Glossary of Terms

ADA Americans with Disabilities Act; federal legislation providing equal rights for individuals with disabilities ADAAG Americans with Disabilities Act Accessibility Guidelines; a set of ADA compliance guidelines issued by HUD for new construction and rehabilitation ADT Average daily traffic AIMS Apartment Industry Mobilization Service; the National Apartment Association (NAA)/National Multi Housing Council (NMHC) Joint Legislative Program’s computer-based system that provides members with up-to-date information on legislation which affects the multifamily housing industry. AIMS staff monitors daily activities in Washington D.C., to identify events which are important to multifamily housing. The AIMS network helps members contact, develop relationships, and work with elected officials and other who influence decisions that affect the industry AMO Accredited Management Organization; the Institute of Real Estate Management’s (IREM’s) professional designation for management organizations AMPO Amount to make the project operational ANSI American National Standards Institute ARM Accredited Resident Manager; IREM’s professional designation program for resident managers BOCA Building Officials and Code Administrators International; one of the three model building code organizations and a member of the International Code Council (ICC) BOMA Building Owners and Managers Association; BOMA, Washington, D.C., represents the apartment and office management industries, with 100 federated associations in the United States, Canada, and around the world CAD Cash available for distribution; a definition widely used in the Real Estate Investment Trust (REIT) industry to evaluate equity REITs. CAD is defined as funds from operations (FFO) less estimated capital expenditures CAM Certified Apartment Manager; the National Apartment Association’s professional designation program for apartment managers CAMT Certified Apartment Maintenance Technician; the National Apartment Association’s professional designation program for apartment service technicians CERCLA Comprehensive Environmental Response Compensation and Liability Act; a federal law, enacted in 1980, and reauthorized by the Superfund Amendments and Reauthorization Act of 1986, which imposes on owners, lenders, occupants, and operators liability for correcting environmental problems discovered on a property CGL Comprehensive general liability insurance CPM Certified Property Manager; IREM’s professional designation program for property managers CRS Certified Residential Specialist; designation offered by the Realtors National Marketing Institute EA Environmental Assessment EBITDA Earnings before interest, taxes, depreciation, and amortization; a financial measure used in assessing the operating performance of an equity REIT. EBITDA provides a basis for evaluation the ability of a REIT to incur and service debt and to fund acquisitions, capital expenditures, and make distributions to shareholders EIS Environmental impact statement; a report that includes a detailed description of a proposed development project with emphasis on the existing environmental setting, viewed from both local and regional perspectives, and a discussion of the probable impact of the project on the environment during all phases Enterprise Zone An approach to urban renewal EPA U.S. Environmental Protection Agency; a federal agency responsible for such pollution control activities as air and water pollution, solid waste management, pesticides, radiation, and noise FCRA Fair Credit Reporting Act; new amendments affective September 30, 1997, were designed to promote accuracy and ensure privacy of the information used in consumer credit reports FHAG Fair Housing Accessibility Guidelines; a set of fair housing compliance guidelines issued by HUD for new construction and rehabilitation FFO Funds from operations; a definition widely used in the REIT industry to evaluate equity REITs. FFO approximately equals net income, calculated in accordance with generally accepted accounting principles, and adds back real estate related depreciation and amortization FHA Federal Housing Administration; a federal agency established to encourage improvement in housing standards and conditions, to provide an adequate home financing system through the insurance of housing mortgages and credit, and to exert a stabilizing influence on the mortgage market Fair Housing Act Title VII of the Civil Rights Act which makes discrimination based on race, color, sex, familial status, handicap, religion, or national origin illegal in connection with the sale or rental of dwellings and vacant land offered for residential construction or use FHLMC Federal Home Loan Mortgage Corporation (Freddie Mac), Washington, D.C.; a federally chartered corporation established for the purpose of purchasing mortgages in the secondary market FMV Fair Market Value FNMA Federal National Mortgage Association (Fannie Mae), Washington, D.C.; established by Congress in 1938 to acquire government-insured mortgages through the FHA, Fannie Mae buys single and multifamily mortgages from a network of more than 3,000 mortgage lenders nationwide, financed by selling debt and mortgage-backed securities to private investors GIM Gross income multiplier; a numerical factor that expresses the relationship of gross income to sales price or value. It is calculated by dividing price by gross annual income GRM Gross rent multiplier; a rule of thumb for estimating the market value of income- producing residential property. It is derived by using comparable sales divided by the actual or estimated monthly rentals to arrive at an acceptable average HOME Home Investment Partnership Act; a housing assistance program, primarily for state and local governments, established under Title II of the National Affordable Housing Act of 1990. HOME funds may be used for resident-based assistance, housing rehabilitation, a limited amount of new construction, neighborhood revitalization, and housing those with special needs HOPE Home Ownership for People Everywhere; a housing assistance program established under Title IV of the National Affordable Housing Act of 1990 HUD U.S. Department of Housing and Urban Development, Washington, D.C.; a federal cabinet department active in national housing programs such as urban renewal, public housing, model cities, rehabilitation loans, FHA-subsidy programs, and water and sewer grants HVAC Heating, ventilation, and air conditioning IBC International Building Code; a new international standard building code under development by the International Code Council (ICC) which will incorporate all current building codes and comply with the Fair Housing Act and the Americans with Disabilities Act ICBO International Conference of Building Officials; one