Apartment News October/November 2014 by LOCALiQ

The official publication of the Arizona Multihousing Association

NEWS

BUILDING A LEVEL PLAYING FIELD TACKLING THE PROPERTY TAX DISPARITY FOR NEW CONSTRUCTION

ECONOMIC DEVELOPMENT Perspectives and projections BEST PRACTICES Native American Connections

OCTOBER/NOVEMBER 2014

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PRESIDENT’S LETTER

Partnerships provide AMA members with unique benefits

here are no summer doldrums at the AMA. Instead, we are in aggressive planning mode for our busiest season and working with the Board to set the agenda for the year. Our Association is fortunate to have an engaged and committed board of directors who spent almost two full days in their annual board retreat reviewing our Association outcomes and planning for the next year. Our team’s efforts to secure affinity partnerships for AMA members creates significant savings and earning opportunities for companies who take advantage of these programs. The board must approve all new partnerships and programs to ensure they meet approved guidelines and goals. Programs such as Blue Cross Blue Shield Resident Insurance, Copper Point Mutual Worker Compensation Insurance, Skipton & Associates Property Loss/Claims Adjustment services, and others are managed to benefit AMA’s members. I strongly encourage all of our members to take part in these benefit programs!

Growth for the future – ensuring sustainable financial success At the AMA we also work diligently to plan for the future success of our industry across Arizona. This is why we have received a grant from the NAA to review fundraising activities and goals to maximize the potential of the

Arizona Multihousing Association Political Action Committee (AMAPAC) and our Legal/Initiative Mobilization Fund (LIMF). A national expert is currently interviewing members, and will develop a long-term, sustainable plan to grow our financial reserves for both funds. The stronger AMAPAC is, the stronger the voice of our industry is at the state legislature and in Arizona cities and towns. In the coming months, keep an eye out for new opportunities to engage with AMAPAC and LIMF to be part of ensuring that our industry continues to thrive in Arizona.

Industry engagement – celebrating a successful year It’s been a great year so far at the AMA — from our victories at the legislature this year to exciting events like Phoenix and Tucson Trade Shows, Tributes, Phoenix and Tucson Reverse Trade Shows, Perspectives & Projections, and others! We also have a lot to look forward to in the coming months, and I hope you will continue to engage in the great events our members have planned for you like the Phoenix Golf Tournament, Maintenance Mania in Phoenix and Tucson, and the year-end party at the Palomar Hotel in downtown Phoenix.

— Tom Simplot, President and CEO, Arizona Multihousing Association

www.azama.org

Apartment News > October/November 2014

LETTER FROM THE CHAIR

Members make the difference for successful AMA events

oming out of a busy summer, I am full of gratitude and pride for the work that our members do on behalf of our industry and the greater community. The NAA Government Affairs Roundtable hosted in Phoenix, thanks to our advocate Courtney LeVinus, offered our association an opportunity to demonstrate the strength and impact of the AMA in our market. Courtney even arranged for a Skype meeting with Congressman Kyrsten Sinema which offered the attendees a unique opportunity for interaction with a congressional leader in a focused setting. Through these discussions with national government affairs leaders, we are looking forward to staying at the forefront of issues that impact the multifamily industry and working toward change as needed. We will hear more about the music licensing issue in the near future as this was an important topic covered at this gathering. Thanks to our volunteer chair people and committee members, we have executed a number of signature events already this season. P&P, our annual economic outlook, was a rousing success thanks to Lesa LaRocca’s leadership as chair of the event. This year’s panels were engaging and informative at an important time in our economic

cycle. It’s critical that investors and operators understand the underlying demographics of the Valley and the economic diversity of the employment coming to Phoenix as we plan new communities and make investments. For those of you who were not in attendance at the Tucson Trade Show, you missed the most inspiring and surprising day thanks to Linda Morales and Stacy Weaver, the co-chairs of the event. They worked with our AMA Tucson team to develop a new flow for the Tradeshow floor for the day and the speaker this year was hysterical and a huge hit with the crowd! Thanks to you all for your creativity and flawless production. The AMA’s Lyceum program is preparing to graduate 23 new leaders. So many of our members and the AMA staff have invested in making this program a success and working to develop this next generation of leaders for our industry. Now, this cohort is working on their community service project to support our nonprofit partners UMOM and Our Family Services following their completion of coursework. Special thanks to Amy Smith for her training with the session on personality profiles. November marks the launch of our Big Hearts campaigns in Phoenix and Tucson. Thanks to Kwik Tow for their generous donation of a 1971 Mustang GT for the raffle and thanks to our members who work to support this program! — Kimberly K. Fitch, AMA Board Chair, Nicolosi & Fitch

ENJOY ALL OF THE BENEFITS OF AMA MEMBERSHIP - CALL AMY AT 602-296-6209 TO JOIN TODAY. 4

Apartment News > October/November 2014

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TABLE OF CONTENTS

Apartment News > October/November 2014 > www.azama.org

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Tackling the property tax disparity on new multi-housing construction.

