APARTMENT NEWS
JANUARY/ FEBRUARY 2020
The official publication of the Arizona Multihousing Association
AMA 2020:
New board, bold outlook
New board chair
Board Chair Kim Pacheco envisions big year for AMA
Pages 3
Legislative look-ahead
What bills affecting industry in 2020 will Legislature take up?
Page 8
Construction boom
Arizona’s apartment construction boom not slowing down
Page 10
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Looking ahead to a memorable year
818 N. 1st St., Phoenix, AZ 85004 phone: 602-296-6200 fax: 602-296-6178 web: azmultihousing.org
I am very honored to serve as the 2020 Chair of the Multihousing Association Board of Directors. This is AMA’s 53rd year and we are
2020 AMA BOARD OF DIRECTORS
larger and stronger than ever. We are starting 2020 with more than
EXECUTIVE COMMITTEE Chair, Kim Pacheco Scotia Group Management
288,000 units in membership, almost 90,000 more than 10 years ago.
April Morris Cox Communications Gloria Munoz Maricopa County Housing
We continue to grow.
Vice Chair, Reid Butler Butler Housing Company
Lisa Osborn-Warne Priderock Capital Partners
Our organization has had so many
Treasurer, Scott Hines PEM Real Estate Group
Rich Renta Weidner Apartment Homes
Secretary, Linda Coburn NexMetro Development
John Rials Western Wealth Capital
throughout the last 52 years; all have
Imm. Past Chair, John Carlson Mark-Taylor Residential
Lisa Rosenfeld HSL Asset Management
helped and contributed to our cur-
AMC Exec., Sue Campbell Redi Carpet
Mark Schilling MEB Management Services
great leaders, volunteers, associate member partners and employees
rent success. I would like to person-
Tina Schreiber Alliance Residential Company
ally thank all of the people that have BOARD OF DIRECTORS Elizabeth Beaulieu Quarterpenny Management
added so much to the AMA, both past and present.
Kim Pacheco AMA Board Chair
I believe that 2020 is going to be a
Krisanne Beckstead Picerne Real Estate Group Lesley Brice MC Residential
year to remember in AMA’s history. This year we will be focused on our goal to raise $1 million for our
Dahnn Brown Camden Property Trust
Better Government Fund. This is an enormous goal for our organi-
Stacey Searl Weidner Apartment Homes Christine Shipley Dunlap & Magee Michelle Sinclair Evergeen Devco, Inc. Justin Steltenpohl P.B. Bell Companies Greg Stobart MG Properties
Kyle Simplot Accounting & Operations Manager kyles@azmultihousing.org Phone: 602-296-6203 Sarah Fluke Manager of Membership & Business Development sfluke@azmultihosusing.org Phone: 602-296-6212 Sharon Hosfeld Manager of Community Outreach shosfeld@azmultihousing.org Phone: 602-296-6214 Lisa Garcia Membership Administrator lgarcia@azmultihousing.org Phone: 602-296-6207 Amanda Perkumas Assistant to Tucson Area Association Executive aperkumas@azmultihousing.org Phone: 520-323-0643 Shawn Kowalski Membership Administrator skowalski@azmultihosusing.org Phone: 602-296-6202 Jonathan Baldenegro Events & Education Administrator jbaldenegro@azmultihousing.org Phone: 602-296-6209
zation and I believe that we are going to make it happen.
Luz Bruscini MEB Management Services
We all share in the concern of what the future holds for our In-
Crystal DeHoag Bella Investment Group
Carmen Suggs ConAm Management Corporation
dustry, our association and our properties. The AMA is focused on
Anna DiSabato Dunlap & Magee
David Vanek Greystar Real Estate Partners
Kohl Eisenhour Avenue 5 Residential
Luis Verger Shelton Residential
fight any Legislative, regulatory or legal issues that may arise which
Natalie Evans Apartments.com
Wendy Weiske Gorman & Company
threaten our livelihood.
Kimberly Fitch Nicolosi & Fitch, Inc.
Debbie Willis P.B. Bell Companies
In 2020 the AMA will continue to focus on the education of our
Tim Furnas Valley Wide Security
Nicole Wray Greystar Real Estate Partners
nities for our on-site and corporate level employees. In 2019 our
Adam Greco Burns Pest Elimination
Rhonda Wooder Stratton Restoration
education classes were very well attended and many were sold out.
Shelly Griggs Avanti Residential
Chris Worrell GPM Landscape, Inc.
Kristin Heiple Baron Property Services
AMA STAFF
Jake Hinman Government Affairs Consultant jake@azcapitolconsulting.com Phone: 602-712-1121
Courtney Gilstrap LeVinus President and CEO clevinus@azmultihousing.org Phone: 602-296-6200
Bastien Andruet Municipal Lobbyist bastien@azcapitolconsulting.com Phone: 602-712-1121
Lauren Romero Tucson Area Association Executive lromero@azmultihousing.org Phone: 520-323-0643
PUBLIC RELATIONS/ COMMUNICATIONS MadridMedia Peter Madrid Owner, MadridMedia ptmadrid1975@gmail.com Phone: 480-495-3762
staying ahead of those issues. I know that we will pull together as an organization and ensure that we have the power we will need to
members as we continue to offer first-rate educational opportu-
In 2020 we will continue to offer these classes and more. The networking opportunities within the AMA are always abundant.
