The official publication of the Arizona Multihousing Association
GROWING STRONG The future is bright for the Arizona multifamily housing industry
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AMA’s role in educating decision makers The issue of affordable and workforce housing has become a hot button political issue in most major cities in America. Yet when compared to all of the major cities in the U.S., Metro Phoenix has consistently been named one of the most affordable places to rent a home or apartment. This is no accident. For 50 years the AMA has worked diligently to educate decision-makers about the hidden costs of development, and our affordability scores reflect that hard work and effort. As our members and lobbying team help to educate and advocate for fair regulation of our industry, and work with local, regional and national leaders to address the challenges of creating housing, we will continue to keep Arizona competitive. A housing market that offers the entire spectrum of housing is a healthy market, and that is exactly what we have here in Arizona. Is there room for improvement? Absolutely. The market evolves constantly, and it is our job to stay ahead of the curve. For example, a major cost to families is transportation. Which is why our industry supported the extension of the light rail, bus and street improvement tax in Phoenix. Our downtown areas across the State are redeveloping and adding more density, avoiding increased sprawl, which helps to alleviate the problems we see in Los Angeles, San Francisco, Seattle and Portland. This gives Arizona a competitive advantage in attracting talent and new business. Our advocacy on behalf of our members and our industry extends far beyond working toward fair regulation and the taxation of our residents and development. We want our market to offer families across the spectrum safe, clean, affordable housing, and we will continue to be part of the education process and the solution in order to do so.
— Tom Simplot, President and CEO Arizona Multihousing Association
Your vote counts!
ollowing an exciting primary election just a few short weeks ago, we now stand just two months from an historic national election. Many of Arizona’s legislative races are decided in the primary and a number of the local city elections saw candidates get elected in September. From the Presidential ballot, to competitive congressional races across the state, down to the tactical city races that can impact our businesses most immediately, these are elections where we need to get educated and vote. If you ever question whether your vote counts, just look at the congressional race in the east valley where a candidate won by just NINE votes! Encouraging our colleagues, employees and residents to make their voice heard is the least we can do. AMAPAC, our political action committee, will continue to make strategic investments in campaigns where candidates understand and support our industry. Additionally, we know that the NAA will engage in federal campaigns as needed. In July, our board of directors spent two days in Flagstaff in our annual board retreat, and this stellar team of leaders worked together on a strategic plan for the future of the AMA. We set priorities for the association and we outline timelines for delivery to meet the needs and interests of our members. I know you will be seeing more initiatives rolling out following this work. I want to express my sincere appreciation for the professional talents and insights shared with the board and to all of those who made the time to work on making this association stronger for the future. — Chris Evans, AMA Board Chair HSL Asset Management
AMA Office: 818 N. 1st St., Phoenix, AZ 85004; 602-296-6200; Fax:602-296-6178 Tom Simplot President & CEO email@example.com Erika Kowalski Director of Operations firstname.lastname@example.org Phone: 602-296-6210 Michelle Rill Director of Membership, Events & Education email@example.com Phone: 602-296-6205
Lauren Romero Tucson Area Association Executive firstname.lastname@example.org Phone: 520-323-0643 Fax: 520-447-7747
Stephanie Garcia Events and Education Assistant email@example.com Phone: 602-296-6202
Valarie Waldvogel Marketing and Sponsorship Specialist firstname.lastname@example.org Phone: 602-296-6203
Sharon Hosfeld Manager of Community Outreach & Smoke-Free Community Coordinator email@example.com Phone: 602-296-6214
Deanna Jordan Manager of Membership and Business Development firstname.lastname@example.org Phone: 602-296-6212
Amy Hindenlang Member Services Administrator email@example.com Phone: 602-296-6209
Kyle Simplot Accounting & Operations Administrator firstname.lastname@example.org Phone: 602-296-6207 Todd Bradford Membership Benefit Services Manager email@example.com Phone: 602-377-2553 Cassidy Campana Apartment News Editor & Communications Consultant firstname.lastname@example.org Phone: 602-770-6014
ENJOY ALL OF THE BENEFITS OF AMA MEMBERSHIP - APPLY ONLINE AT AZMULTIHOUSING.ORG www.azmultihousing.org
Apartment News > October/November 2016
TABLE OF CONTENTS
> October/November 2016 > www.azmultihousing.org
ALL PHASES OF PEST CONTROL
• Monthly Pest Control Programs
The future is bright for the Arizona multifamily housing industry
will affect the workplace and bottom line
Basic provisions/requirements of the The Federal Fair Labor Standards Act
18 Looking ahead AMA prepares new strategic plan, sets new priorities and goals
• Bed Bugs • Bee Service/ Emergency
• Beehive Removal • Roach Control/ Programs
16 Changes that
• Termite Specialists/ FREE Est. • Termite Warranties Available
14 COVER STORY:
DEPARTMENTS 6 News & Happenings 8 Legally Speaking 12 Legislative Update 19 On the Scene 20 Best Practices 21 Events & Education 22 Thank You Patron Members
• Scorpion Control • Rodents, Gophers, Wasps
• Pigeon Control • Weed Control
Reasonable Rates Phone Quotes
If you would like additional copies of the Apartment News delivered to your office, just email Todd at email@example.com with the names and address you would like added. CR EATE D BY R E PU B LIC M E DIA CUSTOM PU B LISH I NG
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AMA NEWS & HAPPENINGS
Waldovogel joins AMA
Valarie Waldovogel recently joined the AMA as the new events and education administrator. Valarie replaced Desi Brinkman working with Michelle Rill. She has a passion for photography and turned this talent into a business a few years ago. A Phoenix native, Valarie enjoys spending her free time with her husband and two young children. The mother of a son with autism, she’s been active in issues around autism to help educate and support families.
