JANUARY–FEBRUARY The official publication of the 2018 Indiana Apartment Association

INDIANA MARKET IN REVIEW

IAA Hosts 16 Industry Summit NATIONAL FOCUS From the National Apartment Association, naahq.org

Budget Agreement Extends Finally, Congress strongly considered push outs help ensure one partner does PAVING • SEALCOATING • CONCRETE Energy Efficiency Tax Incentives attaching tax incentives to expand and not become liable for another partner’s strengthen the Low-Income Housing tax obligations. Non-compliant partners As part of the budget agreement reached Tax Credit (LIHTC) in this legislative that do not either pay additional taxes on February 7 to keep the government package, but these were unfortunately due or push through liabilities to their open, two tax incentives that support not included in the final bill. NMHC/ own partners would remain liable for energy efficiency investments in NAA will continue to advocate for taxes owed. apartments, which expired in 2016, were strengthening LIHTC by making renewed through 2017. additional resources available to enable Apartment Industry Urges Tax The Energy Efficient Commercial the production of new units and Reform Depreciation Fix Buildings Deduction allows owners of allowing “income averaging” to make the NAA/NMHC are working to address buildings with four or more stories to program more flexible and support more an unintended consequence from last deduct between $0.60 and $1.80 per mixed-income housing. year’s tax reform legislation that could square foot when they install certain adversely affect owners of existing energy efficient systems, including IRS Issues Partnership Audit apartment properties. Specifically, the HVAC, lighting, and building envelope. and Taxation Rules tax law allows firms to choose whether The New Energy Efficient Home Credit The IRS has issued two important to deduct business interest, but if enables developers of new low-rise rental proposed rules that affect how they do decide to do so, they must housing properties (three stories or less) partnerships handle tax liability depreciate the property for 30 years to claim a $2,000 per-unit tax credit if following an audit. They are part of a instead of 27.5 years. those residences achieve a 50 percent series of rules implementing legislation energy savings for heating and cooling Unfortunately, the legislative language passed in 2015 that changed the way over the 2006 International Energy was incorrectly drafted and could be partnerships are audited. Conservation Code. read to only apply to properties placed Beginning in 2018 audits can occur at in service after 2017. Under that NMHC/NAA believe that lawmakers the partnership level. NAA/NMHC have interpretation, existing buildings that opt should not only permanently extend strongly supported allowing audited to deduct business interest would have to Experts in Commercial Maintenance both of these tax incentives, but they partnerships to push out adjustments be depreciated over 40 years. should also enact reforms to make the HASCO, Inc. is a full service commercial concrete and asphalt company through multiple tiers of partners. On Energy Efficient Commercial Buildings NAA/NMHC had successfully secured February 3, the IRS issued proposed serving the greater Indianapolis area and beyond. With more than 20 Deduction more effective. Specifically, the 30-year depreciation option, via rules that address how partnerships and years experience, we o er professional, skilled pavement and concrete the terms of the Deduction should be the amendment process, after seeing their partners adjust tax attributes to take expanded so property owners can qualify the 40-year option in the original services with an emphasis on high quality project completion. into account partnership adjustments by achieving significant, demonstrated draft. Unfortunately, the provision’s under the centralized partnership audit From parking lot paving and sealcoating to concrete repairs, our team improvements in energy performance effective date was changed for reasons regime. Previously, the IRS generally relative to a building’s own baseline unknown following Finance Committee will customize a solution to meet your needs and  t your budget. held individuals within a partnership performance data rather than compared consideration as part of a substitute responsible for their share of tax liability. Contact us for a free, no obligation estimate today. to a specific energy code. amendment on the Senate floor when the On December 15, 2017, the IRS issued entire Senate was voting on the bill. The future prospects for these deductions a proposed partnership audit regulation are unclear. The House Ways and Means NAA/NMHC are making the case that that addresses how partnerships can Committee has indicated it will be Congress never intended a 40-year push out tax adjustments through holding hearings regarding tax extenders, depreciation period for existing buildings multiple tiers of partners following an PHONE: 317-769-PAVE including energy provisions. Meanwhile, that wish to retain a full deduction for audit. Under those regulations, each the Trump Administration released a business interest. A 40-year depreciation partnership in a tier can elect to either TOLL FREE: 877-209-9871 Statement of Administration Policy that period would unnecessarily disrupt pay any tax adjustment at the entity said, “The Administration is concerned cash flows and increase tax liabilities, hascoinc.com level or push out that adjustment to its with future extensions of special interest reducing the ability of apartment owners own partners. tax deductions and benefits in the wake to invest in their assets or develop new of tax cuts and reforms that were enacted NAA/NMHC encouraged the IRS to allow properties. That result would be contrary in December 2017.” such treatment in an August 11, 2017, to the goal of the tax reform bill, and we letter to agency because multiple-tier are requesting that it be avoided.

iaaonline.net JAN • FEB 2018 INSITES 31 contents

8 11 26 Cover illustration provided by Tikijian Associates, www.tamultihousing.com

Members Buy Industry News Statewide News

From Members 10 Updates from IAA members, including 22 Events and educational opportunities community service projects, legislative in Fort Wayne, Evansville, South Bend and 4 Win lunch for your office! Learn more progress, 40 Under 40 honors and more. more areas. about our Vic the Vendor campaign. From the IAA President IAA Board of Directors Education 14 Welcome to the new members serving 26 IAA offers multiple free sessions 6 The benefits and boons of being an IAA on the Board of Directors in 2018-2019. to members as well as a variety of member continue to grow. certification courses. 2017 Industry Summit From the IAA Chairman Legislative Update of the Board 16 Recap and discussion of trends in the multifamily world that affect properties 28 Progress and proceedings of the 2018 8 Be one of our dedicated volunteers and and members. short session continuing at the Indiana join an IAA committee. Statehouse. Membership Event Event 20 Welcome new members and learn 9 Power Lunch series continues April 26 more about the Enhanced Members who 29 Support and promote the industry’s with motivational speaker David Rendall support the association. maintenance staff through upcoming celebrations.

Ad Directory ACI, Inc...... 32 IAA Preferred Partners 20 CORT Furniture 15 IPL 6 HASCO 2 Jetz Service Co., Inc...... 17 Hays + Sons ...... 8 Living the Dog LIfe ...... 13 HD Supply ...... 7 Ray’s Trash Service 5 Holt Construction Group ...... 21 RentPath ...... 27

POSTMASTER: Send address changes to: Indiana Apartment Association, 9100 Keystone Crossing, Ste. 725, Indianapolis, IN 46240, Phone (317) 816-8900, Fax (317) 816-8911. Presorted standard at Indianapolis, IN. The views herein are those of the writers and advertisers and do not necessarily reflect those of the magazine’s management or ownership. IAA welcomes stories, art and photo contributions. All such material must be accompanied by a self-addressed, stamped envelope or it will not be returned.

iaaonline.net JAN • FEB 2018 INSITES 3 Calendar Preview

9100 Keystone Crossing, Ste. 725 • Indianapolis, IN 46240 P: 317-816-8900 • F: 317-816-8911 • [email protected] www.iaaonline.net OFFICERS march Chairman Chad Greiwe, Gene B. Glick Company Vice Chairman Cindy Koehler, Berkshire AHP 5-6 National Apartment Leasing Professional (NALP) Treasurer certification continued Sandy Carmin, Englert Management Corporation Secretary Mark Juleen, J.C. Hart Company 7 Certified Apartment Manager (CAM) certification begins DIRECT BOARD MEMBERS 8 You Are Reputation Management Clarke Arnold, Birge & Held Asset Management, LLC Jerry Collins, Flaherty & Collins Properties Fair Housing for Maintenance – EVANSVILLE Randy Escue, Dominion Realty, Inc. 8 Mike Gorman, Edward Rose & Sons Jill M. Herron, Flaherty & Collins Properties 9 Management Panel Discussion Jon Hicks, In Good Company Michael Humphrey, AMP Residential, LLC EPA/CFC certification – SOUTH BEND Alexandra Jackiw, Milhaus Management, LLC 13 Steve Lavery, Herman & Kittle Properties, Inc. Kimberly Losacker, Pedcor Management Corporation 14 CAM certification continues Jim Murphy, CFC Properties Timothy J. Shafer, HI Management Company Maintenance Customer Service Scott Sladek, Buckingham Companies 15 George Tikijian, Tikijian Properties Suzanne Thomson, Justus Companies, Inc. 15 New Member/Employee Orientation Chuck Townsend, Sheehan Property Management, Inc. Mary Trujilo, Barrett & Stokely, Inc. 20 CAM certification continues CHAPTER BOARD MEMBERS Angela Peoples, Carriage House Kendallville 21 Retention – SOUTH BEND ASSOCIATE BOARD MEMBERS Babette Harpster, CORT 23 SAL: Handling Constant Change Bill Jones, HD Supply Facilities Maintenance

CHAPTER STAFF MEMBERS Beth Wyatt, Apartment Association of Ft. Wayne-NE Indiana

IAA STAFF President Lynne Petersen, CAE, [email protected] Director of Operations Dave Chic, [email protected] Find Vic the Vendor! Director of Government Affairs Gretchen White, [email protected] Vic the Vendor reminds our members and Director of Accounting Mary Massey, [email protected] others active at our properties that Members Director of Membership & Professional Development Pat Gleason, [email protected] Buy From Members. This fun mascot has Director of Communications shrunk himself down and is hiding somewhere Andrea Benek, [email protected] Director of Events & Expositions in this issue of INsites. When you find him, Concetta Lorah, [email protected] help connect him with IAA by taking a picture Communications & Member Services Coordinator Chelsea Conover, [email protected] of you holding the magazine open to the page Accounting & Database Administrator Meredith Galliher, [email protected] he is on and posting it to Facebook. Make sure Front Desk Coordinator to tag the Indiana Apartment Association in your post Cassandra Bingham, [email protected] INsites Publisher and include the hashtag #VICtheVENDOR! Lynne Petersen, CAE, [email protected] INsites Editor ONE POST WILL BE RANDOMLY SELECTED AS Andrea Benek, [email protected] OUR CONTEST WINNER AND WILL RECEIVE A FREE LUNCH FOR HIS OR HER OFFICE! Vic the Vendor, created by Eye 4 Group 4 INSITES JAN • FEB 2018 For the full IAA calendar of events, visit iaaonline.net. april

