See the latest on Houston`s horizon and learn what`s to come

Transcription

ABODE
NOVEMBER 2008
The Houston Apartment Association Magazine
Up and
Coming
See the latest on Houston’s horizon and learn what’s to come
CONTENTS
ON THE
COVER
Photo by MARK HIEBERT, Hiebert Photography
November 2008
Market Momentum
30
38
Sell Low, Rent High – The slow-down in singlefamily home sales due to the subprime lending
crisis has given the apartment market a big boost.
The Finger Companies’ Park
Up and Coming – ADS’s second semiannual list of
the year shows properties under construction, now
leasing and proposed.
is one of the many new multi-
46
Due Diligence – Doing your homework is an
essential component of your management plan.
50
Here We Go Again – Resident screening and
rental housing after Ike will not face the same
challenges as the ones posed by evacuees in 2005.
54
Tower, overlooking Discovery
Green in downtown Houston,
family developments that
ABODE focuses on for
November. Also this month,
take a closer look at the state
of Houston’s apartment market
in a special feature report on
occupancy and rental rates.
Measure Satisfaction – Ask your residents early
and often what they like and don’t and how you
can improve.
Features & Photos
42
Photo Album – Scenes from the debate-watching
party and fundraiser to support the NAA PAC.
58
Designate of the Month – Kathy Moriarity puts
her knowledge of psychology and sociology to
good use in the apartment business.
30
66
Photo Album – Scenes from hurricane recovery
meetings with insurance company representatives
and city and HUD officials and from the ACT Safe
self-defense seminar.
42
Departments
8
19
20
25
60
62
64
66
67
74
75
76
PATRON
EDUCATION
CALENDARS
REGISTRATION
WELCOME MAT
AMBASSADORS
GO-GETTERS
PROPERTY UPDATE
IN THE NEWS
ADVERTISERS INDEX
MARKET LINE
BACK PAGE
Columns
7
President’s Corner – Efforts to provide answers for the media and raise funds for charity demonstrate
our commitment to our community.
9
Legislative Update – Lessons from Katrina are helping housing officials shape a more effective program.
11
It’s The Law – A court decision means apartment managers can’t be held liable for on-site crime.
14
Resident Relations – Residents who note carpet flaws at move-in often prevail in disputes at move-out.
16
Words From NAA – The new curriculum for the CAPS designation program is now complete.
17
TAA Update – Avoid liability for sexual harassment claims by crafting a policy for handling complaints.
26
NAA Industry Update – Congress addresses rulings on disability accommodations, acts on GSE reform
and encourages energy efficiency.
28
Media Roundup – HAA leaders stepped up to provide public faces for the industry for media after Ike.
We welcome your
comments and letters.
Write to us at:
HAA Communications Dept.
4810 Westway Park Blvd.,
Houston, Texas 77041
or fax to: 281-582-1506.
Or send us an e-mail at:
comm@haaonline.org.
ABODE
NOVEMBER 2008
3
OFFICERS AND ASSOCIATION LEADERSHIP
JOHN RIDGWAY
PRESIDENT
BETH VAN WINKLE
PRESIDENT-ELECT
DAVID JONES
VICE PRESIDENT
BOARD OF DIRECTORS
PRODUCT SERVICE COUNCIL
SPONSOR MEMBERS
Suan Tinsley,
Immediate Past President
Josh Allen
Mack Armstrong
Brian Austin
Margaret Balderaz
Gene Blevins
Jeff Blevins
Roger Camp
Kathy Clem
Ernest Etuk
John Fedorko
Darlene Guidry
Billy Griffin
Alison Hall
David Hargrove
Larry Hill
Deborah Holcombe
Theresa Lamar
Dick LaMarche
Cesar Lima
Etan Mirwis
Michelle Bridges-Pahl
Velissa Parmer
Byron Plant
Jackie Rhone
Kelly Scott
Trey Stone
Eileen Subinsky
Vicki Summitt
Sal Thomas
Starla Turnbo
Vic Vacek Jr.
Debbie Webre
Tony Whitaker
Jerold Winograd
Michelle Ybarra
OFFICERS
Tony Whitaker, President
FSI Construction
Vicki Summitt, CAS, Vice President
Direct Energy
Jeff Blevins, CAS, Secretary
Camp Construction Services
Michelle Bridges-Pahl, CAS, Treasurer
Century Air Conditioning
Cesar Lima,
Immediate Past President
AAA Plumbers
1968
Reliant Energy
DIRECTORS EMERITUS
Gary Blumberg
Al Bradley
Jack Dinerstein
Jenard Gross
Hap Hunnicutt
Stacy Hunt
Nora Krakower
Tim Myers
John Moore
P. David Onanian
Stephen Sweet
Kirk Tate
H. J. Tollett Jr.
Patrick J. Tollett
KIM SMALL
SECRETARY
HOWARD BOOKSTAFF
GENERAL COUNSEL
JEFF HALL, CAE
EXECUTIVE VP
NOVEMBER 2008
ABODE
1980
Great American Business Products
Penco Construction Co.
Marvin Poer & Co.
1981
Hoover Slovacek LLP
1982
Wallace Garcia Wilson Architects Inc.
1983
Webb Pest Control
Cort Furniture Rental
1984
Brady, Chapman, Holland & Assoc.
1985
Gemstar Construction &
Development Inc.
Golden Greek Carpets Inc.
1987
For Rent Media Solutions
Houston Metro Electrical Corp.
Namco Manufacturing Co. Inc.
1988
AmRent
Big Z Lumber Company
HCI Building Group
Redi Carpet Sales
Sherwin Williams Company
1991
Apartment Data Services
1992
Alexander-Rose Assoc. Inc.
1993
Comcast
1998
AAA Staffing Ltd.
2000
Pools by Dallas
2001
Pura Flo Corporation
Renovation Services Inc.
Joe Bax
TREASURER
1977
M&M Lighting Inc.
1978
Liberty Personnel/Executive Search
1997
Paramount Insurance Repair Service
RENCON
GENERAL COUNSEL EMERITUS
JENIFER PANERAL
4
MEMBERS
Peggy Charles
Brandt Electric
Arrie Colca, CAS
Craven Carpet
Laura Collins, CAS
Classic Touch Painting
Kevin Fenn, CAS
Pavecon
Michael Flores
Higher Standard Construction
James Gregory
Redi Carpet Sales
Lisa Grimes
D&C Contracting
Jimmie Hotz, CAS
HD Supply
Deona James, CAS
Resident Data
Alan Jones, CAS
ICI Paints
Susan Lee, CAS
Craven Carpet
James Lenhardt
Hire Priority Staffing & Executive Search
Karen Nelsen
Brenda Nite
J&L Distributors
Dean O’Kelley, CAS
Liberty Personnel/Executive Search
Mindy Price
BG Personnel Services
Beth Rohani, CAS
Ameritex Movers
Nichole Williams, CAS
Apartment Guide
Andrea Winans
Bishop’s Office Needs
1976
Mueller Water Conditioning
HONORARY LIFE MEMBERS
PATRON MEMBERS
Claude Arnold
Kenn Brown
Anita Harrison
Dwayne Henson
Mike Koch
Nora Krakower
Merry Mount
Monette Reynolds
Sherry Stevenson
Kirk Tate
Suan Tinsley
Del Walmsley
Nancé Wells
Jeanne Marie Zublin
1980
Coinmach
Texas Apartment Locators
1981
WEB Intelligent Laundry Systems
1982
BFI Waste Services of Texas/
Allied Waste
1983
Royal Plumbing Supply
1994
AAA Plumbers
Presto Maintenance Supply
Whirlpool Corp.
1996
Houston Planned Energy Systems
1997
Apartment Guide
2003
Dixie Carpet Installations
MAB Flooring Inc.
2002
Gexa Energy
Southwest Painting Contractors Inc.
Wilmar Industries Inc.
2003
Capital Welding & Construction
Sign-Ups & Banners Corp.
Southern Wrecker
Utility Advantage of Texas
2004
Assessment Advisors
Embark – The Tree Specialists
Ygnition Networks
2005
Apartment Appliance Leasing
First Advantage SafeRent Inc.
Lone Star Roofing of Texas
Regal General Contractors Inc.
United Protective Services
2006
Bell’s Laundries
N.D. Chandler Mechanical
CAD Restoration Services LLC
Corestone Paving & Construction
DoodyCalls
First Co.
Lopez Carpet Care & Painting
Masonry Solutions Inc.
Parking Management Company
Quantum Fitness Corp.
Roto-Rooter Services Co.
Texas Contract Floors Inc.
USA Decon
Valet Waste
ZipReports
2007
ABC Restoration Inc.
ACR Supply Inc.
American Sports & Concrete LLC
Apple Moving
Builders Granite & Tile Inc.
Choice Corporate Housing Inc.
D&C Contracting
Delaney’s Roofing & Construction
Double Trees Construction
The Mad Hatter of Corpus Christi Inc.
Don McGill Toyota of Katy
Merit Parking Company
Millennium Lock Inc.
Premier Carpet Cleaning
RoofTec
SLM Construction Services
Site Reconstruction LLC
Suntrust Real Estate Corporation
Veritas Services
2008
AAPCO Group
ACS Partners LLC
AMS Restoration Services Inc.
Accent Coat Refinishing
All Stages Plumbing of Texas LLC
Anderson Restoration
Atlas 1031 Exchange LLC
Atlas Comfort Systems USA
Bury & Partners Inc.
Daniels Plumbing Co. Inc.
M.L. Deer Construction Co. LP
Eco Lawn LLC
Elite Apartment Services Inc.
Fire Restoration Inc.
Flavor Finish Resurfacing
Harco Insurance Services
Holden Roofing
In-Ex Designs
Jusa Resurfacing & Paint Co.
KT Building
LowVolt Technologies
The Master’s Roofing Construction
Contractors
Matrix Paving Services LLC
Med Security Inc.
Media Nation
Mr. Brick of Houston Inc.
Nationwide Investigations &
Security Services Inc.
Rehab Systems
SEALS...Sales Experts And
Leasing Specialist
Satisfacts Research
SpaceCenter Systems Inc.
Texas Turf Management
Turner Electrical Services Co.
USI Energy Inc.
AFFILIATES
ABODE
NOVEMBER 2008
VOLUME 31, ISSUE 11
Executive Vice President and Publisher JEFF HALL, CAE jhall@haaonline.org
EDITORIAL STAFF
Director of Publications and Design DEBORAH NIX dnix@haaonline.org
Managing Editor RACHEL ZOCH rzoch@haaonline.org
ADVERTISING
Director of Supplier Services AMANDA SHERBONDY asherbondy@haaonline.org
CONTRIBUTING STAFF
Vice President and General Manager SUSAN HINKLEY, CAE shinkley@haaonline.org
Vice President of Events and Meetings CARA JOHNSON, CMP cjohnson@haaonline.org
Vice President of Professional Development EMILY HILTON, CPP ehilton@haaonline.org
Vice President of Public Affairs ANDY TEAS, CAE ateas@haaonline.org
Controller NANCY LI LO, CPA nlo@haaonline.org
Director of Facility Services LANA SHILLER lshiller@haaonline.org
Director of Form Sales FRANCES TORRES ftorres@haaonline.org
Director of Information Technology MARY PARKHOUSE, CAE mparkhouse@haaonline.org
Director of Member Services LISA BUTLER lbutler@haaonline.org
Director of Resident Relations MATILDE LUNA mluna@haaonline.org
Education and Meetings Manager KIRSTEN DEAGEN kdeagen@haaonline.org
Public Affairs Specialist AIMEE BERTRAND ARRINGTON aarrington@haaonline.org
Resident Credit Reporting Manager LUISA AREVALO larevalo@haaonline.org
Webmaster and IT Specialist WILL ALFARO walfaro@haaonline.org
PRINTER
TGI PRINTED www.tgiprinted.com
HOUSTON APARTMENT ASSOCIATION COMMITTEES
COMMITTEE
Program & Budget Committee
Nominating Committee
National Liaison
State Liaison
Ethics Committee
Investment Committee
Owners Committee
Legislative Committee
HAA Better Government Fund
Century Club
Developers Committee
Multifamily Fire Safety Alliance
Media Relations Committee
Resident Relations Committee
Resident Relations Committee A
Resident Relations Committee B
Product Service Council
Community Relations Committee
Membership Committee
Ambassador Club
Go-Getter Club
Membership Campaign
IROC Committee
Education Advisory Council
Career and Community Development
SOAPS Committee
Golf Tournament Committee
HAF Fund-raiser
2008 Education Conference & Expo
2008 Expo Exhibitor Committee
Online Advisory Committee
CHAIR
BETH VAN WINKLE
SUAN TINSLEY
JERRY WINOGRAD
DAVID HARGROVE
EILEEN SUBINSKY
MACK ARMSTRONG
STACY HUNT
BETH VAN WINKLE
STACY HUNT
JEFF BLEVINS
BRIAN AUSTIN
BYRON PLANT
JENIFER PANERAL
DARLENE GUIDRY
SANDRA HAZELWOOD
STACI MCMILLAN
TONY WHITAKER
KYLE BROWN
DAVID JONES
MICHELLE BRIDGES-PAHL/KEVIN FENN
BILLY GRIFFIN/GLORIA HANEY
VARIOUS CAPTAINS
DEL WALMSLEY
KIM SMALL
BETH ROHANI/GEORGEANNE LONGORIA
STARLA TURNBO
ROGER CAMP
PATRICK BROTHERS/MICHELLE GATES
KIM SMALL
VICKI SUMMITT
TREY STONE
STAFF ADVISOR
JEFF HALL
JEFF HALL
JEFF HALL
JEFF HALL
JEFF HALL
JEFF HALL
JEFF HALL
ANDY TEAS
ANDY TEAS
ANDY TEAS
ANDY TEAS
ANDY TEAS
AIMEE ARRINGTON
MATILDE LUNA
MATILDE LUNA
MATILDE LUNA
SUSAN HINKLEY
SUSAN HINKLEY
LISA BUTLER
LISA BUTLER
LISA BUTLER
LISA BUTLER
EMILY HILTON
EMILY HILTON
EMILY HILTON
KIRSTEN DEAGEN
CARA JOHNSON
CARA JOHNSON
CARA JOHNSON
AMANDA SHERBONDY
WILL ALFARO
HAA MISSION AND VALUES
The Houston Apartment Association is the leading advocate and resource to further the quality of rental
housing in the greater Houston area. Core values guiding the governance and management of HAA are:
• Promoting community involvement, leadership and collaboration • Grounded in integrity, excellence
and ethics • Embracing diversity • Source of lifelong career development
Visit HAA Online at www.haaonline.org
ABODE IS THE OFFICIAL PUBLICATION OF THE HOUSTON APARTMENT ASSOCIATION.
Serving the multihousing industry in Austin, Brazoria, Chambers, Colorado, Fort Bend, Harris,
Liberty, Matagorda, Montgomery, San Jacinto, Waller and Wharton counties.
ABODE, NOVEMBER 2008, VOLUME 31, ISSUE 11
ABODE is published monthly by the Houston Multi Housing Corporation. Publishing, editorial and advertising
offices are located at 4810 Westway Park Blvd., Houston, Texas 77041. Telephone 713-595-0300. The $50
annual ABODE subscription rate is included in all member dues and additional subscriptions are available.
The annual subscription rate is $50 for members, $65 for non-members. Advertising rates are available upon
request. Contributed material does not necessarily reflect the views and opinions of the Houston Apartment
Association. Copyright © 2008 by HAA.
Application to Mail at Periodicals Postage Rates is Pending at Houston, Texas.
POSTMASTER: Send address changes to ABODE, 4810 Westway Park Blvd., Houston, Texas 77041.
ABODE
NOVEMBER 2008
5
November General Meeting
PRESIDENT’S CORNER
Annual Business Meeting
• Recognition of 2008 Committee Members
• Recognition of 2008 NAA Designates
• Nomination and Election of 2009 Board of Directors
• Presentation of 2008 Appreciation Awards
• Special Guest Speaker Debra Duncan
Annual Business Meeting
Thursday, November 20
6 p.m. to 8:30 p.m.
Hilton Post Oak Hotel,
2001 Post Oak Blvd.
$35 if received by November 17;
$45 after November 17
Reserved tables of 10 available with company name
Reception and Seated Dinner
American Express, Visa, MasterCard and Discover are accepted in person,
over the phone and by fax. Notice of cancellation is required two days prior
to the event for a refund, less a $5 administrative fee. All pre-registered noshows will be billed. Payment is required at the door if not received prior to
the event. For reservations and information, contact the Education &
Meetings Department at 713-595-0300, e-mail educ@haaonline.org or
online at www.haaonline.org. Register online and save 10 percent.
Sponsored by
Liberty Staffing/Executive Search
and Resident Data
6
NOVEMBER 2008
ABODE
As soon as you meet Debra Duncan, you
can tell that this bright lady is truly genuine and someone you want to have as a
friend. Currently, she is a news anchor for
KHOU-11 and host of “Great Day
Houston.” She hosted “Debra Duncan”
live on ABC-13 weekday mornings at 9 a.m. Debra
comes to Houston’s KTRK-TV from New York where,
from February 1997 to mid 1998, she was with Lifetime
Network Television as co-host for “Our Home.” This
national cable hour provided information to help viewers
get the most out of their lives. Prior to that, Debra was
with WFAA-TV in Dallas. She began her three-year stint
there as a general assignment reporter. While handling
this duty, she also was named as co-host of “Good
Morning Texas” and also anchored the station’s early
morning newscast. Her talents have been recognized
with numerous awards, which include a regional Emmy,
best feature; two Emmy nominations; a variety of awards
from the Texas Association of Broadcasters for news
reporting; Best of Gannett Awards; and various community service awards. She graduated from the University
of Texas at Austin with a Bachelor of Science degree in
Radio-Television-Film. While in Austin, she worked at
KVUE-TV as a reporter and anchor.
By
JOHN RIDGWAY, 2008 HAA President
Reaching Out
Our efforts to provide answers for the media and raise funds for charity
demonstrate our commitment to our community.
We have been
working with
the city and
HUD to craft
a housing plan
that allows us
to help those
in need without
taking unnecessary risks.
I
t has been an especially busy autumn for HAA
members! Hurricane disrupted our businesses
and our lives greatly in September, and we have
been working with the city and HUD to craft a
housing plan that allows us to help those in
need without taking the unnecessary risks we took
after Katrina and Rita. We learned a lot of important
lessons from that program, and it appears that the
plan to house Ike evacuees will meet a lot of our
needs. See Page 9 for more details.
HAA hosted a pair of informative meetings featuring city and insurance officials and HUD representatives, and we will continue to be a clearinghouse of
information on the DHAP-Ike program. Check
www.haaonline.org regulary for updates.
We have also been a go-to resource for media
inquiries on housing and rental issues, and I would
like to thank Beth Van Winkle, David Jones, Theresa
Lamar, HAA staff members and all the others who
joined me in providing answers. Being available to the
media is becoming an increasingly important part of
representing our industry positively in the community.
FUNDRAISING SUCCESS
Speaking of our positive impact, thanks and congratulations go to the hundreds of golfers and volunteers who took advantage of a beautiful day and
made this year’s Pink Ladies event another wildly
successful fundraiser. HAA made another sizable
See PRESIDENT, Page 65
ABODE
NOVEMBER 2008
7
PATRON OF THE MONTH
These companies have
generously supported the
Houston Apartment
Association with their
patron membership.
Please give them careful
consideration, whenever
possible, in your business.
Houston Planned Energy Systems
Royal Plumbing Supply
HAA Member since 1978
BFI Waste Services of Texas/
Allied Waste
MAB Flooring Inc.
Presto Maintenance Supply
Coinmach
Texas Apartment Locators
WEB Intelligent Laundry Systems
LEGISLATIVE UPDATE
BETH VAN WINKLE, CAM, CAPS, CPM, HAA Legislative Committee Chair
with ANDY TEAS, CAE, Vice President of Public Affairs
AAA Plumbers
Whirlpool Corporation
Dixie Carpet Installations
Hurricane Housing
Lessons from the aftermath of Katrina are helping housing officials
Apartment Guide
shape a more effective program.
Security deposits
will be funded.
Background
checks will be
allowed. Payment
will be coordinated by local
public housing
authorities.
NOVEMBER’S PATRON
By
I
n a historic, groundbreaking election – certain
to elect the nation’s first African-American president or the first female vice president, with
frantic, 24-hour television coverage and millions of devoted bloggers – how would you like
to be a candidate for county probate court?
