2016 Summer Newsletter Sponsors


Jun 23, 2016 - ...

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IREM Metropolitan Boston Chapter #4 Summer 2016 Spring 2016

2016 Summer Newsletter Sponsors

IREM® Boston

50 Redfield Street, Suite 109, Boston, MA 02122 617-436-7565, IREMBOSTON.ORG An affiliate of the National Association of REALTORS®, IREM is a trusted source for knowledge, advocacy and networking for the real estate community

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For more information on workspace fitness solutions, please call 1-800-334-4733

© 2015 InMovement. All rights reserved. All images and logos are properties of their respective owners. Products do not include accessories or monitors. © 2015 InMovement. All rights reserved. All images and logos are properties of their respective owners. Products do not include accessories or monitors.

Retail locations: FRAMINGHAM, HANOVER, NEWTON, ATTLEBORO, MA; NASHUA, NORTH HAMPTON, NH

www.pfe-inc.com

IREM Boston Metropolitan Chapter #4

Summer 2016

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IREM President’s Message The Boston Chapter has many great events happening in the coming months. We are preparing to set sail aboard the Spirit of Boston on June 23 on their private rooftop dining deck. With more than 100 members registered, it’s an event you do not want to miss! On June 9, the chapter hosted its first “Capital Project Management” training seminar at Leslie University. The panel of professional speakers Candice Morse included Douglas Thayer, CPM of Thayer & Associates, Inc; Neil Rouleau of Gorman Richardson Lewis Architects; attorney Frank Flynn of the Flynn Law Group; and Michael Flaherty of M.J. Ambrose Enterprises. Topics included the various phases of capital project planning and execution, educating the owner/client, the role of the architect or consultant, proper preparation of the contract documents, and avoiding and settling contract disputes. In an effort to improve community outreach, the chapter is in collaboration the Juvenile Diabetes Research Foundation and will participate in the JDRF walk in Boston on Saturday, October 1. Please watch for more information on how you can join Team IREM and support this wonderful organization. JDRF is the only global diabetes foundation with a strategic plan to

end type 1 diabetes (T1D). The executive committee congratulates a third IREM Foundation scholarship recipient. Telian Diggs of First Realty Management was a recent chapter recipient of the IREM Foundation Diversity Scholarship. We congratulate Telian on his accomplishments and look forward to seeing him achieve his CPM designation. The Friends of IREM Committee recently hosted a well attended networking event at Crossing 9’s on Granite Links golf course. Attendees enjoyed cocktails, appetizers and good conversation while overlooking the beautiful Granite Links golf course! The Friends of IREM Committee, led by Maria Benway of Service Master by Gilmore, continues to plan new and exciting networking opportunities for the membership. For more information about the chapter’s planned events in 2016, please contact Kelley Hannon at the Boston Chapter office at 617-436-7565 or via email at [email protected]

Candice Morse, ARM, CPM, is the 2016 president of the IREM Boston Metropolitan Chapter #4 and senior property manager at Thayer & Associates, Inc. AMO® located in Cambridge, Mass.

Thayer & Associates, Inc. AMO

®

“It is our mission to constantly seek ways to improve the quality of life for our clients while maximizing property value.”

Thayer & Associates, Inc. AMO® is an accredited management organization located in Cambridge, Mass. Thayer is a full service property management company providing clients with day-to-day property management services, project management, construction administration and coordination services, 24 hour emergency response staff, budget planning and financial management. Thayer & Associates serves commercial, residential, and rental properties throughout the Greater Boston area. Thayer & Associates, Inc. established in 1987, was acquired from the late Harry A. Gilbert, one of the first Certified Property Managers (CPM®) in the country. Three generations of his family have operated the business including President & Owner Douglas Gilbert Thayer, CPM®. Since 1987, Thayer’s reputation of stability, exceptional service, and enduring relationships with clients is reflective of an experienced staff dedicated to protecting each homeowner’s investment.

Thayer & Associates, Inc.

