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February AIM - Legislative Issue
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February 2012
Delivering Your Message at the State House
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1215 Livingston Ave. Suite 200, North Brunswick, NJ 08902 • (732) 220-0200
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I N E V E R Y I S S U E
Table of ContentsFebruary 2012 n Issue 1
28
Annual MeetingNJAA Installs New President, Executive Board
and Board of Directors at Annual Membership Meeting
18 Leadership at the Statehouse
Trademarks, name brands and other copyrighted items used in this publication are the property of the respective owners.
AIM AdvertisingContact Christine Haber at [email protected] or 732-992-0603 for rates and deadlines.
THE OFFICIAL PUBLICATION OF THE NEW JERSEY APARTMENT
ASSOCIATION
EXECUTIVE DIRECTORJean [email protected]
VP OF GOVERNMENT AFFAIRSLegislative EditorConor G. Fennessy
DIRECTOR OF COMMUNICATIONSEditor
Christine Haber [email protected]
DIRECTOR OF REGULATORY AFFAIRS & RESEARCH
Fast Facts EditorNicholas Kikis
ACCOUNTING & OFFICE MANAGEREileen [email protected]
EDUCATION & EVENTS MANAGERNiambi Ivery
EDUCATION & MEMBER SERVICES COORDINATORCasey O’[email protected]
ADMINISTRATIVE ASSISTANT& RECEPTIONISTJaclyn [email protected]
New Jersey Apartment Association - HQ104 Interchange Plaza, Suite 201
Monroe Township, NJ 08831Tel: (732) 992-0600 Fax: (609) 860-0060
Legislative Office172 West State Street, Suite 304
Trenton, NJ 08608Tel: (609) 393-5200 Fax: (609) 393-5222
www.njaa.com
8 7
5Directors & Officers
Fast Facts
New Members
F E A T U R E S
10 Members in the News
22 Political ActionNJAA PAC: A Record Setting Year
Thanks to Our Generous Supporters
11 Committee Corner
37 Education & Event Calendar
16 Landlord - TenantNJ Law Revision Commission
Approves Landlord-Tenant Report
24
Maintenance ManiaSponsorship Opportunities
Registration Form
12 Government AffairsFighting on All Fronts in 2011
Cover & Table of Contents photo by Conor Fennessy, NJAA
30 Member SpotlightCIS Management Inc
In the CourtsCourt Authorizes New Hybrid Sewer Rate
Structures for Multi-Family Apartments26
34 Higher LearningReduce Energy and Maintenance
Costs with State Money
6President’s Message
Fast FactsMultifamilyMarketUpdate
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 effec�ve rents (rent a�er 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%, sugges�ng a �ghtening of supply. It is important, however, to take this data with a note a cau�ous op�mism as infla�on again eclipsed rent growth, vacancies remain elevated, and large concessions con�nue to be offered.
Asking Rent $
% Chg Q4 '10 to
Q4 '11
Effective Rent $
% Chg Q4 '10 to
Q4 '11
Vacancy %
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.
Multifamily Rents and Vacancy RatesFourth Quarter 2011 versus Fourth Quarter 2010
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).
$1,296
$1,308
$1,318 $1,315
$1,296
$1,287 $1,286
$1,276 $1,278
$1,286 $1,295
$1,302 $1,307
$1,314 $1,323
$1,335
$1,240 $1,250 $1,260 $1,270 $1,280 $1,290 $1,300 $1,310 $1,320 $1,330 $1,340
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Q32009
Q42009
Q12010
Q22010
Q32010
Q42010
Q12011
Q22011
Q32011
Q42011
New Jersey E�ective Rent Growth
February 2012 | AIM�
Matt Adler, Adler ResidentialMichael Barry, Applied Development CompanyMichael Beirne, The Kamson CorporationAndrew Cohen, Rock PropertiesJoseph Collins, CALECOVincent Comperatore, Comperatore Associates, Inc.George Cowden, Multi-Housing Depot by ARISue D’Angiolillo Apartment FinderWilliam Diggs, Renaissance Equity, LLCAnn Emerson, Equity ResidentialLarry Falkow, The APTSJonathan S. Gershen, The Gershen GroupAndrew Goldberg, RestoreCoreMichael Goldberg, Goldberg Realty AssociatesAlan R. Hammer, Esq., Brach Eichler LLCGeorge Jacobs, JK Management, LLCJoseph Kazarnovsky, Fieldstone Properties, LLCTom Kretsch Segal & SegalRonald S. Ladell, AvalonBay Communities, Inc.Anthony E. Lauro, Affiliated Management, Inc.David Legow, Legow Management CompanyJerome J. Lombardo, C.J. Lombardo CompanyScott Machlovitz, Hilton RealtyJim McGrath, PRD ManagementMichael O’Dea, Hekemian & Company, Inc.Diana Penn, JMG Realty, Inc.Marshall Rosen, Solomon OrganizationSteve Rudolph AFR Furniture RentalsDavid Siegel, Coinmach CorporationJeff Smith, Kriegman & Smith, Inc.Larry Stein, Appliance Brokers, LTDMeg Viezbicke, Apartments.comJohn Zoetjes, American Architectural Window & Door
Directors & Officers
Treasurer Lynne Aber
Bertram Associates
President Brent Kohere
Home Properties
1st Vice President Michael Haydinger
First Montgomery Group
2nd Vice President William Dailey
CIS Management Inc.
