January 18, 2001

Memorandum Gives Landloards Ideas On Inspection Program

The Landlords of Manhattan Inc., has produced a memorandum on the Proposed Mandatory Rental Inspection Program, by the City of
Manhattan. Here is the memorandum:

The Landlords of Manhattan, Inc. (LLM) are opposed in concept to current actions by the City of Manhattan to implement a Mandatory
Rental Inspection Program. A Special Rental Housing Inspection Committee appointed by the City Commission is currently studying options
for such a program and appears to be on a fast track to finalize their recommendations for presentation to the City Commission in the very
near future.

Although more than 35 interested citizen taxpayers showed up to participate in a recent January 10th committee meeting, Mayor Karen
McCulloh, the moderator for the committee, refused any public input, citing that she had been advised not to(even though at earlier meetings
where very few citizens were present, she had allowed input and discussion). She advised citizens at the meeting that "public" input can be
made when the committee’s recommendation is presented to the city commission. Problem with that process is that average citizens (in this
case landlords) get into the act very late in the political process with no influence on the product that is first presented to commissioners.

The next committee meeting is January 24th (Wednesday). I strongly encourage your attendance. I would expect the moderator to again deny
the public’s input. However, at minimum, we need to send a clear message that we are interested in this matter regardless of the mayor’s
previous comments. Phone calls to our city commissioners, including Mayor McCulloh, indicating your concerns are appropriate. Invite
other landlords to the meeting so they too can be updated on what is happening.

The actions and focus of the city’s committee to date is cause for LLM concern. There is obvious bias and appearance that an agenda is in
place to implement an inspection program.....without what we consider adequate review or due consideration of many critical factors. To date,
our concerns and input to the committee hasn’t shown up in the committee minutes, so the impression is that the committee has total
consensus in favor of a mandatory inspection program, we assure you, this is not the case. Several of the key un-considered factors include:

[1] Data is lacking to justify establishment of such a program; data that is available may be inaccurate, misinterpreted or misrepresented.

[2] Allegations of a major or significant "problem" within the city is neither documented nor substantiated; but yet, if ‘the problem’ is so
obvious and known, then city authorities perhaps lax in enforcement and follow-up.

[3] If issue were to be properly reviewed, the ‘Problem’ may be found to be significantly tenant based; yet as proposed, ‘solution’
(mandatory inspections) focuses solely on landlord and is very taxpayer burdened (fees plus your time).

[4] No evidence that code inspection decreases risk of ‘problem’.

[5] Multiple, duplicated and adequate programs already exist in the city and work

Very well. So why is there a need for yet another program?

[6] We fear overly optimistic and underestimated cost projections - all of which will be ultimately funded by citizen taxpayers and renters who
occupy the estimated 11-12,000 rental units within the city.

[7] Inequity will possibly exist - it is obvious that not all city residences would be equally inspected, or some by varying standards.

[8] That simpler, more effective, actions and/or alternatives may be available that achieves similar or better results at significantly less cost
than the proposed inspection program.

LLM solicits your personal attention and effort to defeat any implementation of a Mandatory Rental Inspection Program as currently is being
discussed by the city. Your assistance could include the following:

* Be a landlord advocate and ombudsman for our concerns. Be a community "mover and shaker" for landlord issues during this campaign -
Talk it up!

* Express your ideas and thoughts to the LLM board to help develop and implement a pro-active, positive campaign of information to the
community.

* Promote/discuss LLM issues and concerns at public meetings and events.

* Seek & identify individuals within the community, discuss concerns with friends/neighbors/organizations of influence and recommend they
voice their concern to commission members.

* Actively seek media opportunities for LLM issues and concerns. This could include local radio call-in programs and writing letters to the
editor.

* Select and encourage city commissioners who support your views.

* Where possible share in the cost of our effort.

* Don’t linger! or it will be in place with no input from you.

Please find at enclosure LLM additional basis for opposition to a mandatory rental program from a recent ‘brainstorm’ session of several
landlords.

Landlords of Manhattan, Inc., prides itself that we are an organization that encourages Manhattan area landlords to professionally manage
and maintain property in conformance with governing authority. We regularly update and educate our membership on landlord and tenant
issues.

We look forward to working with you on this matter.

Sincerely,

Board of Directors

Landlords of Manhattan, Inc.