16 A look ahead

Perspectives and Projections: Urban access, millennials to fuel growth in multi-housing industry.

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Residential

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AMA Main Office 818 N. 1st St., Phoenix, AZ 85004; 602-296-6200; Fax:602-296-6178 AMA Tucson Office 660 S. Country Club Road, Tucson, AZ 85716; 520-323-0643; Fax: 520-323-3399

AMA STAFF Tom Simplot President & CEO tsimplot@azama.org James Tunnell Vice President jtunnell@azama.org 602-296-6212 Erika Kowalski Director of Operations ekowalski@azama.org 602-296-6210 Michelle Rill Manager of Major Events mrill@azama.org 602-296-6205

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Robert Schmitz Manager of Community Outreach & Education rschmitz@azama.org 602-296-6204 Alec Thomson Government Affairs Analyst athomson@azama.org 602-296-6214

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AMA TUCSON STAFF Desi Brinkman Operations & Membership Coordinator dbrinkman@azama.org 602-296-6203

Gretchen Hawkins Tucson Events Consultant ghawkins@azama.org 520-323-0643

Stephanie Garcia Community Outreach & Education Coordinator sgarcia@azama.org 602-296-6208

Cathy Wagner Tucson Member Consultant cwagner@azama.org 520-323-0643

Amy Hindenlang Membership Administrator ahindenlang@azama.org 602-296-6209 Kyle Simplot Accounting Assistant kyles@azama.org 602-296-6207

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AMA NEWS & HAPPENINGS

MEB Management Services expansions and promotions MEB, one of the Southwest’s largest providers of multi-family fee management services, continues to grow and has promoted several of their key executives. The recent addition of 3,271 apartment homes to their current portfolio provided MEB the opportunity to promote several of their key executives: 1. Mike Kienest, Vice President 1 of Operations; 2. Dalia Bureker, Assistant Director of Operations; 3. Sharon Beck, Regional Asset Director and 4. Luz Bruscini, Senior Asset Director. 2 Mark Schilling, a MEB owner, said “A portion of our recent acquisitions, have been a result of clients that have moved their portfolio to MEB, to help increase the value of 3 their properties. We also have seen current clients purchase properties, and MEB has expanded our footprint in New Mexico along with Northern Arizona.” MEB client David Liu of 4 Standard Portfolios LLC stated, “We would highly recommend MEB as a true Value Creator to anyone looking for a highly competent Management Company.” Look for the MEB footprint to expand in other Southwest Regional market soon. With corporate offices located in Phoenix, Tucson, and Flagstaff, MEB’s team member of 600+ real estate professionals provide comprehensive coverage throughout Arizona and parts of the Southwest.

Apartment News > October/November 2014

Barrister Place

PB Bell and Davis Enterprises selected to redevelop historic ‘Psycho’ building The City of Phoenix recently selected P.B. Bell Companies and Davis Enterprises, an investment and development company, to redevelop the historic Barrister Place building in downtown Phoenix. City officials chose the P.B. Bell Companies/Davis Enterprises collaboration from among seven bidders seeking to redevelop Barrister Place and two adjacent parcels on the southeast corner of Central Avenue and Jefferson Street. The collaborators’ plans call for an adaptive-reuse renovation effort that centers on creating and operating a boutique mixed-use community on the site. Special emphasis will be placed on preserving the building’s historic façade while modernizing the interior to carry it, and the accompanying development, into the future. Originally opened in 1915 as the Jefferson Hotel, the six-story, concreteand-brick Barrister Place once was hailed as the state’s tallest building. The building’s most famous role was a cameo shot in the opening scene of Alfred Hitchcock’s 1960 classic horror film, “Psycho.”

Allison-Shelton opens an office in Florida and expands its portfolio Allison-Shelton Real Estate Services recently announced that it will open a regional office in Tampa, Florida to manage the company’s growing portfolio in the southeast area. They recently added two new properties in Plantation, Florida, Victoria Landing and Hunters Ridge, managed on behalf of Mercury Investments. Founded in 1984, the Arizona based company currently manages a portfolio in excess of 16,000 units on behalf of a variety of institutional and private equity clients.

