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The official publication of the Arizona Multihousing Association

NEWS NEWS & HAPPENINGS Clow elected to NAA office LEGISLATIVE UPDATE The cost of growth



New board charts course for 2015



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Election season and looking ahead


he election season is finally over and now we are looking ahead to an important legislative session. Our legislative team will be working with many new faces at the Capitol and in cities across the state. AMAPAC’s work in meeting these candidates, and soon office-holders, during the election allowed us to learn more about their interests and helped to educate them about the multihousing industry. I must again express my thanks to Capitol Consulting and all of the AMA volunteers who interviewed candidates and helped to make the endorsement process fair and thorough. These efforts benefit our industry in important ways and we are looking forward to the work ahead.

Speed and Skill On your mark, set, go! Maintenance Mania events in Tucson and Phoenix rally our teams in ways that go beyond just the cheering section. These maintenance teams keep your communities looking and running great and it’s a pleasure to see the pride in the company and in the individual members as they race for first place. The Maintenance Mania committees in Tucson and Phoenix led a series of exciting events and we appreciate all of their work!

There’s a little less speed on the golf course during the annual golf tournament but there’s certainly skill. One of the AMA’s most popular events, the sponsors went all out this year to make the course lots of fun for our golfers. Bringing together so many members for a casual day of networking helps build relationships and businesses. Thanks to all of the Golf Committee members and the sponsors for our best tournament yet.

Talented Leaders The AMA board of directors invests countless hours of valuable time and expertise to make this association one of the premier trade groups in the state. Their careful stewardship of our budget and oversight of programs benefits each and every member. Thanks to their efforts, our organization is stronger than ever and growing. The surge in the multifamily industry in Arizona has certainly elevated our work in the eyes of regulators and the rest of the real estate market. The final board meeting of the year is always bittersweet as we transition members off the board to welcome new members. I am personally in awe of the talents of our leaders and grateful for the partnership we have on this active board. Before we jump in to 2015, I want to thank you all for a productive 2014. Together, we are working to build and protect our industry in Arizona and prepare for a successful future.

— Tom Simplot, President and CEO, Arizona Multihousing Association

Apartment News > December 2014/January 2015



Leading at all levels


eflecting on a year as the Chairman of the Board for the Arizona Multihousing Association, the first thing that comes to mind are the people in this organization. The dedicated board members and our professional staff make this position a joy and an honor. Our industry is real estate, but it’s really about the people, those we work with and those we serve. I want to thank our members for their commitment and investment in this association. We can see how our work together pays off by looking back at just a few of the highlights from this past year. The successful launch of the Lyceum program was one of my top priorities. Seeing this leadership development class launch with a dynamic group of talent gives me both pride and hope. I know that this program will help our companies build a more sustainable pipeline of trained talent to our industry. I encourage you to identify those top performers in your own company and encourage them to apply for next year’s class. Applications are available on the AMA website at Speaking of incredible talent, I’m honored to work with both Mike Clow and Amy Smith on our board of directors here locally. These two super stars were also tapped to work at the national level of the NAA. Mike was elected secretary of the NAA and Amy was named Regional Vice President for Region VII. Congratulations to them both!

We have added another avenue for our residents to get their healthcare needs met – through the web portal. This gives our residents access to all the other insurance carriers, in addition to Blue Cross and Blue Shield of Arizona, and is a good resource to help residents navigate the health care market and get coverage that is best suited to their needs. The AMA team has been working to grow these affinity programs to help us save money and work with highly qualified companies for necessary services like workman’s compensation. Skipton & Associates has partnered with us this year to help our members with their claims management, and help the AMA at the same time. We have also approved a new Property and Casualty Insurance program for our members. We are looking forward to Crest Insurance Group helping us with our property insurance needs. Thanks to Todd Bradford for all of his work on these programs. The multifamily sector continues to lead the real estate industry in Arizona in the recovery. Redevelopment, workforce housing and regulatory issues impact us at all levels of government and our AMA team continues to lead us in protecting our businesses. Get engaged in these efforts as we need you! This association is here to grow your companies and we need your support. All the best to you, my friends! Thank you for a remarkable year!