PB Bell comes to the Melrose Curve PB Bell recently broke ground on its new 204 unit luxury apartment community, The Curve at Melrose, located in the heart of the urban Melrose District in Phoenix. Joining Chapin Bell (second from left) were Mike Trueman, P.B. Bell; Phoenix Councilwoman Laura Pastor; Tom Simplot, Arizona Multihousing Association; and Mike Tarver, MT Builders.
Caterpillar to open division office in downtown Tucson Tucson’s downtown will see a new major employer in the coming year. Caterpillar Inc. recently announced it will bring hundreds of jobs to the region over the next five years. The company plans to move their surface mining and technology offices to Arizona. Early plans estimate that the company will bring more than 600 high-quality positions to Tucson.
Executives will be relocated to Tucson from around the globe. The economic impact of the move could be $600 million according to state estimates. Caterpillar currently operates a proving ground in Green Valley. The company cited the University of Arizona and a strong workforce as key to their decision to locate in downtown Tucson.
Amazon Locker creates partnership with Mark-Taylor communities
he dramatic rise in online shopping has started companies like Amazon thinking about how it can address challenges for its customers. The Amazon Lockers have started to appear around the city to help their customers send and receive shipments easily. And now the company has partnered with Mark-Taylor to bring the Amazon Locker right into their communities.
There are 37 Mark-Taylor communities that now have these specialty lockers in their communities. The fully automated package storage locker allows residents to safely ship and access their packages from Amazon anytime. This alleviates some of the burden on the management staff on site who often have to deal with shipments arriving. Amazon operates a major distribution center in the
Valley and this is their first partnership with an apartment management company. The company operates a number of
the Amazon Lockers in other major metropolitan markets and has seen early success with the model.
ENJOY ALL OF THE BENEFITS OF AMA MEMBERSHIP - APPLY ONLINE AT AZMULTIHOUSING.ORG 6
Apartment News > October/November 2016
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Knowledge is Key Understanding the Arizona Slumlord Abatement Act is important By Andrew M. Hull, Esq. Hull, Holliday and Holliday, PLC
rizona’s Slumlord Abatement Act, which took effect Aug. 6, 1999, targets two types of undesirable residential properties: properties with criminal activity and properties with health and safety disrepair or deterioration. This article will examine the main provisions of the law.
Properties with criminal activity If a landlord refused to take steps to stop criminal activity occurring on his or her property, the Arizona Superior Court may order a governmental authority or received to operate the property for as long as the court deems necessary to abate the nuisance. It will charge the owner with all costs, fines up to $10,000 or even close the property. Action may start following a complaint made by the Arizona attorney general, county attorney, city attorney or resident of the county or city of the affected nuisance. Additionally, the court may consider the reputation of the site to prove the existence of a nuisance. If the owner or agent is aware of criminal activity, it is his or her duty to stop it. However, the act deems the owner or agent knowledgeable of the problem if local law enforcement authorities serve the individual a notice of documented criminal activity. The act requires the owner to take reasonable, legally available actions to stop illegal activity. Owners should pursue resident-related illegal activity through an immediate eviction notice, specifically through special/forcible entry and detainer action. If the owner attempts an eviction based on illegal activity, he or she has a defense under the act regardless of the outcome. The owner, however, must prosecute the case in good faith. Although the efforts required to establish good faith vary from eviction to eviction, it is best to employ certain efforts. These include: legal representation; compelling witness testimony acquired through subpoena; a reasonable investigation; and documentation. For criminal activity not related to residents, efforts may vary. These include hired security and improvements in lighting and landscaping. It may be in the owner’s best interest to join one of the crime free programs administered by the numerous city police
departments, such as the Crime Free Multi-Housing Program.