Robert Hicks Alliance Residential Company
That will not change in 2020. From dinner and lunch meetings to golf tournaments to bowling and chili cook-offs, the opportunity to
Stacey Hogue Greystar Real Estate Partners
meet and interact with people in our industry is an important part
Michelle Howland Blue Steel Security Services
of AMA’s past and our future.
Susan Knowles J.R. McDade
–Continued on next page
Matt Koglmeier Koglmeier Law Group, PLC David Kotin Kay-Kay Realty
ON THE COVER:
The AMA elected 2020 officers and board members at its December 5 board meeting. Joining Kim on the leadership group are Reid Butler, vice chair; Scott Hines, treasurer; John Carlson, immediate past chair; and Sue Campbell, AMC executive. (Photo by Mike Mertes)
Apartment News | January/February 2020
Sharon Kuhlman Shelton Residential Dustin Lacey Mark-Taylor Residential
Erika McDowell Director of Operations emcdowell@azmultihousing.org Phone: 602-296-6210 Michelle Rill Director of Membership, Events & Education mrill@azmultihousing.org Phone: 602-296-6205
Christina Desaubin Communications & Marketing Coordinator cdesaubin@azmultihousing.org Phone: 602-296-6204 AMA CONTRACTORS CAPITOL CONSULTING GOVERNMENT RELATIONS Courtney LeVinus Government Affairs Consultant courtney@azcapitolconsulting.com Phone: 602-390-1398
GRAPHIC DESIGN James Dempsey Design james@jdempsey.com Phone: 602-510-5508
Omar Mireles HSL Asset Management
3
azmultihousing.org
—Looking Ahead, from previous page
OCTOBER–NOVEMBER 2019 NEW AMA MEMBERS
I urge all of our members to take advantage of these events. This is the best way to meet other people who are experiencing the same struggles or victories that you are and we all can learn from each other. That makes our organization even stronger. I look forward to an exciting and productive year and to working with all of you to continue to make AMA one the strongest and
The AMA would like to welcome all new members from October & November. We are excited to work alongside you and to continue to make our association and industry the best.
most productive apartment associations in the Nation. – Kim Pacheco, AMA Board Chair, Scotia Group Management, Inc.
2020: A year in which AMA and its members make a commitment – and a big difference
• Alta North Central
• Larry Pagel
• Audio Visual Experts
• Lee Hoffman Roofing
• Automatic Gate Systems, Inc.
• Linda Sanders
• Blakeslee Partners
• MEB Rental Homes
• BRIO Investment Group
As we enter 2020, please take a few minutes to contemplate how you
• Broadstone Osborn
can best serve Arizona Multihousing Association this year and make
• Buckeye Senior
a commitment to do just that. Our initiative to raise $1 million for the
• CA Ventures
Better Government Fund is our main priority.
• Cactus Canyon
Along with our industry partners and municipalities, AMA is working with
• Camp Construction Services
the U.S. Census Bureau for an accu-
• Carson Apartments LLC.
rate count of residents in our rental
• Christopher Todd Communities at Stadium
communities.
• Christopher Todd Communities at Marley Park
In 2020 we will continue to strive to provide our members with a diverse array of networking events to build your business, education and professional certifications to enhance your
• Christopher Todd Communities on Camelback
Courtney LeVinus AMA President & CEO
team’s skills and lots of opportunities for all members to engage with
• Colonia Park
their peers and serve on an AMA committee.
• Copper Ridge
A robust membership is the key to any organization. This holds true for
• Curley School Artisan
AMA as we enter 2020 on the strength of 288,000 units in membership.
• Deborah Davidson
We will continue to provide members with the benefits, education
• Domain 3201
and networking opportunities that are valuable.
• Doug Wetton Properties
As we enter 2020, we also welcome two new members to the AMA family.
• Fetch Package • Fitness Machine Technicians
They are Jonathan Baldenegro, Event and Education Administrator, and Christina Desaubin, Communications and Marketing Coordinator.
• Floorfolio
On behalf of the AMA team, we look forward to seeing you at one our
• Fort Lowell Canyon
exceptional events, in the AMA classroom, on the golf course or one
• HTG
of our many committee meetings.
• In Ex Designs
Thank you in advance for your commitment and dedication to AMA
• Jeddito
in 2020 and beyond.
