Bay State Apartment Owner 4Q 2013 by The Warren Group

FOURTH QUARTER 2013

against The Bias

Building for Families

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COVER FOURTH QUARTER 2013

The Bias Against Building for Families

Why Mass. is Lagging in the Multifamily Arena

CONTENTS

against The Bias

Building for Families

President’s Message

Executive Director’s Message

Saying Farewell, but not Goodbye Reach New Heights in Denver

06 & 07

Photo Gallery

Bay State Apartment Owner is the official publication of the Rental Housing Association. ©2013 The Warren Group Inc. and the Rental Housing Association. All rights reserved. The Warren Group is a trademark of The Warren Group Inc. No part of this publication may be reproduced in any manner without the express written consent of the publisher.

A division of the

Greater Boston Real Estate Board One Center Plaza, Mezzanine Level Boston, MA 02108 Phone: 617-423-8700 Fax: 617-338-2600

RHA Officers President: President Elect: Vice-President: Secretary: Executive Director:

Lynn Bora Joseph E. McPhee Jr. Gilbert Winn Sarah Mathewson John E. Lafferty

Published By THE WARREN GROUP Creative / Production / Advertising www.thewarrengroup.com 280 Summer Street Boston, MA 02210 Phone: 617-428-5100 Fax: 617-428-5118 custompubs@thewarrengroup.com

Pushing Wood Framing to Higher Heights

RHA Calendar

Fourth Quarter 2013 • BAY STATE APARTMENT OWNER

President’s Message BY LYNN BORA

Saying Farewell, but not Goodbye

As I write this, my final column as RHA president, the year is coming to a close, but RHA is hardly winding down. I would like to take this opportunity to thank the membership and the Board of Directors of the Rental Housing Association for affording me the opportunity to have served as your president. I am particularly appreciative of the committee chairs who have volunteered their time and leadership to bring us such a high level of service to our members. The Education Committee, under the leadership of Melissa Fish Crane and Karissa DeLisle, oversaw the offering of a wide va-

riety of education programming. The year began with nationally recognized professional designation courses for both Leasing Consultants (NALP) and Property Managers (CAM). In addition, NAA offered CAMT training for our maintenance team members. The Education Committee also “produced” locally oriented education programs, including the Breakfast Series; Fair Housing and Massachusetts Landlord Tenant Law classes; and what has become a hallmark of our educational offerings, the Spring Marketing Event. Most significantly, these programs were all delivered in classroom settings, giving attendees the opportunity to learn from and network with their peers, and for many, this exposure to the association will result in their becoming members and in time taking a leadership role.

Gilbert Winn and Mark Epker took the lead on the Affordable Housing Committee. Early in the year, a working group meeting with MassHousing covered a broad range of topics including financing, SHARP, the rental portal and energy efficiency initiatives. During the summer, the Committee welcomed Joe Crisafulli and Maurice Barry, both from Boston’s HUD office, as part of our brown bag luncheon series. The fall program with MassHousing was a Rental Lending Update. The cumulative effect of these meetings and the resulting dialogue has been the continuation and strengthening of a collaborative approach to the agency/industry relationship. The Affiliate’s Council, cochaired by Mark Engdahl and Paula Solemina, held the perennial spring golf event this year at

Congratulations to these management companies for their exceptional efforts to contract with minority- and women-business enterprises: Maloney Properties Peabody Properties Trinity Management United Housing Management WinnResidential Management www.masshousingrental.com 4