Visit us on Facebook.

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IREM Boston Metropolitan Chapter #4

Summer 2016

Boston Chapter Upcoming Events

June 23, 10:00am-11:00am, Executive Board Meeting (Officers, Board and Committee Chairs Members) Seaport World Trade Center, 200 Seaport Blvd #75, Boston June 23, Boarding at 11:00am, 12:00pm-2:00pm, Spirit of Boston Boat Cruise Meeting and Networking, Seaport World Trade Center, 200 Seaport Blvd #75, Boston June 29, 10:00am- 5:00pm, Northeast Buildings & Facilities Management Show & Conference, Booth 341, IREM Boston, Boston Convention Center, 415 Summer St., Boston

August 18, 12:00pm- 2:30pm, IREM Boston Annual Meeting- Strategic Planning Meeting - Executive Board, Granite Links The Tavern at GL, 100 Quarry Hills Drive, Quincy

September 12, 12:00pm-9:00pm, Annual Golf Tournament and Slate of Officers Meeting and Networking Event, Granite Links Golf Club,100 Quarry Hills Drive, Quincy September 22, 9:00am-7:00pm, Tri State Conference and Education/Networking MA, RI and CT, Mystic Marriott Hotel & Spa, 625 North Road, (Route 117), Groton, Conn. September 28, 8:00am-4:00pm, ETH800 - Ethics for the Real Estate Manager - Ethics Awareness Month, The Simon Companies, Office Conference center, 639 Granite Street, Lower Level, Braintree September 29 & 30, RES201 - Managing Residential Properties, The Simon Companies Office Conference center, 639 Granite Street, Lower Level, Braintree

October 5 & 6, RES201 - Managing Residential Properties, The Simon Companies Office Conference center, 639 Granite Street, Lower Level, Braintree October 7,8:00am-12:00pm, ARMEXM-ARM Certification Exam, The Simon Companies Office Conference center, 639 Granite Street, Lower Level, Braintree October 7, 4:00pm-5:00pm, Executive Board Meeting (Officers, Board and Committee Chairs Members), Faneuil Hall Market Place, 1 Faneuil Hall Sq.,Boston October 7, 5:00pm- 10:00pm, IREM Crawl for a Cause and Networking Event, Faneuil Hall Market Place, 1 Faneuil Hall Sq., Boston October 18, All day, National Leadership and Education Conference, Hilton San Diego Bayfront, 1 Park Blvd., San Diego, CA

November 2, 8:30am- 12:00pm, Avoiding Discrimination Liability, Current Issues in Dealing with Reasonable Accommodation Requests - Frank Flynn, Esq. November 10, 4:00pm-5:00pm, Executive Board Meeting (Officers, Board and Committee Chairs Members), Top of the Hub Restaurant, 800 Boylston St., Boston

Summer 2016

IREM Boston Metropolitan Chapter #4

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IREM Boston Metropolitan Chapter #4

Summer 2016

IREM Thru the Lens Mass. State House tour and Scholars American Bistro networking event on May 5

Housing Management Resources employees networking at Scholars American Bistro

Shown (from left) are: David Barrett, RVP Region 1, Nathaniel Brown and Stephany Goldzband

Shown are Steve Emerson and Brian Shimkus

IREM Boston members visit Capitol Hill during IREM’s Leadership and Legislative Summit in April

Shown are Dana Caruso and Walter Hannon

Shown (from left) are: David Barrett CPM, ARM, of Clifton Management Co.; U.S. Senator for New Hampshire Jeanne Shaheen; Jonathan Donahue CPM, ARM, of Trinity Managment; Peter Lewis CPM, Schochet Cos.; and Warren Lizio CPM, ARM, The Simon Cos.