— Kimberly K. Fitch, AMA Board Chair, Nicolosi & Fitch


Apartment News > December 2014/January 2015

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Clow elected NAA secretary

Mike Clow, the Senior Managing Director of Real Estate for Greystar’s Western Region, was recently elected to be an officer and serve as secretary for the National Apartment Association in 2015. He is an active member of the national association’s board of directors. “I welcome the opportunity to help advance the mission and strategic objectives of the NAA,” said Clow. “With over twenty five years of experience, I look forward to bringing a deep understanding of the multi-family industry, emerging trends and best practices to the organization.” Clow also serves as a board member for the Arizona Multihousing Association. He joined the AMA in 1992 as a member and has remained a strong advocate and supporter of the association.

Governor names Halley as first multifamily representative Governor Brewer named Nedra Halley, president of Dunlap & Magee Property Management, as the first official multifamily representative to the Arizona Real Estate Advisory Board. Bringing more than 30 years of experience in the industry, Halley will serve a six-year term on the 10-member board. She served as Board Chair of the AMA, President of the Phoenix Chapter of the Institute of Real Estate Management, and was recipient of the 1991 Phoenix Chamber of Commerce Athena Business Woman of the Year Award. The AMA government affairs team, Capitol Consulting, successfully lobbied to have the unique interests of the multifamily industry represented on this prestigious board that oversees real estate issues and licensing for the state of Arizona.


Apartment News > December 2014/January 2015

Shirley Arthur honored by St. Vincent de Paul with Achievement Award Each year, St. Vincent’s de Paul honors one individual for their outstanding service and dedication to the community with the Bob Russell Lifetime Achievement Award. This year, the AMA’s very own Shirley Arthur was selected for this prestigious honor. Arthur has organized the annual Christmas Dinner at the Chris Becker Memorial Dining Room at Sunnyslope and has engaged hundreds of AMA members and families to support this community event. Apartment communities around the valley gather canned food and donations for this event for months in advance and Arthur organizes all of these efforts with a volunteer team. Each year this event has grown and last year, nearly 600 people attended this dinner. Families in need participated in a festive holiday meal, and they were able to select clothing, toys and hygiene items to take home. Thanks to Arthur’s selfless efforts hundreds of families have enjoyed a happier holiday season over these many years.

Smith named Regional Vice President for Region VII Amy Smith, Managing Partner of Bella Investment Group, LLC, was chosen to be the new Regional Vice President for Region VII of the NAA. Smith will suceed Mike Clow in this role. Currently, Smith serves as Vice Chair and on the Executive Committee of the AMA Board of Directors.

Arizona to receive national affordable housing boost Chicanos Por La Causa’s (CPLC) was awarded charter membership to the national NeighborWorks® network. CPLC met high organizational health and performance standards, enabling the organization to gain access to a powerful battery of training, research, technical assistance and funding opportunities. NeighborWorks America created the NeighborWorks network to improve housing opportunities for low- and moderate-income families; provide financial education and improve financial literacy; rebuild and repair properties; develop affordable multifamily homes; and use innovative strategies to improve safety and revitalize communities across the nation. The network is comprised of 235 members nationwide.

Encantada Living breaks ground at Tucson National HSL Properties, Inc. broke ground on its new $46 million, 368-unit luxury apartment home community in the exclusive Tucson National area of the northwest Tucson metropolitan area. Encantada at Tucson National is the latest in its premier Southern Arizona luxury apartment collection. The property is scheduled to open for lease-up in the summer of 2015 and will be completed in fall of 2016. Formed in 1975, HSL Properties currently owns and operates over 10,000 apartment units in 42 apartment communities and is the largest apartment owner in Southern Arizona.



