Property Managers Wanted
RAM Welcome

Shinda Management

Shinda Management in Queens, NY is looking for experienced property managers. Contact .(JavaScript must be enabled to view this email address)

Property manager with experience in Mitchell Lama Cooperative Housing
Onsite position at property in Brooklyn.

Property manager with experience in Mitchell Lama Cooperative Housing. Onsite position at property in Brooklyn. 5 years experience in property management preferred along with knowledge of the Mitchell Lama Program. Email resume to .(JavaScript must be enabled to view this email address).

HUD Releases Final Fair Market Rents for 2017
Find out your County’s fair market rents

HUD has released the final fair market rents for 2017.

To find out the fair market rent for your county, please click here.

Rockaway NY Co-op Seeks General Manager
General Manager

General Property Manager

Growing housing community is in immediate need of a General Manager to supervise its management and maintenance teams. In addition to at least 5 years of multi-family industry experience, (Candidates without property management experience will be considered with excellent track record of general management to teams larger than 25 employees.) the ideal candidate must be service oriented and possess the ability to communicate effectively both verbally and in writing.
This position requires extensive experience with financial analysis, outstanding customer service and the capability to manage a cohesive team atmosphere. Candidates must have the ability to function at a high capacity set and implement goals, support community initiatives, as well as day to day tasks, and work well under pressure. A four year college degree is required.
Additional Management and Marketing responsibilities include:
• Residential Management, knowledge of building systems, staff supervision, knowledge of 32BJ union policies.
• Strong administrative writing and reporting skills to help develop and implement the annual property operating budget
• Oversee property expenditures and schedule budgeted projects as established in the operating budget
• Prepare the annual business plan by setting both short term and long term goals to achieve objectives of the business plan
• Gather and analyze information on competition, corporations, and the economy
• Ability to read, understand, and interpret legal documents. Knowledge of HPD Rules and Regulations.
• Provide oversight to maintenance supervisors and leasing team
Job Type: Full-time
Salary: $75,000.00 /year
Required education:
• Bachelor’s
Required experience:
• Property Management: 5 years
Required license or certification:
NYARM, RAM
Reply to .(JavaScript must be enabled to view this email address)

New RAM Classes (Spring, Summer and Fall 2016)!
RAM / REEDC Collaboration

The RAM program and Real Estate Education Center (REEDC) to offer accelerated courses.

Hello,

The RAM program is pleased to announce that we have collaborated with the Real Estate Education Center (REEDC) to offer accelerated courses this spring (April – May), summer (July – August) and fall (October – November). Please spread the word to anyone you think might be interested. The price of each course will be $599 and will be held two days a week on Monday and Wednesday from 6 pm – 10 pm. The course fulfills the full biennial requirement of 22.5 hours of real estate continuing education for brokers and salespersons. For nearly 30 years, Real Estate Education Center has provided New York real estate licensing classes and continuing education to NY real estate agents, brokers, and individuals seeking real estate careers. The RAM designation is recognized nationwide for its broad and wide-ranging training in preparation for the management of multi-family housing. The training is designed to provide the student with a complete understanding of, and application of the tools for, effective property management.

Here is the link to register for the accelerated the next upcoming classes:
Your text to link here…

Schedules may be found at the bottom of the page in the drop down menu.

Let me know if you would prefer the longer, one class a week program that we traditionally offer, we expect to offer it again in the fall.

Feel free to contact me directly with any questions or concerns.

Sincerely,

Brent Woodie
Membership Director
National Associated Builders and Owners
5 Hanover Square, Suite 1605
New York, NY 10004
212.385.4949
.(JavaScript must be enabled to view this email address)

NYC RAM Course - 9/15/16 - 1/17
RAM 2016 Course

RAM Course Information
Starting Thursday, September 15, 2016 (​class will meet ​every Thursday through January 2017)

Time​:
6:00 p.m. – 9:00 p.m. EST (​Please Be On Time!!!​)​

Location:
Shinda Management Queens Corporate Center
221-10 Jamaica Avenue
Queens Village, NY 11428

Course Fee
$730.00 per person ​(fee includes materials)

Instructor
Gail Badger

Mail Registration AND Student Roster form ​to:
NABO
5 Hanover Sq, Suite 1605
New York, NY 10004
or email to:
.(JavaScript must be enabled to view this email address)

Please see Calendar for more details. All forms can be requested by phone or e-mail.

