For those interested in our Asset Management Program, we’ve provided some helpful documents which you can view by clicking on below.
Rhode Island Portfolio Management Sustainability Initiative (RIPMSI)
The core activities of this Initiative involve the convening of two ‘Best Practice Work Groups’ to work on parallel tracks to create ‘culture change’ at both the organizational and regulatory levels to implement a statewide asset management system. One track will develop and improve the RI CDC industry’s collective capacity for sound asset management practices that financially strengthen their organizations and affordable housing portfolios. The second will focus on Rhode Island’s affordable housing regulatory and oversight process in order to provide useful, relevant, real-time information to enhance decision-making, build system capacity, cover CDC asset management costs and generate sustainable earned income for the system’s stakeholders.
Asset Management Best Practices:
Enterprise’s ‘Early-Warning Systems for Affordable Housing Properties’ provides guidelines for developing an early-warning system designed to help a developer’s board of directors and senior management recognize and manage the risks of development and long-term property ownership.
‘A Guide to Preserving and Restructuring Affordable Housing’ has been developed to help owners and sponsors of affordable housing extend the longevity of their existing rental housing portfolios. [It offers] a full range of preservation strategies, from creating forward thinking asset management plans to completing financial restructures and property improvements.
Can long-term affordability likewise be used as a strategy for serving more families at current funding levels if applied to affordable multifamily rental housing? This Center For Housing Policy article explores this critical question and others involving long-term sustainability of affordable housing. It also links to important tools for sustainability, particularly a functional Capital Need Assessment aid.
Asset Management Tools
Asset Management requires proper planning and reporting to demonstrate portfolio performance. Proactive asset management should involve practical management tools rather than reporting narratives. These asset management tools should be working documents and should tie to existing financial reporting and management systems. For this reason sample documents are supplied to help guide each organization in developing its own forms.
Property Sustainability Tool
The Property Sustainability Tool is intended to provide a framework for thinking about a property’s current financial condition as well as the financial options and challenges of maneuvering them into long‐term operational sustainability. It has been adapted from a NeighborWorks American initiative and some of the references in the guide are specific to NWA reporting requirements.
Asset Management Plan
Owning and managing affordable housing projects requires many activities related to Asset Management. There can be serious consequences if a property and/or project deteriorates or fails. It is, therefore, prudent to create a written plan for each real estate project that outlines roles and responsibilities, reporting requirements, goals, etc…
Deal Books are brief documents designed to help managers and new staff understand each deal in very practical terms. They should summarize in a few pages the financial and regulatory requirements for each deal or partnership for all properties: including, at minimum, the ownership structure, operating benchmarks and fees, cash waterfall, tenancy served , key compliance requirements, insurance requirements, and exit terms.
A Portfolio Dashboard is a tool that collects important information from each property in one simple document. The information should include relevant performance data (occupancy rates, turnover time, etc…), fiscal information ( budget variances, replacement reserves, etc…), and evidence of compliance (re-certification, DSCR, etc…).
Watchlists are typically intended to be internal documents that highlight properties that are experiencing difficulty. Criteria for individual performance indicators may be set which would trigger the property to be placed on the watchlist. Watchlisted properties should be given special attention in an effort to correct the issues. It is important to note that not all properties are able to perform equally and the watchlist can be an important resources when evaluating properties for disposition.