The recovery from Hurricane Katrina was certainly
hardest on those whose homes and businesses were
destroyed by the flood, but apartment owners and
others trying to provide assistance to evacuees faced
challenges as well.
Because the federal government was initially
unable to create a medium and long-term housing
program – even as the Astrodome and other public
buildings began to overflow with evacuees – the City
of Houston created its own program with the
Houston Apartment Association to place more than
100,000 evacuees in Houston-area apartments at government expense.
In the Katrina program, owners were unable to collect security deposits, and properties with units damaged beyond normal wear and tear had no recourse
beyond a pointless lawsuit against a destitute evacuee. Credit checks were prohibited. Criminal background checks were ultimately allowed but proved
mostly useless since Louisiana criminal records are
kept parish by parish and most of the records from
the affected areas were under water.
Utilities were connected under a City of Houston
master electricity (and, occasionally gas) account. The
City purchased new, relatively inexpensive furniture
and had it delivered to evacuee units along with groceries and basic supplies.
Take a seat at our
table to support
your business and
our industry
8
NOVEMBER 2008
ABODE
Rental payments to owners were a huge problem.
The city, not usually in the rent-paying business,
asked owners to submit invoices for payment.
Owners, not usually in the invoicing-for-rent business, submitted an astonishing variety of invoice
forms that city employees had difficulty deciphering.
Payments to owners were delayed for months. Some
large owners were eventually owed hundreds of thousands of dollars in back rent, and some were unable
to make mortgage payments.
However, as with most programs, the start-up problems were mostly – eventually – ironed out.
SAME SONG, DIFFERENT VERSE
After Hurricane Ike wiped out thousands of homes
and apartments in Galveston, Crystal Beach and
other areas near Galveston Bay, it quickly became
apparent that medium and long-term housing would
be needed in the aftermath of this storm as well. HAA
members quickly made it clear that, to maximize participation by housing providers, an Ike housing program would need to contain several elements:
1. The program would need to provide either individual security deposits or some sort of fund against
which owners could file claims for damages beyond
normal wear and tear;
2. Owners would have the right to conduct the
same credit and criminal background checks as on
any other prospective resident; and
3. Rental payments would need to be made by an
experienced, third-party provider like Corporate
Lodging Consultants, which eventually took over rental
See LEGISLATIVE, Page 72
The Houston Apartment Association Better Government Fund is the
political action committee of the Houston Apartment Association, a nonprofit trade association representing the Houston apartment industry.
The HAABGF participates in local and state political campaigns, helping
candidates who support the apartment industry and its supplier businesses. You can participate in the HAABGF on several levels:
• The Steering Committee sets the agenda for the HAABGF, making recommendations to the group on which candidates to endorse – $1,500.
• Trustees have an individual vote on HAABGF decisions – $500.
• Century Club Members can attend all regular HAABGF functions.
Though clubmembers cannot vote individually, they have a collective vote
through the Century Club Representative – $100.
For more information, contact Andy Teas or Aimee Bertrand
at govaffairs@haaonline.org
ABODE
NOVEMBER 2008
9
IT’S THE LAW
By
HOWARD BOOKSTAFF, Hoover Slovacek LLP , HAA General Counsel
Not Liable
A decision by the Texas Supreme Court means apartment managers
can’t be held liable for criminal activity on site.
Generally, a
person does not
have a duty to
protect others
from third-party
criminal acts.
O
n August 29, the Texas Supreme Court
handed down its decision in a case
involving a murder at a San Antonio
shopping mall. Although the case did
not involve crime at an apartment
community, the court’s concurring opinion (from four
of the nine justices) is particularly interesting to our
industry because it discusses the extent to which the
court should be concerned about requiring “conspicuous security” at every point of potential contact
between a patron and a criminal. The concurring
opinion addresses whether the law should impose on
an owner and manager an obligation to adapt extraordinary measures to prevent crimes from occurring.
The guard, who was only a few hundred feet away
from the theater when the shots were fired, drove to
where Luis lay wounded, secured the crime scene and
notified the police dispatcher of the incident.
Meanwhile, security personnel in a different part of
the mall saw someone run through a breezeway and
get into a green Jeep.
The security officers chased the Jeep onto a nearby
road but discontinued the chase when the Jeep’s
occupants fired shots at their vehicle. Luis was taken
to the hospital, where he died of his wounds. Police
classified the crime as a homicide and began an
investigation, but criminal charges were never filed.
FACTS OF THE CASE
Luis’ mother and Karol, acting for themselves and
for Luis’ children, filed suit against the property manager, alleging that the manager negligently failed to
provide adequate security. During the trial, the parties
developed competing theories to give context to the
otherwise seemingly random attack. While the plaintiffs portrayed the attack as a botched robbery, the
defendant put forth evidence to suggest that Luis was
killed in retaliation for providing the police with
information regarding a series of burglaries in which
he was involved.
At the close of the trial, the jury awarded the plaintiffs $5 million in damages. The court of appeals
affirmed the judgment, stating that the manager had
a duty to Luis as a matter of law and that the evidence was sufficient to support the jury’s finding that
the manager breached its duty in a way that approximately caused Luis’ death. The defendant appealed to
the court of appeals, arguing that Luis’ death was
unforeseeable and that any failure on the manager’s
part did not proximately cause Luis’ death.
THE LAWSUIT
In February 2002, an off-duty policeman began his
shift as a security guard at the Quarry Market, a 53acre mall in San Antonio. Shortly after midnight,
while driving past the front of the mall’s movie theater, the guard noticed two people he thought were
dressed in black hats and jackets standing by the pay
phone located just to the side of the theater entrance.
Among the patrons at the movie theater were Luis
and Karol. They had just finished watching a movie
and were heading toward their car. Shortly after exiting the building, Karol heard a gunshot. She turned
in the direction of the sound and saw a person
dressed in black and wearing a ski mask point a gun
toward her and Luis.
The assailant fired again, hitting Luis in the shoulder and causing him to fall to the ground. Luis got
back up, and the couple began running. Karol was
only able to run a short distance before she fell facefirst to the ground and crawled under a nearby car for
protection. Luis suffered three more gunshot wounds:
two in the back, and one in the back of the head.
Looking for a previous version of this column or another ABODE article?
Members can log on to www.haaonline.org and visit the ABODE pages for access
to a downloadable archive. Currently all 2008 issues are available.
ABODE
NOVEMBER 2008
11
IT’S THE LAW
THE SUPREME COURT’S ANALYSIS
When determining the issue
of foreseeability,
the court stated
that certain
types of crimes,
such as vandalism, theft and
neighborhood
disturbances
are not enough
to make a
shooting death
foreseeable.
12
NOVEMBER 2008
ABODE
The Supreme Court issued a majority opinion
agreed to by five justices and a concurring opinion
from the remaining four justices. The majority opinion reiterated the law that generally, a person does
not have a duty to protect others from third-party
criminal acts. However, one who controls the premises does have a duty to use ordinary care to protect
invitees from criminal acts of third parties if he or she
knows or has reason to know of an unreasonable and
foreseeable risk of harm to the invitee.
The majority opinion first looked at whether the
shooting was foreseeable. There were more than 200
reported crimes at the mall over the previous two
years. Most of the crimes were thefts, but there was
also a handful of burglaries, auto thefts and incidents
of vandalism. Ten of the crimes were classified as violent crimes, including murder, manslaughter, rape
and aggravated assault. When determining the issue
of foreseeability, the court stated that certain types of
crimes, such as vandalism, theft and neighborhood
disturbances are not enough to make a shooting
death foreseeable. Similarly, although repeated occurrences of theft, vandalism and simple assaults at the
mall signaled that future property crimes are possible,
they do not suggest the likelihood of murder.
After reviewing the proximity, publicity, recency,
frequency and similarity of the violent crimes at the
property, the court concluded that the previous crimes
were not sufficiently frequent and similar to conclude
that Luis’ murder was foreseeable and did not give rise
to a duty to protect Luis from the shooting.
THE CONCURRING OPINION
The most interesting part of the court’s analysis
was in the concurring opinion written by Chief
Justice Wallace Jefferson and joined by Justices
Nathan Hecht, Scott Brister and Phil Johnson.
Although the majority opinion sets precedent for
future cases and the concurring opinion does not, it
is interesting to see how four of the justices view the
issues that (with a shift of just one justice) could
become law in later decisions.
Chief Justice Jefferson agreed that the manager had
no duty to protect Luis; however, he would not conclude that the attack was unforeseeable, but said that
the risk of its occurrence was not unreasonable and
that the consequences of requiring owners to prevent
this type of crime would require a measure of deterrence that is neither feasible nor desirable. He indicated that the court must determine whether giving a
jury the option to require owners to insure against
brazen criminal attacks appropriately shifts law
enforcement to the private sector.
Chief Justice Jefferson stated that although the
duty exists only when the risk of criminal conduct is
so great that it is both unreasonable and foreseeable,
See LAW, Page 44
RESIDENT RELATIONS
From the
RESIDENT RELATIONS COMMITTEES
Carpet
Complaints
Residents who note less-than-perfect
carpet at move-in often prevail in disputes
over charges at move-out.
T
ake care to note the condition of the carpet in your units
at move-in and move-out. Many complaints arise from
charges for replacement of carpet that was worn or
stained when they moved in. Keeping track of these conditions can save you headaches down the line.
COMPLAINT A
A resident filed a complaint with HAA to dispute charges and
stated that at the time of move-in, she noted on her move-in condition form that the carpet had stains.
Management responded to HAA with an explanation that they
believed the resident was charged accordingly. Management
charged the resident for the full replacement of carpet, a nonrefundable pet fee and a final water and electric bill. Enclosed were
copies of the lease, deposit disposition, move-out notice, application and move-in condition form and pictures.
The committee decided in favor of the resident and said the carpet charge of $826.76 should be removed because the resident had
stated on her move-in condition form that the carpet had stains.
The committee also said the $100 pet fee should be removed
because management failed to provide a pet addendum. After the
adjustments, management is to refund the resident $564.18.
COMPLAINT B
A resident filed a complaint with HAA to dispute charges, stating
that she lived on the property four years and left the unit clean.
Management responded that after reviewing the resident’s file,
an incorrect electricity charge was found. Management revised the
deposit disposition and said the resident was charged according to
the terms of the lease. Enclosed were copies of the lease, deposit
disposition, carpet invoice, move-out condition form and pictures.
The committee decided in favor of the resident, stating that
management did not provide documentation for the life expectancy of the carpet. Since the resident lived on the property four
years, the committee decided that the carpet charge of $171
should be removed based on expected life of the carpet and a normal amount of wear and tear. After the revised charges management is to refund the resident $2.49.
Managers can call the HAA main line at 713-595-0300 and ask for
Resident Relations. Please identify yourself as a property manager so that
we may direct your call appropriately.
14
NOVEMBER 2008
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WORDS FROM NAA
By
MICHAEL TOMPKINS, CPM, CCIM, NAA Chairman of the Board
STATE UPDATE
From the
TEXAS APARTMENT ASSOCIATION
CAPS on Tap
Plan for Prevention
The new, condensed curriculum for the CAPS designation program is now complete
Avoid liability for sexual harassment claims by crafting and communicating a policy
and ready for instructor review.
for filing and handling complaints.
T
he NAA Education Institute has
completed the new Certified
Apartment Property Supervisor designation program. It is available for
affiliate staff to share with CAPS instructors to
allow them to familiarize themselves with the
new program before providing instruction.
The target audience for the new CAPS is
those who manage multiple apartment
communities or have completed their
Certified Apartment Manager, ARM or
RAM designations and have a minimum of
two years of experience in on-site management. The five modules included in the
program are Legal Responsibilities and
Risk Management, Financial Management,
Property Performance Management,
Property Evaluation and Due Diligence
and Effective Leadership.
16
NOVEMBER 2008
ABODE
INCOME & EXPENSES SURVEY
NOW AVAILABLE
NAA’s annual Survey of Income &
Expenses in Rental Communities, completed
by CEL & Associates Inc., is now available
online at www.naahq.org/08ies. It contains
detailed data summarized for six geographic
regions and for metropolitan areas with at
least 10 properties reported. An executive
summary of the survey appeared in the
August issue of Units magazine.
STUDENT HOUSING CONFERENCE
This year’s NAA Student Housing
Conference & Exposition attendees learned
earlier that one of the biggest and most
lucrative niche markets for rental communities is off-campus student housing. At the
2009 NAA Student Housing Conference &
Exposition, individuals who are considering, new to or currently involved in student
housing management can share best practices, network and learn from industry leaders February 2-4 at The Venetian Palazzo
Hotel and Resort in Las Vegas.
The conference will kick off with an
executive panel and keynote address about
the intricacies of catering to the college
demographic. Education sessions will focus
on marketing, legal and Fair Housing
issues; technology; turnover; recruiting;
operations; and behavioral control. Dr.
Richard Ferraro, assistant vice president of
student affairs at Virginia Tech will close
the conference with a case study discussion
on crisis management.
For information and to register, visit
www.naahq.org/events/shc.
A
recent court decision offers excellent guidance for employers wishing to avoid liability for sexual
harassment claims. In Adams v.
O’Reilly Auto, Inc., the federal Eighth Circuit
Court affirmed the dismissal of a claim against
O’Reilly that it had not done enough to protect the employee from sexual harassment.
The court evaluated O’Reilly’s anti-harassment policy and the implementation of that
policy and found both sufficient to dismiss
the harassment claims against the auto parts
store. The facts of this case illustrate what
employers should do to avoid liability for
sexual harassment.
THE CASE
Rebecca Adams, an employee at O’Reilly
Automotive, had suffered sexual harassment
at the hands of her supervisor for more than
two and a half years. Despite the company’s
zero-tolerance anti-harassment policy, Adams
did not immediately report this abuse to company officials. When Adams did finally report
the harassment, O’Reilly promptly investigated and fired the harasser within two days.
Adams then sued the company for the sexual
harassment she had experienced before the
harasser’s termination.
O’Reilly sought to dismiss the claims, arguing that the evidence established an affirmative defense to liability – that O’Reilly had
exercised reasonable care to prevent harassment in the workplace and to eliminate it
when it might occur and that Adams had
failed to reasonably take advantage of the
company’s safeguards and avoid preventable
harm. This defense, known as the EllerthFaragher defense, stems from the notion that
“[an] employer is not ‘automatically’ liable for
harassment by a supervisor.” In other words,
while it is a company’s responsibility to have
adequate anti-harassment protections, a complaining employee is not excused from failing
to pursue available internal company remedies on his or her own behalf.
O’Reilly had to show that it “exercised reasonable care to prevent and correct promptly
any sexually harassing behavior” and that its
policy “was reasonable and properly enforced.”
THE COURT’S FINDINGS
The court found O’Reilly's anti-harassment
policy to be “more than reasonable” based on
several factors:
• O’Reilly has a “zero tolerance” policy
requiring investigation and documentation of
every report of sexual harassment.
• The policy provided multiple channels
for employees to report suspected harassment, including complaining, at their own
election, to their supervisor, a sexual harassment hotline or the corporate human
resources department.
• Retaliation was prohibited against those
who made complaints.
until she found a corroborating witness and
because she feared retaliation. The court held
that harassment victims are only required to
make a complaint/report, not to investigate
and gather evidence before making a complaint. It further held that a fear of retaliation
is not generally a valid excuse for failing to
make a report of sexual harassment. As a
result, the Court of Appeals affirmed the dismissal of Adams’ claims against O’Reilly.
WHAT WE CAN LEARN
What are the lessons for employers? First,
have a written anti-harassment policy and
ensure that all employers, supervisors and
While it is a company’s responsibility to have adequate
anti-harassment protections, a complaining employee
is not excused from failing to pursue available internal
company remedies on his or her own behalf.
• The complaints were confidential.
• O’Reilly distributed its policy through
training videos, handbooks issued to all new
employees and posters displayed in each store.
Adams claimed O’Reilly’s policy was not
reasonably enforced in practice because the
company required a witness to corroborate
the alleged sexual harassment before it would
take action against an alleged harasser.
However, O’Reilly simply required “some evidence confirming that harassment occurred.”
The court noted that there was “nothing
objectionable in O’Reilly requiring some kind
of confirmation of sexual harassment before
taking action against alleged harassers.”
Although Adams claimed O’Reilly routinely
ignored its stated anti-harassment policy, the
company showed that had conducted investigations on several other employees’ claims in
the past.
O’Reilly also had to show that Adams
unreasonably failed to take advantage of its
anti-harassment policy. Adams’ failure to use
the anti-harassment policy for more than two
and a half years and O’Reilly’s immediate corrective action after she reported the harassment created a strong case that Adams’ delay
was unreasonable.
Adams argued that she delayed reporting
other personnel are made well aware of it by
aggressive and thorough dissemination
through handbooks and conspicuously displaying posters outlining the policy. Second,
provide confidential, usable avenues for
employees to report harassment, as well as
alternatives, such as an anonymous hotline
and reporting directly to the human
resources department.
Third, when complaints are made – or
when an employer otherwise becomes aware
of a situation – promptly and thoroughly
investigate the situation and maintain an
investigative record. As the court noted, an
“employer is not required to credit the statements on the she-said side absent circumstances indicating that it would be unreasonable not to do so.” Instead, an employer’s
duty is to make reasonably diligent efforts to
investigate and get to the truth of a matter.
If conducted in good faith and in a prompt
and thorough manner, these actions implementing an anti-harassment policy will usually
satisfy an employer’s legal duties and may protect the employer against frivolous claims.
James H. Kizziar Jr. is a partner in the San
Antonio office of Bracewell & Giuliani LLP and
serves as special counsel to TAA for labor and
employment issues.
ABODE
NOVEMBER 2008
17
EDUCATION UPDATE
By
EMILY HILTON, HAA Vice President of Professional Development
UPCOMING COURSES
From the
S
What’s New?
HAA and NAA are offering new and improved designation programs
November
for supervisors and maintenance technicians in 2009.
In an industry
that is notorious
for its dynamic
environment
and constant
change, it’s only
fitting that the
professional
development
programs that
support it stay
just a step ahead
and continue
to evolve.
I
’ve always enjoyed talking to leasing professionals about why they love this industry. One
reason that always tops the list is that no two
days are ever the same. In an industry that is
notorious for its dynamic environment and
constant change, it’s only fitting that the professional
development programs that support it stay just a step
ahead and continue to evolve.
The coming year holds many changes in store for
the education programs at HAA. We are very excited
to offer two brand-new programs from the National
Apartment Association. Beginning in January, “CAPS
2.0” launches with a much-anticipated splash.
Rewritten by subject-matter experts and professional
curriculum developers to eliminate redundancy and
offer a more realistic focus on the skill set of today’s
property supervisor, this five-module program
includes previously untouched material, including
performing due diligence, operational audits and
asset management, as well as a much-needed leadership component.
Because the program has been condensed from
eight modules to five, supervisors can begin the program in January and have it wrapped up before summer. Classes are held on Fridays to accommodate
busy travel schedules and are priced at $249 each.
Although candidates will still be required to pass a
comprehensive online exam, the application component is no longer a requirement for receiving the designation. This often arduous paperwork was a hindrance to many candidates; its elimination should
result in more CAPS designates than ever before. If
you’ve been on the fence about attaining your CAPS
designation, the time has finally come to sign up!
CAMT RETURNS
The Certified Apartment Maintenance Technician
program returns to HAA in May after a three-year hiatus due to a decision by the Education Advisory
Council to temporarily suspend the program because
of its obsolete and outdated material. HAA has always
been a strong proponent of continuing education and
professional development for its maintenance professionals, and we are so thrilled to offer this program
with confidence for the first time in many years.
18
NOVEMBER 2008
ABODE
chedule and fees are subject to change without prior notification.
Notice of cancellation is required two days in advance to receive a
refund, less a $10 administrative fee. Seats are guaranteed on a
first-come, first-served basis when payment and registration are received
in advance of the program. Unless otherwise indicated, courses are held
in either the Camden and Michael Stevens Interests Room or the Direct
Energy and Liberty Personnel & Executive Search Room at the Dinerstein
Reed Prokop Education Center, 4810 Westway Park Blvd. on the second
floor of the HAA Office Building. Seating is limited. You must pre-register.
The two non-technical courses, “Inside the
Apartment Business,” and “People, Projects and
Profits,” are taught entirely online, allowing learners
to take each course at their own convenience and at
their own pace. HAA will offer these courses at predetermined times within our state-of-the-art computer
learning center for those students who may not have
access to computers or high-speed Internet.
