Appendix I: Suggested Property Management Licensing Language
Appendix II: Establishing Fair and Reasonable Occupancy Standards
Appendix III: Indoor Air Quality Standards
Appendix IV: Premises Security Standards
Appendix V: ANSI Standard A39 Safety Requirements for Window Cleaning
Appendix VI: ASHRAE Standard 62-89 Ventilation for Acceptable Indoor Air Quality
Appendix VII: Guidelines for the Use of Human Models in Advertising
Appendix VIII: Housing for the Elderly

Appendix I: Suggested Property Management Licensing Language
November 1991

Property Management Licensing
Background and Objective:
With the growing number of unlicensed and unqualified individuals engaging in property management, the Institute wishes to communicate to the National Association of REALTORS® (NAR) the importance of proper licensure in order to ensure that property managers are qualified and competent individuals. The Institute also wishes to communicate its concern regarding separate condominium manager licensing, as well as the creation of any separate class of property management licensing. The Institute also requests that NAR include IREM leadership in deliberations on property management licensing with the National Association of Real Estate License Law Officials (NARELLO).

IREM Position:
While the Institute of Real Estate Management acknowledges that the issue of separate property management licensing is a states rights issue and should be left to the discretion of each individual state, IREM, as a national organization, believes that management of residential apartments; condominiums, cooperative and homeowner's associations; office buildings; shopping centers; and all other commercial property by independent contractors involves real estate activities and should require a license. IREM National is opposed to separate licensing for these property management activities and urges all forms of property management, including community association management, to be under the jurisdiction of existing state real estate broker and agent (salesman) licensing laws. Specifically exempted from this are on-site managers and other on-site personnel.

Further, the Institute encourages state real estate commissions, or appropriate governmental agencies, to take a stronger interest in professional property management as a real estate function in order to protect the public. This should be accomplished by adding property management curriculum to the broker and sales courses and property management questions to the testing process.
(November 1991)

(NOTE: This Legislative & Public Policy position is to be accompanied by the Suggested Property Management Licensing Language.)

Suggested Property Management Licensing Language
In order for IREM's position on licensing to be effectively implemented, the statute or regulation defining the activities of brokers, association brokers, agents (salesmen), etc., must provide for property management as an activity. This is accomplished by adding property management to the traditional list of broker activities.

(NOTE: It is likely that the language recommended below will have to be altered slightly to conform with the existing language in each state. Some states already list management as an activity within the statute.)

Broker shall mean any person who, for a fee, a commission, or any other valuable consideration or with intent or expectation of receiving the same from another, negotiates or attempts to negotiate the listing, sale, purchase, exchange, rent, lease, property management, or option for any real estate or improvements thereon, or assists in procuring prospects or holds himself or herself out as a referral agent for the purpose of securing prospects for the listing, sale, purchase, exchange, renting, leasing, managing, or optioning of any real estate or collects rents or attempts to collect rents, or holds himself or herself out as engaged in any of the foregoing activities.

Depending on how the regulatory language defines agents/salesmen, similar amendment must be made to the agent/salesman definition.

After property management has been listed as a distinct broker and agent/salesman real estate activity, property management should be defined. In some cases this would be done in administrative rules, although it may also be done in the statutory language. The model language recommended is as follows:

Property management shall mean and include actions undertaken for another, pursuant to an agreement, in exchange for a fee, commission, compensation, or other valuable consideration, in the marketing; leasing; the physical, administrative, or financial maintenance; and overall management of real property; or supervision of such actions.

By adding this defining language, property management can easily be addressed within other statutory or administrative rule-making. This is advantageous in separating property management from other broker activities when similar treatment may adversely affect property management. For example, some states have applied rules governing transactional broker accounts to property management operating accounts because no clear distinction between the different accounts or the real estate practices existed in the statutory or administrative language. By outlining property management within the law, it will be possible to address property management in specific rule making, or exempt it from rules governing other broker activities.

Exemption for On-Site Managers and Other On-Site Personnel
It is also recommended that a licensing exemption be sought for on-site managers and other on-site personnel. The recommended exemption language is as follows:

Any person employed or retained by, for, or on behalf of the agent of, or the owner, of any real estate shall be exempt from holding a license, if the person is limited in property management activities to one or more of the following activities:

1. Delivery of a lease application, a lease, or any amendment thereof to any person.
2. Receiving a lease application, lease, or amendment thereof, a security deposit, rental payment, or any related payment for delivery to and made payable to a property manager or owner.
3. Showing a rental unit to any person, as long as the employee is acting under the direct instructions of the broker, including the execution of leases or rental agreements, provided the broker is responsible for the actions of his employees.
4. Providing information about a rental unit, a lease, an application for lease, or the status of a security deposit or the payment of rent to any person.
5. Assisting in the performance of property management functions by carrying out administrative, clerical, or maintenance tasks

It should be noted that in addition to the exemption of on-site residential managers, other typical exemptions include owners; attorneys acting on behalf of a client: receivers, bankruptcy trustees, administrators, executors, civil sheriffs; or others who may be acting on behalf of a government authority and managers of agricultural property.

IREM has no formal position on these other exceptions, but generally believes that individuals engaged in real estate activities should be held to the same ethical and professional standards as licensed real estate practitioners. While many states have statutory language dealing with the above mentioned practitioners, such occupations are likely to be of secondary concern to IREM members. Consequently, IREM chapters may or may not wish to pursue either licensing or exemption requirements for practitioners other than property managers and on-site residential managers.