Secretary Steve Waters
Morgan Propeties
Vice President of Associate Affairs
John Cranmer Archer & Greiner
NJAA Board Officers
Vice President Joseph Spadaccini
The Kamson Corporation
Executive Director Jean Maddalon
NJAA
Vice President Jack Linefsky
Value Companies, Inc.
Jeff Smith, Kriegman & Smith, Inc.Tom Kretsch, Segal & SegalJonathan S. Gershen, Esq., The Gershen GroupDavid Legow, Esq., Legow Management Company Peter J. WeidhornMichael Goldberg, Goldberg Realty AssociatesPaul Kaliades, Renters Legal Liability InsuranceMark S. Rosen, Esq., Solomon OrganizationNorman A. Feinstein, Esq., The Hampshire CompaniesHerbert Brien, Lismarc Management Corp.Donald M. Legow, Esq., Legow Management CompanyRobert Goldberg, Goldberg Realty AssociatesAndrew B. Abramson, The Value Group, Inc.Richard Segal, Segal & SegalSam Herzog, S.A.M. Holding CompanyAlfred Sanzari, Alfred Sanzari Enterprises (1932-2005)
2012 Board of Directors
Past Presidents
AIM | February 2012 �
Hello 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
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
President’s Message
Involvement Leads to Success
by Brent KohereHome Properties
February 2012 | AIM�
New Members
Welcome New MembersThe 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 [email protected] and help strengthen your Association and the multi-family housing industry.
Owners
6803 Boulevard East, LLCMr. Michael Martirano4 Tanager LaneMorristown, NJ 07960Phone: (201) 588-5483
C & S Jefferson, LLCMs. Melissa LapperP.O. Box 817Somerville, NJ 08876Phone: (908) 722-7272Fax: (908) 722-9215
Elias Mallouk Realty CorporationMr. Jeff Mallouk411 Hempstead Turnpike, Suite 101West Hempstead, NY 11552Phone: (516) 280-2890Fax: (516) 280-2893
Priderock Capital ManagementMs. Laura McCabe601 Riverside AvenueLyndhurst, NJ 07071Phone: (201) 708-6444Fax: (201) 939-2288
Associates
Capture the MarketMr. Bill DeMarco 1805 Royal Lane, Suite 102Dallas, TX 75220Phone: (215) 704-5665Video Production
Dogwood Building SupplyMr. Joe Copsey 328 North Spring StreetWinston Salem, NC 27101Phone: (336) 650-9724Fax: (336) 722-8800Building Supply, Renovation and Development
E & G Exterminators Inc.Mr. Ed Gorczynski 122 North BroadwaySouth Amboy, NJ 08879Phone: (732) 721-6368Fax: (732) 721-5389Exterminating/Pest Control
EAM AssociatesMr. Rick Marx 3350 Highway 138Building 2, Suite 223Wall, NJ 07719Phone: (732) 556-9190Fax: (732) 556-9195Energy Management, Purchasing & Consulting
Eastern Contractor ServicesMr. Michael Colaiacovo 106 Iron Mountain RoadMine Hill, NJ 07803Phone: (973) 361-9505Fax: (973) 361-0206Insulation Contractors
EnTech Digital Controls, Inc.Ms. Laura BendayanP.O. Box 339Lakewood, NJ 08701Phone: (732) 730-1595Fax: (732) 730-0695Energy Management
Ferguson EnterprisesMr. Bill Havard190 Oberlin Avenue NorthLakewood, NJ 08701Phone: (732) 425-8635Fax: (732) 905-9628Plumbing
G5Ms. Stacy O’Keefe 550 NW Franklin Avenue, Suite 200Bend, OR 97701Phone: (541) 633-7271Fax: (541) 225-5166Internet Services
GreenTech Energy ServicesMr. Ed Hambor122 East Kings Highway, Suite 503Maple Shade, NJ 08052Phone: (856) 439-9400Fax: (856) 778-1668Lighting Consultation and Supply
Hargett LeasingMr. Michael Hargett4417 Walter Nelson RoadNorth Bergen, NJ 28227Phone: (704) 607-1756Leasing Services
