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February 2012

Delivering Your Message at the State House


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Table of Contents February 2012 n Issue 1

THE OFFICIAL PUBLICATION OF THE NEW JERSEY APARTMENT ASSOCIATION

F E A T U R E S

12 16 18 22 24 26 28 30 34 I N

5 6 7 8 10 11 37

Government Affairs

Fighting on All Fronts in 2011

Landlord - Tenant

NJ Law Revision Commission Approves Landlord-Tenant Report

Leadership at the Statehouse

Political Action

NJAA PAC: A Record Setting Year Thanks to Our Generous Supporters

Annual Meeting

EXECUTIVE DIRECTOR Jean Maddalon jean@njaa.com VP OF GOVERNMENT AFFAIRS Legislative Editor Conor G. Fennessy conor@njaa.com DIRECTOR OF COMMUNICATIONS Editor Christine Haber christine@njaa.com DIRECTOR OF REGULATORY AFFAIRS & RESEARCH Fast Facts Editor Nicholas Kikis nicholas@njaa.com

NJAA Installs New President, Executive Board and Board of Directors at Annual Membership Meeting

ACCOUNTING & OFFICE MANAGER Eileen Corbett eileen@njaa.com

In the Courts

EDUCATION & EVENTS MANAGER Niambi Ivery niambi@njaa.com

Maintenance Mania

EDUCATION & MEMBER SERVICES COORDINATOR Casey O’Brien casey@njaa.com

Court Authorizes New Hybrid Sewer Rate Structures for Multi-Family Apartments

Sponsorship Opportunities Registration Form

Member Spotlight

CIS Management Inc

Higher Learning

Reduce Energy and Maintenance Costs with State Money

E V E R Y

I S S U E Fast Facts Directors & Officers President’s Message New Members Members in the News Committee Corner Education & Event Calendar

ADMINISTRATIVE ASSISTANT & RECEPTIONIST Jaclyn Olszewski jaclyn@njaa.com New Jersey Apartment Association - HQ 104 Interchange Plaza, Suite 201 Monroe Township, NJ 08831 Tel: (732) 992-0600 Fax: (609) 860-0060 Legislative Office 172 West State Street, Suite 304 Trenton, NJ 08608 Tel: (609) 393-5200 Fax: (609) 393-5222 www.njaa.com Cover & Table of Contents photo by Conor Fennessy, NJAA Trademarks, name brands and other copyrighted items used in this publication are the property of the respective owners. AIM Advertising Contact Christine Haber at christine@njaa.com or 732-992-0603 for rates and deadlines.


Fast Facts

Multifamily Market Update

February 2012

2011 was the second straight year where we saw consistent growth in rents and improvements in rental vacancy rates in New Jersey. Rents in the 3rd quarter of 2011 returned to 2008’s peak level before the worst of the Great Recession roiled housing markets in New Jersey and across the country. In the fourth quarter vacancy rates declined by 0.2% versus the prior quarter while effecve rents (rent aer any concessions) increased to $1,335 compared to $1,322 in the third quarter of 2011. Compared to the same period last year, rents have increased 2.3% while vacancy rates decreased 0.7%, suggesng a ghtening of supply. It is important, however, to take this data with a note a cauous opmism as inflaon again eclipsed rent growth, vacancies remain elevated, and large concessions connue to be offered.

Multifamily Rents and Vacancy Rates Fourth Quarter 2011 versus Fourth Quarter 2010 Asking Rent $

% Chg % Chg Effective Vacancy Q4 '10 to Q4 '10 to Rent $ % Q4 '11 Q4 '11

Bergen County

$ 1,604

2.4%

$ 1,553

2.8%

3.5%

Essex County (Eastern)

$

914

2.8%

$

884

3.0%

5.9%

Essex County (Western)

$ 1,543

2.5%

$ 1,489

2.8%

2.4%

Hudson County

$ 2,633

2.9%

$ 2,541

3.0%

5.4%

Mercer County

$ 1,106

1.3%

$ 1,064

1.3%

3.2%

Middlesex County

$ 1,222

2.0%

$ 1,188

2.3%

2.7%

Monmouth County

$ 1,128

1.3%

$ 1,103

1.6%

3.5%

Morris County

$ 1,264

0.6%

$ 1,205

0.8%

2.3%

Ocean County

$ 1,010

1.2%

$

968

1.6%

2.6%

Passaic County

$ 1,274

1.8%

$ 1,220

2.3%

3.1%

Somerset County

$ 1,287

2.2%

$ 1,249

2.5%

3.9%

Union County

$ 1,218

2.4%

$ 1,148

2.9%

3.7%

Average

$ 1,384

2.1%

$ 1,335

2.3%

3.7%

Source: NJAA Tabulations of Data Provided by Reis, Inc. All rents are gross rents. Asking rents reflect advertised rental rates before any concessions are offered. Effective rents reflect the actual rent charged over the lease term (asking rents minus any concessions).

New Jersey Effective Rent Growth $1,340 $1,330 $1,320

$1,335

$1,310

$1,318

$1,300 $1,290

$1,323

$1,315

$1,308

$1,307

$1,296

$1,296

$1,280

$1,295 $1,287 $1,286

$1,270

$1,314

$1,302

$1,286 $1,276 $1,278

$1,260 $1,250 $1,240

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011


Directors & Officers 2012 Board of Directors Matt Adler, Adler Residential Michael Barry, Applied Development Company Michael Beirne, The Kamson Corporation Andrew Cohen, Rock Properties Joseph Collins, CALECO Vincent Comperatore, Comperatore Associates, Inc. George Cowden, Multi-Housing Depot by ARI Sue D’Angiolillo Apartment Finder William Diggs, Renaissance Equity, LLC Ann Emerson, Equity Residential Larry Falkow, The APTS Jonathan S. Gershen, The Gershen Group Andrew Goldberg, RestoreCore Michael Goldberg, Goldberg Realty Associates Alan R. Hammer, Esq., Brach Eichler LLC George Jacobs, JK Management, LLC Joseph Kazarnovsky, Fieldstone Properties, LLC Tom Kretsch Segal & Segal Ronald S. Ladell, AvalonBay Communities, Inc. Anthony E. Lauro, Affiliated Management, Inc. David Legow, Legow Management Company Jerome J. Lombardo, C.J. Lombardo Company Scott Machlovitz, Hilton Realty Jim McGrath, PRD Management Michael O’Dea, Hekemian & Company, Inc. Diana Penn, JMG Realty, Inc. Marshall Rosen, Solomon Organization Steve Rudolph AFR Furniture Rentals David Siegel, Coinmach Corporation Jeff Smith, Kriegman & Smith, Inc. Larry Stein, Appliance Brokers, LTD Meg Viezbicke, Apartments.com John Zoetjes, American Architectural Window & Door



NJAA Board Officers

President

1st Vice President

Brent Kohere

Michael Haydinger

Home Properties

First Montgomery Group

2nd Vice President

Vice President

William Dailey

Joseph Spadaccini

CIS Management Inc.

The Kamson Corporation

Vice President

Vice President of Associate Affairs

Jack Linefsky

John Cranmer

Value Companies, Inc.

Archer & Greiner

Secretary

Treasurer

Steve Waters

Lynne Aber

Morgan Propeties

Bertram Associates

Past Presidents Jeff Smith, Kriegman & Smith, Inc. Tom Kretsch, Segal & Segal Jonathan S. Gershen, Esq., The Gershen Group David Legow, Esq., Legow Management Company Peter J. Weidhorn Michael Goldberg, Goldberg Realty Associates Paul Kaliades, Renters Legal Liability Insurance Mark S. Rosen, Esq., Solomon Organization Norman A. Feinstein, Esq., The Hampshire Companies Herbert Brien, Lismarc Management Corp. Donald M. Legow, Esq., Legow Management Company Robert Goldberg, Goldberg Realty Associates Andrew B. Abramson, The Value Group, Inc. Richard Segal, Segal & Segal Sam Herzog, S.A.M. Holding Company Alfred Sanzari, Alfred Sanzari Enterprises (1932-2005)

Executive Director Jean Maddalon NJAA

February 2012 | AIM


President’s Message

Involvement Leads to Success by Brent Kohere Home Properties

H

ello NJAA! I am Brent Kohere, Regional VP at Home Properties. As many of you know I was installed as the NJAA President for the next two years at NJAA’s Annual Meeting on January 25. Over 190 members gathered at The Imperia on Easton in Somerset to not only thank Jeff Smith for the last two years of service and welcome me as President for the next two years, but also to install new members of the Executive Board and Board of Directors, and thank our 2012 Diamond Sponsors. My commitment to you over the next two years is to foster involvement. You will hear the following phrase from me often, “You will get out of the Association what you put into it.” Involvement leads to knowledge, involvement creates opportunities, and involvement helps develop better team members and ultimately leads to success. If you have someone in your organization that is on a career path or is a rising star get them involved; they will benefit, you will benefit, and the Association will benefit. Looking forward I am eager to work with our various committees and look to have each group evaluate its structure and be contributors providing input to the Association staff, specifically the Legislative Committee and the Vendors Committee. Our associate or vendor AIM | February 2012

members contribute significant money to fuel the engine of the Association. They support our industry, but their voices as business people lend a different perspective and can provide direction to our industry if we listen. The Association celebrated its 25th Anniversary last year, and if we all take a moment to think back to its beginning as a collective group of owners, and the subsequent growth that has occurred, it is evident that the multi-family housing industry in this State particularly needs our Association, and the Association needs be active in representing our interests. We will continue to promote our industry and provide education to raise the bar on the professionalism that is vital to our image. Events from our Annual Conference & Expo to Maintenance Mania will continue to be outstanding. I am also very eager to work on a “Strategic Plan” for the Association, and we will soon be asking for volunteers to work with us in that regard. The final touches are being put on the economic impact report prepared by the Rutgers University Bloustein School. Thank you to all who participated in providing data, our industry is significant to this State and this data will aid in making our presence known in Trenton.

While we are in very good shape as an Association, we continue to have much work to do in order to protect our industry. I want to thank all NJAA members who are volunteering their time for the Association. This organization rises and falls on the strength and involvement of its membership. I encourage all members to get involved, I can personally attest to my previous comment that you do get out of the Association what you put in. This Association is not about the individual or the company, it is about an industry, and our involvement makes that industry better here in New Jersey. Get on a committee, volunteer for a taskforce, participate in any way you are comfortable. Your expertise is essential to maintaining and improving the NJAA. Next up on the events calendar is Maintenance Mania, which will be held at a new location, the NJ Convention & Expo Center in Somerset. I look forward to seeing you all there! With all that said, I am looking forward to hitting the ground running. I am only a call or email away, so please do not hesitate to contact me. I want to again express my gratitude to Jeff for not only getting me up to date over the last several months, but also for his hard work over the last two years. n




New Members

Welcome New Members The New Jersey Apartment Association is proud to welcome the following new members. If you know of anyone who might be interested in membership please contact Casey O’Brien at casey@njaa.com and help strengthen your Association and the multi-family housing industry.

