Advocacy Update

Written by Forrest Wall, CAE, Staff Vice President and Industry RelationsTax Appeal Interest Rate Legislation Introduced
One of AAM’s top priorities is to find solutions to the backlog of property tax appeals before the Michigan Tax Tribunal. While there are a number of issues contributing to this backlog, one of the most frustrating is the interest rate applied to refunds. Currently about 1 percent, this low rate paid on refunds is an incentive for governmental units to delay case resolution.

Compounding the problem is the wide disparity between the interest rate applied to refunds versus delinquencies. Late property tax payments can incur interest charges as high as 18 percent, creating a fundamental fairness issue. AAM’s solution to this problem is embodied in House Bill 5340, recently introduced by Rep. Jud Gilbert (R-81st District) and referred to the House Committee on Tax Policy. HB 5340 amends the Tax Tribunal Act so that the interest rate on refunds after December 31, 2011 would be 3 percentage points above the adjusted prime rate (this is the average prime rate quoted by not less than 3 commercial banks and determined by the Department of Treasury). Successful enactment of this legislation would create a floating interest rate which, although not equal to the interest rate on delinquencies, will help to close the fairness gap and speed the resolution of appeals. AAM is partnering with the Michigan Chapter of the International Council of Shopping Centers in this legislative effort, and is in the process of seeking support from a number of other business trade associations. Our thanks to Rep. Gilbert for sponsoring this important legislation. Please watch your e-mail for “Calls to Action” as this bill progresses through the legislature.

Court Grants Leave to Appeal & AAM Amicus Filing in Northfield Estates Case
The Michigan Court of Appeals will hear an important appeal to a Michigan Tax Tribunal decision affecting property owners. Along with the order granting the application for leave to appeal, the court also granted the motion of AAM, Building Owners & Managers Association, Michigan Chamber of Commerce and Michigan Retailers Association for leave to file an amicus curiae brief. In this case, the Tax Tribunal issued an opinion that destroys the statutory mandate that transferred properties be assessed “using the same valuation method used to value all other property of the same classification.” If transferred properties are allowed to be valued unfairly and excessively relative to other properties, it would decrease investment in Michigan and result in a further depression of real estate values. AAM will keep you apprised of the status of this case as it progresses.

Posted in March 2012 | Leave a comment

How To Spot A Meth Lab

WRITTEN BY GARY SMITH, APARTMENT BUILDING MANAGEMENT WORKERS COMPENSATION SELF INSURED FUND

Imagine for a moment that your staff has just discovered a clandestine meth lab on your property. How would you handle this situation? Do you know why meth labs are so dangerous? Do you know who is responsible for cleanup? Do you know who to contact for assistance?

What is meth and what does it look like?
Methamphetamine (“meth”) is a powerful central nervous system stimulant with a high potential for abuse and dependence. It is known by a variety of names including meth, speed, crystal meth, crank, and cat. The drug comes in chunk (hard irregular chunks that look like ice or rock candy), powder (generally a white, pinkish or yellowish color), and pill form (either tablets or capsules of various colors). “Ice” is a clear form of methamphetamine that looks like chunks of ice or crystal. It can be snorted, taken orally, smoked, or injected. Ice is usually heated and the vapors it produces are inhaled.

Why is meth and its production so dangerous?
Meth trafficking and production are different than other drugs because they are dangerous from start to finish. The reckless practices of the untrained people who manufacture it in clandestine labs result in explosions and fires that injure or kill not only the people and families involved, but also law enforcement or firefighters who respond. Any number of solvents, precursors, and hazardous agents are found in unmarked containers at these sites. These potent chemicals can enter the central nervous system and cause neural damage, affect the liver and kidneys, and burn or irritate the skin, eyes and nose. Chemical gases and the drug itself are released into the air when made. These chemicals settle out onto walls, floors, furniture and personal belongings. Chemicals are also spilled onto surfaces. People who visit or live in former meth labs can breathe these chemicals and drugs in the air or touch them on surfaces. Small children are more likely to be harmed by these chemicals because their bodies are still developing and because they often touch contaminated surfaces, only to put dirty toys and hands into their mouths.