After learning the new content in each course, students will go through a set of scenarios in which they
evaluate the performance of maintenance technicians
in realistic situations, then rate them on a set of criteria related to the learning points in the course. These
scenarios not only allow learners to reflect on what
they have learned so that they are more likely to
apply what they have learned on the job, but they
also give learners concrete examples of what not to
do, so they know what to avoid as well.
APPLE Leadership Session IV:
Investment Managing –
A Different Approach to Property
Management With Rich George
Tuesday, November 4
8:30 a.m. to noon
$249 per property; $40 each for
non-enrolled property personnel
Sponsored by For Rent Media
Solutions
Gain a unique understanding of the
art of managing multifamily assets
with the owner’s interests in mind
and look beyond obvious success
indicators such as occupancy, traffic,
conversion ratios and expense
control. This program will help
managers focus on the true goal of
increasing value by improving NOI.
VIRTUAL PRACTICE SESSIONS
The five technical courses, including electrical,
plumbing, HVAC, appliance repair and interior and
exterior maintenance, take place in the classroom
with an instructor presenting core concepts and procedures, as well as leading course participants through
reinforcing learning activities. These activities will
range from discussions to solving “what if” scenarios
to hands-on activities. Instructors will have written
guides to help them deliver the class; participants will
have guides to help them absorb the material.
After each course, learners will go online to engage
in virtual practice sessions for that course. These scenarios let learners play the role of a maintenance
technician in a realistic and interactive environment.
They will make decisions to prioritize, diagnose and
repair problems, just as they would on the job.
However, in these scenarios, learners will be able to
practice new things in a safe atmosphere, where they
won’t hurt themselves or residents or cause property
damage (or burn down the new HAA building!).
Courses will be offered in the evenings, providing
the opportunity for continuing education despite a
busy workload during the day on-site. The complete
program fee is $695, but students can opt to pay by
Blue Star Program
7:30 a.m. to 4 p.m.
Tracey Gee Community Center,
3955 West Center Road
$35 if paid by November 5;
$45 at the door
Sponsored by Gexa Energy
Created for rental properties of all
sizes, the Blue Star Program’s goal is
to help law enforcement officials and
the apartment industry work
together to effectively reduce
criminal activity in rental properties.
SOAPS Luncheon Honoring
Maintenance and Managers
Friday, November 7
11:30 a.m. to 1:30 p.m.
Sponsored by Ameristar Screen
& Glass, HD Supply and Liberty
Personnel/Executive Search
Details will be mailed to SOAPS
members. For more information,
call Kirsten at 713-595-0314.
Extreme CAM/CAS
November 10-14
8 a.m. to 5 p.m. (Registration at
7:30 a.m. on November 10 only)
Program fee: $999
Sponsored by Gexa Energy,
Service Concepts, AAA Plumbers
and FSI Construction
Accelerate the education process
and earn your designation on a
schedule that works best for you.
Classes will be held Monday through
Friday and taught by Rich George.
Note: Recommended for
experienced managers only.
APPLE Core Session VII:
Leadership is NOT Being Macho:
Most courses and events take place at
our offices and education center, located
at 4810 Westway Park Blvd. (off Clay Road
just east of the toll road).
Clay Road
Hwy.
290
m
Sa
ton
us
o
H
A registration form for all courses and seminars listed here is on Page 25.
For more information, contact the Education & Meetings Department at
713-595-0319 or 713-595-0314 or register online at www.haaonline.org
(online registrations discounted).
Notice to Attendees: All pre-registered no-shows will be billed. For
admittance into HAA/HAF events, payments will be required at the door
if not received prior to the event. Start times listed below include a 30minute registration period. Notice of cancellation is required two days
prior to the event for a refund, less a $10 administrative fee.
Leaders that Deliver Results
en Español With Jimmy Cabrera
Tuesday, November 11
8:30 a.m. to noon
Sponsored by BG Personnel
In the second APPLE session to be
conducted entirely in Spanish,
participants will learn that leadership
is about humility, character, values
and the desire to make a difference.
$85 at the door
Sponsored by Houston Pest and
Golden Greek Carpets
See Page 43 for details.
APPLE Maintenance Session IV:
Basic Appliances
With Mark Cukro
8:30 a.m. to noon
Sponsored by BG Personnel
Gain a basic understanding of
refrigerator, range, oven, dishwasher
and microwave repairs, as well as
how to read wiring diagrams, test
components, replace elements, test
motors, and quickly diagnose the
most common problems found in
the field.
Leasing 101
8:30 a.m. to 3 p.m.
$75 at the door
Sponsored by Munisteri Sprott
Rigby Newsom & Robbins PC
Learn more about the industry as a
career. Topics covered include
greeting and qualifying the
customer, presenting the lease, an
overview of Fair Housing and more.
Fair Housing Seminar
8:30 a.m. to noon.
R
Toll
oad
I-10
I-45
N
★
Gessner
Note: map not to scale
HAA EDUCATION DEPARTMENT
IROC Breakfast
Friday, November 21
7:30 a.m. to 10 a.m.
Free/members; $25 non-members
Sponsored by Camp Construction
Services
December
SOAPS Holiday Luncheon
Thursday, December 4
11:30 a.m. to 1:30 p.m.
Sponsored by Apartment Guide,
Direct Energy and Houston Pest
Details will be mailed to SOAPS
members. For more information,
call Kirsten at 713-595-0314.
To see a more detailed map and
search for directions to the HAA
Offices and HAF Dinerstein Reed
Prokop Education Center, visit
Google Maps and enter:
4810 Westway Park Blvd. 77041
See WHAT’S NEW, Page 49
ABODE
NOVEMBER 2008
19
CALENDAR OF EVENTS
NOVEMBER
S M T W
CALENDAR OF EVENTS
T
2 3 4 5 6
9 10 11 12 13
16 17 18 19 20
23 24 25 26 27
30
F
7
14
21
28
November 2008
Events
Education
1
4
Wild West Chili Fest – Saturday,
November 1, noon to 6 p.m. at
the Houston Farm & Ranch Club,
One Abercrombie (off Hwy. 6
about 2 miles north of I-10).
Saddle up and bring the family
to enjoy HAA’s 18th annual chili
cook-off.
APPLE Leadership Session IV:
Investment Managing – A
Different Approach to Property
Management with Rich George
– Tuesday, November 4, 8:30 a.m.
to noon. Sponsored by For Rent
Media Solutions.
6
IROC Breakfast – Friday,
November 21, 7:30 a.m. to
10 a.m. Sponsored by Camp
Construction Services.
Election Day – Tuesday,
November 4. HAABGF endorsements are available online at
www.haaonline.org.
Blue Star Program – Thursday,
November 6, 7:30 a.m. to 4 p.m.
at the Tracey Gee Community
Center, 3955 West Center Road.
See Page 25 for details. Sponsored
by Gexa Energy.
20
10-14
Annual Business Meeting –
Thursday, November 20, 6 p.m. to
8:30 p.m. at the Hilton Post Oak
Hotel, 2001 Post Oak Blvd.
Featured speaker: Debra Duncan.
See Page 6 for details. Sponsored
by Liberty Personnel/Executive
Search and Resident Data.
Extreme CAM/CAS – November
10-14, 8 a.m. to 5 p.m. (registration at 7:30 a.m. on November 10
only). Sponsored by Gexa Energy,
Service Concepts, AAA Plumbers
and FSI Construction.
4
27, 28
Offices Closed – Thursday,
November 27 and Friday,
November 28. The HAA Offices
will be closed in observance of the
Thanksgiving holiday.
ABODE
F
5
12
19
26
S
6
13
20
27
December 2008
Events
20
5
5
8
24, 25, 31
12
Fair Housing Seminar – Thursday,
November 20, 8:30 a.m. to noon.
See Page 43 for more information.
Sponsored by Houston Pest and
Golden Greek Carpets.
Program & Budget Committee –
Wednesday, November 5 at
8:30 a.m.
Share Your Holidays Food Drive
– Friday, December 5 at the
Channel 13 studios. Contact
Susan at 713-595-0313 or
shinkley@haaonline.org or see
Page 76 for details.
Fall Golf Tournament – Monday,
December 8, 10 a.m. check-in
at the BraeBurn Country Club,
8101 Bissonnet. Contact Aimee for
details at aarrington@haaonline.org.
Offices Closed – Wednesday,
December 24, Thursday,
December 25 and Wednesday,
December 31. The HAA Offices
will be closed in observance of
the Christmas and New Year’s
Eve holidays.
CAM Exam – Friday, December
12. CAM students should contact
the Education Department at
713-595-0314 for details.
Expo Committee Phone-a-thon –
Wednesday, November 5 at 9 a.m.
21
25
Leasing 101 – Tuesday, November
25, 8:30 a.m. to 3 p.m. Sponsored
by Munisteri Sprott Rigby Newsom
& Robbins PC.
11
APPLE Core Session IV:
Leadership is Not Being Macho
with Jimmy Cabrera – Tuesday,
November 11, 8:30 a.m. to noon.
Sponsored by BG Personnel.
18
Unless otherwise noted, all events meet at our Dinerstein Reed Prokop Education Center, 4810
Westway Park Blvd., second floor, in either the Direct Energy and Liberty Personnel & Executive
Search Room or the Camden and Michael Stevens Interests Room.
NOVEMBER 2008
T
4
11
18
25
Meetings
APPLE Maintenance Session IV:
Basic Appliances with Mark
Cukro – Tuesday, November 18,
8:30 a.m. to noon. Sponsored by
BG Personnel.
20
DECEMBER
S M T W
1 2 3
7 8 9 10
14 15 16 17
21 22 23 24
28 29 30 31
S
1
8
15
22
29
Education
6
Product Service Council –
Thursday, November 6, 9 a.m.
Meetings located at the HAA Offices, 4810 Westway Park Blvd., first floor, will be held in the Redi Carpet and Winograd Families/
Judwin Properties Conference Room.
TAA Phone-a-Thon – Thursday,
November 6, 10 a.m.
Better Government Fund
Luncheon – Thursday, November
6 at noon. Contact Aimee at
aarrington@haaonline.org for
details and to RSVP.
12, 26
Resident Relations Committee –
Wednesdays, November 12 and
26 at 3 p.m.
12
Ambassador Club – Wednesday,
November 12, 4 p.m. to 6 p.m. at
Amazon Grill, 9600 Westheimer
(at Gessner). For details, contact
Lisa at 713-595-0322 or lbutler@
haaonline.org.
20
Legislative Committee –
Thursday, November 20,
3:30 p.m. at the Hilton Post Oak
Hotel, 2001 Post Oak Blvd.
We’re here for you!
Keep the Houston Apartment
Foundation Dinerstein Reed
Prokop Education Center in mind
when your company is in need of
a facility for your next meeting or
employee training.
The center is available for rental to
members and is the perfect venue
for budget meetings, planning sessions and more.
Fees range from $250 to $500
(AV fees additional). For more
information, contact Lana Shiller
at 713-595-0306, e-mail
lshiller@haaonline.org or visit us
online at www.haaonline.org.
Board of Directors – Thursday,
November 20, 4:30 p.m. at the
Hilton Post Oak Hotel, 2001 Post
Oak Blvd. Sponsored by For Rent
Media Solutions.
ABODE
NOVEMBER 2008
21
2009 EDUCATION KICK-OFF: LEASING BOOT CAMP
Brand new, baby!
Program Goals
• To give learners the skills and knowledge they'll
need to become successful property supervisors,
as well as to earn their CAPS certification.
• To provide a comprehensive review of the skills
identified in the CAPS Skills Standards.
• To improve overall management and leadership
skills that will positively impact financial performance and help reduce turnover.
• To professionalize the CAPS credential and
make it a mark of professional distinction and
accomplishment.
Legal Responsibilities and Risk Management
The Legal Responsibilities and Risk Management
course is a comprehensive survey of employment,
rental and contract law affecting the multifamily
housing industry, as well as a review of key environmental and safety regulations. This course also
includes a brief section to help students establish
and execute an effective risk management program for their apartment communities.
Financial Management
The Financial Management course helps students
become fluent in the financial concepts, terminology, formulas and ratios commonly used in the
multifamily housing industry. The emphasis is on
showing students how to maximize income and
manage expenses for their properties.
E
V
I
S
N
E
T
N
I
Additional Requirements:
• Students will be required to pass an online
comprehensive exam at the conclusion of the
program in late spring.
• New for 2009: A candidate application is no longer
a required component for earning the designation.
Program Fee: $1,245 for the complete program.
Attend individual modules for $249 each.
Property Evaluation and Due Diligence
The Property Evaluation and Due Diligence course
covers the various processes – property inspections, financial and operational audits and regional
and neighborhood analyses – property supervisors
will complete to help an owner or company
acquire, sell or renovate a property.
Reach for something
shiny and new in 2009.
Revamped and revised! Classes begin in January!
2009 HAA Education Kick-Off: Leasing Boot Camp
Thursday, January 22
8:30 a.m. – Registration and breakfast; 9 a.m. to 4 p.m. – Program including lunch
HAF Dinerstein Reed Prokop Education Center, 4810 Westway Park Blvd., off Clay Road and the Beltway
$99 if payment received by January 19; $129 if after January 19
For more information and to register, contact the Education Department at 713-595-0300,
e-mail educ@haaonline.org or visit www.haaonline.org.
Property Performance Management
The Property Performance Management course
teaches students how to ensure that their properties are performing at or above the expectations
set in the management agreement or business
plan. It introduces learners to the key operational
and service measures used in the industry and
shows them how to write a clear and compelling
owner’s report.
For more information, contact the Education & Meetings Department at
713-595-0314, e-mail educ@haaonline.org or go online to www.haaonline.org.
Effective Leadership
The Effective Leadership course shows students
how to go beyond day-to-day management and
enter the world of team leadership. Topics covered
include: leadership vs. management, the emotionally intelligent leader, employee engagement, feedback and coaching and team building.
ABODE
NOVEMBER 2008
23
✯
Help fight crime in the community
and earn a Blue Star
Get certified with the Houston Police Department’s
Blue Star program and show your community that
you are committed to fighting crime.
Extreme CAM
Monday through Friday
November 10-14
8 a.m. to 5 p.m.
Dinerstein Reed Prokop Education Center
already
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2nd Floor of the new HAA/HAF Office Building,
4810 Westway Park Blvd., east of Clay Road and Sam Houston Pkwy.
Cost: $999/person Pre-registration is required.
Payment in full must be provided at time of registration
to ensure timely delivery of textbook for review prior to course.
For more information, contact
the HAA Education & Meetings
Department at 713-595-0319
or 713-595-0314, e-mail
educ@haaonline.org or
visit www.haaonline.org.
Pay onli
ne
cre di t ca wi th a
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ave
10 pe rc
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Instructor Rich George is the
owner and managing director of
NOI Coach, a business coaching,
consulting and training firm
based in Michigan. A successful
business person and published
author with more than 20 years
of business experience, George brings a nononsense approach to strategic planning and a
passion for employee development and culture
building. His background includes the management of more than $2 billion of real estate
assets and more than $50 million of capital
reinvestment strategies. George has been
involved with successful acquisitions, dispositions, merger facilitation and repositions. Key to
his portfolio is the management of highly distressed properties, including those in court
receivership. George attended Wayne State
University and is a licensed real estate broker.
He has been recognized by his peers as a leader
in the industry serving in many different roles
within the National Apartment Association. He
was recognized as one of the first graduates of
the Leadership Lyceum, is a current faculty
member and has received the honor of the
CAPS designation as well as the ARM designation. George is an in-demand speaker at many
industry events. Known for his team building,
culture changing and change management
skills, George leads the market in promotion
and preservation.
Don’t miss this informative program with speakers
from HPD Vice, Narcotics, Gangs and Graffitti
departments and HAA General Counsel Howard
Bookstaff. Topics to be covered include:
• Understanding Crime Prevention
• CPTED Concepts
• The Application Process
• Community Rules and Leases
• Apartment Communities – Not Complexes
• Active Property Management
• Combating Crime Problems
• Liability Issues
• Dealing with Non-Compliance
REGISTRATION
Blue Star Program
7:30 a.m. to 4 p.m.
Tracey Gee Community Center,
3955 West Center Road
$45 at the door
For more information and to register,
contact the Education Department at
713-595-0314, e-mail educ@haaonline.org
or look online at www.haaonline.org.
Register online at
www.HAAonline.org
to receive a discount!
Enclosed is $ ___________ to register for the following event(s). Please make checks payable to the Houston Apartment Foundation. For courses and
events designated by an asterisk (*), please make checks payable to the Houston Apartment Association.
o MasterCard o Visa o American Express o Discover Card Number _________________________________________________________
Name as it appears on card _______________________________________________________________
Expiration Date __________/__________
Signature _____________________________________________________________________________________________________________________
o APPLE Leadership Session IV: Investment Managing, Tuesday, November 4. $249/property;
$40/non-enrolled property personnel.
o Blue Star Program, Thursday, November 6. $35 if paid by November 5; $45 at the door.
o Extreme CAM/CAS, November 10-14. Program fee: $999.
o APPLE Maintenance Session IV: Basic Appliances, Tuesday, November 18. $249/property;
$40/non-enrolled property personnel.
o Fair Housing Seminar, Thursday, November 20. $75 if paid by November 17; $85 at the door.
o IROC Breakfast, Friday, November 21. Free/members; $25 non-members.
o Leasing 101, Tuesday, November 25. $65 if paid by November 24; $75 at the door.
Name(s) ______________________________________________________________________________________________________________________
Company _____________________________________________________ Address _______________________________________________________
City _________________________ State______ Zip ______________ Phone_________________________ Fax_______________________________
Sponsored by AAA Plumbers, Gexa Energy,
FSI Construction and Service Concepts
24
NOVEMBER 2008
ABODE
Mail to the Education and Meetings Department, Houston Apartment Foundation: 4810 Westway Park Blvd., Houston, TX 77041; fax to HAF at 281-582-1508,
e-mail educ@haaonline.org or online at www.haaonline.org. Schedule and fees are subject to change without prior notification. Notice of cancellation is
required two days in advance to receive a refund less a $10 administrative fee per registration; payment will be considered nontransferable at this time.
Because of guarantees at hotels, restaurants and other venues, all pre-registered no-shows will be billed. For admittance into HAA/HAF events, payments will
be required at the door if not received prior to the event. The Houston Apartment Foundation does not discriminate on the basis of race, color, religion, sex
or national origin in any of its education programs. Register online with a credit card at www.haaonline.org and save.
ABODE
NOVEMBER 2008
25
INDUSTRY UPDATE
From the
NATIONAL APARTMENT ASSOCIATION
and the
NATIONAL MULTI HOUSING COUNCIL
ADA Amended
Congress addresses rulings on disability accommodations, acts on GSE reform
and encourages energy efficiency.
C
ongress has passed legislation
amending the Americans with
Disabilities Act that President
Bush is expected to sign. The
measure (S 3406), which passed the Senate
on September 11 and the House on
September 17, would reverse court decisions that have narrowed the ADA’s interpretation of disability. The House passed
comparable, but not identical, legislation
(HR 3095) in June.
Among other things, the measures specifically address a series of rulings by the
Supreme Court and lower courts that
denied ADA coverage to individuals who
used medication or medical equipment to
manage their disabilities. The bill represents
a compromise between the business community and disability advocates to properly
restore individual protections under the
ADA without imposing undue burdens on
employers. Earlier versions of the bill were
strongly opposed by the business community because they would have broadened
the definition of disability under the ADA
beyond what Congress intended when the
original statute was enacted.
The original ADA language defines a
physical or mental impairment as one that
substantially limits one or more major life
activity. Earlier versions of the bill were
strongly opposed by the business community because they would have revised that
definition to include anyone who has a
physical or mental impairment, has a
record of such impairment or is regarded as
having such an impairment. Without qualifying language, this would have extended
coverage to anyone with an impairment
such as poor eyesight, or the flu. The compromise retained the “substantially limited”
language and clarifies that a determination
of disability is to be made “without regard
to mitigating measures” such as medication
or prosthetics.
MULTIFAMILY CAPITAL MARKETS
NMHC is following developments in the
multifamily capital markets. While it is too
26
NOVEMBER 2008
ABODE
early to assess the impact on the commercial property sector of the Lehman Brothers
failure and the sale of Merrill Lynch,
NMHC is actively working with the Federal
Housing Finance Agency following its
September 7 takeover of Fannie Mae and
Freddie Mac. This dramatic action by the
government to stabilize the two mortgage
companies has raised many questions
regarding the status of their multifamily
lending programs.
industry. Given the rescue plan’s heavy
emphasis on securitization, we are stressing
the importance of allowing the GSEs to hold
multifamily mortgages theypurchase in their
retained portfolios. We have explained to
the regulators that a “one size fits all”
approach to GSE programs could have seriously negative consequences for multifamily
lending and financing.
