MOTION 1 approved by Executive Committee on April 13, 2015 and by Governing Council on April 14, MOTION 1. New statement of policy on drones.

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1 Report of the IREM Legislative and Public Policy Committee To Executive Committee IREM Leadership and Legislative Summit April 12, 2015 Chair: Aaron Bosshardt, CPM Vice Chair: Mindy Gronbeck CPM Staff Liaison: Beth Wanless Motions Requiring Executive Committee Approval: MOTION 1 approved by Executive Committee on April 13, 2015 and by Governing Council on April 14, MOTION 1. New statement of policy on drones. Background: Recently, IREM Members have vocalized their interest in using drones or unmanned aerial vehicles for commercial use while managing and owning properties. Currently, the commercial use of drones is prohibited, except in some circumstances where the owner and operator have a license. IREM statement of policy on drones applauds the Federal Aviation Administration for publishing proposed rules that would allow the commercial use of drones. IREM Members urge the FAA to include some limited nighttime use of drones for geothermal imaging. Please see attachment for full language of statement of policy. Motion: To adopt legislative statement of policy on drones. Other Actions: Report on 2015 Legislative and Public Policy Committee Goals: Aaron Bosshardt reported on 2015 LPP goals and their current status Activities (How will you achieve the outcomes?) Key Event Target Date Comments/Progress Report Capitol Hill Visits Day 2. Revise 25 existing Statements of Policy Draft new Statements of Policy on new issues, as needed. Serve as a resource to Chapter Legislative Chairs. Staff to contact Chapter Legislative Chairs at least twice per year. Get monthly updates out to Chapter Legislative Chairs with information on federal and some state legislative issues. Encourage Chairs to promote the Capitol Hill Visits Day. April 14-15, 2015 April and October Will be complete on April 15. As of 4/7/15, 212 registrants. Completed Completed: Drones on target

2 Hold webinars for Chapter Legislative Chairs 5. Encourage Chapter Legislative Chairs to be active in monitoring policy issues that impact IREM; help them become the authority on PM issues. on target 6. Continue to help chapters develop and execute Day at the Statehouse program October 2016 on target 7. Increase IREM s Government Affairs presence on social media. Discussion of IREM Public Policy Priorities: Beth Wanless gave a brief presentation on the status of IREM s Public Policy Priority list, including new additions to the list. The Legislative and Public Policy Committee revised the following existing Statements of Policy: 1. Fair Housing Partnership: Model Affirmative Fair Housing Marketing Plan 2. Worker's Compensation Insurance 3. Worker's Compensation and Liability Insurance Responsibility 4. Community Assessment Protection Lien 5. Liability Insurance and Tort System Reform 6. Real Estate Mortgage Investment Conduits 7. Consumer Price Index 8. Financial Entities' Involvement in Real Estate 9. Housing Financing 10. Electronic Advertising 11. Drug Activity 12. Terrorism Insurance The SOP backgrounds were updated, but the positions were not altered. Discussion on Community Assessment Lien Existing SOP: Beth Wanless discussed the potential revision of an existing SOP on community assessment liens something that has recently been a hot issue in some regions. A working group was created to further examine and assess the need for an updated SOP including members: George Caruso, David Barrett, and Mary Scherer. Discussion on Property Management and Community Association Management Licensing Existing SOP: Aaron Bosshardt lead a discussion the issue of revising IREM s SOP on PM and CAM licensing. A task force consisting of both LPP Committee members and non-committee members has been created and the following LPP members: Chuck Sheldon, Warren Lizio, Steve Burger, George Caruso, and Bill Sheridan. This task force will work through summer of 2015 to create a plan of action Capitol Hill Visit Day Overview: Mindy Gronbeck gave an update on the 2015 IREM Capitol Hill Visit Day including a numbers breakdown of registrants, meetings, and states represented. Report on Federal Housing Advisory Board:

