National Apartment Association Education Institute
Certified Apartment Property Supervisor
LEGAL RESPONSIBILITIES AND RISK
MANAGEMENT
HOUSEKEEPING
 Restrooms
 Breaks
 Lunch
 Cellular
Phones
 Smoking
2
INTRODUCTIONS
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Name
Company
Number of Units
How Many Years In the
Business
Two sentences about
what you think about Law
and Risk in your job
3
GROUND RULES
Participate
fully.
Help
us stay on track.
Have
fun.
4
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Apartment Communities and the Law
Hiring Employees Lawfully
Establishing Workplace Guidelines
Counseling, Disciplining, and
Terminating Employees
Ensuring Workplace Health and Safety
Observing Rental Laws
Maintaining Habitable Properties
Working with Contractors and
Contracts
Managing Risk
Current Legal Trends
LEARNING OUTCOMES: LEGAL RESPONSIBILITIES AND RISK
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2. APARTMENT COMMUNITIES AND THE LAW
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LAWS AND LEGAL OBLIGATIONS
Laws exist to protect people’s rights. As a multiproperty supervisor, you need to be aware of
those rights for employees and residents—and
see that the community management teams
comply with the rule and the spirit of the law.
 Failure to follow local, state, and federal laws
can potentially put the company and the
properties into serious legal jeopardy.
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FAIR CREDIT REPORTING ACT (FCRA)

When conducting background checks on
employees or applicants, you must notify them and
get their permission to obtain a credit report.

If the employee or applicant is not hired based on
something in his or her report, you must provide


the contact information for the Credit Reporting Agency,
and
a Statement of FCRA Rights
8
FAIR AND ACCURATE CREDIT TRANSACTION ACT
(FACTA)
Extends the FCRA
 Addresses consumer
concerns about identity
theft
 Addresses in more depth
the procedure for
inaccuracies in consumer
reports
 Gives the consumer the
right to restrict how
businesses use their nonpublic personal information
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TITLE VII OF THE CIVIL RIGHTS ACT OF 1964,
AS AMENDED
In all stages of employment
you may not discriminate
based on:
Race
 Color
 Religion
 Sex
 National origin
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10
AGE DISCRIMINATION IN EMPLOYMENT ACT
(ADEA)
Prohibits
employment
discrimination to
applicants or
employees who are
40 or older
 Applies to
employers with 20
or more employees
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TITLE I OF THE AMERICANS WITH
DISABILITIES ACT (ADA)
Prohibits employment
discrimination against
disabled applicants or
employees who can
perform the essential
functions of the job, with
or without reasonable
accommodation
 Applies to employers with
15 or more employees
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FAIR LABOR STANDARDS ACT (FLSA)
Sets requirements for minimum wage and
overtime eligibility
 Regulates child labor
 Applies to employers with 2 or more
employees
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13
EQUAL PAY ACT
Requires employers
to pay equal wages to
male and female
employees who
perform similar work
(equal skill, effort,
responsibility)
 Applies to employers
with 2 or more
employees

14
FAMILY MEDICAL LEAVE ACT (FMLA)

Requires employers to
grant up to 12 weeks of
unpaid leave during a
12-month period for:
Birth or adoption
 Employee’s serious
health condition
 To care for a parent,
spouse, or child with a
serious health condition

15
OCCUPATIONAL SAFETY AND HEALTH ACT(OSHA)
Requires employers to have a
safety program to protect
employees from hazards
 Requires information to be
accessible to employees
about hazardous materials
they may use
 Requires periodic safety
training
 Requires documentation of
workplace injuries

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IMMIGRATION REFORM AND CONTROL ACT(IRCA)
Prohibits employment discrimination
based on national origin or citizenship
status
 Requires the processing of an I-9 form
to prevent the hiring of illegal aliens
 Applies to employers with 3 or more
employees
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NATIONAL LABOR RELATIONS ACT (NLRA)
Regulates the labor
management
relationship
 Prohibits discrimination
based on union activity
 Applies to private
sector employers that
have an impact on
interstate commerce
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UNIFORMED SERVICES EMPLOYMENT AND
REEMPLOYMENT RIGHTS ACT (USERRA)
Prohibits employment
discrimination because
of an applicant’s or
employee’s military
obligations
 Requires employers to
reinstate employees to
their former jobs after
honorably completing
military duty