Environmental damage is another danger of these reckless actions. Each pound of meth produced leaves behind five or six pounds of toxic waste. Meth cooks often pour leftover chemicals and by-product sludge down drains in nearby plumbing, storm drains, or directly onto the ground. Chlorinated solvents and other toxic by-products used to make meth pose long-term hazards because they can persist in soil and groundwater for years. Cleanup costs are exorbitant because solvent contaminated soil usually must be incinerated. On average, it costs $5,000-$25,000 to clean up a meth lab, but a property could be a total loss if buildings have to be demolished.

What are the signs of a potential meth lab so I can help protect my tenants, staff and property from catastrophic damage?
Many people may be unaware that they are living near a meth lab. In Michigan during 2010, 679 meth lab incidents were encountered. Clandestine labs known as “mom and pop” labs are found in rural, city and suburban residences; barns, garages and other outbuildings; back rooms of businesses; apartments; hotel and motel rooms; storage facilities; vacant buildings; and vehicles. Since meth can be made from common ingredients and using readily available equipment, clandestine meth labs can virtually appear and disappear everywhere.

  • Look for these signs of a potential meth lab:
    A strong smell that might resemble cat urine; or an unusual chemical smell like ether, ammonia or acetone.
  • Little or no traffic during the day, but lots of traffic at extremely late hours.
  • Extra effort to cover windows or reinforce doors.
  • Residents never putting their trash out.
  • Lab materials surrounding the property (e.g., lantern fuel cans, red chemically stained coffee filters, clear glass jugs and duct tape).
  • Vehicles loaded with trunks, chemical containers, or basic chemistry paraphernalia – glassware, rubber tubing, etc.
  • Laboratory glassware being carried into the residence.
  • Open windows in cold weather.
  • Residents smoking outside due to fumes.

The presence of these items could also indicate the existence of a meth lab: alcohol, ether, benzene, toluene/paint thinner, Freon, acetone, chloroform, camp stove fuel/Coleman fuel, starting fluid, anhydrous ammonia, “Heet”, white gasoline, phenyl-2-propane, phenylacetone, phenylpropanolamine, iodine crystals, red phosphorous, black iodine, lye (Red Devil Lye), Drano, muriatic/hydrochloric acid, battery acid/sulfuric acid, Epsom salts, batteries/lithium, sodium metal, wooden matches, propane cylinders, hot plates, ephedrine (over-the-counter), cold tablets, bronchodialators, energy boosters, rock salt and diet aid.

Who is responsible for cleanup?
Michigan law makes the property owner responsible for cleanup of a clandestine meth lab.

The owner may need to hire a consultant or a contractor to do the work needed, to be sure all the meth lab contamination has been removed. The Michigan Department of Community Health (MDCH) has developed guidance to help property owners that includes a list of consultants and contractors who can perform meth lab cleanups (refer to Cleanup of Clandestine Drug Laboratory Guidance dated June 5, 2007, with Appendix F updated April 30, 2008).

Last, but not least, if you come across meth activities, STOP and DO NOT ENTER THE PROPERTY. Immediately CALL 911. DO NOT attempt to gather evidence on your own and never handle any materials that may be associated with a lab.

You can also call the Michigan Meth Hotline at 1 (866) METH-TIP [1-866-638-4847]. The call is anonymous and confidential.

For additional resources to help create community awareness, please visit these websites:

Michigan State Police Methamphetamine Resource Site: www.michigan.gov/meth

Michigan Meth Watch Program: http://www.michiganmethwatch.org

Field Guide to Meth Labs (updated July 2010): http://www.realtor.org/library/library/fg324

KCI The Anti-Meth Site: http://kci.org

Brown & Brown supports efforts to make the workplace a safer and more productive environment. For concerns or questions about safety issues contact Wendy Light or Jennifer Moffit at 1-800-467-6645. We welcome your calls and inquiries.