3 George Caruso, Chair of IREM Federal Housing Advisory Board gave an update on Advisory Board activity including an update on the HUD and RHS agency meetings that will be held on April in Washington, D.C Strategic Direction Aaron led the discussion on the 2017 Strategic Direction with regard to IREM s federal advocacy program and Capitol Hill Visit Day. IREM CEO, Russ Salzman, further discussed the vision for the future spring meeting and how it will transition into four regional meetings coupled with virtual meetings and participation. There was a passionate discussion on some thoughts and question on the direction that IREM should take with regard to how the organization and its membership engages and implements a federal member-driven advocacy program. The following members indicated they would like to be considered for the LPP Committee working group that will present its finding to the IREM Executive Committee: Aaron Bosshardt, George Caruso, Jeff Weatherspoon, Chet Fitzell, David Barrett, Mary Scherer, Clark Lindstrom, Jim Helsel, Susan Campbell, Shawn Harvey, Bob Britigan and Warren Lizio. Update on Uniform Residential Landlord and Tenant Act Megan Booth, NAR staff, gave an update on her work with the Uniform Law Commission (ULC) and their revisions of the Uniform Residential Landlord Tenant Act. Discussion on State Legislative Issues: An open discussion occurred on various state legislative issues including the Right to Rest Act in Colorado, California and Oregon. This legislation would enforce a law that would allow certain freedoms to the homeless to be able to sleep on public properties, including shopping centers. IREM and the committee are monitoring this issue. Conclusion and Final Remarks: Aaron Bosshardt thanked the committee for their work and participation and the meeting adjourned. Committee Members Present - Aaron Bosshardt, CPM - Chair Mindy Gronbeck, CPM - Vice Chair David Barrett, CPM Robert Britigan, CPM Stephen Burger, CPM Barbara Campbell, CPM George Caruso, CPM Paul Fessler, CPM Chet Fitzell, CPM Shawn Harvey, CPM Susan Heath, CPM Warren Lizio, CPM Jason Martins, CPM Robert Miller, CPM Debbie Prejeant, CPM Mary Scherer, CPM Michael Simmons, CPM Committee Members Absent - Cynthia Anderson, CPM

4 Erica Hall, CPM Amy Hedgecock, CPM David Lane, CPM Robin Quick, CPM Laura Selby, CPM Additional Attendees: Jim Helsel, CPM Russ Salzman Clark Lindstrom, CPM Stan Johnson, CPM Brian Bordelon, CPM

5 IREM Statement of Policy: Unmanned Aerial Vehicles (Drones) Background: Unmanned aerial system (UAS), sometimes called an unmanned aerial vehicle (UAV) or drone, is defined by the Federal Aviation Agency (FAA) as the unmanned aircraft (UA) and all of the associated support equipment, control station, data links, telemetry, communications and navigation equipment, etc., necessary to operate the unmanned aircraft. The UA is the flying portion of the system, flown by a pilot via a ground control system, or autonomously through use of an on-board computer, communication links and any additional equipment that is necessary for the UA to operate safely. Drones have been used more frequently in recent years for various reasons. For the purpose of real estate and property management, professionals use drones to inspect large buildings, obtain aerial views and photographs of commercial and large multifamily properties, among other uses. In February, 2015, the FAA published proposed rules pertaining to the commercial use of drones. In summary, the proposed rule includes language that would: Limit the weight of an unmanned aircraft to be no more than 55lbs (25kg); Require the unmanned aircraft remain within the visual line-of-sight (VLOS) of the operator or visual observer; Limit the use of the unmanned aircraft to daylight-only (official sunrise to official sunset, local time). IREM will comment on these proposed rules and be active during the rulemaking process to ensure regulations are fair and reasonable to the real estate community. Policy Position: IREM applauds the FAA for their timely release of proposed rules to govern the commercial use of drones. Although IREM is generally pleased with the proposed rule language, IREM encourages the FAA to adopt rules that would allow limited commercial drone use during nighttime hours. Real estate managers and owners often use drones for geothermal imaging and this can best be done in the dark nighttime hours. IREM respects the need for the safe use of unmanned aircraft, and encourages IREM Members to take measures to use drones safely, responsibly, and within the confines of the law. Adopted xx/xx/15