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the popular Franklin Country Club. One of the big success stories of the year was the second annual spring cookout at Gillette Stadium, hosted by AB Supply, ARS Restoration Services, Belfour Property Restoration, Clean Green Solutions, Metropolitan Cabinets and Countertops, Norfolk Hardware and T&K Asphalt. Under the direction of Karissa DeLisle, the NextGen committee continues to offer a pathway to membership and a value added experience for industry professionals with ten or fewer years of experience. Next Gen discounts and networking events, such as the gatherings, compliment the popular NextGen Night Out. The capstone of the year is the NextGen Leadership panel where industry leaders share stories about their careers in the multi-family industry. Our fall conference and exposition, under the direction of Guy Corricelli and Bryan Dempsey, set a new record for booth sales and continues to be our best-attended event. The President’s Awards Dinner (which is still in the future as I write this) promises to continue to be the premier event of the multifamily industry, thanks to the committee leadership of Joe McPhee. Once again, The Dolben Company supplied the volunteers to make the Maintenance Mani competition possible for all our member companies. And we are still not done. 2013 saw another successful Business Exchange, thanks to industry purchasing decision members who volunteered their time and our affiliate partners who made voluntary donations to the NAAPAC. Thank you all, whether you volunteered on a RHA committee or program, or supported RHA with your attendance. It was a great year, and we’ll look forward to keeping the momentum going into 2014. n Lynn Bora is 2013 president of the Rental Housing Association.

Construction Professionals for Quality Residential Development For more information contact Jeffrey Ellowitz / 781.272.9440 / jellowitz@erland.com Erland Construction

Massachusetts

Connecticut

www.erland.com

Crime and Death Scene Cleaning Abatement and disposal of biological and infectious hazards

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Executive Director’s Message BY JOHN E. LAFFERTY

Reach New Heights in Denver

oin more than 6,600 multifamily housing professionals who want to enhance their careers and their businesses, this June at the Colorado Convention Center. Nowhere else will you find world-renowned leaders leading keynote sessions. In the past NAA has hosted speakers such as Sir Richard Branson and Bert Jacobs, former presidents and their chiefs of staff, artists, entrepreneurs and more. The conference offers attendees more than 40 sessions covering topics in 12 tracks, including thought leaders, executive/strategic, marketing/leasing, technology, marketing and leasing, legal, green, human resources, operations/ management, professional development, military and specialty. Attendees can earn all six continuing

education credits needed to renew their NAA designations. Networking opportunities abound, beginning with the Conference Kick Off Celebration at 4:45 p.m. on Wednesday, June 18, followed by the Conference Welcome Reception and then the NAAPAC/ BGF Event. On Thursday, network during the “grab and go lunch,” the Exposition Grand Opening and, at 7 p.m., the NAA Opening Party. Maintenance Mania takes place on Friday and the NAA Awards Celebration Breakfast takes place Saturday morning. Who attends the conference? Attendees include CEOs, owners, presidents and executives in the multifamily industry, property managers of both small and large communities, regional managers, onsite managers, and personnel in charge of ancillary revenue, purchasing, marketing and sales, technology, maintenance, leasing and more.

NAA Maintenance Mania The Lantana, Randolph, October 3, 2013

BAY STATE APARTMENT OWNER

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Fourth Quarter 2013

Registration is now open. Register on or before Feb. 3, 2014, and pay just $675 for a member, full conference registration. Save even more on group rates! Hotel rates (subject to availability) range from $169 to $234 at the Official NAA Conference Hotels. The conference is held at the Colorado Conference Center, within easy walking distance of over 8,400 hotel rooms, 300 restaurants, nine theaters of the Denver Performing Arts Complex and a wide variety of shopping and retail outlets. Denver International Airport is located less than 35 minutes from downtown by car, shuttle bus, public transportation or taxi. For updated speaker information, to view videos or to learn more, visit the NAA Education Conference website at www.naahq.org. n John Lafferty is the executive director of the Rental Housing Association.

