Harvey. Let Us Know Your Good Works In December, ABODE will recap the good works of our members throughout the year, including disaster recovery. We know our members volunteered to help their community and we want to showcase that generosity. Even if it is as simple as a pizza lunch for residents after the storm, we want to hear about it. Please send content and/or photos of any community service participation to comm@haaonline.org.
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These companies have generously supported the Houston Apartment Association with their patron membership. Please give them careful consideration, whenever possible, in your business.
Houston Planned Energy Systems
For Rent Media Solutions
HAA Member since 1978
HAA Member since 1987
Republic Services
Criterion Brock
HAA Member since 1982
HAA Member since 1985
Presto Maintenance Supply
AAA Plumbers
HAA Member since 1983
HAA Member since 1984
CSC ServiceWorks
FSI Construction Inc.
HAA Member since 1961
HAA Member since 1999
Craven Carpet
Dixie Carpet Installations
HAA Member since 1986
HAA Member since 1987
Camp Construction Services
RentPath
HAA Member since 1994
HAA Member since 1979
November Patron of the Month
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Legislative Update
By MICHELLE PAWELEK, CPM, CAPS, HAA Legislative Chair, with ANDY TEAS, CAE, Vice President of Public Affairs
LESSONS FROM A HURRICANE
The lessons we learned from Katrina, and more lessons from Harvey. IN NO PARTICULAR order, here are some notes from the apartment industry’s experience with hurricanes, past and present. Permits for Sheetrock – A wall between units is a “fire-rated assembly” – meaning, you have to pull a building permit from your local city government to replace sheetrock. One local government, trying to be helpful, briefly waived this requirement after Harvey only to find that building owners couldn’t get insurance reimbursements without showing the work they did was legally permitted. Arc-Fault Interrupters – An arc-fault circuit interrupter is a type of circuit breaker that trips when it detects an electric arc, and it’s designed to prevent a leading cause of fires. They’ve been required at every “outlet” (basically, anywhere electricity connects to anything) in new construction and rehab since 2003. Initially, the City of Houston said you did not have to add these when replacing electrical wiring behind a pre-2003 flood-damaged wall. They quickly corrected themselves and confirmed that you do. This costs around $30 per outlet. “Totally Unusable” – As we all know, Texas law allows either party to terminate a lease on a unit that is “totally unusable” from a natural disaster. We will never have a precise definition of this term, but it’s always better to err on the side of declaring it unusable, rather than trying to insist that a resident remain in a unit in questionable condition. Lease Termination – When you terminate a lease on a family’s destroyed apartment unit, the media will say you “evicted” them. We have tried (and tried…and tried…) to correct this in dozens of contacts with reporters. Residents’ Belongings – Every manager with a flooded property has heartbreaking stories of dealing with residents’ belongings. That water-soaked couch has to be removed from that unit so you can pull the carpet and pad to begin repairs. That water-soaked couch is also www.haaonline.org
the one thing that resident still has that belonged to their grandmother and it’s now sitting in your parking lot next to a pile of flood debris. There is no good solution for this, except to keep in mind that what might be nasty flood debris to you is someone else’s treasured possessions and try to be as sensitive as you can. Housing for Evacuees – The apartment industry’s housing program for Katrina evacuees in 2005 was a huge, noble experiment, and very messy. We learned that good intentions aren’t nearly enough. We learned that precise accounting systems need to be in place to pay rent promptly. We learned that utilities need to be paid for. We learned the government doesn’t always understand the difference between a hotel room and an unfurnished apartment. Under Houston Housing Director Tom McCasland’s leadership, the post-Harvey program is well organized, with utilities accounted for, a “move-in kit” including basic furniture, kitchen supplies and food, and ongoing case management for families planned from the beginning. Housing for Homeowners – Hurricane Harvey flooded thousands of Houston-area single-family homes. Many homeowners need apartments to live in temporarily, and many aren’t clear on the concept of a fixed-term lease agreement. Second Wave – Many families need to relocate immediately after a natural disaster, and they’ll move directly from their flooded house or apartment to your property. Watch for another surge, though. This may come later – when hotel vouchers and relatives’ patience start to run out. When the first wave of leasing eases up, you may not be done. Elevators – Houston’s apartment industry is historically a garden-style, two or three-story stairs-only industry. Increasingly, though, we are owning and managing mid-rise and highrise properties. Harvey knocked thousands of elevators out of commission and identified some serious safety concerns. Expect a new
code provision requiring elevators to be retrofitted with water-sensing devices to prevent them from descending to a flooded level in the event another storm and/or flood occurs. Swimming Pools – Floodwater is beyond nasty. Bringing a swimming pool back into service after a flood requires special vigilance and attention to sanitation and chemical balance. If you need to shock your pool with calcium hypochlorite-based shock, just buy what you need or have your swimming pool professional bring what they use. Storing that on site requires a special hazardous chemical permit you probably can’t get. Mold – Mold happens after a flood. Texas Governor Greg Abbott quickly suspended the requirement that mold be handled by licensed remediators to help building owners deal with the problem as quickly as possible. Still, you face potential liability if it isn’t handled right. How to deal with mold is a separate magazine article, but remember that even if you don’t need a remediator, that doesn’t mean you shouldn’t follow proper protocol. Recovery is Expensive – The Houston region is seriously contemplating more than $100 billion in infrastructure projects as a result of Hurricane Harvey – including the construction of a new reservoir in Northwest Harris County. Some of this funding will be federal, but there will be no way to do all of this without local funding. Remember that the Harris County Flood Control District’s property tax rate is less than 3 cents per $100 valuation. To compare, the Houston Independent School District’s rate is more than $1.20. Human Nature – Natural disasters cause tremendous stress, but they always seem to bring out the best in most people. When a resident, an employee or another driver merging into your lane is on your last nerve, try to remember all the wonderful things people did to help each other during this difficult time.
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It’s the Law
By HOWARD BOOKSTAFF, Hoover Slovacek LLP , HAA General Counsel
HARVEY CONTINUED More on Hurricane Harvey and the evolving issues.
HARVEY CONTINUES TO be a name on everyone’s mind. As we move through the recovery process, a number of issues have developed. Last month, we responded to questions regarding lease termination, rent abatement, power outage issues, price gouging, repair requests and transferring residents. As we have been working through these issues, other issues have evolved. Let’s take a look at some of the more recent topics of discussion. Can I still terminate leases because of the storm/flooding? As previously reported, your right to terminate leases is pursuant to statute and the lease. Section 92.054(b) of the Texas Property Code provides, if after a casualty loss the premises are, as a practical matter, totally unusable for residential purposes, either the owner or the resident may terminate the lease by giving written notice to the other at any time before repairs are completed. Consequently, as long as the repairs have not yet been completed, either party may exercise their right to terminate the lease. Section 26.5 of the TAA lease provides that if the owner believes catastrophic damage is substantial or that performance of needed repairs poses a danger to the resident, the owner may terminate the lease by giving the resident at least five days written notice. There may be circumstances where you did not terminate the lease initially after the storm, but, after inspection, you came to realize that the unit needs more work than you thought. If the units are not habitable or need repairs that pose a danger to the resident, the owner still has the right to terminate the lease by giving the appropriate notice. If it has been determined that a notice to terminate is to be given, it would be beneficial to explain why the lease is being terminated 30 to 45 days after the storm. www.haaonline.org
Am I restricted from Last month, we responded to questions regarding raising my rents if I am lease termination, rent abatement, power outage ishousing residents from flooded apartments sues, price gouging, repair requests and transferring and homes? residents. As we have been working through these Yes, but be careful. As disissues, other issues have evolved. Let’s take a look at cussed in last month’s article, some of the more recent topics of discussion. the Texas Deceptive Trade Practices Act provides it is a deceptive practice to take advantage of a disaster declared by the governor by: (a) selling or leasing fuel, food, What do I do with a resident’s personal medicine, or another necessity at an exorbiproperty left in an uninhabitable unit? tant or excessive price; or (b) demanding an Generally, you do not have the right to reexorbitant or excessive price in connection move the personal property of a resident unwith the sale or lease of fuel, food, medicine, less you legally retook possession of the unit. or another necessity. However, if the lease was terminated purTexas Governor Greg Abbott issued a disassuant to section 26.5 of the standard lease, ter proclamation on Aug. 23, certifying that this section provides that you may remove Hurricane Harvey posed a threat of immipersonal property if it causes a health or nent disaster for a number of counties insafety hazard. cluding Harris County and the surrounding In order to regain possession of a unit, you counties. Although the Texas Government basically have three options: (A) surrender Code provides that a state of disaster may not pursuant to section 41.2 of the lease; (B) continue for more than 30 days unless reabandonment pursuant to section 41.3 of the newed by the governor, on Sept. 20, Gov. Ablease; or (C) eviction pursuant to the lease bott renewed the disaster proclamation. and Texas law. In connection with Hurricane Ike, the court Section 41.2 (surrender) and section 41.3 construed “exorbitant or excessive prices” (abandonment) should be reviewed to deterduring a disaster to be a rate for a good or mine whether the elements of either are service in excess of 10 percent of the “average present under the circumstances. If not, the price.” The “average price” was defined by the more cautious approach is to pursue the court as the average price charged for a good eviction process and get judicial blessing on or service over a two-month period prior to retaking possession. the declaration of the disaster. If you are adjusting your prices because Can I make deductions from a security the market has changed, you need to be caredeposit if the lease was terminated due ful not to charge what might be considered to the storm/flooding? an exorbitant or excessive price, which will If the lease was terminated pursuant to be determined when measured against presection 26.5, the owner is required to refund Harvey rates. Be careful to document how prorated rent and all deposits, less lawful deyou arrived at your adjusted rate. ductions. If the lease was terminated under section 92.054(b), the resident is entitled to a pro rata refund of rent from the date the resiNovember 2017
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Can I allow a resident to stay in a unit that I have considered to be uninhabitable? Once you have exercised your right to terminate the lease under section 26.5, you have taken the position that you believe that catastrophic damage is substantial or that performance of needed repairs poses a danger to the resident. The resident would be required to leave after the termination date or be considered as a holdover resident. If the lease is terminated because the unit is not habitable, it’s probably not a good idea to allow the resident to stay. If the resident wants to continue living in the unit after the work is completed, you might consider entering into an agreement whereby the resident would temporarily vacate until the work is completed. By agreement, the resident and the owner can agree to amend the lease, temporarily abate rent and have the resident reoccupy the unit once the unit is ready.
If the lease is terminated because the unit is not habitable, it’s probably not a good idea to allow the resident to stay. If the resident wants to continue living in the unit after the work is completed, you might consider entering into an agreement whereby the resident would temporarily vacate until the work is completed. By agreement, the resident and the owner can agree to amend the lease, temporarily abate rent and have the resident reoccupy the unit once the unit is ready.
dent moves out and to a refund of any security deposit otherwise required by law. Section 92.104(a) provides that before returning a security deposit, the owner may deduct from the deposit damages and charges for which the resident is legally liable under the lease as a result of breaching the lease. While the resident is not responsible for any damages or charges resulting from the storm/flooding, if the resident owes rent or charges unrelated to Harvey, the owner can deduct those damages and charges from the deposit.
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Do I need a licensed mold remediator to perform restoration work? No, not now. The governor has waived various rules and regulations relating to a number of issues in light of the disaster. Licensure requirements for unlicensed and out-of-state mold remediation companies have been waived for the duration of the governor’s disaster declaration. In lieu of licensure, unlicensed companies wishing to do work under the disaster declaration can do so if they register with the Texas Department of State Health Services and provide certain documentation. No fee is assessed. Registration can be done via email. Companies wanting to register can do so by sending the following information to mold.reg@dshs.texas.gov. 1. Business name, owner’s name and 24/7 contact number; 2. Proof of business registration in another state or a Texas Secretary of State tax ID number; 3. A list of employees working in the impacted area; 4. Verification of training for all employees; and / See Law, Page 67
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Resident Relations from the RESIDENT RELATIONS COMMITTEE
THREE’S COMPANY
Three roommates are surprised when they receive a hefty bill at move-out. A RESIDENT FILED a complaint with HAA to dispute charges. The resident felt that he and his two roommates were gouged on move-out fees and claimed they moved out on Feb. 28. In his complaint, he claimed the management company removed his belongings from their apartment home and placed the items on the patio in white trash bags. Management responded to HAA and that response was forwarded to the resident. Management felt the resident was charged accordingly. Enclosed were copies of the lease, the three applications, the lease renewal contract, move-in condition form, the residents’ notice of intent to move out and final account statement. Pictures were also provided. Management provided that the three resi-
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dents did not move out of the unit until March 14. Management was able to verify they did not remove any belongings by providing verification that their supplier partners use black trash bags. Despite this, the management company did their due diligence by contacting each supplier partner who entered the unit to determine if any items were removed from the unit. Management even reached out to the resident who filed the complaint and offered to set up a meeting with them and their supplier partners to get to the bottom of this issue. Management never received a response from the resident. Management charged the resident and his roommates for the damages to the unit, the additional rent and their remaining balance,
which included a missed rent payment in February by one of the roommates. The committee decided in favor of management. Charges were justified. The residents owe the property $2,562.91. The resident may wish to pursue this complaint in small claims court. If you are a manager with a resident issue, call HAA at 713-595-0300 for direct assistance. Renters can be referred to HAA by calling 713-595-0300 to speak to a trained consultant Wednesdays from 9 a.m. to 1 p.m., and Thursdays and Fridays from 9 a.m. to 1 p.m. and 2 p.m. to 4 p.m. Residents can also be directed online to Www.haaonline.org/renters.
www.haaonline.org
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Join the HAA Food Drive for people and pets and help victims of Hurricane Harvey
HAA is asking all members to collect food, for both people and pets, to donate to the Houston Food Bank and The Rescue Bank. The collection drive is during the month of November. Food should be dropped off by Wednesday, December 6. HAA would like to challenge Regional Property Managers/Supervisors to lead the way. Can your portfolio collect the most food? The regional/supervisor who has the portfolio with the most donated items will win a three night stay in a luxury beachhouse in Freeport on Treasure Island. Prizes will also be awarded to the top three properties who collect the most. Are you game? If so please contact Susan Hinkley at 713-595-0313 or shinkley@haaonline.org to sign up.
