National Multi Housing Council 2009 Annual Report
rethinking rent leadership letter ........................................................................................1 what have you done for me lately? ..........................................................2 rethinking rent ..........................................................................................4 imagine a world with no capital ................................................................9 your voice in washington ........................................................................11 the economist’s corner: the great recession..........................................20 the business of your business ................................................................22 come join us: future meetings calendar..................................................24 taking financial measure ........................................................................26 meet our leadership................................................................................27 executive committee ..............................................................................29 board of directors ..................................................................................30 2009 new members ..............................................................................33 thank you to our 2009 sponsors ............................................................34 the council’s staff: professionals serving professionals ..........................36
leadership letter Rethinking rent. In many ways that was the
theme of 2009. Ten years after NMHC launched its “Balanced Housing Policy” initiative, it finally went mainstream in 2009. Consumers, policymakers, thought leaders and the media all acknowledged that the homeownership envelope had been stretched far too far. Renters, long perceived as “second-class citizens,” suddenly look financially savvy. Tens of thousands of people burned by buying have returned to renting. And a whole generation of young Americans was disabused of the notion that homeownership is a “can’t-miss investment.” Unfortunately, the cost of achieving this long-sought goal was a global financial meltdown that created one of the most difficult operating environments for apartment firms in the post-war era. Vacancy rates rose to the highest level on record, property sales came to a near halt and capital all but disappeared. Difficult times like these are when organizations like NMHC prove their value, and in 2009 the Council delivered on its promise to be the industry’s strongest advocate.
The Council helped avert a looming systemic capital crisis with its five-point Capital Markets Plan. And through its close relationships with elected officials and leaders at the Federal Reserve, Treasury Department and other federal agencies, it is developing the framework for financial regulatory reform that will help ensure the industry has continued access to sufficient capital. As if an almost complete shutdown of the capital markets weren’t enough, 2009 was also the most challenging year the Council has faced on Capitol Hill since we were formed. And that includes 1986’s Tax Reform Act. A new, more activist Congress meant we had to simultaneously battle card check unionization legislation, proposals to triple the taxation of the promote/“carried interest,” unachievable federal energy code requirements and even a federal plan to force apartment properties into bankruptcy prematurely so they could be converted to affordable housing. 2010 promises to be another challenging year as the industry waits for the capital markets to recover and job growth to begin. Apartment companies will have to find new ways to cut costs and retain and recruit residents. And, once again, NMHC will be there to
help them manage through the pre-recovery phase with its conferences, webinars, white papers and more. The good news is that observers agree that our industry will be the first to bounce back when the economy returns to good health. And after the recovery, we'll have one of the best multifamily environments in nearly 30 years as today’s insufficient demand is replaced by a supply shortage. There are 75 million or more echo boomers just entering their prime household formation years, and they are generally seeking the more environmentallyand financially-friendly lifestyle offered by apartments. And they will be entering the housing market after the credit crisis all but shut down construction of new apartments. Until then, NMHC will remain the apartment industry’s best ally as we collectively work to seek creative solutions to surviving until we can thrive again.
Ric Campo 2008-2009 NMHC Chairman
Peter Donovan 2010-2011 NMHC Chairman
Doug Bibby NMHC President
what have you done for me lately? As the apartment industry’s leading advocate, NMHC takes seriously our mission to not only advance your legislative and regulatory interests, but also to provide you with the best practices, research and tools you need for your business to prosper. Our annual report explores these accomplishments in more depth and offers an outlook for 2010, but the following is a short-hand list of some of the ways we served you, and the industry as a whole, last year. Top 10 NMHC Legislative and Regulatory Victories
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Averted systemic failure in the apartment sector through a high-level capital markets initiative.
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Defeated overly generous homeownership incentives and balanced them with new incentives to benefit the rental housing sector.
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Helped blocked “card check” unionization legislation.
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Helped stall carried interest tax increase that would affect many partnerships in other industries, including 2.5 million real estate partnerships.
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Defeated federal effort to prematurely force apartment properties into bankruptcy in order to convert them into affordable housing.
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Transformed proposal to create a national energy-efficiency building code that exceeds what is achievable with current technology and is economically unsupportable.
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Bolstered the Low-Income Housing Tax Credit (LIHTC) program with two new support programs in the economic stimulus bill and an IRS clarification that Tax Credit properties can submeter utilities.
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Secured “green money” for multifamily in the stimulus bill and expanded and improved the federal weatherization program to make it more accessible to apartment properties.
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Defeated onerous proposals to require apartment owners to notify current or prospective renters whenever a property is in default or foreclosure— even quickly remedied nonmonetary defaults.
Averted Section 8 funding shortfall and supported legislation to make the Section 8 program more palatable to private apartment owners.
National Multi Housing Council 2009 Annual Report rethinking rent
Clippings from Investors Business Daily (top) and The Seattle Times (bottom)
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NMHC’s Mark Obrinsky briefing U.S. Senate Caucus.
Top 10 NMHC Industry Tools and Resources
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Advanced apartment industry sustainability by helping to launch the new National Green Building Standard, creating a “green practices” portal for owners, developers and managers on NMHC’s web site and convincing the EPA to create a multifamily-specific ENERGY STAR performance tracking tool.
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Helped firms stay ahead of volatile market conditions with NMHC’s apartment strategies conference, quarterly surveys, teleconferences and newsletters.
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Informed business decisions with original research on multifamily finance needs, insurance trends and more.
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Created an online Pandemic Flu Resource Center and members-only listserve to allow firms to discuss their preparedness planning.
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Created a new tool, A Case for Investing in U.S. Apartments, to support members in their efforts to attract foreign capital to the apartment market.
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Helped firms recruit and retain employees with our annual compensation survey, our online career center and a special compensation “pulse check” survey taken in the final months of 2009.
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Launched a new NMHC web site with an expanded Research and Statistics section, new advocacy tools, networking tools and new tools for supplier partners. Created an NMHC presence on social networking sites to facilitate member firm networking between meetings.
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Produced compliance guidance to help firms comply with new federal lead-based paint regulations and federal identity theft prevention regulations.
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Explored whether the dramatic economic downturn has had an impact on enrollment and on-campus dormitory vacancy rates with our original research report, Student Housing Report: Has the Recession Had an Impact?
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Published a research report, Automated Payments: Progress and Challenges, that provides the results of a survey of 110 leading apartment firms about their experience in automating the payment of rent and other fees.
NMHC 2008-2009 Chairman Ric Campo interviews Vice President Al Gore at NMHC’s 2009 Annual Meeting.
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rethinking rent Since the end of World War II, the “American Dream” has been defined as owning a house. But it didn't start out that way. When historian James Truslow Adams coined the phrase in 1931 it meant “a better, richer, and happier life for all our citizens of every rank.”
Adams wrote of the “dream” of America as an opportunity to overcome the old world’s social orders. He specifically said that it has “always meant more than the accumulation of material goods.” Adams’s American Dream became co-opted in the post-war years after massive federal intervention in the housing market helped turn America into a nation of homeowners. Before that, there was no stigma attached to renting; a house—whether rented or owned—was simply a place from which to pursue the dream of personal achievement. Returning to the Way We Were
In 2009, the American Dream returned to the way it was; the way it should be. As house prices collapsed and the so-called dream of homeownership turned into a financial and emotional nightmare for millions, people began dreaming of more sustainable and rewarding lives. They discovered that you don't have to buy a house to achieve the American Dream. Americans of all income levels—even the wealthy—exchanged their mortgages for rent payments, and the conveniences, amenities and flexibility of apartment living once again became chic.
Clippings from The Washington Post (top right), The Los Angeles Times (middle left), and The New York Times (bottom)
A Pall on Ownership
Homeownership’s near sacred reputation has been tainted by the bursting of the housing bubble. The evidence that homeownership is a risky investment is everywhere. House prices have plummeted 30 percent since the housing market’s peak and are expected to drop another 10 percent. U.S. homeowners have lost about $5.9 trillion in value since the housing market’s peak in March 2006, according to Zillow.com. Eye-opening statistics are abundant: One in seven loans was in foreclosure by the end of September 2009, the highest on record, according to the Mortgage Bankers Association. Moody’s Economy.com expected that 2.4 million homes will have been “lost” in 2009 alone through foreclosures, short sales or deeds in lieu of foreclosure. This follows the 3.2 million households who received foreclosure notices in 2008. Some predict there will be 10 million or more foreclosures by the end of this cycle. Nearly 11 million homeowners—one in four—are “underwater” on their mortgages, according to FirstAmerican CoreLogic, and analysts at Deutsche Bank Securities expect that number to rise to 21 million by the end of 2010. In fact, price erosion is so prevalent that 11 percent of borrowers who took out mortgages in 2009 already owe more than their house is worth, adds FirstAmerican.
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rethinking rent Naturally, many of these disillusioned owners will think long and hard before buying another house. But there is also a psychological ripple effect to their experiences. Almost everyone knows someone who lost their house or is debating walking away from an underwater mortgage; those associations will color future housing decisions for millions more. And the children of all the foreclosed owners have learned that owning a house is not a guaranteed path to wealth or happiness. Already, the bursting of the housing bubble is reshaping our attitudes toward ownership. A 2009 survey by the National Foundation for Credit Counseling showed that almost half of all American adults no longer believe owning a house is a realistic way to build wealth. Another 42 percent no longer own a house and don’t expect to ever own one again. Rental Resurgence
More than a housing bubble is at work here. Demographics, tightened credit markets, changing lifestyles and new environmental awareness suggest that the U.S. is on the cusp of a fundamental change in the housing market. Our society is changing in profound ways that mean the kind of housing we want in the future is very different from the kind we’ve been building for the past 50 years. The largest generation of children in the history of the U.S. will be entering the housing market in the next few years.
49%: American adults who no longer believe owning a home is a realistic
42%: Portion of those American adults who no longer own a home and don’t expect to ever own one again. Source: National Foundation for Credit Counseling/Harris Interactive
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Clippings from The Wall Street Journal (top) and The New York Times (bottom)
way to build wealth.
By 2015, there will be 67 million people aged 20-34—the prime years for renting— and these young renters aren’t necessarily interested in a house in the suburbs. The painful recession has also taught them that they need to be more mobile to respond to fast-shifting economic opportunities. At the other end of the spectrum, the number of seniors who no longer want to maintain a house is beginning to skyrocket, creating new demand for rentals close to the services they need. The biggest force at work, however, is a dramatic change in what constitutes the “typical” American household. Married couples with In a sign of the times, a Twitter poll overwhelmingly favors renting as the children—the backbone of the post-war suburnew American Dream. ban explosion—now account for only one in four households; by 2020, that drops to one in five. In their place are a growing number of nontraditional households who are more likely to choose renting—single parents, couples without children and empty nesters.
2.83 million new renter households were created in the last four years, the biggest such gain in 24 years. The debunking of the homeownership myth is liberating Americans to challenge the conventional wisdom and instead choose the housing that best suits their lifestyle. For millions, that's an amenity-rich apartment in a vibrant mixed-use neighborhood. How fast are Americans becoming renters? In 2006, Harvard’s Joint Center for Housing Studies predicted an increase of 1.8 million renters by 2015. Instead, we saw a surge of 1.5 million renters from 2005 to 2007 alone. A federal housing survey reports that 2.83 million new renter households were created in the last four years, the biggest such gain in 24 years. Sustainable Housing: Economically and Environmentally
America’s renewed embrace of apartment living comes at a time when rental housing is not only desirable, but necessary. If we are serious about reducing our greenhouse gas emissions, we need new land-use patterns that emphasize compact development, and that typically means apartments. Apartments allow us to spend less time in our cars, which not only makes for a better lifestyle, but also could help save the planet. Apartment residents also use less energy in their homes; per-person energy use is 49 percent higher in single-family detached houses than in apartments. Beyond climate change, however, apartments offer other environmental benefits. They help preserve greenspace, and, by reducing the amount of paved surfaces subject to polluted runoff, reduce damage to our streams, lakes and rivers.