We have noted that maintaining the
agencies’ ability to do portfolio executions
The bill represents a compromise between the business
community and disability advocates to properly restore
individual protections under the ADA without imposing
undue burdens on employers.
As a result of our outreach to FHFA staff,
on September 12 the agency issued a statement saying that business will continue as
usual in the multifamily sector. It specifically
states that the conservatorship “does not
affect existing contracts, nor the authority of
the Enterprises to enter into new contracts,
nor their enforceability. As conservator, FHFA
expects each Enterprise to continue underwriting and financing sound multifamily
business. We also do not expect either company to liquidate its portfolio of Low-Income
Housing Tax Credits or mortgage-revenue
bonds.” (See www.nmhc.org/goto/4875.)
Under the conservatorship, each GSE
portfolio is allowed to increase to $850 billion by the end of 2009, after which their
holdings would shrink about 10 percent a
year until they reach $250 billion each. The
expansion of the firms’ retained portfolios
should benefit the apartment sector since
both companies retain the vast majority of
multifamily loans they finance.
The conservatorship expires at the end of
2009, leaving the next Congress and administration to determine their long-term future.
NMHC has already begun to actively work
with regulators and Congress to ensure that
the long-term plans for the GSEs do not negatively affect their ability to serve as the key
source of mortgage capital for the apartment
will not adversely affect their soundness
since multifamily loans represent a small
portion (less than 12 percent) of the GSEs’
total on-balance sheet holdings and their
delinquency rates are a fraction of the
delinquencies in the single-family market.
The 60-day-plus delinquency rate on multifamily loans held or insured by the agencies is 0.11 percent for Fannie Mae and 0.03
percent for Freddie Mac.
We will continue to work with regulators
and lawmakers as the situation evolves and
will continue to make the case that one key
reason the apartment sector is out-performing nearly every other real estate sector is
because of the capital provided by Fannie
Mae and Freddie Mac in the midst of the
current fiscal crisis.
ENERGY EFFICIENCY TAX INCENTIVES
Energy policy took center stage in
Congress as it returned to work on September
8. On September 16, the House passed an
energy bill (HR 6899) with several housingrelated provisions. Among other things, the
measure would establish HUD energy efficiency standards for single- and multifamily
housing, give Fannie Mae and Freddie Mac
additional credit toward their affordable
housing goals for financing housing that
meets energy efficiency standards, provide
incentives for energy efficiency in FHA multifamily financing and add green development
requirements to the HOPE VI program.
While NMHC and NAA support the goal of
increasing the energy efficiency performance
of the nation’s real estate, we believe that it
should be accomplished through incentives
to offset costs and not mandates. We
opposed provisions in the bill that would
eviscerate the current building code system,
impose specific performance metrics for existing buildings without regard to building age
or cost of the upgrade and create an uneven
playing field for green certification systems
which could put developers who rely on
code-based protocols at an administrative disadvantage if they compete for HUD funding.
The measure also included an $18 billion
energy tax title that would extend several tax
incentives supported by NAA and NMHC,
including a temporary $1.80-per-square-foot
tax deduction for energy-efficient commercial buildings and a 30 percent investment
tax credit for solar energy and qualified fuel
cell property that will expire December 31 in
the absence of congressional action. (See
www.nmhc.org/Content/ServeContent.cfm?
ContentItemID=4384&IssueID=80 for details.)
JOINT LEGISLATIVE PROGRAM TO END
NMHC and NAA announced in September
that as of March 1, 2009, the organizations
will end their joint legislative program. For
17 years, NMHC has represented both organizations before Congress, the federal agencies
and the judicial branch. The two organizations plan continued collaboration.
“As America prepares to inaugurate a new
president and welcome a new Congress next
year, the apartment industry faces a number
of critically important issues, including taxes,
high-performance building mandates, accessibility, immigration and union formation,”
said Ric Campo, CEO of Camden Property
Trust and NMHC Chairman. “NMHC has a
long history of providing strategic leadership
to the apartment industry and a proven track
record of advancing the industry’s interests in
Congress, before the federal regulatory agencies and on key issues at the state level.
“We are in a unique position to provide
public policy leadership for the apartment sector thanks to our long-term relationships with
key policymakers and our team of widely
respected expert staff members. We are dedicated to enhancing that effort even further.”
ABODE
NOVEMBER 2008
27
MEDIA ROUNDUP
By
JENIFER PANERAL, CPM, Media Relations Committee Chair
with AIMEE BERTRAND, HAA Public Affairs Specialist
Front and Center
HAA leaders stepped up to provide public faces for the industry
as news media covered the aftermath of Hurricane Ike.
Nearly every
local television
station, news
radio station and
newspaper has
been in contact
with HAA for
stories on
relocations
of displaced
residents, legal
responsibilities
of owners and
other hot topics.
28
NOVEMBER 2008
ABODE
O
ver the past few weeks, HAA has been
busily responding to media inquiries
in the wake of Hurricane Ike. We
wanted to share some of our recent
exposure with you and thank the HAA
leaders who faced media cameras on your behalf!
Nearly every local television station, news radio station and newspaper has been in contact with HAA for
stories on relocations of displaced residents, legal
responsibilities of owners and other hot topics.
• HAA President John Ridgway of Pinnacle, was
interviewed by no fewer than six media outlets (some
of which interviewed him multiple times), including
the Houston Chronicle, KTRH 740 AM, KHOU CBS 11,
KTRK ABC 13, KRIV FOX 26, the Del Walmsley show
on Biz Radio 1110 and Apartment Realty Advisors.
John covered topics ranging from our concerns and
hopes for a FEMA/HUD long-term housing program to
damages apartment communities sustained from the
hurricane. He has become a go-to resource for media in
addition to being an excellent spokesman on our behalf.
• HAA Vice President Beth Van Winkle of Milestone
Management gave a great interview to CW 39’s
Elizabeth Lee. Beth showed the reporter the hard work
that contractors have been doing to repair damage
from Hurricane Ike on one of Milestone’s properties as
an example of the clean-up work that is being done at
communities across our area. She also found a resident who had been relocated due to damage and was
willing to be interviewed by the television station.
The reporter and photographer were very pleased
with the interviews and aired two stories covering
storm-related issues during the same newscast.
• HAA Board Member Theresa Lamar of Liberty
Personnel/Executive Search braved a live interview
with KTRK ABC 13’s Ilona Carson and Erik Barajas
just days after Hurricane Ike. Theresa did a wonderful
job of letting the Houston community know that
apartment industry professionals were working hard
to assess damage and make repairs.
• In addition, HAA staff members and HAA’s public
relations consultant, Becky Myers of Myers Public
Relations, responded to immediate media needs. If you
are approached by the media and would like some
guidance, please consider contacting HAA by calling
713-595-0302 or e-mailing media@haaonline.org. HAA
staff members are happy to assist you.
For the latest post-Ike information, please visit
www.haaonline.org.
SAFE IN MY PLACE
The Houston Apartment Association’s Safe In My
Place Web site was enhanced to feature hurricane information at the top of the page. We received nearly 4,000
hits in September with visits spiking on September 11,
just two days before Hurricane Ike struck the Texas Gulf
Coast. Most of the traffic to the site came from other
Web sites, like the KPRC Channel 2 Hurricane
Resources page and the Chronicle’s SciGuy blog.
HAA staff and our PR consultant spent time before
the hurricane ensuring that the Web link was posted
in as many places as possible. Houston City Council
members and Houston’s congressional leaders were
also made aware of the site and asked to share it as a
resource for their constituents.
Some members have reported that they used the
page to download information for their employees
and residents. The site is updated regularly to feature
the latest safety resources for managers and renters in
Houston. In October, fire safety became the “hottest”
topic on Safe In My Place. Visit www.safeinmyplace.com
to request fire safety magnets for your property or contact Aimee at aarrington@haaonline.org or 713-595-0302.
HISPANIC HERITAGE AWARDS
HAA nominated Cesar Lima, Product Service
Council immediate past president, for the City of
Houston’s Hispanic Heritage Award. Though Cesar
was not chosen this year, his son Henry Lima
received the honor.
Sell Low,
Rent High
The slow-down in single-family home sales
due to the subprime lending crisis has given
the apartment market a big boost.
By
BRUCE McCLENNY, Apartment Data Services Inc.
h
ouston’s apartment market has shown
resilience and strength during 2008 as the local
job market cooled down. Houston’s job growth
during 2008 has been essentially halved from that of
2007. The 12-month net change in jobs for the HoustonSugar Land-Baytown metro area at the end of August
2007 was 106,500. By the end of August 2008, the
12-month net change in jobs for the metro area had
settled to 53,400.
Generally, a significant slowdown in job growth produces a drag on absorption with a corresponding flat to
negative impact on occupancy and rent levels; however,
absorption through the first nine months of 2008 was
even stronger than the same period of 2007. Year-to-date
absorption as of the end of September of 2008 was 9,596
units, while 2007’s absorption for the same timeframe
was 7,176.
Now that the anybody-can-qualify party has
passed, the number of existing homes sold
has settled to around 73,000 during the
12-month period ending in August.
Undoubtedly, the slowdown in single-family activity
caused by the subprime lending crisis has helped give
apartment absorption a big boost in 2008. According to
the August MLS press release from the Houston
Association of Realtors, “the greater Houston area suffered
the biggest year-to-year decline ever in August,” capping
12 consecutive months of decline in home sales. The statistics reveal that home sales have dropped by 20.1 percent on a year-over-year basis. In addition, construction
permits for new homes on a year-over-year basis have
plummeted by 29.5 percent as of the end of August.
$716
At the height of the subprime madness somewhere
around the end of 2006, when all it took was a heartbeat
to qualify for a teaser rate mortgage, HAR boasted of sales
activity for 2006 that exceeded 87,000 homes. According
to MetroStudy, new home sales for 2006 surpassed 48,000
homes. Now that the anybody-can-qualify party has
passed, the number of existing homes sold has settled to
around 73,000 during the 12-month period ending in
August. The number of new homes sold over the same
period was around 28,000.
These lower sales numbers reflect the higher qualification requirements and less generous mortgage terms now
in place. More importantly, the slowdown in the singlefamily activity has translated into stronger demand for
rental properties as demonstrated by 2008’s strong absorption performance.
•
$707
Houston Overall Occupancy and Rental Price
NOVEMBER 2008
ABODE
$678
$670
93% –
$659
•
$663
•
$662
•
$686
•
– $690
•
– $680
•
•
– $670
•
– $660
91% –
– $650
89.8%
89.0%
89% –
– $710
– $700
$695
$686
Rents
Occupancy
95% –
– $640
88.0%
87.8%
87.8%
87.9%
– $630
87.1%
87% –
87.1%
86.8%
86.9%
– $620
A FUNDAMENTAL SURPRISE
The graph at right illustrates how the overall market
has performed over the past 10 quarters. Rent levels have
steadily improved while occupancy has drifted lower. This
is quite a surprise! Normally when occupancy levels
– $610
85% –
– $600
– $590
83% –
Jun06
30
•
– $720
Sep06
Dec06
Mar07
Jun07
Sep07
Dec07
Mar08
Jun08
ABODE
Sep08
NOVEMBER 2008
31
Analysis by Classification
’07 & ’08 Construction
Supply
Occupancy
¢/sq ft
$/month
Rent
12-Month
Trend
3-Month
Trend
12 Months
28,680
49.5%
111.4
$1,093
–
–
9,123
Absorption (Units)
3 Months 2008 YTD
2,753
8,071
Class A (w/o ’07 & ’08)
77,386
93.3%
121.2
$1,132
4.2%
6.6%
78
234
780
Class B (w/o ’07 & ’08)
205,473
91.2%
84.8
$718
2.2%
2.4%
-592
106
517
Class C
206,526
86.0%
66.4
$558
1.8%
3.3%
-1,188
190
313
Class D
32,693
82.2%
44.6
$378
-0.3%
-0.6%
-283
-33
-85
Overall
550,758
86.9%
83.0
$716
4.3%
5.0%
7,138
3,250
9,596
remain persistently flat and less than 90 percent, rents respond in
a flat to negative manner.
Even though absorption has been substantial for the reasons
described above, a rise in occupancy has been thwarted due to
the heavy amount of new construction units delivered during
2007 and 2008. Fortunately, the amount of absorption has been
able to move rents by providing enough demand to satisfy the
lease-up goals of the new construction supply as well as cover the
move-out notices of stabilized product. In other words, absorption has provided enough leasing momentum to give properties
the confidence to raise rents despite a relatively low overall occupancy level.
WHAT ABOUT IKE?
Hurricane Ike blew through Houston on September 13 and
immediately began to influence occupancy and rent levels. What
is shown on the graph for September 2008 is only the beginning
of the Ike impact. It remains too early to tell what the overall market impact from Ike might be. To get a better idea, it may be useful to review what happened to the market after Tropical Storm
Allison dumped more than 35 inches of rain back in June 2001.
Allison flooded many apartments and homes. Houstonians displaced by the storm, as well as legions of insurance adjusters and
construction workers, sought available apartments to lease. This
flurry of leasing activity prompted properties to quickly eliminate
concessions. Prior to Allison, approximately 50 percent of the
To be sure, occupancy will improve in the months
following Ike. Unfortunately, at this time information
about the damage is still very sketchy. It is probably a
safe assumption that most all first floor-units in
Galveston were flooded.
market was offering some form of a concession or special. By August, only 27 percent of
properties were offering concessions. This
elimination of concessions spiked the overall
average rent by $26 per month.
Rents are quoted on an effective basis,
derived by deducting the prorated effect of
concessions from the street or market rent.
The September 2008 rent level of $716 marks
a $6 increase that occurred after the Ikeinduced leasing momentum gave the market
the resolve to begin eliminating concessions.
At the beginning of September, 54 percent of
all properties offered some form of a concession. By the end of September, the number of
properties offering concessions had eased to
48 percent of the supply.
To be sure, occupancy will improve in the
months following Ike. In 2001, the overall
occupancy level jumped by 1.2 percentage
points during the months following Allison.
In addition, more than 20,000 units were
flooded, representing about 4.5 percent of the
overall supply.
Unfortunately, at this time information
about damage from Ike is still very sketchy. It
is probably a safe assumption that most all
first-floor units in Galveston were flooded.
(We are tracking around 5,000 units in the
Galveston area.) In addition, all cities along
Galveston Bay had properties with various
degrees of damage. A best guess for the number of Ike-damaged units ranges from 10,000
to 12,000, which represents about 2.0 percent
of the supply.
OVERALL PERFORMANCE
ANALYZED BY CLASS
The table on Page 32 provides a snapshot
of conditions by class as of the end of
September. This table breaks out the performance of each class and shows how
each segment contributed to the overall
market’s performance.
32
NOVEMBER 2008
ABODE
The 12-month trend for overall rent posted
a very strong 4.3 percent rate of growth. This
stout performance was achieved despite getting a flat start over the last three months of
2007. The overall three-month trend is even
better at 5.0 percent. The three-month trend
is annualized, which assumes that this trend
will continue for the next nine months.
The overall absorption performance discussed above is the hero of this report. It has
been strong and unusual and has been the
force behind the impressive growth in rents.
However, as strong as absorption has been,
it has been no match to keep up with the
pace of new construction units delivered
into supply.
NEW CONSTRUCTION
The new construction units delivered in
2007 and 2008 have been filtered out of Class
A and Class B to create a separate classification. Since the beginning of 2007, 28,680
units have been introduced into supply.
Approximately 68 percent are Class A, and 32
percent are tax-credit and considered Class B.
In addition, 14,752 units were constructed in
2007, and 14,108 units have been constructed
so far in 2008.
These properties are in various stages of
lease-up, which accounts for the low occupancy level of 49.5 percent. The low occupancy is of little concern, since leasing has been
going very well as this category has claimed
most all the absorption. Normally the rent
levels of new construction properties are
higher than the stabilized Class A product.
However, because of the relatively large component of tax-credit units in this category,
rent per square foot for new construction is
lower than that of Class A. Rent trends for
this group cannot be accurately calculated
due to the volatility caused by the continually
increasing number of units being introduced.
ABODE
NOVEMBER 2008
33
CLASSES A & B WITHOUT
NEW CONSTRUCTION
7777 Blankenship Drive • Houston, Texas • 77055
Taking the new-construction units out of
Class A provides a stabilized analysis of this
product type. Twelve months ago, the occupancy level for this group was 93.2 percent,
and the average monthly rent was $1,091. By
September, occupancy had inched up to 93.3
percent, and rent had improved by 4.2 percent to register an average of $1,132. The
past three months have proved to be even
stronger, coming in a 6.6 percent annualized
growth rate.
Newly constructed tax-credit units create
new demands on a classification system.
These properties have features and amenities
of Class A and price levels of Class C. Because
of this mixed identity, these properties are
classified as Class B. Since 2007, around
9,200 units of new construction have been
added to the Class B category. With these
units filtered out, overall Class B occupancy
stands at 91.2 percent. This occupancy level
is slightly less than the 91.5 percent occupancy level 12 months ago. Even though
occupancy drifted lower, rents were still able
to move forward by 2.2 percent over the past
12 months.
CLASS C AND CLASS D
During 2007, Class C finally broke into
positive rent growth territory after losing
ground for several years to tax-credit properties, seniors-only properties and single-family
homes. Of course, losing residents to homeownership has become much less of a competitive issue during 2008, and the 12-month
rent trend of 1.8 percent lends credence to
this notion. It is noteworthy that Class C was
able to achieve a positive rent trend when
occupancy was falling from 86.7 percent last
October to 86.0 percent at the end of
September 2008. The 3.3 percent rent trend
over the past three months is a very interesting development in that Class C became
more aggressive toward raising rents when it
received a little positive absorption.
Class D turned in its usual lackluster performance with negative rent growth and
absorption.
LOOKING AHEAD
The outlook for Houston’s economy, as
well as the national and global economies, is
fraught with fear and uncertainty. Houston’s
economy has been cushioned from the
downturn in the national economy mainly
because of the prosperity of oil-related indus-
34
NOVEMBER 2008
ABODE
The outlook for Houston’s economy,
as well as the national and global
economies, is fraught with fear and
uncertainty. Houston’s economy had
been cushioned from the downturn in
the national economy mainly because
of the prosperity of oil-related industries.
&Gala2009
Installation
NewYear
Friday, January 16
Hilton Americas - Houston
1600 Lamar, Ballroom of the Americas
See next month’s magazine or
call 715-595-0300 for details
36
NOVEMBER 2008
ABODE
tries. Experts say that Houston’s economy is now around 50 percent
dependent on oil, whereas in the 1980s it was more than 80 percent
dependent. We are not as vulnerable as we were in the 1980s, but with
oil dropping into the $80-per-barrel range and the credit crisis slowing
the demand for oil in all economies, Houston’s economy will begin to
look more like the national economy.
The 12-month net change in jobs nationally at the end of August
was a loss of 279,000 jobs, which translates to a negative 0.2 percent
performance. Comparatively, Houston experienced a gain of 53,400
jobs, a 2.1 percent rate of growth. The Bureau of Labor Statistics has
released September’s national jobs report, and the news has worsened.
The nation has lost 519,000 jobs (12-month net change), equating to a
0.4 percent decline. Houston’s September jobs report is due out soon
and most likely will not show much change. How will Houston’s job
picture change in 2009?
Once again, looking back at 2001 and the following years might
provide a basis to assume how Houston’s job picture might respond to
a national downturn. The major events of 2001 are strangely similar to
those of 2008. Both years saw Houston experience a flooding event
(Tropical Storm Allison in 2001 and Hurricane Ike in 2008) and a
catastrophe with global economic consequences (the 9-11 terrorist
attacks in 2001 and the credit/banking crisis in 2008). In December
2002, the 12-month net change in jobs for the Houston-Sugar LandBaytown area was a negative 5,100 jobs, and by December 2003 it was
a negative 14,300 jobs. Let’s say that this exercise provides us with a
worst-case scenario for mildly negative job growth for 2009 and 2010.
A best-case scenario for Houston jobs must consider that oil at $80 a
barrel is a price high enough for most drilling companies to keep
drilling, that Hurricane Ike will produce reconstruction jobs and that
the Medical Center is in the middle of massive expansion plans. In
addition, this national downturn might produce local population
growth at the expense of other regions of the country as families and
individuals seek jobs and a lower cost of living. Let’s say that a bestcase scenario for job growth for 2009 and 2010 would be around
15,000 to 20,000 jobs each year. Hopefully, local economists will soon
give us a jobs forecast based more on scientific methods rather than
supposition as the one above.