4 CAM certification continues 10 Impacting Your Budget – NEW ALBANY 10 CAM certification continues 12 HVAC 101 17 Maintenance Mania 18 CAM certification continues 19 Evansville Convention & Trade Show 19 How to Effectively Communicate Your Budget Needs and Wants 19 Plumbing 101 – SOUTH BEND 23 SAL: Managing You is Killing Me 25 Fair Housing – MERRILLVILLE 26 Fair Housing 26 Power Lunch with David Rendall

Social Media Statistics (as of January 19, 2018)

Facebook: Twitter: LinkedIn: Instagram:

Indiana Apartment @AptAssociation Indiana Apartment @aptassociation Association Association 1,758 2,323 669 333 likes followers group members followers

iaaonline.net JAN • FEB 2018 INSITES 5 FROM THE PRESIDENT

Lynne Petersen, CAE IAA President

Engage in Creative, New Ways in 2018

The Indiana Apartment Association is proud to be the force working committees, IAA has many opportunities for members at advancing credibility and professionalism in the multifamily the executive and property staff levels to be active and informed. housing industry. We acknowledge and thank our many members Involvement with IAA shows your residents, staff and peers that who are engaged, creative and supportive of IAA. you value the industry in which you have chosen to work and that It is important that we continue to expand as an organization you wish to enhance your career. The return on investment for so that we may further the growth of the industry. Recently the your membership is strong. Our success comes from strength in IAA has added a focus on building our statewide presence by membership, involved leadership and voice in the legislature. providing free educational opportunities and expanded member So far 2018 has been a busy year in the association, with more services in more areas around Indiana. Our southern and northern than a dozen educational courses, the beginning of several advisory councils assist IAA in creating those education and certification series, a busy legislative session at the Statehouse membership opportunities alongside growing our legislative and our annual Bowing for Rebuilding Lives fundraiser, which influence in those municipalities. We look forward to expanded supports an IAA-operated charity that helps multifamily property member involvement in these areas. residents in the aftermath of disasters. I want to encourage each member to find a new way to engage this The association is continuing to plan new avenues to add value to your year. Whether it’s attending or leading a new course, taking part in membership while protecting the interests of the multifamily housing a networking event or fundraiser, utilizing the services or supplies industry, and we hope you will play an active role in our future. offered by an IAA Associate Member or volunteering with our

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iaaonline.net JAN • FEB 2018 INSITES 7 15211_MF Trade Print Ad_May_8.375 x 10.875_AAA Habitat.indd 1 5/1/17 2:40 PM FROM THE IAA CHAIRMAN

Chad Greiwe IAA Chairman of the Board

Finding Your Place on an IAA Committee

At the start of each new year, IAA seeks volunteers across all Chairman of the IAA Board of Directors. She spent 2017 volunteering disciplines of the multifamily industry to serve on each of our on both the Executive and Finance Committees. IAA’s Donald J. eight committees. Keeping members engaged in the association’s Williams Volunteer of the Year, Danny Dugger (J.C. Hart Company), daily work ensures that the IAA staff and board of directors remain served on four committees in just the last year! Danny has been perfectly in sync with the multifamily professionals in our state. integral part of shaping the IAA member experience and the organization is thankful to have such a passionate supporter. Unlike other IAA programming, committee meetings are not geared toward training or certifying skills. Rather, committees welcome Without the incredible dedication shown by these members and professionals from our management companies and associate dozens more like them, IAA would not be the dynamic association members who bring new energy and ideas to the organization. that it is today. I encourage you, no matter your age or level of No matter your role, there is a committee for you—from experience, to inquire about the IAA committees below. Most require communications or maintenance to event planning or golf. There is only one or two meetings per quarter, depending on the season. even a committee specifically for young professionals between the First-time volunteers are encouraged to join the Ambassador ages of 21 and 40, where emerging leaders in the industry help plan Committee, a training ground for future service in other committees events for their peers. that familiarizes members with the wide range of IAA operations. During the Midwest Multifamily Conference this year, I had the honor If you aren’t a member of any committee, email Front Desk of presenting awards to outstanding volunteers. IAA honored Sandy Coordinator Cassandra Bingham to see how you can get involved at Carmin (Englert Management) with the Joe Rhodes Memorial Award, [email protected]. Perhaps at this year’s Midwest Multifamily one of the association’s top honors. Sandy’s work over the past Conference you could be recognized as an outstanding volunteer. several decades has been unmatched in her dedication, including Ambassador Committee service on more than half IAA’s various committees, including as Ambassador Committee members are exposed to all areas of IAA’s operations as they work to recruit new members and welcome them into the association and work with existing members to expand the When a water emergency hits, Vic the Vendor program. Convention Committee we’ll be there in a flash. Plan the networking events, marketing plan, educational seminars, trade show and recruit sponsors/door prizes, and volunteer onsite at MMC. Events Committee Plan themes, locations, and entertainment for IAA’s fantastic events and fundraisers. Recruit sponsors and door prizes to bedazzle attendees. Volunteer onsite at all events. Maintenance Committee Passionate about maintenance? This committee focuses on all maintenance related events and classes hosted by IAA including Maintenance Mania, MESH, and the CAMT certification. Golf Committee Create new ideas/themes, solicit sponsors, door prizes, help raise funds for IAA PAC, and volunteer on the day of the outing. Professional Development Committee Help create and support IAA’s educational offerings. Committee We have you covered. members will help with the planning of free education courses, With over 35 years of experience and Power Lunches, and the Property Bus Tours. certified water mitigation experts, we can get your residents’ lives back to normal quickly. Young Professionals in Multifamily (YPM) Committee If you are between the ages of 21-40, join this committee to help plan events for the young professionals in the industry as well as engage young professionals as leaders and volunteers. Communications Committee 24/7 Emergency Service: 800-536-4056 | haysandsons.com Increase engagement, advise and recommend editorial content, and promote advertising for INsites and Multifamily Minute.

8 INSITES JAN • FEB 2018 iaaonline.net EVENTS

2018 Power Lunch Series

The Freak Factor: Discovering Uniqueness by Flaunting Weakness — FEATURING DAVID RENDALL

WHEN: April 26, 2018 WHERE: Indianapolis Marriott East (7202 E. 21st St., Indianapolis, IN 46219) TIME: 12:00 – 2:00pm During the last fifteen years, David Rendall has spoken to audiences on every inhabited continent. His clients include the US Air Force, Australian Government, and Fortune 500 companies such as Microsoft, AT&T, United Health Group, Fannie Mae, and State Farm. What’s your problem? I’m serious. What do you wish you could change about yourself? What is the complaint that you hear the most from those closest to you, your friends, co-workers, and family members? Are you too loud or too quiet, too hyperactive or too sedentary, too organized or too messy? You get the idea. So, what should you do? Most people think that they should find and fix their weaknesses. Building your strengths, not fixing your weaknesses, is your best strategy for success. This presentation will encourage you to become more of who you are, not to turn you into someone else.

Power Lunch — FEATURING JACKI CARR

WHEN: September 13, 2018 WHERE: Indianapolis Marriott East (7202 E. 21st St., Indianapolis, IN 46219) TIME: 11:00am – 1:00pm Jacki’s reputation as a speaker is built on her ability to connect with the audience in an authentic and powerful way with straight talk, passion and humor. She is a goal coach and a storyteller with the rare ability to create community and inspire action. Join Jacki to learn how your language and leadership style impact your actions and outcomes.

Register online at Thank you to our sponsors: events.iaaonline.net!

iaaonline.net JAN • FEB 2018 INSITES 9 INDUSTRY NEWS

Awards & Recognition With the recognition comes a monetary gift for the winners to give to a non-profit organization of their choice.

Flaherty & Collins Named One of “It is a huge honor to win this award,” Freeman said. “Giving Commercial Property Executive (CPE) back has always been a passion of mine and was one of the Top 50 National Developers main reasons why I wanted to work for the Glick Company. What has meant the most to me is seeing our volunteer group, For the second consecutive year and eighth time in 10 years, Glick Cares, grow from a handful of people to a group of more Flaherty & Collins Properties ranked in the Commercial than 90 employees, along with their families and friends, Property Executive Top 50, coming in at No. 45 – and one of joining together to give back.” only two Indiana developers to make the list. Freeman chose to give his donation to the Serving Others’ The total development portfolio of the CPE top 50 firms Needs (SON) Foundation, an organization that provides equates to more than 250 million square feet under affordable housing and support to patients going through construction as of June 2017, and more than 310 million square cancer treatments as well as their families and caregivers. feet completed in the past three years. Between 2014-16, F&C “It hits home personally for me,” Alex said. “I watched as my completed over 2 million square feet of development and has wife’s uncle, Randy Reynolds, went through an aggressive form 1.89 million currently under construction. of pancreatic cancer and the toll that it took on him, his wife In 2016, F&C ranked 40th on the CPE Top 50 Development Kathy and the entire family. But through those tough times, the Firms list. SON Foundation was there and allowed him to enjoy time with his family in the comfort of a home environment. It gave him something no other organization was able to do — having the Gene B. Glick Company Awards love and support of his family around him during a difficult Inaugural Glick Cares Volunteer journey.” Awards “This money means so much to the SON Foundation,” said Executive Director Denise Jacobson. “It allows us to continue to “We will contribute our time and resources to making our local serve guests during a very stressful time in their lives. We can communities better places in which to live.” give them a safe and comfortable place to stay, which eases This is the core value of social responsibility at the Gene B. just one of the many burdens of a cancer diagnosis.” Glick Company. And it’s a value the Glick team takes to heart. Cambridge Square Lauderdale Lakes Property Manager Rae In 2017, the Gene B. Glick Company and Glick Philanthropies Ezzo also gave her property’s award donation with Mr. Glick established the Glick Cares Volunteer Awards. These awards and the Glick Company values in mind. were created to recognize a Gene B. Glick employee and a property that go above and beyond in helping fulfill the core “We selected the Lauderdale Lakes Alzheimer’s Care Center value of social responsibility. as the recipient of our donation in memory of Mr. Glick, who suffered with the disease,” Ezzo said. “I have volunteered at the The inaugural winners are individual winner Alex Freeman, center with Bella, my therapy dog, and I know first-hand how a Glick Company marketing specialist, and property winner important it is for the caregivers of someone with Alzheimer’s Cambridge Square to have a place where they can bring their loved ones for the Lauderdale Lakes. day while they get a chance to have some time for themselves.”