Steps for Collecting: • Identify central and highly visible areas, and designate them as your official display/food collection locations. • Decorate a display/food collection area and a food box to draw attention to collecting and to make it more fun. 1st, 2nd, 3rd prizes will be given to the property with the best decorated display. • Place a flyer at each resident's door or in your newsletter or place a flyer in the mailbox area to announce you will be collecting food during November and where to donate. For more ideas and a list of most needed items, follow this link www.houstonfoodbank.org/donate/food-and-fund-drive-kit/ • Drop off all donations no later than December 6 to either Camp Construction, 15139 S. Post Oak Road, 77053 or Cotton Commercial, 3600 Brittmoore Road, Suite #190, 77043 Last year HAA members and residents collected 24,000 pounds of food. Please contact Susan Hinkley at 713-595-0313 or shinkley@haaonline.org to participate.
HOUSTON
STRONG FOOD
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DRIVE
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Tuesday, November 28
Breakfast and Registration: 8:30 a.m. to 9 a.m. Program: 9 a.m. to Noon Fee: $89. Worth three CE credits for all NAA credential holders. Register online at www.haaonline.org. Sponsored by FSI Construction and The Liberty Group
Join Anne Sadovsky, CAM, CAPS, CSP, and learn the answers to your Fair Housing questions, such as: • Do we now have to rent to criminals? • Do I have to print all my documents in different languages? • Who is responsible for translating if the prospective resident doesn’t speak English? • Can I evict a resident who keeps calling 911 because of her ex-spouse? • My boss says we need to stop writing with black ink. Is that true? • We have so many handicapped parking spaces that others can’t find a place to park? Is there a limit? • A resident has a new puppy and when questioned says that it is her emotional support animal. I think that isn’t true. What can I do? • A prospect has a parrot and claims that it is a service animal. Can a bird do that? • An applicant has a certificate saying his kitten is a service animal. The document looks fake to us. How should we handle it? • We have discovered a hoarder on our property. When we approached her, she cried and said she could not part with her treasures. Her neighbors report bad smells from her apartment. What should we do? • Residents are complaining about the smell of marijuana smoke coming one particular apartment. We have asked the pot smoker about it and he denies it. What should we do? • The maintenance tech found a marijuana plant growing in a resident’s apartment. It’s just one little plant. Can we just ignore it? • A female resident says that one of our employees patted her on bottom. He says they always hug when they say hello and she usually initiates the hug. Do we have a problem? Anne will answer your questions and may make you question your own answers!
Pot, Pit Bulls, Parrots, Parking and Perps –
Today’s s l l a f t i P in Fair Housing
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Upcoming Education
From the HAA EDUCATION DEPARTMENT
NOVEMBER APPLE: Maintenance Session 3 – Be Prepared: Total Property Winterization Thursday, November 2 9 a.m. to noon Program fee: $50 Sponsored by Hire Priority Staffing & Executive Search See Page 22 for details. IROC Breakfast Friday, November 3 7:30 a.m. to 10 a.m. Program fee: $25 per non-member Sponsored by Brandt Electrical Services The Independent Rental Owners' Connection (IROC) offers customized education and networking programs just for you! Whether you're a brand-new apartment community owner, or have been a part of the industry for many years, we encourage you to network within your fellow independent owners. Extreme CAM (5 days) Monday, November 13 through Friday, November 17 8:30 a.m. to 5 p.m. Program fee: $1,050 Sponsored by Apartments.com, Blackmon Mooring/BMS CAT, Brook Furniture Rental, Hoffer Furniture Rental & Sales, Rasa Floors, Texas Apartment Pool Services, Texas Southwest
Floors, Texscape Services, The Lane Law Firm and Valet Living A super-charged and accelerated five-day format, EXTREME CAM is designed for those experienced managers hoping to attain the CAM designation in a shorter duration, with less time away from the property. Scheduled for November 13th -17th from 8:30 a.m. to 5 p.m. each day. Exams are held in December. Due to shipping constraints, registrations received within one week of the course cannot be guaranteed course materials at the time of class. Extreme CAS Monday, November 13 11 a.m. to 5 p.m. Program fee: $625 Extreme CAS candidates attend four of the CAM modules beginning on November 13. Required modules are: The Resident Experience, Legal, Financial Management, Risk Management and Supplier Success. See www.haaonline.org for more details. CAMT HVAC Maintenance & Repair (2 days) Tuesday, November 14 and Wednesday, November 15 8:30 a.m. to 5 p.m. Program fee: $165 as a standalone course; $795/program
Sponsored by Blackmon Mooring/BMS CAT The heating, ventilation and air conditioning maintenance and repair course teaches students how various heating and air conditioning systems work, as well as how to maintain and repair these systems. Topics include: air conditioning safety key air conditioning tools, refrigerants and their special properties, the air conditioning system, simple fixes, refrigeration cycle repairs, electrical system repairs, air distribution system repairs, unit replacement, and SEER 13. CAMT Appliances Maintenance & Repair (2 days) Thursday, November 16 and Friday November 17 8:30 a.m. to 5 p.m. Program fee: $165 as a standalone course; $795 for the program Sponsored by Presto Maintenance Supply The Appliances Maintenance and Repair course teaches students how to install, diagnose and repair the key appliances that they will encounter on the job. Annual Fair Housing Seminar Tuesday, November 28 8:30 a.m. – Registration and breakfast
9 a.m. to noon – program Program fee: $89 if pre-paid with credit card $99 if invoice/at the door Sponsored by FSI Construction and The Liberty Group See Page 18 for details. Leasing 101 (Day and a half) Wednesday, November 29 8:30 a.m. to 4 p.m. Program fee: $65 prior to November 29; $75 An in-depth introduction to the apartment industry for new leasing professionals as well as those individuals looking to learn more about the industry as a career. This day and a half program topics includes: greeting and qualifying the customer, executing the lease contract, overcoming objections and closing techniques, an overview of Fair Housing and more. Students who complete the course will receive a certificate, as well as a listing of placement agencies and management companies that are members of HAA. If you are not working for a member company of HAA download this registration form: http://www.haaonline.org/images /programs/pdf/leasing101_ 2017.pdf.
/ See Education, Page 72
No credit card or HAA login? No problem! We do not accept registrations over the phone. However, if you do not have access to a credit card, just use our “Express Registration” page (no login required) at www.haaonline.org/expressregistration. This simple form generates an email to us with your registration request. This is a binding transaction, and all cancellation policies still apply. NOTE: For your own individual HAA login ID and password, please email us at ebreg@haaonline.org.
SCHEDULE AND FEES
are subject to change without prior notification. Notice of cancellation is required two days in advance to receive a refund, less a $15 administrative fee. Seats are guaranteed on a first-come, first-served basis when payment and registration are received in advance of the program. Unless otherwise indicated, courses are held in either the Camden and Michael Stevens Interests Room or the Direct Energy and Liberty Personnel & Executive Search Room at the Dinerstein Reed Prokop Education Center, 4810 Westway Park Blvd. on the second floor of the HAA Office www.haaonline.org
Building. Seating is limited. You must pre-register. For more information and to register, go online at www.haaonline.org. Notice to Attendees: All pre-registered no-shows will be billed. For admittance into HAA/HAF events, payments will be required at the door if not received prior to the event. Start times listed above include a 30-minute registration period. Notice of cancellation is required two days prior to the event for a refund, less a $15 administrative fee. November 2017
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NOVEMBER S M T W 1 5 6 7 8 12 13 14 15 19 20 21 22 26 27 28 29
Calendar HAA Education, Events and Meetings SCHEDULE
T 2 9 16 23 30
F 3 10 17 24
S 4 11 18 25
DECEMBER S M T W T 3 4 5 6 7 10 11 12 13 14 17 18 19 20 21 24 25 26 27 28 31
F 1 8 15 22 29
S 2 9 16 23 30
NOVEMBER 1
7
13-17
16
New Supplier Member Orientation Wednesday, November 1 3 p.m. Sherlock’s Baker St. Pub 10001 Westheimer, 77042 All new supplier members welcome. Contact Amanda at asherbondy@haaonline.org for details.
Area Council: Webster Tuesday November, 7 11:30 a.m. to 1 p.m. Location: TBD Contact Lauren Turner at lturner@haaonline.org for details.
Extreme CAM (5 days) Monday, November 13 through Friday, November 17 8:30 a.m. to 5 p.m. Sponsored by Apartments.com, Blackmon Mooring/BMS CAT, Brook Furniture Rental, Hoffer Furniture Rental & Sales, Rasa Floors, Texas Apartment Pool Services, Texas Southwest Floors, Texscape Services, The Lane Law Firm and Valet Living
Blue Star Thursday, November 16 7:30 a.m. to 4:30 p.m. Tracy Gee Community Center 3599 Westcenter Drive, 77042 Contact Alpa at apatel@haaonline.org for more information.
Ambassador ONE Society Meeting Wednesday, November 1 4 p.m. to 5:30 p.m. Sherlock’s Baker St. Pub 10001 Westheimer, 77042 Contact Amanda at asherbondy@haaonline.org for details.
2 APPLE: Maintenance Session 3 – Be Prepared – Total Property Winterization with Don Willard Thursday, November 2 9 a.m. to noon Program fee: $50 Sponsored by Hire Priority Staffing & Executive Search
3 IROC Breakfast Friday, November 3 7:30 a.m. to 10 a.m. Sponsored by Brandt Electrical A/C and Heating Services
6 NAA Assembly of Delegates Monday, November 6 through Thursday, November 9 Fort Worth, Texas
8 Resident Relations Committee B Wednesday, November 8 2 p.m. Richmond/Rosenberg Fair Housing Seminar Wednesday, November 8 8:30 a.m. to noon Springhill Suites by Marriott Rosenberg 6815 Reading Road, 77469 Join Howard Bookstaff for a refresher course in Fair Housing. Contact Lauren Turner at lturner@haaonline.org for details.
9 Montgomery County Justices of the Peace and Constables Holiday Party Thursday, November 9 11 a.m. to 1:30 p.m. Contact Lauren Turner at lturner@haaonline.org for more information.
13 Extreme CAS Monday, November 13 11 a.m. to 5 p.m.
14-15 CAMT HVAC Maintenance & Repair (2 days) Tuesday, November 14 and Wednesday, November 15 8:30 a.m. to 5 p.m. Sponsored by Blackmon Mooring/BMS CAT
16-17 CAMT Appliances Maintenance & Repair (2 days) Thursday, November 16 and Friday November 17 8:30 a.m. to 5 p.m. Sponsored by Presto Maintenance Supply
Board Meeting Thursday, November 16 4:30 to 6 p.m. JW Marriott Houston 5150 Westheimer Road, 77056 Sponsored by Texscape Services Annual Business Meeting Thursday, November 16 6 p.m. to 8:30 p.m. JW Marriott Houston 5150 Westheimer Road, 77056 Sponsored by Gemstar Construction Development and TPI Construction & Painting
17 Brazoria County Justices of the Peace and Constables Holiday Party Friday, November 17 11 a.m. to 1:30 p.m. Contact Lauren Turner at lturner@haaonline.org for more information.
23-24 Offices Closed The HAA offices will be closed from Thursday, November 23 through Friday, November 24 in observance of the Thanksgiving holiday.
28 Annual Fair Housing Seminar Tuesday, November 28 8:30 a.m. to noon See Page 18 for details. Sponsored by FSI Construction and The Liberty Group
29 Leasing 101 (Day and a half) Wednesday, November 29 8:30 a.m. to 4 p.m.
30 Harris County Justices of the Peace and Constables Holiday Party Thursday, November 30 11 a.m. to 1:30 p.m. Contact Lauren Turner at lturner@haaonline.org for more information.
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Please note that dates and times are subject to change. Check the calendars at www.haaonline.org for the most up-to-date information.
DECEMBER 1
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ACES Holiday Luncheon Friday, December 1 11:30 a.m. to 1:30 p.m. Brennan’s of Houston 3300 Smith St., 77006 Sponsored by FSI Construction and Texscape Services
HAA PAC Luncheon Thursday, December 14 11:30 a.m. to 1 p.m. Program fee: $30 per PAC member; $40 per non-PAC member Contact Alpa at apatel@haaonline.org for registration and details. Sponsored by Earthworks
Offices Closed The HAA offices will be closed from Monday, December 25 through Tuesday, December 26 in observance of the holidays.
7 Go-Getters Meeting Thursday, December 7 3:30 p.m. to 5:30 p.m. Café Adobe 7620 Katy Fwy, 77024 Visit the Go-Getters Corner at www.haaonline.org/gogetters for tips and tools for recruiting. Sponsored by Foundation Specialists and Rasa Floors
Mark your calendars! For the final Go-Getter meeting hosted at Cafe Adobe in the Marq-E Center, 7620 Katy Fwy. December 7 at 3:30 p.m. Register online today! www.haaonline.org/gogetters/
HAA NEXT: Mix N Jingle Thursday, December 14 6:30 p.m. to 9 p.m. Location: TBD Sponsored by Brookway Horticultural Services
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 for an interactive calendar.
A Black and White Celebration
&
2018 Installation Presented by
Premier Sponsors CENTURY A/C SUPPLY CRESTMARK CONSTRUCTION IMPACT FLOORS REDI CARPET SALES OF HOUSTON LTD.
www.haaonline.org
New Year Gala FRIDAY, JANUARY 19, 2018 7 P.M. TO 11:30 P.M. HILTON AMERICAS, 1600 L AMAR STREET, HOUSTON TX 77010
ATTIRE: FORMAL, BLACK TIE OPTIONAL. PLEASE WEAR BLACK OR WHITE OR A COMBINATION. FOR MORE INFORMATION, PLEASE VISIT WWW.HAAONLINE.ORG/GALA. HOTEL INFORMATION: RESERVE A ROOM AT THE GROUP RATE FOR $139. VISIT THE SPECIAL HAA REGISTRATION LINK AT HTTPS://AWS.PASSKEY.COM/EVENT/49275646/OWNER/11720/HOME. MUST BOOK BY DECEMBER 28.
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Don’t miss the final session for 2017:
t h g ri e th h it w er re ca r ou y w ro G ideas, the best advice and watch your future blossom –
APPLE: Maintenance – Session 3 November 2 Be Prepared – Total Property Winterization with Don Willard Winterizing your property takes a lot more than just dripping faucets. We all know that pipe breaks can be very expensive, inconvenient and possibly dangerous for the property and all the residents. This is why preparing for the dropping temperatures is really important. During this informative session you will learn tips, tricks and great information to prepare your property for Old Man Winter. You will learn: • What to winterize • How to keep community laundry facilities safe • How to winterize shops, store rooms and mechanical rooms • Pools, spas and hot tub winterization plans • Irrigation and plan winterization processes
Grab an APPLE! APPLE is sponsored by
APPLE features some of the best nationally acclaimed speakers in the industry.