Shown (from left) are: Peter Lewis, Kelley Hannon, Candice Morse and Jonathan Donahue

IREM Boston Metropolitan Chapter #4

Summer 2016

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IREM Boston Metropolitan Chapter #4

Summer 2016

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Summer 2016

JOIN IREM Boston on Saturday, October 1, 2016 DCR Hatch Shell

IREM Boston Metropolitan Chapter #4

Check-In: 9:30 a.m. Starts: 10:30 a.m. Length of Walk: 5K

Team Captain: Phil Renzi, 617-851-0641, [email protected] JDRF Contact: Lauren Shields, 617-831-1128, [email protected]

www2.jdrf.org/goto/IREMBoston · walk.jdrf.org/boston2016

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IREM Boston Metropolitan Chapter #4

Summer 2016

IREM News Convicted criminals...a new protected class? On April 4, 2016, the Office of General Counsel class for individuals with a criminal background, landfor the US Department of Housing and Urban Devel- lords can take steps to attempt to protect themselves opment (HUD) issued its unsolicited “guidance” for against investigation and/or private litigation from a landlords that process applicant(s)’s rejected applicant that alleges discrimination. Specificriminal background(s) as part of cally, housing providers should carefully review their the application process. Using the U.S. Supreme Court’s HUD’s guideline is focused upon evidence recent ruling and reasoning in Texas Department of Hous- that African Americans and Hispanics are ing & Community Affairs v. arrested, convicted and incarcerated at Ted Inclusive Communities ProjPapadopoulos ect, Inc., HUD opined that rates that are significantly disproportioncertain landlord policies that reject applicants ate to their share of the general population with criminal backgrounds may be discriminatory based upon a theory of “disparate impact”. when compared to individuals that are Disparate impact is the legal theory that while a classified as “White”. Based on HUD’s policy may clearly be neutral and non-discriminatory on its face, it may nonetheless be action- review of prison statistics from 2014, an able and discriminatory if the effect of the policy African American male was six times more disproportionately impacts a protected class (or classes). While individuals with criminal back- likely than a White male to be imprisoned, grounds are not a per se protected class, HUD’s and a Hispanic male was twice as likely to guidance letter shows evidence of a significant disparity in the prison population amongst Afri- be imprisoned than a White male. can Americans and Hispanics, when compared to individuals classified as “White” – and thus suggests a potential basis for a disparate impact dis- admission criteria and ensure that applicants are not crimination claim. The only exception/exemption for automatically rejected for “mere” arrests without conprior convictions, which can in and of themselves con- victions. Furthermore, consideration should be given stitute a valid basis to reject an applicant (without the to whether the specific criminal offense/conviction is need for further inquiry or consideration of mitigating related or indicative of the applicant’s ability to be a factors) is for a drug crime related to manufacturing or “good tenant”, which does not constitute a threat or distribution. danger to the rest of the residential community. Finally, HUD’s guideline is focused upon evidence that Af- the length of time since the conviction should also be rican Americans and Hispanics are arrested, convicted given weight when making a final decision on admisand incarcerated at rates that are significantly dispro- sion. portionate to their share of the general population when Landlords should not ignore or otherwise “chalk up” compared to individuals that are classified as “White”. HUD’s guidance as a non-binding opinion with little Based on HUD’s review of prison statistics from 2014, (to no) legal effect. Why? Because the U.S. Supreme an African American male was six times more likely Court’s decision in the above referenced case (Texas than a White male to be imprisoned, and a Hispanic Department of Housing & Community Affairs v. Inmale was twice as likely to be imprisoned than a White clusive Communities Project, Inc.) nearly mirrored male. As a result of these statistics, HUD warns land- HUD’s previously issued regulation regarding a burlords that: an “automatic” rejection for any criminal den-shifting analysis for disparate impact claims. As conviction(s), without consideration of the type of such, while the instant guideline prepared by HUD crime or possible mitigating factors; a rejection that is not law, regulation, or otherwise binding, history does not serve a substantial, legitimate, nondiscrimina- suggests that the highest court of the land may adopt tory purpose; or a rejection based upon an arrest (with- the reasoning. The Court may likewise reject HUD’s out conviction), could result in a determination that the guideline as an “executive overreach”, however, good landlord’s policy is discriminatory upon a disparate legal counsel should be advising you accordingly to impact theory. avoid having to “foot the bill” to defend the industry… While HUD’s guideline may cause anxiety, frustration, and confusion among landlords throughout the Ted Papadopoulos is a partner at Ashton country, as it appears to be creating a new protected Law, P.C, Winchester, Mass.

