Annual Report 2017

2017

A N N UA L

REPORT

2017 BOARD of DIRECTORS President - Amanda Kitts-Cutliff, CAPS Vice President - Ben Collins Treasurer - Mike Rinaldo, CAM, CAPS Secretary - Lynn Ackerman, CAM, CAPS Immediate Past-President- Charlotte Eaker Kim Bolt-Davidson Susan Bowman Brian Brand Holly Casper, CAM, CAPS Darline Cobb Charity Ellis, CAM Sandra Fick, CAM Lisa Foley, CAM, CAPS Pete Harrison, CAS Stephanie Hovis, CAPS Alisha LaPorte, CAM, CAPS Chris Loebsack Margenia Love, CAS, CAPS Courtney Moreno Brandi Robertson, CAM, CAPS Jennings Snider Jonathan Tee, CAS John Scott Trotter Diedre Wilson, CAM, CAPS Maryam Zeledon

2017 SPONSORS EXECUTIVE AFR Furniture Rental • AfterDisaster Brownlee Whitlow Praet & File, PLLC Charter Communications • CORT Crescent Communities • Disaster One Elite Flooring • Grandbridge Real Estate Capital Loebsack & Brownlee, PLLC Maintenance Supply Headquarters Night Owl Contractors • Real Floors Response Team One • Roto-Rooter Sherwin Williams • Spangler Restoration CORPORATE Full House Marketing • Greystar • Turner Asphalt Weinstein Properties • Westdale Real Estate Investment & Mgmt.

SUPPORTING Blue Ridge Companies • Carocon Chadwell Supply • Charter Properties Ginkgo Residential • Glass Doctor Marsh Properties • Republic Services • SYNCO Properties

2017 GCAA STAFF Ken Szymanski, AICP, Executive Director Fran Petzold, Financial & Membership Manager Pat Dorcy, Office & Events Manager Jennifer Galeazzi, CAM, Career Development Manager Bryan Holladay, Government Affairs Manager Erica Carter, Communications & Marketing Manager Stacie Man, Event Planner Catherine Rojas, Member Services Coordinator

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FROM your EXECUTIVE DIRECTOR The Greater Charlotte Apartment Association had a superb year in 2017!

The GCAA demonstrated its member-responsiveness and versatility last year in areas such as professional and career development, information/communications, political/ regulatory advocacy, and peer-to-peer networking. We ended the year with 147,602 member apartment dwelling units, housing 300,000 persons in assets with a collective value in excess of $15 Billion. Wow! We continued to witness and be engaged in fundamental demographic and demand changes that equate to consumer preferences for apartment living.

GCAA is blessed with progressive, responsible industry leaders who know the importance of rental housing to the community, along with the financial realities of the business. Even though Association membership is voluntary, we are proud of the fact that every one of the Top 25 Owner/Management firms in the Charlotte apartment market in fact is a GCAA Member.

GCAA thanks the many hundreds of volunteer members who shape and help implement our work as an extension of their profession. This Report is a snapshot of some of our 2017 highlights.

Ken Szymanski GCAA Executive Director

GCAA 2017 Annual Report 3

GCAA SUCCESSES Announcing the NEW Smoke-Free Certification Program The GCAA, along with our partners are thrilled to introduce the SmokeFree Certification program to those communities that have taken the environmentally friendly initiative to go smoke-free! This program was launched in April and currently has 39 certified communities.

Industry Compensation and Benefits Survey via J. Turner Research with over 60,000 units participating.

Our July/August 2017 Apartment Times magazine cover highlights Charlotte’s growth & affordabilty.

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POLITICAL/REGULATORY ADVOCACY Legislative advocacy on behalf of the multifamily rental housing industry continues to be a leading GCAA mission. GCAA staff, leaders, and volunteer members work tirelessly to ensure apartment-friendly legislation at the local, state, and national levels. Much of this work is accomplished by volunteer members of the Association’s Government Affairs Committee, a group which had a very productive year in 2017.

Highlights of the Government Affairs Committee’s efforts in 2017 include:

• PAC’s Fund-Raising Success: The PAC presented City Councilman Greg Phipps of District 4, with a check supporting his election campaign – the first time the AANC PAC has participated in a local election.