Liberty Pest Management ServicesMr. Paul BoisvertP.O. Box 520Howell, NJ 07731Phone: (732) 585-6756Fax: (732) 612-1045Exterminating/Pest Control
McKirdy & Riskin, P.A.Mr. Richard P. DeAngelis, Jr.136 South StreetMorristown, NJ 07962Phone: (973) 539-8900Fax: (973) 984-5529Attorneys
AIM | February 2012 �
New Members
McPuff Chimney ServicesMr. Tom Spinelli 1220 Route 28Branchburg, NJ 08876Phone: (800) 339-1492Fax: (908) 722-3081Chimney Services
Mr. Ugly LLCMr. Cliff Wolff254 Route 46 EastMine Hill, NJ 07803Phone: (973) 537-0537Fax: (973) 537-9222Bathtub & Tile Refinishing
North Jersey Board UpMs. Maria Benson P.O. Box 441Elmwood Park, NJ 07407Phone: (877) 412-6273Fax: (201) 533-0200Board Up
NVE BankMr. David May 76 Engle StreetEnglewood, NJ 07631Phone: (201) 916-2800Fax: (201) 568-9821Mortgage Services
Petro Jersey IndustriesMs. Christina Racelis990 Cedar Bridge AvenueBrick, NJ 08723Phone: (800) 707-2022Fax: (732) 477-7513Environmental Testing, Consulting/Cleanup
Pierce-Eislen, Inc.Mr. Ron Brock, Sr.9200 E. Prima Center Pkwy, Suite 150Scottsdale, AZ 85258Phone: (480) 663-1149Fax: (480) 663-6269Data/Market Research
Southern Pool FurnitureMr. Don O’Grady2330 Wyandotte RoadWillow Grove, PA 19090Phone: (215) 659-8929Fax: (215) 659-8090Outdoor Furniture
Supreme Metro CorporationMr. Jason E. Ciavarro1499 Jersey StreetSouth Plainfield, NJ 07080Phone: (908) 561-3590Fax: (908) 561-3595Asphalt/Paving
Woodruff Energy US, LLCMr. Robert Petracci73 Water StreetP.O. Box 777Bridgeton, NJ 08203Phone: (856) 455-1111Energy Management, Purchasing & Consulting
Our Experience Has Brought Us to
New Heights in Landlord/Tenant Law!
Contact Jennifer L. Alexander, Esq.
415 Route 10, Suites 6-8Randolph, NJ 07869Tel: (973) 366-1188Fax: (973) 366-4848
60 East 42nd Street, Suite 1735New York, NY 10165Tel: (212) 867-6069Fax: (646) 998-8029
February 2012 | AIM10
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 ManagerSecureWatch24 has announced that Neil Budhram has joined the company
as Manager of its new Fusion Centre-a 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
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 GroupHFF 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 BuildingOfficials 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 NameLevy, 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 PresidentThe 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
Member News
Member News
AIM | February 2012 11
Board of DirectorsOn 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.
Convention & Education CommitteesThe 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 CommitteeOn 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
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.
Membership CommitteeThe 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.
The NJAA Charitable FundChildren’s Holiday Party CommitteeFour 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
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 Larry Falkow, The Apts Magazine
Committee Corner Your fellow members at work
Committee Corner
photo by Brad Hamilton, Brad Hamilton Photography
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.
Looking for a Vendor?