IREM Boston Metropolitan Chapter #4

Summer 2016

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IREM Boston Metropolitan Chapter #4

Summer 2016

IREM News Muddling through a market of mixed signals this anemic count of 38,000 new jobs. It could be that this odd recovery has simply and at last run its course. It could also be that, with record single-digit lows in unemployment, there is simply no more yield to get. This, as one pundit put it, could simply be the new normal in job creation. I tend to take a longer view on economic surprises, and believe that such results have to be measured against the backdrop of trends. Next month’s job figures will give us a clearer indication of what this month’s results actually mean. That said, I do agree with a recent analysis, provided by Marcus & Millichap, https://blog.marcusmillichap.com/2016/05/10/employers-maintained-hiring-trend-in-april-underemployment-rate-tightening/ which states, “Office employers’ willingness to commit to permanent workers will trigger a higher rate of tenant expansions in the coming months and contribute to net absorption of 86.5 million s/f in the U.S. office market this year. The increase in occupied But it appears that the next six months will space, combined with restrained construction, be a continuation of what we have already will reduce the nationwide office vacancy rate 30 basis points to 14.8% in 2016.” seen, not only in the first half but throughout Any way you slice it, this has by no means 2015—good, but not great, growth. It is clearly been a traditional recovery, which makes gauging future behavior all the trickier. By a market of mixed signals. There’s still a lot of standards, it has been a long upactivity in our multi-family portfolio, with rental traditional turn, however irregular. If I had to guess, I rate increases of roughly 5% across the board would stick to my earlier prediction that next year will see a slowing. and low vacancy. And if that’s the case, wise companies are—or have been—planning for the worst, This is especially true of the multifamily marnever a bad business strategy. At The Simon ket, not only within my company, but industry Companies, we treat each property as a standalone business, each its own profit center, and wide, still enjoying its long surge in rental we can further that “emergency strategy” by rates and occupancies. But we’re also still get- boosting our reserves and contingency funds. ting turnover from tenants in our Office Sector, Such safeguards prevent soft markets from decaying our cash flow. shopping in an attempt to take advantage of But—and here is the takeaway—whatever happens next year, we’re better prepared for it lower rates when their leases expires or new than ever before. We learn hard lessons from buildings with better amenities every cycle we experience, whether it’s overbuilding or, as happened in 2008, the results This is especially true of the multifamily market, not of sloppy lending and underwriting. And , we in the proponly within my company, but industry wide, still enjoy- erty management field stand to gain—if we are smart— ing its long surge in rental rates and occupancies. But no matter the market conditions. As to what next year’s levelling off will bring, well, we’re also still getting turnover from tenants in our Office Sector, shopping in an attempt to take advantage of low- we’ll just have to wait and see. er rates when their leases expires or new buildings with Christopher Mellen, CPM, is 2016 president of the Instibetter amenities. The May job postings from the Bureau of Labor Statis- tute of Real Estate Management and is vice president tics was, at least on the surface, a shock and disappoint- of property management for the Simon Companies, ment. But I believe there are a number of ways to view Braintree, Mass. Apparently, it’s as true in economy as it is in psychology. The best predictor of future behavior is past behavior. Standing at roughly the mid-point of 2016, it seems that what we’ve gotten so far this year is what the rest of the year will shape up to be. In the beginning of the year I predicted 2016 would be a robust, breakout one for the market, based in large part on the growth that I was seeing in Christopher my own projects. Mellen But it appears that the next six months will be a continuation of what we have already seen, not only in the first half but throughout 2015— good, but not great, growth. It is clearly a market of mixed signals. There’s still a lot of activity in our multi-family portfolio, with rental rate increases of roughly 5% across the board and low vacancy.