• Housing Affordability and Affordable Housing were 2017 GCAA Areas of Emphasis. The GCCA hosted multiple community

meetings, coordinated a committee with GCAA members and Charlotte Community leaders and conducted an informational meeting on affordable housing with Charlotte Council candidates.

Here are some of the accomplishments: » Monthly meetings were conducted with GCAA members, local community housing partners, Charlotte-Mecklenburg staff and other civic organizations. Many conversations were centered around ways the GCAA can work locally to help alleviate housing affordability issues. » Conducted the Pride of Place Bus Tour in March: Toured five “Affordable” communities and hosted a panel discussion on Affordable Housing in Charlotte afterwards. » Sponsored with HousingCLT: How Private Sector Multifamily Housing Providers Can Help End Homelessness in Charlotte with Kirby Davis.

» Joined with 9 other organizations to host Matthew Desmond author of Evicted! Poverty and Profit in the American City.

2017 Trash Update: The GCAA has long been an advocate that if the City of Charlotte provides (and pays for) single family residents trash collection, it should also provide (and pay for) multifamily residents trash collection. In 2017, we continued to work with the City of Charlotte, Charlotte City Council and Charlotte Solid Waste Services on issues surrounding Multifamily Trash Collection.

Full engagement with AANC and NAA, including committee service and lobbying: While attending the AANC and NAA Conferences, members of the GCAA called on our state and federal representatives to thank them for supporting the apartment industry as well as to foster new relationships, and to discuss issues and concerns impacting the apartment industry.

Local Issues: •

Sales Tax on RMI: The sales tax applied to repair, maintenance or installation (RMI); monitoring and communicating on the various changes to the revenue laws and the impact to management companies. Through our efforts, we were able to delay the tax effective date by one year.

•

Private Process Service: Advocating for private process servers to post summons (with notification of lawsuits and/or court dates) on residents’ doors.

Federal Issues : •

Tax Reform: Any proposed reforms must promote economic growth and investment in rental housing without unfairly burdening apartment owners and residents relative to other asset classes.

•

National Flood Insurance Program Reauthorization.

•

Americans with Disabilities Act Reform.

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PROGRAM HIGHLIGHTS The GCAA hosted a record number of programs with the two highlights being GCAA’s 40th Anniversary Celebration in May and the record-attended Bravo Awards at the Westin in December. GCAA hosted seven dinner meetings with a total attendance of 1052 members and fantastic national industry speakers. Other member programs included 24 seminar offerings, The New Construction, Rehab & Affordable Housing Tours, and The GCAA Charity Golf Classic. These Programming decisions were made by the volunteer efforts of GCAA members who served on the Programs, Operations and PSC Committees along with guidance and execution by GCAA staff.

The high caliber of GCAA’s instructors & speakers truly drives our programming success. See who made our calendar shine in 2017: • • • • • • • • • • • • • • • • • • • •

Erin Amon, Co-Star Group Fred Bolt, Suncap Property Group Will Brownlee, AANC Executive Director Parry Cobb, GCI Residential Jennifer Cotton, Co-Star Group Mark Cukro, Service Team Training Jeffrey Dillman, NC Legal Aid Roy Fielding, The Pool Professor Jack Holtzman, NC Legal Aid Alex Jackiw, Milhaus Management Amanda Kitts-Cutliff, Greystar Mindy McCorkle, Enhancement Talent Development Terri Norvell, Claim Your Inner Prize Skylar Olsen, Zillow John Porter, Charter Properties Mike Rinaldo, Northwood Ravin Rebecca Rosario-Bueno, Full House Marketing Chuck Travis, The Housing Studio Marcie Williams, RKW Residential Jenn Zella, CID Design Group

A summary of GCAA’s 2017 programs with the number of attendees in parenthesis noted for each: JAN Economic Forecast Breakfast (263) JAN - AUG Pool School – NC Certification, CPO Certifications (168) FEB