Owners 6803 Boulevard East, LLC Mr. Michael Martirano 4 Tanager Lane Morristown, NJ 07960 Phone: (201) 588-5483 C & S Jefferson, LLC Ms. Melissa Lapper P.O. Box 817 Somerville, NJ 08876 Phone: (908) 722-7272 Fax: (908) 722-9215 Elias Mallouk Realty Corporation Mr. Jeff Mallouk 411 Hempstead Turnpike, Suite 101 West Hempstead, NY 11552 Phone: (516) 280-2890 Fax: (516) 280-2893 Priderock Capital Management Ms. Laura McCabe 601 Riverside Avenue Lyndhurst, NJ 07071 Phone: (201) 708-6444 Fax: (201) 939-2288

Associates Capture the Market Mr. Bill DeMarco 1805 Royal Lane, Suite 102 Dallas, TX 75220 Phone: (215) 704-5665 Video Production Dogwood Building Supply Mr. Joe Copsey 328 North Spring Street Winston Salem, NC 27101 Phone: (336) 650-9724 Fax: (336) 722-8800 Building Supply, Renovation and Development 

E & G Exterminators Inc. Mr. Ed Gorczynski 122 North Broadway South Amboy, NJ 08879 Phone: (732) 721-6368 Fax: (732) 721-5389 Exterminating/Pest Control

G5 Ms. Stacy O’Keefe 550 NW Franklin Avenue, Suite 200 Bend, OR 97701 Phone: (541) 633-7271 Fax: (541) 225-5166 Internet Services

EAM Associates Mr. Rick Marx 3350 Highway 138 Building 2, Suite 223 Wall, NJ 07719 Phone: (732) 556-9190 Fax: (732) 556-9195 Energy Management, Purchasing & Consulting

GreenTech Energy Services Mr. Ed Hambor 122 East Kings Highway, Suite 503 Maple Shade, NJ 08052 Phone: (856) 439-9400 Fax: (856) 778-1668 Lighting Consultation and Supply

Eastern Contractor Services Mr. Michael Colaiacovo 106 Iron Mountain Road Mine Hill, NJ 07803 Phone: (973) 361-9505 Fax: (973) 361-0206 Insulation Contractors EnTech Digital Controls, Inc. Ms. Laura Bendayan P.O. Box 339 Lakewood, NJ 08701 Phone: (732) 730-1595 Fax: (732) 730-0695 Energy Management Ferguson Enterprises Mr. Bill Havard 190 Oberlin Avenue North Lakewood, NJ 08701 Phone: (732) 425-8635 Fax: (732) 905-9628 Plumbing

Hargett Leasing Mr. Michael Hargett 4417 Walter Nelson Road North Bergen, NJ 28227 Phone: (704) 607-1756 Leasing Services Liberty Pest Management Services Mr. Paul Boisvert P.O. Box 520 Howell, NJ 07731 Phone: (732) 585-6756 Fax: (732) 612-1045 Exterminating/Pest Control McKirdy & Riskin, P.A. Mr. Richard P. DeAngelis, Jr. 136 South Street Morristown, NJ 07962 Phone: (973) 539-8900 Fax: (973) 984-5529 Attorneys

February 2012 | AIM


New Members McPuff Chimney Services Mr. Tom Spinelli 1220 Route 28 Branchburg, NJ 08876 Phone: (800) 339-1492 Fax: (908) 722-3081 Chimney Services

NVE Bank Mr. David May 76 Engle Street Englewood, NJ 07631 Phone: (201) 916-2800 Fax: (201) 568-9821 Mortgage Services

Southern Pool Furniture Mr. Don O’Grady 2330 Wyandotte Road Willow Grove, PA 19090 Phone: (215) 659-8929 Fax: (215) 659-8090 Outdoor Furniture

Mr. Ugly LLC Mr. Cliff Wolff 254 Route 46 East Mine Hill, NJ 07803 Phone: (973) 537-0537 Fax: (973) 537-9222 Bathtub & Tile Refinishing

Petro Jersey Industries Ms. Christina Racelis 990 Cedar Bridge Avenue Brick, NJ 08723 Phone: (800) 707-2022 Fax: (732) 477-7513 Environmental Testing, Consulting/Cleanup

Supreme Metro Corporation Mr. Jason E. Ciavarro 1499 Jersey Street South Plainfield, NJ 07080 Phone: (908) 561-3590 Fax: (908) 561-3595 Asphalt/Paving

North Jersey Board Up Ms. Maria Benson P.O. Box 441 Elmwood Park, NJ 07407 Phone: (877) 412-6273 Fax: (201) 533-0200 Board Up

Pierce-Eislen, Inc. Mr. Ron Brock, Sr. 9200 E. Prima Center Pkwy, Suite 150 Scottsdale, AZ 85258 Phone: (480) 663-1149 Fax: (480) 663-6269 Data/Market Research

Woodruff Energy US, LLC Mr. Robert Petracci 73 Water Street P.O. Box 777 Bridgeton, NJ 08203 Phone: (856) 455-1111 Energy Management, Purchasing & Consulting

Our Experience Has Brought Us to New Heights in Landlord/Tenant Law!

Contact Jennifer L. Alexander, Esq. 415 Route 10, Suites 6-8 Randolph, NJ 07869 Tel: (973) 366-1188 Fax: (973) 366-4848

60 East 42nd Street, Suite 1735 New York, NY 10165 Tel: (212) 867-6069 Fax: (646) 998-8029

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AIM | February 2012




Member News

Member News

Congratulations! The Wyckoff Zoning Board voted Jerome Lombardo as the new chairman. “I love Wyckoff as much as you can love a town,” Lombardo said. Neil Budhram Joins SW24 as Fusion Centre Manager SecureWatch24 has announced that Neil Budhram has joined the company as Manager of its new Fusion Centrea state-of-the-art monitoring facility currently under construction in Moonachie. Budhram is a well-known alarm monitoring industry veteran who managed the DGA Security Systems central station facility in New York City for 15 years prior to joining SW24. He also served as Head Trainer for DGA. Community Investment Strategies Takes the Solar Power Plunge Community Investment Strategies (CIS), Inc., has adopted solar-powered energy at three of it’s apartment complexes: Rosegate, Heritage Village at Elizabeth, and Heritage Village at Manalapan. In Rahway, 627 solar panels have been mounted on the south-facing roof of the Rosegate apartment building, producing 144,290 kWh of electricity. Heritage Village at Elizabeth is also reaping the bright benefits of solar energy with 390 solar panels, producing 89,700 kWh of electricity. While on the glassy roof of Heritage Village 10

at Manalapan, 627 solar panels are producing 144,290 kWh of electricity. These projects are intended to reduce utility costs through energy efficiency, explained Mark Issa, president of CIS Construction LLC. HFF New Jersey Hires Tom Graziano as Director in Debt Placement Group HFF announced that Tom Graziano has joined the firm as a director in its New Jersey office. Mr. Graziano will focus on debt, structured finance and joint venture equity transactions for office, retail, multi-housing and industrial properties throughout the northeastern United States. Prior to joining HFF, Mr. Graziano was a vice president in the Loan Portfolio Strategies Group of Keefe, Bruyette & Woods, Inc. in New York.

Officials from Fort Lee and BNE Real Estate Group Break Ground on Twenty50 Luxury Rental Building Officials from Fort Lee and developer BNE Real Estate Group recently broke ground on Twenty50, a 194-unit luxury rental building rising in the shadow of the George Washington Bridge. Once completed, the $70 million, 12-story residential building will include 194 rental units, many of which will boast spectacular views of the Hudson River and George Washington Bridge. Construction is scheduled to be complete by September, 2013.

Levy, Ehrlich & Petriello Announces New Name Levy, Ehrlich & Petriello, PC has announced that as of February 1, 2012 the firm name will be Ehrlich, Petriello, Gudin & Plaza, PC. Their three offices are located in Newark, Morristown and NYC. Congratulations! The Kislak Company Promotes Robert Holland to President The Kislak Company Inc. has promoted Robert Holland to president and co-managing director. Holland previously served as a senior vice president and a co-managing director. He assumes the duties of president from Jeffrey Wiener, who remains with the firm as a co-managing director. Holland joined Kislak in 1984. He has received Kislak’s Production Award more than 10 times and is also a multiple recipient of the firm’s Salesperson of the Year Award. Holland’s sales total more than $3 billion. Congratulations! David Chesky and Mark McCann have both been promoted to Senior Vice President of The Falcon Group, Engineering, Architecture & Energy Consultants. “Dave and Mark continue to display their industry experience and leadership skills that allow for us to maintain our exceptional client satisfaction record. They both have become great examples of what our team is capable of.” Andrew Amorosi, P.E., R.S., Principal. n

February 2012 | AIM


Committee Corner

Committee Corner Board of Directors On Wednesday, January 25 the NJAA Board of Directors met and among other agenda items, approved a slate of Board nominees for the 2012-2015 term. A new conflict of interest policy was also introduced and signed by each Board member.

Your fellow members at work

each company individually to welcome them to NJAA and provide additional information on the benefits of membership. Based on the success of the educational seminar this past November, the committee will host a new, informative session in the spring aimed directly at associate members. Keep an eye out for more information regarding this session in the coming weeks.

for most toys contributed to both the 2010 and 2011 Holiday Parties was presented to The Kamson Corporation, and an award for photographing and promoting the event was presented to The APTS Magazine. Thank you again to everyone for your contributions to the NJAA Charitable Fund, it is our goal to give back to the communities we serve and the 2011!

photo by Brad Hamilton, Brad Hamilton Photography

Convention & Education Committees The Convention and Education committees met jointly to discuss educational offerings and are working towards providing a very relevant and informative combination of sessions at the 2012 Conference & Expo. This year’s education will include topics such as Maintenance For Manager, Recycling and Sustainability for the Apartment Industry as well as 2 sessions geared specifically toward the Affordable Housing Market. We will be returning to the AC Convention Center for the 23rd Annual Conference on May 21 to 23rd with the Borgata as our host hotel. Vendors Committee On Wednesday January 18, the NJAA’s Vendors Committee met to discuss associate memberships and exhibitor information for the upcoming Conference & Expo. The Vendors Committee will be now contributing to the assimilation of new associate members by contacting AIM | February 2012

photo by Larry Falkow, The Apts Magazine

Looking for a Vendor?

Membership Committee The 2012 New Member Reception, held prior to the Annual Meeting on January 25th was a success with over 70 new members in attendance. New members had the chance to mingle with our Board of Directors, Membership Committee and Vendors Committee giving them a chance to make connections within the industry and find out about the many benefits the Association provides to its members.

Be sure to check out the Classified Section at njaa.com. With just one click you will be directed to a list of our vendor members sorted by the services they provide. Vendors: Does your company fall under more than one classified heading? You can purchase additional headings for $50 each, contact Casey O’Brien at casey@njaa.com for more information.

The NJAA Charitable Fund Children’s Holiday Party Committee Four Holiday Party awards were presented at the 2012 Annual Meeting on January 25 to members for their contributions to the party. Coinmach Corporation and Multi-Housing Depot by ARI both received awards for picking up toys from member-hosted toy drives throughout the state. The award

Take Advantage of NJAA’s Online Job Bank Are you looking to fill a position within your company? Visit the job bank at njaa.com and submit the position online. This is a free service included in your membership.