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And then there are the infrastructure savings. Sprawl is expensive! It costs a lot of money to extend water, sewer, electric, highway, police and fire protection farther and farther out. According to the U.S. Department of Housing and Urban Development (HUD), it costs $13,740 to service a detached house and just $6,405 to service an apartment. The Brookings Institution estimates the U.S. can save over $100 billion in infrastructure costs over the next 25 years by growing more compactly. Meeting the Demand
The U.S. will need millions of new apartments in the coming decades. Professor Arthur Nelson from the University of Utah predicts that half of all new homes built between now and 2020 will have to be rental units to meet emerging housing demands. To meet this demand, we need policy shifts at all levels of government. According to the Congressional Budget Office, in 2009 the federal government devoted almost four times as much to support homeownership (about $230 billion) than it did to support rental housing ($60 billion). Even in a deep recession, Congress spent more than $15 billion in 2009 on new homebuyer tax credits even though 85 percent of the recipients would have bought a house without the credit!
The imbalance isn’t just at the federal level. Thousands of cities continue to embrace zoning and land-use regulations that favor sprawling, car-dependent development and discourage apartment construction.
For a century, Americans lusted to own homes. Now, a choir of recession-era voices sings the joys of rentership. Nicolas Retsinas Director of the Joint Center for Housing Studies at Harvard University Former Federal Housing Commissioner
Most immediately, we need a fully functioning credit market that allows apartment firms to get back in the business of building apartments. Without that, the reverberations of the near-shutdown of new apartment construction in 2009 could lead to a critical shortage of rental housing as early as 2012. Consumers are already rethinking rent. Now we need federal, state and local housing policy to catch up.
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Clipping (above) from USA Today
We don’t need homeownership incentives to be a well-functioning country or economy. We need only look to Europe to see that a large number of renters will not undo our society—the homeownership rate in Switzerland is 35 percent; in Germany it is 42 percent, yet neither country suffers a lack of civic-mindedness.
imagine a world with no capital The unthinkable—the complete freezing of the capital markets—nearly happened in 2009. It started when the commercial mortgage-backed securities (CMBS) market shut down in late 2007. It worsened after the collapse of Lehman Brothers and the federal takeover of Fannie Mae and Freddie Mac in late 2008. By 2009, the cumulative effects were being felt. Life insurance companies and banks exited the market. Securitized financing was a thing of the past. The risk of systemic failure in the apartment sector was very real. Capital for new apartment construction all but disappeared. The frozen capital markets brought apartment transactions to a virtual standstill. An estimated $30-$40 billion in multifamily mortgages were set to mature over the next two years and needed capital to refinance. The situation was made even more difficult as property values dropped nearly 40 percent, causing many of these properties to owe more than they were worth. The liquidity crisis threatened to cause a wave of unnecessary bankruptcies and a serious shortage of housing in the coming years. Throughout 2009, NMHC conducted a high-profile initiative to restore the apartment sector’s access to capital. We made sure that policymakers understood that the apartment sector relies on the same federal institutions and agencies as the singlefamily sector—Fannie Mae, Freddie Mac and the Federal Housing Administration—but that our needs were very different, and our needs required their attention.
NMHC's GSE Task Force meets to develop a policy framework for GSE reform that accommodates the apartment sector’s needs. From left to right: Shekar Narasimhan (Beekman Advisors), Peter Donovan (CBRE and 2010-2011 NMHC Chairman) and Bob DeWitt (GID Investment Advisers and GSE Task Force Chairman)
Without a fully functioning capital market, apartment transactions fell from $100 billion to around $14 billion in just two years. Apartment Transactions ($ Billions) 40 35
We issued a five-point Capital Markets Plan. We held meetings at the White House, the Federal Reserve, the Treasury Department, the governmentsponsored enterprises’ (GSEs) regulator, the U.S. Department of Housing and Urban Development and on Capitol Hill to outline the steps federal officials needed to take to avoid a shutdown in the apartment sector.
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As a result, we: • Retained a Federal Liquidity Backstop for the Apartment Sector. After Fannie Mae and Freddie Mac were put into conservatorship, we worked closely with them, with their regulator and with their network of lenders to secure added liquidity and stability for their multifamily programs. Despite the conservatorship, Fannie and Freddie funded over $40 billion in multifamily mortgages and accounted for an estimated 90 percent of the market. • Secured a Federal Liquidity Backstop for the CMBS Market. We succeeded in having the Term Asset-Backed Loan Facility (TALF) program expanded to include commercial real estate and to provide inexpensive loans to help investors buy both new and “legacy” (existing) CMBS. We worked with federal officials to extend the TALF loan terms from one year to five years, so they better match the needs of CMBS investors. And when it became clear that more time was needed to get the program operational, we secured a program extension beyond TALF’s original December 2009 sunset date. • Secured Federal Guidance Easing Apartment Loan Workouts. Late in the year, federal regulators released an important policy statement making it easier for banks to work out and extend performing commercial real estate loans that had fallen victim to lower property values without risking adverse action by bank examiners. The guidance made it easier for apartment borrowers to refinance or secure longer extensions on existing loans that were due to mature. • Secured Treasury Rules Easing Restructuring of CMBS Loans. At the urging of NMHC and others, the Treasury Department issued guidance making it easier for CMBS servicers to begin loan restructuring talks with borrowers before the loans go into default. Prior to the guidance, CMBS servicers triggered severe tax penalties if they began discussions before borrowers fell behind on their payments. • Secured an FHA Waiver Making Permanent Financing More Available for Apartment Firms. In response to the frozen capital markets, the Federal Housing Administration (FHA) temporarily waived regulations that prohibited properties that had been constructed or rehabilitated in the past three years from obtaining FHA mortgages. The waiver opened new lines of credit for apartment firms and properties seeking bridge financing for outstanding construction debt. • Bolstered the Beleaguered Low-Income Housing Tax Credit (LIHTC) Program. When investor demand for LIHTCs plummeted, putting hundreds of projects at risk, NMHC successfully urged Congress to take action. Lawmakers used the economic stimulus funds to create two cash grant programs for state housing agencies to use for capital investments in stalled tax credit properties. Clearly there is still much work to be done before the capital markets are fully functioning, but the good news is that thanks to NMHC’s five-point Capital Markets Plan, our industry weathered the economic storm better than any other commercial real estate sector.
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your voice in washington NMHC has been the voice of the apartment industry for more than 30 years, but never have we seen a year like 2009. Combine a complete shutdown of the capital markets with a new (and ambitious) President and a Democratic takeover of Congress and you have the recipe for the most challenging year the Council has ever faced on Capitol Hill. From climate change to card check to carried interest, the Council was fully engaged battling high-profile and high-risk legislative proposals on a dozen fronts. There was no shortage of “out of the box” legislative thinking that required full-blown responses from the Council. One proposal would have allowed the government to prematurely force struggling apartment properties into bankruptcy so they could be converted to affordable housing. It actually passed the House of Representatives. NMHC’s actions ensured that any federal program targeting “at-risk” apartments requires the consent of the owner.
Jim Arbury, NMHC's Senior Vice President of Government Affairs, spearheads the Council's legislative and regulatory program.
Then there was the House-passed language that would have required apartment owners to notify current or prospective renters whenever a property is in default, even quickly remedied non-monetary defaults. We educated officials that this ill-advised idea would unduly alarm residents and could actually trigger a foreclosure by discouraging residents from signing or renewing leases. Consider also the House climate change bill. It would have created a new national energy-efficiency building code that is unachievable in many regions of the country with currently available technology, and would have made non-compliance a federal offense. As introduced, it would have been illegal to operate or sell a building that didn’t comply. We prevailed with more reasonable provisions in the Senate measure. We repeatedly defeated calls for overly generous bailouts of homeowners. We averted systemic failure in the apartment sector by ensuring the industry’s ongoing access to capital after the federal takeover of the government-sponsored enterprises, Fannie Mae and Freddie Mac. We transformed the enormous economic stimulus bill to include more rental incentives. The list goes on, and some of our key achievements are detailed in these pages. This is just a sampling of the challenges we faced throughout the year. By leveraging our extensive and longstanding contacts in Washington, DC, our fact-based approach to lobbying and participation in many coalitions, we achieved numerous victories, both large and small. Meanwhile, we are preparing for another year much like the last. The economy will remain a top priority in 2010 and several of the most important issues facing the industry will return because Congress failed to take final action on them in 2009. They include card check, carried interest, immigration reform, financial reform, energy and climate change legislation and an overhaul of the tax system. And they will be doing it in the partisan environment of yet another election year. Capital Markets
Throughout 2009, NMHC conducted a high-profile effort to restore the apartment sector’s access to capital. With most of the attention on the mortgage crisis being directed at the single-family sector, the Council made
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sure policymakers understood that the apartment sector had also become a collateral victim of the global financial crisis. We held meetings at the White House, Federal Reserve and Treasury Department, as well as with members of Congress and with Fannie Mae and Freddie Mac’s regulator to outline the steps that federal officials needed to take to avoid systemic failure in the apartment sector. We also provided Congress with sound testimony and guidance on how to best address over-leveraged and distressed multifamily real estate assets within the framework of foreclosure and helped prevent aggressive government intervention. Although the apartment sector has fared much better than other commercial real estate sectors, our work has just begun. 2009 was a year of responding to crises. In 2010, we will establish the foundation for the future of commercial real estate Dave Cardwell, NMHC’s Vice President of Capital Markets and Technology, leads the Council’s capital finance. We will be focused on securing a sound resolution to markets initiative. the restructuring of Fannie and Freddie, restoring the public securities markets and construction lending. We will also work to bolster the Low-Income Housing Tax Credit program, the Section 8 voucher program and other affordable housing initiatives. Taxation
Tax law was one of our top priorities in 2009. It will remain so in 2010. The House Ways and Means Committee plans a tax reform overhaul. That means lawmakers will need to find new revenue sources to offset growing government expenditures—the annual budget deficit now exceeds $1 trillion. The biggest threat to apartments is lawmakers’ desire to pay for tax reform with a major tax increase on real estate partnership “carried interest,” also known as the developer’s “promote.” The House has now passed a carried interest tax increase three times. Fortunately, the Senate has blocked all three attempts. Doing so in 2010 may be more difficult, though, and NMHC will continue its efforts with a broad-based business coalition to oppose it. Estate tax reform also remains in play. Lawmakers attempted unsuccessfully at the end of 2009 to pass permanent reform, making this a “mustpass” issue in 2010. We have come a long way in this battle. Just seven years ago, Congress was confidently talking about eliminating the estate tax but at the price of eliminating “stepped-up basis,” which is critical for heirs of commercial real estate. Now our request—permanently extending the 2009 estate tax laws—is the starting basis for 2010’s negotiations.
NMHC’s Vice President of Tax, Jennifer Bonar Gray, briefs the members on proposals to increase the tax on the developer’s promote (“carried interest”) at NMHC’s Annual Meeting.