The cost of growth Cities adopt new development impact fees per new state law By Jake Hinman & Courtney LeVinus


ities and towns across Arizona have updated their development impact fees pursuant the new requirements of the state’s development impact fee enabling act. The new Act requires that all municipalities come into full compliance with the Act by August 1, 2014. The Aug. 1, deadline was the second and final deadline expressed in the new Act and was essentially a reset date for fees across the state. In perhaps the most significant fee adjustment caused by the new state requirements, the city of Scottsdale reduced their impact fees by 61 percent. The fee reduction could save the industry nearly $5,000 per unit, depending on the nature of the project. The new fees took effect Aug. 1. Not all of the municipalities experienced such a dramatic (positive) shift like what occurred in Scottsdale. For example, the cities of Buckeye, Chandler and Gilbert and certain parts of Phoenix, will continue to assess some of the highest fees in the state. However the new state requirements did limit the fee increases in those jurisdictions by limiting the projects that could financed with the fees. In other municipalities such as


Glendale, Goodyear, and Peoria fees are increasing or decreasing depending on the (new) service areas in the given city. One of the more visible changes caused by the new state requirements is the inclusion of new service areas in cities that have historically collected the same fees citywide. The new state law requires cities to substantiate the nexus between an infrastructure project and the new development being served. The intent was to prohibit a city from collecting a fee from, for example, growth in the northern reaches of a city only to build a library or park in the south lands since, under this scenario, the new growth would not receive a direct benefit from the new library or park. Buckeye, Gilbert, Chandler, Glendale and Peoria have all created new service areas and, depending on where a project is built, the fees are different throughout. So how can a city like Scottsdale charge such low fees and other cities charge significantly higher fees? The answer can be a bit complicated and technical. However one of the major factors is the simple fact that some cities rely heavily on impact fees for growth-related projects while other cities use other financing tools bonds, capital improvement districts, sales tax revenues, etc. The city of Mesa is a prime example of such. Mesa assesses relatively low impact fees in order to supplement the other financing mechanisms, in their

Apartment News > December 2014/January 2015

case bonds. The new Act doesn’t specify how municipalities should finance growth-related projects, it simply limits what one of many financing tools — in this case impact fees — can pay for. Most of the noticeable changes in terms of fee adjustments were implemented in 2012, the first deadline included in the new Act. In 2012, we saw significant fee reductions across of the state as result of the new law explicitly prohibiting the collection of certain fee categories altogether. So where did all of these changes come from? In 2011, various stakeholders, including the AMA, compelled the Arizona legislature to pass comprehensive changes to the state’s development impact fee enabling act. The legislature passed the sweeping changes in order to create a more transparent and predictable process and to ensure that new development only pays a proportionate share for the costs of new infrastructure. Prior to the legislative changes, there was a growing tendency by some city officials to use development impact fees to finance city projects that weren’t necessarily attributed to new growth. In order to ensure that growth only pays its proportionate share, the new law prohibits municipalities from collecting fees for certain infrastructure projects, most notably any projects related to CONTINUED ON PAGE 12 >

LEGISLATIVE UPDATE Fee estimates* Municipality Apache Junction Avondale Buckeye Buckeye Buckeye Buckeye Chandler Chandler Chandler Flagstaff Gilbert Gilbert Glendale Glendale Glendale Goodyear Goodyear Goodyear Mesa Oro Valley Peoria Peoria Peoria Peoria Peoria Phoenix Phoenix

Service Area Citywide Citywide North Central North Central West Central East Parks, NW Parks, NE Parks, SE Citywide Neely Greenfield East West 101 West 303 North Central South Citywide Citywide South of Bell Rd Bell-Deer Valley Deer Valley-Pinn Pk N Pinn Pk, E Agua Fria W of Agua Fria Deer Valley Northwest

Total Utility $$2,956 $7,715 $7,134 $15,433 $9,114 $5,295 $5,295 $5,295 $$2,176 $2,378 $1,127 $1,127 $$2,536 $1,896 $2,872 $2,976 $2,908 $$$3,495 $3,495 $5,301 $2,655 $3,591

Total Non-Utility $3,907 $4,072 $1,904 $1,815 $1,815 $3,375 $4,637 $5,279 $5,356 $512 $5,592 $5,592 $2,227 $3,325 $$2,300 $2,538 $2,666 $1,420 $2,045 $547 $982 $982 $1,113 $1,376 $2,906 $2,906