WHAT WILL HOUSTON’S APARTMENT MARKET DO?
Traditionally, the fourth quarter experiences negative absorption.
Last year, the fourth quarter saw negative absorption of 2,458 units.
This year’s fourth quarter has a good chance of not following tradition
because the single-family market is still bogged down with subprime
issues complicated even more by the credit crisis. In addition, Ike-related leasing from displaced homeowners and reconstruction workers
should buoy absorption.
The favorable conditions of 2008 will
continue changing throughout 2009.
The homeowners displaced by Ike and
the workers rebuiding Ike’s damage will
begin to move out of apartments, and
job growth will start to lose momentum.
The market will need a non-traditional absorption performance to
keep occupancy from losing more ground with all the units under
construction poised to come into supply during the fourth quarter. Of
the approximately 16,000 units under construction, at least 5,000 will
be delivered during the fourth quarter. Assuming a flat absorption performance (remember that flat is good during the fourth quarter), the
overall occupancy will slide to 86.0 percent by year’s end. However, it
is very likely that Ike-related leasing could produce an absorption performance of 2,500 to 3,000 units. With this scenario, occupancy
would be around 86.6 percent by the end of the year.
If today’s rents take a cue from how rents behaved after Tropical
Storm Allison, expect rent levels to increase over the last three months
of 2008. The overall average rent level could increase by $10 to $20
per month. If so, Houston’s overall rent growth for 2008 would range
somewhere between 6.0 to 7.5 percent. This type of performance is
possible, and if achieved, would truly be superlative.
OUTLOOK FOR 2009
The favorable conditions of 2008 will continue changing throughout 2009. The homeowners displaced by Ike and the workers rebuilding Ike’s damage will begin to move out of apartments, and job
growth will start to lose momentum. Fortunately for our industry, the
subprime crisis will still be a factor that favors renting over buying a
home. Not so fortunate, in light of the slower economic times, is the
number of under-construction units that will be introduced into supply. Look for about 11,000 units to come online in 2009 from the
16,000 units presently under construction. The proposed construction
list shows more than 18,000 units, but the credit/banking crisis will
severely limit the funds available to finance construction of any of the
properties on the proposed list. Even though financing will be tough
to get, look for 5,000 to 6,000 units to start construction.
Occupancy by the end of 2009 should fall somewhere in the range
of 85.0 to 86.0 percent, driven by positive absorption of 5,000 to 6,000
units. Rent growth for 2009 could range anywhere from a negative 1.0
percent to a positive 1.0 percent. If the negative end of this range is
realized, the economic conditions of 2009 will be more severe than
anticipated. For budgeting purposes, flat rent growth for 2009 should
actually be considered a good performance. Holding on to the exceptional rent growth in 2008, especially the growth that occurred late in
the year, will be a challenge.
Bruce McClenny is president of Apartment Data Services
and has been active in the multifamily industry and HAA
since 1983. HAA endorses ADS’s Market TRAC and market
reports. For more details, call 281-759-2200 or see
www.apartmentdata.com.
ABODE
NOVEMBER 2008
37
Up and
Alexan Post Oak
Amalfi at Hermann Park
Coming
Verde Cypress Creek
Broadstone Memorial
Millennium Greenway
ADS’ second semiannual list of the year shows properties
under construction, now leasing and proposed.
List data provided by
APARTMENT DATA SERVICES. Photographs by MARK HIEBERT, Hiebert Photography
NOW LEASING as of October 2008
Alexan Westheimer
38
NOVEMBER 2008
ABODE
Name
City Vistas/Greystar
Carrington at Barker Cypress/Davis
Villas at Shadow Creek Ranch/Davis
Kingwood Senior Village**/Hettig
Tiburon/UDR
Verde Northpoint/Riverstone
Oak Park Trail/Judwin
Sawyer Lofts/Martin Fein
Alexan Yorktown/Greystar
Verde Grand Harbor/Greystar
Landmark II/Landmark
Broadstone Memorial/Alliance Comm
Idlewilde*/HFI
Mason Park/Today Realty Advisors
Stoneleigh on the Lake/Woodmark
Autumn Pines*/SPM
Alexan Somerall/Riverstone
Alexan Upper Kirby/Greystar
Mansions at Turkey Creek*/Alpha Barnes
Alexan Post Oak/Greystar
Lakes at Cypresswood/Michael Stevens
Lancaster*/Orion
Plantation Woodlands/Capstone
Amalfi at Hermann Park/Archstone
The Core/Morgan Group
Landmark at Cypress Falls/Landmark
Newport on the Lake/Greystar
* = Affordable Housing ** = Senior Housing
Units
404
330
264
193
320
384
308
326
306
300
120
400
250
312
242
250
368
230
252
394
324
252
312
420
326
212
234
Opened
Oct-07
Oct-07
Oct-07
Oct-07
Oct-07
Nov-07
Nov-07
Dec-07
Dec-07
Dec-07
Dec-07
Dec-07
Dec-07
Dec-07
Dec-07
Dec-07
Jan-08
Jan-08
Jan-08
Feb-08
Feb-08
Feb-08
Feb-08
Mar-08
Mar-08
Mar-08
Mar-08
Area
Montrose/Museum
Bear Creek/Copperfield
Hwy 288/South
Lake Houston/Kingwood
Inwood/Northwest
Tomball/Far Northwest
Katy/Far West
Heights
Katy/Far West
Woodlands/Far North
West Memorial/Briar Fst
FM 1960 W/Steeplechase
Katy/Far West
FM 1960 W/Champions
Eastex Frwy/Near NE
Inner Loop W/Greenway
FM 1960 E/IAH Airport
Galleria
FM 1960 W/Champions
Katy/Far West
Woodlands/Far North
Med Center/Bellaire
Heights
Katy/Far West
Eclipse
NOW LEASING as of October 2008
Name
Magnolia Estates*/Hettig
Lakeland Estates/Fairfield
Haven at South Shore Harbor/Flournoy
Ventura Lofts/Southhampton
Laurelwoode/UDR
Fountains of Conroe/LBK
Portico at West Eight/Richfield
Verde Woodson Park/Verde
Camden Whispering Oak/Camden
Tanglewoood at Voss/Greystar
Mosaic at Hermann Park
Alexan Sterling Ridge/Trammell Crow
Retreat at Cinco Ranch/Allied
Oak Creek*/Greystone
Millennium Greenway/DMC
Alexan Westheimer/Trammell Crow
Lofts at Briar Forest/Lynd
Stoneleigh Cypress Station/Woodmark
Falls at Copper Lakes/Southhampton
Abbey at Lake Wyndemere/Abbey Res
Villas at Kingwood/Davis
Gardens Challenger Park/Internacional
Greystar Beacon Lake/Greystar
Broadstone Walker Commons
Villas at Edgewater/Davis
2125 Yale/Allied
Metro Mid Town Flats
Equinox/Greystar
Fairmont at Museum District/Long Reach
Fountains at Almeda/Michael Stevens
Eclipse/Greystar
Verde Cypress Creek/Verde
Alta Crossing/Greystar
Cobblestone Park II/LBK
Landmark at City Park/Landmark
Amalfi at Tuscan Lakes/Martin Fein
Costa Rialto*/NRP
Republic Hollow Tree/Greystar
Greystar Cypress Village/Greystar
Total (61 properties)
Units
130
350
316
265
324
270
230
244
300
376
99
310
268
176
309
244
352
228
374
360
330
354
360
352
414
195
21
304
236
252
330
310
300
270
288
328
252
280
273
Opened
Mar-08
Mar-08
Mar-08
Apr-08
Apr-08
Apr-08
Apr-08
Apr-08
Apr-08
May-08
May-08
May-08
May-08
May-08
Jun-08
Jun-08
Jun-08
Jun-08
Jul-08
Jul-08
Jul-08
Jul-08
Jul-08
Jul-08
Jul-08
Aug-08
Aug-08
Aug-08
Sep-08
Sep-08
Sep-08
Sep-08
Sep-08
Sep-08
Sep-08
Sep-08
Sep-08
Sep-08
Sep-08
Area
Northshore/Woodforest
Fort Bend
Clear Lake
Wodlake/Westheimer
Woodlands/Far North
Conroe
Westchase
Westchase
Galleria
Med Center/Bellaire
Woodlands/Far North
Katy/Far West
Conroe
Montrose/Museum
FM 1960 W/Champions
Woodlands/Far North
Friendswood/Pearland
Clear Lake
Clear Lake
Clear Lake
Heights
Montrose/Museum
Med Center/Bellaire
Montrose/Museum
Med Center/Bellaire
Far East
Hwy 288/South
Hwy 288/South
Clear Lake
Eastex Frwy/Near NE
FM 1960 W/Champions
Fairmont Museum District
Camden Whispering Oaks
17,460
ABODE
NOVEMBER 2008
39
Park Tower
UNDER CONSTRUCTION as of October 2008
Name
Central:
Venue at Museum District/Grayco
Legacy at Memorial/Legacy
The Belle Meade at River Oaks/Grayco
Le Maison on Revere/ZOM
Gables Post Oak/Gables
Gables Memorial Hills/Gables
San Felipe Court/Morgan
Collection at Greenway/Morgan
Gables West Ave/Gables
Braeswood Place/Grayco
Meritage/Chancellor
Domain at Kirby/Simmons Vedder
Park Tower/Finger
Greystar Cypress Village
Venue Museum District
Domain at CityCentre
Southwest:
Fairmont on San Felipe/Long Reach
Alexan Silber/Trammell Crow
Broadstone Voss/Alliance Comm
Domain at CityCentre/Simmons Vedder
CityCentre Lofts/Chancellor
Wynhaven at Towne West/Trammell Crow
Alexan Grand Mission/Westwood Res
Hometown on Bellfort**/Integrated Dev
Greystar Woodbridge/Greystar
Landmark Sugarland II/Landmark
Units
Map#
Area
219
334
119
423
316
308
326
528
390
344
240
293
347
493W
493J
492U
492U
491R
492M
491V
492W
492U
532J
531R
532Q
493Q
Montrose/Museum
Montrose/Museum
Med Center/Bellaire
Med Center/Bellaire
Med Center/Bellaire
Inner Loop East
350
402
300
371
250
396
328
210
312
240
491N
491C
490V
489D
489D
527D
526G
528Y
567D
567S
Galleria
Galleria
Galleria
Alief
Fort Bend
Fort Bend
Fort Bend
Fort Bend
Northwest:
Lodge at Spring Shadows II/Metro Natl
Parkway Ranch*/Hettig
Kensington Club/LBK
San Cierra/Sueba
Wynhaven at Cypress Station/TCR
Carrington at Champion Forest/Davis
Greystar Champions/Greystar
Costa Ibiza*/NRP
Orchard Park at Willowbrook**/ Hettig
Costa Vizcaya*/NRP
Mansions Hastings Green*/Alpha Barnes
Mansions Hastings Green Senior**
Carrington Park at Huffmeister/Davis
Residences at Cinco Ranch/Claremont
Broadstone Cypress/Alliance Comm
Boardwalk Town Center II/Greystar
Plantation Woodlands II/Capstone
Lakes at Westview II/Bailey
216
112
254
362
372
284
312
216
195
252
230
252
232
298
312
105
120
222
450J
411R
410J
329U
332U
370F
331R
332N
369H
370N
369W
369W
367D
526E
366C
251G
251D
CONR
Spring Branch
Inwood/Northwest
Inwood/Northwest
FM 1960 W/Champions
FM 1960 W/Champions
FM 1960 W/Champions
FM 1960 W/Champions
FM 1960 W/Champions
Katy/Far West
Woodlands/Far North
Woodlands/Far North
Conroe
Northeast:
Harbor View/Chancellor
Alta Pine Forest/Wood Partners
Alexan Eagle Creek/Trammell Crow
Valley Ranch/Greystar
Commons of Grace*/NRP
Sheldon Ranch*/Hettig
240
260
408
306
144
40
337G
376T
376S
296X
455D
498A
Far East
Far East
Southeast:
Cypress Creek at Reed Road**
Alexan Shadow Creek Ranch/Riverstone
Windshire/HFI
Villas at Shaver*/Janar
Park Avenue at Boulder Creek/LBK
Gardens of Friendswood**/Hettig
Summerbrooke/Cornerbrook Dev
Regency Park*/HFI
Wyndham Park*/HFI
Costa Verde*/NRP
Residences at Lake Jackson/Parkcrest
132
392
250
240
390
114
376
252
250
188
180
612H
576G
576H
615C
656X
620W
577S
501N
CLUT
LKJK
Hwy 288/South
Hwy 288/South
Pasadena/Deer Park
Pasadena/Deer Park
Clear Lake
Clear Lake
Baytown
Clute
Lake Jackson
15,854
PROPOSED CONSTRUCTION as of October 2008
Name
Central:
Mid Town Site I & II/Camden
Camden City Centre II/Camden
4310 Dunlavy II/Long Reach
City Place/Farb
Camden Travis/Camden
W Alabama & Almeda/Allied Dev
Cambridge Tower/Moody
West Dallas & Waugh/Finger
Alexan West Dallas/Trammell Crow
Gables West Ave II/Gables
Gables Upper Kirby II & III/Gables
Equinox II/Simmons Vedder
Shriners Temple Site/Archstone
1400 Studemont/Verde
Units
Area
600
263
250
185
253
262
250
445
280
279
147
300
474
420
Montrose/Museum
Montrose/Museum
Montrose/Museum
Montrose/Museum
Montrose/Museum
Montrose/Museum
Montrose/Museum
Montrose/Museum
Montrose/Museum
Med Center/Bellaire
Med Center/Bellaire
Heights
Southwest:
Gables on Voss/Gables
Sage & Westheimer/Whiteco
Place Vendome Redevelopment/JLB
Boulevard Place/Hanover
Gables San Felipe & Bering/Gables
Eclipse II/Simmons Vedder
Sunrise at Briar Forest/Sunrise
Brazos Ranch II/Judwin
203
550
321
236
275
300
240
361
Galleria
Galleria
Galleria
Galleria
Galleria
Fort Bend
Northwest:
Metro Nexus Site/Trammell Crow
Pinemont & 290 I & II/Sueba
North Post Oak Site/Sueba
Vintage Oaks/Sueba
Lakes at CypresswoodII/Michael Stevens
Stoneleigh at Ella/Woodmark
Northchase Village II/Bohannon
Greystar Yorktown Crossing/Greystar
Legends at Cinco Ranch
Kingsland at Barker Cypress/Bohannon
La Centerra/Vista
Katy Fort Bend Road Site/Beucler
Broadstone Grand Pkwy/Alliance Comm
Grand Pkwy Site I & II/Sueba
Westbrooke/Cornerbrook Dev
Grand Pkwy Site/Davis
Barker Clodine & I-10/Davis
Katy Fort Bend Site/Martin Fein
Providence Grand Pkwy**
Barker Cypress & 290/Davis
Wedgewood Falls I/Allen Acq
Wedgewood Falls II & III/Allen Acq
Retreat at Country Club/Allied Dev
West Fork/Chancellor
320
600
300
350
300
400
176
312
260
600
300
260
342
600
252
350
220
356
250
300
120
480
210
320
Brookhollow
Brookhollow
Spring Branch
FM 1960 W/Champions
FM 1960 W/Champions
FM 1960 W/Champions
FM 1960 W/Champions
Katy/Far West
Katy/Far West
Katy/Far West
Katy/Far West
Katy/Far West
Katy/Far West
Katy/Far West
Katy/Far West
Katy/Far West
Katy/Far West
Katy/Far West
Conroe
Conroe
Conroe
Conroe
Northeast:
Lakes of Tour 18/Creekstone
Tour 18 Site/Allied Dev
Hwy 59 & Northpark Plaza Dr/Fairfield
Verde Woodson Park II/Verde
Lenox House/Claremont
Wynhaven Sonoma Ranch/Trammell Crow
264
262
349
250
280
276
Far East
Far East
Southeast:
Villas at Shadow Creek Ranch II/Davis
Providence Town Square**
Residences Pearland Town Center/Sueba
Village at Clearpoint Crossing
Anders Lane & Hwy 96/Phillips
Residences Lake Jackson II/Parkcres
300
250
188
288
390
60
Hwy 288/South
Pasadena/Deer Park
Clear Lake
Clear Lake
Lake Jackson
Costa Vizcaya
Gables West Ave
San Cierra
Carrington Park at Huffmeister
Wynhaven at Towne West
18,029
For more information about the list data, contact Bruce McClenny
via e-mail at bruce@apartmentdata.com.
40
NOVEMBER 2008
ABODE
ABODE
NOVEMBER 2008
41
PHOTO ALBUM
Photos from the
DEBATE WATCH PARTY
!
r
i
a
F
Let’s Play
Don’t miss the last Fair Housing training session for the year!
Fair Housing Seminar
BGF supporters braved the rain to watch the debate and raise more than $1,300 for the NAA PAC.
Jerry Winograd and Eileen Subinsky talk about their experiences
at the national party conventions, which also appeared in the
October issue of ABODE.
8:30 a.m. – Registration
9 a.m. to noon – Program
HAF Dinerstein Reed Prokop
Education Center
4810 Westway Park Blvd.
$65 if payment is received
by November 19;
$75 at the door
This program fulfills the
Fair Housing criteria for
NAA designations and
equates to 3.0 CECs.
Beth Rohani poses with the candidate stand-ins.
Barbara Brett remains undecided.
John Ridgway shows off a button that reads
“Bob Barr for President.”
Give yourself a hand at the January
Sponsorship
Auction
!
d
i
D
I
,
s
Ye
we some e ve nt !
a
is
th
d
re
so
n
o
I sp
42
NOVEMBER 2008
ABODE
For more information,
contact the Education &
Meetings Department at
713-595-0314, e-mail
educ@haaonline.org
or go online to
www.haaonline.org.
Sponsored by
Houston Pest and
Golden Greek Carpets
The November Fair Housing Seminar is intended to provide an overview of
state and federal Fair Housing law, as well as information on complying with
specific requirements such as accessibility for disabled residents and familial
status protection.
Participants will learn using a combination of lecture, class discussion, review
of case studies and a quiz to test comprehension of major topics. All attendees will receive a course manual with a copy of the presentation and
resource materials, including HUD advertising guidelines, the Keating memo
on occupancy standards and the HUD/Department of Justice joint statements on reasonable accommodations and modifications.
Featured speaker David Mintz has more than 23 years of governmental and public affairs experience. In 2006, he formed David
Mintz Consulting to provide legislative representation and association management services.
Prior to opening his consulting firm, Mintz has served as vice president of government affairs for the Texas Apartment Association and
continues in that capacity. For the past 16 years, he has led the
association’s governmental relations efforts and helped the industry
effectively deal with hundreds of diverse governmental and political
challenges. Previously, Mintz worked as a staff member in the Texas
House and Senate, as well as a number of political campaigns.
Mintz has extensive experience in all aspects of the legislative process and has lobbied
on a wide variety of topics, including real estate issues, landlord-tenant law and municipal
regulation. Throughout his career, he has had a consistently successful track record in
passing, amending and defeating legislation, as well as representing interests before various regulatory agencies.
Get out in front of the customers you need to
reach and shake their hands. HAA and HAF events
are available for sponsorship at each of the two
yearly auctions, in January and June. You determine
the value in an auction format with selected event
sponsors determined by drawing. Whether your
customers are property supervisors, managers,
maintenance technicians or upper-level executives,
there’s an HAA/HAF event that targets the people
you do business with. During sponsored events, a
commercial is read to attendees, and sponsor signs
are displayed. All events are promoted with
pre-event publicity.
Amanda at 713-595-0316 or
e-mail asherbondy@haaonline.org.
ABODE
NOVEMBER 2008
43
LAW, continued from Page 12
he believes that the courts focus solely on that basis is misplaced.
He believes that the violent crimes at the mall within two years
preceding Luis’ death would make it foreseeable that a robbery and
murder could occur.
However, focusing solely on foreseeability overlooks other factors
the court has held to be pertinent to the existence and scope of an
owner’s duty. The court has previously stated that it must also balance risk, likelihood of injury and the consequences of placing the
burden on the defendant. While the prior –similar incidents
inquiry includes some consideration of risk and likelihood of
injury, it does not consider the attendant burdens of requiring
owners to prevent all crimes that are similar to prior attacks, nor
does it account for crimes that may have been eminently foreseeable despite their never having occurred at a particular place before.