Properties in disrepair, deterioration The act also applies to properties in disrepair or those that have deteriorated to a point where they pose a threat to health and safety. The act defines a “slum property” as a residential rental site that has deteriorated or is in a state of disrepair. It manifests one or more of the following conditions that present a danger to the health and safety of the public: >> Structurally unsound exterior surfaces, roof, walls, stairwells, porches or railings. >> Lack of potable water, adequate sanitation facilities, and adequate water or waste pipe connections. Hazardous electrical systems or gas connections. >> Lack of safe, rapid egress. >> Accumulation of human or animal waste, medical or biological waste, gaseous or combustible materials, dangerous or corrosive liquids, flammable or explosive material or drug paraphernalia.
Registration with county assessor The act requires all residential rental property owners to provide their information with the county assessor. Owners must update any changes within 10 days. The owner must provide his or her name, address and telephone number. Out-of-state owners must provide the name, address and telephone number of their in-state agent. The act states that the property shall not be occupied if this information is not on file at the county assessor’s office. Owners who do not provide this information are subject to a mandatory $1,000 penalty. Additionally, they face a $100 penalty for each successive month until they register. The only way to avoid the fines is to provide the required information with10 days upon receipt of the violation complaint. Landlords who manage non-registered properties now face problems with residents who try to prematurely break their leases. The renters often take the position that the lease
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 > October/November 2016
is invalid and not binding and they can move out without notice. This position is not legally sound and a court should not uphold it until the landlords receives written notice to comply and fails to do so. The Slumlord Abatement Act states that if the landlord complies within 10 days after receiving the complaint, the appropriate court will dismiss it. In other words, the renter could legally break the lease only after the landlord receives a 10 day non-compliance notice and does not register within the 10 day period.
Example Lou Zurr, Cray-Zee, Sy Coe and Dee Minted rent an apartment at the Cuckoo’s Nest Apartments. Manager Mane E. Act has them sign a 12 month lease. After four months, the roommates have a falling out. Lou Zurr becomes unemployed and cannot pay his portion of the rent. Cray Zee and Sy Coe relapse into thinking they’re aliens from outer space. Dee Minted gets arrested after her photo appears on “America’s Most Wanted.” While surfing the Internet, Lou Zerr finds that the Cuckoo’s Nest Apartments are not registered with the county assessor. He tries to use this information to get out of paying further rent. Judge Millie Tent refused to cancel the lease because the county never served Mane E. Act a noncompliance notice to comply and register. Andy M. Hull is the principal of Hull, Holliday and Holliday, PLC. He can be reached at 602-230-0088.
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New guidelines concerning criminal history
Immediate modifications to the application process may be necessary By Denise Holliday, Esq. Hull, Holliday and Holliday, PLC The Department of Housing issued new guidance on April 4, 2016 that requires anyone offering residential rentals to revisit their rental criteria. This guidance, found in the article, “Office of General Counsel Guidance on Application of Fair Housing Act Standards to the Use of Criminal Records by Providers of Housing and Real Estate-Related Transactions,” discusses how The Fair Housing Act applies to the use of criminal history by landlords as a part of their screening of a prospective tenant. HUD released some very
compelling statistics that indicate that some protected classes are being disproportionately impacted by previous criminal history arrests and convictions. HUD did not make persons with felonies a new protected class. They still allow the landlord to use criminal records in the background screening process, however, this new decision conclusively prohibits a landlord from denying anyone solely based on an arrest that did not result in conviction. HUD also recommends that a landlord create rental screening criteria based on proof that the policy the landlord creates is necessary to achieve a substantial, legitimate and non-
discriminatory interest. One of those interests is based upon the fact that landlords have an obligation to ensure resident safety. Another valid interest is to protect the rental property from damage or liability.