MC Residential raises the gay pride flags in Tucson Five of MC Residential properties will support Tucson’s Gay Pride Week (October 11-18) by raising the gay pride flags at their Tucson apartment communities. The company boasts a strong social media following with their MCLife multifamily brand and will be using those channels to share their support of the equality movement.

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LEGISLATIVE UPDATE

Protecting fairness Arizona Supreme Court rejects introduction of “delay” in eviction cases BY PAUL A. HENDERSON, ESQ.

esidential property management is governed by a number of statutes, rules, and administrative regulations. During your normal business operations, you are likely aware that most of your actions are governed by these restrictions, but you likely don’t consciously consider which statute affects your current task. When you are considering the worst-case scenarios of managing your residents — the eviction process — the seemingly silent policies that play a significant role in how your case proceeds are called the Rules of Procedure for Eviction Actions (“RPEA”). The Arizona Multihousing Association recently helped advance the prevailing arguments in an effort to defeat a seemingly minor alteration of those Rules that would have had a major impact on eviction cases. There are times when petitions to alter a set of rules are filed with fanfare; other times, petitions are filed and little attention is paid to them. On October 25, 2013, the latter occurred with the Legal Services Committee of the State Bar of Arizona submitted a petition to include a provision in the RPEA to allow for “by right” challenges to the Justice of the Peace assigned to hear an eviction action. In order to understand the significance of this filing, you need a little background: Every litigant has the right to file a challenge against the assigned judge if the litigant believes that the litigant cannot obtain a fair trial before that judge. In the Justice Courts, it’s enshrined in our laws at A.R.S. § 22-204 (note: precincts and Justices of the Peace are inseparable, as the J.P. is elected to serve as the sole judge for that precinct). These are “for cause” challenges. Until 2009, eviction actions were governed by the Arizona Rules of

Apartment News > October/November 2014

Civil Procedure (“ARCP”). Under Rule 42(f), ARCP, litigants had the opportunity to change the assigned judge once for whatever reason the litigant selected (even something as banal as “I don’t want a judge who wears a bow tie”). This is a “by right” or “peremptory” challenge. The committee that drafted the proposed RPEA debated including a “by right” change of judge rule. The original draft included it; the Supreme Court rejected that provision. During the final evaluation of the RPEA, the Supreme Court reconsidered that “by right” change rule but again refused to include it. The RPEA was adopted in 2008 and went into effect on January 1, 2009. The ARCP, except for limited circumstances, no longer applied to eviction actions as of that date. The AMA adopted a neutral approach to the RPEA as a whole; attorney members of the committee who had positive relationships with the AMA sought to neutralize the worst of the pro-tenant proposals. Similarly to the AMA’s ethics code and the requirements placed upon its members, the RPEA can help improve the eviction process. However, other groups do not share our equanimity. As I mentioned above, the State Bar filed a petition to amend the RPEA to include “by right” challenges. Tenant-biased groups (interestingly enough, not including the AAMHO) supported the change, while the AMA, its sister organization the MHCA, and the Committee on Limited Jurisdiction Courts (the very Justice Courts where nearly all eviction cases are heard) opposed it. We argued that such a change was unnecessary as the introduction of “by right” challenges would serve only as tools for delay. The most important thing to consider about a “by right” challenge is that it can be filed at any time (whereas the “for cause” challenge usually is subject to documentation and a response period). While nineteen of the twenty-six Justice Courts in Maricopa County and eight of the ten www.azama.org

LEGISLATIVE UPDATE

Justice Courts in Pima County are co-located or consolidated (i.e., sites exist where four or more Justice Courts are located), all others in our State are stand-alone courts. If a â&#x20AC;&#x153;by rightâ&#x20AC;? challenge is filed, the stand-alone courts will need to arrange for a new judge to handle the case. Unlike in the co-located or consolidated courts, where there are other judges available to take the case that same day, the stand-alone courts would be forced to delay the proceeding in order to have that new judge take the case. For eviction cases, delays in adjudication directly result in harm for landlords. The original petition to change the RPEA even referenced the opportunity to delay, and the comments in support tried to hide that delay was the root desire for this change. The AMA felt sufficiently strongly about the delay issue that it authorized a comment in opposition on its behalf.