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 [email protected]
for more information.
February 2012 | AIM12
The 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 on-site 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.
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-MeteringSimply 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 hold-out of the 50 states in not allowing sub-metering in rental housing. After 2011, that dubious distinction is no more.
Redundant Façade Inspection RequirementsSometimes bad ideas really are the hardest to kill. Legislation modeled after a local façade inspection ordinance in Philadelphia was introduced on this side of
Fighting on All Fronts in 2011Utility Submetering, Redundant Facade Inspections, Rent Control, Duplicative Municipal Inspections, Credit Checks, COAH and Bed Bugs
by Conor G. FennessyVP of Government Affairs
Government Affairs
AIM | February 2012 13
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 InspectionsNew Jersey is the only state in the nation requiring
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 ProcessAfter 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.’
Government Affairs
February 2012 | AIM14
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 bi-partisan 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
continued from page 13Fighting on All Fronts in 2011
Government Affairs
Advertise in the 2012 Membership DirectoryThe 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.
Identify yourself as a player in the multi-family housing industry and add some punch to your free Members-only listing by placing an ad in the NJAA Membership Directory - where the Multi-Family Housing Community connects.
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AIM | February 2012 15
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Federal Updateby 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
News from National
February 2012 | AIM16
NJ Law Revision Commission Approves Landlord-Tenant ReportProposal would modernize landlord-tenant laws for the 21st Century, but faces an uncertain path in the New Jersey Legislature
by Nicholas KikisDirector of Regulatory Affairs & Research
After 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 multi-housing 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
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.
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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
Landlord - Tenant
Leadership at the StatehouseThe 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 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.
Assemblyman Lou Greenwald (D-Camden)Majority Leader
Senator Loretta Weinberg (D-Bergen)Majority LeaderThroughout 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.
Senator Brian P. Stack (D-Hudson)Member - Community and Urban AffairsSince 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 four-year 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.
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.
Assemblyman Jon M. Bramnick (R-Union)Republican Leader
New Committee Member
President Robert HannaBoard of Public UtilitiesRobert 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.
Commissioner Richard E. Constable III, Esq. Department of Community AffairsRichard 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.
New Cabinet Members
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.
AIM | February 2012 21
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Housing Champion Award
One of the top priorities for NJAA in 2011 was legislation aimed at elimi-nating duplicative municipal regis-tration and inspections of multiple dwellings. Assembly Majority Leader Joe Cryan sponsored and advocated for this important legislative initia-tive. NJAA was pleased to present Assemblyman Cryan with the Hous-ing Champion Award for this demon-strated leadership.
Over three years ago, the NJ Law Revision Commission embarked upon an ambitious project to modern-ize and update the landlord-tenant laws that govern our industry. Don Legow, of Legow Management, rec-ognized 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 apart-ment owner and an attorney, was invaluable to our efforts. The NJAA was pleased to present Past President, Don Legow with the Housing Cham-pion Award for this contribution to such an important project.
NJAA Honors Two Housing Champions
February 2012 | AIM22
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:
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 pro-apartment 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
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 for-sale 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 [email protected]. n
Poli t ical Action
NJAA PAC: A Record Setting YearThanks to Our Generous Supporters
by Conor G. FennessyVP of Government Affairs
YEAR ELECTION FUNDS RAISED
2011 Assembly & Senate $206,8502010 $179,2002009 Governor & Assembly $192,3002008 $193,9912007 Assembly & Senate $184,0752006 $203,2852005 Governor & Assembly $208,2272004 $213,2162003 Assembly & Senate $62,5242002 $80,5642001 Governor, Senate & Assembly $115,075
Charitable Fund
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
SCHOLARSHIPS NOW AVAILABLE!
February 2012 | AIM24
The 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 2012- 2015: Matt Adler, Adler Development, George Cowden, Multi Housing Depot by ARI, Sue D’Angiolillo, Apartment Finder, Alan Hammer, Brach Eichler,
NJAA Installs New President, Executive Board and Board of Directors at Annual Membership Meeting
Annual Meeting
AIM | February 2012 25
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
event photos courtesy of Larry Falkow, The APTS
Annual Meeting
February 2012 | AIM26
Court Authorizes New Hybrid Sewer Rate Structure for Multi-Family Apartments
By John CranmerArcher & Greiner, P.C.