ARRESTS AND CONVICTIONS While this HUD article is complex in nature, the basic guidance for a landlord is that the rental criteria must differentiate between arrests and convictions. Additionally, landlords must also avoid policies that have a blanket ban on all felonies and that treat all felonies as identical in nature and time that has passed since it was committed. In order to avoid
potentially violating The Fair Housing Act, the policies need to consider the nature of the criminal conviction, the severity of that crime, the length of time since the conviction occurred, and the tenant’s actions since the completion of that sentence. This means that all landlords covered by this federal law need
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MODIFYING CRITERIA It is important to remember that the changes to the “felony history policy” is a fluid issue since HUD just passed this resolution and has not provided a lot of guidance at this point. In addition to modifying criteria, it is also recommended that the on-site team be trained to make the correct verbal response to any prospective asking about a felony issue since this final decision making process is best left to top management with authority over that type of policy. At the on-site level, a good response to an applicant’s
question about how their specific criminal background may affect their ability to rent from a specific landlord should be: ‘Our corporate policy addresses felony convictions. If you would like management to take into account any additional information before a previous felony conviction causes your application to be denied, please provide that additional information and documentation with your application.’ Forwarding to a team member trained on understanding HUD’s guidelines the entire rental application along with any additional information the application believes should be considered is a major step toward complying with these new guidelines and avoiding a fair housing violation claim.
Denise Holliday is a partner of Hull, Holliday and Holliday, PLC. She can be reached at 602-230-0088.
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Arizona Multihousing Association PAC announces 2016 general election candidate endorsements
By Courtney LeVinus & Jake Hinman, Capitol Consulting
District 10 District 11
he Arizona Multihousing Association Political Action Committee (AMAPAC) has endorsed candidates seeking election in the state’s legislature and various municipalities in the Valley. AMAPAC made the endorsements based upon the candidates’ track record in office and/ or their participation in a candidate interview process. The Arizona Multihousing Association strongly recommends that members consider AMAPAC endorsed elections when heading to the polls. These endorsements will also be posted to online at azmultihousing.org.
CITY OF CHANDLER
Nora Ellen (City Council)
CITY OF PHOENIX
District 14 District 15 District 16 District 17 District 18 District 19
Debra Stark (City Council, District 3)
CITY OF SCOTTSDALE
W.J. “Jim” Lane (Mayor) Suzanne Klapp (City Council) Virginia Korte (City Council)
District 1 Senate: Karen Fann House: Noel Campbell, Arlo “Chip” Davis District 2 District 5 District 6
House: John Ackerley House: Regina Cobb
Senate: Sylvia Allen House: Brenda Barton, Robert Thorpe
District 8 Senate: Frank Pratt House: David Cook, TJ Shope
District 24 District 25 District 26 District 27 District 28 District 29 District 30
Senate: Steve Farley
Senate: David Bradley
Senate: Steve Smith House: Mark Finchem, Vince Leach Senate: Warren Petersen House: Eddie Farnsworth
House: Darin Mitchell, Don Shooter
Senate: Gail Griffin House: Drew John, Becky Ann Nutt Senate: Nancy Barto House: John Allen, Heather Carter
Senate: David Farnsworth House: Doug Coleman, Kelly Townsend Senate: Steve Yarbrough House: JD Mesnard, Jeff Weninger House: Jill Norgaard, Bob Robson
Senate: Lupe Contreras House: Mark Cardenas
Senate: Kimberly Yee House: Paul Boyer, Anthony Kern Senate: Debbie Lesko House: Kevin Payne, Tony Rivero
Senate: Judy Burges House: David Livingston, Phil Lovas
Senate: John Kavanagh House: Jay Lawrence, Michelle Ugenti-Rita Senate: Katie Hobbs House: Lela Alston
Senate: Bob Worsley House: Rusty Bowers
House: Celeste Plumlee
Senate: Catherine Miranda House: Reginold Bolding, Rebecca Rios Senate: Kate Brophy McGee House: Mary Hamway, Maria Syms Senate: Martin Quezada
Senate: Robert Meza House: Ray Martinez
Updated list of endorsements based on results of the 2016 primary election. Courtney LeVinus is a principal with Capitol Consulting and Jake Hinman leads legislative affairs for the firm. They can be reached at 602-712-1121.