Individual sessions are priced at only $50 each, a real steal for quality education. Annual Property Subscriptions are also available with unlimited attendance for all on-site property staff to all sessions at discounted prices: • Only $199 per year per property for properties with fewer than 200 units • Only $399 per year per property for properties with 200 to 350 units. • Only $450 per year per property for properties with more than 350 units.
Take a bite out of this education opportunity and make sure to budget for your property’s enrollment for 2018 today. Contact the HAA Education Department at education@haaonline.org or register online at www.haaonline.org.
Visit www.haaonline.org for details. Take a bite out of these education opportunities and enroll for 2017 today. Contact the HAA Education Department at education@haaonline.org or register online at www.haaonline.org.
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Leasing 101 An Introduction to Leasing and the Apartment Industry From Fair Housing and the TAA lease paperwork to today’s terminology and 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. This course is intended as an introduction to the apartment industry for new leasing professionals, as well as those individuals looking to learn more about the industry as a career.
Know the Lease Class includes TAA Lease paperwork curriculum, brought to you by HAA Legal Counsel, Howard Bookstaff!
Topics covered include: • Greeting and qualifying the customer • Executing the lease contract • Telephone techniques and e-leasing • Overcoming objections and closing techniques • An overview of Fair Housing and more. Students who complete the course will receive a certificate, as well as a listing of HAA member management companies. Class Schedule: Day One: 8:30 a.m. to 9 a.m. – Registration and continental breakfast 9 a.m. to 4 p.m. – Program A complimentary lunch is provided.
For more i register, nformation and t www.ha visit us online a o a t educatio online.org or ema n@haaon i line.org l
Day Two: 8:30 a.m. to 9 a.m. – Registration and continental breakfast 9 a.m. to Noon – Program Program Cost: $65 for students paying in advance $75 for students who provide payment at the door Leasing 101 Course Dates: November 29-30
www.haaonline.org
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GO EXTREME with the Extreme CAM Program The Certified Apartment Manager designation is already exceptional. Presented in a supercharged format, Extreme CAM accelerates the education process and allows you to attain the Certified Apartment Manager designation on a schedule that works best for you. (Recommended for experienced managers only.)
Extreme CAM Course Schedule Fall Schedule: Classes are held during the work week only: November 13-17 9 a.m. to 5 p.m. Program Cost: $1,050, pre-registration required Classes sell out – register early! Proctored exam dates to be announced throughout 2017
Register online today at www.haaonline.org or call 713-595-0300 for details.
Need the info? Get the LOWDOWN A new video series featuring HAA legal counsel, Howard Bookstaff, The Legal Lowdown is legal education on demand! Check out these short two- to four-minute videos on a wide range of timely legal topics anytime via our website at www.haaonline.org/legallowdown.
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Need Meeting Space? The Houston Apartment Foundation Dinerstein Reed Prokop Education Center is here for you.
The Direct Energy LP and Liberty Personnel & Executive Search Computer Lab seats 24 and is fully equipped with computers and a sympodium system, including an electronic dry erase board and collaboration tool.
The Dinerstein Reed Prokop Education Center is located on the second floor of the HAA/HAF facility, 4810 Westway Park Blvd. in the Westway Park Development at Clay Road and Sam Houston Parkway, a premier location with easy access for members and their employees.
Available features for each room include: • Podiums • Ceiling-mounted LCD projectors • Automated projection screens • DVD/VCR with direct projection • Fully functional sound systems • Hand-held microphones or lavalier microphones • Wireless internet access • Kitchen facilities And much more…
Keep the education center in mind when your company is in need of a facility for your next meeting or employee training. The center is available for rental to members and is the perfect venue for budget meetings, planning sessions and more. For more information, contact Marie Garza at 713-595-0306, e-mail mgarza@haaonline.org or visit us online at www.haaonline.org.
The Michael Stevens Interests and Camden Room can be divided into two training rooms, each seating 60 to 72 classroom-style, 102 to 112 theatre-style or 80 in rounds. The entire space will seat 120 classroom style or 200 theater style. Other table arrangements are also available. Call for more information.
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Industry Update from the NATIONAL APARTMENT ASSOCIATION and the NATIONAL MULTIHOUSING COUNCIL
BIG 6
NAA and NMHC release an apartment industry statement on the “Big 6” Tax Reform Outline.
A STATEMENT FROM the National Multifamily Housing Council (NMHC) and National Apartment Association (NAA) following the release of the tax reform outline by the “Big 6”: “NMHC/NAA welcome the release of the Republican tax reform framework and applaud the efforts by lawmakers to develop pro-growth tax reform that will create jobs and spark economic growth. We look forward to discussing with Congress our members’ key issues in the proposal, and the impact of the package on the apartment industry and its potential to help solve America’s housing affordability crisis. The country needs 4.6 million more apartments by 2030 just to meet demand, and it’s critical that tax policy supports the production of that housing. “As an industry largely made up of flowthrough entities, we support a more competitive 25 percent pass-through rate and urge lawmakers to make sure all legitimate business income qualifies. Additionally, the framework’s cost recovery rules leave us hopeful a final bill will promote the development of multifamily housing. We are particularly pleased the frame-
work leaves the decision regarding the deductibility of inWe look forward to discussing with Congress our terest for pass-through entities members’ key issues in the proposal, and the imto Congress. Full interest depact of the package on the apartment industry ductibility for all entities inand its potential to help solve America’s housing volved in real estate is crucial to affordability crisis. the development of capital intensive multifamily buildings. “NMHC/NAA also applaud policymakers for recognizing the critical role the Low-Income Housing Tax Credit • Maintain like-kind exchanges; (LIHTC) plays in driving the construction of • Ensure depreciation rules avoid harming housing that is affordable to low-income famireal estate; lies. The commitment to retaining this incen• Preserve capital gains treatment of carried tive in any final tax package is clearly an initial interest; and, step in the right direction, and we will work to • Protect the Low-Income Housing Tax Credit ensure that tax reform does not inadvertently (LIHTC). diminish this valuable tool. “We will continue working with policymakers “The apartment industry is critically imporon the specific needs of our industry in tax retant to communities across the country. form so that we can continue serving the 39 Change must be carefully considered to those million Americans who call apartments home specific aspects of the tax code that have an and the 12.3 million jobs supported by the muloutsized impact on the multifamily sector. tifamily sector.” Specifically, tax reform should: More information about apartments and tax • Protect flow-through entities; reform is available at www.protectthelease.com. • Retain the deduction for business interest;
The Houston Apartment Association is raising funds for the Greater Houston Community Foundation directly benefitting the Hurricane Harvey Relief Fund set up by Mayor Sylvester Turner. Every little bit helps! As an association we can make a big difference. Your tax-deductible flood relief donations will directly go to those affected by the recent floods. Visit https://www.crowdrise.com/o/en/team/haahurricaneharveyrelief to donate.
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New NAA Conference Names In an effort to more succinctly capture the excitement of our conferences and increase participation by a younger demographic, three of the National Apartment Association’s signature, annual events that you have come to expect from NAA have been renamed for 2018. After several months of extensive research and exploration by NAA staff and our conference marketing firm, including engagement by the volunteer Communications Advisory Board and Marketing Committee, our Board of Directors approved the change at the NAA Fall Board Meeting last week. NAA’s largest event and the industry’s largest gathering of apartment housing professionals, the NAA Education Conference & Exposition, will be renamed Apartmentalize, which was the theme for this year’s event in June. NAA will continue this momentum at next year’s show in San Diego from June 13-16. Registration is scheduled to open in October, and the Call for Presentations will open on Tuesday, September 26. The industry’s connection to all things student housing, which was formerly know as NAA’s Student Housing Conference & Exposition, will become CampusConnex. It encompasses the energy of the market, the technology focus of today’s students and the enthusiasm of professionals involved in off-campus housing for higher education. The 2018 Conference will be held at the Omni Resort at Championsgate in Orlando. Registration is now open, and the Call for Presentations is open until this Friday, September 22. Advocate, previously NAA Capitol Conference & Lobby Day, captures the collective strength of the apartment housing industry and clearly conveys the intent of the Conference as our membership comes together to make its voice heard on Capitol Hill. It also complements our Advocacy365 initiative. The spirit carries over throughout the year as members, affiliates and suppliers work to secure favorable legislation for the industry. Registration for Advocate, scheduled for March 13-16, opens this Fall. We look forward to seeing you at all of these events. For more information, please visit the Meetings & Events section at www.naahq.org. Why Due Diligence is Important in Property Preposition Fresh out of school as a young Leasing Manager, Dorchester, now Vice President of Talent and Culture at Pegasus Residential, worked for a management company in the Mid-Atlantic. Her firm had recently purchased a 400-unit community with what it thought included 20 vacant apartments. Due diligence was performed, but not at a deep enough level. When the new owner / See NAA, Page 49
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On the Road with HAA
The Woodlands Area Council Happy Hour Thursday, September 14 at CURRENT Restaurant & Bar Managers and property professionals from The Woodlands area joined HAA for some networking and fun for a special happy hour.
Don’t miss the final HAA Outreach Events for 2017: Area Council: Webster Tuesday November, 7 11:30 a.m. to 1 p.m. Location: TBD
Richmond/Rosenberg Fair Housing Seminar Wednesday, November 8 8:30 a.m. to noon Springhill Suites by Marriott Rosenberg 6815 Reading Road, 77469 Join Howard Bookstaff for a refresher course in Fair Housing. For details on these events, contact Lauren Turner at lturner@haaonline.org.
HAA IS REACHING OUT to better serve our members by bringing targeted networking and educational events to different parts of our 12-county service area. Contact strategic growth manager Lauren Turner at lturner@haaonline.org to sign up for these FREE, management-only events where you can learn about issues affecting your area and network with your fellow managers. Want to host an event? We are looking for member properties to host Area Council meetings. Contact lturner@haaonline.org. 28
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On the Road with HAA
Lake Jackson Area Council Happy Hour Thursday, September 21 at Buffalo Wild Wings HAA traveled to Lake Jackson for another area happy hour with property professionals. Thanks to all who came out for the festivities.
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Harvey Heroes Photos: Above, King’s Cove during flooding and clean up At right, Oaks of Timbergrove’s Edward Randle Photos courtesy of Greystar and by HAA
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Here are the stories of apartment professionals who were on-site during Harvey, battling the storm and comforting their residents. By
H
urricane Harvey made landfall on the Texas Gulf Coast on Friday, Aug. 25. Winds were as high as 130 mph, rainfall topped 51 inches in areas, there were 41 deaths and more than 300,000 people were forced out of their homes and into shelters for refuge. Roughly 800 to 1,000 people are still in shelters (as of press time), with nowhere to go. According to a Houston Chronicle article by Dug Begley, the amount of rain dumped on Houston by Harvey was enough to fill all of Lake Tahoe, give or take a few trillion gallons. The releases of the Addicks and Barker reservoirs spared downtown Houston and the Texas Medical Center, but inundated the west side of Houston. According to Apartment Data Services, a rough estimate of 14,852 apartment units were damaged through Harvey and the flooding that occurred afterwards. When you think of Harvey heroes, the Coast Guard, first responders, FEMA and boat owners who joined the rescue efforts come to mind. What about our apartment owners, regionals, managers and even leasing agents who put their residents before their own personal hurdles? No matter your job title, residents of Houston turned to their apartment community’s on-site teams for answers, information and emotional support. “It was our on-site teams that were face-toface with residents, consoling residents who lost everything,” HAA President Kyle Brown said. “To me, these are the Harvey heroes because they were dealing with the losses of their staff and their families, and they were dealing with residents who had no idea what to do or where to go.” Here are just a handful of stories shared by apartment professionals throughout the Houston area who put their lost homes and family members on pause to assist their residents.
MORGAN TAYLOR, HAA Staff
when Hurricane Harvey hit, Randle, without hesitation, rose to the occasion and faced Harvey head on. Not only did he handle this natural disaster with grace and patience, he experienced many of his own personal hurdles that he was forced to put on hold for the sake of his residents. The rain started Saturday night and at this time, only a handful of residents lost power on the 372-unit property. Randle, who lives onsite, converted his own home into a safe haven for those who lost power, including a family member and two friends. “Even though they are my residents, they’re still my brothers and sisters and I’m going to take care of them like I would my family,” Randle said. Saturday night and into Sunday morning, the floodwater was quickly rising and residents were seeking out Randle for strength and guidance. “I was running around the property to make sure everyone was okay and then before I knew it there was water everywhere, it was raining really bad and people started getting really scared. I told myself ‘Edward, don’t let them see you panic, just talk to them,’” Randle said. And that’s what he did. Randle went doorto-door to check on his residents, talking them through the storm, notifying them of which cars were flooding and carrying them out of
their flooded homes when necessary. “One resident had no idea that Harvey was coming, that it was even raining or that her apartment was holding water. Her car flooded, she had ankle-deep water in her apartment and she had a dog with her, so I told her to come on over to my apartment,” Randle said. In between carrying residents through waist-high water, cleaning out drains, pushing cars out of water, giving out his food and opening his home, Randle got the news that his cousin drowned in high floodwater. “I didn’t even know what day was what. I wasn’t even thinking, I was just going. I hardly slept in between making sure the residents were okay, making sure the office and the property was okay and then I found out a family member had drowned,” Randle said. That didn’t stop Randle, though. “I just had to put my family aside for the time, and pray to God to take care of my family and to help me help others,” Randle said. “Of course, I was thinking about my family, but there were people right here in front of me who needed my help.” Somehow, Randle managed to stay calm throughout the chaos, which was exactly what his residents needed. One resident who drove his truck into high floodwater was on the verge of a nervous breakdown before Randle showed up.
Inside the Loop Allied Orion – Oaks of Timbergrove Edward Randle joined the Allied-Orion Group in April as a leasing agent for Oaks of Timbergrove. Being the only employee on-site
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“I ended up losing my shoes trying to get to his car, so I was barefoot. He was panicking, but I told him to just throw the car in neutral and we pushed his car out of the way,” Randle said. Randle wasn’t able to get in touch with his children until Tuesday, Aug. 29. They were staying with their mother in Braeswood when they were all evacuated by boat. To make matters worse, three more of his family members passed away during Harvey, and his own apartment ended up with flood damage as well. As soon as the rain stopped, he began assessing the damage and calling the property’s supplier partners. According to Randle, a rough estimate of 50 units were damaged at Oaks of Timbergrove. In apartment management, it’s all about the people and their homes. During times of complete chaos and turmoil, residents often turn to their property managers, or in this case their leasing agents, for support. Randle knew what his role was during this catastrophic storm and he did not think twice to help his residents. The strength and selflessness of Randle is not common, but we have seen similar stories of other apartment professionals who stepped up and channeled their inner superhero.