Sanitary sewer costs have been a vexing problem on multi-family 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 multi-family 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 six-bedroom 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.
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
In the Courts
AIM | February 2012 27
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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In the Courts
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.
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
SPONSORSHIP OPPORTUNITIES
Please contact Niambi Ivery at [email protected] or (732) 992-0606 with any questions.
Safety Installation, sponsored by City Fire Equipment Company, Kwikset Key Control Deadbolt Test, Pfister FaucetRepair, sponsored by Central Wholesalers, Seasons Ceiling Fan Installation, Philips Advance Lamp & Ballast RetrofitCompany 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) $750Wilmar• 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) $500• 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) $250• 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
Snack Break at Competition Sponsor (no limit) $150• 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
Complete the registration form and fax to 609-860-0060 or mail to NJAA HQ:
Name: _______________________________________________________________
Company: ___________________________________________________________
Property: _____________________________________________________________
Address: _____________________________________________________________
City: _________________________________________________________________
State: _________________________________ Zip: __________________________
Phone: ______________________________________________________________
E-mail: ________________________________________________________________
Check One: _______ Competitor _______ Spectator
PAYMENT INFORMATIONPlease make checks payable to NJAA or authorize Credit Card payment as: Visa MasterCard American ExpressCard Number ___________________________ Sec Code ________ Exp ________Name ______________________________ Company __________________________Signature __________________________________ Date ________ Total $__________
Join us for NJAA’s 4th Annual Maintenance Mania!
NEW LOCATION :: New Jersey Convention & Expo CenterTuesday, March 13, 20122:30PM to 7:00PM
Presenting Sponsor:
$80 for Member Competitors - $100 for Non-member Competitors$45 for Spectators; $60 for Spectators after March 2ndRegistration Includes Cocktail Reception Hosted By:
SIGN UP TODAY TO RECEIVE YOUR OFFICIAL CAR WHEELS
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 Center97 Sunfield AvenueEdison, NJ 08837
104 Interchange Plaza, Suite 201Monroe Township, NJ 08831
For additional information contact
us at at 732-992-0606 or [email protected].
February 2012 | AIM30
Helping residents realize their dream of home and pride has defined CIS Management, Inc. since its founding in 2004. As the property management affiliate of Community Investment Strategies (CIS), Inc., the company is committed to providing unrivaled 24-hour/7-day-a-week on-site services at CIS’ 55+, senior/assisted living, mixed-use, market-rate and affordable housing communities.
“At CIS Management, we continually strive to maintain the highest levels of service and programming excellence, for which we have become known, that our residents expect and merit,” said William Dailey, the division’s president. “Our comprehensive and responsive property management services reflect CIS’ ‘with you for life’ philosophy, meaning that once a resident becomes part of our family, we will do everything we can to support them and address their needs over the long term – not just for the length of their one-year lease, but for many, many years to come.”
The talented CIS Management team, which includes a live-in superintendent and on-site property manager at each community, is responsible for the day-to-day management tasks encompassing more than 2,000 affordable housing units developed and owned by CIS, a certified woman-owned business enterprise (WBE) established in 1994. In addition to Mr. Dailey, the CIS Management team includes Karen Lofton, vice president, Tania Brown, director, Cheryl Lessing, director of compliance, as well as a highly qualified corps of property management professionals. CIS Management provides regulatory compliance, administrative agent services, market repositioning, renovation oversight, contract administration,
marketing, leasing and sales services, resident services, social activities programming, senior services, and third-party, facilities, asset and financial management.
“Our team handles the entire management process, from initial marketing through rent-up and tax-credit compliance to far-reaching resident education programs, such as computer and resume writing assistance, to ease the transition from public housing to private affordable housing,” explained Mr. Dailey. “The secret to our success is directly linked to the special bond, based on trust and relationship-building, that is forged between our staff and our residents.”
The company and its communities are the recipients of numerous industry awards, including several other 2011 Garden State Awards. These include Heritage Village at Manalapan, named Best Curb Appeal (Central Jersey, built after 2000); Heritage Village at Elizabeth, recognized as Best Managed Properties Mid/High Rise Apartments (Affordable/North Jersey, built after 1981); and Heritage Village at Elton Corner, honored as Best Managed Properties Garden/Low-Rise Apartments (Affordable, built after 2000).
