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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


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