“Rae takes a lot of pride in her community by the things she does for her residents,” said Glick Compliance Manager Rita Gilbert. “Rae and her staff have worked very hard to make the property one the residents can be proud of and truly call home.”

“I like to believe Mr. Glick is resting in peace, knowing we are Representatives from Cambridge Square Marketing Specialist Alex Freeman taking care of his properties, the residents and the people of Lauderdale Lakes accept the recent Glick (center) was honored by Gene B. the community,” Ezzo said. “I always want him to be proud of Cares Volunteer Award. Glick Company with a Glick Cares Volunteer Award. our accomplishments.”

10 INSITES JAN • FEB 2018 iaaonline.net Edward Rose & Sons Recognizes judgment and the ability to overcome complex transactional challenges. Throughout his career he has demonstrated a Outstanding Employees commitment to the values we at Sterling believe in and we look forward to having him on board.” Edward Rose & Sons recognized their As a principal in Sterling’s real estate activities, Scimia will be 2017 outstanding responsible for the company’s legal affairs and will be involved performance in the acquisition, development and construction of Sterling’s winners, longevity growing portfolio. He will serve on Sterling’s Board of Directors recipients, and and as well as other executive committees. industry designation Scimia’s was named Best Lawyers® 2017 “Lawyer of the Year” in achievements at Land Use and Zoning Law in Indianapolis. He earned a Bachelor their annual Awards of Science degree from Indiana University and a law degree Banquet and Edward Rose & Sons honored the team at Polo Run from Indiana University Maurer School of Law. Holiday Party held Apartments in Greenwood as Staff of the Year. at the Conrad Hotel in Downtown Indianapolis. Several Hoosier properties and State Reps. Karickhoff and VanNatter employees took home awards. Visit Kokomo Flaherty & Collins Site Staff of the Year was awarded to the outstanding associates of Indiana Representatives Mike Karickhoff (R-Kokomo) and Polo Run Apartments, a 695-unit asset located in Greenwood, Heath VanNatter (R-Kokomo) recently toured the future site of Indiana. Flaherty & Collins’s The following Hoosiers were recognized for 10 years of service 306 Riverfront District with Edward Rose: Nichole Morell of The Timbers, Joshua in the heart of Devoss of Sundance, and Dick Waterstraat of Pheasant Run. Downtown Kokomo. Both elected officials Lisa Strickler of Pheasant Run was recognized for her 20 represent portions years of service and Mike Johnson of Scarborough Lake was of the city, and each recognized for his 25 years of service. was excited to see the development News that the multifamily industry has brought The Sterling Group Hires Sr. Vice to the urban core of State Reps. Mike Karickhoff (R-Kokomo) and Heath President General Counsel the Central Indiana VanNatter (R-Kokomo) (pictured above) recently municipality. toured a future Flaherty & Collins (pictured below) Joseph M. Scimia has joined The Sterling Group in Mishawaka property in Kokomo. as Senior Vice President General Counsel. Scimia departed the Real Estate Group at Ice Miller in Indianapolis, where he was a Partner representing developers, contractors, lenders, landlords, tenants and property owners in a variety of real estate transactions.

“Joe’s background spans a broad spectrum of Real Estate law and successful transactions. He understands how to provide the kind of client service and counsel on which The Sterling Group has built its reputation,” said Lance Swank, president, The Sterling Group. “He’s a seasoned leader with outstanding Scimia

iaaonline.net JAN • FEB 2018 INSITES 11 INDUSTRY NEWS continued

Glick Co. Promotes Robertson to Director Chris Kirles, 35, has been with Flaherty & Collins for 12 years. The Indianapolis resident currently oversees the construction The Gene B. Glick Co. has promoted Kelly side of the business. Robertson to Director of Revenue Management. “The confidence (Flaherty & Collins) instilled in me She joined the company in 2016 as Revenue professionally has carried with me throughout my career and Manager. Robertson is responsible for analyzing, specifically in my current role,” Kirles told IBJ. developing and communicating pricing strategies for the company. Besides his support of IAA, Kirles is a board member for Sense-Able Solutions and a volunteer with The Penrod Society and the Mozel She received her undergraduate degree in Sanders Foundation. Robertson residential property management from Ball State University, holds an Indiana real estate sales license and Kyle Bach, 37, initially received her designation for Certified Apartment Manager. pursued a career in sports rehab, but he Robertson has been in property management for more than was sidetracked by an 13 years and was named Indiana Apartment Association’s IAA’s offer to work in real Rick Stapp Regional Manager of the Year in 2011. estate. He founded his own company two and Christopher Kirles Kyle Bach Kirles, Bach named to IBJ’s 40 Under 40 a half years later. Annex was named IBJ’s fastest-growing company in 2017 and was one Two multifamily industry professionals were recently of the Student Housing Business Top Developers last year. honored with inclusion in the Indiana Business Journal’s annual 40 Under 40 that spotlights rising stars and for their “The president of Carl Sandburg College [in Illinois] saw my name accomplishments at work and in the community. in the paper when I was pursuing a different project. She said, ‘Have you thought about student housing? Come here and let me Kyle D. Bach, President and CEO of The Annex Group, and P. tell you how we need housing.’” Bach did, and soon, he said, “the Christopher Kirles, President of Construction and Principal at light kind of went off. This is what I was supposed to do.” Flaherty & Collins Properties, were among the class of 2018 recognized by IBJ. The Indiana Apartment Association congratulates The Michigan City/South Bend native is also co-owner of Fishers these industry professionals for their success and recognition! Sports Academy and coaches multiple youth sports teams.

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iaaonline.net JAN • FEB 2018 INSITES 13 Welcome New 2018-2019 IAA Board Members

Clarke Arnold, VP of Property management, as well as the restoration and promotion of Management, Birge & Held Asset downtown Bloomington. Jim Murphy joined CFC Properties Management, LLC in 1987 as a Construction Manager and has been President since 1993. He is certified in CAM and CAPS among other As Vice President, Clarke oversees the portfolio academic certifications. He currently serves on the YMCA consisting of conventional, student and fractured assets Association Board as President & the Monroe County throughout the Midwest. Clarke began his career with Birge Bloomington Convention Center Building Corporation. & Held in April of 2015 as a Regional Manager and has been a part of the firm’s strategic and rapid growth over the past Timothy J. Shafer, President and Member - 2.5 years. In October of 2016, Clarke grew into the VP role at H I Management Company Birge & Held, assuming accountability and supervision of all ° day-to-day operations and for the coordination and strategic Tim Shafer is the President and a Member of H°I planning to ensure that Birge & Held communities are top Management Company based in Indianapolis, performers for residents, investors, vendors and employees. Indiana. Graduating from Indiana University with a Bachelor of Clarke plays an important role on the Executive team in Science degree in accounting where he was named Accounting collaboration with Birge & Held’s Asset Management, Human Honor Student and Outstanding Student in Business and Resources, Marketing and Accounting teams to drive company Economics, he begin his career in public accounting and soon values to all team members and partners of Birge & Held. discovered a fondness for the real estate industry. Tim has spent the past twenty-two years working in the Bill Jones, Field Account Representative, real estate industry. He started out in the investment, asset HD Supply monitoring and tax preparation role overseeing a portfolio with Bill Jones joined the Business Furniture a value in excess of $500 million dollars located across thirteen Corporation in 1990 and spent the next 12 years states. As a result of his exposure to the residential real estate in the office furniture industry. This is when he found his market, he was instrumental in forming H°I Management in passion for sales and account management. Bill left Business 1995. Over the years Tim has developed an expertise in fee Furniture in 2002 and started his own business flipping management, compliance services, receivership, ownership houses. During the next 6 years he bought and sold homes restructuring and financing. and became a Licensed Real Estate Agent. In 2008, Bill went to go work at Coca-Cola as an Account Manager. Since leaving Suzanne Thomson, Vice President, Justus Coca-Cola in 2013, he has been working for HD Supply Companies, Inc. Facilities Maintenance as a In her role as Vice President of the Justus Field Account Representative here in Indianapolis. In 2013 he Companies, Inc., Suzanne Thomson oversees the was the President’s Club Award winner for the Central Region design, development, and construction of new apartment for year over year sales growth. Bill is actively involved in the communities as well as the remodeling and renovation of community organizing HD Supply “Day of Caring” events for properties in the Justus portfolio. Her multifamily portfolio the local sales team. He also sat on HD Supply’s Donations includes conventional, tax credit, and senior apartments. Committee in 2015. Bill was awarded Indiana Apartment Suzanne began her tenure at the Justus Companies as the Association Individual Vendor Member of the Year for 2016 Director of Marketing, moving to Vice President of Corporate and served as Co-Chair for the 2017 IAA Golf Outing. He also Communications, and on to her current position where she sits on the Events Committee. brings a unique marketing and resident-centric perspective to the Justus Development and Construction team. She has Jim Murphy, President, CFC Properties been in the multifamily housing industry for over 15 years, most of which she has specialized in senior housing. Suzanne CFC Properties, an Indiana property management is a National Apartment Association Education Institute and development company, was founded in faculty member, an NAAEI certified trainer, winner of multiple 1973. During CFC’s 40 years of operation, great Indiana Apartment Association Prodigy Awards, and Indiana emphasis has been placed on architecturally significant Apartment Association Volunteer of the Year. structures. The company has become a leader in property