RHA Fall Conference & Expo Hynes Convention Center, Boston, September 27, 2013

Fourth Quarter 2013 â&#x20AC;˘ BAY STATE APARTMENT OWNER

against The Bias

Building for Families

Why Mass. is Lagging in the Multifamily Arena

By Scott Van Voorhis

ncredibly, you can add the humble three-bedroom apartment to the list of undesirable development towns and suburbs across Massachusetts want to ban. Just 6 percent of all apartments built in the last decade under the Bay State’s affordable housing law were three bedrooms. By contrast, roughly a quarter of the rental market across the Northeast is made up of rentals that are at least three-bedrooms or larger. It’s hardly due to lack of demand. A shortage of apartments of all sizes has made Massachusetts one of the most expensive places on the planet to rent in. Rather, small town and suburban politicians are pressuring developers to ditch plans for three-bedroom units and instead stick with smaller, one- and two-bedroom units. After all, they just might be appealing to families with children, which, based on the actions of local officials, appear to be just as unwelcome in many Bay State communities as toxic waste and methadone clinics. “The bias against multifamily housing and school children from rental properties is enormously strong,” said John Connery, a longtime Melrose-based housing consultant who works with communities and developers. The pushback against three-bedrooms can be seen in communities across the state. In fact, it has gotten so bad that the state is preparing to mandate that three-bedrooms make up at least 10 percent of all new apartments built under Chapter 40B, the state’s long-standing affordable housing. 8

BAY STATE APARTMENT OWNER

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Fourth Quarter 2013

The most recent battles have taken place in the suburbs of Boston. In Walpole, Bayberry Homes dropped plans to include three-bedroom apartments in its proposed, 174-unit housing complex after getting some very strong hints from town officials. By contrast, in Norton, the chairman of the local board of selectmen backed off on a push to ban threebedrooms from a proposed new apartment complex after hearing about the pending move by the state. Local officials talk a good talk about trying to protect constituents from rising school costs. One local nabob was incredulous after it became clear I wasn’t ready to jump on the anti-rental housing bandwagon with him. “Of course,” he replied, as if to a slow learner, when asked if his opposition to three-bedrooms was related to concerns that families with children might be moving in. “It just makes commonsense if you have more bedrooms, you are going to have more children,” he said.

A Lot of Hot Air But that argument is getting weaker by the year, with studies by UMass-Boston and Tufts having exposed them as so much hot air. UMass-Boston’s Donahue report found that school costs in communities across the state rose and fell independent of enrollment trends, going up at times even in cases where student enrollment dropped. What’s really happening is just small-town politics and demagoguery at its worst, driven by fear of change

NUMBER OF PERMITS PULLED FOR MULTIFAMILY PROJECTS: 2011: 2,752 2012: 5,019 STATE’S GOAL PER YEAR UNTIL 2020: 10,000 SOURCE: U.S. CENSUS BUREAU

and outright ugly attitudes about renters and, worse still, their children. Clearly, in the minds of some small-town pols, every new apartment complex is a potential urban-style housing project filled with Section 8 tenants, even if families are having to fork over $1,500 or more a month in rent. But laughable or not, such attitudes are helping distort our state’s already highly distorted housing market, helping drive up rents for everyone, including families with children. There is already a dire shortage of apartments across the state, let alone without town and local officials trying to stop anything larger than two-bedroom from getting built. New apartment and condo construction is struggling to emerge out of a decades-long slump. While 5,191 units were given approval by towns and cities across the state in 2012, it was just half of the 10,000 multifamily units Gov. Deval Patrick has declared are needed to keep up with current and future demand. Not surprisingly, Massachusetts is the seventh most expensive state in the country for renters, with the average two-bedroom costing $1,271 a month, the National Low Income Housing Coalition finds. Once you strip away the BS and get to what’s really going on here, there’s lots of room for outrage here. In fact, this is an issue that should unite both liberal affordable housing activists and conservatives who put their faith in the free market, a category developers are more likely to fall into. First, there is a moral issue, with local officials effec-