Posted in March 2012 | Leave a comment

In Memory of David Sparrow, AAM Past President

It is with much sorrow that we inform you of the death of AAM Past President David J. Sparrow who died Sunday, January 1, at the age of 84, after a short illness.

In 1992, David was honored with the Distinguished Service to the Apartment Industry award for his career achievements and his service to the Apartment Association of Michigan.

He was a Detroit native who started his law practice in partnership with Gerald Rowin. In 1955 they went into the building business with a client. They sold that business in 1962 but during those years they had also been buying and selling real estate. Those were the business ventures that set the course for David’s success in the apartment industry.

David attributed his success in the apartment industry to his partner and their business practices. “We have a high ethical standard we imposed on ourselves and that’s how we have worked and conducted ourselves,” he said. They kept their properties properly managed and maintained, and priced the units fairly.

David served as AAM President and as a Trustee for the apartment building Management Industry Workers Compensation Self-Insured Fund.

David is survived by three daughters, Susan Carson, Nancy Sparrow and Joanne Stewart as well as six grandchildren and three great grandchildren.

For those who wish to honor David’s memory, the family suggests a memorial contribution to Focus: HOPE, 1355 Oakman Boulevard, Detroit, MI  48238 or online at www.focushope.edu.

Posted in February 2012 | Comments Off

Bathtub Refinishing Can Be Deadly

WRITTEN BY GARY SMITH, APARTMENT BUILDING MANAGEMENT WORKERS COMPENSATION SELF INSURED FUND

nce 2000, there have been 13 fatalities nationwide from workers engaged in refinishing bathtubs. Three have died in Michigan since 2006 including one in 2010 at an apartment complex. These fatalities were due to exposure to methylene chloride-based stripping products. If your Maintenance staff performs these activities or contracts them out, be sure you have implemented the necessary safety practices outlined below to minimize the likelihood of these tragic accidents from happening on your properties.

Methylene Chloride (MC) is used in many commercial strippers and can be very dangerous when used in confined areas such as a bathroom because it evaporates so quickly. MC vapors are heavier than air which means they settle to the ground and often pool in the bathtub. When the worker bends over the side of the tub, they breathe in super high concentrations of MC vapor. If the worker is not wearing appropriate gloves or protective clothing, MC can be absorbed directly through the skin which presents yet another potential exposure to workers

In addition to being a carcinogen, MC has a direct toxic effect on the body. MC is changed once in the body to formaldehyde and carbon monoxide. Methylene chloride is a central nervous system depressant at high concentrations. The high level of MC vapor concentration in a tub produces an oxygen deficient atmosphere in the tub, causing a worker to lose consciousness and suffocate.Additionally, MC can change the rate or rhythm of a heart beat (arrhythmia). An individual who has pre-existing heart disease may be especially susceptible to the MC exposure.

To Protect Workers

• MIOSHA Occupational Health Standard, Part 313, Methylene Chloride requires that air monitoring, medical surveillance, hazard communication, PPE and written emergency plans be in place where methylene chloride is used.

• Do not use MC-based strippers. Whether your employees or a contractor do not allow MC-based strippers to be used due to their dangerous properties. But recognize that all stripping products have their own set of hazards, so read and follow the label and MSDS requirements.

• Establish fresh makeup air and local exhaust ventilation. Fresh air: place a fan in a window or doorway. Local exhaust: Attach ductwork to the suction side of another fan and place the other end of the ductwork in the bathtub. Place discharge side of fan in doorway or window so it will pull the MC vapors out of the tub to the outside of the building. Bathroom ceiling fans alone are not sufficient in removing MC vapors due to the vapors settling to the ground and lack of air flow these ceiling fans move.