14 INSITES JAN • FEB 2018 iaaonline.net 2018-2019 Returning Board Members

Chad Greiwe, Gene B. Glick Company, Inc. – Chairman Alexandra Jackiw, Milhaus Management, LLC of the Board Steve Lavery, Herman & Kittle Properties, Inc. – Vice Chairman Cindy Koehler, Berkshire AHP Kimberly Losacker, Pedcor Management Mark Juleen, J.C. Hart Company, Inc. – Secretary Corporation Sandy Carmin, Englert Management Corporation – Angela Peoples, President, Apartment Association Treasurer of Fort Wayne-Northeast Indiana, Carriage House Jerry Collins, Flaherty & Collins Properties Kendallville Randy Escue, Dominion Realty, Inc. Scott Sladek, Buckingham Companies Mike Gorman, Edward Rose & Sons George Tikijian, Tikijian Properties Babette Harpster, CORT Chuck Townsend, Sheehan Property Management, Inc. Jill Herron, Flaherty & Collins Properties Mary Trujilo, Barrett & Stokely, Inc. Jon Hicks, In Good Company Michael Humphrey, AMP Residential, LLC

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SAVE THE Cerveza, Margaritas & Taco Bar from 6 - 8 pm. Feel free to invite your family and close friends to our VIP Private sale. If you DATE received “Loco Dinero” for referring to CORT Furniture Rental, Clearance FOR CORT’S Center or Apartment Search - bring it with you to spend on your purchases. Don’t SIESTA thru the FIESTA! FIESTA! RSVPs appreciated, please call 317.291.1754

Rental Showroom & Clearance Center 4904 Century Plaza Road Indianapolis, IN 46254 317.291.1754

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iaaonline.net JAN • FEB 2018 INSITES 15 FEATURE IAA Industry Summit Brings National Experts to Indianapolis

management, but when you look ahead to the next decade, it’s comforting to know you have talent on which to rely.

The next speaker, Michael Dinn of Dinn Focused Marketing, continued with his own industry trend analysis, delving deep into recent research by the National Multifamily Housing Council and National Apartment Late last year, the Indiana Apartment Association hosted Association on multifamily demand across the country. In one of executives, managers, and staff members from management the top highlights of the summit, Dinn walked attendees through companies across the state to the IAA Industry Summit to explore research on naturally occurring affordable housing (NOAH). trends in the multifamily world, from the changing demographics The research firm CoStar assessed hundreds of thousands of of residents to the ever-evolving Hoosier marketplace. multifamily properties in their proprietary database on a scale We brought national experts to provide a bird’s-eye view of the of one to five stars, with one star representing the lowest quality industry but also invited local voices who know the ins and outs properties, two stars representing functional properties with of developments in the state of Indiana. minimal amenities, and five stars representing the luxury end of the multifamily housing market. The IAA Industry Summit was hosted separate from the Midwest Multifamily Conference to give the event a renewed focus on One-star and two-star rental properties comprised a large the issues surrounding the multifamily industry: the economy, percentage of the stock, accounting for 75.4 percent of the units demographic shifts, cybersecurity, and sales trends. The full-day tracked. CoStar highlighted that this NOAH stock was a stable, Summit consisted of six seminars and panel discussions in income-producing asset that presented a significant opportunity addition to a networking hour. for private investors to receive competitive and consistent returns. Multifamily Trends and Challenges For developers and property management groups that often Christopher Lee, president and CEO of CEL & Associates, Inc., interact with municipal leaders on the subject of affordable addressed the audience first, highlighting the tremendous growth housing, the discovery of these NOAH properties — which are the multifamily industry has seen since the 2008 financial crisis. often hidden in plain sight — can be a revelation. As demand for After a decade of success, he cautioned that the cycle expansion low-income housing increases outside the urban cores of cities, may have already crested. Property management firms, like any keep an eye on these hidden gems in your neighborhoods. company whose holdings included significant real estate, can prepare for downturns in the economy through careful planning. The New Economy of Multifamily Lee also advised attendees to identify their companies’ brightest Two after-lunch sessions focused on macroeconomic factors that stars and to do everything in their power to retain top talent shape the industry. Chris Bruen, a senior research analyst with in the multifamily industry. Nothing, Lee said, will protect the the National Multifamily Housing Council, unveiled first-party long-term growth prospects of a business like smart leadership research demonstrating the long-term urbanization of the United and a stable of young, talented employees. Recruitment can States and increased demand in multifamily housing among the be difficult in a highly competitive industry like property white-collar executive class.

16 INSITES JAN • FEB 2018 iaaonline.net 2017 BY THE NUMBERS Statistics provided by Tikijian Associates for the 2017 Industry Summit

93.2 % occupancy in Indianapolis He followed a panel discussion by financial experts from PR AVERAGE Mortgage & Investments, Barratt Asset Management and Merchants Bank of Indiana. Individual and institutional investors are eyeing % total area rental growth multifamily properties, especially those in the Midwest, as serious 2.9 profit generators. new units delivered As more capital becomes accessible to developers who wish to 3,200 revitalize the urban cores of the Rust Belt, state and local officials see new opportunities to collaborate with developers. $700 sales volume MILLION The final presentation of the afternoon came from Christopher Gibson, the principal cybersecurity engineer for Indiana University % studio unit growth, Health. More and more of the value margin in the multifamily 3.3 top type by unit industry is in information — data that helps identify and retain residents, detailed plans that help managers run a property $ efficiently, and intellectual property of a firm’s brand. 1,243 five-year rents downtown AVERAGE Gibson led a thorough threat assessment and encouraged each attendee to gather their leadership teams and judge their own company’s risk. units are added to the Downtown core each year. Indianapolis has been able to absorb new development and still demand more Year in Review from builders in Broad Ripple, Fishers, and Carmel. Even the once Attendees heard a closing session from George Tikijian and dormant south side of the city has seen a multifamily boom in the Hannah Ott of Tikijian Associates on the state of multifamily last five years. developments in Indiana. Tikijian and Ott highlighted star properties, innovative new projects, and recent sales from Tikijian and Ott treated the audience to their signature wit, while Evansville to Fort Wayne. bringing the summit to a fun and educational close. The greatest focus, however, was on the Indianapolis metro area. Save the date: IAA hopes to see you at the 2018 Occupancy rates continue to climb, even as hundreds of new Industry Summit on Nov. 1!

LAUNDRY MATTERS

Multi-family Housing Laundry Sales & Service Coin/Card and Mobile Phone Activated Equipment In-unit Domestic Washers/Dryers Favorable Lease Terms 24/7 Emergency Service (317) 359–9968 BRAD APPLEGATE (800) 527–4928 [email protected] JETZSERVICE.COM

iaaonline.net JAN • FEB 2018 INSITES 17 thanks our Preferred Partners for their generous support!

18 INSITES JAN • FEB 2018 iaaonline.net EVENT

Reverse Trade Show

May 3, 2018 • 4:00 PM – 7:00 PM Indianapolis Marriott North

The Reverse Trade Show is a highly effective association business networking event that allows association members the opportunity to meet one on one with owners and decision makers from property management companies. Here is how it works: From 4:00 pm – 5:00 pm, there will be a cocktail reception with owner/management participants. From 5:00 pm – 7:00 pm owners/management executives will be seated at tables and you will have an opportunity to meet with these decision makers in seven-minute intervals over the two-hour session. Your initial appointment will be assigned; after the initial assigned appointment, you will be able to meet with as many decision makers in seven minute intervals as time allows.

Benefits: • Reasonable registration fee providing exclusive selling opportunities • One-on-one with executive level decision makers • An effective return on your marketing investment benefiting the NAAPAC

Cost - $350/associate member

Advertise with IAA Want to reach more than 10,000 multifamily professionals, executives and residents? Advertising with the Indiana Apartment Association gets you direct contact to active members of the industry and those who support their business. IAA publications are the best way to have maximum impact on your network and grow your business and brand. Our magazine, member directory newsletter and website are packed with information, articles pertaining to multifamily housing and the latest news, trends, and advice. Suppliers who want to create results and reach decision makers advertise with IAA! Contact IAA for details or to request a media kit: (317) 816-8900, [email protected].

iaaonline.net JAN • FEB 2018 INSITES 19 2018 IAA ENHANCED MEMBERS

Preferred Partner

Signature Members

Executive Members

Partner Members American Lung Association Custom Concrete Co., Inc. Indiana’s Finest Wrecker Summer Classics Contract in Indianapolis Direct Fitness Solutions Indy Furniture Rentals & Sales Surface Connection Amos Exteriors, Inc. DocuSign Kelly Landscaping Taft Law AmRent Emmons Painting Service Koorsen Fire & Security The Habegger Corporation Apartments.com ePremium Insurance Leadtech Pest Services The Liberty Group Bader Company ESSCO Corp. May Oberfell Lorber The Strategic Solution Baumgartner & Co. Eye 4 Group Mitsch Design Total Restoration General BG Multifamily Frye Electric, Inc. Mowhawk Industries, Inc. Contractors, Inc. Bone Dry Roofing Gregory & Appel Insurance PPG Architectural Coatings Van Rooy Restoration Carrsun Furniture Rental Happy Co. Rent Manager WebListers Comcast/Xfinity HPS Schonox Resource Commercial Wellman Exteriors Community Life Impact Trash Solutions Real Estate Xiber CORT Simplex Grinnell Zillow Group

No Longer Members: AmeriClean Inc., American Family Insurance, Caldwells, Gym Supply Corporation, Journal & Courier, Lockton, Results Repeat, Steindler Signs + Graphix, Thomas Jefferson Roofing & Remodeling, LLC

If you are doing business with vendors who are not members of IAA, or who have not renewed their membership, please consider using a member or encourage them to join today!