Photos: Above, King’s Cove during flooding and clean up Photos courtesy of Greystar and by HAA
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Kingwood Greystar – King’s Cove Kelsey Krueger is a community manager at King’s Cove in Kingwood who displayed the same courage as Randle did. Krueger was born and raised in Kingwood and had been an aspiring property manager since she landed her first position in the industry. As a recently promoted, and extremely passionate community manager, Krueger wasn’t leaving King’s Cove without a fight. Kingwood started flooding on Sunday night, Aug. 27. At King’s Cove, the flooding was mostly in the streets and if it was anything like the Tax Day flood, the water wouldn’t reach the property, Krueger thought. However, Monday morning, Aug. 28, when Krueger went to drain the pool for the third time, it wouldn’t budge and the parking lot was holding a significant amount of water. Because Kingwood was not listed under the mandatory evacuation list, most if not all of her residents were still in their apartment homes. At this point, though, rescue boats were stationed on the main road in walking distance to the property for residents to safely reach. For the rest who chose to stay, Krueger was updating them by email with evacuation suggestions provided by the U.S. Coast Guard. Krueger, as she felt it was her duty, stayed at the property. Living on the first floor, she moved an air mattress, her two puppies and some essentials to a vacant third floor unit. To assist the residents who were still on the property, Krueger essentially turned the second and third floor of King’s Cove into a shelter. She located each key for each vacant unit on the second and third floors. By email, the property manager was able to alert her resiwww.haaonline.org
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Photos above: Clean up at the Park at Woodland Spring Photos by HAA
Photos above: Flooding at Villages at Meyerland Photos courtesy of Greystar
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dents to leave if they could and for those first-floor residents who couldn’t, she included which units were vacant and where to find her to get those keys. “That was really helpful. Residents were thankful,” Krueger said. The power cutoff at 5 p.m. on Monday evening, Aug. 28, and it was at that point, Krueger said, she felt Kingwood was under a major natural disaster. Earlier that morning, Krueger could navigate the property with ankle-deep water or no water in some areas. However, by Monday evening the floodwater got so high Krueger could barely see her car. “For the water to cover that amount of land in such a short amount of time – that is what is scary. They were saying it was coming up a foot every two to three hours. It blew my mind. The water didn’t rise nearly as fast last year,” Krueger said. That night, the water continued to rise at a rapid pace and by Tuesday morning, Aug. 29, the water reached the door knobs of the first-floor apartments. “I couldn’t see my car anymore. It was a ghost town. I heard boats coming in and out all night long,” Krueger said. “After seeing the water get that high on Tuesday morning, that was when I started to get nervous and I texted my regional, Melissa Friend, that I might try to evacuate.” Late Tuesday morning, the property’s fire alarm system went off. Just thirty minutes later, two men from Louisiana drove a boat right up to the stairs that led to Krueger’s temporary unit. The three of them then rescued a couple of residents who were still at the community. “There were three residents who stayed through it all who I was in contact with throughout the entire time,” Krueger said. Kruger lost everything – her car, her apartment, her personal belongings, but she doesn’t seem to be too concerned about herself. “I’m happy to be assisting other people. That has been a saving grace for me. I’m not concerned about what I personally lost, I’m more focused on what my residents lost,” Krueger said. Passionate doesn’t even begin to describe Krueger. Her love and compassion for her community and the people who live there is palpable. “I’ve been doing this for 23 years and I’ve never seen someone who cares about her property as much as Kelsey does,” Regional Property Manager Melissa Friend said. “When I came out Friday, it was complete devastation. I personally had never seen or experienced anything like this before. For two weeks, we were out here with a popup table and some coolers that we used as chairs just to hand out water and pizzas and answer any questions the residents had. I was amazed by how many people were asking about how Kelsey was doing.” Out of 192 units, 64 units including the leasing office were damaged at this community. At the time of press, the King’s Cove team was working in a vacant unit. As far as their residents, Greystar offered them the option to either terminate their lease and relocate www.haaonline.org
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Photos above: Clean up crews at Greystar’s The Grand on Memorial Photos courtesy of Greystar
to another unit on the second or third floor or relocate to another Greystar community in Kingwood. Krueger wasn’t the only Greystar employee who lost everything because of Harvey, and the management company is rallying together to help. Greystar has a company-wide philanthropic program called Stars in Need. This program is funded by team members for team members, providing financial assistance to employees and their families experiencing significant hardships that lead to severe financial needs. Katy CWS Apartment Homes – Marquis at Cinco Ranch In Katy, the timeline of disaster was a little different from the previous two stories. Katy has always been considered to be on high ground, but during the aftermath of Harvey, that was not the case. When the U.S. Army Corps of Engineers began an overnight release of water from the Addicks and Barker reservoirs, parts of Katy experienced life-threatening floodwater levels. Marquis at Cinco Ranch was one of the apartment communities that faced this distress. According to CWS Apartment Homes Vice President of Insurance & Risk Shanna Berrien, the water at Marquis at Cinco Ranch reached as high as 3-feet in some areas, which caused at least half of their residents to evacuate by boat. Every single apartment home was damaged on this 260-unit property, including each garage, totaling 520 spaces. The leasing office was also destroyed and the Marquis at Cinco Ranch team (at press time) is working out of a trailer. As the apartment community was flooding, CWS Apartments acted fast to establish a recovery plan. “The first step we took when we knew we were flooding was we were calling all of our vendors and restoration people and trying to get them onboard and scheduled and ready to mobilize as soon as we got the all clear. We were
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doing that as the property was still standing under water,” Berrien said. That Thursday, when the roads were safe to drive on, CWS had contractors at the Cinco Ranch property assessing the damages unit by unit and starting the demolition process. “From a risk perspective, we wanted to get in and start doing things to recover as quickly as we possibly can,” Berrien said. “But from a resident perspective, seeing firsthand all of the residents who were affected, whose belongings were destroyed and knowing most didn’t have flood insurance, it was really sad. It’s been heartening to see how Texas has come together, but to see the destruction up close and personal, it’s just awful." CWS was able to relocate residents from Marquis at Cinco Ranch to other properties in their portfolio, but Berrien said her residents are ready to move back into their homes. Berrien hopes to be finished with the cleanup process within the next six weeks (as of Sept. 25). Once the demolition process is complete, Marquis at Cinco Ranch will begin the rebuild process. “The residents are very attached to this property, so they want to come back as quickly as possible,” Berrien said. Meyerland Greystar – Villages at Meyerland Without a doubt, Meyerland was one of the hardest hit areas in Houston during Harvey, and this neighborhood is no stranger to flooding. In three years, Meyerland flooded three times – on Tax Day in 2016, on Memorial Day in 2015 and during Harvey. Villages at Meyerland was among the inundated communities in this part of town. The downpour of rain in Meyerland caused flooding at a rapid pace. The rain started Saturday night, Aug. 26, and within just an hour the streets were flooded. By midnight, Villages at Meyerland Maintenance Technician Nelson
Panameno got the first call from a resident whose apartment was beginning to hold water. Community Manager Jeff Randolph lives just two miles down the road from Villages at Meyerland and by 2 a.m. Sunday morning, Aug.27, he experienced knee-high water in his own home. “Luckily, we had someone come by on a jet ski to help us with our dogs. We started on the couches, then to the dining room table and then moved them to the kitchen counters and at that point the water was as high as our kitchen counters. Finally, were able to flag down the guy who came by on the jet ski and he helped us shuttle the dogs to a neighbor’s house that was built 5 feet off the ground,” Randolph said. Randolph lost everything and is now living with his family and his dogs in an apartment home at Villages at Meyerland. “I’m just grateful to have these guys, because I knew I didn’t have to worry about it while I was dealing with my own home,” Randolph said of his team. Panameno made it to the property by that Monday, Aug. 28, and Assistant Manager Katrina Caver made it to the property by Wednesday, Aug. 30. There wasn’t a whole lot Panameno – or anyone for that matter – could do to stop the flooding, but he did what he could. “Most of what Nelson was doing on Monday was doing the wet vacs, pulling carpet out and just doing whatever he could to take care of the residents as best as he could by himself,” Randolph said. From her home in Katy, Caver spent her time responding to resident emails and offering the moral support her residents desperately needed. “It was frustrating for me, because I wanted to be here to help, but I couldn’t make it in. I tried, but I couldn’t make it until Wednesday,” Caver said. Villages at Meyerland is a massive community that is divided into three sections with a total / See Harvey Heroes, Page 53
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Even though the storm has passed, the ramifications from Hurricane Harvey are still very present and creating many obstacles for management companies to perform business at the fast pace their residents are expecting.
What’s
Next? Debris at The Park at Woodspring
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ABODE sits down with President Kyle Brown of Milestone Management and Incoming-President Michelle Pawelek of Greystar to discuss post-Harvey operations and the ripple effect on the industry. Story and photo by
H
urricane Harvey’s destruction goes beyond flood damage and property loss and extends into the apartment market and the day-to-day business operations of the apartment industry. Apartment owners and executives across Houston have been adjusting the way they do business to protect their residents and their properties while also supporting their on-site teams. Even though the storm has passed, the ramifications from Hurricane Harvey are still very present and creating many obstacles for management companies as they work to perform business at the fast pace their residents are expecting. “We’re trying to rescue people by giving them homes, we’re in recovery ourselves because we have destroyed apartment homes, not to mention our employees are trying to recover in their personal lives,” Incoming HAA President Michelle Pawelek of Greystar said. HAA President Kyle Brown of Milestone Management, is among the long list of management personnel whose homes were inundated. Brown was out of the country and he returned to a flooded home and years of lost memories. “During Harvey I was out of the country, but I got a text from my neighbor saying they flooded, so I knew my house was underwater too. I even had contractors in my house before I returned sending me pictures, and even though I knew what was happening, until I came home and saw it for myself – I lost it,” Brown said. “I can tell you what that feeling is like all day long. You can drive by and see all the rubble, and you can imagine what you would be feeling by looking at the devastation throughout town, but until you’re in that situation, that feeling is only a fraction of what you think it would be. When you are the one dealing with it, it is your world that is gone,” Brown said. With their residents in mind, apartment owners and executives were doing everything they could to take care of the residents who weathered Harvey.
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MORGAN TAYLOR, HAA Staff
“Anyone who had what we considered a level three unit, meaning it had more than just a foot of water and was deemed uninhabitable, we allowed them to transfer to another Milestone property, transferred their security deposit and didn’t charge them an application fee. We of course had to do background checks and make sure they could afford the rent, but if they wanted to go, we told them go and we’ll make it as easy and fast a process for you as possible.” – Kyle Brown “We were trying to put our residents first because our hearts go out to them,” Pawelek said. Management companies across Houston that have the supply and manpower, like Milestone and Greystar, worked with their residents who lost their apartment homes by transferring them to other properties under their management. To speed up the process, management companies dropped application fees, along with other miscellaneous fees, and transferred security deposits. “Anyone who had what we considered a level three unit, meaning it had more than just a foot of water and was deemed uninhabitable, we allowed them to transfer to another Milestone property, transferred their security deposit and didn’t charge them an application fee. Of course we had to make sure they could afford the rent, but if they wanted to go, we told them go and we’ll make it as easy and fast a process for you as possible,” Brown said. Property managers also worked with residents in communities who might not have had significant water damage inside their individual units, but who were evacuated by boat and couldn’t return to their apartment homes for a number of days because of severe flooding. “For the residents who had to evacuate by boat and couldn’t get to their homes for several days, they were so freaked out over the whole experience that we let them terminate their
lease if they wanted to,” Brown said. “Because of the trauma they went through, we didn’t want to force them to stay there.” A resident who wanted to terminate their lease on one of these severely damaged communities was allowed to do so. There were specific guidelines and time restrictions that needed to be followed, but once those were met, residents could then sign a document that stated they were terminating the lease. Residents were given five days to move out. Another action many management companies took to protect their residents was freezing their rental rates. After the Storm Immediately following the storm, the onsite teams were working with residents on housing while supervisor and construction teams were assessing damage and establishing a recovery plan. “Once the hurricane was over and we were able to travel on the roads, it was immediate damage assessment. Everyone in a supervisory position was assessing the damages on all of the assets and at what level so we could begin to prioritize recovery based on the level of damage,” Pawelek said. Because the damage of this storm was so widespread, many management companies in those first few weeks after Harvey were operating with a limited staff.
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“We’re going to see an interesting dynamic occur because we’re going to have a lot of old properties that will have large numbers of units available at once, and now you’ll have older properties going through a lease-up stage, which is a horse of a different color. A lease-up is a lease-up, but you don’t usually see that in an established submarket on stabilized deals. Now we have to think about a reload on lease-up marketing and the dollars associated with that.” – Michelle Pawelek “For example, you’ve got an eight-person team and only four can get to work because the rest are either still in a shelter, out of town because they left with their families, or lost everything and are trying to manage their own lives right now. And so, you come back with only half a crew or 60 percent of a staff and you have residents who are expecting to be taken care of because their homes are in shambles or destroyed,” Pawelek said. Nearly 15,000 apartment units were damaged during Harvey and there has been a significant domino effect with apartment owners and executives trying to simultaneously rebuild each unit. From manpower to supplies, there is a shortage of everything in Houston, and owners are just as ready to rebuild as residents are ready to move back into their homes. “The domino effect includes the emotional and mental state of our employees who are dealing with their personal lives and their ability to take care of their residents. Then, we’re dealing with no trash pickup in Houston anywhere, a shortage of roll-off dumpsters, which everyone needs right now and there physically is not enough labor to go around to do demo work,” Pawelek said. Some properties have already started demolition work, but many other properties have been struggling to find supplier partners who weren’t put out of business because of flooding or who aren’t already booked up working on other properties. “The people who would normally help us in these situations aren’t there to call,” Brown said. On top of mitigating damage, properties have been scrambling to get every unit made-ready on their community when normally, only 85 percent need to be ready at any given time, Pawelek said. “Again, we are running on short staffs and our existing staff is so busy with hurricane recovery that we need contractors to come in to do these make-readies,” Pawelek said.