• La Posada (Tucson)
• Madeleine Lee • Melissa Wilhelm • Oracle Canyon • Orchard Mesa • Parker Apartments • Pivotal Clean • Ridge Roofing • RM Interiors • R ocky Mountain Restoration • Ron Wilson • Ryan Smith • S ahuarita Mission Apartments • Salt • Sante Realty • Southern Defense Security • Stillwater Restoration LLC • Summit at San Marcos • The Angela • The Cameron • The Link PHX • The Platinum • The Stewart • Tides at Tempe • Tides on 38th Street • Villa Vita Apartments • White Mesa • WhiteHaven Capital • Zone Apartments
– Courtney LeVinus, President & CEO, Arizona Multihousing Association Apartment News | January/February 2020
4
azmultihousing.org
As a rental resident, being counted in 2020 Census is important The 2020 U.S. Census is right around the corner, and with Arizona’s record-breaking growth, it’s important to be proactive to ensure you’re counted. As the Arizona population continues to grow, the demand for new apartments increases as well. With more Arizona residents living in apartment communities, the risk of being undercounted in the 2020 Census increases. Renters share certain characteristics that compound their risk of being undercounted, according to Censuscounts.org. One is transitory status. Rental residents are more likely to be missed in the Census because they are more likely to be moving during the Census-taking process. –Continued on next page
Apartment News | January/February 2020
5
azmultihousing.org
60%
—Census, from previous page The site also reports that more than 60% of renters live in multi-unit buildings. These buildings are specifically considered “an area hard-to-count”. “The next Census in 2020 will require counting an increasingly diverse and growing population in more than 140 million housing units. To get an accurate count, the Census Bureau must build an accurate
OF RENTERS LIVE IN MULTI-UNIT BUILDINGS
address list of every housing unit, maximize self-response to the Census and efficiently follow up with those who do not respond,” the U.S. Census Bureau reports.
“For the first time in 2020, people will have three ways to respond to the Census – online, by phone or by mail,” said Alec Thomson, Executive
Arizona is taking action to ensure that every resident of the state is
Director of the Arizona Complete Count Committee. “It’s never been
counted, developing targeted outreach efforts to reach traditionally
easier to respond to the Census – and with the growth Arizona has
hard-to-count communities. As part of this work, Arizona Gov. Doug
seen in recent years, it’s never been more important.”
Ducey created the Arizona Complete Count Committee (AZCCC) in an effort to motivate every Arizonan to respond to the Census – including
The majority of households will receive an invitation to respond to
Arizonans living in apartments
the Census online or by phone beginning on March 23, 2020. The invitation will include detailed instructions on how to respond and the
The AZCCC is bringing together leaders from across Arizona – from
online and phone option will be available in 13 different languages.
the public and private sectors, faith community, local governments and others – to deliver a unified message to Arizonans: The Census
In areas where housing units do not have mail delivered to their phys-
is easy, safe and important.
ical location, Census workers will hand-deliver paper questionnaire packages at the doors of apartment residents.
The efforts by the U.S. Census Bureau, Gov. Ducey and local governments across the state are clear: apartment residents need to be as
Arizona is counting on all of its residents to accurately participate in
equally prepared to complete their Census as soon as they receive
the 2020 Census: mark your calendars today.
their invitation to respond, either online or by phone or mail.
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n
Legislative Update
Vision 2020
AMA looks ahead to upcoming legislative blitz
By Jake Hinman and Bastien Andruet The federal program has supported the con-
Election year expedited activities
sion will kickstart into full gear.
struction or rehabilitation of about two million
With most legislators preoccupied with cam-
affordable housing units around the country
paigning, the Legislature began working on
Gov. Doug Ducey will deliver his
and 16,000 units in Arizona since its inception.
the state budget over the summer in an at-
annual State of the State Address
Under the federal program, the federal gov-
On January 13, the legislative ses-
to a joint session of the Legislature,
ernment issues tax credits to state and terri-
tempt have a budget close to complete prior to entering the 2020 session.
setting the tone for the coming
torial governments which are awarded to pri-
This is a somewhat unusual approach as law-
vate developers of affordable rental housing
makers typically address the budget towards
year’s policy priorities.
projects by state housing agencies through a
the end of session. Unlike 2019, which saw an
competitive process.
extension of the legislative session over bud-
With an energetic election year stirring up
In Arizona, the Department of Housing
activity all over the state, the AMA will be
(ADOH) manages the program through its
proactively working with legislators to en-
Qualified Allocation Plan.
sure that private property rights are protected and that the state maintains a business-friendly environment for property owners across the state.
A state LIHTC program would provide additional funding for affordable housing projects using the same regulatory parameters as the federal LIHTC program. Sixteen other states,
get fights, lawmakers have stated their intent to ensure the legislative session ends on-time for its sine die adjournment in April 2020. This will make introducing legislation even harder. Bills introduced that are not in readyto-pass form and bills addressing less-tempestuous issues, such as education funding, may be left on the backburner without per-
The AMA will also be working closely with
as well as the District of Columbia, have al-
lawmakers on initiatives to promote the pro-
ready established their own LIHTC programs
duction of new housing for low- and extreme-
to encourage increased multi-family devel-
Additionally, Arizona will likely see an influx
ly-low-income households. As part of the 2020
opment. It’s time for Arizona to follow suit.
of out-of-state political funding and activity,
AMA Public Policy Agenda, the AMA will be spearheading lobbying efforts to establish a statewide Low-Income Housing Tax Credit (LIHTC) to supplement the Federal LIHTC.
As hundreds of families move into the state of Arizona daily, more than 150,000 units of housing will need to be built by 2030 to keep up with demand. Our current pace of
By mirroring the federal LIHTC program
development simply isn’t able to keep up.
signed into law by President Ronald Rea-
Through the passage of a state LIHTC bill,
gan in 1986, a state LIHTC program would
Arizona will be able to create a more condu-
subsidize the acquisition, construction and
cive environment for development that will
rehabilitation of affordable rental housing for
help increase Arizona’s supply of affordable
low- and moderate-income tenants.
housing for low to moderate income families.