(11/91, updated 4/04, 4/09)

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Appendix II: Establishing Fair and Reasonable Occupancy Standards
November 1991

Occupancy Standards
Background:
Occupancy standards, which determine the maximum number of occupants that can reside in a dwelling, have always been a matter of some contention among owners and operators of residential rental property. However, with the passage of the Fair Housing Amendments Act of 1988, occupancy standards, or more specifically the lack of them, have been a serious cause of consternation for property managers. Although the Fair Housing Amendments Act did not set specific occupancy standards, it did require that any standard be fair and reasonable.

Further complicating the issue of occupancy was the 1988 Act's inclusion of families with children under classes protected from housing discrimination. The familial status provisions in the Act do not deal in numbers, as do occupancy standards. Essentially under the Act, unless a residential rental property meets specific requirements to qualify as elderly housing, it is illegal to discriminate against families with children. This presented numerous problems for rental property owners and operators as it became increasingly difficult to separate familial status and occupancy concerns.

A 1990-1991 study of property managers conducted by the Institute of Real Estate Management (IREM) indicated that occupancy standards and familial status were the basis for over twenty seven percent of all fair housing complaints filed. The study also revealed that fifty-six percent of all threats to file complaints were based on familial status and occupancy.¹

Following the study, IREM created a special study committee consisting of multifamily housing experts to examine occupancy standards and make a recommendation designed to diminish the confusion and curb the excessive litigation and complaint filing associated with misunderstandings regarding occupancy and familial status. The committee considered a second body of knowledge regarding various occupancy standards and guidelines used throughout the country, as well as the pros and cons of each.²

The decision of the study committee was to recommend a national guideline which is essentially a composite of occupancy policies used by notable residential real estate management firms, as well as versions of multifamily occupancy policies used or once used in programs conducted by the Department of Housing and Urban Development (HUD) and the Farmers Home Administration (FmHA). The content of the recommended guideline also conforms with the so-called Keating Memo of March, 1991. In that memo, HUD's general counsel outlines a general guideline of two persons per bedroom, subject to exception based on various factors.

It is the purpose of the recommendation submitted by IREM's study committee to expound on the Keating memo and above mentioned guidelines and to communicate and encourage those guidelines to local IREM Chapters.
However, an inherent problem in a national guideline is that universal application is sometimes inappropriate to certain markets, property types and situations. Diametrically opposed to these varying conditions is the fact that uniform and consistent application of rules is central to fair housing.

IREM has always supported fair housing and equal opportunity for all individuals. At the same time, the Institute realizes that occupancy policies are necessary for reasons of public health and safety; protection of government subsidy; efficient use and protection of the existing housing stock; and numerous other reasons.

Therefore, with the understanding that the following guidelines are meant to provide guidance tempered with flexibility, IREM recommends that IREM chapters, and the real estate community in general, consider the following guidelines, and where appropriate and necessary, pursue their endorsement and acceptance by state and local legislative bodies.

Guidance Recommendation

As a general guideline, the following occupant density shall serve as a fair and reasonable occupancy guideline:

(NOTE: Minimums are usually applicable only in government subsidized housing in order to protect the subsidy. The maximum numbers apply to all housing units, whether subsidized or conventional.)

It should be noted that the above occupant density chart is not new. It has been used by HUD and FmHA and is essentially the same two-person-per-bedroom guideline recommended by HUD's general counsel. Nonetheless, it has not been formalized or nationally adopted, nor have most state and local governments adopted it.
Due to the variety of property types and configurations, the following guideline should be used in conjunction with this occupant density chart:

Bedroom Size
Each bedroom occupied by one individual shall have a minimum of seventy square feet. When more than one individual occupies a bedroom, the bedroom must contain a minimum of fifty square feet per occupant.

The above reference to square footage of bedrooms is taken from the Building Officials and Code Administrators (BOCA) Uniform Housing Code. It is identical to the Uniform Code established by the Southern Building Code Congress International (SBCCI).

Use of Recommended Guidelines in Subsidized Housing
When a subsidized housing program has an applicable policy for determining numbers of individuals per unit, the program guidelines or standards shall apply. In subsidized housing in which an occupancy guideline or standard is not provided, the guideline recommended in this paper should be pursued.

The Right to Appeal
A stated and clearly defined occupancy guideline is in the best interest of all parties concerned. While the above guideline should be suitable for a vast majority of properties, the wide variety of property types and property conditions found in the national housing stock will sometimes cause the application of a universal policy to have adverse effects on the property and/or the residents.

In these instances, owners and managers of private property should have the right to appeal any occupancy policy, including the guidelines mentioned above, that has been adopted by any governmental authority when a more restrictive or less restrictive policy is justified. When a variance in the government's occupancy policy is granted by such authority, the operator of the housing shall adopt the variance as a policy and by doing so shall be protected from discrimination complaints based on the failure to employ the government's less restrictive policy.

Property operators who feel it is necessary to seek a variance from any imposed occupancy policy imposed by local government should do so at an appropriate time. Such as:

• Following the adoption of an occupancy policy by a governmental authority.
• When it becomes evident that the governmental occupancy policy is inappropriate for a given property.
• When a change in the condition of a property makes the occupancy policy inappropriate.

Under no circumstances should variances be sought which:

• Adversely affect an existing tenant.
• Adversely affect a current rental applicant.

In order to protect the fair housing rights of existing tenants and current applicants, governmental bodies may use grandfather clauses, effective dates, or other methods determined necessary when granting a variance.

Although variances from the recommended guidelines are occasionally warranted, under no circumstances should patently discriminatory practices be the reason for or the effect of any variance or occupancy policy. Those practices include but are not limited to:

• Disallowing children in residential communities (except in legitimate elderly housing as defined by fair housing laws.)
• Restricting the number of children rather than the number of occupants allowed in a dwelling. \
• Requiring surcharges or additional security deposits or fees for families with children.
• Steering families with children to or concentrating them in certain parts of a residential complex.