We prepared it and filed it with the Supreme Court. Thankfully, the Justices of our high court must have agreed with us, because on September 3, 2014 the petition was denied. The AMA never rests to make sure that its members have the opportunities to enjoy and utilize their assets. While the Association doesnâ&#x20AC;&#x2122;t try to tilt the field so that the rules are inappropriately biased in favor of the landlords and property owners, it strives to protect its members so that laws and rules arenâ&#x20AC;&#x2122;t shifted unfavorably or impose undue burdens. Should you discover that a new proposed rule or statute will harm this industry, please alert your AMA contact immediately â&#x20AC;&#x201D; and be certain that if it is harmful, the AMA will try its best to make sure that the industry remains friendly not only to renters, but also to those who offer the properties for rent.

Paul A. Henderson is an attorney with the Law Offices of Scott M. Clark, P.C.. He can be reached at 602-957-7877.

The views expressed here are generalized advice or information. Fact-specific questions should always be referred to legal counsel. Statements and opinions expressed in these legal columns are solely those of the author or authors. This advice does not necessarily represent the views or opinions of the Arizona Multihousing Association.

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BUILDING AYI N G F I E LD

A LE V E L P L Tackling the property tax disparity for new construction

Apartment News > October/November 2014

www.azama.org

By Hadar Avraham, Esq., Snell & Wilmer he past decade has been a roller coaster in the Arizona real estate market. We experienced drastic increases in values, followed by a crash that wreaked havoc throughout the industry, and we’re now experiencing a recovery that is finally starting to balance things out. The multi-family housing (MFH) segment has led the current recovery of the real estate market overall, especially within Maricopa County. But as market values have rebounded, newly constructed MFH projects have been plagued by property tax valuations that seem to have punished these new developments.

High valuations Here, we’ll explore what caused these comparatively high valuations for new projects, what the Maricopa County Assessor has done to mitigate the imbalance, and what remains to be done to level the playing field. As background, Arizona’s property tax has been based on two separate property values. The secondary/full cash value (“FCV”) is intended to be a reflection of fair market value and is not limited in the amount it can increase from one year to the next. The primary/limited property value (“LPV”) is a formulaic value that is limited in the amount it can increase from one year to the next, and it cannot exceed the FCV. As explained below, the ratio of the LPV to the FCV plays an important role in calculating property taxes in Arizona, especially for new projects. And beginning with the 2015 tax year, when Proposition 117 kicks in and the Arizona property tax will be based solely on the LPV,1 this ratio becomes even more critical.

different for these two values. The calculation formula for determining LPV for newly constructed MFH projects caused a wide disparity between the LPVs for new projects compared to the LPVs for existing projects. For new construction, the LPV formula calls for the Assessor to review the ratio between FCV and the LPV for all similarly-situated properties (the so-called “Rule B Ratio”). The Assessor then applies the Rule B Ratio to the FCV of each similar newly constructed property to determine the LPV for such property. For example, if the average LPV for existing owner-occupied primary residences is 95% of the average FCV for such residences, then the Assessor will use an LPV that is 95% of the FCV for each newly constructed owner-occupied primary residence.

Property classification The LPV problem for the MFH industry resulted from the fact that the property classification that includes MFH property – Class 4 – also includes all single-family residential rental and REO properties. For all Class 4 properties other than MFH projects, the LPV was essentially the same as the FCV. This caused the LPV for new MFH projects to be 99% of the FCV for the 2013 tax year, based on the Class 4 Rule B Ratio. After meeting with the AMA, developers and attorneys in the industry, the Maricopa County Assessor stepped up to the plate by segregating the MFH properties from the rest of Class 4 before calculating the Rule B Ratio for new MFH projects. This resulted in a reduction of the LPV from 99% to 92% of FCV in 2013, with further reductions to 84%-85% for 2014, and to 78% for 2015. The Assessor’s efforts with the Rule B Ratio adjustments are much appreciated and have mitigated a fair amount of the problem, but there is more to do on the FCV front. For FCV, the valuation issue has two components. First, CONTINUED ON PAGE 15 >