Apartment News | January/February 2020
8
sistent engagement.
as the political climate continues to shift, and more controversial issues are added to the ballot. While lawmakers’ focus on expedient lawmaking is encouraging, this preoccupation with campaigning may pose a threat to industry interests.
–Continued on next page
azmultihousing.org
—Vision 2020, from previous page Rent control containment
tax revenue and $10.8 million in lost apart-
property owners from harmful legislation,
With coastal domino theory in full swing, rent
ment rental income.
the AMA certainly has its hands full.
Conversely, rather than addressing the afford-
We look forward to navigating the new leg-
control is becoming a greater threat to Arizona. In step with California and Washington, Oregon passed statewide rent control legislation, and other Western states are rumored to potentially follow suit. Economists overwhelmingly agree that rent control is inefficient, counterproductive and leads to long-term underproduction of new housing units. Other than price controls on gasoline in the 1970s, there are no comparable examples of price controls in any other sector
able housing issue, rent control has caused
islative session and keeping you updated on
the opposite effect in Oregon, resulting in
our progress throughout the year.
the projected loss of 2,796 new apartments and threatening the construction of an additional 23,848.
Bastien Andruet joins Capitol Consulting following his work with the Rhode Island Democratic
As has been proven time and time again, rent
Party during the 2018 midterm election. Prior
control negatively impacts the economies
to relocating back to Arizona, Bastien received
where it is implemented and consistently
his M.A. in International Affairs from American
discourages further development, only wors-
University in Washington, D.C. While in Wash-
ening the issue of affordable housing. The
ington, Mr. Andruet worked for the National
AMA will continue to preserve the statewide
League of Cities, the International Foundation for
Yet, in an attempt to gain cheap political cap-
prohibition on rent control and oppose any
Electoral Systems, the office of James Langevin in
ital, policymakers continue to consider rent
efforts to diminish private property rights
the U.S. House of Representatives, and for Project
an acceptable area of the economy to enact
in the state.
on Middle East Democracy as a policy analyst in
of the American economy.
a price control.
We have an exciting year ahead of us, and
Since its passage, rent control has cost Port-
no shortage of issues to watch out for. From
land alone an estimated $213.9 million in
securing state funds to assist in the devel-
property value loss, $5.2 million in property
opment of affordable housing, to protecting
the advocacy department. He completed his undergraduate studies at Arizona State University in 2015, attaining a B.A. in Political Science and a second B.A. in Global Studies, and previously worked for the City of Tempe.
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azmultihousing.org
BUILDING MOMENTUM
Multifamily construction set to enjoy
a banner year in 2020 By Peter Madrid
“We’re still seeing quite a bit of inventory in infill locations as well,
The Valley’s multifamily construction industry ended
Tempe, Downtown Phoenix. The metrics in those markets are positive.
2019 on a sweet note with almost 16,000 new units
With the job growth around ASU, the need for it (inventory) is there.
under construction, in the development pipeline or
Now it has a Fry’s,” Bell says.
Phoenix today is a true urban infill location where people want to live.
ready to open their doors.
Nearly 8,000 apartment units came online in Metro Phoenix for the year ended January 2019, making it the eighth biggest delivery volume in
With that kind of momentum behind the multifamily industry, look
the nation, according to RealPage Inc. Demand remained well above
for significant construction growth to continue in 2020.
supply as more than 10,400 units were absorbed.
Want proof? Just two weeks into the new year a new 25-story, 379-unit
The City of Phoenix led the Valley in construction in 2019 by building
multifamily community will break ground in downtown Phoenix near
approximately 4,000 units. Tempe was second with almost 1,400 new
Talking Stick Resort Arena and the new downtown Fry’s grocery store.
apartments and Chandler with 1,300. West Valley cities Peoria and Goodyear each witnessed roughly 500 units each ready for move in
The same demographics that fueled a robust 2019 – job growth, a
by the end of the year.
steady increase in population and affordability – are in play again in 2020, according to Chapin Bell, President of P.B. Bell. In the current
“As for the current status of the overall multifamily market from a
cycle, the growth seems to be spread all around the Valley, he adds.
macro perspective, it’s difficult to determine exactly where we are in what continues to be a very unique multifamily expansion,” said John
“We seem to be maintaining a supply-demand balance,” Bell says. “Some
Carlson, President, Mark-Taylor Residential. “What we do know to be
submarkets are receiving more of the inventory, but we are seeing
a certainty is that annual job growth in the marketplace is the single
a wide dispersion of inventory across the metro area, particularly
most correlated metric to annual apartment demand.
in areas we haven’t seen in previous cycles. Namely the West Valley, where there is job growth.
Apartment News | January/February 2020
–Continued on next page
10
azmultihousing.org
—Building Momentum, from previous page In reviewing job growth from 2011 to the
experts say, include labor and construction
present and based on historical absorption,
costs; both of which tend to drive up rental
the market has remained in balance during
rates. With rent increasing more than 8 per-
this time and this has helped to maintain
cent over the past year, is the Valley at risk of
strong apartment fundamentals this entire
losing its appeal of affordability?
cycle, Carlson says. He adds that while job growth and apartment construction are not linear, they are cyclical and based largely on unpredictable factors like monetary policy and the availability of debt.