20 INSITES JAN • FEB 2018 iaaonline.net Put yourself center stage Welcome New Associate Members with a IAA values the membership of Associate Members and welcomes several new members who provide products, services and expertise 2018 in the multifamily industry. Please consider using one of these new IAA members for your next bid. Don’t forget to let them know you were referred by IAA! Sponsorship!

Henri Welcome to Henri - The most advanced and most affordable resident portal on the planet. See why hundreds of other property managers utilize Henri month after month! Not only is Henri the most affordable way to collect your rent payments, but it’s also the most fun and effective way for residents and managers to communicate with others, reserve In 2017, over 8,000 multifamily professionals attended events amenities, manage their maintenance, package delivery, and much, much more! Call or check us out online today to find out more! henrihome.com 262-337-3999 and education sessions organized by the Indiana Apartment Dynamark Graphics Group Association, an incredible 33% increase over the previous Since 1972, Dynamark Graphics Group/PIP Printing, a locally owned family year. With IAA increasing our education and events schedule business, has helped clients create, exhibit, and promote their brand. Whether in 2018, we are looking forward to continuing this growth. it involves stunning four color process printed materials, indoor / outdoor signage, logo apparel, promotional items, direct mail campaigns, trade show Sponsoring an IAA event not only shows your support for the exhibits, or vehicle wraps, Dynamark can fulfil your marketing needs. multifamily industry in Indiana, it also gives your company If you have been frustrated by the late arrival the opportunity to showcase your products and services to of time sensitive print materials, disappointed with the color quality of your logo apparel, members and connect with decision makers. or angry that your new signage missed the With sponsorships starting as low as $550, there is an mark, you might want to visit www.dynamarkprinting.com or call 317-361-4232. Also, facility tours are available upon request. Our seasoned staff will assist in opportunity for companies of any size to take advantage of shaping and distributing your message. You can rely on our team to enhance this great membership benefit! your vision, exceed your expectations, and deliver outstanding products. Puddle Jumpers Aquatics APRIL Puddle Jumpers Aquatics is focused on providing aquatics services with the highest level of customer satisfaction and we will do everything we can to meet 17 Maintenance Mania and exceed your expectations. With a variety of services to choose from, we’re sure you’ll be happy working with us. 26 Power Lunch We are based in Hamilton County and take pride in taking the excuses out of the aquatics 26 Fair Housing in Indianapolis business. We have more than 40 years of environmental and biological experience. We JUNE also have an Aquatic Plant Specialist on staff and an in-house laboratory to 7 PAC Eagle Creek Golf Outing save you time and money. We are chemically-licensed in Indiana and insured on all of our products labeled as aquatic use. JULY National Corporate Housing National Corporate Housing is the largest provider of corporate housing in the 12 Baseball Fun Meeting state of Indiana and is the perfect solution for business travelers, relocating employees and project teams AUGUST needing short or long-term housing around the world. 16 BBQ/Cornhole Tournament National partners with local apartment communities and management companies, to deliver an exceptional SEPTEMBER temporary living experience in the best communities throughout the state and the country. 13 Power Lunch Minol USA OCTOBER Minol is one of the largest Metering, Billing, Conservation and Energy Management providers with 2,500 employees and 32 offices worldwide. Based 9-10 Midwest Multifamily Conference in Germany, the privately-held, family-owned company brings more than 60 years of innovative metering technologies and consumption based billing NOVEMBER of gas, electric, water and heating costs to the industries served. As one of the 1 Industry Summit leading utility billing providers, our global team produces more than 5.4 million bills DECEMBER annually for 30,000 clients. 6 Holiday Fun Meeting Minol USA, headquartered in Addison, TX, has more than 100 employees nationwide with regional and support offices located throughout the country. We operate in all major markets providing services for the multifamily, military, To learn more about our Sponsorship Program or other affordable and student housing industries, as well as government agencies and opportunities to get involved, contact the IAA offices at commercial properties. (317) 816-8900, or by email at [email protected].

iaaonline.net JAN • FEB 2018 INSITES 21 AROUND THE STATE

Apartment Association of Fort Wayne

Summit Celebration Winners to Be Announced on March 24 The Summit Celebration Committee has been busy planning the 2017 Summit Celebration to be held on Saturday, March 24 at Ceruti’s Summit Park. The event celebrates the best in the multifamily housing industry in Northeast Indiana. The reservation deadline is Friday, March 9; please contact the AAFW-NEI office to register or for more details viaaafw.org or by calling (260) 482-2916. 2018 Officers - Executive –Congratulations to our newly elected officers (left to right) Angela Rose (Perry Law Office – Treasurer); Tammy Brandt (New Generation 2018 President – Angela Watch for a list of our winners in an upcoming issue of INsites. Management – Secretary) and David Becker (Redwood Peoples, CAM, CAPS, Carriage Also at the event, the Community Outreach Committee will be Living – Vice President) during the installation. House of Kendallville presenting their donation checks to our 2017 charities, Mad Anthony’s Children’s Hope House and Gigi’s Playhouse. Thank you to all of the AAFW-NEI members that helped raise money in 2017.

AAFW-NEI is Turning 40! At the December 2017 Breakfast Connection, members were asked for ideas for a slogan for our birthday celebration year. Both MJ Harkenrider of Island Club Apartments and Michele West of Wood Creek Apartments keyed in on a theme of No Place Like Home, and staff ran with it! Thanks MJ and Michele! Directors at Large for 2018 being installed – Our newly elected Directors at Large for the AAFW-NEI - (left to right) Michele West (Wood Creek); Karen (Independent Owner); Taylor The organization has fun in store to help us celebrate four Ludow (Centennial Townhomes); Nikki Gillenwater (New Generation Management); MJ decades of coming together as an association to network as Harkenrider (Island Club); Debra Crews (Willow Creek Crossing)and Megan Ford (Hays and local businesses, advocate for Sons Complete Restoration) rental housing, and give back •  We will honor members to our community. March 24 Summit Celebration: and their dedication to the Apartment Association of Fort At the January Breakfast Wayne-NEI and excellence in the multifamily housing Connection, members took industry, including individual award winners, our volunteers, a look back at how the and our members that make it all happen. AAFW-NEI began and how • May 8 Breakfast Connection: Celebrating the 1980s – again the organization has grown music, fun, pictures, and costume prizes. since 1978. For fun, the staff collected baby pictures of the Board of Directors and members • August 14 Breakfast Connection: Celebrating the 1990s – were given the task to match them to a picture of them today. even more music, games, pictures, and fun! • October 16th Breakfast Connection: Celebrating the 2000s At the February Breakfast Connection, members celebrated the and annual meeting with board elections. 1970s with theme outfits and pictures. • October, date TBD: 40th Anniversary Celebration. Join us for Over the next few months, we have even more fun activities a birthday celebration that you won’t want to miss! Watch planned! for more details in upcoming issues of INsites.

22 INSITES JAN • FEB 2018 iaaonline.net IAA Northern Council

Mishawaka Hosting EPA/CFC Certification Course Retention Discussion in Granger; Free Event

Mar. 13, 10:00am – 6:00pm Mar. 21, 9:00am – 12:00pm Mishawaka Public Library Main Street Village Apartments (209 Lincolnway E., Mishawaka, IN 46544) (5501 Town Center Dr., Granger, IN 46530) COST: Attend this course to learn about the resident journey, from FULL TEST – Member $135, Non-member $250 RE-TEST – Member $79, Non-member $150 initial contact to end of lease and how it affects resident retention. We will discuss how resident retention affects Section 608 of the Federal Clean Air Act requires persons who the property financially, the role of maintenance in resident work with regulated refrigerants to become certified. Enroll in retention, and how amenities, events, and your team add value this course to comply with regulations essential for supporting to residents. your apartment community in regard to recovery, recycling, This course will teach you: reclaiming and working with freon (choloroflurocarbon). • How the resident’s journey affects the renewal process This course includes the following four sections: • How the financial outlook of the property is affected by the • Section 1 reviews environmental issues surrounding the renewal process impact of Class I and II refrigerants • New ways to incorporate resident events to increase retention • Section 2 covers the test and instruction for systems with less The session will be lead by Patti Buss, Corporate Outreach than 5 pounds of refrigerant Specialist with CORT Furniture, has been in the industry since (Type I certification) 2004 in both leasing and management. She earned her CAM • Section 3 includes the test and designation in 2010 and now works for CORT Furniture. instruction for high-pressure Register by calling the IAA office at 317-816-8900 or by visiting refrigerant such as HCFC events.iaaonline.net! 22 including split-system air conditioners (Type II certification) Free Fair Housing Training in Merrillville • Section 4 contains the test and instruction for systems that use a low-pressure refrigerant such as CFC11 Apr. 25, 10:00am – 1:00pm – Merrillville (Type III certification) This half-day fair housing training session will explain the The instructor is David Creek, Director of Maintenance with history and principles of the Fair Housing Act and describe the Birge & Held Asset Management, LLC, has worked more than changes that have occurred in fair housing enforcement during 33 years in the apartment industry. He brings exceptional the past 50 years. experience and insights into this course to engage and motivate Kathelene Williams is President of the Fair Housing Institute, participants inside and outside the classroom. Inc., a private, full-service training and consulting company Register by calling the IAA office at 317-816-8900 or by visiting whose mission is to educate and advise the nation’s housing events.iaaonline.net! industry about the social and economic benefits of fair housing and equal opportunity. Through her association with FHI, Kathelene provides fair housing training to private, public and federally assisted housing providers, trade associations and government entities across the country.

iaaonline.net JAN • FEB 2018 INSITES 23 AROUND THE STATE continued

In this session, she will share with the audience her experiences The 2017 Fair Housing sessions shared legal, communication and marketing tips and tools with from the past 35 years in the fair housing arena. She will illustrate property staffs across the state. the benefits to housing providers who promote fair housing practices and the damages that can result from mistakes. She will share examples from the many cases she has handled of fair housing issues that arise due to the actions and statements of all types of employees. The newer issues in fair housing will also be explored including sexual harassment, domestic violence, illegal harassment, secondhand smoke, marijuana, and the challenges of processing reasonable accommodation requests and managing properties with families with children. Bring your questions as this will be a fast-paced and interactive session.