tively discriminating against families with children. No, it’s not exactly like a landlord who says, “Thanks, but no thanks, but I just don’t want kids in my building” – and there are still plenty of those jerks out there. But it’s damn close. You have local officials basically stopping construction of apartments for the sole reason that families with children would be more likely to rent them out. If the units aren’t there because of boneheaded local housing policies, it’s all not that much different than some mother and her young children being turned away by some bigoted landlord. However, free market advocates should also be lobbying hard to open up our state’s incredibly overregulated housing market as well. A good part of our state’s chronic woes could be solved not by creating some new government initiative or program, but by simply demolishing the irrational maze of local zoning rules and regulations and letting the market do its thing. There’s a huge market demand for housing of all types here in the Bay State, including three bedrooms. But developers are effectively being prevented from serving this market and rightly profiting from the honorable work of building places for people to live, Any way you look at it, trying to stop apartments from being built to keep children out is about is as low as you can go. And that we tolerate this nonsense, especially in this age of supposed hypersensitivity to discrimination of any kind, is just flat-out amazing. n Scott Van Voorhis can be reached at sbvanvoorhis@hotmail.com. Fourth Quarter 2013 • BAY STATE APARTMENT OWNER

MASSACHUSETTS ASSACHUSE IT’S TIME TO SWITCH!

REPLACE EXPIRED CO ALARMS WITH NEW 7-YEAR MODELS In March 2006, Nicole’s Law, which requires homeowners and landlords to install carbon monoxide (CO) detectors in all buildings containing bedrooms and sleeping facilities, went into effect throughout Massachusetts. Named after 7-year-old Nicole Garofalo, who died from CO poisoning caused by a blocked vent in her home, Nicole’s Law has helped protect countless Massachusetts residents from the dangers of this invisible, odorless and potentially fatal gas. While alarm lifespan may vary by model and manufacturer, a properly maintained CO alarm has a lifespan of approximately five to seven years. Approved CO alarms have a built-in end-of-life warning to alert residents of the need for replacement. Therefore, alarms that were originally installed when Nicole’s Law first took effect likely have or soon will sound their end-of-life alert and are due for replacement. For more detail on Massachusetts’ CO alarm requirements and replacement, visit the Massachusetts State Legislature website at: http://www.malegislature.gov/Laws/GeneralLaws/PartI/TitleXX/Chapter148/Section26F1~2

BRK/First Alert products are stocked at MRO and Electrical Wholesalers throughout Massachusetts. To ensure compliance with Massachusetts’ Nicole’s Law, contact your local distributor or call BRK/First Alert at 1-800-275-2576 for assistance. The information provided herein is BRK Brands, Inc.'s summary interpretation of this law. It is only intended to be used as general reference material. It is neither authoritative nor intended to take the place of either the written law or applicable regulations. This should not be construed as an attempt to offer or render legal advice, a legal opinon, or othewise engage in the practice of law.

Compliant BRK/First Alert Alarms - 7 Year Life & Warranty To learn more about protection from CO poisoning, visit www.firstalert.com and www.brkelectronics.com.

Battery Operated CO250B: 9V battery powered, electrochemical CO sensor, silence, tamper resistant. CO250LB: CO250B with 9V lithium battery. The following notice contains approved language from the New York City Department of Housing Preservation and  CO250LBT: CO250B with 5-Year 9V lithium Urban Development. Please photocopy as needed in order for you to bring all units into compliance.  battery and tamper proof bracket.

*NOTICE*  CO400B: Battery powered, electrochemical

CO sensor, silence. powered, digital display,alarm The law requires the owner of theCO410B: premisesBattery to provide a carbon monoxide electrochemical CO sensor, silence. in each apartment in this building. The carbon monoxide alarm must be placed within 15 feet of the primary entrance to each room lawfully used for sleeping, Combination Smoke/CO Alarmsand must be must be of the type equipped with an end of life audio indicator, SCO2B: 9V battery ionization smoke/ periodically replaced by the property owner aspowered, necessary. Tenants are silence, tamper resistant. responsible for the maintenanceelectrochemical and repair ofCO, the alarms installed in the apartment and for replacing any or all alarms that with are stolen, removed, SCO2LB: SCO2B 9V lithium battery.missing, or become inoperable during the occupancy of the apartment. The law provides SCO5B: Two AA battery powered, photoelectric that the occupant of each Class smoke/electrochemical A apartment in a building in which a carbon CO, silence, tamper resistant. monoxide alarm is provided and installed shall pay the owner $25.00 per alarm for the cost of such work for the initial and each periodic replacement. The occupant has one year from the date of installation to make such payment to the owner.