One example of CIS Management’s efficiency and rapport is Whitney Crescent, an 80-unit affordable apartment-rental redevelopment in Glassboro. To replace the severely distressed complex formerly known as Bentley Woods, nine buildings had to be demolished in phases and residents needed to be relocated, temporarily. Each household is now receiving priority residency in the new buildings and assistance from CIS Management with their move back to Whitney Crescent.
MEMBER SPOTLIGHT
Community Investment Strategies, Inc.
NJAA 2011 Management Company of the Year - Affordable
Member Spotlight
Whitney Crescent
AIM | February 2012 31
Like all of CIS’ communities, Whitney Crescent offers an affordable, maintenance-free lifestyle along with numerous amenities often not associated with low-to-moderate income communities. Unique designs typically feature a private, exterior front door leading to a front porch and maintenance-free front yard – characteristics often connected with homeownership and achieving the American dream.
People-First Philosophy Propels CIS to Industry Forefront“What makes CIS and each of its affiliates unique is that we recognize all people, regardless of income level, are defined by where they live,” said Christiana Foglio, founder/owner and CEO of CIS. “With this in mind, CIS creates homes where we would want to live and raise our own families.”
As a result of this innovative approach, the company has emerged as a leading fully integrated commercial real estate company, doubling its volume in the past several years. CIS further distinguishes itself from its competitive set by providing in-house finance, development, construction, management and supportive senior health services that bridge the health and wellness gap.
To date, CIS has developed a broad spectrum of multi-family properties, ranging from garden apartments to mid- and high-rise complexes, valued in excess of $350 million. Recently completed projects include Waters Edge Crescent, a 71-unit affordable rental community in the City of Elizabeth, where 600 distressed public housing units have been replaced on the waterfront; Cape Manor, a supportive residential housing complex for individuals with developmental disabilities, including young adults with autism; and Heritage Village at Seabreeze, a 100-unit affordable senior living community that incorporates social, recreational and personal care services for those 55 years of age and older in Forked River.
“CIS specializes in creating commercial real estate developments and low-to-moderate housing initiatives that have a long-term, positive impact on each community,” said Ms. Foglio, an industry veteran with more than 25 years experience as
a public servant, professional planner and private developer. “We partner with community groups and public officials to identify potential opportunities to restore city neighborhoods with creative housing solutions while supporting local revitalization initiatives.”
Committed to more than a “bricks and mortar” approach, CIS strives to become one with the community, from project inception and beyond completion, by demonstrating its unwavering corporate citizenship, advocacy, people-first philosophy and
dedication to promoting gender and ethnic diversity.
“As a woman business owner, and as someone whose resident base is primarily comprised of women headed households, I feel it is my obligation to create opportunities for personal and professional advancement for women and minorities on a company- and community-wide basis,” said Ms. Foglio. “We also hire locally based female- and minority-owned subcontracting firms for each development project, as standard practice, to support economic and business growth on the local level.”
CIS’ innovation, sense of community, relationships and reputation for high-quality construction have positioned the company for significant growth
opportunities in the next five years. Based in Lawrenceville, the company is currently expanding its development and redevelopment activities within urban areas to incorporate market-rate and affordable housing components, as well as special needs housing. In addition to CIS Management, CIS’ affiliated divisions include CIS Development and CIS Construction, LLC. n
Member Spotlight
Heritage Village at Elizabeth