11


G o ve r nment Affairs

Fighting on All Fronts in 2011 Utility Submetering, Redundant Facade Inspections, Rent Control, Duplicative Municipal Inspections, Credit Checks, COAH and Bed Bugs by Conor G. Fennessy VP of Government Affairs

T

he primary mission of the NJAA is to represent interests of the multi-family industry before State government officials – legislators, regulators, policymakers, and staff – who often times have little or no understanding of what it takes to build, own and manage an apartment community in the Garden State. When those outside the multi-family sector look at our industry, most give little thought to the complexities of professionally managing rental property. Some think you simply collect the rents on the first of the month and head to the bank, or Vegas. Others might have a grasp of various disparate pieces of the job – managing the physical attributes of the property or managing your onsite staff – but few have a real understanding of the greater picture. It’s the NJAA job, taking the knowledge and expertise you, as an NJAA member provide us, to translate that into manageable, digestible and understandable data points for our leaders at the State House and in the various State agencies. Knowledge really is power, and working with you, our members, your knowledge empowers the NJAA’s professional staff to educate and inform decision makers. The election of Chris Christie and Kim Guadagno in 2009 changed the ‘game’ in Trenton. Divided state government, with Republicans running the front office and Democrats controlling the Senate and Assembly, makes lobbying on any issue twice as difficult. No longer is anyone assured that a bill will get signed simply because it passed two houses of the Legislature. The same is true in the other direction; just because a Democratically-controlled Legislature passed a certain bill does not (automatically) ensure that a Republican Governor will veto it. Legislative advocacy, and advocacy with the Front Office, are two different games, requiring different tactics, different messaging (even on the same issue), and, often, leveraging different relationships. 12

In 2011 we engaged on both Executive and Legislative fronts; playing offense and defense when required, and enjoyed several successes. As of December 2011, there were over 8,000 pieces of legislation pending before the “part time” General Assembly and Senate. Of that number, the NJAA actively tracked over 1,000 bills. (Never a dull moment.) Key policy issues we played ‘both sides of the ball’ on in 2011 include: Conservation Through Sub-Metering Simply put; we achieved a major victory on sub-metering after nearly a decade of struggle. In August of 2011, the Board of Public Utilities (BPU) approved our petition for water sub-metering in new multi-family construction. This was the first time the BPU had ever said “Yes” to any type of sub-metering in multi-family rental housing. In fact, in the two years since the Christie-Guadagno administration began, we have seen more success on this critical conservation issue than ever before. Sub-metering was included in the Lt Governor’s bi-partisan Red Tape Report, April 2010; included in Governor Christie’s draft Energy Master Plan (EMP), June 2011; the BPU approved our NJAA petition for water sub-metering, August 2011; and sub-metering was included in the final EMP, December 2011. We still have some unfinished business on the issue of retro-fits, and sub-metering’s specific inclusion in the final EMP gives us a springboard as we look to finish our work in 2012. New Jersey had long been the lone holdout of the 50 states in not allowing sub-metering in rental housing. After 2011, that dubious distinction is no more. Redundant Façade Inspection Requirements Sometimes bad ideas really are the hardest to kill. Legislation modeled after a local façade inspection ordinance in Philadelphia was introduced on this side of February 2012 | AIM


G o ve r n m e n t A f f a i r s the Delaware, and the NJAA spent all of 2011 – and into 2012 – trying to educate decision makers and stop the unnecessary initiative. From a policy perspective we had the ‘winning’ argument: building façades and exteriors of multi-family properties already have stringent inspection and maintenance requirements under the landmark Hotel & Multiple Dwelling Act. We saw no need to suddenly and dramatically change a system in New Jersey which had worked well for 45 years. No one we spoke with in the Legislature or at the DCA could even recall the last time there was a problem with a multi-family building’s façade, so we knew the current statewide system of mandatory inspection and regular maintenance was working. In fact, the issues which arose in Philadelphia were with commercial buildings, and Philadelphia has no regulatory equivalent to NJ’s Hotel & Multiple Dwelling Act. Unfortunately, politics trumped policy on this issue, and a controversial bill, which should have been quietly put into a drawer, narrowly passed both houses in the final hours of Lame Duck. We immediately submitted a veto request to Governor Christie – the first such request the NJAA had submitted to any sitting Governor in well over a decade. Thankfully, the Governor heard our call and utilized a pocket veto to put this bad idea out of its misery. This was a major victory for the NJAA, our members and your residents. Eliminating the New Construction Exemption In Trenton, it oftentimes can take years for bad policy ideas to die, and sometimes it seems like the worst ideas really never die. The later was the case in 2011, as the NJAA continued to fight against legislation seeking to eliminate the “new construction exemption” so important to all of us. The new construction exempt is critical to our builder and developer members, and any policy initiative that takes aim at dismantling this important policy threatens the health and long-term vitality of the entire industry. The bill we opposed in 2011 was aimed at repealing the exemption on new rentals at 55+ communities. We opposed the bill in the Senate, where it passed both Committee and on the Floor by the slimmest of margins, and continued the fight in the Assembly. Thankfully, cooler heads prevailed during the post-election Lame Duck session, and we were able to put the breaks on this unwise initiative. (Never fear, the bill has already been introduced in the new 2012-2013 session and we know we will have to fight this fight once again.) Eliminating Duplicative Municipal Inspections New Jersey is the only state in the nation requiring AIM | February 2012

mandatory registration and inspection of all rental properties of more than 3 units. This law, the Hotel & Multiple Dwelling Act, on the books since 1967, has served property owners and renters well, and provided both uniformity and predictability across all 566 of our cities and towns. Unfortunately, New Jersey also allows those same 566 municipalities to enact their own local registration and inspection requirements. This overlapping jurisdiction leads to redundancy and duplication of government services, adding inconvenience for our residents, and increases cost for professional multi-family operators – while having no discernable improvement in the quality of the rental housing stock. The NJAA, working with a bi-partisan team of Senator Jeff Van Drew (D-Cape May) and Senator Steve Oroho (R-Sussex) in the Upper House, were able to secure Committee and full Senate approval in the spring of 2011. We met with Assembly Speaker Sheila Oliver (D-Essex), who expressed concerns with the bill, as related by two of her local mayors, and began what evolved into a season of shuttle diplomacy. We engaged all summer and fall with the League of Municipalities and other municipal stakeholders, seeking to reach a compromise that would allow us to move the bill through the Assembly. Meeting after meeting was held, and we slowly began to see genuine progress by the early fall. Unfortunately, after the November elections, and on the eve of lame Duck, the League suddenly announced they were not comfortable continuing talks, and walked away. Our hopes were dashed by this sudden reversal. We look forward to engaging the League again in 2012, and are hopeful that there may be room to achieve a lasting compromise. Prohibiting Use of Credit in Hiring Process After two false starts, legislation aimed at prohibiting an employer’s ability to check the credit of a prospective employee gained traction on 2011. In both Senate and Assembly Committees, the NJAA was the only trade association to secure approval of amendments exempting our industry from the proposed prohibition. The Senate version passed the full chamber, but momentum stalled on the Assembly late in the session. We expect this issue to be back on the Legislature’s policy agenda in 2012, and it remains on our watch list. COAH Reform A signature issue of the Governor’s campaign in 2009, when he said he would “blow up” COAH when he got to the State House. After a year of hearings and debate in 2010 the Legislature passed their own versions of ‘reform.’ 13


G o ve r nment Affairs continued from page 13 Fighting on All Fronts in 2011 The NJAA successfully fought-off repeated attempts from the NJ League of Municipalities to include rent controlled apartments under the definition of “Affordable housing” for purposes of COAH (or its successor) credit. Rent controlled apartments are not deed restricted, not subsidized by the government, and residents are not subject to any income qualifications. Rent controlled apartments are privately built, privately financed and managed – and are quite unlike government controlled “Affordable” units. Gov. Christie conditionally vetoed the entire COAH package in January 2011 and sent it back for more work, but the bill was quickly withdrawn by the sponsors without additional action. We expect COAH reform to arise in 2012, and will keep NJAA members apprised. Bed Bugs An issue the NJAA has actively engaged on since 2008, the main bill easily passed the General Assembly with bipartisan support in early 2010, but never saw action in the Senate. We expect this issue to be back for another round in the new session, and will continue to push for legislation

that is friendly to professional multi-family operators, and recognizes that it stakes all three parties – owners, professional exterminators and residents – working cooperatively to defeat this resilient creature. Like I said earlier; 2011 was a little bit of offense and a little bit of defense. That comes with the territory in a progressive state like New Jersey and at the State House where we have divided government. 2012 looks to be much of the same, and we are ready for the challenge. Effectively presenting the views of professional rental housing providers and fostering policies that best serve the one in three New Jerseyans who call apartment living “home” is a key part of the NJAA’s mission. The NJAA is the recognized voice of multi-family housing and that will never change. Through our active engagement with elected officials, regulators, and policy makers, the NJAA will continue to highlight the many advantages of apartment living and support policies to advance the continued availability, affordability, viability and sustainability of multi-family of rental housing in New Jersey. n

Advertise in the 2012 Membership Directory The NJAA Membership Directory is a great resource and valuable tool allowing members to connect with current and future clients and to find suppliers and service providers.

2011 Membership Directory Headquarters: 104 Interchange Plaza, Suite 201 Monroe Township, NJ 08831 Tel (732) 992-0600 ● Fax (609) 860-0060 Legislative Office: 172 West State Street, Suite 304 Trenton, NJ 08608 Tel (609) 393-5200 ● Fax (609) 393-5222

Celebrating 25 Years of Strength in Multifamily Housing

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All ads must be received in PDF format by February 20, 2012. 2012 Advertising Rates Half Page, Black & White

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Contact Christine Haber at 732-992-0603 or christine@njaa.com for more information. 14

February 2012 | AIM


N e w s fr o m N a t i o n a l

Federal Update by Greg Brown, NAA

The central question

everyone asks in January of a campaign year is: Can Congress really get anything done when almost everyone, including the President, is running for re-election and the stakes are so high? For NAA and the apartment industry, deliberations will continue this year in Congress on issues of significant importance and we have to be engaged. We are slowly getting closer to reforms to the Section 8 inspection rules that could significantly lesson the burdens on current owners who accept Section 8 and perhaps draw more owners into the program who presently will not participate because of things such as the inspection requirements. As well, the reform of the housing finance system, specifically Fannie Mae and Freddie Mac, will continue to be a hot topic. The nation’s tax system is being teed up for its own reform and we will want to pay close attention to items such as proposed changes in the corporate tax rate. Specifically, we want to ensure that entities organized as a “pass-thru� do not get the short end of the proverbial stick when it comes to paying for cutting corporate rates. Finally, our advocacy efforts will continue with federal regulators on issues such as pool drain cover requirements from the Consumer Product Safety Commission and new fair housing disparate impact rules proposed by the U.S. Department of Housing and Urban Development. These are just some of the issues we know are on the menu this year; plenty more are sure to arise. n