New AANC Lease Seminar (61) -Sold Out Dinner Meeting with Mark Cukro (156) Bridging the Gap; Onsite Team Communications (31)

MAR

The GCAA Sports Zone Trade Show (1810) Pride of Place Affordable Tour (58) –Sold Out

APR

Women in Leadership (58) -Sold Out Leasing and Manager Appreciation Carnival Night (172) Charlotte Fair Housing Law Workshop (127)

MAY

Meet the Decision Makers; Open Door Series (58) –Sold Out Spring in Paris; 40th Anniversary Celebration (219) GCAA Charity Golf Classic (144) – Sold Out

JULY

A 360 Degree Multifamily Marketplace Perspective (144)

AUG

Dinner Meeting with Terri Norvell (147) Break Through Your Inner Challenges (22) Beyond Budgets; Open Door Series (32)

SEPT

Leasing Essentials (16) It’s A Beautiful Day in the Neighborhood Tour (245) –Sold Out Landlord Tenant Law (108)- Sold Out

OCT

Fair Housing for Today and Tomorrow (42) Maintenance Appreciation: OKTOBERFEST at OMB (232) AANC Lease Review (27) NAA Lease Review (29)

NOV DEC

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Property Rehab Tour (56) –Sold Out Bravo Awards (887)

EDUCATION 2017 NAAEI Credential Classes In 2017, nearly 90 students attended NAAEI credential classes including CAPS, CAM Fast Track, CAM, CAMT, NALP and CAS at the GCAA. We value our dedicated volunteer instructors that make our industry training possible each year. The GCAA is pleased to make a donation to the GCAA Education Foundation of $9,131.00, 25% net income of annual credential classes.

GCAA Education Foundation The GCAA Education Foundation raised a total of $5,639 in 2017 from the Outreach Committee’s Bowling Tournament, and the annual Golf Tournament’s silent auction. These funds provide training scholarships for industry professionals. The GCAA Education Foundation is proud to award five scholarships in 2017 for NALP, CAM, CAPS, and CAMT credential classes.

Maintenance Personnel Pipeline Development The GCAA continues to work closely with Central Piedmont Community College and Gaston Community College to provide Apartment Maintenance Certificate classes.

These programs introduce participants to the skills needed to perform a variety of duties required for effective maintenance of apartments and other light commercial applications. Topics covered include basic carpentry, minor electrical, plumbing, dry wall, minor HVAC and other mechanical systems for the purpose of maintaining, repairing or remodeling buildings and facilities. The GCAA and member volunteers participated in Lunch-n-Learn forums at CPCC to bring awareness to careers in residential property maintenance.

Multifamily Career Awareness We will continue to work in 2018 with a new partnership with City of Charlotte, Youth Employment Agency. Together we will offer career fairs for CMS students to learn about careers in Residential Property Management. The GCAA Board of Directors invested $30,000 to promote careers in our industry. We will work closely with Mixed Media Creations to effectively market our industry to young adults in our geography. Campaign items include custom website, rack cards, video, social media graphics, public relations package and promotional items.

LEADERSHIP DEVELOPMENT Every other year, Lyceum program participants meet for four half-day sessions that focus on Teambuilding, Association Basics, Legislative Advocacy, and Community Service. Outings and guest speakers formulate the four sessions, which past Lyceum graduates help organize.

GCAA would like to thank and congratulate the graduates of its 2017 Leadership Lyceum Class: Gabrielle Bouknight- HHHunt Bruce Congdon- Night Owl Contractors, Inc Donovan Dacosta- Occupancy Heroes Incorporated Claude Dawson- AFTERDISASTER-Metrolina Johannah Fijalka- Milestone Management, LLC Michael Kucera- Valet Living Rebecca Mignery- SL Nusbaum Chris Moffett- Greystar Nahleena Moore Christy Rightley- GCI Residential Wendy Sikorski- GCI Residential Michelle Smith- Environmental Design Landscaping, Inc Jessica Sutherland- Ginkgo Residential John Scott Trotter- Charter Properties, Inc. GCAA 2017 Annual Report 7

MEMBERSHIP The GCAA membership continues to grow with each year. We have exceeded our budgeted membership numbers in 2017. The Membership Committee has worked hard to make our new members feel welcome and supported upon joining. This year, along with the PSC, they formed the GCAA Ambassador Program which pairs a new member with an experienced one to help them get the most out of their membership. They also offer incentives to current members for their recruiting efforts. Below shows the actuals and the growth of the association for the past five years.