Total DIF $3,907 $7,028 $9,619 $8,949 $17,248 $12,489 $9,932 $10,574 $10,651 $512 $7,768 $7,970 $3,354 $4,452 $$4,836 $4,434 $5,538 $4,396 $4,953 $547 $982 $4,477 $4,608 $6,677 $5,561 $6,497

Municipality Phoenix Phoenix Phoenix Phoenix Phoenix Phoenix Phoenix Phoenix Pima County Pinal County Pinal County Pinal County Pinal County Pinal County Pinal County Pinal County Queen Creek Scottsdale Surprise Surprise Surprise Surprise Surprise Surprise Tempe Tucson Tucson

Service Area Northeast Estrella North Estrella South Estrella Storm Water** Laveen East Laveen West Laveen Storm Water** Ahwatukee County Wide IFA 1 IFA 2 IFA 3 IFA 4 IFA 5 IFA 6 IFA 7 Citywide Citywide SPA 1 SPA 2 SPA 3 SPA 4 SPA 5 SPA 6 Citywide Central/East/West Southlands

Total Utility $3,591 $1,729 $2,651 $1,729 $2,575 $1,729 $3,141 $$$$$$$$$1,947           $1,079 $$-

Total Non-Utility $3,760 $2,685 $2,685 $5,112/acre $2,685 $2,685 $5,108/acre $1,100 $3,900 $4,462 $5,054 $3,613 $4,065 $2,646 $3,317 $3,317 $4,954 $$2,477 $2,686 $2,477 $2,686 $2,477 $2,477 $$4,025 $3,125

Total DIF $7,351 $4,414 $5,336 $4,414 $5,260 $2,829 $7,041 $4,462 $5,054 $3,613 $4,065 $2,646 $3,317 $3,317 $4,954 $1,947 $2,477 $2,686 $2,477 $2,686 $2,477 $2,477 $1,079 $4,025 $3,125

*All fees provided in this schedule are based off certain assumptions and may not reflect actual fees for any specific project. All multi-family utility fees based on 200 units with nine, 2-inch water meters. **The City of Phoenix Storm Drainage Fee is calculated on a per-acre basis and is not collected per MF unit. However, the fee is generally assessed with the permit for the first building and/or office/clubhouse.


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general government facilities (i.e. city halls and other government buildings), cultural facilities, solid waste facilities, libraries more than 10,000 square feet, and certain parks more than 30 acres. These facilities, among others, were explicitly prohibited from using impact fee financing since a new city hall or a large regional park benefits the entire community — not just new growth. In other words, a city can still build a brand new city hall or a large regional park with all of the latest amenities; they just can’t use impact fees to finance them.

Already compliant with state law, Phoenix and Tempe updating fees Phoenix was one of the first cities to come into full compliance with the law, making all of the necessary changes back in 2012. The city is currently in the process of updating their fees and service areas with

the expectation that the new fees will be implemented in April of 2015. Uniquely, Phoenix does not collect impact fees in the central core of the city, only in the northern and southern growth areas. This policy will not change with the new fees in April. Historically, the city of Tempe only collected impact fees for utility infrastructure i.e. water and sewer facilities. However, citing demand created by all of the new and expected development, the city is in the process of creating new non-utility fees — park, library, roadway, police and fire fees — similar to what most other Valley jurisdictions collect. The proposed fees have not been released to the public, but expect the new fees to be in place by the spring or summer of 2015. In terms of planning, developers should be aware of the “grandfathering provisions” provided in the new state law. With regard to any cities where fees will be increasing, the legislature did provide

some protections for the fee payers. Prior to this legislative change there was frustration within the development community that municipalities would unexpectedly increase their fees immediately before construction, causing significant harm to developers who had financing and budgets in place. To rectify this, the 2011 bill contained a “grandfather” provision. Specifically, A.R.S. 9-463.05(F) states that a new development fee or an increased portion of a modified development fee, “shall not be assessed against a development for twenty-four months after the date that the municipality issues the final approval.” For the purposes of the statute, final approval means an approval of a site plan. Courtney LeVinus is a principal with Capitol Consulting and Jake Hinman leads city and county relations for the firm. They can be reached at 602.712.1121.