Respirator. Wear a tight fighting pressure-demand full face air supplied respirator when applying and removing the MC-based stripper.  Dust masks and cartridge respirators do not provide the required protection.

• Leave the room after the MC stripper application. Keep fresh air and local exhaust fans running and windows and doors open.

• Use butyl rubber or polyvinyl alcohol (PVA) gloves. Latex or nitrile gloves do not protect workers from MC contact.

• Implement safe work practices such as using extended handles on tools to prevent workers from leaning into the tub.

Contractors. As part of your bathtub refinishing bidding process, require contractors to provide you with copies of their written safety program including process for refinishing tubs. If they do not follow the above mentioned items at a minimum they should not be allowed to bid.

By establishing some safety processes for your employees or contractors who perform this work on your property, you can prevent these accidents from happening, and minimize methylene chloride vapor exposure to your tenants. Anytime employees are working with chemicals whether painting, fertilizing or taking care of the pool they must understand the hazards involved and take the required actions to protect themselves. All too often we have become complacent with chemicals thinking they are too diluted to present a serious hazard. As these accidents show, this is simply not true. For additional information on bathtub refinishing hazards please visit the MIFACE Investigation Report and Hazard Alert Bulletin at the following links: http://www.oem.msu.edu/MiFace/10MI013Report.pdf and http://www.oem.msu.edu/userfiles/BathtubRefinishingHA14.pdf.

Information for this article was taken from materials provided by the Michigan Fatality Assessment & Control Evaluation (MIFACE) Program at Michigan State University.

Posted in February 2012 | Comments Off

Advocacy Update

Written by Forrest Wall, CAE, Staff Vice President and Industry Relations

Election 2012 Is Coming … Help AAM-PAC Make A Difference!

When you say “Election 2012″ most people’s thoughts turn to the Presidential campaign. Of arguably greater importance for apartment owners, however, are the races in this election for state legislative seats. The policies pursued by our state elected leaders can have a swift and significant impact on your operations and profitability. While Michigan’s Senators do not run in 2012, all 110 seats in the Michigan House of Representatives are up for election.

One great way to have your voice heard in this election is to support AAM-PAC. AAM-PAC is the Apartment Association’s political action committee,

which utilizes contributions from members and aggregates them into one fund. This fund is used to financially support those elected officials who understand the important role of rental housing in Michigan’s economy. In short, we do the legwork for you to find the candidates who will best represent your business, and then support their campaign.

In the era of term limits, AAM’s role in educating our current and future legislators about rental housing issues has never been more important. Some of the issues AAM is working on currently include:

Apartment Inspection Law Reform – AAM legislation seeks to put limits on registration fees as well as inspection fees and extend inspection cycle timeframes

Tax Tribunal Speed – AAM is proposing an increased statutory interest rate on tax appeals to provide an incentive for local governments to resolve appeals and help clear the case backlog at the Tax Tribunal.

Opposition to Proposal for Rent Control

Remember, AAM-PAC contributions must be made via personal, partnership, or LLP check or credit cards. Please contact me at 248-862-1004 to make your contribution today!

“Renovate Right” Pamphlet Revised

All landlords planning to renovate pre-1978 rental housing under the provisions of the Lead RRP Rule are advised that the EPA has a newly revised version of the “Renovate Right” pamphlet. Prior to beginning any renovation work you are required to distribute this brochure to the tenant. The pamphlet was revised in the wake of EPA being forced to back away from the proposed addition of clearance testing to the rule. Instead, the pamphlet was revised to include a post-work section which brings lead-dust testing to the attention of the recipient. To be in compliance with the law, landlords can either use the new pamphlet, or, if you have a supply of the old version you can simply print out and insert page 10, “For Property Owner: After the Work is Done.” To download a copy of the pamphlet, go to http://http://www.epa.gov/lead/pubs/renovaterightbrochure.pdf.

Posted in February 2012 | Comments Off