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JURY SYSTEMS IMPROVEMENT ACT

Prohibits an employer from disciplining or
terminating an employee for being called to
serve on a federal jury
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EMPLOYMENT POLYGRAPH PROTECTION ACT
Prohibits employers from requiring
applicants to submit to a polygraph exam
 Applies to private sector employers except:

 Security
firms, and
 Pharmaceutical manufacturers, distributors
and dispensers
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FEDERAL POSTING REQUIREMENTS

Notices about federal laws
must be posted where
employees can see them
such as:




Near time clocks
In break rooms
In designated department
locations
Some states require notices
to be in more than one
language (e.g., Spanish) so
be aware of your state’s
requirement.
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WHAT IS NEGLIGENCE?

Management
was legally responsible for the “control area”
 failed to repair the “system and/or property damage” or
a problem that caused the injury.
 knew or should have known that an accident was likely
to happen in the area.
 could have sharply reduced the chances of an accident
with reasonable attention to the maintenance or repair
problem.

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Negligence is governed by Common Law
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ACTIVITY: WHAT IS YOUR EXPERIENCE?
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3. HIRING EMPLOYEES LAWFULLY
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JOB DESCRIPTIONS
List core tasks and accountabilities for the job.
 Maintain objectivity and provide a useful
standard by which to fairly evaluate all
candidates who apply.
 Strong legal defense tool
 Resources for writing job descriptions:

 www.naahq.org
 www.shrm.org
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BACKGROUND CHECKS
References
 Credit Checks
 Driving Records
 Criminal History
 Employment Eligibility (Legal to Work in the United
States)
 Skills Testing
 Drug Testing (after conditional offer)
 Medical Exams (after conditional offer)
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CONTACTING PAST EMPLOYERS
Offer to send the applicant’s signed consent to
a full disclosure of employment information
 Typical Questions:

 What
are the applicant’s greatest strengths?
 What are his or her greatest opportunities?
 Would you hire this person again?

Confirm salary, title, dates of employment
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INTERVIEWING
Prepare questions in advance
 Use only acceptable questions!
 Ask all applicants the same questions (use of
an interview guide is recommended)
 Ask only job related questions
 Keep application forms and employment
records for at least one year
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WHEN EXTENDING CONDITIONAL OFFERS,
Restate the “at will” employment relationship.
 Give a written list of job duties.
 Give a written offer of pay and benefits.
 Refer to the employee handbook that includes
company policies.
 Provide a document for the employee to sign
and accept the job offer.
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“AT WILL” MEANS…
The employee works at the will of the employer.
 The employer can terminate the employee at
any time for any reason, or for no reason at all
(but not for discriminatory reasons).
 The employee is free to quit at any time.
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ACTIVITY: WHAT IS YOUR EXPERIENCE WITH
HIRING EMPLOYEES?
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4. ESTABLISHING WORKPLACE GUIDELINES
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COMPLYING WITH FLSA
Minimum Wage – know the current federal and
state minimum wage
 Overtime - Covered non-exempt employees
must receive overtime pay for all hours worked
in excess of 40 hours per week
 Recordkeeping –