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AHEAD New Board charts course for 2015

arly December marks a changing of the guard for the Arizona Multihousing Association. Each year, the association welcomes new board members to service and announces the new executive committee. Focused on succession planning, this committee will collaborate on long term strategies to build the impact and reach of the AMA. Departing board members earned a big round of applause and thanks for the board members for their impressive service. Their commitment and wisdom in service to the board was appreciated by staff and colleagues alike. The following board members are transitioning off the board in 2015: >> Lynn Zoroya of Redi Carpet >> Jim Pierson of Legacy Capital >> Ike Tippetts of Rainforest Plumbing & Air >> L iz Culibrk of Fairfield Residential Culibrk will be leaving the board in order to move up within Fairfield Residential, overseeing the management of properties on both coasts. Congratulations to all of the past, current and new board members of the AMA.

The AMA wishes to welcome nine new board members: Tyler Anderson, CBRE Julie Brelsford, ConAm Charles Huellmantel, Mesa Housing Associates

Apartment News > December 2014/January 2015


Brian Kearney, Gray Development Jim Kowalski, Kowalski Construction Gloria Munoz, Housing Authority of Maricopa County Stacy Weaver, Coinmach Wendy Weiski, Dunlap & Magee Mark Zinman, Williams, Zinman & Parham, P.C.

AMA 2015 Executive Committee Chair: Christine Shipley, Dunlap & Magee Property Management, Inc. Chair Elect: Chris Evans, HSL Asset Management Vice Chair: Amy Smith, Bella Investment Group Treasurer: Dale Phillips, Mark-Taylor Residential Secretary: Greg Morehead, Fairfield Residential Immediate Past Chair: Kimberly Fitch, Nicolosi & Fitch, Inc.

2015 AMA Board of Directors David Adame, Tiempo, Inc. Vicki Allison, Allison-Shelton Real Estate Services, Inc. Jen Ambrosius, LeaseHawk Tyler Anderson, CBRE Chapin Bell, P.B. Bell Companies Julie Brelsford, ConAm Lesley Brice, MC Residential Reid Butler, Butler Housing Company John Carlson, Mark-Taylor Residential Scott Clark, Law Offices of Scott M. Clark, P.C. Mike Clow, Greystar Real Estate Partners Keri Conyers, Alliance Residential Company Amy Davidson, Cox Communications Kohl Eisenhour, Greystar Real Estate Partners

Adam Greco, Burns Pest Elimination – AMC Enrique Grove, Republic Media Ryan Hartman, IROC Chair Robert Hicks, Alliance Residential Company Charles Huellmantel, Mesa Housing Associates Brian Kearney, Gray Development David Kotin, Kay-Kay Realty Jim Kowalski, Kowalski Construction Lesa LaRocca, Greystar Real Estate Partners Pam McCarthy, Fairfield Residential Omar Mireles, HSL Asset Management Melanie Morrison, MEB Management Services Gloria Munoz, Maricopa County Housing Kim Pacheco, Scotia Group Management

Erica Reinke, Camden Property Trust John Rials, Greystar Real Estate Partners Mike Rochon, Distinctive Carpets, Inc. - AMC Tucson Mark Schilling, MEB Management Services Pam Shelton, Allison-Shelton Real Estate Services, Inc. Pamela Sullens, Silver Mountain Real Estate Group Rondetta Troutman, Picerne Real Estate Group Bob Venberg, PEM Real Estate Group Stacy Weaver, Coinmach Wendy Weiske, Dunlap & Magee Debbie Willis, P.B. Bell Companies Mark Zinman, Williams, Zinman & Parham, P.C.

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AMA Celebrates Emerging Leaders


This year, the AMA launched its first Lyceum leadership class. This year-long program selects high potential apartment industry executives for a leadership training program to expose them to emerging issues in the industry. The long-term objective of the program is to build a more sustainable pipeline of leaders for the multifamily industry. Congratulations to all of the graduates in this augural class!

Lyceum Graduates

*Those graduates listed in green are AMA board members.