Competitive disadvantage The problem for developers of MHF properties is clear. Historically, the average per-door property tax valuations for new Class A MFH projects had been about $90,000 per door, yet the average values increased significantly for new projects starting with the 2013 tax year, coming in at about $135,000+ per door. And to compound the problem, the Proposition 117 changes will perpetuate for many years the value differential between new projects and similar projects built only a year or two earlier. The result, of course, is higher property taxes than anticipated and also when compared to the property taxes of similar existing projects, thus creating a competitive disadvantage for these new projects. This new construction valuation quagmire involves both the FCV and the LPV, though the factors at play are very

www.azama.org

Apartment News > October/November 2014

PROP. 117 What it Means for Your Property Tax Bill By Craig R. McPike, Esq., Snell & Wilmer L.L.P. In 2012, Arizona voters approved Proposition 117, also known as the Arizona Property Tax Assessed Valuation Amendment. The provision amended the state constitution’s valuation method for determining the property taxes for most properties. These changes take effect for the 2015 property tax year. Prop. 117 makes two significant changes to the property tax system. First, it imposes a cap on a property’s assessed value to avoid increases of more than 5% from the previous year’s value, subject to certain exceptions. Before Prop. 117, a cap existed but it varied and it was at

least twice as high as this new 5% cap. The capped value continues to be called the Limited Property Value, and it still does not apply to properties with new construction or substantial renovations for the year after completion, or to property owned by utilities or personal property. Second, Prop. 117 eliminates Arizona’s two-pronged property tax assessment structure. Under the current (old) structure, taxes for certain purposes (such as voterapproved bonds) are based on a value intended to reflect fair market value (Full Cash Value), and taxes for other purposes (such as school districts) are based on the capped Limited Property Value. For 2015, only the Limited Property Value will be used to compute the property tax bill for all properties other than the exceptions to the cap mentioned above.

Importantly, with the passage of Prop. 117, Arizona will impose a cap on the assessed value, but whether there is any effect on property taxes themselves is yet to be seen. Arizona’s property tax cycle allows tax rates to be established based on budgetary needs for the tax year. Taxing authorities do not finalize these rates, however, until long after the assessor releases assessed property valuations, as the total assessed value of all properties in a particular jurisdiction is used together with the budgetary need to determine the tax rate for such jurisdiction. So even though a cap on assessed value exists, there is no cap on the tax rates. As a result, taxpayers may not see any reduction

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in, or cap on, their property tax bill. The 5% cap has already been applied to the notices of value issued in 2014 for tax year 2015. Given these significant changes to the property tax system, property owners and managers should review their property value and consult with a property tax professional if they think a property has been overvalued — a valuation appeal of the 2015 tax year valuation may still be possible, and the benefits of any reduction may reap benefits for years to come. Craig McPike’s practice includes federal, state and local tax matters, including taxation of for-profit and non-profit business organizations. His practice is concentrated in tax-exempt organizations, and state and local tax matters. Craig is the founder and chair of the firm’s Nonprofit Industry Group. He is a partner at Snell & Wilmer and can be reached at 602.382.6538 or cmcpike@swlaw.com.

the value of a new project is based on projected cost of construction, while the value of an existing project is based primarily on a market-based projection of income for the project. This first component is similar to the LPV issue, in that the valuation methodology is different for new projects compared to existing projects. Second, the Assessor has relatively limited information about each project being valued. As a result, this component often causes significant differences between the FCV of one new project and the FCV of another new project, where the projects are otherwise very similar. And although the LPV will soon be the only value used to calculate a property’s tax bill, the FCV is critical because it is the basis for determining a new project’s LPV.

Resolving the issues The bottom line is that, while the Maricopa County Assessor took action to resolve the Rule B Ratio issue for calculating LPV for new projects — a

welcome effort, indeed — the method to calculate a new project’s FCV in the first place is far from perfect. As a result, it is important to review property tax valuation notices carefully and evaluate whether a protest is warranted. And because fluctuations in FCV can create winners and losers among competitive developers, even when a loser cannot justify a reduction in value based on the market, the developer industry as a whole may want to consider how it could help the Assessor improve the objectivity of new MFH project valuations or pursue a legislative fix. Hadar Avraham practices state and local tax law with a focus on property tax counseling and litigation matters in Arizona and Nevada. She represents clients in administrative tribunals, superior court and appellate matters. She can be reached at 602.382.6271 or havraham@swlaw.com 1 See Prop. 117 – What it Means for Your Property Tax Bill.

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A LOOK

AHEAD

FROM P&P: URBAN ACCESS, MILLENNIALS TO FUEL GROWTH IN MULTI-FAMILY INDUSTRY

etting in to the mind of the institutional and local investor offered the attendees of the AMA’s annual Perspectives and Projections a point of view to consider for their own operations. The 30,000-foot perspective on investments in the Valley, and a look ahead to economic development, gave this year’s attendees a front row seat on how multifamily investors and builders could take advantage of the improving growth in the region. Jack Hannum of Transwestern responded to an audience member question about the potential for another real estate bubble. While he was doubtful the market would see a bubble in multifamily, he questioned how deep the pool could be for $2/per foot rentals in Phoenix. . CBRE’s Tyler Anderson reminded the audience that transplants from the west coast may be more accustomed to these rent levels and paying a higher percentage of their income in rent. “So far it’s (the response in the market) been very positive on the delivery of units. Some are stating that they can’t keep up with demand,” Anderson commented.