Register by calling the IAA office at 317-816-8900 or by visiting events.iaaonline.net!

IAA Southern Council

Maintenance-specific Fair Housing Session in Free Budget-setting Course in New Albany Evansville April 10, 9:00am – 12:00pm, New Albany Mar. 8, 10:00am – 1:00pm, Evansville Innovation Requires Explanation: How to Effectively This free course is designed specifically for your entire Communicate Budget Needs & Wants will cover the many maintenance team. With discrimination complaints, testing, ways to effectively communicate your budget wants and needs. and fines on the rise, it is imperative to abide by federal, state, Learn how to justify budget items with a quantitative approach and local laws regarding fair housing. Understand your role in by researching and analyzing data, simple programs to use to fair housing, including the law as it applies to familial status formulate data into charts or graphs commonly used by owners disabilities, occupancy standards, resident selection, service and upper management when making decisions, and how to animals vs. therapy animals or companion animals. incorporate solution-based communication into your everyday interactions with supervisors. Staff will learn: The instructor is Katrina Greene, CAM, who started in the • Know what to say and, more importantly, what not to say industry in 2001 as a temporary leasing associate and is now a • Learn how to make reasonable accommodations Senior Property Manager for Sheehan Property Management. Katrina currently oversees a portfolio of 3,500-plus units which • Ensure your resident relations are compliant with fair housing includes student housing, conventional, retail, and Section 8 regulations communities. She is the 2018 YPM Committee Chairperson and • Gain practical solutions you can use tomorrow has been a guest speaker in courses at Ball State University in the RPM program. Instructor Gavin Greene is a Regional Property Manager with Flaherty & Collins Properties and he oversees operations for Register by calling the IAA office at 317-816-8900 or by visiting more than 15 properties that include more than 1,000 units. events.iaaonline.net! His background includes LIHTC as well as affordable housing.

Register by calling the IAA office at 317-816-8900 or by visiting events.iaaonline.net!

24 INSITES JAN • FEB 2018 iaaonline.net INDIANA MULTIFAMILY HOUSING POLITICAL

ACTION COMMITTEE CONTRIBUTOR LIST (as of February 15, 2018)

PLATINUM INVESTORS Redwood Living Associa Oncall ($1.50 PER UNIT) Residential Management Co., LLC Bam Outdoor, Inc. Retiree Housing Management, Inc. Bath Fitter 3 Point Property Management Rise Real Estate Baumgartner & Company 5910 Carrollton Apartments, LLC Samaritan Companies BBG Construction, LLC Arnel, Inc. Sentry Management Services Inc. Biosweep Banner Property Management, LLC Sheehan Property Management, Inc. Blakley’s Birge & Held Asset Management Sixtus Management CBRE Block Multifamily Group Sundance Property Management, Inc. Chadwell Supply Braden & Associates-Architonics, Inc. TBH Realty & Management Community Green Landscape Group, Inc. Brad Nash The Garrett Companies Corporate Imaging Concepts, Inc. BRG Apartments Trinitas Ventures CORT Bridges Property Management Twin Lakes Apartments, LLC Details Cleaning Solutions, LLC Brookside Properties Inc. UCOMM, LLC Elbert Construction Carr Property Group Urbahns Group an Indianapolis Co. Exterior Building Products Chronister Properties WARM Properties, LLC Falcon Carpet of Indiana, Inc. Cityscape Residential, LLC Weiss Entities Floor & Wall Inc. Consolidated Property Management Whitney Management Corporation. Heartland Golf Cars & Equipment CORE Realty Holdings Management, Inc. Wilhoit Properties ICS Advanced Technologies Core Redevelopment LLC Willow Point Impact Trash Solutions, LLC Corner Stone Properties & Rental, LLC Young Enterprises Indy Coin Laundry (Cincinnati Coin Laundry) Crestline Communities Jahnke Painting, Inc. DEI Communities Johnson’s Commercial Flooring Deylen Realty, Inc. Kelly Landscaping Dominion Realty, Inc. GOLD INVESTORS Kentuckiana General Construction ($1.00-$1.49 PER UNIT) Element Management KMP Hydrant Services, LLC Emmert Property Management Barrett & Stokely Affordable Management Koorsen Fire and Security Englert Management Corporation Barrett & Stokely, Inc. L.B. Gray, LLC A Debt Collection Agency Fath Properties Mark III Management Corporation Landman Beatty, Lawyers Feichter, Realtors PMR Companies May Oberfell Lorber Flaherty & Collins Properties Zinger Property Group, Inc. Mitsch Design Greystone Property Management Corporation Mohawk Industries, Inc. Hamilton Pointe Property Management Monon Technology Group Hendricks Commercial Properties, LLC National Tenant Network – Indiana/Ohio Heugel Realty, Inc. SILVER INVESTORS On The Scene LLC Hills Property Management ($.50-$.99 PER UNIT) PERQ, LLC Hunt Pacific Management Best Management PHD Carpet & Janitorial Service, Inc. Indy Town LP Buckingham Companies Pillar Group Risk Management Indy Up, LLC Capreit, Inc. Planes Moving & Storage JAE Properties DBA Candlelight Terrace, LLC PR Mortgage & Investment Corp. J.C. Hart Company, Inc. EDR Ray’s Trash Service John & Stacy Hayes Fore Property Company Red Capital Group John Boner Neighborhood Centers, Inc. In Good Company Renovia Joplin Apartments LLC OT Management LLC Republic Roofing Keystone Realty Group Regency Windsor Management, Inc. Roto Rooter Plumbing, Inc. Madisonville-West Properties, Inc. Sandlin Law Group P.C. Maple Crest Realty Corporation SatisFacts Research Marquette Management Schiff A/C & Heating Meridian Management Corporation BRONZE INVESTORS Sims-Lohman Fine Kitchens & Granite Metropolitan/Collegiate Housing Services, Inc. (UP TO $.50 PER UNIT) Specialty Contracting Milhaus Management, LLC Stanley Steemer of Evansville Elkins Apartments Millennia Housing Management Star Disposal of Indiana Greystar Monarch Investment & Management Group Tikijian Associates IRT Management, LLC Monument Realty & Management TNT Services James Management Group, LLC Novogroder Companies, Inc. Total Restoration General Contractors Inc. Steadfast Management Olympus Properties, LLC Total Roofing & Construction Services Inc. The Wilkinson Family of Companies Oxford Gables Trane – Ingersoll Rand Pacific Properties TSI Energy Solutions PAR Enterprises University Loft Company Park Forest Homes LTD BOOSTER CLUB Van Rooy Restoration Precision Equity, LLC (ASSOCIATE MEMBER INVESTORS) VMintegrated Premier Real Estate Management, LLC WarrenCo Construction & Paving, Inc. Purple Blaze Enterprises, Inc. AC/C Tech Watchtower Security Ray Rapchak Holdings ACI, Inc. WebListers RBG Properties, LLC Action Pest Control Whelan & Associates Realty & Mortgage Co. APCO Supply

iaaonline.net JAN • FEB 2018 INSITES 25 EDUCATION

Certifications Maintenance Certifications EPA/CFC CAM Section 608 of the Federal Clean Air Act requires persons who Recommended for both new property work with regulated refrigerants to become certified. Enroll in managers and those looking to take their this course to comply with regulations essential for supporting career to the next level! your apartment community. The CAM course was developed by the National Apartment This course includes four sections for the first time test takers Association Education Institute to provide the highest and second time test takers in your community. standard of training for the on-site manager and clear the Cost: Full Test - $135 for Members, $250 for non-members. path for growth and recognition. Advance your career path Retest - $79 for members, $150 for non-members. in the multifamily industry with this nationally recognized designation – get your CAM today! Indianapolis: Jun. 12 Cost: $1,250 for members / $1,810 for non-members. South Bend: Mar. 13

Indianapolis: Mar. 7, Mar. 14, Mar. 20, Apr. 4, Apr. 10, Apr. 18 R-410A South Bend/Merrillville: Jun. 13-14, Jul. 11-12, Aug. 22 Register for this 410A Certification course to provide necessary training and practical knowledge to safely service CAPS systems containing R-410A and R- 407C, the R-22 phase-out, Recommended for current or aspiring appropriate refrigerant and oil applications, service multi-site managers looking to advance techniques, and safe handling of R- 410A. their skill set! Cost: $185 for members, $260 for non-members Earning your CAPS takes you to the Indianapolis: Jul. 18, Nov. 13 next level in property management. It fast tracks your career advancement and your corresponding earning potential. South Bend: May 16 Capitalize on your career by expanding your knowledge Evansville: Sep. 13 property performance analysis, management agreements, capital improvements, human resources and much more! EPA’s Renovation, Repair, & Painting Rule Cost: $1,400 for members / $1,810 for non-members EPA’s Lead Renovation, Repair and Painting Rule (RRP) requires that firms performing renovation, repair, and painting Indianapolis: May 9-10, Jun. 27-28 projects that disturb lead-based paint in units, apartment properties, homes, child care facilities and pre-schools built CAMT before 1978 have their firm certified by EPA. Recommended for Maintenance Cost: $275 for members, $500 for non-members Technicians and Supervisors looking to master their trade. Indianapolis: May 8 Earning your CAMT validates your knowledge, enhances your reputation and credibility, boosts your confidence, and earns you respect. Advance your career by expanding your knowledge of preventative maintenance, regulator compliance, customer service, product repair and replacement decisions. Cost: $995 for members / $1,700 for non-members Save the date Indianapolis: Sep. 5-6, Oct. 3, Oct. 4, Oct. 5, Nov. 7, for the 2018 Midwest Nov. 8, Dec. 5, Dec. 6, and Dec. 11 Multifamily Conference on October 9th and 10th at the Indiana Convention Center! Visit midwestmultifamily.org for more information.