If you have any questions or concerns regarding the course, please feel free to contact RAM Membership Coordinator, Jose Nieves, at .(JavaScript must be enabled to view this email address)

New NABO Membership Director
Brent Woodie

NABO welcomes Brent Woodie as our new membership director, replacing Olga Chernomorets who has finished her Masters in Urban Planning and taken a planning job in Brooklyn. Brent earned his Masters in Public Administration from Baruch College and BA from SUNY Albany. Feel free to contact him with your RAM questions at .(JavaScript must be enabled to view this email address)

EMPLOYMENT OPPORTUNITY
Part-time Site Manager

Administration operations including recertification process for subsidized senior apartment building. Communicate operational information to tenants. Work with Building Superintendent to maintain pleasant, safe, sanitary premises.

Title: Part-time Site Manager

Job Summary: Administration operations including recertification process for subsidized senior apartment building. Communicate operational information to tenants. Work with Building Superintendent to maintain pleasant, safe, sanitary premises.

Reports to: Property Manager
Requires:
• Excellent written and verbal communication skills
• Meticulous record keeping
• Consistent, complete follow up

Essential duties include but are not limited to:

• Site Supervision
• Annual recertification of tenants for continued eligibility
• Instruct new tenants regarding apartment use, regulations governing building common space
• Prepare and submit required monthly, quarterly and annual reports and filings as required by owner, supervisory and regulatory agencies
• Oversee Building Superintendent in routine and preventive maintenance
• With Property Manager – arrange outside plumbing, electrical or other physical plant work beyond scope of maintenance staff
• Document and address all occupancy related issues – tenant complaints, damages, needed repair, etc.
• On a regular basis as prescribed by and with Property Manager and Building Superintendent monitor, record and review maintenance systems for upkeep and to determine more cost-effective methods
• With Building Superintendent inspection of buildings and grounds at least twice weekly recording deficiencies; schedule repairs
• Emergency situations may call for working weekends and evenings
• Develop and maintain collegial attitude with building programs and service providers

Qualifications: At least high school education. Computer literate. Knowledge of RealPage software helpful. Experience with Low Income Housing Tax Credit, HUD Regulations. Ability to accurately and consistently maintain logs and write reports. Supervisory skills. Ability to work with multi-ethnic seniors with compassionate and confidence. Team building and personnel supervisory skills. Bilingual helpful – Greek, Spanish, Chinese, Korean.

Physical requirements: Sitting, standing, walking much of day. Clear articulation and good visual acuity.

Salary: $22.90/Hour

This position is determined to be Exempt for purposes of the FMLA.
(Part-time position is hourly rate.)

Contact person:
Keron Rivera- Property Manager
718-396-5023
.(JavaScript must be enabled to view this email address)

Employment Opportunity
Corporate Controller

The applicant must have the following skills, experience and educational background to effectively do the job and meet the requirements of any number of city, state and/or federal agencies that supervise the various types of subsidized housing developments within the city, particularly those supervised by the state of New York’s Home and Community Renewal agency:

The Corporate Controller must be responsible for the direct supervision of all accounting and financial functions. Primary responsibilities include supervision of the monthly close process, monthly, quarterly and annual billings to clients for services provided, billing reimbursements from clients, collection of and supervision of accounts receivables, supervision of accounts payable, payroll, monthly reporting for owner and to supervising agencies, monthly preparation of a forecast, annual preparation of a budget, assist in the preparation of quarterly tax projections and annual tax return preparation and all treasury administration. The Corporate Controller will also be part of the team that creates and implements policies and procedures to identify, resolve and document accounting issues in addition to creating procedures to make the close and reporting processes more efficient and accurate.