AIM | February 2012

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L a n d l ord - Tenant

NJ Law Revision Commission Approves Landlord-Tenant Report Proposal would modernize landlord-tenant laws for the 21st Century, but faces an uncertain path in the New Jersey Legislature

by Nicholas Kikis Director of Regulatory Affairs & Research

A

fter three years of debate, discussion, and consideration, the New Jersey Law Revision Commission voted unanimously on January 19, 2012 to approve and release a 200 page report that would modernize the state’s landlord-tenant laws by redrafting them with a focus on clarity and consolidating them into a single title. The project takes the state’s myriad landlord tenant laws, which are essentially hundreds of separate pieces of legislation that were enacted piecemeal over centuries and are scattered throughout the law books, and create a single, consistent set of rules that are easy to find and understand. It involved improving language, removing archaic provisions, incorporating case law into the statutes, removing obsolete rules, streamlining unclear provisions, and incorporating modern technologies and practices in laws that never imagined them. The NJAA has been supportive of this project from its inception. Our support was motivated by the belief that making the rules governing the landlord-tenant relationship more accessible and understandable would benefit not just the one-in-three New Jersey households who proudly call apartment living ‘home,’ but also the thousands of multihousing professionals who labor everyday to provide safe, clean, quality affordable rental housing across the state. While the report is far from perfect, it is an important evolution from the archaic, and sometimes contradictory, provisions in the current law, and creates an excellent framework for moving towards a more consistent and approachable law for apartment owners and residents. The report does not change the substance of the law significantly, as the goal was to consolidate and ensure consistency, organization, and accessibility. There were, however, sections of the law where the substance was revised, and each of these areas of revision were heavily vetted by the Commission which responded to detailed comments and input from wide ranging stakeholders 16

that included organizations such as the Apartment Association, Legal Services of New Jersey, the New Jersey Tenants Organization, New Jersey Citizen Action, and the Community Health Law Project, attorneys involved in the practices, and well as detailed input from Honorable Mahlon L. Fast, F.S.C. Ret., who authored Landlord-Tenant and Related Issues in the Superior Court of New Jersey (3rd Ed. 2008) whose experience as a judge added an important perspective. The following is a sampling of some of the substantive changes that were made in the revision document. Truth-in-Renting Statement –The report would allow renters the option to choose whether to receive the Truth-in-Renting Statement electronically, saving paper and ensuring that they always have the most up-to-date statement available. Owners would be subject to a fine of $100 for each violation. Flood Zone Notification – Current law requires that certain apartment owners give notice to residents when a property is located in a “flood zone or area,” however, the definitions are imprecise, and much of New Jersey could be deemed to be covered. The report changes the requirement, tying it to the owners “actual knowledge” and following FEMA’s definition of a Special Flood Hazard Area. Lease Termination After Domestic Violence – Those who commit acts of domestic violence are required to vacate (unless they reach an agreement with the owner) when the victim of domestic violence chooses to terminate a joint lease. A loophole in the original law, however, gave unintended protections to the abuser. The report fixes this mostly by placing jurisdiction for disputes with the landlord-tenant court.

February 2012 | AIM


L a n d l o r d - Te n a n t Landlord Registration – The Act updates the procedure for registering with the state for communities of 3+ units or with the municipality for rented single-family homes or duplexes. An owner would be able to supply the information contained in the “Certificate of Registration” in a lease rather than needing to supply an actual photocopy of the certificate as is required under current law. Security Deposit Act – There was possibly no landlord tenant statute more opaquely written than the Security Deposit Act. The report significantly improves the language, while retaining the essence of the statute, which limits security deposits to 1 ½ times one month’s rent, requires owners keep funds separate in trust, return accrued interest to tenants as either a payment or a rent credit, and return the funds (less any itemized deductions for damages) within prescribed time limits. For the first time, the law regulates nonrefundable fees, but provides an allowance for a replacement fee or a surety bond to be paid in lieu of a security deposit and continues to allow nonrefundable pet fees, amenity fees, and the like. Eviction – The report makes several changes to the eviction law by using more descriptive terms (such as replacing “warrant for removal” with “warrant for eviction”),

provides model notices to make clear what information is required to be given, and improves the lease renewal process by replacing the “notice to quit” language with a “notice of increased rent” or “notice of change in lease terms.” The report adds several new causes for eviction in an attempt to protect other residents from potential harm by allowing for the eviction of tenants who have engaged in certain dangerous and/or criminal activity. Finally the report harmonizes the eviction law between multifamily residential, one- and two- family residential, and commercial properties. While not every change was perfect, the finished product marks a significant evolution to the current law, and creates one place where apartment owners and residents can learn of the rights given to them and obligations imposed on them by the law. The report now heads to the New Jersey Legislature as a bill for its consideration. The NJAA looks forward to working with the Law Revision Commission, bill sponsors, and legislative leadership to ensure that the principals that guided this revision are maintained throughout the legislative process. A draft copy of the final report is available on the New Jersey Law Revision Commission website at http://lawrev.state.nj.us/. n

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Leadership at the Statehouse The 2012 mid-term elections brought little change to Trenton by way of altering the political landscape of the Legislature. Democrats retained comfortable majorities in both the Senate and General Assembly, and both Senate President Sweeney (D-Gloucester) and Assembly Speaker Oliver (D-Essex) were re-elected. The biggest change we did see as the 215th New Jersey Legislature commenced, was at Majority Leader, as both houses elected new deputies. Additionally, the sudden and tragic passing of Asm Alex DeCroce (R-Morris) necessitated a change in leadership of the Republican Caucus in the Lower House, where Asm Jon Bramnick (R-Union) was elevated to lead the GOP minority.

New Leaders Assemblyman Lou Greenwald (D-Camden) Majority Leader

Assemblyman Lou Greenwald has represented New Jersey’s 6th Legislative District since 1996. He currently serves as the Assembly Majority Leader. Asm. Greenwald was NJAA’s Legislator of the Year in 2005. During his tenure as Chairman of the Budget Committee, he committed himself to responsibly balancing the state’s finances. A leader in protecting children, he was instrumental in creating the Amber Alert system to help save abducted children. He continues to fight to expand the FamilyCare health care program, which covers uninsured kids and families. A staunch public health advocate, Asm. Greenwald authored provisions to educate the public about the dangers of meningitis and fought to preserve charity care funding for New Jersey’s hospitals. He was a critical advocate in bringing a branch of the Cancer Institute of New Jersey to South Jersey, ensuring cancer patients would not have to cross the Delaware just to get the treatment they needed. Assemblyman Greenwald has also been recognized as a leading advocate for the developmentally disabled, preserving funding and pushing for better care for one of NJ’s most vulnerable populations. Facing skyrocketing auto insurance rates, he was the architect of 2003 legislation to increase competition in New Jersey’s broken auto insurance market. In 2005, Assemblyman Greenwald participated in the Clean Elections program, designed to empower the public by removing the perception of special interest influence from legislative elections, as part of the first team in history to be named “Clean Candidates.” Assemblyman Greenwald continues to support measures to further empower the public’s participation in the political and legislative process. He currently resides in Voorhees with his wife, Cynthia Ingraldi Greenwald, and their three children.

Senator Loretta Weinberg (D-Bergen) Majority Leader

Throughout her career as a member of the Teaneck Township Council, the New Jersey General Assembly, and the New Jersey State Senate, Loretta Weinberg has championed issues affecting women, children, families, health care, gun safety, and other quality- of-life concerns. She has been dedicated to the preservation of the family for more than three decades of outstanding public service and was instrumental in getting laws passed to protect new mothers from early hospital discharge and to stop drunk drivers and handgun violence from claiming any more innocent victims. From 1975 to 1985, Loretta was the Assistant Administrator to the County of Bergen, and from 1990 to 1994 was a member of the Teaneck City Council. She was elected to the New Jersey General Assembly in 1992. As an Assemblywoman representing the 37th district, Loretta served as Majority Conference Leader, Chairwoman of the Health and Human Services Committee, and Vice Chairwoman of the Family, Women, and Children’s Services Committee. Loretta’s focus on health care issues led to the Speaker of the General Assembly appointing her to the Mandated Health Benefits Advisory Committee in 2004. In November 2005, Loretta was elected to the New Jersey State Senate, where she is continuing her work to improve the lives of New Jersey residents. She is currently the Chair of the Senate Health, Human Services & Senior Citizens Committee and also serves on the Senate Judiciary Committee.


Assemblyman Jon M. Bramnick (R-Union) Republican Leader

Assemblyman Jon M. Bramnick is serving his fourth term in the New Jersey General Assembly representing District 21, which includes 16 towns in Essex, Morris, Somerset and Union counties. Assemblyman Bramnick was selected by his colleagues to serve as the Conference Leader, making him the second highest-ranking member of the Republican Caucus in the Assembly. He is also the ranking member of the Assembly Law and Public Safety Committee and a member of the State House Commission and Bipartisan Leadership Committee. He previously served as chairman of the Assembly Republican Policy Committee and as the Assembly Republican Whip. Assemblyman Bramnick served on the Plainfield City Council from 1984 to 1991. He was an assistant professor of business law at Rider University from 1984 to 1989 and an adjunct professor of business law at Rutgers University from 1989 to 1990, where he won the “Inspirational Professor of the Year” Award. He is a partner in the law firm of Bramnick, Rodriguez, Mitterhoff, Grabas & Woodruff, based in Scotch Plains. Assemblyman Bramnick holds the title “Funniest Lawyer in New Jersey” after winning contests sponsored by the bar association at Rascals Comedy Club. He often volunteers his services as a comedic auctioneer on behalf of non-profit organizations, including the American Red Cross, the Diabetes Foundation of New Jersey, Elijah’s Promise Soup Kitchen, the AIDS Benefit Committee, the Boy Scouts of America and the New Jersey State Symphony. He is currently on the board of the Good Grief center for children in Summit. Assemblyman Bramnick has been honored with the Outstanding Legislator of the Year award from the NJ Society for Environmental & Economic Development, the Legislator of the Year award from the Food Council Committee for Good Government, the 2009 Spirit of the YMCA Award, and the 2010 Government Leadership Award from the Advocates for New Jersey History. He was also named a “Guardian of Small Business” by the National Federation of Independent Businesses. Assemblyman Bramnick resides in Westfield with his wife Patricia and has two grown children, Brent and Abigail.

New Committee Member Senator Brian P. Stack (D-Hudson) Member - Community and Urban Affairs

Since being elected to the New Jersey State Senate in 2007, Brian P. Stack has been widely recognized as a strong advocate for urban and working family issues. Stack began public life at the age of fourteen, when he became involved with civic matters as a tenant advocate and community organizer in 1985. Senator Stack also serves as Mayor of Union City, a community which has enjoyed a renaissance under his leadership, creating safer streets, improved infrastructure and one of the strongest urban school districts in New Jersey. He assumed the position of Mayor in October 2000, and was re-elected to fouryear terms in 2002 and 2006. Senator Stack served as an aide in the 33rd Legislative District office from 1983 to 1984 and from 1986 to 1988. In Union City, he served as an administrative assistant to the Commissioner of Parks and Public Property from 1986 to 1990. He also served as Deputy Director of Public Affairs from 1995 to 1996. Additionally, he served on the Hudson County Board of Chosen Freeholders from 2000 to 2004. Stack relinquished his Freeholder position as a result of his election to the New Jersey General Assembly in 2003. The Brian P. Stack Civic Association has sponsored generous Thanksgiving Turkey giveaways and holiday parties for children, in addition to providing an array of social services throughout the year to tens of thousands of residents since 1987. Senator Stack prides his service on his tireless commitment to the constituents he is sworn to serve.


The mid-point of Governor Chris Christie and Lt Gov. Kim Guadagno’s first term also saw the arrival of two new cabinet members, as DCA Commissioner Lori Grifa and BPU President Lee Solomon both departed. The NJAA enjoyed close relationships with both leaders, and we look forward to building equally strong ties to their successors at these two key agencies.

