Asset Management

The primary objectives of the Asset Management Department are to preserve existing affordable housing and increase property performance while minimizing the corporation's risk and ensuring payment of loans. Asset Management oversees multifamily rental housing developments, mortgage loans and other properties which have a variety of funding sources and program requirements

Just the Facts

  • Monitors mortgagor compliance with all applicable corporation legal documents, regulations and program requirements and policies as approved by the Board of Directors and LHC procedures.
  • Performs a periodic assessment of each property in the areas of management, physical property condition and financial viability.
  • Determines the level of performance of the property based on information received, including financials and site/unit observations, inspections and, when applicable, reviews by HUD.
  • Monitors and evaluates properties according to performance. Properties experiencing certain issues of concern may be placed on a watch list as a higher priority for monitoring. 
  • Maintains the watch list to focus staffing resources on properties experiencing some level of distress in order to provide owners/mortgagors with options and resources to improve and stablize the property.

Suspension And Debarment

As a recipient of federal and state funds, the LHC has an obligation to ensure that those funds are used as intended.  The corporation takes that responsibility very seriously, and in our desire to maintain the highest level of program integrity, we make every attempt to ensure that the individuals, agencies, or organizations that participate in these programs operate in an honest and ethical manner. To fulfill this duty, the corporation should have the discretion to suspend or debar individuals, companies or other entities which fail to carryout obligations in accordance with all rules, statutes and best practice standards.  

At its sole option and discretion, the LHC may elect to impose suspensions or debarments on an individual and/or an organization doing business with the corporation. Suspensions or debarments imposed upon individuals may be imposed either in conjunction with, in lieu of, or independently of suspensions imposed on organizations. Also, the corporation may elect to impose suspensions or debarments on individuals and/or organizations employed or utilized by an organization doing business with the corporation (i.e. architects, accountants, attorneys, consultants, engineers, contractors, subcontractors, etc.).

Construction Monitoring

The Construction Monitoring team supervises the progress of new construction and rehabilitation projects across all Corporation programs, ensuring that federal regulations are followed and that all construction agreements between the LHC and the developer or owner are met. In the event that issues or concerns arise, the Construction Monitoring team provides solutions and technical advice to the department administering the funding. 

The department makes every effort to conduct site visits in order to identify issues early and achieve resolution prior to the project being occupied.   The staff inspects to ensure that federal regulations are followed and that all agreements between LHC and the developer/owner concerning construction are met. In the event there are issues or concerns discovered, the staff provides possible solutions and technical advice to the department responsible for that funding program. 

Program Guidelines

The LHC's programs are governed by the federal, state and local regulations listed below and individual agreements between program participants and the Corporation.

  • Uniform Federal Accessibility Standards (UFAS)
  • Section 504 of the Rehabilitation Act of 1973
  • American National Standard Institute (ANSI A117.1-2003)
  • All agreements and contracts between LHC and the developer
  • HUD HQS (Housing Quality Standards)

Environmental Review

The LHC reviews developments and potential environmental impacts to determine whether the projects meet federal, state and local environmental standards. The environmental review process is required for all HUD-assisted projects to ensure they do not negatively impact the surrounding environment and that the property site itself will not have adverse environmental or health effects.

Resources

Compliance Monitoring

The Compliance team monitors properties financed with housing tax credits, HOME funds, and other funding sources.  The Compliance team ensures the long-term preservation of affordable housing and that federal laws and LHC requirements are followed.  To achieve these objectives, the Compliance team employs a training, education, and technical assistance approach with its owner and property manager partners. 

Federal regulations require all properties to be inspected, and the frequency of inspections is dictated by the project's source(s) of funding.  In addition to site inspections, the monitoring team also reviews tenant files to ensure program requirements are met; and the desk monitoring team receives and reviews annual compliance certifications and submissions, due every year on February 15th.

Desk Monitoring

The Desk Monitoring Team of the Asset Management Department is responsible for monitoring compliance of reporting requirements, regulatory compliance, payment obligations and ensuring the ongoing long-term viability of LHC funded projects.

Throughout the compliance period and extended use period, desk monitoring of the project's performance will include a review of following:

  • Initial Underwriting Assumptions
  • Annual Audited Financial Statements and Supplemental Information
  • Regulatory Annual Reporting/ Submission Requirements
  • Payment Obligations
  • Onsite Monitoring/ Physical Condition

Owners/ Developers are required to comply with annual reporting requirements as outlined in your governing documents.