Other critical areas of concern in 2010 include possible changes to the tax treatment of like-kind exchanges and the tax rates on capital gains, dividends and income, which will all increase at the end of the year if Congress doesn't take action. Energy and Environmental Issues
Climate change legislation was by far one of NMHC’s greatest challenges in 2009. Legislators eager to dramatically curb carbon emissions targeted the built environment and sought to impose stringent—and in some cases unachievable—mandates via building codes. NMHC was successful in steering the debate
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away from the more draconian proposals, but with final action pushed into 2010, we will continue to push for policies that combine technologically feasible building efficiency standards with economic viability. Attention in 2010 will continue to focus on the economy and the environment. Using green jobs to stimulate the economy and decrease greenhouse gas emissions remains at the top of national ‘to do’ list. NMHC will be there to urge policymakers to include incentives for green apartment construction and for improving energy performance of existing properties as part of those efforts. NMHC also launched a new Sustainability Committee to help advance industry best practices and develop and promote standards that apartment firms can use to market their sustainability quotient. Congress will also resume work on a major transportation initiative, which gives us an opportunity to craft polices that reward smart, transit-oriented development—the kind of housing apartments provide best.
Eileen Lee, NMHC’s Vice President of Energy and Environmental Policy, discusses sustainability and energy policy at an industry event.
We will also be actively engaged in the perennial debate over the Clean Water Act and proposals to tighten federal control over development activities. From lead-based paint to indoor air quality to stormwater regulations, NMHC will represent the apartment industry’s interests. Housing Policy
Our national housing policy is at a crossroads. The serious flaws in the “homeownership at any cost” housing policy have been made clear. Scholars, reporters and lawmakers agree on the need for a more balanced housing policy, one that explicitly acknowledges the value of and need for rental housing. But old habits are hard to break. Even as elected officials start to understand that, intellectually, so far new attitudes have not translated into new policies. Instead, we have seen an extension of old-line thinking: New homebuyer tax credits and other ill-advised subsidies that threaten to reinflate the old single-family housing bubble. Change like this comes slowly, however, and there were some positive signs of movement in that direction in 2009. For instance, we were successful in opposing the most egregious homeownership incentives proposed during the year, and we were able to transform the economic stimulus bill so it included rental incentives as well. Clearly, there is much still to be done. NMHC will continue to put forward a policy framework that advocates fundamental changes in our housing policy. Labor and Employment
In 2009, labor groups aggressively pushed their legislative and regulatory agenda, but the Employee Free Choice Act (EFCA)—their top priority—failed to advance. As proposed, the EFCA would ease organizing and collective bargaining rules, making apartment firms more vulnerable to unionization, and impose new penalties against employers—but not unions—for violating the law.
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Despite the Administration’s commitment to the bill, and support from Democratic leaders in the U.S. House of Representatives and the Senate, momentum waned for the union-backed legislation as the economic recession continued, unemployment rose and moderate Democrats—especially in the Senate—became increasingly concerned about the potential political implications of supporting the bill.
Betsy Feigin Befus, NMHC’s Vice President of Employment Policy and Counsel on Capitol Hill.
Halting EFCA in 2009, known as the “card check” bill because it would effectively replace private ballots with cards in union elections, was a significant victory and was assisted by a well-timed NMHC grassroots alert asking Council members to contact their lawmakers to oppose the measure. But the apartment industry will continue its vigorous opposition to the bill in 2010 as the unions persist with their card check campaign. Unions and their supporters have indicated their willingness to “compromise” on the bill, but it is unlikely that an alternative version would meaningfully amend the measure’s onerous provisions. Immigration Reform
Apartment firms are both employers and housing providers, so immigration reform is especially important to us. Following a period of relative inaction, Congress is expected to resume consideration of a comprehensive legislative package in 2010 that covers employment verification, legalization, temporary worker programs and border enforcement. Both President Obama and Department of Homeland Security Secretary Janet Napolitano support comprehensive legislative and regulatory reforms. However, persistent disagreements in Congress could prove to be insurmountable in 2010 considering the November elections and competing priorities. Despite the uncertain outlook, NMHC will continue our advocacy efforts, focusing on accurate and efficient employment screening and rational policies for temporary workers and undocumented individuals who already reside in the U.S. We will also continue to seek legislative language that preempts onerous state and local laws that impact apartment owners but reserves for the federal government the authority to create immigration policy. Telecommunications
In 2009, NMHC continued to lead the fight against federal regulations that improperly restrict an apartment owner’s ability to freely contract with providers of voice, video and data services. Although a federal court ruled in favor of the Federal Communications Commission (FCC) in our lawsuit seeking to overturn an October 2007 ban on exclusive access agreements, the case served as a preemptive challenge to the FCC’s authority to further regulate contracts. In 2010, the FCC may revisit issues relating to marketing and bulk agreements, and NMHC is well-positioned to advocate on behalf of apartment owners. Property and Risk Management
This broad subject covers a wide range of core operational areas for apartment firms, so it presents a diverse set of challenges and opportunities, both legislative and regulatory. Much of our 2009 work involved educating member firms about new regulatory obligations placed on them by federal agencies and creating benchmarking data to help drive strategic decision making. Accessibility remains a priority issue for the apartment sector, and NMHC continues to reach out to the Department of Justice and HUD to educate them about the obstacles to more widespread compliance and the need for a tolerance-based approach to enforcement of accessibility regulations. Property insurance affordability also remains high on the Council’s agenda given that catastrophic losses from floods, hurricanes and earthquakes are expected to double every decade. Our annual Apartment Cost of Risk Survey provides firms with the latest cost information for several lines of apartment community
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insurance coverage. In the legislative arena, we successfully advocated for an extension of the current National Flood Insurance Program (NFIP), which provides the needed coverage to member firms. In 2010, we will continue our efforts to ensure that any changes to the program do not reduce the availability and affordability of flood coverage. Finally, NMHC alerted apartment firms to the pandemic flu threat in 2009, and helped them anticipate, prepare for and respond to the apartment-specific challenges that a severe flu could bring. We created a Pandemic Flu Resource Center on www.NMHC.org as well as a listserve to let members share the latest information.
NMHC’s Vice President of Business Operations and Risk Management Policy, Jeanne McGlynn Delgado, talks with Rep. Paul Kanjorski (D-PA), a senior member of the Financial Services Committee and chair of the Subcommittee on Capital Markets, at NMHC’s Board of Directors meeting.
2010 is certain to present additional challenges, as well as opportunities, to address fair housing issues, additional consumer protection issues and federal homeland security initiatives. Building Codes
Perhaps the least understood of NMHC’s policy areas is building codes. Staying on top of ever-changing building codes involves meticulously examining thousands of technical proposals to determine whether they will impact apartment construction costs, knowing that every victory earned can be wiped out in the next code development cycle.
Ron Nickson, NMHC’s Vice President of Building Codes, discusses the industry’s efforts with the model code organizations.
For that reason, NMHC is always working on two distinct horizons. On the short-term horizon, we review proposed code changes, collect evidence to support or oppose them and work behind the scenes to secure the necessary votes in our favor. On the long-term horizon, we are continuously educating key stakeholders of our positions so we can head off potentially negative code changes before they acquire any momentum.
2009’s key issues were proposals related to energy conservation and fire safety and proposals related to the 2001 attack on the World Trade Center. As is the case in so many of our policy areas, here, too, the facts are on our side as apartments (equipped with sprinklers, as is the norm now) have the best safety record of any occupancy classification covered by the codes.
Key Legislative and Regulatory Victories in 2009 NMHC achieved several landmark victories in the most important legislative session for the housing sector in decades. A summary of key legislative and regulatory accomplishments: Averted Systemic Failure in the Apartment Sector Throughout 2009, NMHC conducted a high-profile
effort to restore the apartment sector’s access to capital. With most of the attention on the mortgage crisis being directed at the single-family sector, NMHC made sure policymakers understood that the apartment sector had also become a collateral victim of the global financial meltdown. (See “Imagine a World with No Capital” for more information.)
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Blocked ‘Card Check’ Legislation NMHC continued our intense opposition to the Employee Free Choice
Act, the lopsided union-backed bill nicknamed “card check” that would effectively kill secret ballots and render union elections inherently vulnerable to fraud and coercion. Our broad industry coalition efforts and a well-timed NMHC grassroots alert helped stall the bill, which had been expected to win fast approval. Retained Ban on Downpayment Assistance We turned back an effort early in the year to reinstate
seller-financed “charity” downpayment programs, which Congress had banned in 2008. NMHC reminded lawmakers that these programs perpetuate the now discredited zero-down mortgage lending and would threaten to reinflate the housing bubble. Helped Stall Carried Interest Tax Increase NMHC mounted a ’round-the-clock lobbying campaign to oppose a proposal to change the taxation of carried interest (i.e., the general partner’s “promote”) from the current capital gains rate to ordinary income tax rates. Originally intended to rein in hedge fund and venture capital fund managers, the proposals have been overly broadly written and would affect many partnerships in other industries, including 2.5 million real estate partnerships. Defeated Overly Generous Homeownership Incentives Through an all-out lobbying campaign, NMHC
helped transform the economic stimulus package enacted in February to reflect a balanced housing policy. The final legislation stripped out a $15,000 homebuyer tax credit for all buyers and replaced it with a smaller, temporary, income-restricted tax credit for first-time homebuyers only. It also rejected calls for federally subsidized “interest rate buydowns” for house purchasers. Moreover, it included several provisions helpful to apartment firms related to the Low-Income Housing Tax Credit (LIHTC) program, energy-efficiency incentives, bonus depreciation and more.
National Multi Housing Council Political Action Committee (NMHC PAC) A Sound Investment in Our Industry
Beyond our skilled team of lobbyists, one of the most important ingredients in our legislative initiatives is the NMHC Political Action Committee (PAC). Through the NMHC PAC, we are able to support political candidates who are in harmony with our industry’s goals and we can be more aggressive in supporting up-and-coming members of Congress who will grow in stature and power in the future. After a very successful 2008, when a record $522,637 was raised for our NMHC PAC, in 2009 PAC contributions fell as fewer members stepped up to provide needed funds. Our NMHC Political Action Committee Chairman Linwood Thompson and Vice Chairman David Neithercut led an effort that raised $336,787 for our NMHC PAC. Those funds were used to support 100 members of Congress of both parties.
NMHC recognizes 2009’s top PAC supporters: Marcus & Millichap was named 2009’s NMHC PAC Advocate and Equity Residential received the NMHC PAC Challengers Award. (L-R) David Neithercut (Equity Residential), Gregory Matus (Marcus & Millichap), Jim Arbury (NMHC) and Linwood Thompson (Marcus & Millichap).
The success of our PAC depends entirely on member support. Since corporations cannot contribute to PACs, we rely on voluntary personal contributions from employees of NMHC member firms. At the 2010 Annual Meeting in Boca Raton, we recognized two firms for their employees’ exemplary support of the PAC last year.
Defeated Effort to “Take Over” Struggling Apartment Properties NMHC turned back efforts to allow the government to prematurely force apartment properties into bankruptcy and convert them to affordable housing. Thanks to NMHC’s action, an amendment allowing the government to intervene whenever an apartment property is delinquent, at risk of default or at risk of disinvestment or in foreclosure was altered to require the consent of the owner before any action is taken.