Most of the largest gains are occurring in
“For the most part, no,” says Matt Evans, Re-
blue collar industries including construction,
gional President, Multifamily, Evergreen Dev-
manufacturing, trucking and warehousing.
co Inc. “Phoenix will remain more affordable
Arizona’s economy also continues to become
as compared with California, Colorado, Wash-
more diverse as efforts have shifted toward at-
ington and the larger cities in Texas. Rents
tracting more intellectual capital to the state.
“With that said, looking ahead and in consid-
will not continue at this pace and will most
eration of that cyclicality, in many suburban
likely slow to a long-term rate of growth in
locations, the market will continue to feel
the 3 percent to 5 percent range.”
underbuilt while certain urban cores, like Downtown and Midtown Phoenix, will feel
“I feel good about the economy and where it’s going,” Bell says. “You hear news that a recession is coming. I’m less concerned now
Aiding the state’s robust multifamily construc-
because the diversity of our economy is a lot
tion industry is that Arizona’s labor market
different than what it used to be. I project us
continues to improve across multiple key
to be one of the top markets in the country.
What is keeping multifamily developers
industries with relatively low unemployment
I feel good about that. I feel our supply and
awake at night? Issues the industry is facing,
and broad-based job gains.
demand metrics are being correctly managed.”
headwinds,” Carlson said.
Metro Phoenix Multifamily Boom Facts: n
Maricopa County attracted more new residents than any other county in the U.S. during the past three years, according to the U.S. Census Bureau. The Valley added 81,244 people between July 2017 and July 2018, the latest period tracked.
n
Metro Phoenix posted the biggest increase in the U.S. for jobs – 3.2% – during the past year, per a count from the Bureau of Labor Statistics. That growth translates to about 66,500 new jobs.
n
Arizona incomes grew by 5.5% during 1Q 2019, faster than the national rate of 3.4%, the U.S. Bureau of Economic Analysis reports. Sources: AMA research; Arizona Republic; U.S. Census Bureau
Apartment News | January/February 2020
11
azmultihousing.org
AMA addressing affordable housing challenge with innovation, collaboration Finding solutions to complex problems re-
lies will require innovation and collaboration
quires understanding the scope of the chal-
between the private and public sectors. Local-
lenge ahead. Affordable housing, a much-dis-
ly, elected officials must work with developers
cussed issue facing the Valley and Arizona,
to remove the onerous bureaucratic restric-
is no different.
tions that drive the cost of housing higher.
While we may disagree about how best to
At the state level, momentum has begun
build and fund more housing for families at
to build to piggyback on a federal program
all income levels, we should at least agree on
els of evictions. Those are the facts, and it’s
known as the Low-Income Housing Tax Credit
the basic facts – like how often renters are
a good thing.
(LIHTC). Signed by President Reagan, ex-
evicted in Maricopa County and statewide.
As AMA president, I understand that each evic-
panded by Democratic presidents and continued by President Trump, federal LIHTC
Media reports over the past few months have
tion represents a uniquely difficult moment for
cited numerous eviction statistics. The num-
both renters and property owners. For renters,
bers tossed around have been massive. The
evictions may create pain and inconvenience.
problem with these numbers? They’re wrong.
For property owners, the cost of eviction and
Sixteen states have already created their own
re-renting an apartment home sabotages their
LIHTC program to speed up the construction
investment and the bottom line.
of housing for those who would struggle to
A simple analysis of Arizona court statistics shows that the rate of evictions in Maricopa County has remained stable since the Great
For all these reasons, our organization and
Recession of 2008. For every 1,000 rental res-
our partners are working hard to help address
idents in the county, about 16, or 1.6 percent,
one of the underlying causes to evictions, and
ended up being evicted in 2018. Counter to the recent narratives, that’s the
has supported the construction or renovation of about 2 million housing units nationally.
otherwise afford to pay rent. In Colorado, the state LIHTC program has helped created about 5,000 new affordable housing units since 2015.
to attack the undersupply of housing that
Each new unit represents a boost to Arizo-
represents the crux of the problem.
na’s economy and our pivotal construction industry. Even more importantly, the family
same eviction rate that existed in 2008. Inter-
How undersupplied is the Valley rental mar-
estingly, the number of eviction actions filed
ket? According to an NAA study, Metro Phoe-
in county courts have dropped significantly
nix would need to build 11,000 units a year for
by nearly 18 percent between 2008 and 2018.
the next decade to meet the rising demand
Meanwhile, the county’s renter population
created by being the nation’s fastest-growing
all be able to agree that Arizona’s families
jumped by 32 percent across the same decade.
county. Each day, 200 new residents move to
deserve our very best effort when it comes
Maricopa County.
to meeting such a critical challenge.
