Great advancements highlight dynamic year.

The year 2005 has been one of the most dynamic in NAA's history. As 2006 approaches and my term as President nears completion, I would like to express my gratitude to have served during this time of growth and advancement.

The NAA Education Institute (NAAEI) is on its way to gaining the funding needed to pursue its mission of actively promoting the apartment industry as a viable career choice; increasing the number of colleges and universities offering a four-year degree program in residential property management; and updating and improving NAA's six nationally recognized designation programs. The capital campaign for the Education Institute has surpassed $3.5 million of a total goal of $5 million.

This year we have laid the groundwork for tremendous membership growth. Five new affiliates joined NAA in 2005.

Because of the horrific natural disasters that hit the Gulf Coast, the apartment industry had an opportunity to show heart and help house the more than a half-million evacuees from Louisiana, Mississippi and other hard-hit areas. NAA affiliated apartment associations coordinated efforts with state and local governments, and individual members reached out to aid those in need. For more on the efforts of NAA and its affiliates, see page 54, On the Ground in New Orleans, by Freeman Smith.

This issue of UNITS--my last as President--turns our attention to the coming year. In 2006, the apartment industry will be blessed by incredible opportunities and cursed by rapidly rising risk factors. In 2006 Industry Forecast: A Bright Horizon, page 16, Christopher Lee examines trends to watch and asks, "Are you ready for 2006?"

NAA Consulting Economist Robert J. Sheehan shares the statistics that will shape the apartment industry next year on page 20 in 2006 Rental Housing Outlook: A Market in Recovery, and on page 22 in 2006 Economic Outlook: Continued Growth.

Mold, asbestos, indemnity clauses and construction defect claims will vex apartment owners in 2006. On page 24, 2006 Legal Outlook: Navigating Complex Issues, John C. Manly explains how to negotiate next year's legal quagmires with the right foresight and tools.

Utility costs now make up 15 percent or more of a community's total operating expenses, with the potential to keep increasing. Read Top Tips for Reducing Energy Costs on page 32, by Lisa Trosien, for ideas to help communities across the country save money not only during the winter months, but year round.

When the tax man commeth, appeals are sure to follow. On page 35 in Fighting City Hall: The Angst Over Property Tax Assessments by B. Kreisler, learn how independent owners are reducing their property taxes.

This issue of UNITS also explores some emerging specialty housing issues. Is military housing management that different from managing conventional market-rate apartment communities? Find out on page 40, Military Housing: Traditional Management With a Patriotic Mission by Mindy Grill.

Unlike previous disaster relief notices, a recent IRS ruling contains an exciting provision regarding the first year of the tax-credit period. Read Hurricane Housing Extra Credit by Brian Carnahan on page 50.

I am proud to have served as President of NAA this year when the apartment industry has shown its strengths and NAA has realized great opportunities. Thank you for the honor of being at the helm in 2005.