We were also one of a limited number of groups invited to attend a special meeting convened by HUD and the Treasury Department to explore what role the government should play regarding distressed assets and ensuring financially stable and well-maintained properties. Defeated Onerous Resident Notification Proposal NMHC turned back a proposal that would have required apartment owners to notify current or prospective renters whenever a property is in default or foreclosure—even quickly remedied non-monetary defaults. We educated officials that this ill-advised idea would unduly alarm residents and could actually trigger a foreclosure by discouraging residents from signing or renewing leases. Transformed Onerous Energy Code Proposal When lawmakers targeted the built environment for energy savings by passing a bill in the House that would create a national energy-efficiency building code that exceeds what is achievable with current technology and is economically unsupportable, NMHC convinced the Senate to consider an alternative approach that eliminates specific efficiency targets and timelines and instead leaves those decisions to an EPA rulemaking.
Our Advocate’s Award went to Marcus & Millichap, which raised $38,397 for the PAC. Equity Residential was second and received our Challenger’s Award after raising $33,164 in PAC funds from its employees. In all, 707 individuals from 66 firms contributed to the NMHC PAC this year. However, participation in the NMHC PAC by NMHC members is lower than 10 percent. With key issues that can impact our industry being debated in Congress and so many interest groups vying to be heard, it is more imperative than ever that our legislative efforts are enhanced by full participation in the PAC by all NMHC members. Firms Whose Employees Contributed $10,000 or More Marcus & Millichap ($38,397) Equity Residential ($33,164) BRE Properties, Inc. ($21,501) AvalonBay Communities, Inc. ($19,250)
Pinnacle ($15,500) Camden Property Trust ($15,125) CB Richard Ellis ($12,800) Gables Residential Trust ($12,054)
SARES•REGIS Group ($10,150) Home Properties, Inc. ($10,000) Moran & Company ($10,000) Simpson Housing LLLP ($10,000)
Firms That Increased Giving in 2009 Despite the Recession AvalonBay Communities, Inc. Allied Realty Services Bader Company The Bozzuto Group BRE Properties, Inc. Camden Property Trust Crossbeam Capital LLC Equity Residential HFF
Holland Partner Group Home Properties, Inc. ING Clarion Klingbeil Capital Management The Michelson Organization Mid-America Apartment Communities, Inc. Milestone Management Moran & Company
Nevins•Adams•Lewbel•Schell Pacific Property Company Simpson Housing LLLP Time Warner Cable Transwestern Investment Company, LLC WNC & Associates
Launched New Green Building Standard NMHC helped draft and launch the National Green Building
Standard (NGBS) (ICC-700), the first consensus-based standard for green residential new construction and building retrofits. The NGBS is an alternative to non-standardized green rating systems (such as the LEED criteria) for local jurisdictions that are implementing green building requirements. Expanded and Improved the Federal Weatherization Program Capping a
three-year NMHC effort, the Department of Energy issued new rules long sought by NMHC making the federal weatherization program more accessible to apartment properties. In February’s economic stimulus bill, NMHC also secured an increase in weatherization program funding from $400 million to $5 billion, expanding the eligibility requirements and raising the per-unit cap on assistance from $2,500 to $6,500. Secured “Green Money” for Multifamily in the Stimulus Bill NMHC
helped secure a significant amount of money for energy-efficiency incentives in the apartment sector in the economic stimulus bill, including $3.2 billion for an Energy Efficiency Block Grant Program, $2.3 billion to make energy-efficient renovations in Section 8 and other HUD-subsidized units and an increase in weatherization funding.
Eileen Lee, NMHC’s Vice President of Energy and Environmental Policy; Jeanne McGlynn Delgado, NMHC’s Vice President of Business Operations and Risk Management Policy; Senator Kent Conrad (D-ND), Chairman of the Senate Budget Committee; and Lisa Blackwell, NMHC’s Vice President of Housing Policy at NMHC’s Board Meeting.
Secured New ENERGY STAR Performance Tracking Tool At NMHC’s urging, the EPA launched a
multifamily-specific version of its ENERGY STAR Portfolio Manager, an online tool that allows building owners to measure the energy consumption of their buildings. The development of a fully vetted ENERGY STAR labeling program for apartments has taken on new importance as lawmakers consider “disclosure/ labeling” legislation that could require property owners to disclose energy scores or performance ratings of their properties. Opposed Onerous Immigration Measures As an active participant in the immigration reform debate,
NMHC worked to oppose burdensome legislative and regulatory requirements on employers, including efforts to make the federal government’s E-Verify employee screening system mandatory. We also issued member guidance on new regulations requiring E-Verify for federal contractors. Averted Section 8 Funding Shortfall NMHC helped secure $2 billion in the economic stimulus bill for
full-year payments for project-based Section 8 properties. Our Congressional testimony in 2008 encouraged Congress to take this action to avert the serious funding shortfall that has beset the Section 8 program in prior years. Bolstered the Low-Income Housing Tax Credit (LIHTC) Program NMHC obtained Congressional
assistance for the beleaguered LIHTC program through two provisions in the economic stimulus bill. One allocated $2 billion for direct equity grants to states to use as “gap financing” for stalled LIHTC projects. The second allowed states to exchange 40 percent of their 2009 LIHTC allocations for cash grants from the Treasury Department.
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National Multi Housing Council 2009 Annual Report rethinking rent
Obtained IRS Clarification on Submetering at Tax Credit Properties NMHC led the effort to secure an
important clarification to new IRS utility allowance regulations that confirmed the right of property owners to submeter utilities on LIHTC properties. Supported Section 8 Reform Reforms long sought by NMHC to the Section 8 program, including
streamlining the inspection process and establishing a reliable funding formula, were included in a bill that passed the House Financial Services Committee in 2009. Produced Lead-Based Paint Regulatory Guidance NMHC published comprehensive guidance and a webinar to help firms comply with new EPA lead safety regulations that govern common renovation and repair activities in pre-1978 properties. Opposed Restrictions on Telecommunications Contracts NMHC continued to lead the real estate
industry’s long-standing opposition to unjustified federal regulations that interfere with an owner’s ability to enter into and enforce telecommunications contracts. Secured NFIP Flood Insurance Extension Averted a shutdown of the National Flood Insurance Program
by securing an extension before the program’s scheduled expiration date. Secured Apartment Provisions in Catastrophic Insurance Legislation NMHC expanded catastrophic
insurance legislation to include multifamily housing. Thanks to our efforts, the pending bill authorizes a study to explore a program to meet the apartment industry's catastrophic insurance needs.
Two Organizations, One Voice
For nearly two decades, NMHC and the National Apartment Association (NAA) have joined forces to form a Joint Legislative Program (JLP) to advocate on behalf of the apartment industry. In 2009, this unique partnership was extended for another three years. This relationship combines expertise and strength in numbers to create a partnership that is greater than the sum of its parts. NMHC is able to tap into the grassroots power of NAA’s more than 50,000 members and its state and local chapters to help move our issues forward. NAA members, meanwhile, gain access to one of the most experienced and skilled legislative teams working on Capitol Hill. The alliance creates an entity with the strength to attract excellent legislative staffers and the resources to conduct cutting-edge research on important issues facing the industry. Just as importantly, it also enables the apartment industry to pursue its legislative and regulatory agenda with a single, unified and clear voice.
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the economist’s corner:
the great recession
Like virtually all other industries, in 2009 the apartment industry was at the mercy of the Great Recession. The worst economic downturn since the 1930s has cost more than 8.4 million payroll jobs—pushing the unemployment rate above the symbolic 10 percent mark for the first time in 10 years and putting the total employed at 6.1 percent below the pre-recession peak. That’s unmatched in the post-World War II era and bad news for an industry that relies on job growth to drive demand. The result? Net absorptions fell sharply. Rents declined, and the vacancy rate rose to the highest level in at least 40 years by some measures. There are more than 4.5 million vacant rental units, between houses for rent and apartments; as much as 1.5 million more than in a more normal market. Adding insult to injury, Congress set about trying to entice renters into homeownership with a dubious and very pricey homebuyer tax credit.
Mark H. Obrinsky, Ph.D. Vice President of Research and Chief Economist
It’s reasonable to expect that 2009’s insufficient apartment demand will be replaced by a supply shortage before long. Perhaps even as soon as 2012. Capital Markets Crisis
In addition to the recession, the apartment industry also struggled to survive the capital markets crisis that ignited the recession. With short-term interest rates already at zero, standard monetary policy was out of ammunition. Fiscal policy contributed a sizable stimulus package and the Fed began “quantitative easing”—injecting liquidity New apartment construction set an all-time post-World War II low into the system directly. in 2009. These extraordinary measures Multifamily (5+) Starts (000) pulled the financial system (6 month moving average) back from the brink. 400
Though debt financing conditions for apartments worsened in 2009, Fannie Mae and Freddie Mac were a stabilizing factor, providing a crucial liquidity backstop for acquisition finance.
300
200
Even so, transaction volume continued to drop; falling from $100 billion to around
100
0 ’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09
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National Multi Housing Council 2009 Annual Report rethinking rent
$14 billion in just two years. In addition to an unusual degree of uncertainty about the appropriate valuation of properties in such an unusual environment, many potential buyers waited for distressed borrowers to be forced to sell. Distressed borrowers, meanwhile, found their lenders adopting an “extend and pretend” strategy, figuring that a recovery in the apartment market in the next year or two would go a long way toward restoring collateral value. Unlike acquisitions, construction has been hit hard by the absence of normal bank lending. New apartment construction set an all-time post-World War II low in 2009, at under 100,000 new starts. Back from the Brink
The “great recession” may soon be declared officially over; however, the job market is likely to continue to worsen, and improvement may not come until well into 2010. The good news for apartment firms is that 2009’s low construction starts, when coupled with a stream of young echo boomers and millennials into the housing market, should produce a significant increase in apartment living as soon as the economy returns to health.
The entry of the Echo Boomers into the housing market will spike apartment demand. 20-34 Year-Old Population (annual changes, thousands)
1,200 1,000 800 600 400
It’s reasonable to expect that 2009’s insufficient apartment demand will be replaced by a supply shortage before long. Perhaps even as soon as 2012.
200 0 -200 -400 -600 -800 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15
...a stream of young echo boomers into the housing market should produce a significant increase in apartment living as soon as the economy returns to health.
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the business of your business For 30 years, NMHC has provided thought leadership to the apartment industry. Although we are best known for our highly effective government affairs program, the success of your business is one of our core missions. We call it our Strategic Business Information initiative, which is our way of saying that we make sure you have the information you need to make informed business decisions. From original research to benchmarking studies to best practices and regulatory compliance guidance, we keep you informed. Here are just some of the resources and tools we produced for you in 2009: Apartment Market Conditions •
NMHC’s Quarterly Survey of Apartment Market Conditions and regular teleconferences on current market conditions featuring researchers and leading owner/operators.
•
NMHC’s annual Apartment Strategies Conference and annual Research Forum.
•
The 2009 NMHC 50 – the Top 50 Apartment Owners and Top 50 Apartment Managers.
•
New research on competition for the apartment sector from homeownership, who’s moving into apartments and whether a supply shortage is looming.
Apartment Marketing/Promotion
New PowerPoint presentation – A New Housing Policy: Promoting Rental Housing – that uses key facts and figures to make the case that America not only needs rental housing, but it also wants rental housing as a result of profound demographic and lifestyle shifts as well as macro factors such as growing environmental awareness and the need to acommodate population growth in a fiscally sustainable manner. •
•
A Case for Investing in U.S. Apartments, a report designed to help attract foreign capital to the apartment market.