 Keep
employee time and pay records.
 Display posters outlining the requirements of the
FLSA - federal and state labor posters as well.
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ESTABLISHING CLEAR AND LEGAL RULES
Setting High Standards
 Maintaining a Drug-Free Workplace
 Maintaining a Harassment-Free Workplace
 Use an Employee Handbook to Further Outline
These Policies
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SUGGESTED EMPLOYEE HANDBOOK TOPICS
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Introduction
Hours
Pay and Salaries
Benefits
Drug and Alcohol Abuse
Harassment
Attendance
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Discipline
Employee Safety
Smoking
Complaints
Workplace civility
Conduct not covered by
the handbook
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NEW EMPLOYEE ORIENTATION
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Company culture and
history
How the company (or
apartment community) is
organized, in terms of work
teams and functions
Workplace rules
Health and safety rules
Pay and benefits
Work schedules
And anything else relevant
to working in the
community
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WHY CONDUCT PERFORMANCE REVIEWS?
Employees will know what you expect of them and
will receive feedback on their work.
 You can recognize and reward good employees
 You can identify and coach workers who are
having trouble.
 You will stay in touch with the needs, concerns,
and problems of employees.
 You can identify potential problems earlier.
 Performance reviews can help keep future legal
problems to a minimum by helping track and
document employee issues.
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ACTIVITY: DISCUSS EXPERIENCES WITH
WORKPLACE RULES
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5. COUNSELING, DISCIPLINING, & TERMINATING
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TOPICS TO INCLUDE IN A COUNSELING MEETING
Your expectations of how the job should be
performed
 How the employee is currently performing
 Critical element(s) where the employee is
failing or falling short
 What the employee must do to bring
performance to an acceptable level
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SAMPLE PROGRESSIVE DISCIPLINE
First Violation – Verbal Warning
Second Violation – Written Warning
Third Violation – Suspension or Probation
Fourth Violation - Termination
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SEVEN STEPS - DISCIPLINING EMPLOYEES
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TERMINATING EMPLOYEES
Provide a private office or area.
 Include a peer as a witness to the meeting.
 Have the final paycheck prepared in advance,
including any benefits, vacation, or severance pay
if required by state law.
 Keep accurate and detailed documentation of the
termination meeting.
 Represent the company in a professional, ethical,
and honest manner.
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ACTIVITY: DISCUSS YOUR EXPERIENCE WITH
COUNSELING AND TERMINATING EMPLOYEES
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6. ENSURING WORKPLACE HEALTH AND SAFETY
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HAZARD COMMUNICATION STANDARD
This protocol must
educate employees on:

Hazardous chemicals
they work with

How to use them
properly

How to avoid potential
accidents or injuries
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HAZARD COMMUNICATION STANDARD
COMPLIANCE
Hazard Evaluation
• Labeling
• Material Safety
Data Sheets
(MSDS)
• Written Plan
• Training Programs
•
MSDS
Material Safety Data SheetsIdentification
Hazardous Ingredients or
Components
Physical and Chemicals
Characteristics
Fire and Explosion Hazard
Reactivity Data
Health Hazard Data
Spill or Leak Procedures
Special Protection
Special Precautions
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LOCKOUT/TAGOUT PROCEDURES
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Must be a written procedure
Must be accessible to
employees at all times
Must establish contractor
responsibilities
Must establish annual auditing
procedures
Must establish an inventory of
hazardous energy sources and
procedures to de-energize
them
Must provide for training and
retraining
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POTENTIAL HAZARDOUS ENERGY SOURCES
Electrical
Hydraulic
Pneumatic
Chemical
Mechanical
Thermal
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BLOODBORNE PATHOGEN STANDARD
OSHA’s exposure control
program for dealing with the
control of bloodborne pathogens
in the workplace, including
Hepatitis B Virus (HBV) and the
Human Immune Deficiency Virus
(HIV)
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EXPOSURE CONTROL PLAN
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Must be written
Must include
exposure
determination
Must have procedure
for post exposure
evaluation and followup
Must be trained to
employees
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Personal Protective Equipment
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PERSONAL PROTECTIVE EQUIPMENT
OSHA requires the use of
Personal Protective
Equipment (PPE) to reduce
exposure to hazards in the
workplace.
Items such as:
Goggles
& Safety Glasses
Gloves & Foot Protection
Hearing Protection
Respirators & Dust Masks
Personal Fall Protection
Aprons
Hard Hats and Face Shields
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ELECTRICAL SAFETY TRAINING PROGRAM
Employers must have a written training
program for employees who perform electrical
service and maintenance on the property,
including those who assist with the work.
This includes minor electrical repair and
maintenance tasks, such as changing ballasts
in overhead lights or replacing simple
switches.
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OSHA INSPECTIONS
OSHA Can:
 Inspect and investigate any facility, equipment,
and records mandated by the regulations
 Interview and observe personnel
 Observe areas that aren’t covered by the
employer’s consent or the inspection.
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OSHA RECORDKEEPING
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Injury and illness records
for the past five years.
All written programs
outlined.
OSHA Form 300A posted
annually.
OSHA poster displayed.
Documentation of all
training and written
assessments.
Medical and exposure
records.
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EMPLOYEE SAFETY BEYOND THE LAW
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Speedy deposit of checks and
money orders
“No Cash Accepted” sign in the
rental office.
Review personal safety policies
and procedures at staff
meetings.
Use cell phones, walkie-talkies,
or a two-way radio system to
stay in contact with the office
or other staff members.
Keep the entrance to an
apartment home open during
a showing.
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Bring someone along when
showing an apartment late in
the business day or when dark.
Carry a small alarm device, such
as a whistle or clip-on siren.
Work on empty apartments only
during the day unless
accompanied by someone else.
When the resident is not home,
lock the apartment while
performing maintenance or
repairs. Do the same in vacant
apartments.
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ACTIVITY: DISCUSS YOUR EXPERIENCE WITH
EMPLOYEE SAFETY
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7. OBSERVING RENTAL LAWS
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RENTAL LAWS AFFECTING MULTIFAMILY
Rental Process
Applicable Law(s)
Marketing and Advertising
•
Fair Housing
Consumer Protection
Screening and Applications