New Cabinet Members Commissioner Richard E. Constable III, Esq. Department of Community Affairs

Richard E. Constable III, Esq. is the Acting Commissioner of the New Jersey Department of Community Affairs. He leads a cabinet-level department focused on assisting municipalities to become more efficient, while lowering property taxes, as well as encouraging sensible development in all of New Jersey’s cities and towns. Mr. Constable was raised in East Orange, New Jersey. He graduated magna cum laude from the University of Michigan, where he was a Harry S. Truman Scholar. Mr. Constable earned both his law degree and Masters in Government Administration from the University of Pennsylvania in 1997. After graduation he clerked for Justice Alan Page of the Minnesota Supreme Court. Prior to joining the Department of Community Affairs, Mr. Constable managed the day-to-day operations at the NJ Department of Labor and Workforce Development, as Deputy Commissioner. Between 2002 to 2010, Mr. Constable worked as a federal prosecutor with the U.S. Attorney’s Office in Newark. There he regularly investigated and prosecuted high-profile elected and appointed officials including state senators, assemblymen, and mayors, charged with bribery and extortion. Before his post with the U.S. Attorney’s Office, Mr. Constable worked as a litigation associate with Sullivan & Cromwell LLP, in New York City from 1998 to 2002. In that role he worked on sophisticated securities and antitrust matters. In addition to overseeing the Department of Community Affairs, Mr. Constable also serves on the State Ethics Commission and the State Health Benefit Plan Design Committee. Mr. Constable lives in Orange.

President Robert Hanna Board of Public Utilities

Robert M. Hanna, Esquire, was named by Governor Christopher J. Christie as President to the N.J. Board of Public Utilities (BPU) on December 21, 2011. President Bob Hanna also serves as a member of the Governor’s Cabinet. Prior to his nomination, Bob served as Director of the Division of Law within the New Jersey Department of Law and Public Safety. As Director, Bob was responsible for overseeing a division with more than 500 attorneys and for the supervision of Division of Law matters. Prior to joining the Office of the N.J. Attorney General in January 2010, Bob was a director in the Newark-based law firm of Gibbons P.C., where he began working in May 2006. Previously, Bob joined the Civil Division of the U.S. Attorney’s Office for the District of New Jersey in May 1990. There he handled a wide array of affirmative and defensive civil matters, including appeals, on behalf of the federal government. In 1997, Bob joined the Frauds Division at the U.S. Attorney’s Office, later serving in a variety of roles, including Chief of the Securities - Health Care Fraud Unit and Criminal Health Care Fraud Coordinator. Bob graduated from Manhattan College in 1980. After working for a year at a national public accounting firm, he attended Fordham University School of Law School in New York, graduating in 1984 with a Juris Doctorate degree. Following law school, Bob was a litigation associate at the Cahill Gordon & Reindel law firm in New York, working on a broad range of commercial litigation matters. He is admitted to the practice of law in New Jersey and New York. Born in Teaneck and raised in New City, Bob has lived in Madison for 22 years.


Housing Champion Award

NJAA Honors Two Housing Champions

Serving The Real Estate Community Real Estate Transactions Corporate Law Landlord Tenant Matters Commercial Litigation Real Estate Tax Appeals Housing Discrimination Matters Rent Control Applications Municipal Court Matters Personal Injury Cases Family and Matrimonial Law

One of the top priorities for NJAA in 2011 was legislation aimed at eliminating duplicative municipal registration and inspections of multiple dwellings. Assembly Majority Leader Joe Cryan sponsored and advocated for this important legislative initiative. NJAA was pleased to present Assemblyman Cryan with the Housing Champion Award for this demonstrated leadership.

Over three years ago, the NJ Law Revision Commission embarked upon an ambitious project to modernize and update the landlord-tenant laws that govern our industry. Don Legow, of Legow Management, recognized the importance of engaging early with the Commission to provide the apartment industry’s input into the changes being proposed. Don’s practical insight, as both an apartment owner and an attorney, was invaluable to our efforts. The NJAA was pleased to present Past President, Don Legow with the Housing Champion Award for this contribution to such an important project.

AIM | February 2012

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Political Action

NJAA PAC: A Record Setting Year Thanks to Our Generous Supporters by Conor G. Fennessy VP of Government Affairs 2011 was a crucial election year in New Jersey as all 120 State Legislators faced re-election. Thankfully, our members, PAC contributors, and friends rose to the occasion, and we wrapped-up 2011 by exceeding our PAC fundraising goal with room to spare. For some perspective on our impressive run of success, here are the fundraising numbers since 2001: YEAR

ELECTION

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002

Assembly & Senate

2001

Governor & Assembly Assembly & Senate Governor & Assembly Assembly & Senate Governor, Senate & Assembly

FUNDS RAISED $206,850 $179,200 $192,300 $193,991 $184,075 $203,285 $208,227 $213,216 $62,524 $80,564 $115,075

The NJAA’s primary mission is to promote and defend the multi-family industry, and our political action committee, NJAA PAC, is a key component of our comprehensive government affairs strategy. Working in concert with our professional, in-house legislative, policy, regulatory and research staff, and our active NJAA members at the grassroots level, the PAC is a key tool in helping to spread the proapartment living message. Every single NJAA member – owners, managers, builders, developers, leasing agents, maintenance technicians, attorneys, planners, engineers, architects, carpenters, roofers, plumbers, equipment installers, and vendors – has a stake in a healthy, vibrant, and successful rental housing industry. The ability of apartment owners to continue to provide safe, clean, affordable rental housing to our residents, and deliver valued services to them – while doing this effectively, efficiently and profitably – rests on the continued financial strength of our PAC. While our fundraising has shown an impressive string of 22

success since 2004, we must remain ever vigilant in defense of multi-family rental housing. Looking forward to the next state election year in 2013 – where Governor Christie and all 120 Legislators will once-again be on the November ballot – we will continue to engage on the issues that matter most. Elections help motivate politicians to get out and meet constituents. This reality gives the NJAA and our members added opportunities to build relationships and educate decision makers on the importance of multi-family housing to New Jersey’s economy. We need to continue to bolster our PAC to help make NJAA an even stronger advocate for the pro-apartment living message and to ensure that multi-family rental housing remains a viable option for thousands of New Jersey’s working families, young couples and seniors. Since 2004, the Annual NJAA PAC Reception has grown to become the marquee political event in the multi-family sector. Our Reception in 2011 featured two former New Jersey Governors – Democrat Jim Florio and Republican Don DiFrancesco – for a lively discussion on issues facing our state. Over the years we have hosted the leaders who shape the policy discussions, decide the legislative agenda, and work to make sure that balanced housing policy, including both forsale and rental options, continues to be a priority at the State House. As I said before, NJAA members and friends are the key to NJAA PAC’s success these past several years, and remains the foundation of our ability to continue in the future. Your financial support plays a pivotal role in making sure that the multi-family rental housing providers have a loud, clear, unified and effective voice in Trenton. Help the NJAA help you, your employees, and your bottom line. If you would like make a contribution to NJAA PAC, or would like to volunteer for the Ninth Annual NJAA PAC Reception Host Committee, please contact the Trenton office at 609-393-5200, or e-mail via conor@njaa.com. n February 2012 | AIM


Charitable Fund

SCHOLARSHIPS NOW AVAILABLE! The NJAA Charitable Fund, Inc. is pleased to announce that it is awarding up to four (4) scholarships valued at $1,500 each to employees of NJAA member companies and their immediate families and residents of NJAA member properties. Two scholarships will be awarded to applicants from member companies and two will be awarded to residents of NJAA member properties. Applications must be received by February 20, 2012 and will be awarded for the 2012-2013 academic year. Please visit njaa.com/ charitable-fund for additional scholarship guidelines, eligibility requirements and the application form. Selection of scholarship recipients will be made by Scholarship Management Services. Neither the NJAA nor the NJAA Charitable Fund have any role or input in the selection process and will not review the applications.

To download the application from our website, please visit: njaa.com/charitable-fund


Annual Meeting

NJAA Installs New President, Executive Board and Board of Directors at Annual Membership Meeting

T

he New Jersey Apartment Association installed its new President, Executive Board and Board of Directors at its Annual Membership Meeting, held at the Imperia on Easton in Somerset, on January 25th. Over 190 members of the Association attended the event to welcome incoming President Brent Kohere of Home Properties, thank Jeff Smith of Kriegman & Smith for two years of leadership, congratulate the new Executive Board and Board of Directors appointees and recognize the 2012 Diamond Sponsors. Outgoing President Jeff Smith “passed the gavel” to incoming President Brent Kohere, who was sworn-in by Past President, Peter Weidhorn. The following NJAA Executive Board Officers were sworn in by Past President Jeff Smith: President – Brent Kohere, Home Properties, 1st Vice President – Michael Haydinger, First Montgomery Group, 2nd Vice President – William Dailey, CIS Management Inc, Vice President of Associate Affairs – John Cranmer, Archer & Greiner, P.C., Treasurer – Lynne Aber, Bertram Associates, Secretary – Steve Waters, Morgan Properties, Vice President – Jack Linefsky, Value Companies, Inc., Vice President – Joe Spadaccini, The Kamson Corporation, and Executive Director – Jean Maddalon, NJAA. A slate of Board of Director nominees was presented to the membership and approved. The following members will serve on the Board for the term 20122015: Matt Adler, Adler Development, George Cowden, Multi Housing Depot by ARI, Sue D’Angiolillo, Apartment Finder, Alan Hammer, Brach Eichler, 24

February 2012 | AIM


Annual Meeting Ron Ladell, AvalonBay Communities, Anthony Lauro, Affiliated Management, David Legow, Legow Management, Jim McGrath, PRD Management, Scott Machlovitz, Hilton Realty, and Steve Rudolph, AFR Furniture Rental. New members of the Board of Directors were formally installed by President Brent Kohere. Three Government Affairs awards were also presented at the meeting. Former BPU President, Lee Solomon received the Leadership in Regulatory Reform award and Assembly Majority Leader Joe Cryan and NJAA Member & Past President Don Legow of Legow Management, received Housing Champion of the Year awards (see page 21 for details). (Lee Solomon and Assemblyman Cryan were unable to attend, but NJAA presented them with their awards prior to the meeting). Tom Kretsch of Segal and Segal was recognized with a Charitable Fund award for his hard work and dedication as President of the NJAA Charitable Fund for the last two years. Additionally, four Charitable Fund awards were presented to members for their contributions to the Children’s Holiday Party. Coinmach Corporation and Multi-Housing Depot by ARI both received awards for picking up toys from member-hosted toy drives throughout the state. The award for most toys contributed to both the 2010 and 2011 Holiday Parties was presented to The Kamson Corporation, and an award for photographing and promoting the event was presented to The Apts Magazine. Prior to the Annual meeting, over 70 new members mingled with our Board of Directors, Membership Committee and Vendors Committee at the New Member Reception, giving them a chance to make connections within the industry and find out about the many benefits the Association provides to its members. n AIM | February 2012

event photos courtesy of Larry Falkow, The APTS 25


In the Courts

Court Authorizes New Hybrid Sewer Rate Structure for Multi-Family Apartments By John Cranmer Archer & Greiner, P.C.

