Joint legislative staff forecast: NAA/NMHC have created a powerful alliance and are vocal advocates on Capitol Hill for quality rental housing. (Capitol Conference Preview).

Apartments are growing in popularity. The old perceptions about who lives in apartments and who lives in houses are changing. Multifamily communities are made up of a diverse group of residents, who vary in age, race and income. No two communities are the same and no two residents are identical. It is very important that the laws and regulations that govern multifamily housing communities take into account the myriad issues that face both residents and owners. The National Apartment Association (NAA) and National Multi Housing Council (NMHC) strive to ensure that laws, codes, legislation and regulations meet the industry's needs.

NAA/NMHC have formed the Joint Legislative Program--comprised of a top-notch group of seasoned and experienced staffers who cover a broad area of topics, ranging from the environment to building codes to tax regulations to housing issues.

NAA/NMHC have created a powerful alliance and are vocal advocates on Capitol Hill for fair housing. By paying close attention to national activities and to federal legislative policy, the NAA/NMHC Joint Legislative staff make it their business to know all facets of the industry and to ensure that the multifamily housing industry has vigilant representation and a voice on Capitol Hill.

CLARINE NARDI RIDDLE NAA/NMHC Senior Vice President

Clarine Nardi Riddle is no stranger to either Capitol Hill or to residents of New England: she's held positions as both a Judge on the Connecticut Superior Court and as Attorney General of the state of Connecticut. Her varied background includes a law degree from Indiana University-Bloomington and a Doctor of Human Letters degree from Saint Joseph College. From there, she held positions with the Indiana General Assembly's House Ways and Means Committee and Senate Finance Committees. She also served as Staff Assistant to U.S. Senator Joseph I. Lieberman and as his Deputy Attorney General when he was Attorney General of Connecticut. Additionally, she served as Deputy Corporation Counsel of the City of New Haven, Conn.

As NAA/NMHC Senior Vice President, Riddle is involved in the oversight of the entire Joint Legislative program and the legal issues that are associated with the NAA/NMHC legislative/regulatory agenda. In addition to issues NAA/NMHC have been lobbying for years, many of the issues Riddle thinks will be important in 2002 are related to the terrorist attacks on Sept. 11, 2001. She said, "From the aftermath of Sept. 11, 2001, some localities and others are raising issues about the security of businesses, and high rise buildings in particular. In 2002, we need to assist in this effort but also be on the lookout for any onerous or inappropriate regulations in this area." The multifamily industry has worked on this issue over the years, and will continue to work to ensure that safety protections are in place for residents.

Insurance and reinsurance agencies announced that they would no longer provide terrorism coverage after the Sept. 11, 2001, attacks. In concert with other real estate organizations and others, NAA/NMHC began lobbying for federal protections to insure that acts of terrorism were covered by insurance. If the legislation does not pass in 2001, Riddle says NAA/NMHC will "lobby legislation to ensure that the federal government puts in place insurance protections for terrorism coverage--to allow real estate to be able to do business and secure lending with adequate insurance protections."

For more than six years, NAA/NMHC have been attempting to dose an existing loophole in the bankruptcy code. This loophole allows residents to live rent-free in their apartment community while they are going through bankruptcy. We will continue to work on removing this loophole from the code.

NAA/NMHC will also continue to lobby and advocate for the multifamily homing industry and our smarter, more balanced homing policy before the U.S. Millennial Housing Commission to make certain that changes are made that will provide quality affordable homing through improvements to current homing programs and the possible creation of a new production program or housing trust fund.

Other important topics in 2002 will be impact fees and how they are handled by the Internal Revenue Service in the depreciable basis of property and LIHTC programs, mold issues and Section 8 reforms.

JAMES N. ARBURY NAA/NMHC Vice President of Tax

Before working at NAA/NMHC, James N. Arbury spent 13 years on the staff of former U.S. Senator Donald W. Riegle (D-MI), first as Chief of Staff and then as Senior Policy Advisor with special emphasis on tax issues. Prior to that, he held various financial and general management positions with Ernst & Young, Chrysler Corp., Accuray Corp., Brand-Rex Wire & Cable and Ensign Bickford Co. Arbury received his Bachelor of Arts degree from Michigan State University. He has an MBA from the Harvard Graduate School of Business Administration and is a Certified Public Accountant (CPA).

As NAA/NMHC Vice President of Tax, Arbury covers all federal tax issues as they relate to owners, managers and financiers of multifamily properties and also federal and state telecommunications issues.

In 2002, he plans to focus NAA/NMHC's efforts on reducing the capital gains tax and to reduce or eliminate the depreciation recapture provision in the tax code. Arbury said that, over time, the current recapture provision has the potential to make investing in apartment communities look less attractive than other possible investments.

Additionally, NAA/NMHC opposes any law that could restrict existing tax laws regarding like-kind exchange. If the definition of like-kind exchange were tightened, it would become more difficult for owners to exchange their existing properties for alternative properties.