Heritage Village at Seabreeze
428 A & S Boiler519 Aaron & Company517 Acadia219 Advanced Pavement Technologies717 AFR Furniture Rental635 Aldo Design Group711 American Architectural Windows & Doors
203 American Carpet South510 Apartment Finder311 Apartments.com420 AppFolio516 Appliance Brokers Ltd.310 Archer & Greiner216 Arrow Steel Inc.434 AVCO Supply Inc.206 Axiom Communications832 Bader Company504 Bargold Storage Systems830 Belfor USA408 BH Security111 The Brickman Group 534 CALECO521 CallSource429 Carfaro Inc.503 CB Richard Ellis637 Central Wholesalers Inc505 Champion Utility Sub-Metering406 Chute Master Environmental 211 City Fire Equiptment Co.602 CMQ Floor Covering401 Coinmach105 Columbia Bank410 CoreLogic SafeRent701 CORT Furniture Rental209 Design East411 Direct Supplies Warehouse332 Delaware County Fire Restoration506 Eastern Contractor Services509 Ehrlich, Petriello, Gudin & Plaza317 Elias B Cohen403 Emlin Group, ltd.520 Energy Squared LLC
323 EnTech Digital Controls622 Executive Credit Management202 Falcon Engineering620 Feinstein, Raiss, Kelin & Booker LLC618 For Rent Media Solutions821 Fowler Route Company601 Frankford Umbrellas316 Gebroe Hammer404 General Plumbing Supply435 GreenTech Engery Services318 Gutter Master LLC508 Handy Trac Systems201 HD Supply720 Hercules Corporation309 HESS120 High Tech Landscaping609 The Home Depot409 Indatus417 Insurent303 Integrated Business Solutions435 Investors Bank718 J. Rapaport Flooring405 JEM Appliance419 Jewel Electric Supply Co.430 Karl’s Appliances721 Kenneth Jaffe Advertising522 Kipcon, Inc.301 Kislak604 Lawns By Yorkshire603 Legacy Energy407 LEW Corporation619 Lewis Chester Associates, Inc507 LexisNexis702 Lundt Combustion Systems117 M. Miller and Son204 Mac- gray422 MaGrann Associates210 Manhattan Welding Company 306 Marcus & Millichap 818 Martin Greenbaum511 Meridian Capital Group611 Mitchell Supreme Fuel Oil
100 Mohawk industries402 Move.com305 MSB Resources437 Multi-Housing Depot by ARI708 NAA207 National Restoration320 National Tenant Network518 NWP Services Corporation719 Oil Tank Services307 Onorati Construction Co. Inc.432 On-Site.com817 P. Cooper Roofing108 PC Richard308 Pilera Software, LLC606 Property Owners Association734 Property Solutions819 RealPage, Inc608 Regal Bank418 RestoreCore304 Rifkin Rosen829 Roto-Rooter530 RWC Windows, Doors & More416 Sax Macy Fromm & Co., PC605 Screening Reports Inc.319 SEBCO Laundry Services501 SERVPRO of New Jersey101 Sherwin Williams218 Sign-a-Rama of Cherry Hill217 Spin Cycle502 SureDeposit335 TrashPro302 Valet Waste617 Verizon Enhanced Communities634 Waldor Schulman205 Western Pest Services321 WILMAR103 Withum Smith & Brown PC632 Woodruff Energy US, LLC334 Yardi Systems Inc421 Young Adjustment Company
E X H I B I T O R L I S T
More Than 1,300 Prospects Await You at the 23rd Annual NJAA Conference & ExpoMay 21-23, 2012 :: Atlantic City Convention CenterFrom 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 fill-ing 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.
Premium Booth Available
Standard Booth Available
BoothUnavailable
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
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Entrance to Keynote & Breakfast
HD Supply Kislak Company Coinmach
Archer & Greiner
Elias B. Cohen
P. Cooper Roofing
Acadia Windows & Doors
Marcus &Millichap
Apartments.com
RestoreCore
CoreLogicSafeRent
Gebroe Hammer
Sax Macy Fromm Insurent
Multi-Housing Depot by ARI
ApartmentFinder
Move.com
Direct Supplies
Warehouse
Emlin Group
AvcoSupply
ApplianceBrokers
JewelElectric Supply
For RentMedia
Solutions
IntegratedBusiness Solutions
RealPage
BHSecurity
GutterMaster, LLC
TrashPro
ArrowSteel, Inc.
Mitchell SupremeFuel Oil
ManhattanWelding
Indatus
Verizon EnhancedCommunities
J. RapaportFlooring
City FireEquipment
Central Wholesalers
YoungAdjustment
NWPServices
SureDeposit
Lawns byYorkshire
Meridian CapitalGroup
SEBCO LaundryServices
CALECO
MohawkIndustries
JEMAppliance
MSBResources
M. Miller& Son
SpinCycle
BrickmanGroup
Chute Master
Environmental
YardiSystems, Inc.
FalconEngineering
Aaron& Co.
HerculesCorp.
PC Richard
WesternPest Services
CB RichardEllis
Mac-Gray
ValetWaste
American Architectural Window & Door
BaderCompany
MartinGreenbaum
AppFolio
GeneralPlumbing
Supply
SherwinWilliams
LEWCorp.
