San Francisco Apartment Association

Feature

SFAA Goes National

by Steve Edrington

Starting in 2006, your SFAA membership will be worth more than ever. In addition to local and statewide influence, we will now enjoy national clout and increased benefits. It’s the equivalent of being upgraded to platinum.

On October 21, 2005, the California Apartment Association voted to affiliate itself with the National Apartment Association. Since SFAA is a CAA member, you will also automatically become an NAA member. So, what’s in it for you?

National Representation
With over 18,000 members, CAA will be a significant addition to NAA; they need us as much as we need them. Using the combined strength of over 51,000 voices, NAA will be an even more powerful influence in Washington, not only with legislators but also with regulatory agencies as well.

But why is this so important to us here at SFAA? After all, don’t we have enough issues to deal with locally? Well, here’s an example of a national issue that hits close to home every day: Section 8. Many of us rent to tenants with Section 8 vouchers, a nationwide program of the Department of Housing and Urban Development. HUD has been receiving less federal money each year. Many housing authorities around the country faced near-disaster last year when the federal government moved from a per voucher basis of funding to block grants. These were lump sums, generally reduced from previous years. Some housing authorities were unable to fund vouchers for existing tenants, causing a last-minute mad scramble to cover the shortfall.

Hurricane Katrina, the Iraq and Afghanistan wars and tax cuts have all contributed to a federal budget in crisis. Something has to give if tax revenues don’t increase and social programs such as those at HUD will be affected. Continued funding shortfalls will mean fewer vouchers, and Section 8 rents will not keep up as the market rises. We will need help in Washington to protect our interests and the interests of low-income tenants.

Here’s another federal action that will surely affect us: a presidential committee has recommended many “simplifications” of the tax code, including possible elimination of 1031 exchanges and a limit on the amount of mortgage interest homeowners could potentially deduct on their tax returns. The impact on rental-property owners could be even bigger than the 1986 tax-law changes that moved depreciation rates to 27.5 years for multifamily properties and 39 years for commercial properties. I am certain that NAA will be weighing in on these issues. CAA delegates to NAA (SFAA will probably have several) will have a direct say in the positions advocated in Washington.

Can NAA be effective on our behalf? Last year, NAA lobbied for landlords when the United States Postal Service proposed new minimum standards for existing mailboxes. This would have been extremely costly to many owners with older properties. NAA was successful in stopping this action and making it apply only to new construction. This is just one example of how a national voice can benefit us on the local level. In addition, NAA has taken strong positions on mold and asbestos regulations, fair-housing laws and otherconsumer-protection mandates that affect landlords.

Professional Designation
We plan to upgrade our California Certified Resident Manager designation to a Certified Apartment Manager designation. Professional education gives property managers and landlords the know-how to become more profitable and have fewer headaches. Many of our members have invested in their educations, expanded their knowledge by completing the CCRM series, and received professional designations in property management. CAM goes even further.
What is so good about CAM? It is a nationally recognized designation backed by the NAA Educational Institute, the powerful education and research arm of NAA. CCRM contains only 27 hours of education while CAM takes 56 hours. In addition, NAA offers the following supplemental programs:

  • National Apartment Leasing Professional;
  • Certified Apartment Maintenance Technician;
  • Certified Apartment Property Supervisor; and
  • Certified Apartment Supplier.

At of the end of 2006, the CCRM program will no longer be offered in California. Instead, SFAA and other CAA chapters and divisions will be teaching the CAM program.

And there’s good news for those who complete or currently hold the CCRM designation: CAA and NAA are considering programs to make it quite easy to upgrade to the new CAM designation or the National Apartment Leasing Professional designation during 2006. For the CAM designation, NAA and CAA are working toward a “grandfathering” process that will require only the completion of a Community Analysis Project (a narrative analysis on a rental property) and six continuing-education credits (approximately six hours) by early 2007. Also under consideration is a second “grandfathering” option to allow CCRMs to earn the NALP designation by completing just three continuing-education credits. (Please note, these programs are not yet final; we will update you with details as they become available.) Upgrades will be a lot easier than taking the entire CAM or NALP series.

Other Benefits
Each one of our members will receive UNITS, NAA’s magazine, which gives a national perspective on owning and managing rental housing. NAA has a terrific web site (www.naahq.org) with special member-only features. SFAA will now have access to over 100 associations in the NAA nationwide network and will benefit from shared information on government-affairs programs and educational programs.
What will joining NAA cost? The cost will be $3 per member plus $.50 per unit, or about $5-$10 a year for the majority of SFAA members. Associate members will pay a flat fee of $30. The charge will be assessed as part of the annual dues. It’s a real bargain for what we are getting.

I have visited NAA in Alexandria, Virginia, and was impressed with what I saw and the people I met there. NAA is truly welcoming CAA and eager to establish a partnership. I have been an NAA member for several years, and they do a great job. I’m glad CAA and NAA finally got together for this enhanced member benefit—it was long overdue.

Reprinted courtesy of Rental Housing. The opinions expressed in this article are those of the author and do not necessarily reflect the viewpoint of SFAA or San Francisco Apartment Magazine. Steve Edrington is the executive director of the Rental Housing Association of Northern Alameda County. He founded Edrington & Associates in 2000, specializing in investment brokerage, property management and consulting. He can be reached at 510-893-9873 x 103. Copyright © 2006 by Rental Housing. All rights reserved.