The eviction rate in Arizona has not increased, and we are far from experiencing record lev-
Building more housing for low-income fami-
living in each new unit will be better able to afford their home. No matter what the statistics say, we should
– Courtney LeVinus, AMA President and CEO
Application process open for AMA’s Julie Hurst & Steve Peters Education Fund The application process for ANA’s 2020 Julie Hurst and Steve Peters
The annual scholarship provides post-secondary educational funding for the employees of a company that is a member in good standing
Education Fund is now open. It closes the middle of May.
of the AMA and their immediate family members. Immediate family
The fund was created in memory of Julie Hurst, a Senior Vice President
members include children, spouse or dependent of a legal guardian.
of Riverstone Residential, and Steve Peters, a Senior Portfolio Director with Shelton Residential. Both Julie and Steve served on the Arizona
Scholarship awards are for one year of undergraduate study for part-
Multihousing Association Board of Directors, were very influential in
time and full-time students at an accredited college, trade/vocational
the industry and were education advocates.
school or university located in Arizona. This scholarship fund is administered by the Arizona Community Foundation (ACF). Apply here.
Apartment News | January/February 2020
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Q&A with ‌
Kim Pacheco, CPM
2020 AMA Board Chair
By Peter Madridi
Kim Pacheco, CPM, Director of Multifamily Operations with Scotia Group Management LLC in Tucson, takes the reins as 2020 Arizona Multihousing Association Board Chair. She will lead a board that is 50 members strong in an industry that has seen tremendous growth in Arizona. Kim sat down for a Q&A with Apartment News to discuss her role in the year ahead. Q: How long have you been involved with AMA
Q: What do see as the top issues facing the
and what was your path to taking over as 2020
apartment industry in Arizona?
Board Chair?
A: Our top issues in 2020 and beyond are the
A: I have been involved with the AMA for
legislative, regulatory and legal threats that
more than 25 years. I have been on commit-
we see in the future for the multihousing
tees or chaired committees every year. I was
industry in Arizona and the nation. The AMA
honored to be asked to join the Board in 2008
is dedicated to proactively addressing these
and also to join the Executive Committee
issues and working tirelessly to protect our
in 2016.
members’ assets.
Q: What are your priorities and what are your
Q: Multifamily is one of the hottest property
goals for the AMA as its 2020 Board Chair?
types in Arizona. How long do you see this cycle
A: I believe our top goal in 2020 is to put as
continuing?
much effort and resources into the goal of
A: This cycle will not slow down any time soon.
raising $1 million for our Better Government
Our industry is instrumental in the growth
Fund as we can. This will allow us to fight the
or our cities and our nation.
hard battles that our industry will be facing in the very near future.
Apartment News | January/February 2020
13
bio: Kim Pacheco joined Scotia Group Management, LLC, in 2000 as a Regional Property Supervisor. She is Director of Multifamily Operations and oversees a total of 10 residential properties. She is also responsible for Multifamily Operations within Scotia Group Management, which includes policies and procedures for all residential properties as well as personnel. Kim possesses 30 years of experience in the Property Management field with 25 years as a Property Supervisor. She also worked as an Account Executive for For Rent Magazine for two years. She sold and implemented many advertising and marketing programs for management companies as well as individual owners.
azmultihousing.org
AMA Patron Profile Home Depot Pro Multifamily 1590 E. Riverview Drive, Phoenix, Arizona, 85034
By Peter Madrid Andrea Tucker knows firsthand how her company has benefited from being a member of the Arizona Multihousing Association.
Home Depot Pro, formerly Wilmar, has been working with the AMA since it opened its Phoenix distribution center more than 15 years ago. “Being a member of the AMA has transformed our business within the local multifamily industry,” Tucker says. “We started the relationship off with valuable networking opportunities and strategic resources. Since then, we have gained many wonderful customers and strong partnerships with local vendors and friendships along the way.” Industry groups are vital to the success of any business. This is particularly true for Home Depot Pro, which has designed a maintenance education program the AMA. “This program provides professional training to the maintenance community on a variety of topics throughout the year,” she says. “Home Depot Pro is passionate about giving back to its customers and investing
Andrea Tucker,
in their success. Providing expert education to the community is one
Corporate Account Manager
of the many ways that we are able to demonstrate this within the AMA.”
(480) 244-5830 Andrea_L_Tucker@homedepot.com
With the multifamily industry one of the hottest in Arizona, AMA member companies such as Home Depot Pro are enjoying the
Home Depot Pro is passionate about giving back to its customers and investing in their success. Providing expert education to the community is one of the many ways that we are able to demonstrate this within the AMA.” –A ndrea Tucker
brisk market. “The Arizona multifamily market has been thriving, leading to increased rents which often bring renovations and strategic upgrades to the properties,” Tucker says. “This benefits our company because we get to partner with local properties to provide the materials needed for these improvements.” What does it mean personally to Tucker to be an AMA member? “It means being a member of a community of multifamily professionals who will provide guidance and a strong support system whenever
Home Depot Pro Multifamily
it’s needed.”
Apartment News | January/February 2020
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n
Legally Speaking
Crisis Crossroads Industry issues across the U.S. could affect what happens in our backyard
The California Legislature has been working toward statewide rent control since 2018. Proponents of statewide rent control found victory on Oct. 8, 2019, when Gov. x Newsom signed Assembly Bill 1482. Effective Jan. 1, 2020, rent increases in California are capped annually at 5% plus local inflation (estimated to average about 2.5% annually in California).