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Supplier partners are in such high demand right now that management companies allowed residents, who were willing to do so, to move into vacant units that weren’t up to make-ready standards, but in decent enough condition to move into. “That was their only choice. Some residents can’t move because their children are in school and they want to stay in their school zone. We are promising those residents we’ll come back and make it right, but for now this is what we can offer so that they have a place to rest their heads at night,” Pawelek said. Besides finding supplier partners to work on damaged units, apartment owners and executives are struggling to perform normal business operations on properties that were untouched by Harvey. “Trying to even get a unit painted for a normal move-in, for a property that wasn’t damaged has been tough. The properties that didn’t have damage still have normal operations, but contractors are already committed to damaged properties and there is so much money to be made there. Those damaged units and properties hold priority in their workload so the undamaged properties aren’t getting the timely service that they normally would,” Pawelek added. Market Dynamic After Harvey Let’s fast-forward to post-rebuild. What will happen to the market when all of these units and properties go online at the same time? How will older properties adapt to lease-up mode? All of these questions are on the minds of management executives like Pawelek and Brown. “We’re going to see an interesting dynamic occur because we’re going to have a lot of old properties that will have large numbers of units available at once, and now you’ll have older properties going through a lease-up stage, which is a horse of a different color. A lease-up is a lease-up, but you don’t usually see that in an established submarket on
stabilized deals. Now we have to think about a reload on lease-up marketing and the dollars associated with that,” Pawelek said. Thousands of units going online all at once won’t just happen in one area, as Brown points out, this will be city-wide. And that’s in addition to the supply that was already in Houston prior to Harvey. “That’s an issue we’re going to face,” Brown said. The good thing, Brown and Pawelek noted, is many properties will re-enter as a lease-up at a price point that is more affordable than new development. Brown anticipates management of older communities to take advantage of this opportunity by renovating their units. The future of the apartment economy will vary across areas, and because of the vast, citywide destruction, the supply we had in Houston prior to Harvey might linger simply because people aren’t willing to uproot their lives to move across town. “I have some properties that are 96 to 98 percent occupied because they were on the edge of the areas that got hit by the flooding. Someone may wonder why a property in Spring wasn’t 97 percent occupied after the storm also. It’s because people who flooded in other areas, let’s say Energy Corridor for example, aren’t going to move across town to Spring when their jobs and school districts are in the Energy Corridor,” Brown said. The hotel vouchers distributed by FEMA will eventually expire and apartment owners are anticipating an echo wave of leasing because of that as well. A lot of properties are seeing a lift in occupancy and rent right now. These numbers are expected to carry through the end of the year with the thought that homeowners will be seeking three-month leases. “Submarkets that were previously spongy are now expecting to end 2017 strong and see a carryover in the first quarter of 2018 from the residual impact of Harvey. Then, we’ll be in leasing season and by then the Class A will hopefully continue to absorb at its normal rate and job growth will be returning. In the submarkets most impacted by the hurricane, we’re more optimistic about 2018’s financial performance now,” Pawelek said. Because of Harvey, the market might fare better in the end than what was expected prior to the storm, but it’s going to be a long and exhausting journey for our apartment owners, executives and on-site teams. ABODE will continue our coverage of the recovery in next month’s issue.
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A Good Time to
Invest
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What draws investors to real estate and apartments? In 2016, the second largest sector of the wealthiest newcomers to the Forbes 400 list of Billionaires had their aggregate net worth in real estate, just behind media and entertainment. By
TERRI CLIFTON, Better World Properties
I
ncome-producing real estate investments such as apartments can provide excellent appreciation. Over time, apartment properties increase in value when income is improved through effective property management that in turn drives higher value and rent increases. Multifamily investments also offer tax benefits and hedges against inflation. We can’t say this for a bank CD currently paying a paltry 1.12 percent, can we? There are always opportunities in the multifamily marketplace. Distinguishing opportunity from potential disaster is a learned skill. Recognizing Opportunity Apartment rents are driven by location, jobs, economic growth and population shifts. Opportunity is often hidden within shifting demographics. Recognizing longer trends in multifamily gives an investor advantage over those who may only follow current market analysis. With greater experience in apartment markets, multifamily process improvement and performance comes with more detailed and insightful underwriting and due diligence. This can illuminate hidden potential for expense management and revenue enhancement. Uncovering ROI unseen by others provides competitive advantage. Understanding what to emphasize and what to minimize with an eye on exit strategy keeps emotions in check, expenses in line with budgets and returns flowing. In the U.S., we are experiencing an unprecedented time in history with two bulging segments of the population, each with staggering numbers, choosing to rent rather than own a home. • Boomers: 75.4 million baby boomers are heading into retirement. Boomers are ages 53-71 born between 1946 and 1964. Bucking previous trends of home ownership, more and more boomers are celebrating their empty nest with freedom from lawn care and property taxes. Instead, they are choosing the safety and simplicity of the “lock it and leave” care-free apartment lifestyle to pursue travel, hobbies and second careers. • Millennials: In 2014, the number of millennials in the U.S. actually eclipsed boomers. According to the U.S. Census Bureau, there were 83.1 million millennials compared to 75.4 million boomers. Millennials are ages 20 to 36, born between 1981 and 1997. More and more millennials are choosing to rent apartments long term instead of buying single family homes.
www.haaonline.org
Together, these two groups total 158.5 million. And, they want the freedom and lifestyle afforded by today’s apartments. According to the National Real Estate Investor, the apartment market has expanded by 12 percent from 2007 to 2016. Envision the added influx from the numbers above and you get an idea of opportunities that await the prudent multifamily investor. So, is this a good time to invest in apartments? We think so. When is it Time Not to Invest in Apartments? If the deal appears too good to be true, then there is more digging to be done. Laser-focused, stealth due diligence is an art. When done right, a great deal of money can be made on the buy in multifamily acquisitions. When done wrong, an investor can pay dearly in reduced ROI for years to come. Structural, utility, code, regulatory, tax and insurance issues can add up quickly if one does not have the knowledge or experience to identify challenges up front. Knowing when to hold ‘em, when to fold ‘em and when to walk away from a deal is a learned skill earned through years of experience. Rolling up sleeves, walking properties, digging deep and doing the homework pays off in the long run. When assessing a potential deal, there are no shortcuts. Is it time to add apartments to your portfolio? Opportunities in Texas await those investors who think ahead of the curve. Terri Clifton is president of Better World Properties. Better World LLC knows apartments. Inside out. We provide full service apartment management, apartment process and performance consulting, and multifamily equity and financing solutions. We carefully crafted our business model to address the full life cycle of apartment investment. No more shopping for this service or that service. Give us a call. Better yet, come visit. We love to talk apartments. Visit Better World LLC at www.betterworldllc.com.
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Image © Wavebreakmedia Ltd./Dreamstime.com
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Seniors Living Welcome to the New Urbanism neighborhood. By
T
he baby boomer generation, born between 1946 and 1964, is growing up. Some are empty nesters, some are retiring and some 78 million are ready for a new kind of living. As they adjust to a new lifestyle centered around leisure and entertainment, this generation is looking to downsize and find a home that better meets their post-retirement needs. Let’s make something very clear. This aging generation has no intention of settling into the assisted living or a retirement homes like their parents did (they actually dread the thought). Baby boomers are the first to welcome their 60+ years with excitement – an opportunity for financial freedom, flexibility and fun. This outlook is giving rise to a distinctly new kind of senior living community that offers independent living, modern conveniences and a new beginning. In other words, senior living is embracing the development philosophy known as New Urbanism. The rise in these developments clearly aren’t coincidental. Many real estate and multifamily developers have noticed the buzz surrounding the senior living market. These communities are becoming more distinguished, purposeful and sought-after as architects and developers are turning the needs and lifestyle of the boomers into attractive amenities and new urbanist communities.
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Out with the old, in with the New Urbanism As trends come and go, some stick around to make a true impact on the community. New Urbanism is one of those. Stemming from the original philosophy of Walt Disney, New Urbanism was initially conceptualized as a “community of the future.” Disney envisioned these garden cities with an urban core to be a solution against the chaotic lifestyle of urban cities. Today, the school of thought mimics much of what Disney had dreamed up. Communities are designed around an urban center with walkability, sustainability and connectivity at the forefront. The sheer design concept makes senior living a great fit for the new frontier of New Urbanism. A neighborhood for the neighborly While many boomers are opting to “age in home,” meaning embracing the advances in technology to maintain their needs without relying on assisted living, there’s a clear market for senior living in the multifamily space. As New Urbanist ideals begin to alter the designs of these communities, more of the demographic is drawn to the thoughtful design of housing, amenities and the surrounding community. This generation is very mindful of amenities and community design. From technology and nature trails to accessible and entertaining amenities, they’re looking for a new horizon of
AMY JOHNSON, Criterion B
living. Here are some lifestyle amenities that fit under the New Urbanist umbrella and can truly set a senior living development apart. Step it up When downgrading in size, many boomers will hope to make up for it in community. Connecting with neighbors is a way of life within a New Urbanist design. When walkability is at the core, how could you not run into your neighbor as you head to the store, your favorite restaurant or the lake nearby? Communities like Parkview Living1 in Los Angeles, embrace an active senior living environment that overlooks the downtown and is built around Echo Park and Lake, as well as nearby restaurants, shops, churches and hospitals for a pedestrian-friendly experience. As walkability is becoming a way of living, it’s quickly becoming a staple of senior living developments, one that embraces the the new urbanist values. With New Urbanism, communities are consciously built around the neighborhood, and even more so, around the people living in the community. Location, location, location The New Urbanist design is structured to provide radial access to your surroundings with a distinct urban core and city center. Adding a mixed-use concept to senior living developments gives residents the ability to walk to the www.haaonline.org
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grocer, restaurants, wellness center, bookstores, nature trails and dog parks. Conscious building benefits everyone, however, an aging generation is likely to especially enjoy the simplicity and ergonomic environment built down to the street corner for their needs. A purposeful strategy in mixed-use design for senior living gives residents a whole new meaning for neighborhood. Highlands Garden Village2, for example, is a New Urbanism award-winning and mixed-use neighborhood in Denver, offering senior residents the ability to live, work and shop all within a minutes walk from their home. Walkscore.com3 identifies a neighboorhood’s walkability index, ranging from 82 being very walkable to 69 being bikeable with minimal lanes. HGV lands a promising 84, which is an impressive amenitiy for residents. A luxury/elevation in urban living Senior living communities that are adopting the New Urbanism philosophy have a keen sense for understanding the resident. Sustainable designers consider the neighborhood, the structure and the experience. With this urban senior living model, baby boomers are relocating to high-rise developments that are structured to reinvent the urban lifestyle. New Urbanism-style communities allow for diverse living environments and mobility. Properties like The Clare4 in Chicago offer senior residents the luxury of walking downstairs to enjoy high-end dining and an escape to Park District full of 8,000 acres of nature walks, benches and beaches. Located in the heart of Chicago, this development redefines your typical senior living community by bringing in New Urbanism values and rethinking the concept of urban living. As New Urbanism neighborhoods continue to pop up throughout the country and change the urban landscape, a diverse group of demographics will both demand and flock to these environmentally-conscious neighborhoods. Stay tuned as we continue to research the development trends surrounding senior living and New Urbanism. Amy Johnson is a Content Strategist for Criterion.B an agency focused on branding and inbound marketing for the commercial real estate and multifamily housing industry.
1. “Parkview Living,”accessed August 25,2016. http://www.parkviewlivingla.com/community/ 2. “Highlands Garden Village,”accessed August 25,2016. http://www.highlandsgardenvillage.net/ 3. “Walk Score,”accessed August 25,2016. http://www.highlandsgardenvillage.net/ 4. “The Clare,”accessed August 25,2016. http://www.theclare.com/
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On the Scene with the HAA NEXT
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NEXT Professional Development Breakfast Sponsored by 1 Brandt Electrical A/C & Heating Services Friday, October 6 at the HAF Education Center NEXT held a development breakfast featuring Laura Lestus of The Liberty Group. Lestus presented a program focusing on creating a professional brand with LinkedIn.
MEET THE NEXT GENERATION OF HAA LEADERSHIP. This niche group within HAA is dedicated to the networking and professional development needs of HAA members 35 and younger. 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. 46
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Rental Credit Reporting provides Houston’s
apartment industry with the most effective rental credit reporting tool available. RCR gives your leasing staff immediate access to information about which prospects have fulfilled their leases and who have been residents in good standing. RCR also tells you who hasn’t paid rent, who has broken leases and who has received their deposit refund.
Rental Credit Reporting (RCR) was established in 1977 to solve screening problems the Houston Apartment Association founders felt plagued the local apartment industry. RCR has unsurpassed data on resident rental histories in the Houston region. The Houston Apartment Association and CoreLogic are partnered to expand RCR and include the following searches in one bundled report with immediate and unlimited inquiry access. National Landlord-Tenant Data – Searches more than 34 million landlord-tenant court records including filings, judgments and liens. Local resident rental history including evictions, amount owed at move-out, broken lease information, NSF checks, deposit disposition. Texas Criminal Data – Instant delivery of available felony and misdemeanor records from Texas statewide and 18+ supplemental counties including Harris, Montgomery and Fort Bend. Terrorist Check – Automated search tool that identifies known or suspected terrorists and fugitives from various data sources, including the FBI, other federal agencies as well as state and local law enforcement agencies. Sex Offender Search – Instantly informs your staff if a prospective or current resident is a registered sex offender. Move-in/Move-out Entry – Submit your property’s rental history data online through RCR's familiar and easy-to-use tools. Eviction Entry – Protect yourself and other properties by registering your evictions with RCR. Inquiry History – Know where else your applicant is applying. Quick and Easy – Information is entered into an easy-to-use Web application and a decision is delivered instantly. Cost Effective – Automated decisions save your staff time. Immediate Access – Inquiries concerning prospective residents can be made online, 24/7. Monthly Activity Report – No need to guess if you’re getting what you are paying for – each owner/management company can access a monthly report showing their properties system use. Subscribe Today – For approximately 32 cents per unit per month, RCR can help make sure you know just who your prospective residents are. * For properties 49 units or less, you have unlimited inquiries for $10 per month.
a service of
in partnership with
To subscribe or to learn more, call RCR at 713-595-0300, email rcr@haaonline.org or visit www.haaonline.org. www.haaonline.org
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On the Scene with the HAA PAC
1
HAA Political Action Committee October Luncheon Thursday, October 5 at the HAF Dinerstein Reed Prokop Education Center Sponsored by 1 Secure Insurance The October PAC luncheon featured Houston City Controller Chris B. Brown with an overview of the City of Houston Bond Election.