Apartment News > October/November 2016
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THE FUTURE IS BRIGHT FOR THE ARIZONA MULTIFAMILY HOUSING INDUSTRY
By Tom Simplot, AMA
he consistent message from speakers at the AMA Perspectives and Projections breakfast recently was there is still plenty of growth potential for the apartment industry in metro Phoenix. Taking center stage for the half day event was Grand Canyon University President Brian Mueller, and Director of Phoenix Community and Economic Development Department, Christine
Mackay. Together with panel discussions on Emerging Legal Issues and Real Data = Real Forecast, the conference helped clarify where the apartment housing industry has been in Arizona, and more importantly, where it is going. According to speaker Tyler Anderson, Vice Chairman of CBRE, Phoenix is projected to have a population growth of more than 100,000 new residents per year through 2019 and is expected to rank No. 2 among large cities for growth. “This growth is
Apartment News > October/November 2016
forecasted to translate into more than 14,000 new renters each year,” said Anderson. “This, coupled with the
Some of the P&P featured speakers Mark Dewane, Christine Mackay, John Affleck & Krishna Rao.
expected approximately 5,500 multifamily completions annually, points to strong demand for the industry.” Anderson discussed the impact of the housing market on the multifamily industry, “Home ownership rates are hitting 50-year lows and household formations continue to skew towards the for-rent market.” He pointed out the recovery of median home prices, which were at a low of $168,000 in October 2011 to the current $255,000 this August, and how the prices,
coupled with tighter lending practices, have helped fuel the drop in home ownership from a high of 74.4 percent in 2005 to today’s current level of 61.7 percent. “All these numbers add up to a strong for-rent market.” he said. Mark Dewane, senior vice president and financial advisor for RBC Wealth Management, provided insight on international geopolitical issues, and how they impact
SUPPLY AND DEMAND ANALYSIS
*All data is for projects with 50+ units
national and local economies. He also said that with the advantages that Arizona cities have compared to other large cities, the growth here should outpace most markets. “The future Arizona’s economy is one of growth and strong stability for the foreseeable future,” Dewane said.
Affordable housing Although affordable housing is a hot topic nationwide, metro Phoenix has been impacted less than other large cities across the country. Economic Development Director Christine Mackay presented an analysis of existing and pending housing for central Phoenix. According to Mackay, affordable and workforce housing within one mile of the central city represent over a third of all rental units in that area. Furthermore, when that circle is increased to a three mile radius, those categories represent over two thirds of available units; and when increased it to a five mile radius, still represents about one and a third more units than the class A and class B properties combined (including properties still yet to open). The data did not include properties under 50 units. Mackay also stressed that in this five-mile radius, over 90% of the properties were within one quarter mile from mass transit, which is an important consideration for affordable and workplace housing.
Section 8 waitlist “One of the biggest problems we face today in Phoenix is not a shortage of affordable and workforce housing, but a serious shortfall in the number of vouchers available to those in need.” — Chris Evans, AMA Chair, Executive Vice President of HSL Asset Management TOTAL WAITLIST APPLICANTS:
27,000 AVAILABLE WAITLIST SLOTS:
10,000 YEARS SINCE WAITLIST WAS LAST OPENED:
Impact of Grand Canyon University Grand Canyon University President Brian Mueller shared the story of the university, which has grown from approximately 900 students in 2008 at the main campus to more than 17,000 students on campus today, and a projected 30,000 students in the near future. The result of the growth has impacted the surrounding neighborhoods and Phoenix as a whole. Almost 60,000 students are now enrolled on campus and online combined.
Apartment News > October/November 2016
Changes that will affect the workplace and bottom line By Judy Drickey-Prohow, Hull, Holliday and Holliday, PLC
Non-exempt employees The underpinning of the Federal Fair Labor Standards Act is that employers must pay non-exempt employees a minimum wage of not less than $7.25 per hour (or higher if required by state laws) for all hours worked up to 40 hours per week. Non-exempt employees who work more than 40 hours in one calendar week must be paid at a rate of not less one and one half times their normal wages for each hour or portion of an hour that the
employee works in excess of that 40 hour work week. These provisions have not changed under the new rules affecting the FLSA although their application to certain categories of workers has changed.
Exempt employees The FLSA has always contained exemptions from the overtime rule for certain employees who are considered “exempt.” Those employees have traditionally been identified as “executive,” “administrative,” “professional” “computer” or “outside sales employees.”
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AZDPS Lic. No. 1003178
Under the old rules, to be considered an exempt employee under one of these categories the employer was required to comply with a two-part test: (1) the employee had to be performing critical duties associated with the workplace, and (2) the employee had to be compensated on a salary basis at a rate not less than $455 per week. Assuming that these criteria were met, the employee would be considered “exempt” from overtime rules established under the FLSA. Specifically, under the old rules the United States Department of Labor (DOL) established the following requirements: To meet the “executive” exemption, the employee must: >> Be compensated on a salary basis of not less than $455 per week >> Perform primary duties involved with managing the enterprise, or managing a customarily recognized department or subdivision of the enterprise >> Customarily and regularly direct the work of at least two or more other full-time employees or their equivalent; >> Have the authority to hire or fire other employees, or the employee’s suggestions and recommendations as to the hiring, firing, promotion or other change of status of other employees must be given particular weight.