However, it should be the right of a private property owner/operator to:

• Require that families with children observe the same occupancy guidelines that are applicable to all tenants and potential tenants of a complex.
• Require that families which add children move into larger units when the addition of a child or children causes the applicable occupancy standard to be exceeded.

Use of this Recommendation
IREM recognizes that the use and pursuit of this recommendation is entirely at the discretion of the local IREM chapters. IREM believes that the use of an occupancy guideline, such as the one recommended, is beneficial to simplifying operations and avoiding litigation.

It must be emphasized that this recommendation consists only of guidelines which do not and cannot, in any way, supersede state, local or federal occupancy policies that are already in effect.

Some states and localities have already adopted occupancy standards. In such cases, those policies take precedence. However, IREM chapters are encouraged to compare the policy which has been adopted by the state or local legislative body to the guidelines which are recommended by IREM National. If they are substantially similar, or if the adopted policy is acceptable to IREM members, no activity in regard to the policy may be necessary. However, IREM chapters would be encouraged to pursue the creation of an appeal/variance process.

In states and localities that have impractical or unworkable occupancy guidelines, IREM chapters are encouraged to pursue amendments to conform the policies with the recommended guidelines including the appeal/variance process.
In states and localities that have no occupancy policies, IREM chapters are encouraged to pursue the adoption of the recommendation, including the appeal/variance process, to state or local legislatures.

Possible avenues for adoption of this recommendation include but are not limited to:

• State Legislatures
• City and County Councils
• Housing Agency Administrative Rules

When attempting to implement this recommendation, IREM chapters are also encouraged to seek the support and assistance of state REALTOR® Associations and Local REALTOR® Boards, other IREM chapters and other interested multifamily housing groups.

Additionally, IREM National will be communicating this recommendation to the Fair Housing and Equal Opportunity officials at the Department of Housing and Urban Development (HUD). IREM will pursue an endorsement of the recommendation by HUD which would aid in the adoption of the guidelines by state and municipal legislative bodies. IREM National will also encourage other multifamily housing organizations, and the National Association of REALTORS® to endorse and adopt the recommended guidelines.

IREM believes that these actions will help to remove the uncertainty over occupancy standards created by the absence of a specific fair and reasonable standard in the Fair Housing Amendments Act of 1988.

¹ IREM Fair Housing Survey Report; IREM, April, 1991.
² In Search of an Occupancy Policy: Occupancy and the Fair Housing Amendments Act of 1988; IREM, September, 1991.
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Appendix III: Indoor Air Quality Standards
September, 1994
IREM's Position on OSHA's Notice of Proposed Rulemaking: Indoor Air Quality Standards
Background:
The members of IREM are committed to the maintenance of the health and safety of all occupants in buildings, and are ready to take whatever means necessary to meet prescribed qualifications. We believe that the property management industry, on the whole, is maintaining a high standard of IAQ compliance with the incentives already in place through current government and market influences.

IREM supports the direction the government is heading on minimizing the presence of Environmental Tobacco Smoke (ETS) in the work environment. Other stipulations in the ruling, however, are inconsistent and unnecessary for maintaining optimum IAQ in light of the extensive financial expenditures, time and record-keeping which the property owner would have to incur.
After reviewing the notice of proposed rule-making, IREM poses the following concerns:

1. Economic Feasibility
A) This proposal is overkill for property owners and property managers and will be too costly to implement. The extreme financial burden of making expensive structural modifications, training personnel, maintaining numerous records, investigating employee complaints, cost of manpower and cost of consultants to advise on compliance standards and strategies would be one which many property owners could not afford in today's flailing real estate market. High vacancy rates of 18.4% and 11.7% in the office and retail building markets, respectively, will prohibit property owners from raising rents to compensate for these increased costs.

Any records which may be required should be kept to a minimum and relate only to preventative maintenance and repairs of the mechanical equipment pertaining to IAQ and required by the building owner. Records should only be kept at the property for a maximum of five years and be transferred with ownership.

B) This proposal will in itself be a burden to government resources, costing federal, state and local governments nearly $1.76 billion as part of OSHA's estimated $8.1 billion annual industry-wide expenses. Government buildings nation-wide account for 21.7 percent of this country's 2.39 billion square feet of office space. In addition, the building industry will incur millions of dollars annually for the added paperwork, investigations, and staff required to monitor public and private building compliance.

By encouraging employers to make IAQ compliance a priority in the work place, government entities and private industry will save on costs for endless paperwork, staff, and property modifications.

C) The estimated $1.76 billion financial burden incurred by the federal, state and local governments' compliance costs will ultimately be born by the American taxpayer.

D) Remodelling: During construction or remodelling, the tenant often contracts all of the work. The training must be among the contractors -- not the tenant or property manager's staff. In these cases, the contractors should be held liable. Building engineers must be trained in system management for both energy efficiency and acceptable IAQ treatment in buildings.
The definition of the term "remodelling" is unclear. The language of this ruling insinuates that virtually all activity will be considered remodelling. Tenant improvements and constant remodelling of space (placing office modules, bays, moving walls, equipment, etc.) would require the cost of consultant services to determine problems with airflows with each major change. The reports of these consultants, after modifications have been made, should qualify as a legitimate defense against related IAQ complaints on the property.

To avoid additional expenses, building owners or managers might shun necessary renovation or remodelling in order to avoid having to upgrade their HVAC systems.

The typical 100,000-square-foot office building experiences individual tenant turnovers three times each year. Each tenant turnover in a property requires additional structural remodelling expenses.

E) This ruling does not address compliance specifications for older buildings and would require the additional cost of consulting services to update "as-built" plans with each building modification. Many older buildings lack current "as-built" plans due to continual renovation over time.