One key factor that operators keep their eye on is concessions and this prompted another audience question. “Just say no,” was Charles Steele’s remark. Steele, of Jones Lang LaSalle, doesn’t believe they have to come back because rents are where they should be. Single family homes and the so called “shadow market” of rentals continues to be a topic within the multifamily industry. The P&P panelists agreed that as long as the yield on these rentals continued to be strong for the institutional investors and portfolio managers, they will be hold on to the investments. Panelists agreed

Apartment News > October/November 2014

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that fact that more of these rental homes are professionally managed benefits the market as well. This year one of the P&P panels examined the strength and resilience of the Arizona economy and how it might draw additional employment and thus grow the population base here. The Arizona Commerce Authority’s Kevin Sullivan explained how Arizona has implemented really strong incentives to make us globally competitive for employment. The ACA’s goal last year was to add 13,000 new high paying positions and they exceeded that goal with more than 17,000 created. In addition to those new jobs, Arizona will see more than $3.5 billion in capital expenditures, including constriction, creating multiplier jobs and impact to the economy. Favorite local economist Elliot Pollack reviewed the net migration numbers that were not as strong as many would like, but the work of the Commerce Authority, cities and organizations like GPEC should help to add jobs and bring new people to Arizona to fill these positions. Arizona’s growth patterns are finally seeing a shift as a result of the most recent recession, said Steve Betts of Chanen

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Development. “We were the fastest growing region for 50 years and now we have to think about how and why we are growing,” he remarked. Instead of heading to far reaches of the Valley to develop homes, builders are responding to the market and lifestyle demand of younger workers who want to live in more walkable and accessible communities. Betts explained that if we are trying to attract workers from high tech industries, in particular from California, they want places that are connected. They want urban centers where they can see their friends, get connected to work and culture through accessible transportation. The formation of households for millennials tends to be a bit later in life and this fact has also impacted the housing market as fewer are purchasing homes and instead renting longer. Boomers and move down buyers may be another opportunity for the multifamily industry. Those who are looking to scale back working or move closer to family and friends could be ready for a smaller place and even rentals. Matthew Croucher, APS’ Chief Economist, predicted that Arizona’s economy would return to normal growth but it will still take a couple of years.

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CHANGING THE GAME IN TUCSON By Cathy “Catt” Wagner & Gretchen Hawkins, AMA Tucson staff One very disruptive “waiter” changed the tone of Tucson’s annual Education Conference and Tradeshow sponsored by Koglmeier Law Group. Rick Lewis, of Break A RuleEngage Like a Pro, used his training as a performer and comedian to captivate and delight all. Once Rick had shed his waiter uniform, sponsor Rich Hallock of The Greenspan Company/Adjusters International, officially welcomed the surprise keynote speaker. Rick challenged the audience to consider how the rules of our culture govern so much

of our lives, and to consider intelligent misbehavior as the foundation of personal and organizational success. Thank you to Tradeshow Co-Chairs Stacy Weaver of Coinmach/MacGray, Linda Morales of Sabino Apartments and the entire Tradeshow committee for their hard work. The Tradeshow After Party at Zen Rock Night Club was sponsored by Redi Carpet and Tucson Apartment Guide. Continued support by sponsors Koglmeier Law Group, The Greenspan Company/

Adjusters International, Valley Protective Services, Redi Carpet-Tucson, Apartment Guide, For Rent Media Solutions, Ferguson Enterprises, Wash Laundry, Coinmach/MacGray Laundry and Distinctive Carpets is greatly appreciated!