ESSENTIAL FUNCTIONS:
Preparation and administering of annual budgets
Preparation of work papers supporting the annual tax return
Coordinate the preparation of annual tax return with outside CPA firm
Implement a process to record transactions by department and compare costs incurred to budget and performance analysis of profit centers
Review and recordation of journal entries required to reflect the monthly activity
Preparation of work papers supporting the monthly close process and month end balances
Review monthly accounting close process including analytical review of the monthly operating results to ensure accurate accounting records are maintained
Preparation of monthly financial statements and related footnotes
Preparation of the year to date cash flow
Perform cash projections to manage cash balances and maximize return on any excess cash balances
Preparation of payroll
Supervise the billing of asset management, incentive fees, acquisition, disposition, monthly, quarterly and annual fees in accordance with respective agreements
Supervise the accumulation of permitted reimbursements from clients through accounts payable process and bill to clients accordingly
Coordinate and record investments made in Funds, securities, overnight funds, etc.
Assist in maintaining records for retirement accounts i.e. 401K Plan
Supervision of all accounts payable processed in corporate office, this includes corporate payables, payables for Title Holding Entities, allocations of costs incurred on behalf of multiple entities
Review of expenses incurred on behalf of multiple entities
Maintenance of fixed assets records for quarterly inventory of fixed assets with the Information Technology department
Implement, document and maintain adequate and effective internal controls
Implement, document and maintain adequate processes to improve the close and reporting cycles to ensure timely and accurate reporting
Responsible for ensuring compliance with all applicable laws, rules and regulations
Accurate and timely production of all financial information
Proper analytical review of the asset operations from a balance sheet, income statement and cash flow perspective as well as an overall business perspective
Hiring and supervising accounting staff required to handle all accounting phases and responsibilities of various projects or developments
Oversee the collection of rents and other charges and receivables for the various entities
Oversee income reviews and re-certifications
Establishing and maintaining a financial accounting system for various entities
Establishing depositories for funds and making disbursements for various entities
Oversee the administration of subsidy programs
Liaison with accountants, attorneys, government agencies and Owners
Overall supervision of all accounting phases and operations

EDUCATION
Bachelors and/or Masters Degree in Business Administration with an emphasis in accounting. The degree should be obtained by a well recognized college or university
C.P.A. is preferred but not required

EXPERIENCE
7 + Years experience in accounting and finance of government subsidized housing developments, particularly supervised by the state of New York, through its Homes and Community Renewal agency
7+ Years managing accountants and the accounting and finance process
5 + Years experience in a position equivalent to a controller or higher responsibilities
Big Four or national accounting firm audit experience is preferred but not required
Strong experience in both the private and public accounting sectors is preferred but not required

SKILLS
Credibility, ethical, full disclosure and clean financial history
Confidential, understands the ethical standards of a C.P.A.
Ability to handle payroll including the mental conflicts associated with this responsibility
Conscientious about timeliness of assignments and quality of work product
Possess exceptional written and verbal communication skills, including ability to articulate recommendations in a concise and timely manner
Able to handle multiple tasks and maintain control and order over same
Good financial reporting technical skills
Exceptional work ethic

PLEASE SEND COVER LETTERS AND RESUMES TO: .(JavaScript must be enabled to view this email address)

March 2015 RAM Course!
Next RAM Course Scheduled

RAM Course Information

Starting Wednesday March 11, 2015 (​class will meet ​every Wednesday through June 17)

​Time​
6:00 p.m. – 9:00 p.m. EST (​Please Be On Time!!!​)​

Location:
The Community Room at ​Knickerbocker Plaza
1751 Second Avenue (between 91st and 92nd Streets)
New York, NY 10128

Course Fee
$730.00 per person ​(fee includes materials)

Instructor
Gail Badger

Mail Registration AND Student Roster form ​to:

NABO
5 Hanover Sq, Suite 1605
New York, NY 10004

or email to:
.(JavaScript must be enabled to view this email address)

Please see Calendar for more details. All forms can be found under the Apply link below.

JOB OPPORTUNITY
Looking for two Assistant Managers

Douglas Elliman is looking for two assistant mangers. One for Mitchell Lama Housing in Queens and a second for Private Cooperative that converted from Mitchell Lama eight years ago.

Job Description for an Assistant Manager of a Mitchell Lama Housing Company

Candidate to have real estate property management experience of 5 years working on site property management office of a cooperative housing company.. Must be knowledgeable in the rules and regulations of the NYC Mitchell Lama Rules and Regulations. The candidate will be responsible for

1. Maintenance of the Internal and External Waitlist for the Housing Company and selection and application processing of all applicants who are purchasing apartments.,

2. Work with the Manager, Superintendent and Maintenance staff on building wide housekeeping, regular maintenance, and apartment preparation for new shareholders purchasing the unit.

3. Perform the annual apt. inspections with assistance as well as the inspections when shareholders vacate the apt.

4. Attend monthly board meetings. Attend committee meetings when requested

5. Excellent Written and Verbal Skills in working with shareholders, vendors, governmental agencies and board of directors.

6. Will need to be on call and respond to telephone calls and e mails from board members and building staff

7. Knowledge of Excel Spreadsheets for maintenance of various lists for the cooperative.

8. Have a RAM certification or to get a certification within 6 months of hiring

Prefer a College degree for the candidate. The salary and benefits are competitive and excellent working environment. Interested candidates should send a resume and cover letter via e mail with salary requirements to or call me on my cell phone number.