S

anitary sewer costs have been a vexing problem on multifamily balance sheets for years and the situation continues to worsen as municipal budgets get tighter and towns look for new ways to squeeze ratepayers - especially landlords who live and vote in a different town - while seeking to hold the line on tax increases. This article provides an overview of the law regarding sanitary sewer rates and discusses a recent court decision that could impact multi-family developments throughout New Jersey. New Jersey law gives municipalities and municipal utility authorities (“MUAs”) wide discretion in setting sewer rates and designating classes of users that pay a particular rate. This can mean the basic classes - residential, commercial, and industrial, but with more frequency an additional class is being added - multi-family housing. Municipalities can charge for sewer service in a few basic ways so long as they don’t make a profit on the service. The municipality can charge a flat fee, it can charge based on usage (usually tied to water use) or it can recover its sewer service costs through real estate taxes. The basic test for whether the Courts will uphold a sewer charge is whether the charge is “free from patent unreasonableness.” Unfortunately, it does not matter that treating waste from apartment communities often costs only a fraction of the amount to treat waste from single family homes. When sewer is billed by way of either a flat fee or usage, New Jersey’s Courts have long recognized that it is legally permissible to treat single family residential and multifamily units as the same class of service and therefore to charge the same effective rate. One of the more notorious examples of this type of rate structure is the Camden County Municipal Utilities Authority (“CCMUA”), which charges each and every residential “unit” - be it a sixbedroom mansion or efficiency apartment, the same $324 per year, plus whatever the host municipality adds to the sewer charge to get waste from the municipal system to the CCMUA’s. 26

Although some municipalities still recover sewer costs through municipal taxes, many are now looking for ways to pay for this embedded cost through new revenue streams. One such example is the Borough of New Providence, New Jersey, which had its new sewer rate structure upheld in a decision announced on December 1, 2011, and captioned New Providence Apartments Co. v. Mayor & Council of New Providence (N.J. Super., App Div. 2011). New Providence historically charged for its sewer service through taxes and demonstrated to the Court that residential units were paying approximately 10% of their average tax bill toward sewer costs, resulting in single family units paying approximately $350 per unit toward sewer costs as opposed to only about $35 per unit for multi-family units. To equalize this perceived inequity, the Borough adopted a somewhat novel hybrid approach where sewer was to remain partly funded by taxes, while multi-family units were singled out for a $100 per unit annual sewer assessment. The Court accepted the Borough’s argument that even with the special sewer fee, multi-family units were still being charged a lower effective rate than single family homes. The Court found it compelling that the $135 paid by apartment owners – the $100 user fee plus the $35 share of their municipal real estate taxes – was only about 56% of the $240 that the average owner of a single family house paid for sewer service through real estate taxes. The Court recognized that the contribution to the cost of operating the sewer system by apartment owners closely approximated the relative usage of sewer service by apartment dwellers, which testimony at trial indicated was 57.3% of the usage of owners of single family houses. As a result, the Court found that there was no basis for concluding that this hybrid system of funding sewer service was “patently unreasonable.” The Court went further in recognizing that even if New Providence had chosen to completely abandon its historical February 2012 | AIM


In the Courts system of funding sewer services solely through municipal real estate taxes and instead opted for user fees established in accordance with N.J.S.A. 40A:26A-10, the Borough could have imposed the same per unit user fee of $200 per residential unit on both single family houses and apartment units. This case clearly cements the fact that New Jersey’s Courts are likely to continue to give wide deference to municipalities and MUAs in both setting rates and in grouping multi-family and single family units in the same class for setting rates and fees. The most significant remaining avenue to challenge sewer rates for multi-family owners, short of legislative relief, is the fact that New Jersey’s Courts have not issued a reported decision that held that a municipality can charge a multi-family unit more than a single family home. To this end, a bright spot in the New Providence decision is that the Court did take a look at the percentage of sewer that was allocable to multi-family units and compared it to the cost burden of the multi-family units to see if it was equitable. In doing so, the Court left open the door to demonstrate that a rate structure which charged multi-family units more than single family homes could be struck down as unconstitutional.

In order to analyze whether a rate is “patently unreasonable,” an analysis of the municipality’s operating costs, rate structures and costs of service (e.g. how much does it cost to deliver sewer service to single family homes vs. multi-family homes) to each class of user must be performed by legal counsel and an engineer specializing in sewer rate structures. The bottom line is that owners of multi-family housing need to remain active and informed about developments at the municipal level as they occur. When rate changes are considered or proposed, the best way to stop or challenge that rate structure is before it gets adopted and receives deferential treatment by the court system. If the rate that is adopted is unreasonable, the owner and property manager should contact legal counsel to protect their rights. n John D. Cranmer is a member of NJAA’s Executive Board and Legislative/PAC Committee, as well as the Utility Sub-Metering and COAH task forces. He is a partner in the Haddonfield office of the law firm of Archer & Greiner, where he concentrates his practice in the areas of real estate development, real estate transactions, commercial real estate, commercial lending, real estate brokerage, utility issues, fair housing law, affordable housing law, land use and environmental permitting and liquor licensing.

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AIM | February 2012

27


By now you’ve probably heard the buzz about NJAA’s Maintenance Mania. But do you really understand what it is? Maintenance Mania is a competition, offered by the National Apartment Association (NAA) and presented by HD Supply, in which maintenance technicians compete against each other on common maintenance activities. The event consists of seven skill-based games: Dual Flush Retrofit, Appliance Repair, Fire & Carbon Monoxide Safety Installation, Key Control Deadbolt Test, Faucet Repair, Ceiling Fan Installation, Advance Lamp & Ballast Retrofit and a race car competition. Participants will compete for a chance to be our region’s representative at NAA’s National Maintenance Mania Competition, held during the 2012 NAA Education Conference. That honor includes a round trip ticket, registration to the NAA Conference, hotel accommodations plus the chance to take home the grand prize! Our Maintenance Mania competition will be held on March 13th at the NJ Convention & Expo Center in Somerset starting at 2:30pm. See the next page for details and a registration form. This event is open to spectators and you should encourage your property staff to attend and cheer on their co-workers. At the conclusion of the competition, there will be a cocktail reception, at which time all of the winners will be announced. Now that you know what Maintenance Mania is, why haven’t you registered your staff? This event is guaranteed to sell out. Register today as space is limited. There are numerous sponsorship opportunities available for this event. Game Sponsors can have one representative attend the competition as a judge. What a great way to promote your product to a captive audience. Don’t let this opportunity pass you by, become a Maintenance Mania sponsor today! See below for a detailed list of sponsorship opportunities.

SPONSORSHIP OPPORTUNITIES Maintenance Mania Game Sponsor (1 sponsor available for each game below) $750 Fluidmaster Dual Flush Retrofit, sponsored by Roto Rooter, GE Appliance Repair, Kidde Fire & Carbon Monoxide Safety Installation, sponsored by City Fire Equipment Company, Kwikset Key Control Deadbolt Test, Pfister Faucet Repair, sponsored by Central Wholesalers, Seasons Ceiling Fan Installation, Philips Advance Lamp & Ballast Retrofit Company logo* on signage at the game you are sponsoring. Will be displayed with the National Sponsor’s logo • Company name on all Competitors Participation Certificates • Company name on NJAA marketing material advertising the event (electronic and print) • Company logo/name in the AIM magazine issue highlighting the Maintenance Mania event • Sponsor may provide one game judge at the event, who will receive a complimentary registration to the event Motorola & Niagra Conservation Race Car Competition (1 available) $750 Wilmar • Company logo* on signage at the game you are sponsoring. Will be displayed with the National Sponsor’s logo • Company name on all Competitors Participation Certificates • Company name on NJAA marketing material advertising the event (electronic and print) • Company logo/name in the AIM magazine issue highlighting the Maintenance Mania event • Sponsor may provide one game judge at the event, who will receive a complimentary registration to the event Awards Reception Sponsor (3 available) • One complimentary ticket to the Maintenance Mania event, including Awards Reception • Company name or logo* on signage • Company name on NJAA marketing material advertising the event (electronic and print) • Company name in the AIM magazine issue highlighting the Maintenance Mania event • Spirit Sponsor (4 available) • One complimentary ticket to the Maintenance Mania event, including Awards Reception ��� Company name or logo* at Spirit table • Company name on NJAA marketing material advertising the event (electronic and print) • Company name in the AIM magazine issue highlighting the Maintenance Mania event • Sponsor may provide one person at the spirit table to hand out cheer poms

$500

Snack Break at Competition Sponsor (no limit) • Company name or logo* on signage displayed at snack break table in competition room • Company name on NJAA marketing material advertising the event (electronic and print) • Company name in the AIM magazine issue highlighting the Maintenance Mania event

$150

$250

Please contact Niambi Ivery at niambi@njaa.com or (732) 992-0606 with any questions.


Join us for NJAA’s 4th Annual Maintenance Mania! NEW LOCATION :: New Jersey Convention & Expo Center Tuesday, March 13, 2012 2:30PM to 7:00PM What is Maintenance Mania? A competition in which maintenance technicians from around the country face maintenance-focused challenges that test their skills and knowledge to earn the title of Maintenance Mania® National Champion. Don’t forget to register your property staff and management teams to cheer on the competitors and show support of our unsung maintenance heroes. Event Schedule • Car check-in opens: 1:30PM • Practice time: 1:30PM – 2:15PM • Competition begins: 2:30PM • Awards Reception begins: 5:00PM Where? NJ Convention & Expo Center 97 Sunfield Avenue Edison, NJ 08837

SIGN UP TODAY TO RECEIVE YOUR OFFICIAL CAR WHEELS Complete the registration form and fax to 609-860-0060 or mail to NJAA HQ: $80 for Member Competitors - $100 for Non-member Competitors $45 for Spectators; $60 for Spectators after March 2nd Registration Includes Cocktail Reception

104 Interchange Plaza, Suite 201 Monroe Township, NJ 08831 Hosted By:

Name: _______________________________________________________________ Company: ___________________________________________________________ Property: _____________________________________________________________ Address: _____________________________________________________________ City: _________________________________________________________________

Presenting Sponsor:

State: _________________________________ Zip: __________________________ Phone: ______________________________________________________________ E-mail: ________________________________________________________________ Check One: _______ Competitor

_______ Spectator

For additional

PAYMENT INFORMATION Please make checks payable to NJAA or authorize Credit Card payment as: 

Visa

MasterCard

American Express

Card Number ___________________________ Sec Code ________ Exp ________ Name ______________________________ Company __________________________ Signature __________________________________ Date ________ Total $__________

information contact us at at 732-992-0606 or niambi@njaa.com.


Member Spotlight

MEMBER SPOTLIGHT Community Investment Strategies, Inc. NJAA 2011 Management Company of the Year - Affordable

H

elping residents realize their dream of home and pride has

marketing, leasing and sales services, resident services, social

defined CIS Management, Inc. since its founding in 2004. As

activities programming, senior services, and third-party,

the property management affiliate of Community Investment

facilities, asset and financial management.

Strategies (CIS), Inc., the company is committed to providing unrivaled 24-hour/7-day-a-week on-site services at CIS’ 55+,

“Our team handles the entire management process, from initial

senior/assisted living, mixed-use, market-rate and affordable

marketing through rent-up and tax-credit compliance to far-

housing communities.

reaching resident education programs, such as computer and resume writing assistance, to ease the transition from public

“At CIS Management, we continually strive to maintain the

housing to private affordable housing,” explained Mr. Dailey.

highest levels of service and programming excellence, for

“The secret to our success is directly linked to the special bond,

which we have become known, that our residents expect and

based on trust and relationship-building, that is forged between

merit,” said William Dailey, the division’s president. “Our

our staff and our residents.”

comprehensive and responsive property management services

The company and its communities

reflect CIS’ ‘with you for life’

are the recipients of numerous

philosophy, meaning that once a

industry awards, including

resident becomes part of our family,

several other 2011 Garden State

we will do everything we can to

Awards. These include Heritage

support them and address their

Village at Manalapan, named

needs over the long term – not just

Best Curb Appeal (Central Jersey,

for the length of their one-year

built after 2000); Heritage Village

lease, but for many, many years to

at Elizabeth, recognized as Best

come.”