F) New certification and training requirements of maintenance personnel will increase employers' costs for training and limit their hiring options.

G) ASHRAE's standard, which proposes to increase the requirement for external airflow in buildings, imposes an impossible financial and reconstructive burden to owners of antiquated buildings with "primitive" heating ventilation systems. Presently, the majority of pre-1989 buildings are not even designed to meet the 1989 ASHRAE standard. For example, buildings constructed in the 1970's which undergo remodelling will be required to upgrade their entire mechanical systems.

H) Under this regulation, a building owner or property manager may be required to run the HVAC when only one person is working in the building. Results of a sample study indicate an average 100,000-square-foot office building runs its HVAC system an average of 12 hours per day. Mandating 24-hour HVAC operation would add an estimated 20% increase in total operating costs. This significantly increases operating costs and energy consumption for only minor use.

2. Premature Timing Of Proposed Ruling
The United States Congress is currently considering passage of the Indoor Air Quality Act of 1993 (HR 2919) which will permit and require funding for extensive research on Indoor Air Quality issues. This section in the bill is widely supported by IREM and the NATIONAL ASSOCIATION OF REALTORS®. Finalization of OSHA's proposed IAQ ruling would be premature, considering the IAQ research this congressional bill will provide, and conflicts with the intent and purpose of the proposed Indoor Air Quality Act by requiring property owners to bear the financial burden for installing a new system before extensive research can be applied.

Considering the recessive nature of the building market, many buildings unprepared to bear the extensive costs of this regulation may be forced to close. The banking industry will ultimately be burdened with numerous defaults, as many building owners will have to invest in costly modifications for properties that are only partially occupied.
(ref.: HR 2919)

3. Tax Credits
To ease the economic burden of the property owner, IREM recommends the introduction of positive incentives for compliance by providing tax credits on property owners' federal, state and local tax returns for buildings incurring expenses for mandated treatment or abatement of indoor air contaminants.

Furthermore, we recommend that properties receive real estate tax credits to recognize the fact that the imposition of building codes in many instances forced owners to use materials which were later discovered to pose health risks and which they now must bear the cost to remove.

4. Smoking Ban
A) The proposed ruling fails to address at length the procedures and options for a complete ban on smoking. IREM believes the best alternative to controlling ETS and its symptoms is for buildings to create a smoke-free environment in concordance with the Smoke-Free Act of 1993, which would ban smoking in the workplace. This approach would eliminate altogether the need for designated smoke rooms and the expensive ventilation system this rule would require. At the same time, the no-smoking ban would create a healthier workplace and reduce cleaning and maintenance costs.

Currently, nineteen states and the District of Columbia are successfully enforcing a no-smoking ban in private workplaces; 34 percent of the 85 percent of firms with smoking policies have complete smoking bans. This presents strong evidence that states and localities already are succeeding, without federal government intervention, in producing a more cost-efficient and safer IAQ workplace environment.

B) This proposal does not discuss which governmental laws or regulations - federal, state or local - will take precedence in this issue. State and local governmental bodies may have their own, stricter standards with complete bans on smoking in the workplace. This regulation needs to address the legislative impact this regulation will have on relevant state and local laws and regulations already enacted. Otherwise, enormous confusion over compliance will emerge not only between governmental bodies, but among the property owners and managers as well.

5. Property Owner v. Tenant Liability
The burden of liability between the employer and tenant for implementing and maintaining the new IAQ standards is unclear, especially in multi-employer building relationships, where concurrence on IAQ standards and responsibilities is difficult to obtain.

OSHA needs to specifically clarify the roles and responsibilities of the landlord, tenant and even the tenant's employees in ensuring proper compliance. Requiring the tenant to develop and implement compliance through actions such as inspection and maintenance of the building creates a conflict, as most tenants do not have responsibility or control of building systems. In contrast, while many landlords of retail facilities may control all or part of the building ventilation system, the tenants and their employees have the ability to influence IAQ through their use of thermostats, which may affect airflow, and other controls or activities.

While the cost of installation may be the responsibility of the property owner, landlords have a contractual relationship with tenants, not their employees. The building owner's responsibility is that of a service provider. In some cases, the building owner may be responsible for HVAC modifications and maintenance, as well as determining building rules regarding smoking. This rule imposes nearly all of the responsibility on the landlord (employer with control over the building systems) to establish the IAQ compliance program and to assure compliance. Confusion may also arise as to the responsibilities in triple net commercial leases.

In addition, keep in mind that this regulation will not change the contractual relationship between the tenant and owner in the lease. A property owner should not be held liable for the failure of a tenant or employer to implement the ban, provided that the landlord/property manager established an ETS and IAQ system in good faith.

6. Forced Monitoring of IAQ Complaints
Forced monitoring of IAQ-related illnesses/complaints encourages bogus claims to hold the owner hostage to high absenteeism, suits and unnecessary investigations and paperwork. Property owners may be forced to pay the cost of "IAQ-related" claims for employees when in fact their illness was contracted at home or is stress/lifestyle-related.

7. Incomplete Findings
This ruling fails to provide substantial scientific evidence to support its findings, and frequently presents conflicting statements. For example, HVAC's Standard 62-1989 guidance document specifying minimum outside ventilation rates does not include explanation to support the standard and is admittedly based more on sensory comfort than ETS control.

IREM and the NATIONAL ASSOCIATION OF REALTORS® are currently researching significant issues which need to be addressed in determining the feasibility of this proposed rulemaking.