Fair Housing
Consumer Protection

Fair Credit

Contract Law
Employment

Fair Housing
Landlord/Tenant Law

Contract Law
Employment

Fair Housing
EPA and OSHA

Lease agreements

Fair Housing
Leases
Maintenance
Termination
Landlord/Tenant Law
62
COMPLYING WITH THE FAIR HOUSING ACT
A fair housing policy that describes its fair housing
practices, including any requirements relating to
occupancy guidelines, income, and credit and
rental histories.
 Include state, county and city compliance laws as
well.
 All policies must be clearly displayed in the
business office
 Training and re-training for all staff members must
occur.
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PROACTIVE FAIR HOUSING

Display Fair Housing posters where they can be
seen easily by prospective renters and
residents.
 The
minimum size required by law is 11” x 14”.
Train employees on the Fair Housing Act when
they begin their employment with the company.
 Provide refresher training on an annual basis.
 Monitor employee compliance by using
“mystery” shoppers.

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RENTING TO PERSONS WITH DIABILITIES
Under the Fair Housing Act, people with
disabilities are promised "equal enjoyment of
housing." That means they can ask for
reasonable modifications and accommodations
to give them equal accessibility to all features
and benefits of the rental community and its
policies.
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WHAT IS A DISABILITY?
According to the Fair Housing Act, an individual
has a disability if he or she has a condition that
substantially limits one or more major life
activities. These conditions include but are not
limited to:
 Physical,
visual, hearing, or mobility impairments
 Alcoholism
 Mental illness
 AIDS or AIDS-related complex
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REASONABLE ACCOMMODATIONS &
MODIFICATIONS
Examples of Reasonable Accommodations
 Allowing a service or therapy animal to live in a
community with a “no pets” policy
 Reminding a person with a developmental disability that
the rent is due the next day
 Providing a sign language interpreter for meeting a
resident who has a hearing impairment
Examples of Reasonable Modifications
 Installing a ramp
 Installing grab bars in the bathroom
 Widening doorways
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MULTIFAMILY HOUSING POST 1991
If your multifamily housing was first occupied
after March 13, 1991, It must comply with these
seven design requirements for new construction:
Wheelchair accessible entrances on an
accessible route
Switches, outlets, and environmental
controls at specific heights
Accessible public and common use
areas
Usable kitchens and bathrooms
Usable doors
Bathroom walls reinforced for grab bar
installation
Accessible routes into and within the
dwelling
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HANDLING EVICTIONS – TYPES OF NOTICE
Pay Rent or Quit
Cure or Quit
Unconditional
Quit
69
ENTERING A RESIDENCE
Emergency Entry
 Entry for Requested Repairs
 Entry for Scheduled Repairs
 Entry for Law Enforcement and Government
Officials
 Official Entry
 Denied Entry
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ACTIVITY: DISCUSS YOUR EXPERIENCE WITH
RENTAL LAWS
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8. MAINTAINING HABITABLE PROPERTIES
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ASSURING QUALITY HABITABILITY
Protect from weather
 Provide working water, heat, air conditioning,
plumbing, electric, and lighting
 Provide adequate waste disposal
 Provide clean and safe common areas
 Provide reasonable protection from hazards and
crime
 Address potential environmental hazards
 Control all other nuisances