AmericanCarpetSouth
HESS
RotoRooter
CMQ FloorCoverings
NationalTenant
Network
On-Site.com
Rifkin& Rosen
WithumSmith & Brown
ExecutiveCreditMgmt
AdvancedPavement
LewisChesterAssoc.
CarfaroInc.
Wilmar
A & SBoiler
Levy, Ehrlich
& Petriello
AldoDesign
Karl’s Appliances
BargoldStorage
EasternContractor
ServicesLexisNexis
Oil TankServices
Green TechEnergy
MaGrannAssociates
HighTechLandscapes
Sign-A-Rama
ChampionUtility
OnoratiConstruction
DesignEast
EnergySquared
AFR Furniture Rental
RegalBank
721
KennethJaffe
Advertising
DelawareCounty FireRestoration
HandyTrac
Systems
WaldorSchulman
CallSource
EntechDigital
Controls
PileraSoftware
The HomeDepot
ServPro of NJ
WoodruffEnergy US
FowlerRoute Co.
FeinsteinRaiss Kelin& Booker
BelforUSA
100 AISLE
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PropertyOwnersAssoc.
FrankfordUmbrellas
PropertySolutions
NationalRestoration
Services
CORTFurniture Rental
NAA
ColumbiaBank
Legacy Energy
Lundt Combustion
Systems
RWCWindows,
Doors & More
Investors Bank
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 [email protected] or 732-992-0606 for more information.
February 2012 | AIM34
Almost 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,
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 garden-style 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 [email protected].
Reduce Your Energy and Maintenance Costs With State Money
By Allan SamuelsEnergy Squared
Higher Learning
AIM | February 2012 35
Higher Learning
www.energysquaredllc.com | 800.828.4118
Energy Squared has obtained over $3 Million in
Goverment Incentives for the Replacement of
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NJAA 2008 Color Ad-AIM.qxp:Layout 1 3/11/09 1:52 PM Page 1
February 2012 | AIM36
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 Griffin Alexander, P.C.
15 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
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.
2012 Education and Event Calendar
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.
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 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.
FEBRUARY
1FREE
The ABC’s of Real Estate Tax Appeals in NJby Alan R. Hammer, Esq. and Daniel Pollack, Brach Eichler LLC
27-29 FREE
NAA Advanced Instructor Training (AIT)Monroe Township
MARCH
8FREE
Socializing Your Community - Social Mediaby Apartments.com
13 Maintenance ManiaNJ Convention & Expo Center, Edison
27-28$330
Certified Pool Operator (CPO)by James Dyer, HD Supply
APRIL
24-25 CAMT Plumbingby Mike Goldberg, RestoreCore
MAY
21 Annual Convention Golf OutingBallamor Golf Course, Egg Harbor Township
21-2323rd Annual Conference & ExpoAtlantic City Convention Center& Borgata Hotel
JUNE
5-6 CAMT Electricby Mike Goldberg, RestoreCore
13FREE
Capture and Retain Residents through Popular New Media Channels by Apartments.com
SEPTEMBER
12FREE
Interactive Multifamily Marketingby 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.
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THE MOST WIDELY USED RESIDENTIAL LEASE IN THEMULTIFAMILY 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
More than 13,000 communities use the National Lease Program.
VISIT THE NATIONAL LEASE PROGRAM AT WWW.NAAHQ.ORG/LEASE
LeaseProgram_Jan11:AdTemplate.qxd 1/3/11 11:24 AM Page 1
We Don’t Dabble
This is the time of year when every law firm comes out of the
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.
in Tax Appeals.
Alan R. HammerPartner973.403.3113
Daniel J. PollakPartner973.403.3119
M. Sidney DonicaPartner973.403.3125
101 Eisenhower Parkway n Roseland, NJ 07068 n www.bracheichler.com
The tax appeal deadline is April 1. Don’t miss it. Call us soon.
C
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104 Interchange Plaza, Suite 201Monroe Township, NJ 08831
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CORE #1 - P.C. Richard & Son - Ad for BUILDERS DIVISION ‘AIM/NJAA’ Magazine • BLEED AD SIZE: FULL PAGE: 8.75”w x 8.5”h INCLLUDES .25” BLEED --Full Color-BLEEDREQUEST PREFERRED POSITION - Thank you!