By Blythe Edmondson, Attorney at Law As those of us in the multihousing industry are aware, laws and regulations vary widely across the country. However, trends impact us all whether legislation related to these trends makes it way to the state Legislature in our individual states in any given year. While rent control is certainly not a new concept, the country has seen an increase in the discussion of and amendment of laws and regulations related to rent control in the last year. The National Apartment Association (NAA) and National Multifamily Housing Council (NMHC) identified this issue as a policy priority for the coming year. What is rent control? The term rent control refers to laws or ordinances that function to reduce the rate at which a landlord can increase the
However, annual rent increases cannot ever exceed 10%, even if local
rental rate on an apartment or unit. Rent control puts a cap on what
inflation is over 5%. The change in California law is a bit more com-
a landlord can charge in rent.
plex with the local ordinances already in place regarding rent control; the new law takes these into consideration. The new California law
What has been going on nationally with regard to rent control, and what do we in Arizona need to be aware of? In March 2019, Oregon
exempts buildings built in the past 15 years as well as single family
became the first state to impose statewide rent control. Landlords
homes and condominiums.
across the state are limited to an annual rent increase of 7% plus the
Currently 36 states, including Arizona, have laws preempting local
increase in the Consumer Price Index.
governments from imposing rent control. (ARS §33-1329.) Prior to
While landlords in most cases are free to increase rents between
the passage of the new laws in Oregon and California, at least four
residents who voluntarily vacate, the cap remains in place if the prior
states and the District of Columbia had laws in place in individual
resident is evicted or their lease isn’t renewed after the first year. The
local jurisdictions imposing rent control.
law exempts some new construction and subsidized housing. –Continued on next page
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THANK YOU
—Crisis Crossroads, from previous page The passage of the Oregon and California laws have shifted the discussion of rent control to a larger stage. The increasing discussion and passage of statewide regulation on rent control increases the
PATRON MEMBERS! P L AT IN U M
likelihood states such as Arizona may see statewide legislation regarding rent control. Discussion of rent control has come about because of the shortage in affordable housing seen nationally. Proponents of rent control argue not only does it make housing more affordable, but because it discourages individuals from moving, it increases their stake in their local community. They argue in large cities where land is scarce, development of new housing is already limited, and rent control makes housing more affordable. While rent control is seen as solution to the affordable housing shortage by its proponents, most studies show rent control decreases the number of rental units available as well as discourages new development in the multi-housing industry. Economists at either end of the political spectrum disagree on many issues; however, rent control is an area where economists find common ground. When applying the basics of supply and demand we see the decreased cost to tenants increases the demand while disincentivizing the landlords to provide supply. This makes it harder for low-income residents to find housing and reduces the supply of affordable housing; the problem rent control is arguably being introduced to resolve. Rent control generally disproportionately benefits higher-income residents compared to lower-income
GOL D
residents; the higher-income residents are generally considered more desirable because of their financial stability. With rent control restrictions, landlords often have a larger pool of prospective residents from which to choose and naturally make the better financial decision for their businesses. As rent control measures are put in place in other jurisdictions, the
SILV E R
Arizona Multihousing Association should be vigilant in watching and monitoring the impact these laws have on owners and residents. We need to be mindful of the discussion we hear in our own community and work to educate all involved on the impact of rent control legislation.
Blythe Edmondson, Attorney at Law Edmondson Law PC Blythe opened Edmondson Law PC in 2018 after 18 years of practicing law in Tucson. While Blythe’s practice initially included real estate matters and landlord representation, she expanded her practice areas over the years to include collections and business law to provide more comprehensive service for her clients
For more information on how to become a patron member of AMA, please contact Sarah Fluke, sfluke@azmultihousing.org, 602-296-6212. Apartment News | January/February 2020
16
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Education & Events PHOENIX
Appliance Repair
Cocktails & Comradery
March 11, 9 a.m. to 3 p.m.
February 27, 5 p.m. to 7:30 p.m.
All Education Classes & Events Take Place at
AMA Office Gallery, 818 N. 1st St., Phoenix
Location TBD
the AMA Gallery Unless Otherwise Specified
Cost: $30
Cost: Sponsors $125; Attendees $25 Associate Members must sponsor to attend
818 N. 1st Street, Phoenix, 85004 To register online you will need your
R410A Course
username and password.
March 26, 9 a.m. to noon
TUCSON EDUCATION
If you need your username and password
AMA Office Gallery, 818 N. 1st St., Phoenix
Fair Housing
or are a non-member and would like to
Cost: $30
January 14, 9 a.m. to noon
register please contact Michelle Rill at mrill@azmultihousing.org or 602-296-6205.
Unscrewed Center, 4500 E. Speedway Blvd., Certified Apartment Manager (CAM) Designation Course
Suite 40
January Dinner Meeting
March 16 to 20, 9 a.m. to 4 p.m.
Education Credits. For owners and
January 23, 3:30 p.m. to 5:30 p.m.
AMA Office Gallery, 818 N. 1st St., Phoenix
managers, understanding and complying
Phoenix Country Club, 2901 N. 7th. St.
Cost: $895
with fair housing law and the American
Cost: $30
Eligible for 3 hours of RE Continuing
with Disabilities Act (ADA) is critical. Phoenix Fair Housing
This course provides an overview of fair
Phoenix Reverse Trade Show
March 24, 9 a.m. to noon
housing and ADA law and investigative
April 8, 9 a.m. to 1 p.m.