of the three model building code organizations and a member of the International Code Council (ICC) ICC International Code Council; group which encompasses all three of the model building code organizations and is developing the new International Building Code (IBC) IFC International Fire Code IREM Institute of Real Estate Management, Chicago, Illinois; a national organization concerned with professional management of real estate. An affiliate of the National Association of Realtors IROC Independent Rental Owners Committee of the National Apartment Association; a networking and information exchange group for small volume multifamily property owners LIHTC Low-Income Housing Tax Credit; this federal program was created under the 1986 Tax Reform Act with the intention of promoting affordable housing by offering 10-year tax credits for investors Lease-Up The time following new construction, renovation, or repositioning that is required for the property to reach specified occupancy and income levels MBA Mortgage Bankers Association of America, Washington, D.C. MBA is a nationwide organization devoted exclusively to the field of real estate finance. Members include mortgage banking companies, commercial banks, savings and loan associations, mortgage brokers, title companies, state housing agencies, investment banks, and REITs MHI Multifamily Housing Institute, Washington, D.C.; a nonprofit research and educational organization MXD Mixed use development; the use of real property for more than one use, such as combining retail, office, and residential NAA National Apartment Association, Alexandria, Virginia. The largest national organization dedicated solely to rental housing, representing more than 28,000 rental housing professionals holding responsibility for approximately 3.4 million apartments nationwide. NAA lobbies for the industry on the national, state, and local levels, provides education programs, publishes Units magazine and other industry publications, conducts an annual Education Conference and Expo, provides a broad range of business services for members, and promotes industry professionalism NAHB National Association of Home Builders, Washington, D.C.; represents more than 155,000 member firms involved in all phases of the residential and light commercial construction industries NAIOP National Association of Industrial and Office Properties, Washington, D.C.; a network of chapters serving real estate developers, owners, investors, asset managers, and associated industry professionals throughout the United States and Canada NALP National Apartment Leasing Professional; the National Apartment Association's professional designation program for leasing consultants NAR National Association of Realtors, Chicago, Illinois; NAR provides education, research, and an exchange of ideas among its Realtor and Realtor-Associate members, the public, and government NAREIT National Association of Real Estate Investment Trusts, Washington, D.C.; national trade association for the REIT Industry, made up of public and private REITs and individuals with an interest in the REIT and real estate investment industries NFPA National Fire Protection Association NMHC National Multi Housing Council, Washington, D.C.; represents the interests of the firms participating in the multifamily rental housing industry NOI Net operating income Normal Wear and Tear Ordinary damage that occurs in an apartment during the term of the lease Notice to Pay or Quit A legal notice to the resident to pay delinquent rent or leave the apartment NRC National Realty Committee, Washington, D.C.; serves as a leading public policy advocate for capital, credit, tax, environmental, and investment-related issues NTO National Tenants Organization; represents the interests and position of residents before government agencies and also serves as an information source concerning resident activities Occupancy Rate Ratio of rentable units to total rentable units Per-Unit Cost Method A method for calculating a property management fee based on the direct cost of managing a specific number of rental units PSF Per square foot PUD Planned unit development; a new concept in housing designed to produce a high density of dwellings and maximum use of open spaces. The concept is an "overlay" zoning, which enables a developer to obtain a higher density (and sometimes a mixed use for commercial and industrial) than is permitted by the underlying zoning RAM Registered Apartment Manager; the National Association of Home Buider's professional designation program for apartment managers REIT Real estate investment trust; a method of pooling investment money using the trust form of ownership. Rent Roll List of residents showing the unit occupied, rent, term of lease, and security deposit paid for each. The term comes from an early English law when rents were listed on a parchment roll Repair and Deduct Doctrine under which a resident makes repairs and deducts the cost of the repairs from the rent. This only applies when the property owner fails to respond to maintenance requests within a reasonable time Resident Manager The person who is directly responsible for leasing, maintenance, and other on-site functions; also known as the on-site manager ROC Rental Owners Course; NAA education course designed to educate owners of properties of fewer than 100 units on the basics of property management SARA Superfund Amendments and Reauthorization Act of 1986; This amendment to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) focuses on the ceanup of releases of hazardous substances on property. It creates significant legal exposure based on strict liability for owners and sometimes lenders SBCCI Southern Building Code Congress International; one of the three model building code organizations and a member of the International Code Council (ICC) Security Deposit An amount of money paid by the resident to the property owner used to cover damages, cleaning, and unpaid rent after the resident moves Service Maintenance Response for service iniated by the resident SMSA Standard metropolitan statistical area; a designation given by the federal Office of Management and Budge (OMB) to counties with at least one central city of 50,000 or more residents. The SMSA designation is often used as a qualifying standard for governmental grants such as the Community Development Block Grant URLTA Uniform Residential Landlord and Tenant Act; a uniform act intended to provide some consistency in regulating the relationship of the owner/manager and the resident in the residential leases. A number of states have adopted all or part of the act or passed similar legislation. published in the 2000 NAA/NSC buyers guide, a supplement to Units magazine Top of Page

© 2008 Idaho Rental Owners & Managers Association