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UNDERSTANDING ENVIRONMENTAL SAFETY
Asbestos
Mold
Carbon
Monoxide
Lead
Radon
74
DETERRING CRIME
Be aware of crime in the area
 Work with law enforcement
 Educate residents about safety
 Establish and execute key control procedures
 Stay on top of safety measures
 Inspect regularly – Doors, Locks, Lighting,
Landscaping, etc.
 Conduct background checks on employees

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ACTIVITY: DISCUSS YOUR EXPERIENCE WITH
HABITABILITY LAWS AND ISSUES
76
9. WORKING WITH CONTRACTORS AND
CONTRACTS
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CREATING PROCEDURES FOR SERVICE AND
SUPPLY BIDS
Bid
Requirements
Contract
Termination
Requirements
Contract
Execution
Insurance
Requirements
Detailed
Specifications
of Work
Contract
Award
Notification
Performance
Security
78
SCOPE OF WORK
Detailed
Thorough Compare
79
OBTAINING BIDS FOR CONTRACTED WORK
Pre-Bid Meetings
Specify Bid Documents and Deadline
Verify Bidder Qualifications
Evaluate the Bids
Award the Contract
80
ELEMENTS OF A CONTRACT
Key Information (Parties, Location, Date, etc.)
 Scope of Work
 General Waiver and Release
 Hold Harmless
 Settlement and Release Agreement
 Payment Terms and Penalties
 Signatures and Authorizations
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ACTIVITY: DISCUSS YOUR EXPERIENCES WITH
CONTRACTORS AND CONTRACTS
82
10. MANAGING RISK
83
FIVE STEPS TO DEVELOPING A RISK
MANAGEMENT PROGRAM
Acknowledge and Identify Risks
Evaluate and Prioritize Risks
Decide How to Manage the Risks
Implement a Risk Management Plan
Review, Evaluate, and Adjust the Plan
84
AREAS OF RISK
Legal
Risks
Financial
Risks
Safety
Risks
Fraud
Risks
85
EVALUATING AND PRIORITIZING RISKS
Proximity
Adjacent properties
Weather and geography
Residents
Property arrangement
Property infrastructure
86
IMPLEMENT A PLAN
Loss
Prevention Loss Control
87
FINANCING RISK WITH INSURANCE
Property Insurance
 Liability Insurance
 Vehicle Insurance
 Workers Compensation Insurance
 Professional Insurance
 Self-Insurance – Retention of Risk
 Others?
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TYPES OF INCIDENTS TO REPORT
Auto
 General Liability
 Property Damage
 Workers Compensation
 Crime
 Threats
 ADH or FHA Claims

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REVIEW EVALUATE AND ADJUST
90
MANAGING A CRISIS
Communicating with
Others
 Responding to Crime
 Taking Care of
Resident Relations
 Dealing with the
Media
 Moving to Recovery

91
ACTIVITY: DISCUSS YOUR EXPERIENCES WITH
RISK AND CRISIS MANAGEMENT
92
11. CURRENT LEGAL TRENDS
93
CURRENT LEGAL TRENDS

The Fair Housing Act
 Discrimination
against persons with disabilities
 Non-traditional forms of discrimination
 “Hidden” Forms of Discrimination
 Accessibility
 Source of Income
 Linguistic Profiling
 The Violence Women Act (VAWA)
 Exclusionary Zoning Ordinances
94
CURRENT LEGAL TRENDS

Communications Issues
 Exclusive
Cable Agreements
 Can-Spam Regulations
Residential Green Building Standards
 Non-Smoking Policies
 Freon Recovery and R410a
 ADA Amendments Act of 2010
 LBP Renovators Rule

95
ACTIVITY: DISCUSS YOUR EXPERIENCES WITH
RECENT LEGAL TRENDS
96
12. KEY TAKEAWAYS AND ACTION PLAN
97
•
•
•
•
•
•
•
•
•
•
Apartment Communities and the
Law
Hiring Employees Lawfully
Establishing Workplace Guidelines
Counseling, Disciplining, and
Terminating Employees
Ensuring Workplace Health and
Safety
Observing Rental Laws
Maintaining Habitable Properties
Working with Contractors and
Contracts
Managing Risk
Current Legal Trends
LEARNING OUTCOMES: LEGAL RESPONSIBILITIES AND RISK
98
THE ACTION PLAN
This plan is yours and yours alone
 You decide on the leadership areas you want to
work on
 You set the number of goals
 You decide on the action steps and timeline.

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