Industry News

NAAEI Selects CallSource to Deliver Custom LMS

CallSource® has announced the expansion of beta testing for the Learning Management System (LMS) it is developing for the National Apartment Association Education Institute (NAAEI).

“The NAAEI seeks to improve communication with and provide additional value to its local and state apartment associations around the country. After reviewing proposals from various education and technology companies, the NAAEI selected CallSource to design a customized learning management platform and to help develop content for the benefit of all our affiliates and their members,” said Maureen Lambe, CAE, NAAEI Executive Vice President.

The beta test is underway with the participation of several state and local associations. The new phase will add at least ten more affiliates. Beta participation allows the affiliates full access to the eLearning platform and their feedback will play an integral role in the perfection of the dynamic, state-of-the-art, educational platform. Read More

Apartment Sector Expected to Lead Rising Property Sales in 2010

As cap rates begin to stabilize, investors are showing more confidence in the commercial real estate market than at any point in the last two years according to a new report from New York based PricewaterhouseCoopers.  Investors forecast that the apartment sector will be the first to recover, noting that some multifamily assets already are showing slight value increases.

Owners and lenders are finally coming to agreement on the value of properties, overcoming at least in part, the bid-ask stalemate over prices that has impeded many transactions for more than a year.  Because of the new willingness of buyers and sellers to reach agreement on price, the report says that sales are likely to increase markedly over 2009 levels.  The report showed optimism about the lending climate as well. Banks appear more willing to lend, although underwriting remains very conservative and more equity is needed to secure debt, the report says. Source: National Real Estate Investor

April is Fair Housing Month

The Fair Housing Act (FHA) became law in April 1968, as Title VIII of the Civil Rights Act of 1968 (CRA). President Johnson made it official on April 11th, one week after the assassination of civil rights icon Martin Luther King, Jr., who fought for equality in housing.

The FHA was considered landmark legislation, prohibiting many types of discriminatory acts regarding the sale, rental, and financing of housing based on race, color, religion, and national origin. The FHA has since been amended to add sex, disability and familial status to the list of protected classes, as well as to strengthen the law's enforcement mechanism.  Since 1968, April has come to be regarded as a time to remember the FHA and reflect on the rights it gives citizens.Source: Fair Housing Blog

Multifamily Housing Developers Inch Back Into the Game

This year, real estate investment trusts, or REITs, are expected to start close to $1 billion in new multifamily projects, according to real estate research firm Green Street Advisors. While that number is still less than average, it is a significant increase over the $100 million of development starts in 2009.

Analysts caution that the increase in construction doesn't mean there has been an improvement in the business. But operators are betting that limited new supply, combined with an improving economy, will lead to ideal market conditions nationwide starting in 2011 or 2012. Source: The Wall Street Journal

Freddie Mac Plans More Emphasis on Multifamily Sector

In many ways, Freddie Mac’s single family side often overshadows the multifamily division.  But last year, more than one out of every three multifamily mortgages was a Freddie Mac origination. So, when Congress debates the fate of the government sponsored enterprises (GSEs) next year, the future of the apartment market will very much hang in the balance.

Last year, the GSEs were responsible for more than 80 percent of all multifamily loans. And while that combined market share is unsustainable in the long term, the competitive gap between the two companies is closing.  In 2008, Fannie Mae had about 40 percent of the market, while Freddie posted a 27 percent market share — a 13 percent gap. Last year, Fannie posted a 45 percent market share, and Freddie a 37 percent share — an 8 percent gap. Source: Multifamily Executive

Lead-Based Paint Regulatory Update: The U.S. EPA’s Renovation, Repair, and Painting (RPR) Rule

Beginning April 22nd, rental property owners, construction firms and contractors will need to pay heed to the U.S. Environmental Protection Agency’s new RPR Rule. This rule requires all renovations or dust sampling activities at single family homes, multifamily housing and child occupied facilities, built before 1978, to be performed by a certified firm. The rule requires that all persons actually performing the renovation work be certified or receive on-the-job training from the direction of a certified renovator.

Because the U.S. EPA implemented the rule under the Toxic Substances Control Act, it retains the authority to inspect work sites, review records and reports and respond to citizen tips and complaints. A violation of the rule can result in the suspension or revocation of a renovator’s certification. In addition, an enforcement action could be undertaken by the U.S. EPA against the firm completing the renovation work with possible penalties of up to $32,500 per day. The U.S. EPA, however, encourages persons to voluntarily disclose and correct violations prior to discovery by the U.S. EPA. Certain compliance incentives are also available to small businesses (less than 100 employees). Source: Association of Corporate Counsel

ASHRAE Publishes New Green Building Standard

The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) published a new green building standard (Standard 189.1) covering new and substantially renovated commercial buildings, including multifamily properties over three stories.

Standard 189.1 represents a significant departure from existing green building programs and standards.  All provisions are mandatory and regulate a broad spectrum of building practices. As a development committee member, NAA/NMHC successfully removed the most onerous provisions from draft versions, including arbitrary caps on apartment unit size and requirements for onsite renewable energy systems. While the final standard is an improvement over earlier versions, it still requires the use of products and technologies not used and unproven in the multifamily sector. Source: NAA

The 2010 Census: What Apartment Operators Need to Know

The U.S. Census Bureau is preparing for the 2010 Census. This constitutionally mandated survey is conducted every ten years for the purpose of counting every resident in the U.S. The information is used to determine how federal dollars are spent in communities for services such as hospitals, schools, public work projects and emergency services.

Participation in the Census is required by law, so property managers are advised to provide Census enumerators with reasonable access to requested individual apartments. This includes allowing enumerators to knock on apartment doors, or, where present, buzz apartment call boxes. Enumerators may have to return to the property several times to secure interviews and these repeat visits should be accommodated.  Property managers should ask for official identification before cooperating with any Census Bureau employees, which in most cases will be limited to a Census badge and bag. Source: National Multi Housing Council

New Orleans Backdrop for 2010 NAA Education Conference and Exposition

New Orleans will be the backdrop for the 2010 National Apartment Association Education Conference and Exposition on June 24th – 26th.  Bringing together more than 5,000 multifamily housing professionals, this event boasts world-class general session speakers, 40 education sessions and networking events that kindle new relationships to help boost member’s careers.

For seven years in a row, the NAA Education and Exposition has been the most attended apartment industry conference. This year the NAA also welcomes attendees from the National Affordable Housing Management Association (NAHMA) Summer Meeting. The NAHMA 2010 Summer Meeting, scheduled for June 23rd, will co-locate with the NAA Conference and provide additional education sessions and opportunities for networking.  Register today.