Hardwired with Battery Backup

WHAT IS CARBON MONOXIDE (CO)?

CO5120BN: 120Vgas AC, 9V battery backup, Carbon monoxide (CO) is a colorless and odorless known as the silent killer. According to the Journal of the American Medical Association, CO poisoningCO is the numbersilence. one cause of accidental poisoning in electrochemical sensor, the United States. Diagnosis of CO poisoning can be difficult because symptoms mimic those of many CO5120PDBN: Same asweakness, CO5120BN other illnesses and include nausea, headaches, dizziness, chestwith pain and vomiting. In more severe poisoning cases, people may experience digital display. disorientation or unconsciousness, or suffer long-term neurological disabiltiies, cardiorespiratory failure or death. Regardless of a homeʼs age, people can be exposed to this poisonous gas, which originates from anything that burns fuel, such as gas furnaces, stoves, water heaters, barbeque grills, wood-burning fireplaces and automobiles. Combination Smoke/CO Alarms Avoiding CO Poisoning SC9120B: 120V AC, 9V battery backup,  All fuel-burning (gas, oil and coal) devices should be serviced by a qualified technician every ionization smoke/electrochemical CO, silence, year. Generators, charcoal grills, camp stoves and other similar devices should only be used outdoors. tamper resistant.  CO alarms should be installed outside each sleeping area (such as in a hallway outside the SC7010B: AC,should AA battery backup, bedroom). For maximum protection,120V an alarm be installed on each level of the home. Battery-operated CO alarms or plug-in alarms with battery backup are CO, preferred in case of power photoelectric smoke/electrochemical silence, failure. tamper resistant.  Call 911 and leave the home immediately if the CO alarm sounds. Additional CO Alarm Guidelines  Clear CO alarms of all dust and debris.  Ensure that alarms are plugged all the way into the outlet or, if battery operated, have working batteries installed. Check or replace the battery when you change the time on your clocks each spring and fall.  Make certain each person can hear the CO alarm sound from his or her sleeping room and that Plug-In with Battery Backup the sound is loud enough to awaken everyone.  Make sure the alarms are installed at least 15 feet away from sources of CO to reduce the CO604B: 120V AC plug-in with 9V battery number of nuisance alarms.

backup, electrochemical CO sensor, silence.

To learn more about protecting your family from CO poisoning, visit www.firstalert.com and www.brkelectronics.com. ©2012 BRK Brands, Inc., Aurora, IL 60504. All rights reserved. First Alert® is a registered trademark of The First Alert Trust, Aurora, IL 60504. BRK Electronics® is a registered trademark of BRK Brands, Inc., Aurora, IL 60504.

Framing to

HIGHER HEIGHTS

By Nancy Ludwig, Jay Ieradi and Rimas Veitas

he advent of taller wood buildings is upon us. Recent changes to the building code have ushered in an era of wood construction, up to 85 feet in height, never before seen in the Boston area. In the past, urban midrise construction required the expense of steel framing; less costly wood framing was relegated to outer urban/

BayState Apartment Owner Salsbury Industries

suburban two- to four-story low-rise residential construction. Now, however, wood framing can be built up to five stories in height, on top of a separate podium structure of one story above grade, achieving height and density appropriate in the urban environment at a cost far less than steel or concrete construction. Five- and six-story proto-