26 INSITES JAN • FEB 2018 iaaonline.net Fair Housing Courses Upcoming Education Around Every year, IAA hosts workshops around the state to keep our the State members up to date on Fair Housing regulations and trends that impact their businesses. For 2018, we are proud to announce that As part of its 2018 Member Education Series, IAA has Kathelene Williams will be leading two workshops for IAA. organized over 40 courses across the state of Indiana. These courses from leasing to maintenance, leadership Kathelene is president of the Fair Housing Institute, Inc., a to marketing, as well as several refresher courses for private, full-service training and consulting company whose maintenance professional. All Member Education Series mission is to educate and advise the nation’s housing courses are FREE with your IAA membership! industry about the social and economic benefits of fair housing and equal opportunity. Through her association with FHI, Kathelene provides fair housing training to private, public Northern Indiana and federally assisted housing providers, trade associations Retention and government entities across the country. Mar. 21, 9am to Noon, South Bend To date, Fair Housing workshops have been planned for the Plumbing Refresher following dates and cities: Apr. 19, 9am to Noon, South Bend Apr. 25, 9am to Noon, Merrillville Meth Awareness: Identification, Inspection, Remediation, Apr. 26, 9am to Noon, Indianapolis and Liability Training Others are planned for the future and will be announced May 8, 9am to Noon, Merrillville soon. These courses fill up quickly and are FREE to all IAA Members. Register today at www.iaaonline.net! Southern Indiana

Fair Housing for Maintenance Mar. 8, 9am to Noon, Evansville How to Effectively Communicate Budget Needs & Wants Apr. 10, 9am to Noon, Jeffersonville Meth Awareness: Identification, Inspection, Remediation, and Liability training Jun. 6, 9am to Noon, Evansville

Indianapolis Reputation Management Mar. 8, 9am to Noon, Indianapolis Maintenance Customer Service Mar. 15, 9am to Noon, Indianapolis HVAC Refresher Apr. 12, 9am to Noon, Indianapolis How to Effectively Communicate Budget Needs & Wants Apr. 19, 9am to Noon, Jeffersonville Consultative Selling Jun. 20, 9am to Noon, Indianapolis

iaaonline.net JAN • FEB 2018 INSITES 27 LEGISLATIVE UPDATE

Gretchen White IAA Director of Government Affairs

2018 State Legislative Halftime Report The General Assembly recently reached the is provided to the clerk for the collection • Requiring that the reliable verification half-way point of the short legislative session of petitions (no timeframe currently exists is provided by a psychiatrist, physician, which must adjourn not later than March within statute); advanced practice nurse, or behavioral 14. A number of important issues have been • Increasing the existing thresholds to require health and human services professional debated since session began in early January support from 60% of property owners who is licensed in Indiana. If an individual while others failed to receive a hearing or and 60% of the assessed value within a is moving from another state they can vote prior to the legislative deadlines. There proposed district (currently both thresholds provide documentation from a licensed have also been instances in both the Senate only require a majority); psychiatrist, physician, social worker or and House where legislation was approved mental health professional licensed in • Removing the existing authority of a by a committee but failed on the floor due to that state so long as they have an ongoing local council to arbitrarily increase the not receiving support from a constitutional therapeutic relationship with the provider; boundaries of a district; majority. IAA has been on-hand throughout • Exclude those whose sole service is to • Requiring the clerk to maintain EID the first half to educate and advocate on provide a verification letter for a fee from petitions for at least 90 days and that their behalf of the industry. IAA’s key legislative the definition of a health care provider (to notice to property owners include a public priorities are still moving through the process address online websites providing form hearing date which is not more than 60 which is a success. To put this in perspective, letters in exchange for a fee); lawmakers initially introduced roughly 900 days after the notice is mailed; • Establish penalties for a person who bills and at the halfway point there were • Clarifying that non-profits, state and misrepresents their need; makes materially just over 300 bills still eligible for further municipally owned property is exempt false statements to a health service provider consideration. Timeframes for consideration from the assessment; to obtain documentation; or fits an animal, of legislation are extremely compressed • Deleting the ability of an EID Board to that is not an emotional support animal, during the second half, with some committees increase an assessment because an owner with a harness, collar, vest, or sign. only having up to three meeting dates. Please appealed their amount; and Health service providers can be penalized contact Lynne Petersen ( Lynne@iaaonline. • Allowing locals the option of the clerk for providing verification of a person’s ) or Gretchen White ( net Gretchen@ being reimbursed for reasonable expenses disability status without having adequate ) with questions or for copies of iaaonline.net incurred for their role in EIDs. professional knowledge of a person’s the legislation mentioned below. condition or the provider charges a fee for Emotional Support Animal legislation written verification but provides no other Key Legislative Highlights approved by Senate service to the person; and (Sen. Jean Leisisng Economic Improvement District changes Senate Bill 240 • Provide immunity to the housing provider R-Oldenburg, Rep. Sally Siegrist R-West sail through House for an injury to another individual caused Lafayette) aims to provide much-needed House Bill 1278 (Rep. by an emotional support animal (i.e. if the legislation regarding emotional support animal bites another resident). R-Shelbyville, Sen. R-Markle) animals. IAA has heard from a number of seeks to provide commonsense changes to members in recent years regarding suspected the existing Economic Improvement District Affordable housing property tax abuse and frustrations stemming from exemption clears Senate (EID) statute. The bill received overwhelming documentation being provided to properties (Sen. Doug Eckerty bipartisan support from members of the which has seemingly been bought through Senate Bill 213 R-Yorktown, Rep. R-Attica) House, as evidenced by the 77-16 vote online websites in exchange for a small seeks to provide a property tax exemption and now proceeds to the Senate for further fee. The bill seeks to navigates federal for properties owned by a 501(c)(3) that consideration. Important provisions of the bill regulations while protecting those with a adhere to the Federal Rev. Proc. standards. include: legitimate need for such animals. The bill was The bill has been filed for the last several approved by the Senate with a 38-10 vote • Requiring a person wishing to conduct years and was approved by the full Senate by and now proceeds to the House for additional an EID petition to provide the clerk with a 45-3 vote. IAA has been closely monitoring consideration. Overall the legislation seeks to: written notice before petitions are sent the legislation to ensure that properties and to officially file a petition with the • Codify the federal regulatory framework on who have negotiated exemptions with local same office (currently only have to file a emotional support animals; PTABOA Boards do not lose those due completed petition with the council); • Create a reasonable definition of an to state legislation. The intent is to create • Providing 120 days from the date notice emotional support animal; consistent statewide standards after some

28 INSITES JAN • FEB 2018 iaaonline.net EVENT

non-profits have been seeing exemptions pulled without reason and instances where two very similar properties in different counties are treated Tuesday, April 17, 2018 differently with respect to property tax obligations. Last session very similar language easily passed Indiana State Fairgrounds | Farm Bureau Building the Senate but did not receive a committee hearing or vote in the House. 2018 Maintenance Appreciation Day Troublesome unlawful indemnity agreement bill still moving through the process WHAT IS MAINTENANCE APPRECIATION DAY? House Bill 1015 (Rep. R-Carmel, Sen. This is a day dedicated to the hardworking maintenance staff in the Rod Bray R-Martinsville) contains language that specifies a provision in a professional services multifamily industry. The event will include two education seminars, a contract that requires indemnification and defense mini-trade show with maintenance focused vendors, the Maintenance of a promise for certain liability is void. It also Mania games, lunch, and a social hour with the Maintenance Mania specifies that “sole negligence” for purposes of Awards and overall Maintenance Appreciation Awards. liability under a construction design contract does not include: (1) vicarious liability; (2) imputed WHAT IS MAINTENANCE MANIA? negligence; or (3) assumption of a nondelegable A competition in which apartment pros like you from around the country duty. IAA has heard concerns from members who use indemnity clauses to protect themselves from face maintenance-focused challenges that test their skills and knowledge liability and the target in litigation regardless of to earn the title of Maintenance Mania® National Champion. fault. The bill was approved by the House with an 86-11 vote and now proceeds to the Senate for further consideration. A number of industries will EVENT SCHEDULE be working together to find a workable solution in the Senate. Car check-in opens: 8:00 - 9:00 a.m. Meth legislation no longer contains problematic provisions Education Seminars (2): 9:00 - 11:00 a.m. House Bill 1120 (Rep. Cindy Kirchhofer R-Beech Lunch & Trade Show: 11:00 a.m. - 12:30 p.m. Grove, Sen. R-Valparaiso) Practice open: 12:00 – 1:00 p.m. — Check out all the games! contains language that changes references to “methamphetamine laboratory” to “controlled Maintenance Mania Competition: 1:00 p.m. substance,” amends the definition of “property” Networking & Awards Ceremony: 3:30 – 5:00 p.m. with regards to the statewide registry of properties, transfers the program overseeing Thank you to our sponsors: qualified inspectors and decontamination of a site that has been used in the illegal manufacture of a controlled substance from the Indiana Department We Do Restoration Right of Environmental Management (IDEM) to the Indiana State Department of Health (ISDH), and repeals the postnatal donation initiative. The bill initially contained far-reaching and objectionable provisions that would have negatively impacted the industry. The bill was brought forth by ISDH and IAA worked hard with the bill’s author to remove the harmful provisions. IAA will be For more information and to register, visit iaaonline.net. carefully monitoring the bill in the Senate to ensure objectionable items are not reinserted. Provisions deleted from the introduced version of