8. Relative Humidity Standard
This ruling's requirement that buildings maintain a relative humidity (RH) below 60% may be difficult for owners of buildings to maintain in extreme temperature climates. Buildings in dry ambient environments may require more than 60% RH to maintain acceptable comfort levels. While buildings in the hot and humid southeast will be required to bring in 20% more humid ambient air, many properties simply don't have the cooling capacity to dry that much fresh air out. Buildings which require more water for their cooling systems in order to meet this compliance standard could increase susceptibility of tenants to Legionnaire's Disease and harmful bacteria from molds and spores which commonly originate in HVAC duct systems.

9. 24-Hour Advance Notification
The requirement of a 24-hour advance notification to employees of work to be performed that may introduce potential air contaminants to the work area needs to be clearly defined. Daily, employees are repeatedly exposed to potential air contaminants, through janitorial maintenance, introduction of new furniture and commonly used effluents. It is highly unlikely and impractical to expect tenants to give notice to building managers for introduction of these materials on an ongoing basis.
Unless this issue is more specifically addressed, this rule would be a waste of human effort, money and time, and would encourage paranoia in the workplace.

10. "Designated Person"
The "designated person" in this ruling is not clearly defined or warranted. Since he or she is required to oversee the establishment and implementation of the IAQ compliance program and building systems inspection, as well as maintenance activities, the "designated person" must possess the relevant technical expertise. Since the rule requires the HVAC system be operating during every workshift, the "designated person" will be required for three shifts per day in many buildings. OSHA should clarify and relax this requirement.

11. Written IAQ Compliance Programs
OSHA proposes that employers develop a written IAQ compliance program, including extensive information on the building's systems, their operations and maintenance, yet gives no guidance or research information to guide them. They assume that an employer can implement the necessary controls and measures -- including the operation and maintenance of building systems, to achieve compliance.

12. Identification of IAQ-Degrading Industries and Contaminants
This proposed ruling fails to address specific industries and substances which could ultimately be responsible for some IAQ-related illnesses. OSHA focuses on HVAC systems as the main cause of IAQ problems and ignores other source contaminants. In effect, the proposed ruling places the burden on building owners to dilute rather than prevent contamination. Many assessments of IAQ pollution sources are also found to originate in the construction or renovation of buildings.
Our review of NIOSH studies support that a majority of "IAQ-related" complaints are related to thermal comfort. While important to tenant satisfaction, thermal comfort should be exclusively omitted from any definition of air contaminants or degrading factors of IAQ. No regulation should be enacted until there is a validated product risk.

13. Sufficiency of Currently Enacted Regulations
IREM disagrees with this proposed ruling's implication that the only way to ensure compliance to IAQ standards is through punitive measures as incentives. The fear of punishment with the overburden of compliance measures will eventually deteriorate the respect and cooperation OSHA currently receives from property owners.

This proposal's own findings indicate that, at the very least, 70 percent of property owners and managers are complying with IAQ standards, proving the majority of buildings meet satisfactory IAQ compliance. This is strong evidence that current government and self-regulation are highly successful.
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Appendix IV: Premises Security Standards
December, 1995
Background:
The American Society for Testing and Materials (ASTM) proposed the Nation-Wide Security Standards for Real Estate Premises Liability. Out of respect for the regulatory and financial welfare of property owners and managers across the country and in light of the below concerns, IREM sent ASTM a letter stating that the Institute does not support this proposed national security standard. ASTM has since voted to disband the F12.20 Premises Security Subcommittee.

Subsequently, the National Fire Protection Association (NFPA) has stated its plan to develop a security standard committee. IREM sent a similar letter to NFPA expressing the Institute's concerns with the creation of a security standard committee which may only negatively impact the property manager/owner industry as a result of any future standards proposed by this committee. In these letters, IREM expressed its belief that these premises liability standards, if adopted, could cause great harm to all building owners due to the following reasons:

1. "One Size Does Not Fit All"
These standards fail to address the unique needs of various properties, with changing demographics, tenant profiles, customs, property history and composition in different geographical areas. For instance, suburban areas and farmlands are normally less dangerous than inner-city habitats, which require more stringent security guidelines.

2. Increasing Litigations
Drafting national security standards would make property owners and managers vulnerable to numerous potential lawsuits and litigation by creating a broad liability standard. National standards will equip plaintiff attorneys with the ammunition that variance from such standards is negligence and therefore, the owner/manager is undoubtedly liable for tenant or third-party behavior on the premises.

Stringent inspection standards for security equipment should instead be set by the equipment manufacturers, either quarterly or biannually, as they dictate. Local inspection requirements should be second in priority to manufacturer requirements, and ASTM requirements should be last.

Some stringent requirements proposed in your (ASTM's) draft model, such as cumbersome documentation requirements, would be overbearing for properties located in areas with minimal crime rates, subjecting many property owners/managers to yardstick standards by with which plaintiff attorneys can more easily sue and recover millions for third-party crimes.
Furthermore, this proposed standard appears to be self-serving for those attorneys who represent the tenants in such lawsuits and therefore stand to gain immeasurable awards from the inevitably increasing number of lawsuits.

3. False Sense of Security for Tenants
This proposed standard would only "band-aid" the symptoms of America's crime problem on building premises, as it fails to address the problem of crime itself. Typical crime is people, not building, oriented. Regardless of the measures taken to contain crime, the behavior of tenants and intruders cannot be controlled. Tenants who "feel safer" with the knowledge of stricter security measures on their premises may subject themselves to unexpected criminal activity which is bound to penetrate this "safe" facade.

IREM is taking active measures to combat crime by supporting President Clinton's recently enacted Crime Bill, which includes a waiting period for the purchase of guns and an increase in penalties for gun offenses, an increase in the police force and reforms in habeas corpus procedures and expansion of crimes eligible for the death penalty, to name a few. IREM believes that property owners/managers have an obligation to provide an environment, as safe as reasonably possible, for a property's residents, customers, employees, guests and tenants. In addition, property managers are responsible to owners for the reasonable protection of the property's physical assets.