Membership Data Actual Associates 319 Owners 201 Small Owners 51 Properties 745 Units 147,602

Budget 300 190 54

n/a 140,000

2016 293 196 55 672 128,455

2015 306 184 52 616 118,529

2014 291 197 35 599 112,095

2013 289 176 42 540 105,796

2012 303 163 47 506 99,955

ASSOCIATE MEMBERSHIP The GCAA continued to grow in 2017, partially by developing the Associate side of membership. Additionally, there was an increased focus on the many subcommittees that the Products and Services Council has to offer. Associate Development (AD), as an example, develops and executes a variety of programs designed to increase member awareness of and involvement in the PSC, the GCAA and the Apartment Industry. Upon closing out 2017, AD made plans for 2018 to offer members teaching work-shops that help associate members advance in the industry. Topics of these workshops will include Trade Show 101, Capitalizing on your Leads and Business Etiquette. PSC also had the pleasure of joining with Membership to create the Ambassadors Program in hopes of helping add value to Associate Member Benefits and increasing associate membership retention. The GCAA Trade Show every March is put on by the Products and Services Council and is one of the most anticipated and attended events of the year. It continues to thrive and grow.

Trade Show Attendance and Financial Summary Year Total Attendees 2013 1325 2014 1426 2015 1489 2016 1582 2017 1810

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Income $118,315 $124,490 $135,767 $144,237 $151,099

Expenses $53,673 $52,285 $54,899 $57,303 $61,011

Revenue $64,642 $72,205 $80,868 $86,934 $90,088

FINANCIAL SUMMARY The Greater Charlotte Apartment Association is a 501(c)(6) non-profit organization. As such, the GCAA’s annual budget is structured to break even rather than to strive for significant profit. Rates for member dues, forms prices, class fees, etc. are determined solely by the Association’s expected expenses. In 2017, the GCAA concluded the year with a net profit of $76,082.

Detailed income and expense information follows below:

2017 INCOME

GCAA 2017 Financial Summary INCOME: Owner Dues: Associate Dues: Forms Income: Trade Show: Seminars: NAAEI: Sponsorship: Other:

$1,516,891.00 $505,609.00 $165,145.00 $161,000.00 $154,863.00 $104,175.00 $81,291.00 $66,500.00 $278,308.00

EXPENSES: Payroll: Office: State/National Dues: General Meetings: Furniture/Equipment: Other:

$1,440,809.00 $614,465.00 $160,496.00 $131,389.00 $65,599.00 $28,395.00 $440,465.00

NET PROFIT:

$76,082.00

33.3% 10.9% 10.6% 10.2% 6.9% 5.4% 4.4% 18.3%

Other Income Owner Dues Sponsorship NAAEI Seminars Forms Income

Trade Show

Associate Dues

2017 EXPENSES

42.6% 11.1% 9.1% 4.6% 2.0% 30.6%

Other

General Meetings Furniture/ Equipment

Payroll

State/ National Dues

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COMMITTEES IN ACTION The Greater Charlotte Apartment Association’s mission is to promote the interests of its members through legislative advocacy, education and networking; and supports housing quality, value and choice throughout the Greater Charlotte community.

Our members represent all facets of the multifamily housing industry: apartment owners, executives, developers, builders, investors, property managers, leasing consultants, maintenance personnel, vendors and related business professionals throughout the greater Charlotte area.

Tell others about the GCAA! Member retention and recruiting are essential to the continued success of the Association. If you know a vendor or apartment owner/ operator who could benefit from GCAA membership as you have, please tell them about the association or send us their contact information.

For details and informational materials for prospective members, call us at 704.334.9511 x103 or visit www.greatercaa.org.

6060 Piedmont Row Drive South, Suite 575, Charlotte, NC 28287