Jennifer Ambrosius, LeaseHaw Pam Anderson, Greystar Real Estate Partners Stephanie Baird, Riverstone Residential Elizabeth Beaulieu, Nicolosi & Fitch, Inc. Jennifer Beebe, Alliance Residential Company Luz Bruscini, MEB Management Services Missy Caruso, Distinctive Carpets, Inc. Linda Coburn, Mark-Taylor Residential Kameryn Evans, Camden Property Trust Tina Greco, Burns Pest Elimination Michelle Jenson, Greystar Real Estate Partners

David Kotin, Kay-Kay Realty Tommy McLaughlin, Redi Carpet Linda Morales, Sabino Canyon Apartment Homes Greg Morehead, Fairfield Residential Shar Morganstern, Scotia Group Management Heidi Pearce, MEB Management Services Steve Peters, Allison-Shelton Real Estate Services, Inc. Lisa Rosenfeld, HSL Asset Management Dallin Tippetts, Rainforest Plumbing & Air Luis Verger, Allison-Shelton Real Estate Services, Inc. Stacy Weaver, Mac-Gray The Laundry Room Expert Wendy Weiske, Dunlap & Magee Property Management Inc.

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Tune into the legalities of playing music in apartment common areas

By Donna H. Catalfio, Gallagher & Kennedy, P.A. partment complexes often play music in common areas to entertain their tenants or enhance the ambiance, but this entertainment comes at a cost. Music licenses run hundreds or even thousands of dollars per year. And failure to obtain a license can leave an apartment complex owner or manager susceptible to a much greater expense in the form of high dollar lawsuits. Under federal copyright law, a copyright owner must be compensated when his or her music is performed publicly. For apartment complexes, a public performance would include music played in the lobby, leasing office, pool areas, clubhouses, fitness rooms, lounges, theaters or business centers. The law applies to any music, whether it comes from radio, television, an MP3 player, CDs, or streaming audio. Many apartment complexes are not familiar with these requirements. As a result, copyright infringement lawsuits against property managers for these complexes are increasingly common. Penalties for playing music without the appropriate license can be severe, ranging from $750 to $150,000 per song.


Licenses offered by performing rights organizations Performing rights organizations (called “PROs�) are responsible for collecting royalties on behalf of music copyright owners. They offer businesses a license to use the music in their repertories in exchange for an annual license fee. The annual fee is based on a number of factors, including size, capacity and type of venue. The three largest PROs are BMI, ASCAP and SESAC. But importantly, each of these controls a distinct collection of songs. A license from a given PRO covers only music in that PRO’s repertory. To obtain clearance to use the majority of commercially released music, a business would have to obtain a license from all three. For this and many other reasons, the music licensing landscape can be difficult to navigate.

A limited radio and television exemption There is a narrow exemption that allows certain small businesses to play music from the radio or television without a license. This exception applies to apartment complexes that meet the following requirements:

>> No more than six speakers are used

in the complex, and no more than four speakers in any one room; >> No more than four televisions in the complex, and no more than one television in any one room; and >> No television has a diagonal screen size greater than 55 inches. The exemption does not apply when customers are charged a fee to watch the television or hear the radio, and it does not apply to music played from an MP3 player, CD, or streaming audio. In these circumstances, a license is required.

Alternatives to licenses from PROs Commercial music services, such as DMX, MOOD, Music Choice and PlayNetwork offer an alternative to licenses from one or more of the PROs. These music services provide background music solutions with the necessary licenses already in place. In the past few years, PROs have been engaged in an active enforcement effort to ensure their music is properly licensed. Businesses in every industry and across the country have received letters accusing them of copyright

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


Apartment News > December 2014/January 2015

infringement and demanding license fees. If music is part of your ambience, be sure you have the appropriate license or that the music service you use has obtained that license on your behalf. An experienced intellectual property attorney can help you navigate the requirements imposed by copyright law and identify optimal solutions. Donna Catalfio is a shareholder at Gallagher & Kennedy, P.A. in Phoenix, practicing a broad array of intellectual property services, including both transactional and litigation work. Her practice includes intellectual property litigation, brand clearance, trademark prosecution and protection, domain name disputes, copyright, licensing and technology transfer, trade secrets and social media issues. She can be reached at 602-530-8208 or


