NAA Takes Industry's Case to Capitol Hill

WOBURN, MA—One of the hottest issues on the national political stage this year is immigration reform, and there's no shortage of media pundits from both ends of the spectrum to tell us what Congress should do. But separate from the media hype, immigration reform is a critical issue to commercial real estate and the apartment industry in particular. And it's a top lobbying priority this year for the Washington, DC-based National Apartment Association in partnership with the National Multifamily Housing Council.

But immigration is just one of the critical issues the group is mounting, explains 2015 chairman Tom Beaton, who is also senior vice president of management of the locally based Dolben Co. Beaton sat down with GlobeSt.com recently to shed light on NAA's position on the issues and discuss the upcoming Lobby Day. (See sidebar on second page, and for more information, click here.)

GlobeSt.com: Why is there such an emphasis on member involvement in advocacy?

Beaton: Building, owning and managing apartments is complex work with a lot of moving parts and serving a wide variety of needs, whether it be what we'll call conventional housing or affordable housing or housing for military, students or seniors. This means that the public-policy decisions on tax, labor, the environment, energy, and many other issues will have an effect on our business. With so much at stake, we can't afford to be complacent, and we have to engage in the active education of Congress so they can make informed decisions. We've made a lot of progress, but the education process is ongoing. Many of the members of Congress don't understand how our business works or the critical role it plays in local economies.

GlobeSt.com: In times of tax reform or economic down cycles, it always seems that Congress would be particularly tough on commercial real estate. How does the visibility and education that the industry achieves through its lobbying efforts counteract that?

Beaton: It's an accurate observation. In the past they've looked to real estate to resolve so many issues. Today we've done a better job educating them on our industry, who we are and the great benefits we provide to the national economy. Namely, we house one-third of the people in this country; we provide jobs and enormous contributions to the local and national GDP. It's very important that they understand that.

GlobeSt.com: So what issues top the list for NAA and NMHC?

Beaton: There are many issues of concern to the apartment industry, such as immigration, affordable housing, the future of the GSEs—Government Sponsored Enterprises such as Fannie Mae and Freddie Mac—tax reform and energy efficiency and environmental regulation. These are just some of the issues. The two biggest are immigration and affordable housing.

GlobeSt.com: What is the apartment industry's stand on immigration reform?

Beaton: Immigration policy directly impacts the apartment industry. It drives demand for housing. Sixty-eight percent of the immigrants who've been in the United States for 10 years or less rent an apartment. Immigrants are also an important part of the labor force, and they contribute significantly to building and operating apartment communities throughout the country. Comprehensive immigration reform should provide for the following: strength in interior and border enforcement, an improved employment eligibility-verification system, a strong temporary visa program and a practical process for legalization.

READING TEA LEAVES AND A CALL TO ACTION

GlobeSt.com: Are you sensing a Congressional direction in the short time since the mid-terms? Can you read the tea leaves?

Beaton: I haven't been able to do that yet. It's still a bit early.

GlobeSt.com: Let's talk about Section 8.

Beaton: The Section 8 voucher program is one of the most critical federal programs to help the nation meet its housing needs, but it can be a real administrative challenge for private owners. In order to increase their participation, which will in turn help close the affordable-housing gap, we need to streamline and improve its rules and regulations. There are specific areas, such as inspections, income certification processes and timing of payments, where we can make improvements to draw more private owners into the program. Late in 2014, the officers of both the NAA and the NMHC had a meeting with HUD Secretary Julian Castro and his key staff members, and we found there was a real openness to work with us to streamline many of the processes.

GlobeSt.com: You've made some impressive inroads on the GSE debate. Tell us about that.

Beaton: The apartment industry has been actively involved in the issue. In fact, NAA and NMHC helped draft the only GSE reform bill to pass a Congressional committee. Today, we remain very active in the discussion and are ready to once again play a proactive and productive role in the deliberations.

GlobeSt.com: There's been a huge sociological shift from owning to renting, which underscores the point you made about the importance of these issues. What are you seeing in that trend?

Beaton: As I said before, one third of America now lives in rental housing and a third of those live in apartment communities. When the housing market crashed in 2008, demand for apartments went up and hasn't slowed since. While in years past people rented out of necessity, today, it's a choice, and it's a choice they're making because it better supports their lifestyles.

A Call to Action

Mark your calendars. March 18 is Lobby Day, a coming-together of apartment managers, owners and developers from around the country to meet with legislators and their executive staffs in Washington, DC and address the issues facing the industry.

According to NAA 2015 chairman Tom Beaton, the day is a great opportunity to strike up a relationship with your Congressional officials or enhance the relationships you might already have. “You'll see the apartment industry everywhere, in every senate and house building,” he says.

If lobbying isn't something you're used to, Beaton says that the NAA staff is preparing briefings the day before the event to help newcomers grow comfortable with the process. “A lot of people haven't been to the Hill before, and it can be intimidating,” he says. “We give them the opportunity to feel comfortable with the issues so they can be an active part of the Congressional discussions.”

Of course, the effort doesn't have to start and stop with Lobby Day, which is part of the association's two-day Capitol Conference at the Washington, DC JW Marriott (March 17 and 18 http://capitol-naa.naahq.org ). Beaton says the meetings are only one conversation in what should be an ongoing relationship. “It isn't limited to DC,” he says, urging all members to strike up a dialog with their elected officials back on your home turf, and “keep the conversation going.”

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John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.