More than 400 AMA members packed the floor to explore more than 80 Associate member booths. Event winners include: >> Most Interactive Booth Award: Distinctive Carpets and For Rent Media Solutions >> Best Use Of Theme: Valley Protective Services and Ferguson Enterprises >> Best Costumes Award: Redi Carpet >> AMCF-Tucson Big Hearts raffle: $1,000 cash Grand Prize: Bere Parra of Mission Sierra Apartments (Nicolosi & Fitch); Trip certificate winner: Stephanie Venters of The Colony Apartments (Allison-Shelton)

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AMA Teams and charities win at annual Bowl-A-Thon The 2014 AMCF Bowl-A-Thon was another success! With the hard work of the committee and tremendous support from our sponsors, this event raised nearly $26,000 for local Arizona charities! High socks and jerseys were seen in every direction while attendees went all out with the “Sports” theme this year. The Silent Auction was a huge hit with donations ranging from a sky diving trip to a helicopter ride over Sedona; a fishing trip and even a family pack of tickets to a Diamondbacks game! The 1971 Mustang Convertible, this year’s donated car for the annual AMCF raffle, was parked front and center for participants to catch a glimpse on their way into the lanes thanks to Kwik Tow. At the alley that day alone, $750 worth of raffle tickets were sold – we are off to a great start! To assist in raffle ticket sales, raffle tickets are available online at www.1971mustangraffle.com. Thanks again to all who donated to the silent auction, participated on the lanes, and sponsored this wonderful event! See you in 2015! — Rob Schmitz, AMA

PHOENIX Maintenance Mania & Housekeeper’s Challenge Thursday, November 20, 2014, 7:30am—5:00pm Phoenix Convention Center, South Building, Phoenix

TUCSON Maintenance Mania & Housekeeper’s Challenge Thursday, November 6, 2014, 8:00am—5:00pm Doubletree Hotel, 445 S Alvernon Way, Tucson

For More Information, Please Visit: www.azama.org

Lower Energy Bills for You and Your Residents Get free energy-saving products for each living unit in your multifamily property! The APS Multifamily Energy Efficiency Program (MEEP) offers free energy-saving ﬁxtures like CFL bulbs, low-ﬂow showerheads and faucet aerators to existing multifamily communities. MEEP also helps you save energy and money in the common areas within your facility, such as clubhouses, offices, laundry facilities, pools and vending areas. Energy efficiency upgrades made to just a few areas can yield big energy savings. Save energy and money with MEEP. Get started today. Visit aps.com/mf or call (866) 727-1097. Program funded by APS customers and approved by the Arizona Corporation Commission.

EVENTS & EDUCATION STAY UPDATED AT AZAMA.ORG

- Valley Events AMA/COX COMMUNICATIONS PHOENIX PAR TEE GOLF TOURNAMENT October 24, 7 a.m.-2 p.m. Starfire Golf Club, 11500 N. Hayden Road, Scottsdale Award Party Only: $40 (Associate Members) Sponsorships Available.

PHOENIX MAINTENANCE MANIA & EDUCATION CONFERENCE November 20, 7:30 a.m.-3 p.m. Phoenix Convention Center, South Building, South Ballroom, 100 N. 3rd Street, Phoenix, AZ 85004 Maintenance Mania® is a national competition where maintenance professionals are able to compete against each other in various

skill-based games. The games are focused on frequent maintenance issues, plus a racecar building competition! Register online at www.azama.org!

AMA INDUSTRY PARTNER HOLIDAY HAPPY HOUR December 11, 5 p.m. Hotel Palomar Phoenix, 2 E. Jefferson St., Phoenix Join AMA industry partners for their annual Holiday Happy Hour. Regular and Associate members celebrate the holidays and the end of the year with AMA Board of Directors and members.

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EVENTS TUCSON DINNER MEETING October 23, 8 a.m. - 5p.m. Hilton El Conquistador Golf and Tennis Resort (NOT the Country Club), 10000 N Oracle Road in Tucson $49 members, $69 Non-members. Join us and get your update on everything new at the Arizona Multihousing Association! Recognitions of Lyceum program graduates and more!

TUCSON ASSOCIATE MEMBER COUNCIL MEETING October 28, 3 - 4:30 p.m. The Villas at San Dorado, 10730 N. Oracle Rd., Oro Valley, AZ 85737 Register with Gretchen Hawkins at ghawkins@azama.org

TUCSON MAINTENANCE MANIA November 6, 8 a.m.-5 p.m. DoubleTree Hotel, 445 S Alvernon Way in Tucson

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AMCF TUCSON – BIG HEARTS CAMPAIGN CLOSING PARTY November 21, 5-8 p.m. O’Malley’s Bar and Grill, 247 N. 4th Ave. in Tucson Saturday Night Live theme, dress up as your favorite SNL character.

EL TOUR DE TUCSON - AMCF TUCSON FUNDRAISING GROUP November 22, All day Conditioning/training days scheduled. For details check out the AMCF Tucson - El Tour de Tucson Fund Raising Group facebook page, or email Lisa Rosenfeld at lisa@hslproperties.com or Mike Rochon at mike@dciaz.com.