•
New “Consumer Portal” on NMHC’s web site to help users decide between renting and buying.
Capital Markets •
Research on the role of Fannie Mae and Freddie Mac in multifamily finance.
•
NMHC’s annual Finance Forum.
•
NMHC-sponsored white paper by Harvard University (Meeting Multifamily Finance Needs During and After the Credit Crisis) educating policymakers about the key differences between the single-family and the multifamily sectors.
Energy-Efficiency/Sustainability
22
•
NMHC helped launch the National Green Building Standard (ICC700), the first consensus-based standard for green residential new construction and building retrofits.
•
Webinar exploring how the apartment industry can use the NGBS to its advantage.
•
New “Green Practices” portal on NMHC’s web site offering resources for owners, developers, managers and policymakers.
National Multi Housing Council 2009 Annual Report rethinking rent
•
Worked with the U.S. Environmental Protection Agency to launch an energy management database tool: Portfolio Manager for Multifamily Properties.
•
Special newsletters explaining proposed climate change legislation and its potential impact on the apartment industry.
Student Housing •
Student Housing Report: Has the Recession Had an Impact? examines whether the dramatic U.S. economic downturn has had an impact on enrollment and on-campus dormitory vacancy rates.
•
NMHC’s annual Student Housing Conference.
Human Capital •
Annual National Apartment Survey of Compensation and Benefits Practices, the industry’s leading and most detailed source for strategic compensation and benefits information. The 2009 report covered more than 65 corporate/ regional and on-site job titles in more than 200 geographic areas. New in 2009 was an Interactive Data Tool that allows firms to compile data according to their own criteria.
•
Compensation Strategy “Pulse Check” Survey taken in the final months of 2009 to update our annual compensation survey with real-time data on firms’ plans for merit increases and bonuses.
•
NMHC’s annual Human Resources Forum.
•
Online Career Center offering NMHC members the ability to post job openings on the SelectLeaders Real Estate Job Network.
Technology and Telecommunications •
Automated Payments: Progress and Challenges research report that provides the results of a survey of 110 leading apartment firms about their experience in automating the payment of rent and other fees.
Property and Risk Management •
2009 Apartment Cost of Risk Survey that benchmarks insurance rates, deductibles, coverage terms and claims history for Property, General Liability and Workers’ Compensation insurance.
•
Regulatory compliance guidance on complying with new federal lead-based paint regulations.
•
Online Pandemic Flu Resource Center and members-only listserve to allow firms to discuss their preparedness planning.
•
Compliance resources to assist members in meeting the requirements of federal identity theft prevention regulations.
•
NMHC’s Annual Property and Risk Management Forum.
Member Resources •
New NMHC web site with an expanded Research and Statistics section, new advocacy tools, networking tools and new tools for supplier partners.
•
2010 Partner Guide, a one-stop resource identifying all the sponsorship and exhibiting opportunities with the Council.
•
NMHC presence on social networking sites (LinkedIn, Facebook and Twitter) to facilitate member firm networking between meetings.
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come join us:
future meetings calendar
NMHC’s meetings are considered to be the industry’s most stimulating and thought-provoking gatherings. Varying in size and focus, the meetings offer participants an invaluable opportunity to candidly share information, debate issues of common interest and hear nationally recognized speakers. In addition to its regular membership meetings, NMHC convenes special-interest forums on topics such as technology, risk management, human resources and legal issues. The Council also sponsors an annual Executive Leadership Conference for the industry’s up-and-comers. 2010 Calendar of Events
September 15-16
April 20-21
NMHC Student Housing Conference & Exposition Washington, DC (Open to Non-Members)
NMHC Human Resources Forum Chicago, IL (Members Only) April 20-21
NMHC Research Forum Chicago, IL (Members Only) May 18-19
NMHC Finance and Apartment Strategies Conference Chicago, IL (Open to Non-Members) May 19-20
NMHC Spring Board of Directors Meeting Chicago, IL (Executive Committee and Board Members Only)
November 14-16
NMHC Apartment Operations and Technology Conference & Exposition Dallas, TX (Open to Non-Members) January 18, 2011
NMHC Apartment Strategies Conference Palm Springs, CA (Open to Non-Members) January 18-20, 2011
NMHC Annual Meeting Palm Springs, CA (Members Only)
July 20-21
NMHC Executive Leadership Conference Washington, DC (Members Only) September 14-15
NMHC Fall Board of Directors and Advisory Committee Meeting Washington, DC (Members Only)
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Unparalleled networking opportunities are one of the main benefits of NMHC’s meetings.
National Multi Housing Council 2009 Annual Report rethinking rent
T. Boone Pickens and his famous white board discussed energy policy at NMHC’s 2009 Annual Meeting.
taking financial measure
taking financial measure Statement of Financial Position as of December 31, 2009
2009 (unaudited*)
2008
ASSETS:
Cash and Investments: Cash Investments (Short Term) Total Cash and Investments
$
Fixed Assets: Furniture and Equipment, At Cost Less: Accumulated Depreciation Total Fixed Assets, Net Other Assets: Security Deposit Total Other Assets Total Assets
267,952 6,577,065 6,845,018
$
211,991 6,540,622 6,752,613
636,075 (564,688) 71,387
672,769 (562,796) 109,973
14,676 14,676
14,676 14,676
$
6,931,081
$
6,877,262
$
49,043 0 49,043
$
60,440 600 61,039
LIABILITIES AND UNRESTRICTED NET ASSETS:
Liabilities: Lease Payable - Copiers Security Deposit Total Liabilities Unrestricted Net Assets: Unrestricted Net Assets - Beginning Current Year Increase** Total Unrestricted Net Assets - December 31
6,816,223 65,815 6,882,038 $
Total Liabilities and Unrestricted Net Assets
6,931,081
6,813,846 2,377 6,816,223 $
6,877,262
NMHC members and employees are encouraged to report suspected violations of the law, violations of NMHC policies and procedures, dishonest or unethical behavior, crimes, or improper business activities to NMHC’s Senior Vice President of Finance and Operations or through Report Line at 877/888-0002 or www.tnwinc.com/webreport. From time to time, the Board may change the process by which members or employees may communicate such reports. Employees will be notified of changes by internal communications. Members should check the NMHC web site for any changes to the reporting process. The Audit Committee shall ensure that employees may report suspected violations anonymously in accordance with local, state and federal Whistleblower Statutes and Employee Protection Ordinances. Employees will not be subject to any penalties or retribution for reporting suspected violations in good faith. * This information has been extracted from the unaudited financial statements of the National Multi Housing Council. The audit of the 2009 financial statements will take place in 2010. In the past, there have been few, if any, differences between the audited and unaudited financial statements. ** The 2009 Current Year Increase is more than the amount on the Income Statement due to Carried Interest Task Force income of $62,000 and 2010 MITS membership dues of $1,000. These funds will offset future expenses.
NMHC Audit Committee Thomas S. Bozzuto (Chair) The Bozzuto Group Greenbelt, MD
26
Timothy J. Naughton AvalonBay Communities, Inc. Alexandria, VA
Richard L. Kadish CAPREIT, Inc. Rockville, MD
National Multi Housing Council 2009 Annual Report rethinking rent
meet our leadership 2010 Officers
Chairman Peter F. Donovan CB Richard Ellis, Inc. Boston, MA
Vice Chairman Thomas S. Bozzuto The Bozzuto Group Greenbelt, MD
Treasurer Daryl J. Carter Avanath Capital Partners Irvine, CA
Secretary Robert E. DeWitt GID Investment Advisers LLC Boston, MA
President Douglas M. Bibby National Multi Housing Council Washington, DC
Immediate Past Chairman Ric Campo Camden Property Trust Houston, TX
2010 Committee Leadership
Audit Thomas S. Bozzuto (Chair) The Bozzuto Group Greenbelt, MD
Finance Lili F. Dunn (Chair) AvalonBay Communities, Inc. Alexandria, VA
Finance Brian F. Stoffers (Vice Chair) CBRE Capital Markets Houston, TX
Investment Thomas J. Sargeant (Chair) AvalonBay Communities, Inc. Alexandria, VA
Membership Laura Beuerlein (Chair) Heritage Title Company of Austin, Inc. Austin, TX
Operating Peter F. Donovan (Chair) CB Richard Ellis, Inc. Boston, MA
rethinking rent National Multi Housing Council 2009 Annual Report
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Political Action Linwood C. Thompson (Chair) Marcus & Millichap Atlanta, GA
Political Action David J. Neithercut (Vice Chair) Equity Residential Chicago, IL
Property Management Julie A. Smith (Chair) Bozzuto Management Group Greenbelt, MD
Property Management Brad Forrester (Vice Chair) The ConAm Group of Companies San Diego, CA
Research Jay Lybik (Chair) Equity Residential Chicago, IL
Research Jeanette Rice (Vice Chair) Verde Realty Fort Worth, TX
Strategic Planning Thomas S. Bozzuto (Chair) The Bozzuto Group Greenbelt, MD
Student Housing Nathan S. Collier (Chair) The Collier Companies/ The Paradigm Group Gainesville, FL
Sustainability Thomas W. Toomey (Chair) UDR, Inc. Highlands Ranch, CO
Sustainability Alan W. George (Vice Chair) Equity Residential Chicago, IL
Tax Terry B. Schwartz (Chair) Dover Realty Advisors Bingham Farms, MI
Tax Tim L. Myers (Vice Chair) Allied Realty Services, Ltd. Houston, TX
Rick Graf Pinnacle Dallas, TX
2010 Joint Legislative Committee
Sue Ansel Gables Residential Dallas, TX
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Daryl Carter Avanath Capital Partners Irvine, CA
Terry Danner Riverstone Residential Group Dallas, TX
Mark Fogelman Fogelman Management Group Memphis, TN
Michael Gorman Edward Rose & Sons Farmington Hills, MI
Stacy Hunt Greystar Real Estate Partners, LLC Houston, TX
Steve Lamberti Milestone Management Dallas, TX
Lauren Brockman (alternate) Allied Realty Services, Ltd. Denver, CO
Thomas Shuler (alternate) Berkshire Property Advisors Roswell, GA
National Multi Housing Council 2009 Annual Report rethinking rent
executive committee Anthony D’Alto
J. Andrew Hogshead
Mona Keeter Carlton
David Durning
AIMCO Denver, CO
The Collier Companies/ The Paradigm Group Gainesville, FL
HFF Dallas, TX
Prudential Mortgage Capital Company Chicago, IL
Paul F. Earle
HFF Chicago, IL
Patti Fielding AIMCO Denver, CO
Marc E. deBaptiste Apartment Realty Advisors Boca Raton, FL
Gary T. Kachadurian Apartment Realty Advisors Oak Brook, IL
Charles E. Mueller, Jr. Archstone Englewood, CO
R. Scot Sellers Archstone Englewood, CO
Lili F. Dunn AvalonBay Communities, Inc. Alexandria, VA
Timothy J. Naughton AvalonBay Communities, Inc. Alexandria, VA
Michael D. Bryant Berkadia Commercial Mortgage Dallas, TX
John M. Cannon Berkadia Commercial Mortgage Horsham, PA
David J. Olney Berkshire Property Advisors Boston, MA
Thomas Shuler
Matthew Lawton
Colonial Properties Trust Birmingham, AL
Christopher Adams
Edward T. Wright
Holland Partner Group Vancouver, WA
Colonial Properties Trust Birmingham, AL
Clyde P. Holland
Michael D. Berman CWCapital Needham, MA
Robert D. Greer, Jr.