AMA Office Gallery, 818 N. 1st St., Phoenix
procedures. This course is taught by an
Phoenix Convention Center, South Building,
AZRE Credit Available
AMA member attorney.
33 S. 3rd St., Phoenix
Cost: $30
Cost: $30 members/$60 non-members;
Check out the AMA website for additional details. PHOENIX EDUCATION Phoenix Fair Housing January 22, 9 a.m. to noon AMA Office Gallery, 818 N. 1st St., Phoenix AZRE Credit Available. Cost: $30 Phoenix Landlord Tenant February 18, 9 a.m. to noon AMA Office Gallery, 818 N. 1st St., Phoenix AZRE Credit Available. Cost: $30 Heating & Cooling Basics February 20, 9 a.m. to noon AMA Office Gallery, 818 N. 1st St., Phoenix Cost: $30
Secrets of Leasing Leaders
TUCSON
February 26, 9 a.m. to noon
AMC Meeting Featuring Quarterpenny Management January 9, 3 p.m. to 4:30 p.m. Lantana Apartments, 1111 W. Saint Mary’s Road
Community Foundation Campus, 5049 E. Broadway Blvd. Recommended for all onsite management and leasing team members. Learn the qualities common to all leasing leaders and how to develop them. Anticipate,
January Dinner Meeting January 30, 5 p.m. to 7:30 p.m. Embassy Suites (formerly Radisson Suites), 6555 E. Speedway Blvd. Cost: Members/Non-Members: $59/$79 ($79/$99 after 1/24)
uncover and overcome any objection from a prospective resident. Recognize prospective residents’ buying signals. Cost: $30 members/$60 non-members HVAC 101 February 18, 9 a.m. to 11 a.m.
Big Hearts Family Fun Rainbow Run February 15, 9 a.m.- to 11a.m. Reid Park, Ramada 10 Cost: Registration $30
Goodman Training Center This introductory/refresher course will cover HVAC safety, lock out/tag out, troubleshooting basic HVAC issues and components, and preventive maintenance.
EPA 608 Training Session with Testing
This is not a HVAC certification course or
February 26 and 27, 9 a.m. to 3 p.m.
test prep course.
AMA Office Gallery, 818 N. 1st St., Phoenix
Cost: $30 members/$60 non-members
Cost: $95
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What’s up down in Tucson Maintenance Mania Tucson’s Maintenance Mania event on November 14 was the biggest one yet with sold-out exhibitor tabletops and 510 attendees. The 220 full-day attendees received valuable information at the educational morning portion about general safety, bed bugs and active shooter response. Congratulations to Eli Montes De Oca from The Woods Apartments for winning first place overall in Tucson and to Perla Ayala from Lantana for winning first place overall for the Housekeeper competition. Attendees from every management company showed so much support for the competitors. In the end, HSL took home the Spirit Award. This event would not be possible without Maniac Sponsors: AZ Partsmaster, Distinctive Carpets, Home Depot Pro Multifamily, Highfill Landscaping, Interior Logic Group Services, Maintenance Supply Headquarters, Redi Carpet, Roofing Southwest, Silverado Rooter & Plumbing, Tucson Appliance and Impound Sponsor, Valley Wide Security. Join us on November 12 for the 2020 event.
Associate Member Appreciation Breakfast Thanks to all our management companies who provided breakfast for our associate members at our annual Associate Member Appreciation Breakfast: Greystar, HSL, MC Companies, MEB, Nicolosi & Fitch, Quarterpenny, Scotia Group and Northland Investment. A special thank you to the Place at Wilmot North for hosting this fun event.
Apartment News | January/February 2020
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azmultihousing.org
RAINFOREST
EXCLUSIVE MEMBERSHIP PLAN
HVAC PRO
MEMBERSHIP BENEFITS • AFTER YOUR FIRST INSPECTION, GET THE RAINFOREST VIP TREATMENT. • SERVICE CHARGE WAIVED! (UP TO $89.90 DISCOUNT) • FREE DIAGNOSIS! ($98 DISCOUNT!)** • PRIORITY RAINFOREST SERVICE! • RAINFOREST WILL STORE ALL YOUR MAINTENANCE RECORDS. • PHOTO DOCUMENTATION ON ALL REPAIR RECOMMENDATIONS!
PEACE OF MIND
1
BUDGET PLANNING
2
REPAIR SAVINGS Member benefits save money on one-off repairs.
Predictable scheduling for maintenance costs.
TIER BRONZE
SILVER
GOLD
3
TAGGING & TRACKING Easily identify units and let Rainforest store your info.
4
EXPERT KNOWLEDGE Techs will have the benefit of insight from checks.
FREQUENCY
$50 per unit
1X per year
per unit
2X per year
$98
4X
SIGN UP NOW
NON PLEATED +$5 /per filter
$65 per unit
FILTER COST
per year
PLEATED +$8 /per filter
602- ASK-RAIN
*Applied to in-contract units only. **Diagnostic fee ($98) applies to any failed component where a recommendation for repairs was previously declined. Excludes after-hours (6pm-6am) major holidays & weekends. 20 azmultihousing.org Apartment News | January/February 2020