TUCSON IROC MEETING December 12, 11 a.m. - 1 p.m. Email Gretchen Hawkins at ghawkins@azama.org to register.

October 21, 9 a.m. - 12 p.m. AMA Tucson Office, 660 S. Country Club Road in Tucson $29 members, $49 Non-members Tucson Continuing Education Program. This seminar will introduce positive ways to resolved conflicts and deal with difficult people and situations through increased understanding increased group cohesion and improved serf-knowledge. This class will be taught by Catherine Tomborm, Program Manager of the Center for Community Dialogue in cooperation with Our Family Services.

ARIZONA LANDLORD TENANT LAW December 16, 9 a.m. – 12 p.m. $29 members, $49 Non-members Tucson Continuing Education. Knowing how to use and comply with state law that governs all rental housing operation can save time, make you money and minimize legal difficulties. This is a must for any property owner, community manager and leasing agent. You’ll review the revised law, which outlines the rights and responsibilities for both landlords and renters. Time will be allotted for audience questions and comments. *Attendees will earn 3 hours CEC’s for all NAA Designations; Real Estate Credits Pending* BioPet

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Q &A

Affordable housing: Dede Yazzie Devine, Native American Connections

ousing is the foundation for the creation of Native American Connections. NAC has developed, owns and manages 500 units of income based and affordable housing for families and individuals. Their work in Permanent Supportive Housing for homeless individuals in Phoenix has earned national recognition and awards. This year, Native American Connections was selected as the Small Business Community Champion winner for the 2014 Greater Phoenix Chamber of Commerce Impact Awards. Diana “Dede” Yazzie Devine has been working within Native American urban and tribal entities since 1972 and has served as the CEO of Native American Connections (NAC) since 1979.

Q: Native American Connections brings a unique perspective to affordable housing. What operational differences do you see from traditional multifamily housing? When Native American Connections approaches the development of an affordable housing community, we bring our development team together with our stakeholders to thoroughly understand who we will be housing and their needs. The NAC internal team includes our developer, property management, finance, compliance, and resident services. The external team is the architect,

contractor, legal, financial partners, nonprofit services providers, neighborhood associations, and most important, the community we will be serving. Therefore, we are all designing specifically for the families and individuals who will be living in our housing communities. There is a focus on high quality, sustainable construction so that the long term operations costs both to NAC and to the resident are affordable.

Q: What are the key attributes that you look for when you are developing multifamily housing? Native American Connections has been providing services in the Valley for over 40 years and strategically decided to concentrate our efforts in Central Phoenix along major transportation corridors, light rail, and near amenities that are essential for family stability in low-income families and individuals. Therefore, we are looking for infill properties that are have close proximity to schools, grocery stores, bank and other shopping, parks and open space, healthcare and other service supports, and social and entertainment activities. Families that can live and work in close proximity have more time and access to be involved with their children’s activities and save significant costs on transportation.

Q: How has NAC housing impacted the local communities where they operate? Native American Connections focuses on infill urban development. So many times

Apartment News > October/November 2014

we are looking for blighted properties that can have a secondary purpose of bringing new economic development opportunities to that neighborhood by either significantly improving the existing buildings or by new construction that improves the property values within the neighborhood. NAC has a development standard of meeting the minimum LEED Certification requirements and two of our more recent developments are LEED Platinum Certified — significantly lowering our residents’ utility costs and allowing for more of their income available for financial stability of the family. Native American Connections houses families with incomes that range from $15-$45,000 per year charging rents that average $200 - $600 per month.

Q: NAC offers supportive services and connections to offsite programs. What NAC services would you like to see in traditional multifamily communities? Native American Connections partners with several financial institutions who provide financial literacy and budgeting education for our families that support financial and housing stability of our residents. In the fall, NAC hosts back to school fairs that assists with school supplies, clothing and required vaccinations. We partner with other nonprofit organizations to provide afterschool tutoring, summer camps and programs, and kids café to make sure children have meals and snacks during the summer. www.azama.org

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FOR FOR MORE MORE INFORMATION INFORMATIONON ONHOW HOWTO TOBECOME BECOMEAAPATRON PATRONMEMBER MEMBER OF AMA, PLEASE CONTACT JAMES TUNNELL OF AMA, PLEASE CONTACT JAMES TUNNELL BY BY PHONE PHONE AT AT 602-296-6212 602-296-6212OR ORBY BYEMAIL EMAILATATJTUNNELL@AZAMA.ORG JTUNNELL@AZAMA.ORG