Hitting the Hill 

Washington Multi-Family Housing Association (WMFHA) members Joe Puckett, Nicole Birge, Kathie Cook and Joan Carro met with freshman Washington Rep. Jaime Herrera Beutler (R-3) to discuss several critical policy issues affecting the apartment industry.

Puckett, Government Affairs Director for WMFHA, told Herrera Beutler that the apartment industry must have an ongoing, federally backed guarantee for apartment sector mortgages, a role now served by the Government-Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac, if it is going to meet the rising demand for rental housing. “We have to refinance our properties every three, five or seven years, and we need a source of credit that will enable us to acquire existing properties or build new ones,” Puckett said. “There will be a deficit in rental housing in the next few years and we don’t want to see the role that Fannie and Freddie play disappear.”

Also on the agenda was the issue of energy-efficient green buildings. Puckett said the apartment industry wants incentives for energy conservation rather than mandates.

Rep. Herrera Beutler agreed. “I’m not a supporter of mandates,” she said. “It’s not the best use of what little capital there is right now.”

“Congresswoman Herrera Beutler brings a breath of fresh air to the Hill,” Puckett said. “She is young, thoughtful and articulate. She seemed well versed about multifamily issues when we met with her and was very responsive to the messages that we delivered. We look forward to a long, productive relationship with her and her staff.”

Illinois Addresses Balanced Housing

The importance of a balanced housing policy and the need for additional rental housing were at the top of the agenda during the meeting in Illinois Rep. Mike Quigley’s (D-5) office.

Jerry Gawlik, President of the Chicagoland Apartment Association (CAA) and a District Manager for Berkshire Property Advisors LLC, and Judy Roettig, Executive Director of CAA, spoke with Jesse Feinberg, a Legislative Assistant for Rep. Quigley, about maintaining the great relationship CAA had with Quigley while he was in Chicago by keeping the multifamily housing industry on the map.

“A lot of attention is being paid to single family, but we want to make sure multifamily is in the mix, too,” Roettig said. “We, as an industry, house 30 percent of the residents in Illinois, and a much larger percentage in Chicago.”

The American Dream used to be a house with two kids, a station wagon and a picket fence, but that is no longer realistic, Gawlik added. “That idea is diminishing, and in its place is a tremendous demand for rental housing. We need to grow by 300,000 units a year—otherwise, the loss of affordable workforce housing is going to be a major stress for the people of Chicago. We need the backing.”

Feinberg said Rep. Quigley is on the apartment industry’s side regarding the need for affordable housing. “Rep. Quigley wants to make sure his constituents have the opportunity to either rent or own,” Feinberg said. “Our big concern is the state of the housing market. We want to make sure that it is stabilized.”

Gawlik said he thought the meeting went smoothly. “I believe that at the time of our visit, Rep. Quigley was not as aware of the tremendous growth our industry will be experiencing, the need for liquidity to meet the demand and the greater role rental housing will play versus single-family ownership,” Gawlik said. “We left with a definite feeling that there was a renewed interest in our cause.”

Michigan Advocates Energy-Efficient Incentives

A delegation from the Property Management Association (PMA) of Mid-Michigan, the Washtenaw Area Apartment Association (WAAA) and the National Multi Housing Council (NMHC) met with Rob Guido, Legislative Director for Michigan Rep. Dave Camp (R-4), to address the issue of government-mandated energy-efficient green initiatives.

George Markley, President of the WAAA, and Leah Panagopoulos, President of PMA Mid-Michigan, asked Guido to consider the negative impact mandates could have not only on owners, but on renters as well. “This industry—which is already pretty energy efficient—is very committed to going green, but we would prefer to have incentives because the only way we can pay for these improvements is through higher rent,” Markley said.

“Our market in Michigan has not yet rebounded to the point where we can have the luxury of raising rent,” added Alice Ehn, Executive Officer for WAAA.

Guido said Rep. Camp, who is chair of the powerful House Ways and Means Committee, is in agreement. “Mandate is a dirty word around here,” Guido said. “As energy prices rise over the summer, there is an appetite for tax incentives in this House. In the context of overall reform, if we can reduce tax expenditures, we will.”

Markley also took the opportunity to discuss bed bugs,

urging Rep. Camp’s office to help take ineffective over-the-counter bed bug treatments off the market and distribute information to the public about the growing problem. “Detroit is third in the country for bed bug infestations and in the last few years, bed bugs have cost apartment owners significantly,” Markley said.

Ehn said Rep. Camp’s office was very receptive. “I did not get the impression that Rep. Camp would be voting against the NAA position on the issues we brought forth,” she said. “He has in the past supported “no mandates” to improve energy conservation on a volunteer basis and has always seen the value of rental housing as a housing option in providing home for our citizens.”

Utah Fights Apartment Stigma

When members of the Utah Apartment Association (UAA) met with Republican Sen. Orrin Hatch’s Legislative Policy Advisor, John Tanner, they made one thing very clear: Renters are not second-class citizens.

“In Utah, there is the assumption that apartments are a bad place, that renters commit more crimes,” said Paul Smith, Executive Director of the UAA. “It’s just not the case. We need the government to make the multifamily housing industry a greater priority—something that is on par with homeownership, rather than third or fourth down on their agenda.”

Smith told Tanner that two-thirds of the demand for housing in the next 10 years  will be for rental housing, as investors will snatch up foreclosures and turn the homes into rental housing. If there’s a shortage of rental housing, renters will have to combine households or move back home with their parents.

“I’m smiling because I’m a renter and I also have tenants, so you’re preaching to the choir,” Tanner said. “The problem is that there are a number of good multifamily housing programs. The question is, can we afford it?”

Randy Rounds, UAA President, said Tanner assured him that Sen. Hatch, the ranking member of the powerful Senate Finance Committee, understood the need for balanced housing policies. “I was very pleased that all of our representatives from Utah say they are committed to protecting rental housing financing,” he said. “I thought our visits couldn’t have come at a better time.”

Members Make Most of Visits

Some other Hill visits of note included a delegation of four Kentucky and Ohio apartment associations who met with Minority Leader Sen. Mitch McConnell (R), the Apartment Association of Greater Dallas’ visit with Texas Rep. Pete Sessions (R-32), chair of the National Republican Congressional Committee, and members of the Apartment Association of Greater Los Angeles who met with Rep. Karen Bass (D-CA-33).

Lauren Boston is NAA’s Staff Writer. She can be reached at lauren@naahq.org.

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