Donald P. King, III
ING Clarion Washington, DC
CWCapital Needham, MA
C. Stephen Cordes
Paul G. Kerr
ING Clarion Partners New York, NY
Davlyn Investments San Diego, CA
Guy K. Johnson
Jon D. Williams
Johnson Capital Irvine, CA
Davlyn Investments San Diego, CA
James H. Callard
Alan W. George Equity Residential Chicago, IL
David J. Neithercut Equity Residential Chicago, IL
Susanne Hiegel Fannie Mae Washington, DC
Julie A. Smith
Forest City Enterprises, Inc. Washington, DC
Deirdre A. Kuring BRE Properties, Inc. Kirkland, WA
Edward F. Lange, Jr. BRE Properties, Inc. San Francisco, CA
Laurie A. Baker Camden Property Trust Houston, TX
Ric Campo Camden Property Trust Houston, TX
John R. Williams Carmel Partners, Inc. San Francisco, CA
Ron Zeff Carmel Partners, Inc. San Francisco, CA
Brian F. Stoffers CBRE Capital Markets Houston, TX
Ronald A. Ratner
Legacy Partners Residential, Inc. Foster City, CA
J. Timothy Byrne Lincoln Property Company Dallas, TX
Forest City Residential Group, Inc. Cleveland, OH
SARES•REGIS Group Irvine, CA
Charles R. Brindell, Jr. Trammell Crow Residential Dallas, TX Trammell Crow Residential Houston, TX
David R. Schwartz Gregory J. Lozinak Waterton Residential Chicago, IL
Vincent R. Toye Wells Fargo Multifamily Capital New York, NY
Warren J. Durkin, Jr. Wood Partners, LLC Boca Raton, FL
Jay Jacobson Wood Partners, LLC Boca Raton, FL
Linwood C. Thompson Marcus & Millichap Atlanta, GA
Susan Ansel Gables Residential Dallas, TX
Martin T. Lanigan Mezz Cap Short Hills, NJ
David Fitch Gables Residential Atlanta, GA
Mary Ann King Moran & Company Irvine, CA
Stacy G. Hunt Greystar Real Estate Partners, LLC Houston, TX
Thomas F. Moran
William C. Maddux
Moran & Company Chicago, IL
Centerline Capital Group New York, NY
Laura A. Beuerlein
Stan J. Harrelson
Heritage Title Company of Austin, Inc Austin, TX
Pinnacle Seattle, WA
Gary S. Farmer
Post Properties, Inc. Atlanta, GA
The Collier Companies/ The Paradigm Group Gainesville, FL
Geoffrey L. Stack
Marcus & Millichap Encino, CA
Freddie Mac McLean, VA
Heritage Title Company of Austin, Inc Austin, TX
SARES•REGIS Group Irvine, CA
Harvey E. Green
Michael May
Rick Graf
Nathan S. Collier
Michael P. Bissell
Lincoln Property Company Herndon, VA
Freddie Mac McLean, VA
Greystar Real Estate Partners, LLC Charleston, SC
Centerline Capital Group New York, NY
RREEF Chicago, IL
Jeff B. Franzen
Mitchell W. Kiffe
William T. Hyman John Larson
Brian E. McAuliffe
Waterton Associates, L.L.C. Chicago, IL
W. Dean Henry
Deborah Ratner-Salzberg
RREEF Chicago, IL
Kristen Klingbeil-Weis
Legacy Partners Foster City, CA
Fannie Mae Pasadena, CA
Jerome Ehlinger
Kenneth J. Valach
C. Preston Butcher
Heidi McKibben
Prudential Real Estate Investors Atlanta, GA
Klingbeil Capital Management/American Apartment Communities Annapolis, MD Klingbeil Capital Management/American Apartment Communities Santa Barbara, CA
Berkshire Property Advisors Roswell, GA Bozzuto Management Company Greenbelt, MD
Holland Partner Group Vancouver, WA
Dale H. Taysom
Pinnacle Dallas, TX
Charles A. Konas David P. Stockert Post Properties, Inc. Atlanta, GA
rethinking rent National Multi Housing Council 2009 Annual Report
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board of directors Nick M. Faklis
William S. Robinson
Douglas D. Chasick
Brian Murdy
A.G. Spanos Companies Stockton, CA
Archon Residential Irving, TX
CallSource Melbourne Beach, FL
Alex G. Spanos
Lin Atkinson
Jerry Feldman
Cornerstone Real Estate Advisers LLC Hartford, CT
A.G. Spanos Companies Stockton, CA
AT&T Connected Communities Atlanta, GA
CallSource Westlake Village, CA
Kevin P. Fitzpatrick
Thuy Woodall
David J. Adelman
AIG Global Real Estate Investment Corp. New York, NY
AT&T Connected Communities Atlanta, GA
Campus Apartments Philadelphia, PA
Michael G. Miller
Miles H. Orth
James M. Krohn
AUM Oak Brook, IL
Campus Apartments Philadelphia, PA
Daniel M. Witte
Ernest L. Heymann
AUM Oak Brook, IL
CAPREIT, Inc. Rockville, MD
Clint Borchgadt
Richard L. Kadish
AZUMA Leasing Austin, TX
CAPREIT, Inc. Rockville, MD
Bj Rosow
DeAnna Thomas
AZUMA Leasing Austin, TX
CB Richard Ellis Investors, LLC Boston, MA
Philip S. Payne
Stephen J. Zaleski
Babcock & Brown Residential Charlotte, NC
CB Richard Ellis Investors, LLC Boston, MA
D. Scott Wilkerson
Tyler Anderson
Babcock & Brown Residential Charlotte, NC
CB Richard Ellis, Inc. Phoenix, AZ
Robert N. Bader
Sean P. Deasy
Bader Company Indianapolis, IN
CB Richard Ellis, Inc. Ontario, CA
Larry Friedman
Steven Fayne
Bader Company Indianapolis, IN
Citi Community Capital San Francisco, CA
Tom Keady
Hal G. Kuykendall
The Bainbridge Companies West Palm Beach, FL
Citi Community Capital Denver, CO
Richard Schechter
Francis J. Coen
The Bainbridge Companies West Palm Beach, FL
Clark Realty Capital, L.L.C. Monterey, CA
Scott G. Suttle
Robert S. Aisner
Douglas R. Sandor
AmeriSphere Multifamily Finance, LLC Bethesda, MD
Behringer Harvard Addison, TX
Clark Realty Capital, L.L.C. Arlington, VA
Mark Alfieri
Chowdary Yalamanchili
Steve F. Hallsey
Behringer Harvard Addison, TX
CnC Investments Ltd., LLP Houston, TX
Jonathan D. Bell
Regina Dingman
Bell Partners Greensboro, NC
Colliers International Minneapolis, MN
Steven D. Bell
Peter L. Ruggiero
Bell Partners Greensboro, NC
Colliers International Parsippany, NJ
Mark W. Dunne
Daniel J. Epstein
Boston Capital Corporation Boston, MA
The ConAm Group of Companies San Diego, CA
Matthew Jordan
J. Bradley Forrester
Daniel McNulty
The ConAm Group of Companies San Diego, CA
DTZ Rockwood New York, NY
Jason Rosa
Eastdil Secured, LLC Santa Monica, CA
Alliance Residential Company Phoenix, AZ
Bruce C. Ward Alliance Residential Company Phoenix, AZ
Lauren A. Brockman Allied Realty Services, Ltd. Denver, CO
Tim L. Myers Allied Realty Services, Ltd. Houston, TX
Michael H. Godwin Ambling Companies, Inc. Valdosta, GA
R. Ryan Holmes Ambling Companies, Inc. Valdosta, GA
William C. Bayless, Jr. American Campus Communities Austin, TX
Jason Wills American Campus Communities Austin, TX
Rodrigo Lopez AmeriSphere Multifamily Finance, LLC Omaha, NE
AMLI Management Company Chicago, IL
Gregory T. Mutz AMLI Residential Properties, L.P. Chicago, IL
Kimberly J. Sperry Amstar Group, LLC Denver, CO
Margette Getto Apartment Guide Carrollton, TX
Arlene Mayfield Apartment Guide Norcross, GA
Kevin Doyle Apartments.com Chicago, IL
Brad Long Apartments.com Chicago, IL
Roger H. Beless Archon Residential Irving, TX
30
John P. Manning Boston Capital Corporation Boston, MA
Barden Brown Brown Realty Advisors Atlanta, GA
Walter W. Miller Brown Realty Advisors Atlanta, GA
Herman Bulls
Continental Realty Advisors, Ltd. Littleton, CO
David W. Snyder
Bulls Capital Partners, LLC Vienna, VA
Continental Realty Advisors, Ltd. Littleton, CO
Mark Van Kirk
Mark Higgins
Bulls Capital Partners, LLC Vienna, VA
Cornerstone Real Estate Advisers LLC Santa Monica, CA
National Multi Housing Council 2009 Annual Report rethinking rent
Richard Buck Crescent Resources, LLC Palm City, FL
Todd M. Farrell Crescent Resources, LLC Charlotte, NC
William Bradford Blash Crossbeam Capital LLC Bethesda, MD
Richard K. Devaney Crossbeam Capital LLC Bethesda, MD
Dodge Carter Crow Holdings Dallas, TX
John Caltagirone The Dinerstein Companies Houston, TX
Brian L. Dinerstein The Dinerstein Companies Houston, TX
Andrew K. Dolben The Dolben Company, Inc. Woburn, MA
Deane H. Dolben The Dolben Company, Inc. Woburn, MA
Jack W. Safar Dominium Group, Inc. Plymouth, MN
Jon Segner Dominium Group, Inc. Minneapolis, MN
Terry B. Schwartz Dover Realty Advisors Bingham Farms, MI
Adam C. Breen DRA Advisors, LLC New York, NY
David Luski DRA Advisors, LLC New York, NY
Kellie Falk-Tillett Drucker & Falk, LLC Raleigh, NC
Daniel Haefner Drucker & Falk, LLC Raleigh, NC DTZ Rockwood New York, NY
Steven L. McKenzie Miles Spencer Eastdil Secured, LLC Washington, DC
John M. O’Hara, Jr. Edward Rose & Sons Farmington Hills, MI
Warren Rose Edward Rose & Sons Farmington Hills, MI
Gregory L. Engler
Jeffrey A. Hirschfeld
Thomas J. O’Brien
Richard Furr
Engler Financial Group, LLC Alpharetta, GA
Hirschfeld Properties LLC New York, NY
LCOR Incorporated Berwyn, PA
Milestone Group Dallas, TX
Patrick Jones
Scott A. Doyle
Scott Brian
Steve T. Lamberti
Engler Financial Group, LLC Alpharetta, GA
Home Properties, Inc. Rochester, NY
LDG Development, LLC Louisville, KY
Milestone Management Dallas, TX
Christopher E. Hashioka
Edward J. Pettinella
Chris Dischinger
Paul Harris
Fairfield Residential LLC San Diego, CA
Home Properties, Inc. Rochester, NY
LDG Development, LLC Louisville, KY
Moran & Company Dallas, TX
Gregory R. Pinkalla
Kevin A. Baldridge
Thomas F. McCoy, Jr.