Chief Justice Jefferson cited a Massachusetts case which reasoned
that the possibility of criminal conduct occurring is present in
almost every aspect of daily life and that, in that sense, the possibility of a violent attack is always able to be foreseen. However, the
court also recognized that society should not place the burden of
all harm caused by random violent criminal conduct on the owner
of the place the harmful act occurred without proof that the owner
knew or had reason to know of a threat to the safety of persons
lawfully on the premises against which the owner could have taken
reasonable preventative steps.
Chief Justice Jefferson also cited a Texas case where the court reasoned that the balancing test should consider both the economic
concerns of businesses and the safety concerns of customers who
are harmed due to the negligence of one seeking those businesses.
The plaintiff in this case argued that had a conspicuous security
officer been posted at the time and place of the attack, the crime
might not have taken place. Chief Justice Jefferson stated that given
the number of similar crimes, while perhaps sufficient to make the
attack foreseeable, would not require in response snipers on the
roof or uniformed officers on every corner. The question is the
extent to which the court should require owners – even those that
have experienced crime in the past – to provide the same level of
security that airports enlist to prevent terrorism.
Chief Justice Jefferson further stated that life in a free society carries a degree of risk. The risk can be virtually eliminated by a pervasive military presence, but the burden – both in terms of the economic cost to owners and in the oppressive climate a police state
spawns – would be prohibitive.
The chief justice concluded that because the relatively few incidents of violent crime at the Quarry Market during the two-year
period before Luis’ death did not pose an unreasonable risk of harm,
and in light of the tremendous burden that would be required to
prevent such brazen attacks, he would hold that the manager owed
Luis no duty to prevent this crime. If an owner had a duty to protect people on its property from criminal conduct wherever crime
might occur, the duty would be universal. This is not the law.
HOW DOES THE RULING AFFECT US?
It is refreshing to hear the Texas Supreme Court consider not
only whether a crime was foreseeable but also the consequences of
placing the burden of increased security and liability on the property owner or manager. In other words, even if a crime is foreseeable
based upon previous incidents of crime, the owner or manager may
not necessarily be responsible for the criminal conduct if the court
See MORE LAW, Page 69
44
NOVEMBER 2008
ABODE
Due
Diligence
Doing your homework is an essential component
of your management plan.
By
STEVE STEADELE, author of Multifamily Millionaire
g
“
et in,” I said to my younger brother Kevin
(who was just 5 or 6 years old at the time)
after we pulled his red wagon to the top of a
long, steep road that ended in front of our
house. “Use the handle to steer. Jason and I will push
you down the hill until we can’t keep up. Just stay in
the middle of the road and don’t hit the sidewalk.”
It seemed like a good idea at the time, but I didn’t
think about how to stop. I didn’t check the wheels to
make sure they were secure. Nobody looked at the handle or the bolts that fastened the axle to the frame. I
didn’t think about cars, rocks or the trouble I’d be in
after he crashed, either. I didn’t have a plan. Instead,
like any other kid, I focused on the initial activity to
accomplish our goal: to have fun.
Unfortunately, more often than not, this is true for real
estate investors as well. Although we may define it differently, our goal is still to “have fun.” We’re all pursuing
financial independence, working to acquire greater wealth
for ourselves and our families. As investors, the plan is
not as simple as checking the handlebar and wheels on a
wagon. There are many moving pieces to consider.
EFFECTIVE DUE DILIGENCE
Jim Rohn said, “We can no more afford to spend
major time on minor things than we can to spend
minor time on major things.” Many real estate investors
enjoy the thrill of hunting down and negotiating their
next investment. I’m one of them. At least to me, that’s
the most exciting part of investing.
Good negotiations require thorough due diligence.
Most investors do very little due diligence. Many simply
verify the rent roll, do a physical inspection, make a few
adjustments to an operating report and call it good.
Then they close on the property and wonder why they
struggle with it for the first six months.
46
NOVEMBER 2008
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Due diligence is so much more than that. Investors
who understand it are the envy of those who don’t. If
you do effective due diligence before you buy, you’ll
make better investment decisions. Makes sense, right?
And, if you do effective due diligence before you sell,
you’ll sell at a higher price too. If that’s true, why do so
many investors struggle with due diligence today?
There are two main reasons. First, nobody showed
them what to look for. Nobody gave them a list of questions. Nobody explained why to ask questions. Due diligence is not all that difficult if you have a plan covering
“all” aspects of investing. (No single checklist covers
everything.) However, due diligence should cover these
nine specific categories:
1. Books and records
2. Financials
3. Physical inspection
4. Marketing
5. Management team
6. Operations and system management
7. Competition
8. Residents
9. Legal issues
The second reason many
investors struggle with due diligence is time. It can be difficult
to cover these issues when the
seller or the agent pushes you
to make a decision in seven to 14 days on smaller properties and 30 days on larger acquisitions. Let’s be honest –
that’s not a lot of time. Why do they do that?
It’s simple: Time kills transactions. Nobody wants to
wait for you to make your decision. That means they’ll
press you to make it sooner than you probably should.
Sellers and agents know that without a sense of urgency,
your depleted desire to own the property will show in the
price. They know that our excitement and enthusiasm for
an investment is at its highest level early in the game.
That emotion can spell disaster for investors, usually to
the tune of tens of thousands of dollars or more.
Can it be done in seven days? Sometimes, if you have
all your ducks in a row and you spend the time necessary
to get the answers you need. But more often than not,
investors make premature decisions that result in more
operational issues than they care to deal with when they
finally close and take over the property.
Investors who understand due diligence are the envy of those
who don’t. If you do effective due diligence before you buy,
you’ll make better investment decisions.
THE MANAGEMENT PLAN
Like a business plan, the management plan is your road
map to get you where you want to go. Due diligence is a
necessary component of your overall management plan.
Remember, you can’t spend minor time on major things.
Owning a real estate investment, especially rental property, is no minor thing.
Some investors rely on a management company to
build and carry out a management plan. They think that’s
what they’re paying the management company to do.
That’s just not the case. Although most can and will prepare what they believe to be an ideal budget, I haven’t
found a management company anywhere in the country
that cares as much about a property and its operations as
an individual owner.
Whether you hire a management company or on-site
manager to help you with the day-to-day operations of
the investment or you do it yourself, the management
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47
What’s Your Plan?
Due diligence is not all that difficult if you
have a plan. Due diligence should cover
these nine specific categories:
1. Books and records
2. Financials
3. Physical inspection
4. Marketing
5. Management team
6. Operations and system management
7. Competition
8. Residents
9. Legal issues
plan falls squarely on your shoulders. Isn’t that exciting? One more thing
for you to do! Owning property is just like any other business. Set expectations and follow up. If you manage the property yourself, you’ll find it
much easier to carry out the activities outlined in your plan to help you
accomplish your dreams and goals.
Here are just a few things to consider:
• Role, responsibilities and authority of the management company
• Personnel policy and staffing structure
• Marketing plans and procedures
• Leasing, rent collection and occupancy standards
• Lease termination and eviction process
• Operating budget and forecast
• Income analysis
• Physical appearance analysis
• Expense analysis
• Accounting and reporting procedures/expectations
• Management training programs
• Management compensation
The management plan could encompass much more, depending on how
detailed you want to get. But it doesn’t need to be overly difficult; it just
needs to clearly define the expectations and activities necessary to get you
where you want to go.
The nice thing about money is that it’s indifferent. It doesn’t care who
holds it. If you’re not where you want to be, if you don’t have what you
want or think you need to live the life you want to live at this very
moment, I have really good news. You’re not a tree. That means you’re not
stuck where you are. That is good news, isn’t it? You really can have it all.
There’s nothing magical about investing in
real estate. There’s no mysterious, closely held
secret that will make you millions more than
the investor sitting next to you. Successful
investors consistently apply basic real estate
fundamentals over and over again. They can
all be learned. If you have the desire, commitment and discipline to carry out the techniques investors have used for many years,
you’ll accomplish your goals faster than you
ever thought possible. That’s what we all
want. Anyone can do it, and you can too.
Most investors are looking for specific
strategies to help them maximize returns,
and the good news is that those strategies
exist. Taking the time to plan and strategize
can save you thousands and make you millions. You don’t want to end up racing
down a steep hill in a little red wagon – just
ask my little brother.
Steve Steadele, author of the book
Multifamily Millionaire, is a successful real
estate investor, broker and a featured speaker at
real estate investment associations across the
country. He specializes in the acquisition and
disposition of investment real estate throughout
the United States. For more information, visit
www.MultifamilyMillionaire.com.
WHAT’S NEW, continued from Page 18
module at a slight premium. This new curriculum has replaced the need for a second
CAMT designation, as it is no longer viewed
as a basic or entry-level certification, and
the CAMT II program has been dissolved as
of the end of this year.
EDUCATION GRANTS
The Houston Apartment Foundation is
committed to adapting and responding to
the educational needs of its members. These
new programs are but two examples of how
we intend to maintain that commitment in
2009. We are also committed to offering
these programs at rates that are affordable to
everyone, regardless of the size of your
training budget. Don’t forget that education
grants are also available for all designation
programs, including CAPS and CAMT.
Grants pay 50 percent of all program fees.
Applications are reviewed in early January
and are available for download on the education page of the HAA Web site at
www.haaonline.org.
Be sure to look for your copy of the 2009
HAA Education Catalog in your mailbox and
online at www.haaonline.org in January!
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49
Here we go
Again
Resident screening and rental housing after Ike
will not face the same challenges as the ones
posed by Katrina and Rita evacuees.
By
DEONA JAMES, Resident Data
a
fter Hurricane Ike ripped through the upper
Texas Gulf Coast and left more than 40,000
people homeless or in shelters, housing is a No.
1 priority for the Houston area. The multifamily industry is playing a large role in helping displaced citizens
get back on their feet.
Having lived through the Hurricane Katrina aftermath, many property owners and managers in Houston
are apprehensive about this post-hurricane rental season. However, they have two good reasons to be optimistic: little to no interruption in applicant screening
processes and the announcement of a comprehensive
rental housing program, Disaster Housing Assistance
Program-IKE coordinated by the Federal Emergency
Management Agency and the U.S. departments of
Agriculture and Housing and Urban Development.
BACKGROUND SCREENING PROCESSES
VIRTUALLY UNCHANGED
After Hurricane Katrina devastated Louisiana in 2005,
property owners and managers in the Houston area were
faced with the monumental task of screening a wave of
new applicants without the ability to perform comprehensive online background screening services that were
usually standard operating procedure. Verifying identity,
credit quality and criminal records became virtually
impossible because many of these new Houston residents lacked proper identification and no record validation could be performed.
Most Katrina victims hailed from Louisiana, a state
that already had background search challenges with
only a few parishes available online. Even before
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Katrina, Orleans Parish required a manual, street-level
courthouse search, and after Katrina, those searches
could not be performed because courthouses were closed
for weeks and months. As a result of the lack of services,
property owners and managers did as much due diligence as possible, but ultimately residents moved in
who may have been declined if the proper screening
services were available. These “blind” approvals placed
property owners and managers and other residents at
risk, financially and otherwise.
Screening struggles like this should not be seen in
Ike’s aftermath because:
• Most displaced residents are from the local area,
where screening information is readily available online
through a number of sources.
• Most displaced residents were prepared and took
their vital identification papers.
Most displaced residents are from the local area, where
screening information is readily available online through
a number of sources.
• Texas is an online search state with all
counties required to report criminal data to
the Texas Statewide Database (Texas
Department of Public Safety).
• Any courthouses where street-level
searches may be needed are operational and open for
business – Galveston County Courthouse offices opened
on September 30, and the court docket schedule resumed
by mid-October.
RENTAL HOUSING PROGRAM ANNOUNCED
BY HUD AND FEMA
In response to a request from Gov. Rick Perry, HUD and
FEMA developed the Disaster Housing Assistance
Program-IKE that will provide temporary rental payments
and case-management services to help thousands of families displaced by Hurricane Ike.
The DHAP-IKE program is designed to encourage families to move from their current shelter-in-place directly to
rental units approved through the program.
“Texans whose lives have been turned upside down by
Hurricane Ike are not alone as they face the task of
rebuilding,” said Perry. “I am thankful that our partners
at HUD and FEMA have responded quickly and effectively
to our request for assistance for Texans in need.”
Evacuees who cannot return to their homes or apartments by November 1 and whom FEMA determines
eligible will be provided rental assistance. HUD, through
its network of public housing agencies, will work with
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51
families and property owners and managers
to ensure that eligible families can find suitable apartments.
Initially, HUD will provide full rental
assistance to approved families, and beginning May 1, 2009, families will be responsible for paying $50 per month for their housing. The cost for housing will increase by
$50 each month until the DHAP-IKE program ends in April 2010.
POINTS OF INTEREST ABOUT
THE DHAP-IKE PROGRAM
• Beginning November 1, 2008, HUD will
begin making rental payments to families
declared eligible by FEMA who have been
placed in rental housing.
• Public housing agencies will contact
landlords and ensure the necessary documents are in place so that those families will
continue to receive uninterrupted assistance
payments through DHAP-IKE.
• PHAs will work with families and property owners and managers to enter into
rental assistance contracts as soon as families are referred by FEMA and begin case
management.
• DHAP-IKE will pay the higher of the fair
market rent rate or the housing agency’s
payment standard.
• Property owners and managers with
available rental properties can call a special
hotline to directly provide that information
to FEMA. The hotline is 1-866-766-6086.
FEMA housing specialists answer the lines
daily from 8 a.m. to 6:30 p.m.
• Texans seeking rental housing can
search more than 11,750 Texas rental properties in FEMA’s Housing Portal, which is
available online at https://asd.fema.gov/inter/
hportal/home.htm. It also contains information provided by the U.S. Department of
Agriculture and HUD.
With the implementation of the rental
assistance program and virtually no interruptions in background screening services,
property owners and managers can expect
to see some positive improvements in this
post-hurricane rental season.
Deona James is the national
sales manager for Resident
Data, a LexisNexis Service. She
is based in Houston and serves
as a Product Service Council
member for the Houston Apartment Association
and first vice-chair for the Texas Apartment
Association Product Service Council.
Sources: www.hud.gov, www.fema.gov, www.npr.org.
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Measure
Satisfact ion
Ask your residents early and often what they like
and don’t and how you can improve.
By
JOSEPH BATDORF, J Turner Research
w
hen is the optimal time to survey your residents about their satisfaction with your
staff and your property? Is it when they are
up for renewal, or maybe soon after they move in?
The truth is, managers and owners should be taking
residents’ temperature on a regular and frequent basis.
Understanding the factors that directly relate to long-term
profitability, including a resident’s length of stay, resident
referrals and brand loyalty, can help address property
problems that affect overall customer satisfaction.
EVENT SURVEYS CAN TARNISH DATA
Resident surveys built around a single event, such as a
new lease or move-out, only provide insights during a
limited span of time. The information you gather does
not provide a comprehensive look at the overall satisfaction of residents. This is the most common approach to
measuring customer service and can be something the
staff anticipates, thereby affecting results.
When surveys are conducted at renewal, managers
and owners have missed the opportunity to remedy any
potential issues causing a resident to want to move out.
A further complication with a survey conducted around
a renewal is that residents are less likely to respond if
they’ve already decided to not renew their lease. In that
case you’ve not only missed the chance to extend that
resident’s stay, you’ve also lost the opportunity to understand the problem.
A leading research firm specializing in the multifamily
industry has found that residents moving in at lease-up
report that they are considerably more satisfied with
their apartments than residents at more established
properties do. That makes sense, because residents are
generally happiest closest to move-in – and particularly
with a brand-new property vs. an aging community –
with few maintenance requests and the smell of fresh
paint still on the walls.
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KNOW YOUR OBJECTIVE
The best time to survey residents depends on your
objective. There are those who want to identify the
problems early so that they can identify areas of
improvement. Through surveys, those managers and
owners can better understand the reasons for the resident’s dissatisfaction. It’s almost like having another
supervisor on site.
Other managers would like to get the brighter picture
for marketing purposes and to prove to the owner or
The most correct answer to the question of when to survey
is when you want to shine in customer service, and that is
constantly and continually. If done correctly, you can avoid
burnout and get monthly, actionable feedback.
investors that their management is satisfying the residents.
When these survey results are
leveraged properly, problems
can be identified and resolved
and marketing tactics can be
adjusted to boost occupancy.
Positive data can also be used to demonstrate success in
the marketplace and reaffirm that the right management
team is in place to owners or investors.
The most correct answer to the question of when to survey is when you want to shine in customer service, and
that is constantly and continually. If done correctly, you
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55
can avoid burnout and get monthly, actionable feedback.
Monthly surveys are recommended to get the entire picture – the good and the bad – so that you can use the feedback and make adjustments to the operation of the property as an ongoing and essential function of business. The
more accurate and timely the picture of your residents’ satisfaction levels, the more effective your response will be.
It’s common sense that happy residents can
only improve your bottom line, and it’s better
to know now that you might have challenges.
TOO MUCH OF A GOOD THING?
Many owners believe that asking residents too often
about how they feel about the job they’re doing can be
wearing and will reduce a satisfactory response rate. So
how do you get constant feedback and not burn out your
residents?
Consider a system that gathers responses from only a
statistical portion of a community’s residents and uses
rolling averages to provide feedback to drive performance.
Using a very short survey format, residents are hit with
online surveys only twice a year. The responses are scored
and an index is provided that benchmarks the resident
satisfaction of the property. Monthly surveys are published and indexes provided so that a manager can keep a
finger on the pulse of the community’s perceptions of
value, customer service and referral probability, as well as
any custom topics management may want to measure.
The survey can be benchmarked and compared to the
market as well as other regions and states.
RESULTS GO BEYOND CUSTOMER SERVICE
Certain measurements of customer service directly correlate to important factors – length of stay, referrals and
brand loyalty – in long-term profitability.
“With this system in place, managers can very easily
understand that resident satisfaction drives our financials,” said Steve Eddington, senior vice president of operations with Camden. “Our company uses this index
nationally as a key business indicator and views the
results on our dashboard.”
Gathering feedback monthly from residents helps the
on-site staff focus on the key component: customer service. It’s common sense that happy residents can only
improve your bottom line, and it’s better to know now
that you might have challenges than to wait until a problem or an event to ask residents what’s on their minds.
Make resident satisfaction an ingrained, ongoing operational process rather than an event-driven curiosity. Your
property will benefit.
Joseph Batdorf is president of J Turner Research, an independent research firm providing business metrics that enable
owners and managers to measure and improve customer service
and operational efficiencies. For more information, visit
www.jturnerresearch.net/site/index.htm.
EMPLOYERS
POST JOB OPENINGS
SEARCH RESUMES
EMPLOYEES
FIND YOUR CAREER
POST YOUR RESUME
Visit www.haaonline.org
and click on the
Jobline link, e-mail
jobline@haaonline.org or
call 713-595-0300 to
learn more.
JOBLINE
56
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DESIGNATE OF THE MONTH
By
RACHEL ZOCH, HAA STAFF
A Passion for People
Greystar’s Kathy Moriarity puts her knowledge of psychology and
sociology to good use in the apartment business.
You’re only as
strong as the
people that
surround you.
The people that
I work with
every day – that
keeps me going.
K
athy Moriarity was finishing college and
considering graduate studies in social
work when a friend suggested she give
leasing apartments a try. She’s been in
the industry ever since.
“I graduated in ’90 and thought about getting
my master’s in social work and was just working
away as I was trying to decide what I wanted to
do,” she said, “and of course, ended up deciding
to work for a while before I went on for my master’s. And then I never went back.”
Moriarity began her multifamily career
as a leasing consultant for River Oaks
Management in 1989. She quickly discovered
that she loved the daily interaction with a variety of people and has worked her way up the
ranks from leasing to assistant manager, then on
to manager and property supervisor.
She has worked with just a handful of companies during nearly two decades in the industry,
including a 12-year stint with The Finger
Companies before landing in her current position with Greystar five years ago.
CONSTANTLY LEARNING
But the degree was only the beginning of her professional education. Now that she has earned her
Certified Apartment Property Supervisor certificate,
Moriarity is eager to begin the Certified Property
THE PEOPLE PRINCIPLE
Moriarity says that interacting with residents
and coworkers energizes her and keeps her
enthusiastic about her work.
“You’re only as strong as the people that surround you,” she said. “The people that I work
with every day – that keeps me going.”
She also says that the degree she earned in
psychology and sociology gives her an edge
when it comes to interacting with residents.