Q &A

Rent too high? By Andy M. Hull, Esq

Q: According to The Arizona Republic’s report in August, rent increases this year could be expected to be 4.5 percent. My apartment complex (55 and over) is raising tenant’s rents by more than 10 percent this year. Are there any restrictions to prevent the owners from charging retirement age tenants over double what the norm is? Do the tenants have any rights in this matter? A: In answer to your inquiry of raising of rents, please be advised of the following: The landlord is not restricted in the amount of rent increase that they

can request, it depends on many factors, such as comparable rental rates in the area. It is the owner’s sole decision regarding the increase. If a tenant is unhappy with the rent increase when they receive notice, their option is to vacate and rent elsewhere. Andy M. Hull is the principal of Hull, Holliday and Holliday, PLC. He can be reached at 602-230-0088.


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Supreme Court case could impact apartment industry

By Mark B. Zinman n what is clearly an important case for property managers and owners, the Supreme Court is set to decide whether a complainant (tenant) in a fair housing case must prove intentional bias or whether a “disparate impact” is enough to demonstrate discrimination. Disparate impact is when a neutral policy has an unintended negative impact upon a protected class. An example of a disparate impact argument would be a tenant alleging that the “no felony rule” discriminates against Black and Hispanic people. It has been argued that because statistically there are more Black and Hispanic people in jail than White people (, that the rule unintentionally discriminates



against a protected class based upon race. On its face, the “no felony rule,” is not discriminatory against a protected class, but statistically a protected class is being more negatively affected by the rule. Across the country, federal appellate courts have found that a disparate impact test does apply to fair housing cases. The Supreme Court has never decided the issue; however, because every case before them has settled. In the current case, the State of Texas is being sued for giving an abnormally high proportion of low-income housing tax credits only to minority neighborhoods, thus allegedly furthering segregation. While


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some other statutes, such as laws governing employment do prohibit any rule that affects a protected class, different language is used in the Federal Fair Housing laws. Therefore, it is possible that disparate impact test could be struck down as a basis for fair housing discrimination. The case is Texas Department of Housing and Community Affairs v. The Inclusive Communities Project, Inc., 13-1371. Mark B. Zinman is an attorney with Williams, Zinman & Parham P.C. He can be reached at 480-994-4732.

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n a brisk Friday in October, AMA members headed to work with sets of clubs in the trunk of their car. Their morning and lunch were spent on the links at the Scottsdale’s Starfire Golf Club. The event, AMA’s 19th annual, has become one of the most popular of the year because of the unique networking opportunities and time with members spent relaxing and getting to know each other. Before the golf foursomes even arrived, the anticipation for this annual AMA event was high. An energized Golf Tournament Committee signed up every hole sponsor early. These sponsors planned memorable holes to play through for the members. Early that morning players jumped in a line of golf carts to explore the course and to learn more about their partners for the day. Serious and not-so-serious players competed for lowest scores while being entertained by AMA members along the way. Every golf sponsor brought creativity and fun to their hole making the morning of play fly by. Teams had the opportunity to network and meet new friends along the course and the awards luncheon brought it all together with awards. A special thank you to Michelle Jenson with Greystar/ Riverstone and Karrie Hupp with, the AMA’s 2014 Golf Committee Chairs, for making this event so successful! AMA is looking forward to the 2015 20th Annual Tournament.





Kelly Martin, FSI Construction Dave Marcum, FSI Construction Fran Harmon, FSI Construction Matt Wilson

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RJ Radobenko, Roofing Southwest Jeff Krohn, Alliance Residential Brad Quinet

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While only a few teams took home trophies, the annual golf tournament was a winner for players and sponsors.