IREM Boston Metropolitan Chapter #4

Summer 2016

Boston Chapter #4 Presidential Gala Thursday, November 10, 2016

The Institute of Real Estate Management Boston Chapter #4 invites you to join us in celebration of the chapter’s first National President

“Honoring Christopher E. Mellen”

This special evening will be held on Thursday, November 10, 2016 at the Top of the Hub in Boston The chapter will also recognize industry award recipients in eight categories and present a special donation to the Juvenile Diabetes Research Foundation.

Register at http://bit.ly/1PDYUXA

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IREM Boston Metropolitan Chapter #4

Summer 2016

IREM Member Profiles Name: Peter Lewis Title: Vice President of Property Management Company: The Schochet Companies Location: Braintree, Mass. Place of birth: Newport, R.I. Peter Lewis Family: Trish and Colby College: Paul Smith’s College, SUNY College of Environmental Science and Forestry First job unrelated to your current field: Almacs grocery store - bagger First job in current field: Assistant property manager - Ferland What your firm does now and its plans for the future?: Currently manage a portfolio in New England of 5,000 apartments. Looking to grow the company to a portfolio of 10,000 apartments. Hobbies: Cycling, walking, skiing, hiking, golf Favorite novel: Clear and Present Danger – Tom Clancy Favorite film: Live and Let Die Keys to success: Stay focused, work life balance, life long learning. Person(s) you most admire (outside of fami-

Name: Christopher Mellen, CPM Title: Vice President – Simon Companies; President – IREM Company: Simon Companies Location: Braintree, Mass. Place of birth: Boston, Mass. Christopher Mellen Family: Wife, Elaine; children, Chris Jr., Mandi and Chad and grandson, Alexander College: Fox School of Business, Temple University, bachelor’s degree; Boston University, master’s degree First job in current field: Asset manager What your firm does now and its plans for the future?: Real estate management and developing properties and real estate management Hobbies: This year my activities with IREM as its national president Favorite novel: War and Peace Favorite film: Saving Private Ryan Keys to success: Go with it Person(s) you most admire (outside of family): Franklin Simon, my boss, mentor, and founder of the Simon Companies If you had to choose a different profession, what would it be?: College professor.

Name: John Kadim Title: Portfolio Property Manager Company: Crowninshield Management Corp. Location: Peabody, Mass. Place of birth: Gloucester, John Kadim Mass. College: MBA - Southern New Hampshire University; BS Business Management (PreLaw & Psychology minors) - Salem State University First job unrelated to your current field: Service desk/bookkeeping - Shaw’s Supermarket First job in current field: Assistant property manager – Crowninshield Management Hobbies: kayaking, swimming, running, soccer, hockey, photography, architecture, Favorite novel: The Five People You Meet in Heaven - Mitch Albom Favorite film: Donnie Darko Keys to success: Never ask anybody to do something that you have never once done yourself. Person(s) you most admire (outside of family) If you had to choose a different profession, what would it be?: Neurosurgeon

Name: Frank Flynn Title: Managing Partner Company: Flynn Law Group Location: Boston, Mass. Place of birth: Japan Family: Married with two children Frank Flynn College: University of Cincinnati, and Boston College Law School First job unrelated to your current field: Lifeguard First job in current field: Boston College legal services What your firm does now and its plans for the future?: Flynn Law Group serves our clients aggressively and practically with all their legal matters in residential landlord/ tenant matters, condominium collections, commercial evictions and leasing and construction law. We always strive to keep legal fees reasonable. Hobbies: Gardening, physical fitness, and watching New England sports Favorite novel: Crime and Punishment Favorite film: My Cousin Vinny Keys to success: I enjoy what I do, it doesn’t feel like work to me; my work is my passion and everything else follows.

IREM Boston Metropolitan Chapter #4

Summer 2016

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IREM Boston Metropolitan Chapter #4

Summer 2016

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