Runs in: Fall/Spring

BAY STATE APARTMENT OWNER

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Fourth Quarter 2013

types have already hit the Boston marketplace – including the recently completed Gatehouse 75 at 75 West School St. in Charlestown and 411 D St., now under construction in the Seaport – and others are in the pipeline. These significant changes have come about with the Massachusetts State Building Code recently incorporating the International Building Code (IBC). The concept of a horizontal fire wall was incorporated so that a single structure can now be considered two separate buildings, vertically stacked. The lower “podium” building is required to be built to a noncombustible fire-resistive construction type and is limited to a single story above grade; however, the fire separation provided by the podium allows the upper level wood-framed “building” to maximize the potential of its construction type, up to five stories (if sprinklered). Additionally, the ground level podium of higher construction class is allowed to contain multiple uses, which now include residential. These relatively simple code changes, allowing four or five stories of housing to be built one story taller, increase capacity up to 50 percent within the same area limits. Additionally, mezzanines, which are smaller upper levels within an open loft type unit, can be added and are not considered a full floor. Although the structures currently being built are considered mid-rise – below 70 feet in height – new codes will allow building heights of 75 or 85 feet. These taller wood frames employ significantly more framing, often requiring doubled or tripled wood studs

411 D St., a multi-story wood frame building currently under construction in the Seaport.

on lower levels. And, if a building is to reach five or six stories, it must comply with stricter fire-prevention standards. For example, the taller exterior walls are required to be noncombustible or have the option of using fire-retardant treated framing; fire-treated wood studs must be made from yellow pine, which has a higher compressive strength suitable for carrying the weight of heavier (taller) loads. Wood floor trusses framed into these fire-treated walls must also be fire-treated for some length – and the connections between the vertical and horizontal framing must maintain continuity of the fire-rated assembly. Additionally, floor-to-floor acoustical privacy requires sound mats and resilient clips for ceiling attachment.

Beware of Shrinkage Prior concerns about dimensional stability still remain. Wood shrinkage is greatest in the horizontal top, sill and sole plates that connect the vertical studs. Shrinkage concerns can be somewhat alleviated by the use of special structural details. Some areas of the country have begun a return to semi-balloon framing to limit shrinkage to the single joint where trusses are supported at the vertical wall. Typically shear walls are incorporated into numerous demising partitions and work well to resist lateral forces – and also allow these larger structures to perform well in earthquakes, as many bearing walls allow multiple load paths. Promising the potential for even higher heights, a new manufactured multi-layer wood product,

cross laminated timber (CLT), is now being used in Canada and Europe. A nine-story wood-framed building was recently completed in London. So far, CLT is not referenced in the International Building Code. The best exterior cladding for these structures is the lightest – cementitious siding or metal shingles are the materials of choice for both their light weight and low cost. However, in many urban environments, robust masonry is a more appropriate exterior material. With brick, height limits of 30 feet (three stories) still apply, so if these five and six-story urban buildings are clad in brick to their full height, it can be tricky (and costly) to incorporate steel relieving angles and structure to carry upper level exterior veneer loads. Still, constructing a mid-rise building predominantly wood-framed is a viable, cost-effective approach to urban density. With lower material and installation costs, combined with readily available materials and faster construction, such structures can easily yield savings of up to 30 percent compared to a steel and concrete framed structure. Sweetening the deal is the fact that wood construction is sustainable, employing a rapidly renewable material that contributes greatly to overall reduction in construction’s carbon footprint. n Nancy Ludwig is president of ICON Architecture; Jay Ieradi is the code consultant at AKF Group; Rimas Veitas is president of Veitas & Veitas Engineers.

Photos by Cassidy Murphy

RHA Calendar December 12, 2013 RHA Presidents Awards Renaissance Waterfront, Boston January 14, 2014 Bruins vs. Maple Leafs Weekly, March 5 through April 2014 Certified Apartment Manager CAM March 6, 2014 NextGen Gathering March 9 – 10, 2014 NAA Capitol Conference Omni Shoreham, Washington, DC June 19 – 21, 2014 NAA Education Conference & Expo Denver, Colorado October 22, 2014 RHA 2014 Conference & Expo Hynes Convention Center, Boston Where indicated, dates and locations are subject to change. For additional information, visit www.gbreb.com/rha.

For more information regarding upcoming RHA programs and events, please contact Josh Cooke, education and events coordinator, 617-399-7860 or via e-mail at jcooke@gbreb.com. Fourth Quarter 2013 • BAY STATE APARTMENT OWNER

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617.428.5100 617.428.5118 www.thewarrengroup.com

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