Apartment News > December 2014/January 2015


Almeria at Ocotillo Charms AMC Members Chandler’s newest PB Bell community, Almeria at Ocotillo, showcased the best that apartment living has to offer during the AMA’s Associate Member Council meeting. A classical Spanish guitarist and Flamenco dancer added to the ambiance as nearly 100 guests dined on generous food and beverage provided by the hosts. Ocotillo, one of Chandler’s most desirable master planned communities, was designed after a Spanish town and the Almeria architecture and design reflects this. Founded in 1976 by Phil Bell, PB Bell has been in an expansion phase over the past few years. spurt over the past few years. MT Builders, a general contracting company co-owned by Phil Bell and Mike Tarver, construct all of the PB Bell Developments and they work for a number of other local and national clients. Under Chapin Bell’s leadership, they currently employ more than 290 employees who manage 43 properties throughout Arizona. Their expansion is not only in the apartment community market, but they have added

construction, redevelopment and management to their portfolio of work. Hosting the AMC event at Almeria, members had the opportunity to meet PB Bell’s senior managers including Chapin Bell and Debbie Willis, Matt Heintz, Heather Garcia, Kira Brown, and the community manager Vanessa Leimback and her on-site team. Chad Connor of Affordable Fire & Safety won the raffled lunch with Debbie Willis and Matt Heintz. The PB Bell team shared the early success of the Almeria community, where 66 of the 389 apartment homes were leased prior to grand opening. The amenity rich community offers residents a state of the art fitness center that includes virtual training, three resort-style pools and two spas, a Bark Park and dog salon, theatre room with video wall and a children’s splash pad and tot lot playground. For residents who drive electric cars, this community even offers free car-charging stations.

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aintenance Mania participants competed for a chance to go to the National Championship at the NAA Conference in Las Vegas, Nevada in June, 2015. This event gives both maintenance and housekeeping staff the chance to showcase their skills and learn new ones along the way!

TUCSON With more than 250 AMA Members at the Tucson event, the crowds were cheering on the housekeepers at the Housekeeper Challenges, hosted for the first time in Tucson, and the maintenance team members at the eight competitions defined by the National Apartment Association. Congratulations to HSL Properties who showed the most spirit and won the Team Spirit Award! Thank you to the AMA Tucson Maintenance Mania Co-Chairs Richard Laytem of HSL Properties and Sue Campbell of Redi Carpet and the 2014 Maintenance Mania committee members. Thank you to all of the committee volunteers throughout the day of the event.

PHOENIX The Phoenix event had more than 600 attendees and everyone had their game


1st: Chris Jackson, HSL Properties 2nd: Dylan Reichardt, HSL Properties 3rd: Mike Ruske, Prime Group Residential HOUSEKEEPER CHALLENGE

faces on. The maintenance team members raced around the eight maintenance games and the housekeepers re-familiarized themselves with the returning Housekeeper Challenges. The energy of the event was so intense, there ended up being a draw for the Team Spirit Award! Congratulations to HSL Properties and Greystar/ Riverstone for tying on this coveted award! None of this would have been possible without the Phoenix Maintenance Mania committee members and a special thank you to the 2014 chair, Rodney Wilson of Greystar/Riverstone. Thank you to both our Tucson and Phoenix Sponsors: Affordable Fire & Safety AZ Partsmaster Blue Steel Security Burns Pest Elimination Cap X Construction

1st: Diana Garcia, HSL Properties 2nd: Claudia De La Rosa, Nicolosi & Fitch 3rd: Rosa Zabalza, Scotia Group

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1st Place, Richard Kafka, Mark-Taylor Residential 2nd Place, Michael Gonzales, Pinnacle, Family of Companies 3rd Place, Ariel Robleto, IPA Management




1st Place, Maria Montijo, Mark-Taylor Residential 2nd Place, Monya Evans, Alliance Residential 3rd Place, Marcele Herrera, Mark-Taylor Residential

Most Creative Car Design, Jason Ruiz, Mark-Taylor Residential Best Look, Tony Gomez, Alliance Residential Best Design & Use of Parts, Roberto Peralta, Pinnacle Management

Apartment News > December 2014/January 2015




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Apartment News December/January 2014-15  

Apartment News is the official publication of the Arizona Multihousing Association, providing the latest News and updates on communities in...

Apartment News December/January 2014-15  

Apartment News is the official publication of the Arizona Multihousing Association, providing the latest News and updates on communities in...

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