4. Education
Education, not regulatory overkill, is the most effective means of preparing property owners/managers in the war against crime on their premises. IREM has taken a pro-active approach in combatting crime through the promotion of its Safety Management Alliance of Residents and Tenants (SMART) Partners Program. Introduced in January of this year, this program provides real estate managers with the necessary tools to motivate and educate residents and tenants to implement their own safety awareness programs.

The core component of this program is a one-day seminar, "Implementing a SMART Partners Program," sponsored by local IREM chapters in many different locations across the country. The program kit includes a guide for organizing an IREM SMART Partners Watch, window stickers and stand-up cards, and tip sheets for safety awareness and crime prevention. IREM publishes "IREM SMART Partners Program: Better Properties Through Stronger Communities," a publication used as the seminar textbook which covers subjects such as why security is good business, procedures for carefully screening residents and tenants, enhancing safety awareness on the property and the threats of drugs and gangs.

IREM also publishes a comprehensive "Emergency Procedures: Before Disaster Strikes" Manual. This manual addresses extensively the various environmental and man-made disasters, including crime, which occur on all property types and prepares property owners/managers with vital knowledge to prevent, respond to and minimize the hazardous effects of disasters on tenants and properties.

5. Suggested Alternatives
IREM believes that, due to the contrasting profiles of each property and its geographical/demographic environments, state and local statutes will be more effective in addressing the particular needs of properties and tenants. The statutes should be carefully drafted, very clear and contain counterbalancing benefits for the building owner. These statutes will not only encourage compliance, but will also recognize the intricate security needs of local properties as they apply to their geographical/social environments.

6. Need for Adequate Research
IREM encourages ASTM to conduct further research into the applicability and effectiveness of drafting a national standard as it relates to the diverse needs of properties and the effect of standards on actually reducing crime.

7. Increased Insurance Premiums
The adoption of a national standard will ultimately give way to an avalanche of increased insurance premiums for property owners/managers. The stringent requirements will inevitably result in increased violations and subsequent lawsuits by tenants and third-party plaintiffs. Clearly, this will result in skyrocketing insurance claims for property damage and lawsuits, especially in states without tort reform laws. Insurance premiums will ultimately soar to accommodate the increased demand for judgements and higher attorneys' fees.
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Appendix V: ANSI Standard A39 Safety Requirements for Window Cleaning
December, 1995
Background:
IREM aims high in endorsing safe and cost-efficient maintenance of buildings and building amenities and encourages vendors and contracted services to employ the utmost precaution in their window cleaning activities. IREM contacted the American Society of Mechanical Engineers in response to its proposed ANSI Standard A39, entitled Safety Requirements for Window Cleaning stating IREM members' opposition of passage of this standard based on the following concerns:

1. The Right for Free Choice of Window Cleaning Procedures
Window cleaning vendors and contractors, not the government or voluntary guidelines, should research and choose the window cleaning equipment of their choice. It is not practical to restrict flexibility of vendors or property owners, as long as the current risk involved remains reasonable.

Such a standard should ultimately aim to clean windows, providing the service is performed in a manner proven safe by a company competent to assess the building's needs. Boatswains chairs are endorsed by many window cleaning vendors as more flexible, easier to use and more cost efficient than the bulkier power scaffolds. As long as the ultimate service is achieved in a measure with proven low-risk, this service should not be regulated.

2. Liability Should Rest on Contract Vendors, Not Property Managers
Making building owners responsible for having a written plan, procedure or scheme for cleaning the building's windows puts the burden of liability squarely on building owners, as opposed to the window cleaning companies they hire. Window cleaning vendors, not owners, are more qualified to write these plans based on their occupational expertise. Owners should not be legally and regulatory liable for the measures vendors use to clean windows; nor should they be required to provide window cleaning equipment when the vendors actually perform the work. Like other service contractors, vendors should be liable for their own equipment and safety precautions.

Placing responsibility on the property owners may subject them to future lawsuits if the standard passes, based on failure to adapt to "safer" conditions. There is always the possibility with this standard to shift from voluntary to regulatory compliance in the future.

3. Additional Cost and Architectural Burden for Building Designs
The use of power mechanisms limits building designs. Powered scaffolds will have a profound impact on architects to freely design attractive and innovative buildings. The use of powered scaffolds will not only increase the cost of building construction to accommodate the devices; it will also increase operating costs because powered devices generally require two persons for safe operation.

4. ANSI Standard is Not Research-Backed; Current Equipment Not Proven Unsafe
No changes in window cleaning equipment requirements should be implemented unless they are justified by research and the replaced equipment is deemed unsafe or ineffective. Neither safety nor performance has been evaluated in-depth to prove that manual seatboards/boatswains chairs, swinging scaffolds and "descent control devices" are unsafe, especially since the Occupational Safety and Health Administration (OSHA) has already condoned this equipment as safe and permissible. No statistical data (higher risk, higher fatality rates) have been presented to justify the use of powered scaffolds over the above manual equipment.

5. No Proven Need for this Standard
As there does not appear to be any industry need for ANSI A39, IREM concludes that the motives behind this standard are fully self-serving by the power equipment industry. The Institute believes that ANSI A39 is another unjustified attempt by vendor industries to thrust increasing liability on property owners for the responsibilities of their trade.
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Appendix VI: ASHRAE Standard 62-89 Ventilation for Acceptable Indoor Air Quality

Background:
The ASHRAE Standard 62.1 is now updated by ASHRAE on a regular basis according to the organization’s continuous maintenance procedures.  The purpose of the standard has consistently been to specify minimum ventilation rates and other measures intended to provide indoor air quality that is acceptable to human occupants and that minimizes adverse health effects.  However, ASHRAE’s means of achieving its goal have developed over the years.