Jeffrey Williams
Fairfield Residential LLC San Diego, CA
The Irvine Company Apartment Communities ‘IAC’ Irvine, CA
Lockton Companies, LLC Denver, CO
Moran & Company Seattle, WA
Charles M. McDaniel
Michael S. Morgan
Max L. Gardner
Lockton Companies, LLC Denver, CO
The Morgan Group, Inc. Houston, TX
Nevel DeHart First Advantage SafeRent Rockville, MD
James W. Harris First Advantage SafeRent Rockville, MD
Richard N. Shinberg First Capital Realty, Inc. Bethesda, MD
Les Zimmerman First Capital Realty, Inc. Bethesda, MD
Robert L. Johnston First Communities Atlanta, GA
Mark A. Fogelman Fogelman Management Group Memphis, TN
Richard L. Fogelman Fogelman Properties Memphis, TN
Wayne E. McDonald Forestar Real Estate Group Austin, TX
Phillip Weber Forestar Real Estate Group Austin, TX
Edward Coco GE Real Estate Alpharetta, GA
Frank Marro
The Irvine Company Apartment Communities ‘IAC’ Irvine, CA
Helen Angelo
Alan Patton
Peter E. Baccile
Madison Apartment Group Philadelphia, PA
The Morgan Group, Inc. Houston, TX
J.P. Morgan Securities Inc. New York, NY
Joseph F. Mullen
David Koffler
Anthony Paolone
Madison Apartment Group Philadelphia, PA
Morgan Properties King of Prussia, PA
J.P. Morgan Securities Inc. New York, NY
Peter Katz
Stephen Feltner
William N. Elam, III
Marcus & Millichap Phoenix, AZ
Move Westlake Village, CA
The JBG Companies Chevy Chase, MD
Hessam Nadji
Bess Matuszewski
James A. Butz
Marcus & Millichap Walnut Creek, CA
MRI Software Highlands Hills, OH
Jefferson Apartment Group McLean, VA
Jamie B. May
Daniel J. Roehl
Gregory G. Lamb
Marcus & Millichap Tampa, FL
MRI Software Highland Hills, OH
Jefferson Apartment Group McLean, VA
Matthew Mitchell
Jeffrey W. Adler
Michael E. Tompkins
Marcus & Millichap Tampa, FL
Multifamily Indexed Equity Englewood, CO
JLC Southeast LLC Atlanta, GA
John Eifler
William S. Stout, Jr.
Richard J. High
The Marquette Companies Romeoville, IL
MultiFamily Indexed Equity South Natick, MA
John M. Corcoran & Company Braintree, MA
Nicholas Michael Ryan
John H. Helm
The Marquette Companies Romeoville, IL
MyNewPlace San Francisco, CA
Gerald J. Haak
Martha Ellis
MAXX Properties Harrison, NY
Network Multifamily Corporation Tampa, FL
Andrew R. Wiener
Mandy Vallowe
MAXX Properties Harrison, NY
Network Multifamily Corporation Tampa, FL
Jeffrey T. Morris Jones Lang LaSalle Americas, Inc. Orlando, FL
Jubeen F. Vaghefi
GE Real Estate Alpharetta, GA
Jones Lang LaSalle Americas, Inc. Miami, FL
Stephen LoPresti
David G. Shillington
Gerson Bakar & Associates San Francisco, CA
Linda Zeller Gerson Bakar & Associates San Francisco, CA
John J. Gray, III Grayco Partners LLC Houston, TX
Don Hendricks Hendricks & Partners Phoenix, AZ
Tom Warren Hendricks & Partners Dallas, TX
John W. Airhart Hepfner, Smith, Airhart & Day, Inc. Dallas, TX
James P. Hepfner Hepfner, Smith, Airhart & Day, Inc. Plano, TX
Michael C. McDougal
KeyBank Real Estate Capital Dallas, TX
McDougal Properties, L.C. Lubbock, TX
Daniel P. Walsh, Jr.
Tristan Thoma
KeyBank Real Estate Capital Cleveland, OH
McDougal Properties, L.C. Lubbock, TX
John Falco
Kenneth Lee
Kingsley Associates Atlanta, GA
McDowell Properties San Francisco, CA
Phil Mobley
W. Patrick McDowell
Kingsley Associates Atlanta, GA
McDowell Properties San Francisco, CA
Keith A. Harris
Robert D. Lazaroff
The Laramar Group, LLC Chicago, IL
The Michelson Organization St. Louis, MO
David B. Woodward
Bruce V. Michelson, Jr.
The Laramar Group, LLC Greenwood Village, CO
The Michelson Organization St. Louis, MO
Christine Akins
H. Eric Bolton, Jr.
Henry Nevins Nevins•Adams•Lewbel•Schell Santa Barbara, CA
Michael R. Schell Nevins•Adams•Lewbel•Schell Scottsdale, AZ
Richard Burns The NHP Foundation New York, NY
Kerry R. French NorthMarq Capital, Inc. Houston, TX
Edward Padilla NorthMarq Capital, Inc. Minneapolis, MN
Robert A. Esposito NWP Services Corporation Pembroke Pines, FL
LaSalle Investment Management, Inc. Chicago, IL
Mid-America Apartment Communities, Inc. Memphis, TN
Mike Radice
Peter P. DiLullo
Albert M. Campbell
Gene R. Blevins
Mid-America Apartment Communities, Inc. Memphis, TN
Orion Real Estate Services Houston, TX
LCOR Incorporated Berwyn, PA
NWP Services Corporation Irvine, CA
rethinking rent National Multi Housing Council 2009 Annual Report
31
Kirk H. Tate, CPM
Howard S. Primer
Robert Rosania
Jonathan Holtzman
Orion Real Estate Services, Inc. Houston, TX
RenaissancePG, LLC Knoxville, TN
Stellar Management New York, NY
Village Green Companies Farmington Hills, MI
David R. Picerne
Tamela M. Coval
Michael Katz
George S. Quay, IV
Picerne Real Estate Group Phoenix, AZ
Rentwiki.com Atlanta, GA
Sterling American Property Inc. Great Neck, NY
Village Green Companies Farmington Hills, MI
Ronald G. Brock, Jr.
Suzanne Lovelace
Tarak Patolia
Brendan Coleman
Pierce-Eislen, Inc. Scottsdale, AZ
Rentwiki.com Atlanta, GA
Sterling American Property Inc. Great Neck, NY
Walker & Dunlop Bethesda, MD
Ronald G. Brock, Sr.
Terry S. Danner
Dave Schwehm
Howard W. Smith, III
Pierce-Eislen, Inc. Scottsdale, AZ
Riverstone Residential Group Dallas, TX
Time Warner Cable Englewood, CO
Walker & Dunlop Bethesda, MD
D. Scott Bassin
Christy Curry Freeland
Mike Mauseth
Jack O’Connor
PNC Real Estate Pittsburgh, PA
Riverstone Residential Group Dallas, TX
TransUnion/CreditRetriever Greenwood Village, CO
William Thomas Booher
Kenneth Bodenstein
Steve Roe
Weidner Property Management LLC Kirkland, WA
PNC Real Estate San Francisco, CA
Rockwood Capital LLC White Plains, NY
TransUnion/CreditRetriever Greenwood Village, CO
Susan Folckemer
Richard Kramer
Richard Schreiber
The Preiss Company Raleigh, NC
Rockwood Capital LLC White Plains, NY
TransUnion/CreditRetriever Chevy Chase, MD
Donna Preiss
W. Michael Doramus
H. Alfred Cissel
The Preiss Company Raleigh, NC
Sarofim Realty Advisors Dallas, TX
John W. Bray
David Evemy
Transwestern - Institutional Multifamily Group Bethesda, MD
Primary Capital Advisors, LC Atlanta, GA
Sarofim Realty Advisors Dallas, TX
Faron G. Thompson
James D. Scully Jr.
Primary Capital Advisors, LC Atlanta, GA
Scully Company Jenkintown, PA
P. David Onanian
Michael A. Scully
Professional Apartment Services Houston, TX
Scully Company Jenkintown, PA
Randall M. Paulson Professional Apartment Services Plano, TX
Clayton A. Parker
Shelter Corporation Minnetonka, MN
Prometheus San Mateo, CA
Jay Jensen
Providence Management Company, L.L.C. Chicago, IL
Alan Pollack Providence Management Company, L.L.C. Chicago, IL
Bruce Barfield
Shelter Corporation Minnetonka, MN
Jeffrey K. Hettleman Shelter Development, LLC Baltimore, MD
Marilynn K. Duker The Shelter Group Baltimore, MD
Wolf Vedder
The Rainmaker Group Alpharetta, GA
Simmons Vedder Partners, Inc. Austin, TX
Tammy Farley
K. Brad Broyhill
The Rainmaker Group Alpharetta, GA
Simpson Housing LLLP Denver, CO
Dirk D. Wakeham
J. Robert Love
RealPage, Inc. Irvine, CA
Simpson Housing LLLP Atlanta, GA
Stephen T. Winn
David Baird
RealPage, Inc. Carrollton, TX
Sperry Van Ness Las Vegas, NV
Russell L. Dixon
Nancy Barton
RedHill Realty Investors, LP San Diego, CA
Stellar Advisors, LLC Rockville, MD
Travis Greenwood
David Schwartzberg
RedHill Realty Investors, LP San Diego, CA
Stellar Advisors, LLC Rockville, MD
Philip D. Morse Wells Fargo Multifamily Capital McLean, VA
Donald J. Pierce, II
Transwestern Investment Company, LLC Chicago, IL
Wesco Companies Torrance, CA
Douglas Crocker, II
Western National Property Management Irvine, CA
Russell A. Vandenburg
Lynn Carlson Schell
Wells Fargo Multifamily Capital Houston, TX
Edward J. Ryder
Colm Macken
Prometheus Walnut Creek, CA
James McDevitt
Tom P. Colich
Shea Properties Aliso Viejo, CA
John D. Millham
Weidner Property Management LLC Kirkland, WA
Transwestern - Institutional Multifamily Group Bethesda, MD
Transwestern Multifamily Partners, L.L.C. Fort Myers, FL
Shea Properties Aliso Viejo, CA
Bruce LaMotte
32
W. Steve Gilmore
Scott L. Melnick
W. Dean Weidner
TVO North America El Paso, TX
Wayne A. Vandenburg TVO Realty Partners Chicago, IL
David J. Ingram UBS Realty Investors LLC Hartford, CT
Jeffrey G. Maguire UBS Realty Investors LLC Hartford, CT
Anthony N. Rokovich UBS Securities, LLC New York, NY
Thomas W. Toomey UDR, Inc. Highlands Ranch, CO
W. Mark Wallis UDR, Inc. Highlands Ranch, CO
Geoffrey C. Brown USA Properties Fund, Inc. Roseville, CA
Karen McCurdy USA Properties Fund, Inc. Roseville, CA
Eric D. Cevis Verizon Basking Ridge, NJ
Daniel O'Connell Verizon Basking Ridge, NJ
National Multi Housing Council 2009 Annual Report rethinking rent
Wesco Companies Torrance, CA
Michael K. Hayde
Stephan T. Beck Whiteco Residential LLC Merrillville, IN
Samuel Ross WinnCompanies Boston, MA
Lawrence H. Curtis WinnDevelopment Boston, MA
Jeff Bosshard Woodmont Real Estate Services Belmont, CA
Ronald V. Granville Woodmont Real Estate Services Belmont, CA
Amy Gregory Yardi Systems, Inc. Santa Barbara, CA
Jennifer Vogel Yardi Systems, Inc. Santa Barbara, CA
Samuel C. Stephens, III ZOM Development, Inc. Orlando, FL
Greg West ZOM Florida, Inc. Fort Lauderdale, FL
2009 new members Acumen Real Estate
Hawthorne Residential Partners
The NHP Foundation
Adler Development
Hylant Group
Oak Residential Partners, LLC
Affordable Housing Trust for Columbus and Franklin County
Hyperion Realty
Olympus Property
Ideal Realty Group
All Nation Renovation, Inc.
