The Affordable Equity Partners asset management team ensures that each of our affordable housing community is being developed and maintained in accordance with IRS Section 42 regulations. The importance of asset management lies in the minimizing of risk on the Tax Credit recapture through the notification of potential problems that may lead to recapture.
Asset management starts by being directly involved with the developer during construction, as well as working closely with market analysis and underwriting prior to construction. Asset management is responsible for making sure that construction progresses according to the timeline and the budget prepared by the developer. Frequent communication occurs among the developer, the contractor and the asset manager to ensure construction performance is matching project goals. Once construction begins to wrap up, asset management starts working with the management company to prepare for lease-up.
Asset management prepares the management company for lease-up by offering one-on-one training for site managers and providing lease-up forms to ensure compliance. Once the property has become fully occupied, AEP’s compliance consultant will review tenant files to help ensure that qualified tenants occupied the units at time of move-in.
Once the property has stabilized, asset management’s role continues. The team helps management company operate the property safely, efficiently and to the best of its ability. In order to do this, the asset management team reviews monthly occupancy reports, analyzes monthly financial statements and will conduct annual file audits.
One of the most important parts of Asset Management duties is completing annual physical site inspections. These inspections are vital to help make certain that apartment communities are safe and in compliance with state and federal regulations. It is the job of the asset manager to inspect as many as units and community spaces as possible to aid the management company in finding and correcting any possible deficiencies that an agency or state audit would find.
Asset Management is an integral part of all facets of a development; from the initial stages to stabilization to the end of the compliance period. Their job is to ensure that everyone from the owner, developer, investor and management company is working seamlessly to ensure quality, affordable housing for each and every resident.