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. 2017 registration forms are now available! To join, renew or learn how to become involved with the PAC, see online at www.haaonline.org or contact apatel@haaonline.org. 48
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NAA, continued from Page 27 and its associates walked all 400 of the apartment homes, they encountered a surprise. “It was one of those cases where the occupancy was stated at 95 percent, but once you walked the entire community, that was not what we found,” she says. “Occupancy was actually 80 percent.” As her employer dug deeper, Dorchester says it discovered that the previous owner of the community had faked lease signings and there were actually 80 vacant apartments. “The files were indicating that people were living in the units,” she says. “When we walked the units, no one was in those apartments. We found out the previous owner actually paid the rent on those units to make the property’s value look greater than it was.” Dorchester does remember what ultimately happened 20+ years ago with that 400-apartment home community and its doctored leases, and the experience taught her a valuable lesson—when you are repositioning a recently acquired community, there will be unexpected pitfalls. Due diligence and walking every unit became an essential part of a “no surprises” acquisition strategy. She is not alone in that realization. “I have been involved in more than 50 renovations,” says Diane Batayeh, CEO of Village Green. “There are always hidden things.” Those hidden things may not be as fraudulent as doctored leases, but they can create headaches for the company assuming control of a community. During the coming months, NAA will highlight other hidden issues that apartment owners face when they reposition communities and provide a template for how to identify and solve those issues. For apartments incorrectly identified as occupied, stringent due diligence can solve issues before they arise. “We look at what is in a file and then we walk 100 percent of the apartments,” says Batayeh, who says she has encountered situations where she has been mistakenly presented bad information in the due diligence process. “We look at the ledgers, the bank accounts and the deposits. If you are doing your checks and balances correctly, you will not get tricked.” If an owner is purposely given bad information, there is always a legal option. “Hopefully your purchase contract protects you and gives you some sort of recourse if it happens,” she says. Have you faced a repositioning surprise that you would like to share with us? If so, contact Les Shaver at lshaver@naahq.org. – Les Shaver www.haaonline.org
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On the Scene with the HAA PRODUCT SERVICE COUNCIL Supplier Education Program “Coffee Talk” Friday, October 6 at the HAF Education Center The Product Service Council sponsored a supplier education program featuring Kelly Scott, Buyer’s Access; Stephanie Graves, Q10 Property Advisors; Doug Oehl, Power Express; and Deborah DeRouen, ResPage. They took questions from the attendees and gave advice on developing relationships with management personnel that result in increased business. Thanks to CORT Furniture Rental for the comfortable seating! If you are a new supplier to HAA, visit the Product Service Council Page at www.haaonline.org/psc and find a mentor.
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On the Scene with HAA Education
1
September IROC Breakfast Sponsored by 1 Presto Maintenance Supply Friday, September 22 at the HAF Education Center HAA General Counsel Howard Bookstaff and HAA Vice President of Public Affairs Andy Teas discussed the evolving issues of Hurricane Harvey with the members of the Independent Rental Owners Connection.
BREAKFAST FOR CHAMPIONS. The IROC Breakfast programs are offered every other month and are complimentary for current HAA independent owner members. Non-members interested in attending may do so for a fee of $25. Offered on Friday mornings, topics range from regulatory and compliance concerns to leasing and marketing strategies for smaller communities on a limited budget. See www.haaonline.org for details. 52
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Harvey Heroes, continued from Page 36 of 714 units. An entire section’s downstairs apartment homes, 118 units, was completely destroyed by flooding. Many other units endured damage as well. “We had 118 units that were under water, but we had many, many more that were damaged,” Randolph said. A sense of normalcy is so out of reach for this community, as it is for so many communities throughout the vast Houston-area. Spring Vesta Corporation – Park at Woodland Springs Park at Woodland Springs had recently finished renovations from the Tax Day flood when they were hit by Harvey. “Speaking for the residents, they were just starting over from the last flood, so still even in a year’s time they were still trying to get their homes back in order from what they lost in the previous flood. That part I think is more frustrating for them because now it has happened again,” Property Manager Kymberli Jones said. According to Jones, 214 out of 250 units were damaged by floodwater with anywhere from 3 to 5 feet of water. The leasing office was also destroyed and they too (as of press time)
www.haaonline.org
are working in a trailer. Having experienced a flood in the past, the Vesta team did what they could to prepare. They moved their files to a high and dry location and reached out to residents to alert them of the mandatory evacuation. Vesta Executive Vice President Chuck Moran flew from Connecticut to Dallas on Monday, Aug. 28, and drove into Houston. He was told that all but 60 residents evacuated on their own and the rest were evacuated by boat. Moran still wanted to make it to the property. Because of dangerous floodwater levels, he couldn’t reach the property until the following day, Tuesday, Aug. 29, when he found himself rescuing residents. “When I got there, I noticed that someone was up on a piece of dry ground right by our entrance sign waiving a white sheet,” Moran said. “So, I went back and I passed a Montgomery County Sherriff’s squad car and he was able to get a National Guard helicopter out to look and next thing I know two Army boats show up. I jumped in one and we went over to Park at Woodland Springs. I walked around the property as best I could and we ended up taking 10 more people out at that point in time.” Walking onto the property a few weeks after the storm and the flooding, not a single resident
was in sight, just about a couple hundred workers. And they were moving fast. “We’ve had anywhere between 120 and 250 people on site each day stripping sheetrock, stripping insulation, stripping appliances … and all 214 units will have drying equipment in them by next week,” Moran said in our interview on Sept. 25. The rebuild process will be completed in phases, but Moran, like many others, anticipates being completely back up and running within a year. “We will get our first building back in 90 to 120 days and then after that we’ll get a building every three weeks, so that’s roughly a year,” Moran said. As a 40-year industry veteran, Moran has been through three other floods and many significant fires. “Over the years, these things just happen,” Moran said. “The thing about this was not only the flooding that happened at our property, but the widespread flooding in Houston in general. It taxes your ability to get contractors and the attention of the insurance adjusters and so on and so forth. I made sure beforehand that we were in touch with our contractors and such.” Unfortunately for Vesta, their Houston portfolio is limited to three properties, including Park / See Harvey Heroes, Page 63
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On the Scene with ACES ACES Luncheon Sponsored by 1 Guardian Construction and 2 Texscape Services Friday, September 29 at Masraff’s The Apartment Community Executives & Supervisors lunch for September featured Dr. Deborah R. Phillips discussing how to develop leaders with emotional intelligence at all levels.
1
2
THE APARTMENT COMMUNITY EXECUTIVES and Supervisors group was created to offer executive-level members a way to network and exchange information and knowledge. It offers them an opportunity for educational programs and presentations. ACES is intended for those on the property management side of HAA membership in an executive or leadership role. For more on ACES, see online at www.haaonline.org. 54
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Welcome Mat
Introducing HAA’s NEW MEMBERS
OWNERS
SUPPLIERS
Best Synergy Investment LLC Cloris Chen 3735 Varna Court Missouri City, TX 77459 832-628-9696 La Casita Homes I La Casita Homes II
MP Quad Properties LLC Michelle Pahl 6140 S Hwy 6 #180 Missouri City, TX 77459-3802 713-822-4001 MP Quad Properties Referred by Michelle Pahl, CAS
3G Roofing Corey Boling 14546 Brook Hollow #365 San Antonio, TX 78232 833-347-6631 Roofing Contractors, Roofing Consultants
Bi-Centennial Square Co. C Terry Ross PO Box 680374 Houston, TX 77268-0374 281-582-2333 Centennial Square Apts
Oro Capital Advisors Brenda Crawford 11766 Wilshire Blvd. #325 Los Angeles, CA 90025 (310) 806-6060
Apartmentcarts.com Adrian Sosa 23550 Northgate Crossing Blvd. #356 Spring, TX 77373 832-373-1722 Electric Vehicle-charging docks, Golf Cars & Carts Referred by G G Jackson
Century Stone Properties NaKeytta Watson 16107 Kensington Drive #432 Sugar Land, TX 77479 (866) 495-9759 Wainwright Apts Govardhan Properties Venkata Kasireddy 1320 W 34th St. Katy, TX 77450 713-298-6353 Residence at Govardhan Hawkeye Associates Inc. Dan Tremmel PO Box 4047 Sargent, TX 77404 281-444-5678 Georgian Townhomes Oak Street Townhomes
Russ and Company Real Estate Investment LLC Reagan Singer 201 Adams St. Houston, TX 77011 713-504-5313 Milby Apts Gayle Villa Apts Avenue F Apts Village Green Management Steve Roth 5000 Quorum Drive #210 Dallas, TX 75254 214-431-3029 Boterra Bay
Ascension Roofing & Construction LLC Gary Maze PO Box 8442 Houston, TX 77288 832-412-1422 Drywall Contractors, Roofing Contractors, Siding Contractors Referred by Ryan Weis E5 Services LLC Dennis Potter 4600 Hwy 6 N #207 Houston, TX 77084 713-581-0654 Pressure Washing - Equipment & Service, Parking Area Maintenance & Marking Referred by Mindy Price
Ernie Smith and Sons Roofing LLC Matt Dravis 19422 B Hwy 6 Manvel, TX 77578 281-534-3521 Roofing Consultants, Roofing Contractors Referred by Grant Crowell, CAS Finishes Etc. LLC Chuck Cates 19530 FM 362 Waller, TX 77484 936-372-1670 Drywall Contractors, Painting Contractors Fitz Roofing Tracy Schindler 118 Vintage Park Blvd. W-104 Houston, TX 77070 863-521-3001 Roofing Contractors Fitzpatrick Insurance Solutions Eric Fitzpatrick 10415 Morado Circle Bldg. I #160 Austin, TX 78759 512-380-9511 Insurance, Risk Management Henley & Henley PC Geoff Henley 2520 Fairmount St. Dallas, TX 75201 214-821-0222 Legal Services
HAA is dedicated to our supplier members and the Product Service Council is a group of active members ready to assist you and help you get the most from your membership. Whether you are brand new to HAA or perhaps a supplier looking for some guidance, a mentor might be just what you need. Do you need mentoring? Visit www.haaonline.org/mentors to find out.
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J&L Distributors Jessica Detmer 707 Avenue E Stafford, TX 77477 713-827-6841 Cabinets, Lighting Fixtures & Supplies Referred by David Lindley, CAS
The Cromeens Law Firm PLLC Jessica Mora 8558 Katy Fwy. #116 Houston, TX 77024 713-715-7334 Attorneys, Legal Services
Pack-It Movers Anthony Johnson 12805 Westheimer Road Houston, TX 77077 713-884-0018 Movers, Storage
USA Decon Kourtney DiGulio 3819 Kimberly Drive Pearland, TX 77581 713-850-0555 Cleaning Specialists - Trauma, Cleaning Specialists Bio-Hazardous Material
Paragon Roofing Inc. Phil Bolton 1601 N Walton Walker Dallas, TX 75211 214-493-0753 Insurance Consultants, Roofing Consultants, Roofing Contractors
USA Patrol Division Sam Samara 13326 Westheimer Road Houston, TX 77077 281-975-9000 Security Guard/Patrol Service, Courtesy Patrol
Rutherford Services Inc. Steve Rutherford 1901 Long Prairie Road #220-150 Flower Mound, TX 75022 713-818-2424 Remodeling & Repair-Building Contractors, Drywall Contractors, Painting Contractors, Siding Contractors, Building Contractors, General Contractors, Waterproofing Contractors, Fire/Water Damage Restoration, Carpenters, Kitchen Cabinets, Stucco & Exterior Coating Contractors, Shutters
Wifi-Live TV Verl Doman 8987 Cottage Canyon Drive Pleasant Grove, UT 84062 801-318-2923 Television-Cable/CATV/Sat Systems, Cable Service
Strategic Protection Solutions Renee Johnson 11807 Westheimer Road #55027 Houston, TX 77077 281-826-1185 Courtesy Patrol, Security Guard/Patrol Service Target Stone JR Torres 14120 Hempstead Road Houston, TX 77040 832-827-8663 Counter Tops, Granite, Stone
ALL SUPPLIER MEMBERS are listed online at haabuyersguide.com, searchable by product/service category or company name.
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On Site with ABODE
Photos provided by Elan Briar Forest
MORE THAN 300 UNITS Garden, Built 2000 to 2015
Property: Elan Briar Forest Owner/Management: Greystar Location: 14698 Briar Forest Drive, right off Highway 6 and just miles from the Eldridge Parkway and I-10. Units: 324 Built: 2014 Web: www.elanbriarforest.com Interesting features: Located in the Energy Corridor, this sophisticated community is just a walk away from the spectacular 7,800-acre George Bush Park where residents can enjoy the large soccer field, shooting range and numerous pavilions, playgrounds, ponds and jogging trails. A handful of restaurants are located within a mile of the community, such as Le Mistral, Pecan Creek Grille and more. That does not include the restaurants, and great shopping, that are offered at Town and Country, City Centre or Memorial City Mall, which are just miles away. Amenities include an infinity pool with fountains and a sun shelf, comfortable cabanas, an outdoor kitchen with gas grills and a lounge area, a clubhouse with a game room that includes a pool table and gourmet kitchen, a fitness center with an adjoining kids club with a TV and games, dry cleaning service, a spacious dog park, package lockers and more. The amenities paired with the proximity of this community to fine dining and grand shopping gives this community an urban, refined living experience.
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I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”
November 2017
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”
www.haaonline.org
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the
I wasn’t expecting surprised that they said, laughing. “ I’v business for 15 yea anything. For me, i or get it right, I’m s don’t need recogni resident and my m
On Site with ABODE
Photos provided by Enclave at Mary’s Creek
151-300 UNITS Built 1990 to 1999
Property: Enclave at Mary’s Creek Owner/Management: Pinnacle Location: 2900 Pearland Parkway, in Pearland just miles from East Broadway Street and just east of South Main Street. Units: 240 Built: 1999 Web: www.enclaveatmaryscreek.com Interesting features: Located in the center of Pearland, this communty is nestled along the scenic Mary’s Creek, offering residents a serene relaxation spot where they can jog, walk or simply admire. Its central location in Pearland grants residents access to an urban living experience, and quick access to Houston’s major highways. Downtown Houston is just a quick drive away. Walking onto this property, residents can feel the warm hospitality of this community. At the Enclave at Mary’s Creek, charcter meets sophistication. Amenities include a 24-hour fitness center, a business center, a coffee bar, a clubhouse, a park for children, a movie theatre, a picnic area with a barbecue area and so much more. I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”
www.haaonline.org
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that
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On Site with ABODE
Photos provided by Gables CityWalk Waterford Square
MORE THAN 300 UNITS Built 1990-1999
Property: Gables CityWalk Waterford Square Owner/Management: Gables Residential Location: 2300 W. Alabama Street, just miles from Interstate 69 in the Upper Kirby neighborhood Units: 96 Built: 1985 Web: www.gables.com/communities/texas/houston/gables-citywalk-waterford-square/ Interesting features: Fun fact: Gables CityWalk Waterford Square is located in the 5th most walkable neighborhood in Houston, making the neighborhood the property’s biggest asset. Residents are less than a five-minute walk to top tier restaurants like AKA Sushie and Eddie V’s Prime Seafood. This property is in close proximity to public transportation, allowing residents to easily navigate the vast Houston-area. This community elevates affordable living to a higher standard with simple luxuries such as vaulted ceilings, fireplaces in select apartment homes, tiled and laminated flooring, 9-feet ceilings, washer and dryers and balconies. Community amenities include covered parking, a fitness center, a sparkling pool, a grilling area, free Wi-Fi amenitity areas and more.