Arbury said, "Since 1994 NAA/NMHC have been at the forefront on telecommunications issues that might affect our industry. In 2002, we will continue to defend the right of multifamily community owners to enter exclusive contracts with providers of phone, video and data services." Arbury said that one of the best ways to ensure this goal is to help new providers of these services gain exclusive contracts for limited periods of time. Therefore, "we will continue our all-out effort at the Federal Communications Commission (FCC), the U.S. Congress, and in various state legislatures and utility commissions to underscore our position."

DAVID CARDWELL NAA/NMHC Vice President of Finance and Technology

Prior to working with the Joint Legislative staff, David Cardwell was the Senior Manager for Product Development at Freddie Mac. He also held positions as the Manager of Loan Production and Product Development and as the Manager of the Community Development Investment Group at Freddie Mac. Before working at Freddie Mac, he served in the Office of Affordable Housing Programs at the U.S. Department of Housing and Urban Development, as Director of Business and Redevelopment Activities for Monarc Construction/Trammell Crow Residential, and as Economic Development Director for the City of Falls Church, Va. Cardwell has a Masters degree in City and Regional planning from the University of Virginia and a Bachelor of Arts degree from the University of Maryland.

He notes that since Sept. 11, 2001, the majority of recent legislation has dealt with terrorism and the economy, thus non-insurance related housing proposals have not received a lot of attention. The Millennial Housing Commission's (MHC) report, containing recommendations for a national housing policy and ways to improve housing opportunities across the country, is due out in Spring 2002. As a result, Cardwell says, "it will generate much interest in the development of new programs and revisions to existing housing programs that affect the multifamily industry. This will be a major focus of the housing industry and policy makers."

He believes that current multifamily housing topics--section 8 housing vouchers, FHA (Federal Housing Administration) multifamily mortgage insurance, Office of Federal Housing Enterprise Oversight (OFHEO) Risk Based Capital rule and the housing trust fund proposal--will also continue to be important in 2002.

He says NAA/NMHC, "will closely follow what HUD does as it reviews, the insurance premium credit subsidy model for multifamily loans." Cardwell believes, "the implications for higher mortgage rates due to how HUD and OMB determine risk is a key element in the cost of FHA multifamily mortgage insurance."

On another critical front, Cardwell will be focused on efforts to seek Section 8 housing voucher reform. He says, that "both Congress and HUD want to see increased utilization and it is important that the program work for both residents and housing providers." In addition to the insurance premium issue, another vital topic for 2002, is a plan to introduce Section 8 Voucher Legislation that could allow property owners broader participation due to a more balanced program that would be more market responsive in its approach. Cardwell contends that "the current program, while it provides a stable source of income, it has far too many costs to see any measurable increase in participation in the marker place by a broader range of apartment owners."

KIMBERLY D. DUTY NAA/NMHC Vice President of Communications

Prior to working with the NAA/NMHC, Duty was the Assistant Director of the National Association of Home Builder's (NAHB) Multifamily Council. Before working for NAHB, she was the Director of Membership for a local Chamber of Commerce and spent 18 months in Berlin, Germany at the Berlin Public Affairs office. Duty received her Bachelor's of Arts degree from the College of William and Mary and a Masters in Public Policy from Georgetown University.

At NAA/NMHC Duty manages the Joint Legislative Program's communications, including member newsletters. Duty says "Promoting a positive image of apartments has been a top priority for many years. In 2002, we will continue to reach out to the media and policymakers to educate them about the growing popularity of apartment living and to debunk the myths associated with apartments and apartment residents."

JAMES (JAY) HARRIS NAA/NMHC Vice President of Property Management

Before coming to NAA/NMHC, Jay Harris ran the Housing Credit Group at NAHB. Harris is a Contributing Writer for Units, a Contributing Editor to Apartment Finance Today, and sits on die Board of a number of real estate publications and university real estate education programs. He holds a law degree from the George Mason University School of Law and is a member of the Virginia State Bar.

As Vice President of Property Management for NAA/NMHC, Harris covers insurance, rent collections, consumer privacy, bankruptcy, premises security, fair housing/accessible design and Regulation Y. Harris believes that many of the current hot topics in 2001--bankruptcy reform legislation, banks' entry into real estate management, premises security efforts by NFPA, and FTC enforcement of the Gramm-Leach-Bliley Act's rules for consumer privacy--will continue in 2002.

Conference negotiations on the bankruptcy legislation are currently taking place between the House and Senate regarding two different bankruptcy reform bills (with NAA/NMHC provisions in both). They are trying to resolve the differences and combine the two bills into one.

Reviewing other key issues, Harris says, "Federal Trade Commission enforcement of the Gramm-Leach-Bliley Act rules for consumer privacy will continue. Fair Housing Initiatives Program awards, made in November 2001, give a sense of what fair housing enforcement priorities will be emphasized in various markets in 2002. The Federal Reserve Board and Department of Treasury rule that may grant new powers to banks to engage in property management (Regulation Y) under the Gramm-Leach-Bliley Act is expected to lead to a resumption in the Congressional debate over banks' real estate powers."

