Pillow Talk – Mighty Metroplex

Interchange , Loops , and Highways Interstate 35 and Toll Road 45 Austin Texas Transportation. Intersections at busy Round Rock - Austin Texas Interstate and Highways crossing and turning. Aerial Drone Bird`s eye view of Texas Hill Country highways

In January 2016, Pillow Talk asked three questions: 1) does the prospect of owning/operating a residential rental property in a new Tarrant County sub-market make you panic or does it send a thrill down your spine?   2) Does your company’s culture only fit certain classes of properties?  3) If you could acquire a property in any Tarrant County city or neighborhood are their certain areas you would avoid?

Two years later, has your perception of Tarrant County changed?  Has your company’s culture embraced change or remained static?  Has your Tarrant County red-line expanded or contracted?

The above inquiries are about risk.  Yours and your company’s risk tolerance will determine how adventurous and prosperous your 2018 will be.

In 2015, Pillow Talk featured overviews of Tarrant County’s top-ten cities. For 2016 and 2017 Pillow Talk drilled down a bit further and took a more in depth look at more than twenty key Tarrant County neighbors.

For 2018, we’ll compare DFW to other regions; Tarrant County cities to each other; and see how the west-side of the Metroplex fares against our rivals to the north and east.

We’ll see if lines on a map matter.  We’ll look at who and what makes DFW exceptional and susceptible. We’ll explore the what and the so, what.

AATC MEETS WITH HUD RA VAN DUYNE – AATC President Sherry Jordan (Lumacorp) and NAA Chairman Jeff Lowry (Madera) along with AATC members Nicolle Block (AMLI), Char McCurdy (Madera), Mike Clark (Alpha-Barnes), Hugh Cobb (Alpha-Barnes), Lani Grant (Day Rise), Mary Margaret Lemons (Fort Worth Housing Solutions), Steve Thurber (Pace), Ed Ducoff (Pace), David Mintz (TAA), Michael Walker (Walker -Holder), as well as, AATC staff members John Mitchell and Perry Pillow met with HUD Regional Administrator Beth Van Duyne on November 14 to discuss a variety of federal housing issues. Topics discussed included service/support animals, disparate impact, affordable housing initiatives, and multifamily finance.

2018 PRIMARY ELECTIONS – The candidate filing deadline is December 11 for the March 6, 2018 primary elections.   All United States and Texas House of Representatives, Texas state-wide offices, Justice of the Peace, as well as, numerous county commissioners and count-wide officials are up for election. Races of note include Tarrant County Justice of Peace for precincts 3, 4, & 6 in which incumbents Casey, Wright, and Ritchie are expected to draw multiple opponents.  AATC’s government affairs committee will consider candidate contributions for the March 2018 primaries during its January 2018 meeting.

TEXAS HOUSE SPEAKER STRAUS – Last month, in a surprise move, Texas House Speaker Joe Straus (R – San Antonio) announced that he would not seek reelection. Straus has been a friend of the multifamily industry, but he faced increasing opposition from the more conservative wing of the Texas Republican party.  The speakership matters.  Through the ability to appoint committee chairs; assign members to committees; and recognize members during floor debate, the Speaker controls the flow of legislation through the Texas House.  All 150 members (Republicans and Democrats) elect the speaker—76 votes win.  AATC friend and long-time state representative Phil King (R – Weatherford) along with numerous others have announced they are running for speaker.  Unlike Washington where the majority party controls all committee chairs, historically, legislature committee chairs have been appointed on a bi-partisan basis with both Republicans and Democrats leading committees regardless of the speaker’s party. Regardless of who becomes speaker, AATC members can expect the 2019 legislature session will be a more conservative with a tilt towards a Washington-style legislative process

FEDERAL TAX REFORM – NAA and NMHC are actively involved in the federal tax reform process.  As tax reform moves through the legislative process, our industry is urging Congress to enact pro-growth tax reform that encompasses the individual and corporate side of the tax system. We support tax reform that promotes economic growth and investment in rental housing without unfairly burdening apartment owners and residents relative to other asset classes.  Supporting economic growth through sensible tax policy is critical.  Lawmakers are calling for reform of the nation’s overly complex tax code to foster economic competitiveness and economic growth. Given that owners, operators and developers of multifamily housing pay taxes when they build, operate, sell or transfer communities to their heirs, a lot is at stake. The apartment industry favors pro-growth reform that does not disadvantage multifamily rental housing relative to other asset classes.  Specifically, our industry is advocating for:  1) business interest deductibility; 2) no change to carried interest treatment; 3) maintain 1031 like-kind exchanges; 4) keep the Low-Income Housing Tax Credit; 5) keep status quo on estate taxes; and 5) ensure that private-activity bonds are preserved.

The TRAIL – AATC along with other business, non-profit, and civic leaders are working with Fort Worth city officials to address revitalization efforts in the Las Vegas Trail neighbor in far west Fort Worth.  This project focus on safety, education, housing, economic development, and social services.  The Las Vegas Trail area contains 34 apartment properties—24 of which are AATC members.  AATC is working with city officials to create economic development incentives for multifamily owners/operators who chose to invest in this neighbor.

MONSTER MASH TOP GOLF THANKS –  Big thank you to everyone who playe3d or sponsored a bay at the inaugural Monster Mash AATC Top Golf Thriller on Halloween.  Special thanks to title sponsor SRT, lunch sponsor BG Multifamily, and Power Drive sponsor Reliant.  Because of your efforts, we raised more than $18,000 for AATC PAC.

AATC vs Bedford –The city still has until December 6th to file an appeal with the Texas Supreme Court. If our case is appealed to the Texas Supreme Court, and, if the Texas Supreme Court were to ask for briefings, our attorney estimates we could be talking about this same jurisdictional challenge this time next year.  However, if and/or when either court denies the petition or the City were to simply begin preparing for trial on the merits of our claim in district court, we’ll want to immediately consider taking similar steps.    The trial on the merits original schedule for May 2017 is stayed pending the appeal process. If you have related questions or concerns of any kind, please don’t hesitate to contact Perry Pillow at ppillow@aatcnet.org or (817) 616-0354 or AATC’s Executive Director, John Mitchell at jmitchell@aatcnet.org or 817-616-0352.

If you have related questions or concerns of any kind, please don’t hesitate to contact Perry Pillow at ppillow@aatcnet.org or (817) 616-0354 or AATC’s Executive Director, John Mitchell at jmitchell@aatcnet.org r 817-616-0352.