To meet the “administrative” exemption, the employee must: >> Be compensated on a salary basis of not less than $455 per week >> Perform primary duties involving the performance of office or non-manual work directly related to the management of general business operations of the employer or the employer’s customers; and >> The primary duty must include the exercise of discretion and independent judgment to matters of significance. To meet the “professional” exemption, the employee must: >> Be compensated on a salary basis of not less than $455 per week >> Perform primary duties requiring advanced knowledge, defined as work which is predominantly intellectual in character and which includes work requiring the consistent exercise of discretion and judgment >> The advanced knowledge must be in a field of science or learning and >> The advanced knowledge must be customarily acquired by a prolonged course of
specialized intellectual instruction. To meet the “computer employee” exemption, the employee must: >> Be compensated on a salary basis of not less than $455 per week >> Be employed as a computer systems analyst, computer programmer, software engineer or other similarly skilled worker in the computer field performing the duties described below The primary duty must consist of: >> The application of systems analysis techniques and procedures, including consulting with users, to determine hardware, software, or system functional specifications >> The design, development, documentation, analysis, creation, testing or modification of computer systems or programs, including prototypes based on and related to user or system design specification >> The design, documentation, testing, creation of modification of computer programs related to machine operating systems; or >> A combination of the duties described above, the performance of which requires the same level of skill. Other exemptions not generally related to the housing industry exist for outside sales persons whose jobs customarily and regularly take them away from the employer’s place of business and for highly compensated employees who perform office or manual work and whose annual compensation is at least $100,000 per year.
Changes to the FLSA The new changes to the FLSA affect only one critical component of this existing statutory
scheme. That component is the weekly wage required to establish that an employee is an “exempt” employee. Beginning Dec. 16, 2016 the minimum wage for any “exempt” employee must be not less than $47,000 per year or $903.85 per week. For practical purposes this means that employees who perform work that was previously categorized as “executive,” “administrative,” “professional” or “computer employee” must be either paid at the higher weekly salary mandated by the law or must be paid time and a half for all work that they engage in for more than 40 hours per week. In addition to that higher pay, all previously existing requirements for classifying a person as an exempt employee must continue to be met. In its recent outreaches, DOL personnel have emphasized that they will be looking at both parts of the test in determining whether an employer has properly classified an employee as an exempt employee. In a recent presentation, for example, DOL personnel clearly stated that persons whose title includes “assistant” will always be considered hourly earners regardless of whether they earn $47,000 or more per year, because their job duties do not fit into the job criteria to fall within the exemption. Similarly those persons whose job duties might meet the exemption and who earn less than $47,000 will be subject to overtime requirements. Wage and hour laws can be complicated and the new amendments require employers to reconsider many longstanding classifications of their employees. Judy Drickey-Prohow is an attorney with the Law Offices of Scott M. Clark, P.C. She can be reached at 520-241-1847.
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LOOKING AHEAD By Amy Smith, Bella Investment Group AMA Board Vice Chair he Arizona Multihousing Association Board of Directors has worked closely with staff to prepare a new strategic plan to guide the association in its planning, activities, and initiatives into the next three to five years. The strategic plan drafted includes a redefined mission statement, identifiable key issues, and strategic objectives. The diversity of the Association, whose membership includes owner-operators, thirdparty property managers, and supplier/ associate partners, was well represented by those participating in the process. With the help of Joshua Dick, a facilitator with the National Apartment Association, the Board of Directors worked with staff to discuss the AMA’s identity, customers, activities, and
future. In addition, the group addressed the Association’s strengths and weaknesses, before tackling the key issues facing the association in the coming years. Tom Simplot, President and CEO of the Association, is excited about the future. “The AMA is now poised to start our next 50 years as one of the largest and most effective NAA affiliates in the country.” A highlight of the new plan is the introduction of a new mission statement for the Association: Multifamily housing leaders united in one trusted voice for Arizona’s rental community.
AMA prepares new strategic plan, sets new priorities and goals
While the approval of the final plan is set for a vote at the December 2016 board meeting, the group appeared excited about involving member committees in the implementation process come the new year. Key objectives of the draft plan include: >> Increasing membership recruitment to 260,000 units by December 2019. >> Increase associate membership value and retention. >> Explore educational offerings that interest members. >> Increase Association operations, including the identification and development of future leaders. >> Improve communication with members and the board. >> Increase government affairs clout and influence. Also included in the plan are exciting new strategies to address each objective.