iaaonline.net JAN • FEB 2018 INSITES 29 LEGISLATIVE UPDATE continued

the bill included those which sought to: of the area served by the sewage works (HB Economic Development Rep. Ron Bacon R-Chandler, Sen. Mark • Direct local health departments to record an 1023 Messmer R-Jasper). HB 1288: Economic Development order to vacate on the chain of title of the (Rep. Jerry Torr R-Carmel, Sen. property; Other legislation of interest eligible R-Centerville) • Slash the existing 180-days a property for further consideration SB 353: Study of a regional development currently has to decontaminate a unit before tax credit (Sen. R-Auburn, Rep. Housing Generally being subject to the statewide registry to 10 R-New Haven) business days (IAA had negotiated this right HB 1021: Mechanic’s liens (Rep. Jerry Torr to cure time period in 2014); R-Carmel, Sen. Rod Bray R-Martinsville) Environmental and Utilities HB 1096: Construction requirements of • Require properties to notify residents HB 1035: Short term rentals (Rep. Matt Lehman (Rep. Wes Culver R-Goshen, in writing that the rental premises was R-Berne, Sen. R-Jasper) MS4 operators contaminated and provide written Sen. Blake Doriot R-Syracuse) certification that the rental premises has HB 1036: Unemployment Insurance (Rep. HB 1267: Water infrastructure task force been certified as decontaminated (so vague R-Huntington, Sen. R- Crawfordsville) (Rep. Ed Soliday R-Valparaiso, Sen. Ed it could have been construed to mean Charbonneau R-Valparaiso) notification was to be given for life of HB 1061: Asbestos litigation (Rep. property); and Matt Lehman R-Berne, Sen. Rod Bray SB 125: Registration of underground utility (Sen. • Allow ISDH to establish fees for the R-Martinsville) excavation contractors R-Indianapolis, Rep. Dave Ober R-Albion) maintenance of a statewide registry of HB 1115: Landowner immunity for trail decontaminated properties. access (Rep. Carey Hamilton D-Indianapolis, SB 356: Broadband grants for unserved Sen. Aaron Freeman R-Indianapolis) areas (Sen. R-Salem, Rep. Dave Multiple bills dealing with Ober R-Albion) annexation moving HB 1352: Towing services (Rep. Kevin Mahan This session a number of bills potentially R-Hartford City, Sen. Jeff Raatz R-Centerville) SB 361: Water infrastructure task force (Sen. Ed Charbonneau R-Valparaiso, Rep. Ed impacting annexation efforts by cities and SB 290: Worker’s Compensation (Sen. Soliday R-Valparaiso) towns. After hearing from several members Jon Ford R-Terre Haute, Rep. Matt Lehman last year regarding an annexation proposal, R-Berne) SB 362: Regulation of water and IAA became part of a coalition supporting wastewater systems (Sen. Ed Charbonneau language to: 1) sunset existing annexation SB 420: Credit services organizations (Sen. R-Valparaiso, Rep. Dave Ober R-Albion) waivers 15 years after the date of execution, R-Lawrenceburg, Rep. Woody which is on-par with new waivers executed Burton R-Whiteland) SB 411: Distressed utilities (Sen. R-Bedford, Rep. Heath VanNatter R-Kokomo) since 2015; and 2) require that going forward Tax Issues annexation waivers are recorded within 30 (Rep. Dan Government days of execution, to prevent instances where HB 1104: Property tax matters Leonard R-Huntington, Sen. Eric Bassler a municipality does not record the agreement HB 1003: Streamlining agency R-Washington) (Rep. Doug and subsequent owners are unaware of such reporting requirements Gutwein R-Francesville, Sen. Rod Bray agreements. The language exists in (Sen. Travis Holdman SB 261 SB 242: Tax issues R-Martinsville) (Sen. Rod Bray R-Martinsville, Rep. Dan R-Markle, Rep. Tim Brown R-Crawfordsville) Leonard R-Huntington) and (Rep. HB 1104 Workforce Development SB 173: Audit examinations and disclosure Dan Leonard R-Huntington, Sen. Eric Bassler requirements (Sen. Jim Buck R-Kokomo, R-Washington) which are both continuing to HB 1002: Reorganization of workforce Rep. Denny Zent R-Angola) move through the process. Additionally there funding and programs (Rep. is other language impacting annexation efforts R-Fishers, Sen. Eckerty R-Yorktown) SB 399: Occupational regulation oversight by prohibiting a municipality from annexing and review (Sen. Travis Holdman R-Markle, SB 50: Workforce development; career and Rep. Tim Wesco R-Osceolo) more than 15% of total gross assessed value of technical education (Sen. Doug Eckerty the annexing municipality within a calendar R-Yorktown, Rep. Todd Huston R-Fishers) SB 419: Ordinances affecting professional year (SB 171 Sen. Jim Buck R-Kokomo, licenses (Sen. Blake Doriot R-Syracuse, Rep. Jeff Thompson R-Lizton) and language SB 166: Reporting on worker misclassifi- (Sen. Dave Niezgodski D-South Bend, Rep. Bob Morris R-Fort Wayne) specifically permitting a municipal works cation Rep. Bob Morris R-Fort Wayne) board to waive the requirement in a sewage works contract that a property owner releases SB 297: Employability skills curriculum their right to remonstrate against pending (Sen. Jeff Raatz R-Centerville, Rep. Holli or future annexations by the municipality Sullivan R-Evansville)

30 INSITES JAN • FEB 2018 iaaonline.net NATIONAL FOCUS From the National Apartment Association, naahq.org

Budget Agreement Extends Finally, Congress strongly considered push outs help ensure one partner does PAVING • SEALCOATING • CONCRETE Energy Efficiency Tax Incentives attaching tax incentives to expand and not become liable for another partner’s strengthen the Low-Income Housing tax obligations. Non-compliant partners As part of the budget agreement reached Tax Credit (LIHTC) in this legislative that do not either pay additional taxes on February 7 to keep the government package, but these were unfortunately due or push through liabilities to their open, two tax incentives that support not included in the final bill. NMHC/ own partners would remain liable for energy efficiency investments in NAA will continue to advocate for taxes owed. apartments, which expired in 2016, were strengthening LIHTC by making renewed through 2017. additional resources available to enable Apartment Industry Urges Tax The Energy Efficient Commercial the production of new units and Reform Depreciation Fix Buildings Deduction allows owners of allowing “income averaging” to make the NAA/NMHC are working to address buildings with four or more stories to program more flexible and support more an unintended consequence from last deduct between $0.60 and $1.80 per mixed-income housing. year’s tax reform legislation that could square foot when they install certain adversely affect owners of existing energy efficient systems, including IRS Issues Partnership Audit apartment properties. Specifically, the HVAC, lighting, and building envelope. and Taxation Rules tax law allows firms to choose whether The New Energy Efficient Home Credit The IRS has issued two important to deduct business interest, but if enables developers of new low-rise rental proposed rules that affect how they do decide to do so, they must housing properties (three stories or less) partnerships handle tax liability depreciate the property for 30 years to claim a $2,000 per-unit tax credit if following an audit. They are part of a instead of 27.5 years. those residences achieve a 50 percent series of rules implementing legislation energy savings for heating and cooling Unfortunately, the legislative language passed in 2015 that changed the way over the 2006 International Energy was incorrectly drafted and could be partnerships are audited. Conservation Code. read to only apply to properties placed Beginning in 2018 audits can occur at in service after 2017. Under that NMHC/NAA believe that lawmakers the partnership level. NAA/NMHC have interpretation, existing buildings that opt should not only permanently extend strongly supported allowing audited to deduct business interest would have to Experts in Commercial Maintenance both of these tax incentives, but they partnerships to push out adjustments be depreciated over 40 years. should also enact reforms to make the HASCO, Inc. is a full service commercial concrete and asphalt company through multiple tiers of partners. On Energy Efficient Commercial Buildings NAA/NMHC had successfully secured February 3, the IRS issued proposed serving the greater Indianapolis area and beyond. With more than 20 Deduction more effective. Specifically, the 30-year depreciation option, via rules that address how partnerships and years experience, we o er professional, skilled pavement and concrete the terms of the Deduction should be the amendment process, after seeing their partners adjust tax attributes to take expanded so property owners can qualify the 40-year option in the original services with an emphasis on high quality project completion. into account partnership adjustments by achieving significant, demonstrated draft. Unfortunately, the provision’s under the centralized partnership audit From parking lot paving and sealcoating to concrete repairs, our team improvements in energy performance effective date was changed for reasons regime. Previously, the IRS generally relative to a building’s own baseline unknown following Finance Committee will customize a solution to meet your needs and  t your budget. held individuals within a partnership performance data rather than compared consideration as part of a substitute responsible for their share of tax liability. Contact us for a free, no obligation estimate today. to a specific energy code. amendment on the Senate floor when the On December 15, 2017, the IRS issued entire Senate was voting on the bill. The future prospects for these deductions a proposed partnership audit regulation are unclear. The House Ways and Means NAA/NMHC are making the case that that addresses how partnerships can Committee has indicated it will be Congress never intended a 40-year push out tax adjustments through holding hearings regarding tax extenders, depreciation period for existing buildings multiple tiers of partners following an PHONE: 317-769-PAVE including energy provisions. Meanwhile, that wish to retain a full deduction for audit. Under those regulations, each the Trump Administration released a business interest. A 40-year depreciation partnership in a tier can elect to either TOLL FREE: 877-209-9871 Statement of Administration Policy that period would unnecessarily disrupt pay any tax adjustment at the entity said, “The Administration is concerned cash flows and increase tax liabilities, hascoinc.com level or push out that adjustment to its with future extensions of special interest reducing the ability of apartment owners own partners. tax deductions and benefits in the wake to invest in their assets or develop new of tax cuts and reforms that were enacted NAA/NMHC encouraged the IRS to allow properties. That result would be contrary in December 2017.” such treatment in an August 11, 2017, to the goal of the tax reform bill, and we letter to agency because multiple-tier are requesting that it be avoided.

iaaonline.net JAN • FEB 2018 INSITES 31 JANUARY–FEBRUARY The official publication of the 2018 Indiana Apartment Association

INDIANA MARKET IN REVIEW

IAA Hosts 16 Industry Summit