The latest version of the standard, published in 2007, includes changes that impact ventilation system designers and their designs.  It defines requirements for ventilation and air-cleaning system design, installation, commissioning, and operation and maintenance.  All spaces intended for human occupancy are covered by the standard, except those within single-family houses and multifamily structures of three stories or less above grade.  Additional requirements for industrial, health care, and other spaces may be dictated by workplace and other standards.  The scope of the standard states that the provisions are not intended to be applied retroactively when the standard is used as a mandatory regulation or code.

IREM Position:
The members of IREM are committed to the maintenance of the health and safety of all occupants in buildings. We believe that the property managers are maintaining a high standard of indoor air quality compliance with the incentives already in place through current government and market influences.

The Indoor Air Quality Sub-Committee of the Legislative and Public Policy Committee reviewed the Standard and expressed the following concerns:

1. Because the standard is very technical in nature, a real estate manager who does not have a technical background would need to hire a licensed professional engineer to make an analysis for each building. 
2. The standard’s references to biological contaminants led members to ask if the standard takes into account factors outside of the building owner or manager’s control, such as a tenant’s plants or perfume.     
3. The standard defines acceptable indoor air quality as “air in which there are no known contaminants at harmful concentrations as determined by cognizant authorities and with which a substantial majority (80% or more) of the people exposed do not express dissatisfaction.”  If an 80% affected occupants rule is applied then the contaminants listed in the standard may not come into play in larger buildings, but could still impact smaller buildings. 
4. The frequency of inspections is also of concern to members.  The standard states that “the ventilation system shall be operated and maintained at a minimum in accordance with the provisions of this standard.”  More specifically it provides that “ventilation system design, operation, and maintenance shall be reevaluated when changes in building use or occupancy category, significant building alterations, significant changes in occupancy design, or other changes inconsistent with the system design assumptions are made.”  
5. Maintenance requirements in the standard are such that a one-time review would most likely be inadequate for compliance. Many of these maintenance issues are neither realistic nor acceptable and are indicative of excessive regulation.  For example, if a member was to maintain an Operations and Maintenance Manual with all of the documents suggested by ASHRAE, the member would be responsible for an unnecessarily extensive documentation system.
6. ASHRAE has not demonstrated that health problems or complaints are a result of a lack of proper maintenance procedures in buildings nor are AHSRAE's standards based on scientific findings.
7. The standard does not recognize differences in climate variations across the country. 

Complying with the standard may be cost prohibitive. ASHRAE's standards may increase cost of new construction significantly, as well as compliance costs in present buildings. Therefore, these standards may not be suitable or realistic for all building types or sizes.
(11/96, updated 10/08)

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Appendix VII: Guidelines for the Use of Human Models in Advertising
The Federal Fair Housing Act of 1988 is designed to protect the rights of individuals from discrimination in housing. The Fair Housing Act makes it unlawful "to make, print, or publish any notice, statement, or advertisement, with respect to the sale or rental of a dwelling that indicates any preference, limitation or discrimination because of race, color, religion, sex, handicap, familial status, or national origin...".

Any advertising that uses human models to suggest lifestyle, through the use of an illustration, photo, or through any other reproductive means, requires reasonable representation of both majority and minority racial groups. Adequate representation of families with children and both sexes is encouraged and should be complementary of the entire area, not a specific target market. The advertisement will need to illustrate impartiality with regard to each model portrayed in the display, which in turn suggests to any interested party they have a free choice in housing.

The Institute has had a long-standing interest in fair housing and remains committed to the letter and spirit of the Federal Fair Housing Act. Our greatest concern is that people are able to choose freely, without interference, where they will live without the constraint of prejudice or discrimination. We urge our members to support these guidelines and advance our position throughout the property management industry and within our respective communities.

According to HUD, the following words, phrases and symbols may convey a discriminatory intent and should be avoided in housing advertisements. In January 1995, HUD issued a memo to provide additional guidance "on the procedures for the acceptance and investigations of allegations of discrimination under Section 804 (c) of the Fair Housing Act involving the publication of real estate advertisements."

Examples of words descriptive of dwelling, landlord, and tenants:
White private home
Hispanic residence
Adult building

Examples of words indicative of race, color, religion, sex, handicap, familial status or national origin:
Race: Black, Caucasian, Oriental, Hispanic, American Indian
Color: white, black, colored
Religion: Protestant, Catholic, Christian, Jew
National Origin: Mexican American, Puerto Rican, Chinese, Italian, Irish, Latino, Polish
Sex: male only, female only or the exclusive use of any other words in advertisements, including those involving the rental of separate units in a single or multi-family dwelling, stating or tending to imply that the housing being advertised is available to persons only of one sex and not the other
Handicap: crippled, blind, deaf, mentally ill, impaired, physically fit
Familial Status: adults, children, singles, mature persons

The following are some of the preferred examples for the above:
Handicapped persons given priority
Housing for mentally challenged
Apartment with wheelchair ramp on first floor
Community with special programs for the emotionally challenged
Beautiful, prestigious community
Resort community
Distinguished homes/Regal residence
Exquisite wooded setting
Estate homes
Luxurious apartments
Custom features

The following are some of the questionable examples of above:
Prefer bright, healthy person to share apartment
Ideal community for physically fit persons
No persons infected with AIDS need apply
Prefer articulate roommate
Integrated neighborhood
Private community
Condominium owners restricted to those approved by board

Any symbols or logotypes which imply or suggest race, color, religion, sex, handicap, familial status or national origin

Any words or phrases used regionally or locally which imply or suggest race, color, religion sex, handicap, familial status or national origin.