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I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”
November 2017
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the
www.haaonline.org
On Site with ABODE
Photos provided by The Pointe at Steeplechase
MORE THAN 300 UNITS Built 1980 to 1989
Property: The Pointe at Steeplechase Owner/Management: Veritas Equity Management Location: 8901 Jones Road, in Jersey Village just miles from U.S. 290 Units: 316 Built: 1982 Web: www.rentsteeplechaseapts.com Interesting features: This newly updated community offers its residents innovation at an affordable price. Boasting a modern sophistication and contemporary design, this apartment community has spacious studios and one and two-bedroom apartment homes where residents can live, entertain and relax. The Pointe at Steeplechase Apartments offers a wide range of community amenities such as two refreshing pools, a fitness center and a grilling area. Each apartment home was rennovated to offer remodeled kitchens with granite countertops. This apartment community is perfectly situated near major freeways, including U.S. 290 and Beltway 8, making your commute quick and easy. Take advantage of shopping nearby at Willowbrook Mall or pick up some groceries at the nearby Kroger or H-E-B, both located just minutes away.
www.haaonline.org
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”
November 2017
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”
ABODE
I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was
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Harvey Heroes, continued from Page 53 at Woodland Springs. The other two properties are located in Yellowstone and Pearland. Unsurprisingly, their residents were not interested in moving to either of those parts of town, but Moran and his Vesta team worked with their residents to find them other temporary living options. Energy Corridor Francis Property Management – 7 Seventy We can’t talk about Harvey without mentioning the Energy Corridorarea. Similar to what happened in the Katy-area, the Energy Corridor wasn’t affected by Harvey until the storm passed, when the U.S. Army Corps of Engineers began an overnight release of water from the Addicks and Barker reservoirs into the Buffalo Bayou. These releases inundated many areas of town including the Energy Corridor and Memorial. 7 Seventy was just one of the many Energy Corridor-area communities that was submerged under water for weeks. Floodwaters drowned 58 out of 77 ground-floor apartment homes and the leasing office with about 4feet of water. The power was also out of the entire building. All residents, about 450 to 500 people, were evacuated by boat from the building on Monday and Tuesday, Sept. 4 and 5. After Regional Vice President Debbie Sulzer knew her residents were safe, Sulzer made an executive decision that ultimately saved the property. Francis purchased a 1,300-linear-foot-long AquaDam, had it shipped in from Mississippi and implemented the 3.5-foot-tall flood barrier around the southwest corner of the community on Wednesday, Sept. 6. Sulzer ran four gas-powered water pumps day and night, and after two full days, pumped the floodwater completely out of the first floor. The AquaDam, installation and water pumps costed Francis about $160,000, but it sped up the mitigation process and even though floodwater surrounded the entrance of 7 Seventy, residents were able to get back into the building to retrieve their belongings (this was on Sept. 8). See the full article here: https://www.bizjournals.com/houston/news/2017/09/08/how-a-property-manager-used-aquadam-to-save-a.html. Houston Strong We thank the on-site individuals who stepped up and exhibited resilience when it was desperately needed. The continued outpour of sympathy, charity and togetherness this storm ignited has kept Houston strong through all of this tragedy. “I spent days on-site, side-by-side with teams who were dealing with the catastrophe. I saw residents’ reactions that were heartwarming. To come to the manager at King’s Cove and hug her and say, ‘Oh my God, you’re okay,’ and there was this moment of we’re all going to be okay,” Incoming HAA President Michelle Pawelek of Greystar said. Property managers have been coordinating housing with residents while working outside or in a trailer with makeshift desks and chairs. The week the storm hit, managers across Houston were ordering lunches for their residents, handing out water bottles and offering any support possible. “For residents to say to us, ‘This is really hard for everybody, but you are doing a really great job and we appreciate what you are doing for us,’ makes every moment of what we do worth it,” Pawelek said. Residents were rejoicing to see each other and their on-site teams, millions of dollars have been raised in relief efforts and people from all over traveled to Houston to help out in any way they can. However, this storm caused a lot of desolation and it’s far from over. We hope that these stories of selflessness and kindness will be mirrored throughout the industry. If your company, management or supplier, has participated in any Harvey relief efforts, ABODE wants to know about it. Email us at comm@haaonline.org.
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The Go-Getters HAA’s MEMBERSHIP RECRUITERS
MAKING MEMBERSHIP MATTER Recruit all year round and become part of the Go-Getter Club.
Meetings are now quarterly! Be the top recruiter for each quarter and win one of the following items: 4 1st Quarter: Yeti 40 Hopper cooler 4 2nd Quarter: Apple Watch 4 3rd Quarter: Samsung 40” Smart TV 4 4th Quarter: $500 Holiday Cash Plus, for each new member you recruit, you’ll earn a chance to win gift cards ranging from $25 to $250! JOIN A TEAM and build relationships with like-minded members. Get involved with Go-Getters and make lasting industry connections. Visit www.haaonline.org/gogetterscorner to get all the information you need.
Mark your calendars!
HONORARY LIFE MEMBERS Members who have recruited more than 100 companies Claude Arnold Monette Reynolds Kenn Brown Sherry Stevenson Tina Cavaco Kirk Tate Kevin Fenn Suan Tinsley Diane Gilbert Sonny Unverzagt Anita Harrison Del Walmsley Dwayne Henson Nancé Wells Mike Koch H.P. Paul Young Merry Mount Jeanne Marie Zublin Dicks
The final meeting will be hosted at Cafe Adobe in the Marq-E Center 7620 Katy Fwy, Houston, TX 77024
December 7 3:30 p.m. Register online today! Sponsored by Foundation Specialists and Rasa Floors
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 or Lauren in the Membership Department at members@haaonline.org. 64
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Go-Getters Happy Hour Wednesday, September 20 at Cafe Adobe in the Marq-E Center 1. Top Team of the quarter for recruiting, Team #1 with 10 recruits 2. Top Recruiter of the third quarter Tina Cavaco with seven recruits 3. Event co-sponsor Impact Floors 4. Event co-sponsor AAA Plumbers
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The Go-Getters HAA’s MEMBERSHIP RECRUITERS
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Law, continued from Page 12 5. Proof of liability insurance. Registration will be considered complete when all the information has been sent to the email address. A response from DSHS is not necessary for companies to begin serving in the applicable counties. How can I find out if the company I want to hire is properly registered with the state? A list of properly registered companies will be posted on the DSHS consumer protection divisions hurricane response website. Notification of mold remediation projects is voluntary for the duration of the disaster declaration. What is the difference between a licensed mold contractor and one that is not licensed? A contractor licensed by the state of Texas took approved courses and proved their knowledge to the state, of mold and mold related activities, through examination. These Texas licensed mold remediation contractors can issue a Certificate of Mold Damage Remediation. The CMDR is a Texas Department of Insurance form that some owners or insurance companies may want to use to verify that mold has been removed correctly. An unlicensed person may be able to do the work, but will not be able to certify a property is free of mold damage using the CMDR form because they may not be following the Texas Mold Assessment and Remediation Rules. Be careful! Whoever performs work at your property should be properly qualified to do the work correctly. You don’t want to have a mold claim from a resident three months down the road because remediation work was not done correctly. Will FEMA assistance cover upgrades if I am required to upgrade when repairing damage caused by the storm/flooding? We have received word from the Texas Division of Emergency Management that owners can request funding to bring properties up to established codes and standards if they are required to do so in order to repair damage caused by the storms. However, TDEM suggests that the issue of paying for upgrades be brought up at the beginning of your interaction with the applicable FEMA case manager and to submit copies of the codes requiring the upgrade. Be careful whenever relying upon unwritten representations from governmental entities. Always try to get as much detail as you can in writing with respect to any governmental assistance program before relying on the program. Unfortunately, in these trying times, written representations and policies may be hard to come by. While everyone is trying to help, you need to keep searching for representations you can count on.
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The Ambassador ONE Society HAA’s WELCOMING COMMITTEE
JOINTHECLUB!
Don’t miss the final meeting of the year. Come join the fun and promote association involvement.
Ambassador ONE Society members with at least 10 points, ranked by points earned:
1. The Ambassador “ONE of the Month” is Vince Mallace, RotoRooter Services Co with 40 points. 1
Shera Lehman Vince Mallace Raedean Mitchem Chelsea Quinteros Angie Lavrack Mat Tilley April Shane Wilton Paul Marks Marivel Bownds Arely Pena Logan Richter Liz Levins Shala Johnson Doug Oehl Shannon Bass Alex Antonov Kristin McLaughlin Keith Sobolik Angel Lopez Marcus Wheatfall Will McGinnis Kurt Allshouse David Lindley Ryan Weis Zamara Nitcholas Matt Mistica Megan Stone Paul Gilmore Juana Estrada Phillip Price Blake Subinsky Marcy Holmes Diamela Bravo Hector Mendez Peggy Charles Pete Lopez Chad Emrie Jason Norbeck Joey Rodriguez Shaun Callaway Whitney Yeakey Kelly Murphy Danyell Wilkerson Derrick McClain Teresa Harrell
Texscape Roto-Rooter Apartment Data Services Gail Construction The Liberty Group WeDoTrash PrestoX eConserve Valet Living The Liberty Group JMI Contractors
330 317 197 156 127 95 91 86 78 53 53 52 Redi Carpet 49 Power Express 38 Lee & Barrier Builders 33 Lone Star Pro Services 32 Mohawk Industries 32 Ted W Allen & Associates 29 Metropolitan Staffing Solutions 21 Triple Seal Insulation 21 Incite Energy LLC 20 The Allshouse Group 19 FSI Construction 17 Impact Floors 17 Greenlogic Lighting & Electric 17 Bio-One 16 The Liberty Group 16 Vinson Guard Service 16 American Technologies Inc. 15 HD Supply 14 HD Supply 13 Designs by Holmes Interior Design 13 Green City Security 12 PPG Paints 12 Sunny Rock International 12 HD Supply 12 BH North America 11 Impact Floors 11 The Urban Foresters 11 Earthworks Inc. 11 PPG Paints 11 Arbor Contract Carpet 10 ApartmentData.com 10 Texas Commercial Contractors Inc. 10 Brookway Horticultural Services 10
Ambassadors earn points by sharing leads, making introductions and visiting communities to promote HAA events and news.
THE AMBASSADOR ONE SOCIETY is an organized network exchange that helps supplier partners build their business contacts within HAA. It’s the perfect way for new suppliers to get started with the association. Group members share leads, make introductions and support HAA and its members. For details, attend an orientation and one of the meetings listed here, or contact Amanda in the Membership Department at 713-595-0316, or email asherbondy@haaonline.org. 68
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2. First Place Team “The Cool Kids Corner” with 60 points 3. Second Place “Team HC²” with 55 points 4. Third Place Team “Cash ME Onsite” with 22 points
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Portfolio Changes The following owner/management companies have added the listed properties to their portfolios: • American Realty Investors: Remington Park, 428 units at 5510 S. Rice. • Asset Plus Corp.: The Parc at South Green Apartments, 428 units at 12510 S Green Drive. • Best Synergy Investment LLC: La Casita Homes I, 83 units at 2635 Tim St. and La Casita Homes II, 32 units at 3357 Frick Road. • Better World Properties LLC - Sumar: Aster on Aldine Apartments, 163 units at 4505 Aldine Mail Road and Bayberry Apartments, 61units at 838 Oak St. • BH Management Services LLC: Vineyard Trace Apartments, 239 units at 15414 Kuykendahl Road. • Centra Partners LLC: Villas at Park Place, 90 units at 8345 Park Place Blvd. • Francis Property Management: Telfair Lofts, 317 units at 7500 Branford Place in Sugar Land. • Gatesco: Broadway Village Apartments, 210 units at 8400 Broadway St. and Crosby Green Apartments, 128 units at 3529 Crosby Cedar Bayou in Baytown.
• Greystar: Eclipse Apartments, 330 units at 1725 Crescent Plaza Drive and Briar Forest Lofts Apartments, 352 units at 13202 Briar Forest Drive. • In the Loop Management: 611 Hawthorne Apartments, 8 units at 611 Hawthorne and 300 Pecore Apartments, 30 units at 300 Pecore. • Kaplan Management Co. Inc.: 2121 Ella Apartments, 121 units at 2121 Ella Blvd. and Tivoli at Vintage Park Apartments, 158 units at 10110 Charterwood Drive. • Monument Property Management: Casa Verde Apartments, 384 units at 2 Goodson Drive. • Relik Realty LLC: Park Place Arms Apartments, 42 units at 8401 Park Place Blvd. and Gulf Breeze Apartments, 64 units at 1727 Main St. in La Marque. • Roscoe Properties: Metropole Apartments, 289 units at 3616 Richmond. • SRG Partnership Ltd.: Esperanza Apartments at Birnam Wood Blvd., 36 units at 22901 Birnam Wood Blvd. in Spring. • Stellar Equity Management LLC: Fountain Oaks Apartments, 265 units at 5601 Chimney Rock. • TriVest McNeil Real Estate: Brazos Ranch Apartment Homes, 308units at 7404 Town Center Blvd. in Rosenberg.
Want to see current and previous issues of ABODE online? Go to http://issuu.com/haa_abode. Or view this issue on your computer, iPad or smartphone at http://issuu.com/haa_abode/docs/abode_nov2017.
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In the News The Mission of Yaweh celebrated their faithful volunteers last month during our 3rd Annual Volunteer Celebration & Dorcas Award. Former HAA President and founding member Melvin Kieke was the individual volunteer Dorcas Award recipient. Keystone Resources has expanded their in-house graphic services through a partnership with Alpha Graphics Galleria to include digital printing. PPG hosted a booth at the Gulf Coast Advanced Manufacturing Conference on Oct. 6 to mark National Manufacturing Day, with the goal to educate students on its Houston plant’s manufacturing process, products and career opportunities.
Have something to report from your company or for yourself? Email us your news at comm@haaonline.org.