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ON THE SCENE
RECENT AMA EVENTS This year’s winners are:
Best of Flyer: Encantada Peoria – HSL Best of Community Participation: Sera Bell Apartments – Centurion Best of Theme: Morningside on Scottsdale Ranch – PB Bell Best of Community Attendance: Brook Creek – ConAm Best of Committee Choice: Whispering Pines – US Residential
AMA SAYS FAREWELL TO PHOENIX CHIEF YAHNER, AWARDS PROJECT S.A.F.E ‘BEST OF ...’ WINNERS
appreciated and benefitted from his work. The AMA works closely with numerous Arizona city police departments to make our Project S.A.F.E. programs an integral tool to increase residents’ and property management staff’s safety, providing a high quality home environment for AMA residential properties. The AMA and the Project S.A.F.E. team recognized the achievements of the program participants with the 2016 “Best of…” awards. These teams deserve accolades for their hard work and dedication to making this program the great success that it is.
Phoenix Police Chief Joe Yahner spoke to a packed house at September’s Phoenix Dinner Meeting. This is the third time that Chief Yahner has spoken to the AMA, and sadly the last time he will do so as Police Chief — he will be retiring in October. Working with Chief Yahner, the AMA has developed a strong partnership with the City of Phoenix police. The Association’s members have
CHEERS FOR TUCSON TRADE SHOW Exhibitors and attendees celebrated the AMA’s first 50 years at this year’s Tucson Education Conference & Trade Show presented by Koglmeier Law Group. The committee’s theme of “Cheers to the Next 50!!” brought out the creative side of exhibitors. With over 450 attendees this year, the show expanded to the exhibit hall at the Tucson Convention Center. Full day attendees enjoyed presentations by Renate Mousseux on Body Language and Its Power, and LaughingStock Comedy Company as part of the education programming. For the first time, Tucson hosted a Trade Show After Party benefiting AMCF Big Hearts Tucson. Through sponsorships, donations and raffle prize sales, this committee threw another incredible fundraising event to support
organizations in our community including Our Family Services. Special thank you to the sponsors; Valley Wide Security, Redi Carpet, RentPath, Carpenter Hazlewood Delgado &
Bolen, HSL, MEB, Scotia Group, Nicolosi & Fitch, CoStar, Distinctive Carpets and Concepts; Space Planning & Design. —Lauren Romero, AMA Tucson Area Executive
Special Thank Yous to all of this year’s sponsors including; Koglmeier Law Group; Valley Wide Protection, Law Office of James R. Vaughan, WASH Multifamily Laundry Systems; For Rent Media Solutions, Law Offices of Scott M. Clark; SUNLAND; CSC ServiceWorks; ATI; Cox Communications, Distinctive Carpet; Valley Wide Security; For Rent Media Solutions
Apartment News > October/November 2016
An interview with Gloria Munoz, Housing Authority of Maricopa County Q: How did you get started in your career? How did your early work lead you to this work in affordable housing? A: My first professional job in the housing industry was with the City of Phoenix Housing Authority as a housing counselor working with clients receiving or needing housing assistance. I realized very early in my career the supply of affordable housing rentals didnâ€™t match the demand. We needed more affordable rentals to meet demand. I became very interested in learning more about increasing the supply side through development. I took a position at the State as a Housing Manager for the Arizona Department of Commerce. The responsibilities included managing a small HUD grant to work with communities in developing housing plans, managing the State bond volume cap and staffing the Az Housing Finance Authority who approved the issuance of tax exempt bonds by AZ Industrial Development Authorities for multi-family and single family housing. The bond programs were more interesting and exciting for me than the planning side. I wanted to meet the needs of low and moderate income households by challenging the single family bond issuers to add down payment/closing cost assistance and prepurchase counseling to the program. They agreed to meet
the challenge. The program targeted first time homebuyers and could assist more people with some help. My next challenge was to create a non-federal source to provide gap and match funds for housing development. With thorough research and advocacy/support from the non-profit community and the Legislature the Arizona Hous-
ing Trust Fund program was funded through unclaimed property deposits. Then in 1986, Congress created the Low Income Housing Tax Credit (LIHTC) program, I worked with the Legislature to establish the Housing Credit Agency for AZ to issue LIHTCs. Soon after the legislature created the Arizona Department of Housing (ADOH) to consolidate all the housing programs into one department. This provided the infrastructure necessary to support and manage the housing programs at the State level.