“I feel like I use my knowledge from my
degree daily, every day. It’s definitely been put
to good use,” she said, laughing.
Lease Contracts, Forms & Books Available From HAA Form Sales
HAA members can purchase the most comprehensive lease available in the industry, along with more
than 30 different forms. Also available to members is the TAA Redbook containing state and federal
statutes and governmental rules that affect all rental housing in Texas. For more information, contact Form Sales at
713-595-0317, e-mail forms@haaonline.org or order online at www.haaonline.org.
58
NOVEMBER 2008
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Manager courses with the Institute of Real
Estate Management.
“I’m always striving to learn and better
myself,” she said, “and that was the next
step, to get my CAPS. … I think that all the
material in the eight modules of the CAPS
just helps me to be a better, well-rounded
property supervisor and helps me to better
support the people that work with me in
the portfolio.”
LEARNING TOGETHER
Moriarity says she enjoyed swapping stories with her peers from other companies
and gaining a broader perspective on operations across the industry.
The material in the eight
modules of the CAPS just
helps me to be a better,
well-rounded property
supervisor and helps me
to better support the
people that work with me
in the portfolio.
“I really enjoyed meeting all the different
people that taught from various management companies. That was exciting to get
their take on our industry,” she said. “But
I did enjoy the camaraderie and talking
with all the other managers and supervisors
that were wanting to do the same thing
that I was.”
She also says the courses helped her build
on the things she’s learned through experience over the years.
“It’s all information that we know, we’ve
learned along the way,” she said, “but it’s a
wonderful refresher to go through it all.”
Join us in congratulating our
new designates at the
Annual Business Meeting on
Thursday, November 20.
See Page 6 for details, or visit
www.haaonline.org to register.
HAA Members:
Do you need the HAA
logo for your promotional
materials? Three versions
are available and can be
provided in any format
you need.
For your copy, call Deborah
Nix at 713-595-0333 or send
an e-mail to dnix@haaonline.org.
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59
WELCOME MAT
Introducing
OWNER MEMBERS
SUPPLIER MEMBERS
5050 Northwood Villas Ltd.
6776 Southwest Fwy. #587
Houston, TX 77074-2109
713-783-8780
Northwood Villas Apartments
Phil Munford
19810 Sunbridge Lane
Houston, TX 77094
281-704-2152
Referred by Kelli Guyton
Bayshore Properties
P.O. Box 10010
Merrillville, IN 46411-0010
219-942-2795
Trails of Ashford Apartments
Mario Ortiz
3109 Autumn Harvest
Friendswood, TX 77546-5289
832-385-1256
Referred by Del Walmsley
Candido & Blanca Bran
c/o Woodrow Apartments
16415 Woodrow
Channelview, TX 77530
516-852-4320
Woodrow Apartments
Nancy Fajardo
6714 Hendon
713-777-6335
Colquitt Apartments
Nancy Fajardo Property
Guahan Development
Group LLC
Catherine Cochran
702 Malone
Houston, TX 77007
713-875-9286
331 West 17th Street Property
GUW Management
Li Guo
6719 Charlton St.
Sugar Land, TX 77479-5771
281-450-3433
Investors Freedom Property
Management Services
Sheri Burton
P.O. Box 408
La Porte, TX 77572
281-476-9846
JPMI Team Realty
Jerry Johnson
19502 Providence Shore
Cypress, TX 77433-3324
713-931-4713
Residence Property Company
Jay Stewart
5851 San Felipe #220
713-266-0414
Residence at Lake Jackson Apts.
SARK Investments Inc.
Steve Reeves
1104 Middlecreek St.
Friendswood, TX 77546-5446
832-582-9300
John F. Schubert
318 Somerville Way
Vacaville, CA 95687-6808
510-507-2840
John F. Schubert Property
Roberto A. Trevino
4105 Garrott #18
Houston, Texas 77006-5629
832-875-9266
Referred by Kelli Guyton
Twelve Canfield Place LLC
Angela Wiley
P.O. Box 301055
713-748-0695
Twelve Canfield Place
Apartments
Cornerstone Apartments
Taupa Apartments
Welcome to HAA!
See Pages 20 and 21
and www.haaonline.org
for a calendar of our
upcoming events.
All About Food
Jacque Dupree
12424 Rebel Road
Cleveland, TX 77327-7262
281-546-5489
Caterers
Party Planning Service
Referred by Peggy Charles
All Stages Plumbing of
Texas LLC
Chris Marullo
3830 West Main St.
League City, TX 77573-1735
281-316-1641
Plumbing Contractors
Plumbing Drain/Sewer
Cleaning
Referred by Robert Winograd
AMS Restoration Services
Inc.
Aubrey Vaughan
P.O. Box 1735
Cleveland, TX 77328-1735
281-592-1300
Balcony Repair
Carpenters
Concrete Repair
Drywall Contractors
Exterior Surface Protectant
Masonry Contractor
Painting Contractors
Stucco & Exterior Coating
Contractors
An Apple a Day
Melissa Ramon
4809 Bellview
Bellaire, TX 77401-5305
866-410-9874
Marketing Consultants & Svc.
Welcome Baskets
Harco Insurance Services
John Hill
10777 Northwest Fwy. #800
Houston, TX 77092
713-681-2500
Insurance
Financial Services
Referred by John Hill
Did you know that when you join the Houston
Apartment Association, you are also a member of
the Texas and National Apartment Associations?
As a member of the HAA, your membership works
for our industry at a local, state and national level.
Get involved, support your industry and make your
membership work for you. Call HAA at 713-595-0300
for more information.
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NOVEMBER 2008
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IESI Solid Waste Services
Chad Theriot
827 W. Hwy. 6
Alvin, TX 77511
281-331-0810
Trash Hauling
Trash Containers
Garbage Collection
Waste Reduction/Disposal/
Recycling
JRC Construction
Joel Coughran
32410 Watersmeet St.
Fulshear, TX 77441-4145
832-451-7927
Remodeling & RepairBuilding Contractors
General Contractors
Liberty Screening Services
Natalie Taylor
2180 North Loop West #350
713-980-1751
Employee Screening
Referred by Theresa Lamar
Pro Turf Landscaping
Maggie Vega
P.O. Box 681336
832-330-1829
Landscape Contractors
Lawn Maintenance
Referred by Diane Gilbert
Semper Fi Electrical
& Data Service
Michael Flores
23746 Desert Gold Drive
Katy, TX 77494-0114
281-657-5281
Lighting Consultants
Electric Contractors
STAR Plumbing Heating &
Cooling
Brent Garrett
10963 Cutten Road #108A
281-461-7827
A/C Contractors
Plumbing Contractors
Referred by Ed Fowler
SEPTEMBER new members
StubDog Inc.
Sam Levassar
3729 Seneca Ave.
Los Angeles, CA 90039-1822
281-857-6521
Concierge Services
Entertainment-Event
Ticket Sales
Referred by Billy Griffin
TDG General Contractors
Inc.
Darren Kitchen
P.O. Box 675
Splendora, TX 77372-0675
281-399-0911
Fire/Water Damage
Restoration
General Contractors
Put your prospects under a
microscope.
Make sure you lease to the
best residents with RCR.
The Bug Reaper
Anthony Esposito
2102 Berkshire Elm St.
Katy, TX 77493-3512
281-705-1893
Pest Control Services
Termite Treatment
Referred by Peggy Charles
Problem: You can’t tell from a prospective resident’s face whether he or she will
skip out on your lease.
Txtapt
Daniel Ellis
2900 S. Gessner Road #1803
281-804-7191
Advertising-Internet
Marketing Consultants & Svc.
Referred by Sonny Unverzagt
Resident Credit Reporting data can nip your problem in the bud by alerting you if
a prospect has an unfavorable history. We offer 24/7 Web access, responsive
customer service and a uniquely thorough local database with access to national
information.
WCA Waste Corporation
Erin Nicholas
6632 John Ralston Road
713-670-9199
Garbage Collection
Trash Hauling
Referred by Michael Flores
Solution: Knowing your prospects’ rental histories is the key to minimizing the
risk of future default. In Houston’s fiercely competitive market, what better way to
evaluate a prospective resident than through his or her rental and eviction history?
Together with national partner First Advantage SafeRent, RCR provides its services
starting at 30 cents per unit, per month for unlimited usage, not a per-inquiry
fee like other screening services. That price includes access to applicants’ rental
histories, criminal histories, inquiry histories so you know who else has been
asking and more – and it’s all available 24/7 with immediate, online access
(surcharges apply for phone access during regular business hours).
Our clients tell us RCR is the best source of bad debt
collection available. Help us help you by reporting your
move-ins, move-outs and evictions for FREE. The cost to
report is nothing, but the returns are substantial. The more
data you enter, the more skippers we can catch – and that’s
good for everyone in the business.
RCR is just one more benefit made available to you by
membership in the Houston Apartment Association. Our
rental history and eviction information will give you the
upper hand. Become a subscriber today to boost your bottom line and greatly increase your collection of bad debt.
For more information, contact the
RCR department at 713-595-0345
or rcr@haaonline.org.
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AMBASSADORS
What’s Up?
Tell the Ambassadors how membership in HAA affects your business.
New Ambassadors at the September meeting. Standing are Patrick Sheahan, Sherwin Williams Co.; Jacob Kunath, Century A/C;
Eli Attal, TXU Energy; Daniel Ellis, Txtapt; Elisa Rueda and Jeff Duerstock, TXU Energy; and Israel Garza, ICI Paints. Seated are
Barbara Brett, McBride Electric; Co-chair Michelle Pahl, Century A/C; and Andrea Winans, Bishop’s Office Needs.
AMBASSADOR VIPs
This list reflects the number of questionnaires completed by each Ambassador.
Ambassadors listed in bold reached new achievement levels at press time.
HALL OF FAME
700
Patrick Sheahan
500
Julio Garcia
Top producers at the September meeting: Barbara Brett, McBride
Electric; Co-captain Mary Estrada, Certified Recovery/Verification Plus;
Co-Captain Lisa Grimes, D&C Contracting; and Co-chair Michelle Pahl,
Century Air Conditioning.
AMBASSADORS OF THE MONTH
400
Rashann Fontenot
300
Barbara Brett
Patrick Brothers
Peggy Charles
David Hardwick
Jimmie Hotz
Alan Jones
Nancé Wells
250
Michael Flores
Billy Griffin
Michelle Pahl
Laura Collins
217 Questionnaires
M.J. Featherston
Access Electric
141 Questionnaires
The Ambassadors are the eyes and ears of HAA, surveying members on
their wants and needs. If you would like to be a part of the Ambassador
Club, contact Lisa Butler at 713-595-0322 or lbutler@haaonline.org.
62
NOVEMBER 2008
ABODE
150
Mary Estrada
Kevin Fenn
Amy Mauer
Tony Montemarano
Jimmy Renteria
Randy Rowles
200
NORA KRAKOWER
LIFETIME AWARD
Laura Collins
Lisa Grimes
Kathy Smith
Donald Sweitzer
Andrea Winans
100
CHRISTINE MOHEB
MEMORIAL AWARD
Debbie Andreozzi
M.J. Featherston
Fernando Gomez
Billie Johnson
Nora Krakower
Brenda Nite
Sandra Parker
Pablo Paz
Karin ChurchfieldTyson
James Wagner
75
Karl Heinrich
John Hill
Norma Ledbetter
Joe Slaughter
Roland Silas
Todd Smith
25
Stephen Abila
Jessica Baker
Jeff Blevins
Janet Dorsett
Darlene Dow
Andrea Dunlop
Kimberly Flores
Israel Garza
James Gregory
Erica Hallmark
Dallas Hardwick
Trisha Hunter
Dan James
Glenda Jeffcoat
Dean O’Kelley
Chuck Littlepage
Mark Park
Beth Rohani
Mike Romano
Shawn Royer
Preston Sams
Carlos Sanchez
Glenda Vargas
10
Greg Baughman
Ronnie Beavers
Josh Carter
Grant Crowell
Aimee Ferrini
Travis Fowler
Lisa Godwin
Laura Hancock
Jason Henley
Philip Jones
Jacob Kunath
Laura Lestus
Chuck Littlepage
Erin McCary
Deana Miller
Krista Oliver
Michelle Opalewski
Wendy Pearson
Robert Pfunder
Mindy Price
Carlos Sanchez
Crystal Sepulveda
Jodi Southwick
Wayne Trusty
Beth Varney
Marivel Villanueva
Kevin Wendt
Heather Wiesner
Angie Wilganowski
Brandy Williams
Ron Winans
Producers from the Charles, Collins and
Estrada Team, The Legends. In back are
Scott Walker, Sign*A*Rama of NW Houston;
Mike Reiland, Integrity Images; Anthony
Esposito, The Bug Reaper; Co-captain Mary
Estrada, Certified Recovery/Verification Plus;
Patrick Sheahan, Sherwin Williams Co.; Josh
Carter, Kwal Paint; Co-captain Laura Collins,
Classic Touch Painting; John Hill, Harco
Insurance Services; and Jimmie Hotz, HD
Supply. In front are Co-chair Michelle Pahl,
Century Air Conditioning; Rita Young, Lone
Star Living; Alan Jones, ICI Paints; CoCaptain Peggy Charles, Brandt Electrical
Services; Barbara Brett, McBride Electric; and
Andrea Winans, Bishop’s Office Needs.
Producers from the Grimes, Featherston
and Gomez Team, The HAA Idols. IBack
row: Jason Lavrack, Maintenance Supply
Headquarters; Elisa Rueda, TXU Energy;
Chris Espinoza, Ygnition Networks; Co-captain Fernando Gomez, Century A/C; and
Kim Frangullie, Apartment Guide. Middle
row: Kenyon Carroll, Maintenance Supply
Headquarters; Israel Garza, ICI Paints;
Fanny Garcia; Trisha Hunter, Access Electric;
Co-Captain Lisa Grimes, D&C Contracting;
Debra Knight, Liberty Personnel/Executive
Search; Jessica Tollett, Jacob Kunath, Patrick
Brothers and André Gonzalez, Century
A/C. Front row: Co-captain MJ Featherston,
Access Electric; Co-chair Michelle Pahl,
Century A/C; Nancy Romano, Bankers Life
and Casualty Company; Barbara Brett,
McBride Electric; Aimee Ferrini, Scott
Equipment; and Laura Lestus, Liberty
Personnel/Executive Search.
ABODE
NOVEMBER 2008
63
GO-GETTERS
PRESIDENT, continued from Page 7
Thanks to You!
HAA is grateful to all our recruiters for helping us meet our goal.
M
any thanks go to our top recruiters for the 2008
Membership Campaign. They, along with our other
qualifying Go-Getters, are invited to Join us for a
luncheon celebrating our success on Monday, November 10
at 11:30 a.m. at Maggiano’s, 2019 Post Oak Blvd.
Congratulations to our Top Recruiters
ANNUAL BUSINESS MEETING
We will have cash incentives for recruiters who qualify. You
must be present to win. To register for the luncheon, contact
Lisa Butler at lbutler@haaonline.org or 713-595-0322.
Thank you also to our generous sponsors for supporting our
membership recruitment meetings:
AAA Plumbers
FSI Construction
Absolute Turn-Key
American Arches
Hiebert Photography
Apartments.com
ICI Paints
Builders Granite & Tile Inc.
MAB Flooring Inc.
Resident Data
RPM Daily Services
Certified Recovery Systems
Utility Advantage of Texas
Valet Waste
CORT Furniture Rental
donation to the American Cancer Society,
raising our total donation over seven years
to more than $200,000.
Thanks are also due to the many bidders
and winners who made our silent auction at
the chlli cook-off another successful effort to
support the local chapter of the Red Cross.
Closer to home, thanks to the folks who
braved the rain to attend October’s debate
watch party, where we raised more than
$1,300 for the NAA PAC. See Page 42 for
photos from the party.
Earon Hunt,
Greystar
12 new members
13 renewals
Suan Tinsley, GFI
Management
11 new members
Anita Harrison,
Greystar
6 new members
15 renewals
The Go-Getters are the backbone of the Houston Apartment Association.
By recruiting new members, the Go-Getter Club helps both new management and supplier companies and the association grow for the future.
For more information on the club, contact Lisa Butler at 713-595-0322
or e-mail lbutler@haaonline.org.
Be a Go-Getter and
recruit for HAA.
It’s easy and it’s fun!
Need a way to say thanks to the people who
make your job easier? The Annual Business
Meeting on Thursday, November 20 is a great
way to show appreciation for your employees
and to congratulate those who have earned
NAA designations. Channel 13’s Debra
Duncan will deliver the keynote address, and
we will elect our HAA officers for the coming
year. See Page 6 for details and make plans to
attend HAA’s last big event of the year.
Don’t forget about the Fair Housing seminar that morning – you can never know too
much about this law that affects every aspect
of our business.
SUPPORT THE BGF
The big election may have passed, but it’s
always a good time to support the Better
Government Fund to advocate for our industry. Due to Ike-related delays, our annual fall
golf tournament has become a winter golf
tournament. You still time to sign up for this
important BGF fundraiser, now set for
Monday, December 8. Contact Aimee for
details at aarrington@haaonline.org.
Contact Lisa for more information
at lbutler@haaonline.org.
Keep the Houston Apartment Foundation Dinerstein Reed
Prokop Education Center in mind when your company is in
need of a facility for your next meeting or employee training. For
more information, contact Lana Shiller at 713-595-0306, e-mail
lshiller@haaonline.org or visit us online at www.haaonline.org.
64
NOVEMBER 2008
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This screen shot shows the news video featuring
David Jones talking with ABC-13 reporter Jeff Ehling
about a fraudulent apartment ad on Craigslist.
ABODE
NOVEMBER 2008
65
PROPERTY UPDATE
NEW CONSTRUCTION
United Apartment Group opened Mariposa at Reed Road, 180 units at
2889 Reed Road, in September.
Landmark Management celebrated the opening of Landmark at City
Park, 288 units at 2201 West Orem, in October.
Westwood Residential opened the Alexan at Grand Mission, 300 units
at 19002 Mission Park Drive in Richmond, in late October.
PROPERTY CHANGES
Oak Leaf Management now operates Whispering Oaks, 140 units at
1200 N. Loop 336 in Conroe, and The Park at Deerbrook, 100 units at
19700 Whitaker in Humble.
HM Equity has assumed management of the Northpoint Apartments,
103 units at 74 Lyerly, and has renamed the property Casa Adobe.
Myan Management Group now operates the Chesterfield Apartments,
254 units at 11735 S. Glen Drive.
Alpha-Barnes Real Estate has assumed management of the Kensington
Place Apartments, 216 units at 711 FM 1959.
The Self Law Firm now operates the Rollingwood Apartments, 211 units
at 670 Maxey.
PMR Companies has assumed management of Sherwood Glen
Apartments, 56 units at 3805 Sherwood Lane.
Chancellor Property Management now operates the Silverbrooke
Apartments, 312 units at 1020 Brand in Stafford, and the Shadowbrooke
Apartments, 240 units at 1025 Dulles in Stafford.
Holistic Equity Management now manages the Sebring Apartments,
204 units at 9501 Beechnut.
Changes for
Properties
and
People
Centaurus Management now operates the Trails at Dominion Park,
336 units at 200 Dominion Park and 224 units at 150 Dominion Park,
and the Trails at Dominion Grove, 283 units at 211 Dominion Park.
Greystar has assumed management of the following properties:
Brickhaven Apartments, 780 units at 8900 Fondren
Alta Pine Forest, 258 units at 10373 N. Sam Houston Pkwy.
Cypress Village, 273 units at 25222 Northwest Fwy. in Cypress
Kirby Place, 362 units at 7500 Kirby.
Concierge Asset Management now operates El Dorado Ranch,
324 units at 265 El Dorado Blvd. in Webster.
Orion Real Estate Service has assumed management of these properties:
The Park at Humble, 216 units at 9390 FM 1960 West
The Park at Woodland Springs, 250 units at 24011 Richards in Spring
The Park at Woodwind Lakes, 144 units at 14333 Philippine
Highland Meadow Village, 250 units at 10990 Highland Meadow.
Creative Property Management now operates the Red Pines
Apartments, 244 units at 3823 Red Bluff Road in Pasadena formerly known
as The Palms.
Nova Property Management has assumed management of the Bellfort
Villa Apartments and changed the property’s name to San Marcus
Apartments. The 380-unit property is located at 6301 W. Bellfort.
Haole Management has acquired Miracle Pointe, 144 units at 8600
Sterlingshire. Riverstone Residential will manage the property, now
known as Angel Ridge.