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Education, continued from Page 19
DECEMBER ACES Holiday Luncheon Friday, December 1 11:30 a.m. to 1:30 p.m. Brennan’s of Houston 3300 Smith St., 77006 Program fee: $55 Sponsored by FSI Construction and Texscape Services Please note that this program is open only to executives in property management, such as owners, presidents, vice presidents, regionals, supervisors, marketing/training directors and etc. New for 2017: All eligible ACES attendees will be able to invite any member of their staff.
HAA NEXT: Mix N Jingle Thursday, December 14 6:30 p.m. to 9 p.m. Location: TBD Sponsored by Brookway Horticultural Services This holiday season, join your HAA Young Professionals ages 35 and under for a FREE festive night out. Live music, appetizers, drinks, holiday cheer, door prizes and more! Whether you want to make new friends or reconnect with those you've missed all year, it's sure to be a memorable night you won't want to miss.
Volunteer HAA The Houston Apartment Association’s committees and clubs are some of the most productive tools we have to ensure that we remain the nation’s largest and most effective apartment association. Committee and club members face the challenge of getting involved to carry out the duties and purpose of each club and committee. Some general responsibilities of committee and club members include a commitment to attend all meetings and help develop marketing strategies (i.e. telemarketing, developing handouts, fliers, articles). To learn more about serving on HAA committees and clubs, please contact the HAA office at 713-595-0300 or see online at www.haaonline.org.
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Help the Houston Furniture Bank in “Making Empty Houses Homes� Hurricane Harvey has left many Houston-area residents in desperate need and the Furniture Bank needs your help. Do you have left over furniture from resident moves? Need to clean out your storage units? The Houston Furniture Bank needs your donations to help those in need. The Furniture Bank provides free pick-up of gentlyused home furnishings and offers mattress recycling for a small donation, saving our landfills, helping the environment and creating jobs for hard to employ workers, all while helping needy area residents. The HFB also offers a Furniture Outlet Center which is open to the public and offers low-cost options.
To schedule a pickup, call 713-842-9771, email service@houstonfurniturebank.org and visit www.houstonfurniturebank.org for more details.
Items they accept: Beds of all sizes Bed frames of all sizes and materials Chest of drawers and dressers Night stands Reading lamps Regular lamps Vanities Couches Love seats Living room chairs and recliners Coffee and end tables Small entertainment centers Sofa tables Hallway drawers Kitchen table and chairs Dining table and chairs Dishes Pots and pans Small display cases and cabinets Rugs
ad index nov pg 74.qxp_Ad Index pg 74 10/18/17 8:57 AM Page 1
Index of Advertisers By CATEGORY
A/C Supplies
Landscape Contractors
Swimming Pool Service
Century A/C Supply . . . . . . . . . . . . . . . . . . . . . . . . . .57 281-530-2859 . . . . . . . . . . . . . . . . . .www.centuryac.com
Outdoor Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 713-955-0990 . . . . . .www.outdoorelementstx.com
Poolsure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 800-858-POOL . . . . . . . . . . . . . . . . .www.poolsure.com
Texscape Services . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 281-846-3779 . . . . . . . . . .www.texscapeservices.com
Answering Service On Hold USA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71 800-755-4142 . . . . . . . . . . . . . . . . .www.onholdusa.com
Laundry Equipment & Supplies
Trash Hauling Waste Management . . . . . . . . . . . . . . . . . . . . . . . . . .72 713-354-5230 . . . . . . . . . . . . . . . . .www.thinkgreen.com
WASH Multifamily Laundry Systems . . . . . . . .63 281-967-9507 . . . . . . . . . . . . . .www.washlaundry.com Carpet Installation
HAA Products & Services
Dixie Carpet Installations . . . . . . . . . . . . . . . . . . . . .7 281-261-6334 . . . . . . . . . . . . . . . . .www.dixiecarpet.com
Locks & Locksmiths
Rental Credit Reporting . . . . . . . . . . . . . . . . . . . . . .47 713-595-0300 . . . . . . . . . . . . . . .www.haaonline.org/rcr
CKI Wholesale Lock Supply . . . . . . . . . . . . . . . . . .72 713-462-0704 . . . . . . . . . . . . . . . . . . . . .www.ckilock.com Electric Contractors Affordable Quality Electric . . . . . . . . . . . . . . . . . . .13 713-695-5992 . . . . . . . . . . . . . . . . .www.acuityelectric.com Brandt Electrical A/C & Heating Services . . . .33 281-693-3383 . . . . . . . . . . .www.brandtelectrical.com
Maintenance Supplies Johnstone Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 713-803-6231 . . . . . . . . . .www.johnstonesupply.com
Management Companies Fire Alarm Systems American Fire Systems . . . . . . . . . . . . . . . . . . . . . .53 713-466-9898 . . . . . . . . . . .www.americanfiresys.com
Nova Asset Management . . . . . . . . . . . . . . . . . . . .72 713-464-7790 . .www.novaassetmanagement.net
HAA reserves the right to reject any advertising if its content is inappropriate or inconsistent with HAA’s standards for publication or HAA’s business interests, in HAA’s sole opinion.
Movers Foundation Contractors Foundation Specialists . . . . . . . . . . . . . . . . . . . . . . . .5 832-767-1115 . . . . . . . . .www.foundationexperts.com
Ameritex Movers . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 713-484-MOVE . . . . . . . . . .www.stressfreemove.com
Paving Contractors General Contractors Camp Construction Services . . . . . . . .Back Cover 713-413-2267 . . . . . . . .www.campconstruction.com Cotton Commercial USA Inc. . . . . . . . . . . . . . . . . .10 877-511-2962 . . . . . . . . . . .www.cottoncompanies.com Disaster America . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67 888-4-CATUSA . . . . . . . . . . . .www.disasteramerica.com
Pavement Services . . . . . . . . . . . . . . . . . . . . . . . . . . .70 281-758-8434 . . . . . . . . . . . . . . . . .www.nopothole.com
Plumbing Contractors AAA Plumbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 713-462-4753 . . . . . . . . . . . . . . . . . .www.aaaplumbers.com
FSI Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 832-767-1115 . . . . . . . . . . . . .www.fsiconstruction.com
Resident Screening Service
Gambit Construction . . . . . . . . . . . . . . . . . . . . . . . . .15 832-987-4242 . . . . .www.gambitconstruction.com
CoreLogic . . . . . . . . . . . . . . . . . . . .Inside Front Cover 888-297-8821 . . . . . . . . . . . . . . . . . . .www.corelogic.com
Gemstar Construction Development . . . . . . . . .41 281-821-1195 . . . . . .www.gemstarconstruction.com
Resurfacing
RENCON . . . . . . . . . . . . . . . . . . . . . .Inside Back Cover 713-666-3636 . . . . . . . . . . . . . . . . . . . . . .www.rencon.com
Perfect Surface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 713-952-0202 . . . . . . . .www.perfectsurfaceinc.com
TPI Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 713-668-7986 . . . . . . . . . . . . . . . . . . . . . . .www.tpiinc.com Screens Glass – Plate, Window, Etc.
Ameristar Screen and Glass . . . . . . . . . . . . . . . . . .71 713-683-6767 . . . . . . . . . . . . .www.ameristarglass.com
Ameristar Screen and Glass . . . . . . . . . . . . . . . . .20 713-683-6767 . . . . . . . . . . . . .www.ameristarglass.com Security Control Equipment/Systems SentriForce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 888-671-2202 . . . . . . . . . . . . . . . . .www.sentriforce.com
Insurance Harco Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71 713-681-2500 . . . . . . . . . . . . . . . . . . .www.harco-ins.com
www.haaonline.org/rcr
Want to see current and previous issues of ABODE online? Go to http://issuu.com/haa_abode. Or view this issue on your computer, iPad or smartphone at http://issuu.com/haa_abode/docs/abode_nov2017.
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MarketLine By BRUCE MCCLENNY, President, ApartmentData.com
HOUSTON
• • • • • •
(As of August 2017, pre-Harvey reporting)
Snapshot 88.3% $999/mo. 113.3¢/sq.ft./mo. 882 sq.ft.
Past 12 Months: 1.7% rental rate growth 5,625 units absorbed
•
98.0 – – 90.0
96.0 –
– 89.0
94.0 –
– 88.0
•
Recently Opened (12 months): 73 communities 19,501 units
• • • • • • • • • • •
Under Construction: 39 communities 10,445 units
Occupancy (%)
Operating Supply: 2,716 communities 636,699 units
Rental Rate (¢/sq.ft./mo.)
Occupancy: Price: Rental Rate: Size:
• • • • • •
– 87.0 Sep 17
Aug 17
Jul 17
Jun 17
Apr 17
May 17
Mar 17
Feb 17
Jan 17
Dec 16
Nov 16
Oct 16
Sep 16
Aug 16
Jul 16
Jun 16
Apr 16
May 16
Mar 16
Feb 16
Jan 16
Dec 15
Proposed Construction: 56 communities 16,436 units
Nov 15
Oct 15
92.0 –
History of Effective Rental Rate & Occupancy for All Units
Hottest Submarkets Over the Past Three Months
Concessions
Annualized % of Market Rank Submarket Absorbed 1 Highland Village/Upper Kirby/ West U 18.7% 2 Tomball/Spring 15.7% 3 Galleria/Uptown 15.1% 4 Montrose/Museum/Midtown 8.1% 5 Sugar Land/Stafford/Sienna 8.9%
Rental Rate Growth % 3.1% 3.8% 0.7% 4.4% 1.3%
Total Units Class w/Concessions All 186,512 A 49,541 B 55,109 C 70,493 D 11,369
% of Total Units 29% 34% 23% 34% 25%
Average Special -2.4% -4.4% -1.1% -1.9% -1.9%
Citywide Effect -8.0% -11.3% -5.1% -5.6% -7.4%
One Month Free = -8.33%
THE FIRST TABLE ABOVE GIVES A SNAPSHOT of the current market conditions. The graph displays the overall occupancy and effective rental rates over the past 24 months. These statistics are derived from a continuous survey of all apartment communities in the Houston region. The effective rental rates are the calculated net of concessions and utility adjustments. The second table lists the five hottest submarkets in the Greater Houston area. There are a total of 41 submarkets, and the ranking is based on the best combination of rental rate growth and absorption over the past three months. The third table distributes and analyzes concessions (specials) by classification. Concessions generally are represented by three types of specials: move-in, months free or floor plans. The effect of these specials is captured and prorated over a lease term to arrive at a percentage reduction in market or street rents.
TEXAS
Dallas/Ft. Worth
San Antonio
Austin
Occupancy: Price: Rental Rate: Size:
Occupancy: Price: Rental Rate: Size:
Occupancy: Price: Rental Rate: Size:
92.1% $1,077/mo. 123.7¢/sq.ft./mo. 871 sq.ft.
90.6% $913/mo. 107.7¢/sq.ft./mo. 848 sq.ft.
91.7% $1,195/mo. 137.0¢/sq.ft./mo. 872 sq.ft.
Past 12 Months: 5.3% rental rate growth 13,744 units absorbed
Past 12 Months: 2.3% rental rate growth 3,715 units absorbed
Past 12 Months: 2.0% rental rate growth 6,911 units absorbed
Operating Supply: 2,947 communities 685,704 units
Operating Supply: 858 communities 181,110 units
Operating Supply: 914 communities 211,528 units
www.haaonline.org
ApartmentData.com has been providing apartment data and marketing products since 1986. ApartmentData.com covers Texas’ four largest metro areas and provides real-time access for property specific information, market surveys and historic submarket data for more than 1.3 million apartment units. For more information, contact Bruce McClenny at 800-595-8730. © 2017 ApartmentData.com November 2017
ABODE
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Back Page
with News from around the COMMUNITY
Join the HAA Food Drive for people and pets and help victims of Hurricane Harvey HAA is asking all members to collect food, for both people and pets, to donate to the Houston Food Bank and The Rescue Bank. HAA held its first food drive in 1983, and the Houston Food Bank lists HAA as one of the top 25 donors to the organization. If your property or company plans on a community effort this holiday season, why not collect food for displaced residents and help us make HAA and the apartment industry the largest contributor in the city. Don’t forget our four-legged friends, too! Please contact Susan Hinkley at 713-595-0313 or shinkley@haaonline.org to participate. See Page 16 for more information.
ONLINE STATISTICS for the Houston Apartment Association Website and Social Media www.haaonline.org Total visits . . . . . . . . . . . . . . . . .17,349 Visitors . . . . . . . . . . . . . . . . . . . .12,420 Most visited pages: 1. Jobline Board 2. Rental Credit Reporting 3. Renter Online Complaint Form
HAA Jobline Apply button clicks . . . . . . . . .3,268 Job postings for the month . . .110 Resume postings . . . . . . . . . . . . .151 Job seeker signups . . . . . . . . . . . .85
Twitter @HAAOnline www.twitter.com Followers . . . . . . . . . . . . . . . . . . .5,435
Facebook http://tinyurl.com/2ae7gnq
Houston Apartment Association Group members . . . . . . . . . . .2,056
Linkedin http://tinyurl.com/2667ppr Houston Apartment Association Group followers . . . . . . . . . . . . .1,724
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. Statement of Ownership, Management and Circulation signed and filed with the USPS by Deborah Nix, Editor. 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. Periodicals Postage Paid at Houston, Texas. Copyright Š 2017 by HAA.
ABODE Magazine ABODE Magazine
0 2 4
Monthly
9 6 2
12
09/20/2017 $50.00
Houston Apartment Association/Houston Mulithousing Corp. 4810 Westway Park Blvd., Houston, Texas 77041
Deborah Nix 713-595-0300
Houston Apartment Association/Houston Mulithousing Corp. 4810 Westway Park Blvd., Houston, Texas 77041
September 2017
Monthly trade association periodical publication for apartment/multifamily industry members of HAA/HMHC
4,727
4,725
1,111
1,134
3,448
3,443
0
0
0
0
4,559
4,577
Deborah Nix, Editor/Director of Publications 4810 Westway Park Blvd., Houston, Texas 77041
18
19
19
20
Deborah Nix, Editor/Director of Publications 4810 Westway Park Blvd., Houston, Texas 77041
16
0
Jeff Hall, Publisher/Executive Vice President 4810 Westway Park Blvd., Houston, Texas 77041
Houston Mulithousing Corp.
4810 Westway Park Blvd., Houston, Texas 77041
Houston Apartment Association
4810 Westway Park Blvd., Houston, Texas 77041
95
67
148
106
4,707
4,683
20
42
4,727
4,725
96.9%
97.7%
x November 2017 09/20/2017
x
x
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November 2017
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Houston Apartment Association 4810 Westway Park Blvd. Houston, Texas 77041
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