Q: You have more than 900 units in Maricopa
Apartment News > October/November 2016
County that you oversee today. As a leader in this space, what is the future of affordable housing? What models work best?
A: We need to support & develop a variety of housing options for all income levels in our communities. We need affordable housing options to match the incomes in the community; it would help eliminate long commutes, traffic congestion, transportation cost and stress. Matching private and public financing to create housing in both single and multi-family that meets the demand in the market. Itâ€™s going to take using political will to develop a housing plan that responds to housing needs of all income levels, so families can live and prosper in a community that is rich in amenities for their families. A diverse community is a healthier community.
Q: What do you see as the greatest need in terms of partnership or collaboration to bring this needed housing to the market here? A: The regulatory framework in which we develop affordable housing is so restrictive and burdensome it increases the cost per unit for affordable housing. It is difficult to build affordable housing; the barriers include competitive limited financial resources, no concrete or solid strategies by communities to increase affordable
housing, high land cost, NIMBY, limited rental assistance to meet demand for extremely and low income renters, increased delivery cost for new construction and locating affordable sites in high opportunity neighborhoods. I would like the production of affordable housing developed in same manner as any other privately developed apartment or single family communities. The limited federal resources used to develop affordable housing are so entwined to regulatory requirements/oversite it makes it impossible to keep cost down.
Q: Are there enough resources to meet the needs for affordable and workforce housing? A: There are not enough resources to meet the demand for affordable housing. The LIHTC is the only major affordable housing production program for multifamily and it is a competitive limited resource. At the federal level all the typical resources have been cut. No new funds have been allocated for rental subsidies or development in recent years, except for the new National Housing Trust Fund (NHTF) allocated to states this year. Gloria Munoz is the executive director of Housing Authority of Maricopa County. She has more than 36 years of experience in affordable housing finance, acquisition, management and development. She is currently redeveloping all the county public housing projects using the HUD RAD program.
EVENTS & EDUCATION AZMULTIHOUSING.ORG
Phoenix Classes held at the AMA Office, 818 N. 1st St., Phoenix 85004 Cost: $20 (non-members $40)
EDUCATION PHOENIX FAIR HOUSING Oct. 11, 9 a.m.-noon
AZ LANDLORD TENANT
Nov. 8, 9 a.m.-noon Continuing Education Credits: Legal Issues
EVENTS PHOENIX GOLF TOURNAMENT Oct. 21, 8 a.m.-3 p.m. Starfire Golf Club, 11500 N. Hayden Road, Scottsdale. Sponsorships available, contact AMA
PHOENIX MAINTENANCE MANIA Nov. 17, All day Phoenix Convention Center, South Building Cost: $65 Full day; $45 Competitions only; $25 Spectator. Sponsorships available, contact AMA
AMA HOLIDAY PARTY Dec. 8, 5-8 p.m. Wrigley Mansion Cost: Free for members Host: $350
Flagstaff FLAGSTAFF FAIR HOUSING Oct. 24, 9 a.m.-noon High Country Conference Center, 201 W. Butler Avenue, Flagstaff Cost: $20 (non-members $40)
TUCSON AMC MEETING
AZ LANDLORD TENANT ACT
Oct. 19 MEB’s Avilla Sabino
Oct. 13, 9 a.m.-noon La Quinta Inn & Suites Cost: $20 (non-members $40) Continuing RE Credits: Legal Issues
TUCSON NETWORKING EVENT- FALL FAMILY FESTIVAL & CHILI COOK OFF
Nov. 18, Oct. 13, 9-11 a.m. La Quinta Inn & Suites
Oct. 27, 5-7 p.m. Redi Carpet, 6000 S. Country Club Suite 190, Tucson
TUCSON MAINTENANCE MANIA
FIVE STAR TRAINING CLASS
TUCSON DINNER MEETING PRESENTING “BEST OF..” TUCSON PROJECT S.A.F.E. AWARDS Oct. 13, 5-8 p.m. Tucson Marriot University Park- 880 E. 2nd Street, Tucson Cost: $49 (non-members $59)
Nov. 10, All day Tucson Convention Center Cost: $65 Full day; $45 Competitions only; $25 Spectator
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Enjoy all of the benefits of membership, apply online at azmultihousing.org FOR MORE INFORMATION ON HOW TO BECOME A PATRON MEMBER OF AMA, PLEASE CONTACT MICHELLE RILL, 602-296-6205 OR MRILL@AZMULTIHOUSING.ORG
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