EILEEN C. LEE PH.D. NAA/NMHC Vice President of Environment

During her eight-year tenure with Congress, Eileen C. Lee served Staff Director of the Environment Subcommittee of the Committee on Science, Space and Technology of the U.S. House of Representatives. Lee came to Capitol Hill as a Congressional Science Fellow after completing her fellowship in vaccine development for the National Research Council. She holds a Bachelor of Science and Masters of Science degree from Villanova University and received her Ph.D. in microbiology from The Catholic University of America.

Currently NAA/NMHC is involved in many of the environmental issues pending before Congress, including legislation on brownfields, deregulation of the electric utility industry and wetlands, to name a few. NAA/NMHC is advocating brownfields legislation that would, "protect innocent landowners from liability and streamline the cleaning and approval process so that these types of properties can be more easily re-developed and contribute to revitalizing cities."

Congress is expected to take up elements of a comprehensive national energy policy including federal deregulation of the electric utility industry.

Earlier this year the House passed legislation that makes tax credits available to apartment owners on the condition that they meet certain energy efficiency goals. The legislation is facing obstacles in the Senate, so Lee says, NAA/NMHC will be, "lobbying to see that this language is considered by the Senate next session ... possibly as part of an energy bill."

Other issues that are likely to receive Congressional consideration include Indoor Air Quality (IAQ) issues (such as mold and environmental tobacco smoke), wetlands and the Safe Drinking Water Act.

RONALD G. NICKSON NAA/NMHC Vice President of Building Codes

Ron Nickson has more than 20 years of experience with each of the model building code organizations. Prior to working with NAA/ NMHC, he served as Director of the Energy and Home Environment Department at the National Association of Home Builders. Nickson has served on several technical standards writing committees and the Virginia State Technical Review. He holds a Bachelor of Science degree from Colorado State University. At NAA/NMHC Nickson represents the multifamily housing industry in the model building code process. This year the International Code Council was able to integrate various building codes--published by the Building Code Officials and Code Administrators International (BOCA), International Conference of Building Officials (ICBO) and the Southern Building Code Congress International (SBCCI)--into one set of codes. Nickson says, "there is finally one comprehensive set of model building codes to regulate building design in all areas of the country." The NAA/NMHC were able to have two important rules incorporated into the ICC codes in November. Non-metallic (NM) sheathed wiring can now be used in buildings of any height, as opposed to the previous standard that only allowed its use in buildings that were three stories or less. Additionally, NAA/NMHC was able to keep the provision allowing developers to add an additional floor to their buildings when they install a National Fire Protection Association (NFPA) 13R sprinkler system. Nickson noted that these victories in electrical wiring saved the apartment industry up to $50 million a year in construction.

One of the key features of the ICC codes is that all 11 codes were created to work together, thus everyone benefits. Currently the NFPA and the International Association of Plumbing and Mechanical Officials are working together to create their own sets of codes, which would compete with the ICC codes. In 2002, it is important that the multifamily housing industry continues to support the ICC codes as the most comprehensive and coordinated set of codes.

MARK H. OBRINSKY NAA/NMHC Vice President of Research

Prior to working for NAA/NMHC, Mark Obrinsky was the Director of Regulatory Policy at Fannie Mae. He also held positions as Director of Applied Portfolio Research and Senior Economist at Fannie Mae. Before joining Fannie Mae, Obrinsky was Deputy Director of the Economics Department at the U.S. League of Savings Institutions. He taught Economics at the University of Delaware and Bradley University for seven years. Obrinsky received a Bachelor of Arts degree in Mathematics from the University of Wisconsin and a Ph.D. in Economics from the University of Pennsylvania. Obrinsky assists the NAA/NMHC staff with numerous research requests related to the issues covered by the Joint Legislative Program.

He says "NAA/NMHC's research initiatives are designed to improve the industry's policy and regulatory environment, and to provide consumers with full information on their housing choices." In 2002 NAA/NMHC will focus their attention on the result of the Census long form--a detailed census form regarding housing issues.

SHARI SOLOMON, NAA/NMHC Legislative Analyst

Shari Solomon received a Juris Doctorate Degree from the Catholic University of America and her Bachelor of Arts degree in Political Science from University of Florida. As a Legislative Analyst for the Joint Legislative Staff she has primary responsibility for environmental issues.

ELIZABETH FEIGIN BEFUS Legislative Analyst

Elizabeth Feigin Befus received a Bachelor of Arts degree in Political Science from Colorado State University and a Juris Doctorate from the University of Iowa College of Law. She has served as Attorney Advisor with the U.S. Department of Labor and is a member of the Colorado State Bar.

Liz O. Tramer is Associate Editor of Units magazine.