Westwood Residential has consolidated The Oaks of Beverly Hills and
the Beverly Hills Condos into a single property called Chateaux Dijon. The
353-unit property is located at 5331 Beverly Hill St. #22a.
IN THE NEWS
NAME CHANGES
The 324-unit property at 10070 Westpark formerly known as Berkshire at Westchase is now
called Legacy at Westchase.
CNC Investments has changed the name of
the 240-unit property at 13502 Northborough
from Northborough Woods to Sago Palms.
Titan Management has moved its offices to
3777 S. Gessner. The company’s new phone
number is 713-782-4996.
7777 Blankenship Drive • Houston, Texas • 77055
PEOPLE ON THE MOVE
Carol Dougherty has joined the Walden
Affordable Group team.
NEW ARRIVALS
Gary Kiker, Dixie Carpet, and his wife and
daughters welcomed Lillianne Claire Kiker to the
family on September 26.
The Kiker sisters
SPECIAL THANKS
The Houston Apartment Foundation thanks
Francis Property Management for its generous
donation of a printer and printer stand for the
computer lab. Pictured are Debbie Sulzer and
Michelle Woodard.
66
NOVEMBER 2008
ABODE
ABODE
NOVEMBER 2008
67
e
n
i
l
n
o
E
D
O
Get your AB
Log on now at www.haaonline.org
Go to the “ABODE Archives”
Click on “ABODE Magazine”
MORE LAW, continued from Page 44
determines that, in the balance of interests,
the burden of placing this responsibility on
the owner would not be feasible or desirable.
This decision also illustrates that an owner
does not necessarily have to break the bank
in order to secure residents from the criminal acts of others. However, owners should
be prepared to defend themselves against a
claim that the owner has not done enough.
The measures that an owner takes that could
possibly be related to security issues should
be acknowledged and the appropriate representation should be made to residents with
respect to each measure.
If you have off-duty police officers, access
gates, alarm systems or the like, it would be
beneficial to describe these to residents,
advise residents what these measures are not
intended to do (i.e. provide personal policetype protection to residents) and tell residents what they should do to take precautions to protect themselves. If a crime does
occur on your property and a claim is made,
you will then be in a better position to
explain to a judge and jury that, notwithstanding the potential foreseeability of crime,
providing the protection demanded by the
plaintiff would not be reasonable or feasible.
CONCLUSION
With each new decision, we learn more
about what the court is thinking with
respect to holding an owner or manager
liable for how to protect ourselves from
criminal activity. Take this opportunity to
recheck your policies and procedures to be
sure that you will be in the best position
possible to defend against a claim that you
did not provide adequate security.
8
OCTOBER 200
n Magazine
rtment Associatio
The Houston Apa
2008
Log In
✯
✯
Earn your Blue Star!
Register for our next seminar to get
started. See Page 25 for details.
7:30 a.m. to 4 p.m.
$45 at the door
n
o
i
t
c
Ele
The Blue Star Certification Program is a
joint effort by the Houston Police
Department and HAA to help law enforcement officials and the apartment industry
work together to effectively reduce criminal
activity in rental properties.
The
E
Download
ABODE
NOVEMBER 2008
69
PHOTO ALBUM
Photos fromthe
POST-IKE MEETINGS
Apartment managers filled the HAF Dinerstein Reed Prokop Education Center on September 26 to
learn more about housing needs after Hurricane Ike.
and the
ACT SAFE SELF-DEFENSE SEMINAR
Dick LaMarche, Andrew Zel and David Kapiloff
Iris Chavez, LBK Management Services, helps ACT Safe instructor Mark Cukro
demonstrate a self-defense technique during the seminar on October 8.
Rose Garza and Fred Bhandara
Howard Bookstaff
Bob Pizzaturo
A Riverstone manager asks a question.
ACT Safe instructor Rebecca Rosario
tells attendees about personal safety.
Many members, including Veronica Chavez and Emery Jakab, center, attended the
DHAP-IKE meeting to hear HUD officials explain the program on October 3.
HUD’s David Vargas
explains details of the
DHAP-Ike program.
Hit the greens
while raising
green for
political action
Beth Van Winkle and John Ridgway
Rebecca Rosario helps Betty Mireles and James Marquez, Michael Stevens
Interests, practice how to break an attacker’s grip.
Rescheduled for
Monday, December 8
BraeBurn Country Club
For more information,
contact Aimee Arrington
at 713-595-0302 or e-mail
aarrington@haaonline.org.
for the HAABGF 2008 Fall Golf Tournament
70
NOVEMBER 2008
ABODE
Mark Cukro explains the importance
of keeping a safe distance.
Rebecca Rosario shows three attendees from
Tarantino how to break an attacker’s grip.
Thanks to event sponsor
Best Plumbing.
ABODE
NOVEMBER 2008
71
LEGISLATIVE, continued from Page 9
MIGURA
INSURANCE
AGENCY
For All Your Apartment
Insurance Needs
Since 1969
(281) 499-7676 Office
(281) 499-5952 Fax
1-800-259-7676
STAN W. MIGURA, CIC
920 C. FM 1092 • P.O. Box 844
Stafford, Texas 77497
payments in the Katrina program and received
rave reviews from owners for timely payments.
At press time, details were still being
worked out, but the Department of Housing
and Urban Development’s initial draft of
rules for the Disaster Housing Assistance
Program (DHAP – Ike) include everything
HAA members had suggested. The program
was scheduled to begin on November 1, providing up to HUD fair market rent for the
rental of units by Ike evacuees for six
months. Beginning the seventh month,
evacuees will pay $50 of their rent with the
amount increasing $50 each month until the
evacuee is paying the entire amount.
Security deposits will be funded.
Background checks will be allowed. Payment
will be coordinated by local public housing
authorities. Finer details of the program
were still being worked out at press time,
so keep an eye on www.haaonline.org for
more information.
may 20, 2009
reliant center
ROOFER REGISTRATION
An influx of fly-by-night roof repair operations from out of town following Hurricane
Ike led the City of Houston to quickly create
a registration program for roofing contractors. Still pending before City Council at
press time, the ordinance would require a
roofing contractor to register with the city,
pay a $75 fee, provide contact information
with a physical address and provide proof of
liability insurance with minimum limits of
$1 million for death or injury and at least $1
million for property damage, per occurrence.
Apartment properties generally require at
least that much insurance, and often more,
from their roofing contractors, so the new
law – if passed – is unlikely to have much of
an impact on HAA-member roofing companies. Still, we’ll be monitoring the progress
of the ordinance closely for unexpected
twists and turns.
POOL INSPECTIONS
Following a major storm, city pool inspectors want to stress the importance of getting
swimming pool water back in crystal-clear
shape, even if residents aren’t doing any
swimming. Clarity of the pool water is a key
requirement of all pool ordinances, and a
clear view of the main drain at the deepest
part of the pool is the best quick test. Have
your maintenance staff or pool professional
keep an eye on water quality after any major
rain event, especially where wind made
debris an additional issue.
72
mark your calendars as the houston apartment association goes green
for more information, contact amanda sherbondy at 713-595-0316 or e-mail asherbondy@haaonline.org
NOVEMBER 2008
ABODE
Video Rental Services . . . . . . . . . . . . . . . . . . . . .69
800-475-5184 . . . . . . . .www.videorentalservices.com
Apartment Finder . . . . . . . . . . . . . . . . . . . . . . . .65
800-422-8300 . . . . . . . . . . . . .www.apartmentfinder.com
Maintenance Supply Headquarters . . . . . . . . . .32
281-530-6300 . . . . . . . . . . . . . . .www.supplyhq.com
Waste Management . . . . . . . . . . . . . . . . . . . . . .65
713-354-5230 . . . . . . . . . . . . . .www.thinkgreen.com
Apartment Guide . . . . . . . . . .Inside Front Cover, 14
713-960-8292 . . . . . . . . . .www.apartmentguide.com
Meyer Smith Inc. (Houston Gate) . . . . . . . . . . .44
713-862-7339 . . . . . . . . . . .www.meyersmithinc.com
Webb Pest Control . . . . . . . . . . . . . . . . . . . . . . .72
800-243-6303
Apartment Video Club . . . . . . . . . . . . . . . . . . . .74
281-480-0742
Migura Insurance Agency . . . . . . . . . . . . . . . . . .72
281-499-7676
Zinsser . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
888-855-1774 . . . . . . . . . . . . . . . . .www.zinsser.com
Appliance Warehouse . . . . . . . . . . . . . . . . . . . . .48
800-693-4343 . . . . . . . . . . .www.appliancewhse.com
Namco Manufacturing . . . . . . . . . . . . . . . . . . . .53
800-634-5816 . . . . . . . . . . . . . .www.namcomfg.com
BG Personnel Services . . . . . . . . . . . . . . . . . . . . .16
713-781-8367 . . . . . . . . . . . . .www.bgpersonnel.com
Perfect Surface . . . . . . . . . . . . . . . . . . . . . . . . . .27
713-952-0202
CKI Wholesale Lock Supply . . . . . . . . . . . . . . . . .69
713-462-0704 . . . . . . . . . . . . . . . . .www.ckilock.com
Marvin Poer & Company . . . . . . . . . . . . . . . . . .66
713-460-4500 . . . . . . . . . . . . . . . . .www.mfpoer.com
Camp Construction Services . . . . . . . . . . . . . . . .15
713-413-2267 . . . . . . . . . . . . . .www.camprecon.com
Rasa Floors . . . . . . . . . . . . . . . . . . . . . . .Back Cover
713-660-7777 . . . . . . . . . . . . . . .www.rasafloors.com
Century Air Conditioning . . . . . . . . . . . . . . . . . .35
281-530-2859 . . . . . . . . . . . . . . .www.centuryac.com
Reliant Energy . . . . . . . . . . . . . . . . . . . . . . . . . . .13
800-894-6678 . . . . . . . . . . . . . . . . .www.reliant.com
Need forms? Call us today!
Contact our Form Sales department directly
at 713-595-0317, or send
an e-mail to forms@haaonline.org.
History of Effective Rental Rate & Occupancy for All Units
SNAPSHOT
Occupancy:
Price:
Rental Rate:
Size:
84.0 –
86.9%
$716/mo.
83.0¢/sq.ft./mo.
863 sq.ft.
Past 12 Months:
4.3% rental rate growth
7,138 units absorbed
Operating Supply:
2,798 communities
550,758 units
Recently Opened (12 months):
61 communities
17,460 units
•
•
82.0 –
•
Submarket
Heights
Medical Center/Bellaire
Katy/Far West
Woodlands/Far North
Far East
•
•
– 89.0
• • • • •
•
• •
• •
80.0 –
78.0 –
• • •
•
•
– 88.0
•
– 87.0
76.0 –
Oct 06
– 86.0
HOTTEST SUBMARKETS Over the Past Three Months
Rank
1
2
3
4
5
– 90.0
• •
•
Under Construction:
58 communities
15,854 units
Proposed Construction:
59 communities
18,029 units
– 91.0
% of Market
Absorbed
3.8%
2.2%
3.2%
2.2%
1.1%
Annualized
Rental Rate
Growth %
10.3%
13.6%
7.1%
7.8%
11.1%
Sep 08
JSZ Financial Co. . . . . . . . . . . . . . . . . . . . . . . . . .66
972-404-8390 . . . . . . . . . . . .www.rentcollectors.com
Jul 08
Ameritex Apartment Movers . . . . . . . . . . . . . . .29
713-484-8400 . . . . . . . . . .www.ameritexhouston.com
Aug 08
Video Monthly . . . . . . . . . . . . . . . . . . . . . . . . . . .56
713-880-3333 . . . . . . . . . . . .www.videomonthly.com
Jun 08
Hiebert Photography . . . . . . . . . . . . . . . . . . . . .33
281-961-3014 . . . . . . .www.hiebertphotography.com
Apr 08
Ameristar Screen and Glass . . . . . . . . . . . . .34, 67
713-683-6767 . . . . . . . . . . .www.ameristarglass.com
May 08
Texas Apartment Supply . . . . . . . . . . . . . . . . . . .71
800-493-5406
Mar 08
Hamilton-Steele Outdoor Accents . . . . . . . . . . .57
713-533-9059 . . . . . . . . . . .www.hamilton-steele.com
Jan 08
Alexander-Rose Associates Inc. . . . . . . . . . . . . . .72
713-644-4441
T
Feb 08
TPI Painting Inc. . . . . . . . . . . . . . . . . . . . . . . . . . .1
713-668-7986 . . . . . . . . . . . . . .www.tpipainting.com
Dec 07
FSI Construction . . . . . . . . . . . . . . . . . . . . . . . . .34
713-690-5330 . . . . . . . . .www.foundationexperts.com
41 submarkets, and the ranking is based on the best combination of
rental rate growth and absorption over the past three months. The third
table distributes and analyzes concessions (specials) by classification.
Concessions generally are represented by three types of specials:
move-in, months free or floor plans. The effect of these specials is
captured and prorated over a lease term to arrive at a percentage
reduction in market or street rents.
Oct 07
AIMSCO Supply . . . . . . . . . . . . . . . . . . . . . . . . . .12
832-494-1900 . . . . . . . . . . . . . . . .www.aimscosupply.com
he first table below displays a snapshot of the current market
conditions. The graph displays the overall occupancy and
effective rental rates over the past 24 months. These statistics
are derived from a continuous survey of all apartment communities in
the Houston region. The effective rental rates are the calculated net of
concessions and utility adjustments. The second table lists the five
hottest submarkets in the Greater Houston area. There are a total of
Nov 07
Service Concepts . . . . . . . . . . . . . . . . . . . . . . . . .49
936-441-2121 . . . . . . . . . . . .www.serviceconcepts.us
Aug 07
For Rent Magazine . . . . . . . . . . . . . . . . . . . . . . . .5
281-281-1800 . . . . . . . . . . . . . . . . .www.forrent.com
Sep 07
Advalorem Tax . . . . . . . . . . . . . . . . . . . . . . . . . . .52
281-474-2300 . . . . . . . . . . . . . . . .www.advaloremtax.net
Jul 07
Scott Equipment . . . . . . . . . . . . . . . . . . . . . . . . . .7
713-686-7268 . . . . . . . . . .www.scott-equipment.com
Jun 07
First Advantage-SafeRent . . . . . .Inside Back Cover
972-612-2420 . . . . . . . . . .www.registry-saferent.com
May 07
Advanced Foundation Repair . . . . . . . . . . . . . . .59
713-464-5561 . . . . . .www.advancedfoundationrepair.com
BRUCE McCLENNY, President, Apartment Data Services
HOUSTON
Apr 07
Resident Credit Reporting . . . . . . . . . . . . . . . . .61
713-595-0345 . . . . . . . . . . . . . . .www.haaonline.org
Feb 07
Dixie Carpet Installations . . . . . . . . . . . . . . . . . .63
281-261-6334 . . . . . . . . . . . . . .www.dixiecarpet.com
Mar 07
Access Electric . . . . . . . . . . . . . . . . . . . . . . . . . . .37
281-489-7755 . . . . . . . . . . . . . . .www.access-electric.com
Jan 07
RentBureau.com . . . . . . . . . . . . . . . . . . . . . . . . .74
877-703-7368 . . . . . . . . . . . . .www.rentpredict .com
Dec 06
Comcast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
713-341-1000 . . . . . . . . . . . . . . . .www.comcast.com
By
Nov 06
AAA Plumbers . . . . . . . . . . . . . . . . . . . . . . . . . . .67
713-462-4753 . . . . . . . . . . . . . . . . . .www.aaaplumbers.cc
MARKET LINE
Rental Rate (¢/sq.ft./mo.)
RENCON . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
713-666-3636 . . . . . . . . . . . . . . . . . . .www.rencon.cc
•
Certified Recovery . . . . . . . . . . . . . . . . . . . . . . . .69
713-464-8219 . . . . . . . . . .www.certifiedrecovery.com
Occupancy (%)
INDEX OF ADVERTISERS
CONCESSIONS
Class
All
A
B
C
D
Total Units
w/Concessions
264,219
44,357
97,877
113,696
8,290
% of
Total Units
48%
46%
46%
55%
25%
Average
Special
-6.9%
-6.4%
-7.0%
-6.9%
-10.3%
Citywide
Effect
-3.6%
-3.0%
-3.6%
-4.1%
-5.0%
One Month Free = -8.33%
TEXAS
74
NOVEMBER 2008
ABODE
DALLAS/FT. WORTH
SAN ANTONIO
AUSTIN
Occupancy:
Price:
Rental Rate:
Size:
Occupancy:
Price:
Rental Rate:
Size:
Occupancy:
Price:
Rental Rate:
Size:
90.1%
$747/mo.
87.0¢/sq.ft./mo.
859 sq.ft.
89.8%
$681/mo.
82.1¢/sq.ft./mo.
829 sq.ft.
89.3%
$843/mo.
98.0¢/sq.ft./mo.
860 sq.ft.
Past 12 Months:
Past 12 Months:
Past 12 Months:
Operating Supply:
2,495 communities
554,061 units
Operating Supply:
688 communities
136,703 units
Operating Supply:
698 communities
151,625 units
Apartment Data Services Inc. has
been providing apartment data and
marketing products since 1986.
ADS Online covers Texas’ four
largest metro areas and provides
real-time access for property specific
information, market surveys and
historic submarket data for more
than 1.3 million apartment units.
McClenny at 800-595-8730.
© 2008 Apartment Data Services Inc.
ABODE
NOVEMBER 2008
75
BACK PAGE
News from around the
COMMUNITY
It’s fund-raising season, and HAA needs your donations and support for these worthy causes:
Share Your Holidays
Help HAA and Channel 13 feed
the needy this holiday season
The annual KTRK Channel 13 “Share Your Holidays” food
drive is scheduled for Friday, December 5, 6 a.m. to 6 p.m., at
locations throughout Houston. The Houston Apartment
Association is participating and needs your help with our Food
Drive starting November 1. We would like to get as many
apartment properties as possible to collect food.
If your property or management company plans to collect
food during the holiday season, why not work with HAA and
help us make the largest contribution from any local organization? Let’s show the community the generosity of the apartment industry.
Here are ideas on how to collect food successfully on site:
• Set up a collection box at the leasing office. The Houston
Food Bank will provide you with a collection box, or you can
decorate your own box.
• Place a flier at each resident’s door or in your newsletter to
announce that you will be collecting food during November.
• Visit your local grocery store and ask for a supply of paper
bags. Explain to the manager that they will be used to collect
food for the Houston Food Bank. (They should give bags to you
ABODE IS THE OFFICIAL
PUBLICATION OF THE HOUSTON
APARTMENT ASSOCIATION.
Serving the multihousing industry in
Austin, Brazoria, Chambers, Colorado,
Fort Bend, Harris, Liberty, Matagorda,
Montgomery, San Jacinto, Waller
and Wharton counties.
ABODE, NOVEMBER 2008,
VOLUME 31, ISSUE 11
ABODE is published monthly by the
Houston Multi Housing Corporation.
Publishing, editorial and advertising
offices are located at 4810 Westway
Park Blvd., Houston, Texas 77041.
Telephone 713-595-0300. The $50
annual ABODE subscription rate is
included in all member dues and
additional subscriptions are available.
The annual subscription rate is $50 for
members, $65 for non-members.
Advertising rates are available upon
request. Contributed material does not
necessarily reflect the views and opinions of the Houston Apartment
Association. Copyright © 2008 by HAA.
Application to Mail at Periodicals
Postage Rates is Pending at
Houston, Texas.
POSTMASTER: Send address changes
to ABODE, 4810 Westway Park Blvd.,
Houston, Texas 77041.
76
OCTOBER 2008
ABODE
free of charge.) Place a bag outside the door of each apartment
asking that the resident fill the bag with non-perishable foods.
Indicate when you will be returning to pick up the bag and to
place it outside the door.
• Place a flier in mailbox areas announcing the food drive and
when the bags will be picked up.
The following drop-off locations will collect food. Please drop
off donations by Tuesday, December 2:
• Certified Recovery Systems Inc, 6161 Savoy #600, Houston,
Texas 77036
• CityView Place Apartments, 16818 City View, Houston, Texas
77060-2503
• HAA Offices, 4810 Westway Park Blvd. Houston Texas 77041
• Camp Construction Services, 1333 Almeda Genoa Rd
Houston, Texas 77047-4209
Last year HAA members and residents collected 50,000
pounds of food and more than $1,800.
Please contact Susan Hinkley to participate or to
ask for additional information at 713-595-0313 or
shinkley@haaonline.org.
Houston Apartment Association
4810 Westway Park Blvd.
Houston, Texas 77041
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