Managed Properties Mid/High Rise Apartments (Affordable/ North Jersey, built after 1981); and

The talented CIS Management team, which includes a live-in superintendent and on-site property

Whitney Crescent

Heritage Village at Elton Corner, honored as Best Managed Properties

manager at each community, is

Garden/Low-Rise Apartments

responsible for the day-to-day

(Affordable, built after 2000).

management tasks encompassing more than 2,000 affordable housing units developed and owned by CIS, a certified woman-

One example of CIS Management’s efficiency and rapport

owned business enterprise (WBE) established in 1994. In addition

is Whitney Crescent, an 80-unit affordable apartment-rental

to Mr. Dailey, the CIS Management team includes Karen

redevelopment in Glassboro. To replace the severely distressed

Lofton, vice president, Tania Brown, director, Cheryl Lessing,

complex formerly known as Bentley Woods, nine buildings had

director of compliance, as well as a highly qualified corps of

to be demolished in phases and residents needed to be relocated,

property management professionals. CIS Management provides

temporarily. Each household is now receiving priority residency

regulatory compliance, administrative agent services, market

in the new buildings and assistance from CIS Management with

repositioning, renovation oversight, contract administration,

their move back to Whitney Crescent.

30

February 2012 | AIM


Member Spotlight Like all of CIS’ communities, Whitney Crescent offers an

“CIS specializes in creating commercial real estate developments

affordable, maintenance-free lifestyle along with numerous

and low-to-moderate housing initiatives that have a long-

amenities often not associated with low-to-moderate income

term, positive impact on each community,” said Ms. Foglio,

communities. Unique designs typically feature a private, exterior

an industry veteran with more than 25 years experience as

front door leading to a front porch

a public servant, professional

and maintenance-free front yard

planner and private developer.

– characteristics often connected

“We partner with community

with homeownership and

groups and public officials to

achieving the American dream.

identify potential opportunities to restore city neighborhoods with

People-First Philosophy Propels

creative housing solutions while

CIS to Industry Forefront

supporting local revitalization

“What makes CIS and each of

initiatives.”

its affiliates unique is that we recognize all people, regardless

Committed to more than a

of income level, are defined by

“bricks and mortar” approach,

where they live,” said Christiana Foglio, founder/owner and CEO of

CIS strives to become one with

Heritage Village at Elizabeth

the community, from project

CIS. “With this in mind, CIS creates

inception and beyond completion,

homes where we would want to live

by demonstrating its unwavering

and raise our own families.”

corporate citizenship, advocacy, people-first philosophy and

As a result of this innovative approach, the company has

dedication to promoting gender and ethnic diversity.

emerged as a leading fully integrated commercial real estate

“As a woman business owner, and

company, doubling its volume

as someone whose resident base is

in the past several years. CIS

primarily comprised of women headed

further distinguishes itself from its

households, I feel it is my obligation

competitive set by providing in-house

to create opportunities for personal

finance, development, construction,

and professional advancement

management and supportive senior

for women and minorities on a

health services that bridge the health

company- and community-wide

and wellness gap.

basis,” said Ms. Foglio. “We also hire locally based female- and minority-

To date, CIS has developed a broad

owned subcontracting firms for each

spectrum of multi-family properties,

development project, as standard

ranging from garden apartments

practice, to support economic and

to mid- and high-rise complexes,

business growth on the local level.”

valued in excess of $350 million. Recently completed projects include Waters Edge Crescent, a 71-unit affordable rental community in the

CIS’ innovation, sense of community, relationships and reputation for high-

Heritage Village at Seabreeze

quality construction have positioned

City of Elizabeth, where 600 distressed

the company for significant growth

public housing units have been replaced on the waterfront; Cape

opportunities in the next five years. Based in Lawrenceville,

Manor, a supportive residential housing complex for individuals

the company is currently expanding its development and

with developmental disabilities, including young adults with

redevelopment activities within urban areas to incorporate

autism; and Heritage Village at Seabreeze, a 100-unit affordable

market-rate and affordable housing components, as well

senior living community that incorporates social, recreational

as special needs housing. In addition to CIS Management,

and personal care services for those 55 years of age and older in

CIS’ affiliated divisions include CIS Development and CIS

Forked River.

Construction, LLC.

AIM | February 2012

n 31


More Than 1,300 Prospects Await You at the 23rd Annual NJAA Conference & Expo May 21-23, 2012 :: Atlantic City Convention Center From owners to maintenance technicians, New Jersey’s apartment professionals know that the NJAA Expo floor will bring them the latest solutions and products they need for their business. The expo floor is filling up fast—don’t miss out on the opportunity! Visit njaaconference.com to download an exhibitor contract and secure your spot today. Floorplan as of 2/2/12. EXHIBITOR LIST 428 519 517 219 717 635 711 203 510 311 420 516 310 216 434 206 832 504 830 408 111 534 521 429 503 637 505 406 211 602 401 105 410 701 209 411 332 506 509 317 403 520

A & S Boiler Aaron & Company Acadia Advanced Pavement Technologies AFR Furniture Rental Aldo Design Group American Architectural Windows & Doors

American Carpet South Apartment Finder Apartments.com AppFolio Appliance Brokers Ltd. Archer & Greiner Arrow Steel Inc. AVCO Supply Inc. Axiom Communications Bader Company Bargold Storage Systems Belfor USA BH Security The Brickman Group CALECO CallSource Carfaro Inc. CB Richard Ellis Central Wholesalers Inc Champion Utility Sub-Metering Chute Master Environmental City Fire Equiptment Co. CMQ Floor Covering Coinmach Columbia Bank CoreLogic SafeRent CORT Furniture Rental Design East Direct Supplies Warehouse Delaware County Fire Restoration

Eastern Contractor Services Ehrlich, Petriello, Gudin & Plaza

Elias B Cohen Emlin Group, ltd. Energy Squared LLC

323 622 202 620 618 821 601 316 404 435 318 508 201 720 309 120 609 409 417 303 435 718 405 419 430 721 522 301 604 603 407 619 507 702 117 204 422 210 306 818 511 611

EnTech Digital Controls Executive Credit Management

Falcon Engineering Feinstein, Raiss, Kelin & Booker LLC

For Rent Media Solutions Fowler Route Company Frankford Umbrellas Gebroe Hammer General Plumbing Supply GreenTech Engery Services Gutter Master LLC Handy Trac Systems HD Supply Hercules Corporation HESS High Tech Landscaping The Home Depot Indatus Insurent Integrated Business Solutions Investors Bank J. Rapaport Flooring JEM Appliance Jewel Electric Supply Co. Karl’s Appliances Kenneth Jaffe Advertising Kipcon, Inc. Kislak Lawns By Yorkshire Legacy Energy LEW Corporation Lewis Chester Associates, Inc LexisNexis Lundt Combustion Systems M. Miller and Son Mac- gray MaGrann Associates Manhattan Welding Company Marcus & Millichap Martin Greenbaum Meridian Capital Group Mitchell Supreme Fuel Oil

100 402 305 437 708 207 320 518 719 307 432 817 108 308 606 734 819 608 418 304 829 530 416 605 319 501 101 218 217 502 335 302 617 634 205 321 103 632 334 421

Mohawk industries Move.com MSB Resources Multi-Housing Depot by ARI NAA National Restoration National Tenant Network NWP Services Corporation Oil Tank Services Onorati Construction Co. Inc. On-Site.com P. Cooper Roofing PC Richard Pilera Software, LLC Property Owners Association Property Solutions RealPage, Inc Regal Bank RestoreCore Rifkin Rosen Roto-Rooter RWC Windows, Doors & More

Sax Macy Fromm & Co., PC Screening Reports Inc. SEBCO Laundry Services SERVPRO of New Jersey Sherwin Williams Sign-a-Rama of Cherry Hill Spin Cycle SureDeposit TrashPro Valet Waste Verizon Enhanced Communities Waldor Schulman Western Pest Services WILMAR Withum Smith & Brown PC Woodruff Energy US, LLC Yardi Systems Inc Young Adjustment Company


Put Your Best Brand Forward At the NJAA Expo! The NJAA Conference & Expo offers a range of invaluable opportunities—to fit all budgets— that will get your company on the business radars of more than 1,300 apartment industry professionals. There are several sponsorship opportunities available, please contact Niambi Ivery at niambi@njaa.com or 732-992-0606 for more information.

Seating Area

135 133 131

235 232 230

122

123

222

120

121

220

119

324

325

424

322

323

223 221

218

219 Spin Cycle

M. Miller Arrow & Son Steel, Inc.

117

426

217

216

530

Entech MaGrann Digital Associates Controls

National Tenant Network

Wilmar

320

321

SEBCO Laundry Services

Advanced Gutter Pavement Master, LLC

Sign-ARama

A&S Boiler

319

318

317

316

Carfaro Inc.

429

528

427

526

425

524

422

423

AppFolio

Young Energy Adjustment Squared

420

421

Jewel Electric Supply

Restore Core

418

Elias B. Sax Macy Cohen Fromm

Gebroe Hammer

533

RWC Windows, Doors & More

430

327

225

HighTech Landscapes

331

Aldo Design

634

635

Property Solutions

735

734

416

522

632

531

630

529

628

527

626

525 523

624 Executive Credit Mgmt

622

521

NWP Services

Aaron & Co.

518

519

Insurent

Appliance Brokers

Acadia Windows & Doors

516

729

828

727

826

725

824

722

723

822

Hercules Corp.

Kenneth Jaffe Advertising

629

728

627

726

625

724

619

721

720

719

718

827

823 Fowler Route Co.

821

820

RealPage

819

818

AFR Furniture Rental

617

Roto Rooter

829

825

Oil Tank Martin Services Greenbaum

Verizon Enhanced Communities

517

Belfor USA

830

Lewis J. Rapaport Chester Flooring Assoc.

618

832

731

730

621

For Rent Media Solutions

733

732

631

623

620

419

417

633

Feinstein CallSource Raiss Kelin & Booker

520

835 Bader Company

800 AISLE

224

535

532

Karl’s Appliances

428

326

534

Woodruff Energy US

432

329

227

435

Seating Area

637

700 AISLE

125

333

330 328

Green Tech Waldor Energy Schulman

On-Site. com

332

229

537

Investors CALECO Bank

600 AISLE

124

Delaware County Fire Restoration

434

Food Area

Central Wholesalers

437

500 AISLE

226

334

335

Avco Supply

400 AISLE

127

126

TrashPro

300 AISLE

228

231

200 AISLE

100 AISLE

129

118

233

Yardi Systems, Inc.

Seating Area

Food Area

Multi-Housing Depot by ARI

337

237 134

Seating Area

Food Area

P. Cooper Roofing

717

817

Entrance to Keynote & Breakfast City Fire Archer Equipment & Greiner

Brickman Manhattan Group Welding

100

105

Withum Smith & Brown

103

204

Falcon Engineering

202

Sherwin Williams

101

207

306

Rifkin Western Pest Services & Rosen

205

American Carpet South

203

304 Valet Waste

302

HD Supply

201

BH Security

408

Onorati Chute Master Construction Environmental

307

406

General MSB Resources Plumbing Supply

305

404

Integrated Business Move.com Solutions

303

402

Kislak Company

301

ENTRANCE

Premium Booth Available

Booth Unavailable

Standard Booth Available

Seating/Food Areas

Indatus

409 LEW Corp.

Eastern Contractor Services

JEM Appliance

Bargold Storage

407 405

Emlin Group

403

506 504

SureDeposit

502

Coinmach

401

Mitchell Supreme Fuel Oil

Levy, Ehrlich & Petriello

The Home Depot

511

Handy Trac Systems

508

Meridian Capital Group

509

LexisNexis

507

Regal Bank

608

Property Owners Assoc.