Integral
Palatine Capital Partners Management, LLC
AMI Capital
Investors Management Group, Inc.
Pennrose Management Company
Aragon Holdings
ISI Group
Preferred Capital Holdings, LLC
Arcturus
J.L. Woode, Ltd.
QVT Mount Auburn Capital LP
B&M Management Co. LLC
Jaymor Management
Barrett & Stokely, Inc.
JCM Partners, LLC
R.D. Merrill Company/ Merrill Gardens, LLC
Beech Street Capital
Jefferson Apartment Group
BG Personnel Services
JLC Environmental Consultants, Inc.
Blackstone Consulting LLC
Johnson Development
Bluerock Real Estate, LLC
Jupiter Communities LLC - RAIT
Broadpoint Gleacher
Jupiter Investment Group, Inc.
Brookfield Real Estate Opportunity Group
JVM Realty Corporation
BuildingLink.com LLC CallMaX Campus Habitat Campus Televideo Capital Strategies Advisory Group, LLC
KA, Inc. Keefe, Bruyette & Woods Land Design Partners, Inc. Landcom Legacy Partners Residential Inc. Legend Asset Management II, LLC
RCG Longview Realty Services, LLC Related Management Company LP RPD Catalyst, LLC Russo Development Somerset Partners LLC Stoneleigh Companies, LLC Sunrise Management Tarantino Properties Inc. Tate Capital Tax Credit Asset Management, LLC Tonti Properties Troutman Sanders LLP UDR, Inc.
CARES By Apartment Life
M&M Realty Partners
Cirrus Asset Management, Inc.
Madison Capital Management, LLC
University Center, U.S. Equities Student Housing
Cityview
Madison Realty Capital
University Furnishings
Compliance Depot
Maintenance Supply Headquarters
Vantage Properties, LLC
Connell Real Estate & Development Co.
Marchex
Waypoint Residential
Matthew T. Maloney
Westar Housing
CWCapital Asset Management LLC
Maxus Properties, Inc.
CWCapital LLC
McShea Properties
The DZAP Group & LeaseLabs
Metro Multifamily Housing Association
Edge Principal Advisors LLC
Miles Realty Co. Inc.
Education Realty Trust, Inc.
Morgan Communities
Empire American Holdings LLC
Morgan Stanley
Fieldstone Properties I, LLC
Mosaic Homes
First Land Mark, U.S.A., Inc.
MultiFamily Indexed Equity
Francis Property Management
Multifamily Management Services LLC
Gilbert Campbell Real Estate
Multifamily Realty Advisors, LLC
Glenmont Capital Management, LLC
Nationwide Life Insurance Company
Goodman Real Estate
Nevada H.A.N.D.
GreenLandlady
Newcastle Limited
Greystone Bank
Newman Development Group, LLC
rethinking rent National Multi Housing Council 2009 Annual Report
33
thank you to our sponsors NMHC expresses its appreciation to the following member firms who generously sponsored research, advocacy efforts and meeting events in 2009.
NMHC thanks our 2009 Chairman’s Circle and Friends of the Council Sponsors, many of whom are pictured here at the NMHC Spring Board of Directors Meeting.
2009 Chairman’s Circle: ($50,000 or more in sponsorship) The Apartment Guide
KeyBank Real Estate Capital
Riverstone Residential Group
AT&T Connected Communities
Kroll Factual Data, Inc.
AZUMA Leasing
Network Multifamily Corporation
Time Warner Cable Community Solutions
Fannie Mae
Pinnacle
Verizon Enhanced Communities
Freddie Mac
RealPage, Inc.
Yardi Systems, Inc.
2009 Friends of the Council: ($25,000 to $49,999 in sponsorship)
34
Apartment Realty Advisors
Comcast Cable Communications
MRI Software
AvalonBay Communities, Inc.
Cushman & Wakefield
Red Mortgage Capital, Inc.
Bader Company
First Advantage SafeRent
Rent.com
BRE Properties, Inc.
Hendricks & Partners
Camden Property Trust CB Richard Ellis
Mid-America Apartment Communities
Transwestern - Institutional Multifamily Group
Colonial Properties Trust
Moran & Company
National Multi Housing Council 2009 Annual Report rethinking rent
UDR, Inc.
NMHC Political Action Committee (PAC) Elite:
Marcus & Millichap National Multi Housing Group
Equity Residential
E-Newsletter Sponsors:
AT&T Connected Communities
RealPage, Inc.
Yardi Systems, Inc.
AIMCO
Equity Residential
Apartments.com
Fairfield Residential LLC
PropertyBridge, a MoneyGram Company
Archstone
Gables Residential
RentPayment, a Yapstone Company
AUM
MyNewPlace
SARES•REGIS Group
Blue Mardon
NWP Services Corporation
Walker & Dunlop
CAPREIT, Inc.
On-Site.com
Willis HRH
Colliers International
Pierce Education Properties
Womble Carlyle Sandridge & Rice, PLLC
2009 Additional Sponsors:
Cox Communications
Multifamily Information and Transactions Standards (MITS) Sponsors:
NMHC also thanks the following firms for their support of NMHC’s data standards initiative (as of 12/30/2009). AIMCO
ForRent.com
Post Properties, Inc.
American Utility Management
Home Properties, Inc.
Prometheus Real Estate Group
AMSI
Hunter Warfield, Inc.
Apartments.com
ista North America, Inc.
PropertyBridge, a MoneyGram Company
Archstone
Kroll Factual Data
Assurant Specialty Property
Lead Tracking Solutions
Blue Moon Software Company
Milestone Management Company
BRE Properties, Inc.
Minol
CallSource
Move
Camden Property Trust
MRI Software
The ConAm Group of Companies
MyNewPlace
Contemporary Information Corp. Continental Utility Solutions, Inc.
National Affordable Housing Management Assn.
Domin-8 Enterprise Solutions
National Apartment Association
Equity Residential
National Multi Housing Council
eREI
Nexus Systems, Inc.
Fair Collections & Outsourcing, Inc
NWP Services Corporation
First Advantage SafeRent
On-Site.com
Forest City Residential Management, Inc.
Payment Service Network, Inc.
RealPage, Inc. Realty DataTrust Rent.com
Ocius
Pinnacle
Property Solutions International, Inc.
RentGrow, Inc. ResidentCheck, Inc. Resident Data, A ChoicePoint Service Resite Online Sierra Utility Billing Spherexx.com Starnik Systems, Inc. Tenant Technologies, Inc. Utility Billing West, LLC Vertex Business Services Yardi Systems, Inc.
rethinking rent National Multi Housing Council 2009 Annual Report
35
the council’s staff: professionals serving professionals
Douglas M. Bibby President
James N. Arbury Senior Vice President of Government Affairs
Susan Guthrie Senior Vice President, Finance and Operations
Betsy Feigin Befus Vice President, Employment Policy and Counsel
Lisa E. Blackwell Vice President, Housing Policy
David B. Cardwell Vice President, Capital Markets and Technology
Jeanne McGlynn Delgado Vice President, Business Operations and Risk Management Policy
Kimberly D. Duty Vice President, Communications
Jennifer Bonar Gray Vice President of Tax
Eileen C. Lee, Ph.D. Vice President, Energy and Environmental Policy
Ronald G. Nickson Vice President of Building Codes
Mark H. Obrinsky, Ph.D. Vice President of Research and Chief Economist
Julie T. Stalknecht Vice President of Membership, Marketing and Meetings
Deborah D. Lee Senior Director of Human Resources and Operations
Michael H. Tucker Senior Director of Communications
Jennifer M. Angebranndt, CMP Director of Meetings, Marketing and Exhibits
Myrra Bariring Director of Accounting
Michele L. Cherry Director of Legislative Operations
Paula M. Cino Director, Energy and Environmental Policy
Lauren Dwyer Director of Technology and Industry Initiatives
Richard Levy Director of Research
La Fayette Flowers Manager of Membership Services
Deanita Holland, CMP Manager of Meetings and Marketing
David A. Knerler Manager of Technology
Garnet Simms Membership Specialist
36
Candace M. Thomas Administrative Assistant
National Multi Housing Council 2009 Annual Report rethinking rent
LeVoniann (Toni) Sampson Receptionist/Administrative Associate
profile Based in Washington, DC, the National Multi Housing Council (NMHC) is a national association that advocates on behalf of the apartment industry and the more than 16 million American households who live in apartment homes. NMHC’s members are the principal officers of the larger and more prominent apartment firms and include owners, developers, managers, financiers and suppliers to the industry. The Council is the leading advocate for the rental housing industry, targeting issues such as housing policy, capital markets, environmental affairs, tax policy, fair housing, building codes, technology, human resources and rent control. In addition, NMHC conducts apartmentrelated research, encourages the exchange of strategic business information and promotes the desirability of apartment living. NMHC – The Apartment Industry’s Who’s Who
NMHC’s membership goals have always emphasized quality over quantity. We seek – and we are sought out by – the “who’s who” of the apartment industry. Our gatherings are characterized by high-level exchange and give the industry’s leaders an opportunity to shape the industry’s future. We offer four levels of membership. Our Executive Committee is comprised of 44 firms and, together with our 146 Board of Directors firms, serves as NMHC’s decision-making body. Our Advisory Committee numbers 273 firms, and 441 firms serve as Associate members, our entry-level membership category. The Apartment Industry At-A-Glance •
Thirty-three percent of Americans rent their housing.1
•
Over fourteen percent of U.S. households—16.7 million households —live in an apartment (a rental unit in a building that has five or more units).2
•
The value of the entire U.S. apartment stock (buildings with five or more units) is $2 trillion.3
•
Rental revenues from apartments total over $120 billion annually.4
•
Leasing, management and operation of apartments are responsible for approximately 618,000 jobs.5
•
Construction of apartment communities from 2003 to 2007 added an average of 182,000 new apartment homes per year.6 The value of the new construction during these years averaged more than $32 billion annually,7 creating over 211,000 jobs.8
1.NMHC tabulations of 2009 Annual Social and Demographic Supplement data, Current Population Survey. 2.Ibid. 3.Rosen Consulting Group; NMHC. 4.NMHC calculation based on rent and tenure data from the 2007 American Housing Survey. 5.2007 Economic Census data. 6.http://www.census.gov/hhes/www/housing/soma/char07/files/char07t8.xls. 7.http://www.census.gov/const/www/C40/table2.html. This figure includes new construction of units for rent or for sale in buildings with five or more units. 8.NMHC estimate based on National Association of Home Builders report (http://tinyurl.com/6cyoua) and Survey of Market Absorption data.
1850 M Street, NW, Suite 540 Washington, DC 20036-5803 202/974-2300 (Telephone) • 202/775-0112 (Fax) info@nmhc.org (E-Mail) • www.nmhc.org (Web Site)