Directions to real estate for sale or rent (use of maps or written instructions):
Any reference to real estate location made in terms of racial or national origin, significant landmarks such as an existing black development (signal to blacks), or an existing development known for its inclusion of minorities (signal to whites), should not be used. The advertisement also should not contain specific directions which refer to a synagogue, congregation, parish or any other racial or national origin. These words may indicate that the landlord or owner of a dwelling has a particular preference based on race, national origin or religion.

Examples: Preferred
North from the Beltway, right on Connecticut Avenue
Past the Library of Congress
From Jackson Street, right on Auburn Avenue
I-95 South to Sterling Road

Examples: Questionable
Take the Beltway to Exit 33 at the Mormon Temple
Past the Martin Luther King Jr. Memorial
Located near Ebenezer Baptist Church
I-95 South to Seminole Indian Reservation

Area (location) description:
Name of facilities which cater to a particular racial, national origin, or religious group such as country club or private school designations, or names of facilities which are used exclusively by one sex, should not be used to describe an area.

Example: This community is located in the country-club neighborhood of Spring Gardens (permissible only if the Spring Gardens Country Club is open to all persons regardless of race, national origin or religion). * (®1991, ®1993 Newspaper Association of America, Reprinted 1993)
(11/93, updated 10/08)

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Appendix VIII: Housing for the Elderly
June, 1988
In the United States, each day 5,000 persons reach their 65th birthday, resulting in a net gain every year of more than 500,000 senior citizens. In the last two decades, the over-65 population increased twice as fast as the rest of the population. While over one-fifth of Americans were 55 years of age or older in 1982, this group is expected to grow at a rate of 113% between now and the year 2050, according to the U.S. Bureau of the Census.

Through the normal course of economic and social change and attrition, these individuals are often left without family and/or with substantially reduced family support (both financially and emotionally). The once-common extended family, wherein adult children and parents frequently resided together has neared extinction, due to greater life expectancy, greater mobility and a general feeling for independence.

With respect to housing, the needs and living conditions of many of this nation's elderly have changed as they have aged. For many elderly, their present (or near future) housing situation may no longer be suitable for their particular needs. Older persons should not be viewed as a homogeneous group, as they represent a wide range of income levels, health and functional impairment needs, living arrangements, personal preferences, and so forth. Nevertheless, there are several characteristics of the elderly which distinguish them as a group from the population as a whole: (1) income, (2) health and functional impairment, and (3) living pattern.

From a public policy standpoint, it is up to the community to determine the types of housing that is best suited to the needs of its respective population. Many groups have addressed this issue but not necessarily from the property management viewpoint. IREM advocates that the issues be addressed at the management level in conjunction with private and public agencies and interest groups. Members of the Institute of Real Estate Management recognize this significant need and to address the special requirements and necessity for provision of viable methods of meeting the support services that many elderly require. Further, we encourage the federal government to understand the problems of the elderly. It is not IREM's desire to promote the creation of more federal programs but rather to encourage better ways of dealing with the problems for the elderly in need of assistance.

Unfortunately, there is no clear definition of just what constitutes alternative living arrangements for the elderly. Generally they represent a range of semi-independent living arrangements that are targeted to fill the gap between independent living for older residents and dependent care. There is also no consensus on either terminology used or a systematic approach in classification of alternatives. However, most of the options are usually based upon the level of support services available as part of the living arrangement.

"A Guide to the Design and Development of Housing for the Elderly," published by the New England Non-Profit Housing Development Corporation lists the various types of alternative housing where an older person might reside. This is a graduated list based on level of dependence:

• single family house
• mobile home
• apartment house
• public housing
• retirement community
• boarding house
• residence with relatives
• retirement hotel
• home for the aged
• community residence
• congregate housing
• county home
• intermediate care housing
• nursing home
• hospital

The basic concerns in providing and managing housing for the elderly are costs, support services and the physical unit itself. Studies indicate that among the elderly who live in non-care housing, the features that were the most important in the choice of housing related to cost/energy efficiency, decent and ample living space.

Those who manage housing for the elderly already know that these needs are not particularly unique to the elderly. Elderly residents want and expect to be treated just like any other tenant. Dividing the above types of housing into care levels (based on required professional support services) might look like this:

• Level I - Consisting totally of persons who utilize limited social programs, require no health care services and desire units conventionally furnished and serviced.
• Level II - Consisting of minimal assistance with daily housekeeping, status checks, and meal options provided by "paraprofessionals" or aides.
• Level III - Consisting of professionally provided services such as regular meals, housekeeping, personal and medical care and recreational activities.

Occupants residing in elderly housing developments might live very independently, if tenancy begins at a conventional retirement age. However, regardless of the type of living arrangement -- independent, semi-dependent, or dependent -- the residents continue to age and the level of personal care, meals and housekeeping support services that are required increase drastically. Problems associated with the residents' aging in place are the greatest concern for the effective/efficient management of all housing for the elderly.

Members of the Institute of Real Estate Management feel there is a need to create support systems for those requiring extended care, thus permitting continued semi-independent living. Our primary goal in serving the elderly population is to be able to provide methods of integrating the basic need services for groups within a single complex or neighborhood while at the same time preserving the safety, dignity and greatest possible degree of independence for these individuals.

It is imperative that federally funded/assisted housing programs consider the need for professional and non-professional support personnel and additional services for the elderly in appropriating funds for such housing. It is equally important to provide such services at reasonable costs in privately funded complexes and/or programs which could, in the long run, take some of the stress off public programs resulting in realistic cost savings for both public and private housing alternatives for the elderly.
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