606

Champion Lawns by Utility Yorkshire

505

604

CB Richard CMQ Floor Ellis Coverings

503

602

ServPro of NJ

501

American Architectural Window & Door

711

611

NAA

609

708

607

706

605

704

603

702

Lundt Legacy Combustion Energy Systems

Frankford Umbrellas

601

709

808

707

806

705

804

703

802

800 AISLE

Mohawk Industries

206

National Marcus & Restoration Millichap Services

HESS

309

Finder

510

700 AISLE

102

107

Columbia Mac-Gray Bank

Pilera Software

308

Warehouse

411

600 AISLE

104

100 AISLE

106

Design East

209

Direct Supplies Apartment

410

500 AISLE

208

311

400 AISLE

109

PC Richard

108

Apartments. CoreLogic com SafeRent

310

300 AISLE

210

200 AISLE

111

211

CORT Furniture Rental

701

RESTROOMS

Column/ Fire Equipment

All booths are 10’ x 10’ unless otherwise noted. All aisles are 10’ unless otherwise noted. Floor plan and expo floor hours subject to change


Higher Learning

Reduce Your Energy and Maintenance Costs With State Money By Allan Samuels Energy Squared

A

lmost all of the mechanical and electrical systems in a building will need to be replaced after reaching the end of its useful life. Space heating boilers, domestic hot water systems, air conditioning pumps, and lighting are just a few of the systems that will need upgrading in all buildings, hopefully prior to their failure. In addition to the first cost of replacement, these are the systems that consume most of the energy (gas, oil and electricity) in a building and have the highest ongoing maintenance costs, especially for older systems. By replacing the older systems with new high-efficiency units, the building will experience significant annual energy and maintenance savings. Even heating and cooling systems that are still operational can be replaced and pay for themselves in a relatively short period, based on the annual energy savings realized by the building. The replacement of these systems will often run into hundreds of thousands of dollars, and even million-plus dollars in large residential buildings and complexes. So imagine having the State pay for half of the total cost for these projects. The New Jersey Clean Energy Pay for Performance program has been paying up to a $1,000,000 per building, and many New Jersey Apartment Association members have been receiving vast sums of money for energy upgrades they’ve performed. The “Existing Buildings� component of the Pay for Performance program is an incentive-based program designed to help multi-family dwellings such as apartment, as well as commercial and industrial buildings, reduce energy consumption. Program incentives are awarded at three stages: when an energy reduction plan is submitted, at the time that the recommended reduction measures are implemented, and post-construction once the actual energy savings are verified. The participant will reap a dual benefit, 34

in addition to the incentives, they will be realizing significant energy cost savings based on the reduced consumption and reduced maintenance expenses. An example of a successful implementation is a gardenstyle apartment complex where the measures implemented included high-efficiency boilers, lighting improvements, attic insulation and domestic hot water heater improvements. These measures were modeled in a computer simulation and found to provide an annual energy savings of 21%, which translates into annual energy cost savings of over $310,000. Incentives for this community from the Pay for Performance Program are $780,000. It is not known how long this program will remain in place, but any building in the State of New Jersey planning on undertaking renovations to the mechanical and electrical systems in the near future would greatly benefit from enrolling in these generous incentives. Even if your renovation is planned for the next couple of years, it may be beneficial to consider implementing the renovation immediately in order to ensure participation in the Pay for Performance incentive program. For more information about the Pay for Performance program, visit www.njcleanenergy.com/commercial-industrial/ programs/pay-performance. n Energy Squared is an engineering consulting firm, specializing in energy efficiency and related services. Led by Principal and Managing Partner Allan Samuels, LEED AP, Energy Squared provides its clients with mechanical, electrical and plumbing designs; specifications; building performance modeling; energy simulations; and renewable energy services. To find out more, please visit www.EnergySquaredllc.com or contact Allan Samuels, LEED AP, Principal and Managing Partner of Energy Squared, at ASamuels@energysquaredllc.com. February 2012 | AIM


NJAA 2008 Color Ad-AIM.qxp:Layout 1

3/11/09

1:52 PM

Higher Learning

Page 1

Call Fowler Route Company today to find out how we can make your laundry room more profitable. 800-334-1824 X127

Fowler

The Commercial Laundry Specialists

www.fowlercompanies.com

Serving apartment communities since 1952 * Commissions - Sales - Service

Energy Squared has obtained over $3 Million in Goverment Incentives for the Replacement of heating, cooling and lighting systems for

www.energysquaredllc.com | 800.828.4118

AIM | February 2012

Morgan Properties. We can do the same for you.

35


Ad Directory

Advertisers Please take a look at the following members who support NJAA with their advertisement in this issue of AIM.

21

Bargold Storage Systems

39

Brach Eichler LLC

35

Energy Squared

15

Falcon Engineering

21

Feinstein, Raiss, Kelin & Booker

35

Fowler Companies

9 15

Griffin Alexander, P.C. Jacobson, Goldfarb & Scott

3

Kipcon

2

Manhattan Welding Company, Inc.

17

Mitchell Supreme

38

NAA - National Lease Program

27

Oritani Savings Bank

Back Cover

P.C. Richard & Son

36

Maximize Your Advocacy ROI at the 2012 NAA Capitol Conference Reap returns on your investment— both for your business and the apartment industry—by attending the 2012 NAA Capitol Conference. This once-a-year descent on Washington, D.C., is your opportunity to tell your members of Congress in person how federal legislation could affect the industry. Join fellow NAA members March 11-14, 2012, to learn from political analysts and commentators, attend advocacy education sessions and issue briefings and meet with your members of the U.S. Senate and congressional staff for both houses. (The House will be in recess.) Speakers include political strategist and commentator Donna Brazille and former Bush White House Press Secretary Dana Perino, who will present a lively point-counterpoint discussion about politics. Editor and Publisher of the Rothenberg Political Report, Stuart Rothenberg will share insightful, humorous comments about the elections and the nature of politics itself.

Visit naahq.org/events/CapConf for more information.

February 2012 | AIM


2012 Education and Event Calendar FEBR U A RY 1 FREE

The ABC’s of Real Estate Tax Appeals in NJ by Alan R. Hammer, Esq. and Daniel Pollack, Brach Eichler LLC

27-29 FREE

NAA Advanced Instructor Training (AIT) Monroe Township SOLD OUT

MAR C H 8 FREE

13

27-28 $330

Socializing Your Community - Social Media by Apartments.com Maintenance Mania NJ Convention & Expo Center, Edison Certified Pool Operator (CPO) by James Dyer, HD Supply

CAMT Plumbing by Mike Goldberg, RestoreCore

MAY 21

21-23

5-6

13 FREE

CAMT Electric by Mike Goldberg, RestoreCore Capture and Retain Residents through Popular New Media Channels by Apartments.com

SEPTEMBER

APR I L 24-25

JUNE

Annual Convention Golf Outing Ballamor Golf Course, Egg Harbor Township 23rd Annual Conference & Expo Atlantic City Convention Center & Borgata Hotel

12 FREE

Interactive Multifamily Marketing by Apartments.com

Continuing Education Credits (CECs) and Designation Renewal Information All CEC’s required for the renewal period should be earned the previous year. Example: for 2012 you will report CECs earned during 2011. One contact hour or 50 minutes of education programming (excluding breaks/ meals) is equivalent to one CEC. Individuals who hold multiple NAAEI designations may use the same CECs for renewal of all designations. One half of your required CECs per renewal period must be attained by participating in NAA, NAAEI or NAA Affiliate courses, seminars, programs or activities. For more information visit: www.naahq.org and search for Designation Renewal Requirements.

Share Your Expertise with NJAA Members Now Accepting Education Proposals for 2012! Do you or your company have knowledge on a particular topic or subject that would be of interest to fellow NJAA members? If so, now is the time to

Unless otherwise noted, all sessions are held at NJAA Headquarters. For more information and non-member rates contact us at 732-992-0600 or visit the Events Calendar at njaa.com.

submit your presentation proposal. All proposals will be considered, provided they include subject title, speaker name(s), program length and brief program outline. Additionally, we are in need of instructors for the following NAA Designation courses and programs: National Apartment Leasing Professional (NALP), Certified Apartment Managers (CAM) and Fair Housing and Beyond. If interested, please complete and submit a Proposal Request. If available, please include handouts, PowerPoint and other session materials intended for class use. Please call Niambi Ivery directly at (732) 992-0606 for more information.


ARE YOU COVERED? More than 13,000 communities use the National Lease Program.

THE MOST WIDELY USED RESIDENTIAL LEASE IN THE MULTIFAMILY INDUSTRY—INCLUDING CALIFORNIA

• More than 3,000,000 Leases Written in 2010 • Eliminates Errors and Increases Efficiency • Continually Reviewed by Expert Attorneys in Every State • Free Tech Support and Training • Completely Web-based

VISIT THE NATIONAL LEASE PROGRAM AT WWW.NAAHQ.ORG/LEASE


We Don’t Dabble in Tax Appeals.

This is the time of year when every law firm comes out of the Alan R. Hammer Partner 973.403.3113 Daniel J. Pollak Partner 973.403.3119 M. Sidney Donica Partner 973.403.3125

woodwork to advise you to appeal your real estate taxes. Unlike so many of them, we at Brach Eichler have been actively engaged in the prosecution of real estate tax appeals for almost 40 years. You can choose to work with lawyers who occasionally handle a tax appeal, or you can work with the experienced Real Estate Tax Appeals team at Brach Eichler.

The tax appeal deadline is April 1. Don’t miss it. Call us soon.

101 Eisenhower Parkway

Q

Roseland, NJ 07068

Q

www.bracheichler.com


104 Interchange Plaza, Suite 201 Monroe Township, NJ 08831

the MAJOR APPLIANCE ‘GIANT’

AMERICA’S LARGEST WHOLESALE APPLIANCE DISTRIBUTOR For OVER 100 years P.C. Richard & Son has been providing the building industry with unbeatable service, integrity and reliability.

SAVINGS

GUARANTEED LOW PRICES ALL QUALITY BRANDS FOR LESS

SELECTION

THE LARGEST SELECTION OF BRAND NAME DESIGNER KITCHEN APPLIANCES

SERVICE

THE LARGEST INVENTORY FOR NEXT DAY DELIVERY BY OUR VERY OWN DELIVERY TEAMS

P.C. RICHARD & SON ... HERE FOR YOU ... ALWAYS

PROFESSIONAL NEXT DAY DELIVERY AVAILABLE

THE COMPANY YOU CAN TRUST SINCE 1909 DISTRIBUTING TO: NEW YORK, NEW JERSEY, CONNECTICUT, PENNSYLVANIA, DELAWARE, MARYLAND, WASHINGTON DC, MASSACHUSETTS, RHODE ISLAND

1.800.368.6869

Builders@PCRichard.com Fax# 1.800.479.0336 150 PRICE PARKWAY FARMINGDALE, NY 11735


February AIM 2012