Henry A. Dubro,General Manager, Managing Director
Trump Village West
C: 347-539-6580
E-Fax: 646-843-2621
Email: .(JavaScript must be enabled to view this email address)

JOB Opportunity -  Senior Level Property Manager
Senior Level Property Manager

Looking for Senior Level Property Manager to supervise the management and maintenance operations of 1000 units of Senior Citizen Section 8 and PRAC Housing in one of the outer boroughs. This is an onsite position with direct interaction with the tenants and the candidate must know the HUD 4350.3 Management Handbook as well as the HUD on line computer system in order to file timely certifications and recertifications. Must be able to manage the waitlist and direct a management and maintenance staff. Qualified candidates should have the RAM certification, necessary training in the HUD Section 8 programs, Waitlist, Fair Housing and interaction with tenants. Candidates can apply by e mail to .(JavaScript must be enabled to view this email address)
Please include a cover letter as well as salary requirements.

For any questions please contact NABO membership director Olga Chernomorets at 212-385-4949 or .(JavaScript must be enabled to view this email address)

RAM Continuing Education Credit Opportunity
ABO seminar on new Management Technology

Is there a drone in your future?
Join us for an ABO seminar on new Management Technology, from 12:15 to 1:30 September 17th during the NYARM Expo in the Hotel Pennsylvania.

RAM continuing education credit is available for the entire NYARM program!!

Please contact .(JavaScript must be enabled to view this email address) or 212-385-4949

JOB OPPORTUNITY
RAM Designation Required

Prestigious New York City based property management company is looking for a portfolio account executive to manage properties in New York City. The individual must have a minimum of 5 years of property management experience in cooperative housing property management. Must be able to supervise building staff, work with the board of directors, supervise contractors, identify contractors to bid on capital projects as well as maitenance work at apt. buildings. Excellent verbal and written skills as well as able to work with with excel, yardi and word perfect software. Candidate must be able to mutli task and have knowledge of New York City Building rules and regulations for multifamily housing.
BA degree is preferred.
Salary is commensurate with experience.
Excellent benefits package .

Interested applicants can send their resume to me at .(JavaScript must be enabled to view this email address)

For any questions or concerns please contact .(JavaScript must be enabled to view this email address) or call 212-385-4949

JOB OPPORTUNITY
Qualified to process Low Income Housing Tax Credit

Looking for an individual that is qualified to process Low Income Housing Tax Credit new applicants for housing as well as recertification of existing tenants. The position is located in Flushing Queens and it is in an on site management office.

Must be RAM certified.

Needs to know the rules and regulations for the Low Income Housing Tax Credit program. Interested applicants can send their resume to me at .(JavaScript must be enabled to view this email address)

For any questions or concerns please contact .(JavaScript must be enabled to view this email address) or call 212-385-4949

Sharon Hamilton-Taylor
She will be greatly missed by the entire RAM community.

Sharon Hamilton-Taylor, Advanced RAM, passed away Sunday, July 7.

A long-time TBA member and a vital part of its Tidewater Multifamily Housing Council, Sharon served as Dean of RAM School from its earliest days and earned her RAM certification at the very first class in 1978. She gave selflessly of her time and knowledge over the years to improve the professionalism of the property management community, teaching close to 2,000 students during that period. She was also a member of the national RAM Board of Governors.

Sharon worked as a property manager for Lawson Companies for a number of years and she will be greatly missed by her many coworkers and colleagues, as well as by the multifamily industry as a whole.

JOB OPPORTUNITY
HUD and LIHTC certification and recertification experience required.

One of the Douglas Elliman Account Executives is looking for an individual with Section 8 Elderly and PRAC housing companies as well as LIHTC housing company certification and recertification.
Should have knowledge of Sec 8 and SCRIE.
The job is located in Queens and the salary is competitive.
Please send resumes to .(JavaScript must be enabled to view this email address)

or contact RAM Membership director at 212-385-4949

JOB OPPORTUNITY
Administrative Assistant

Large third party property Management Company is in need of an Administrative Assistant for on site management office in South Brooklyn.

Candidate needs to have 5 years of real estate management experience, RAM designation, and an Associate’s Degree preferred.

The jobs duties include are not limited to the following:
1. Scanning of maintenance checks and other payments coming to the management office
2. Provide applications for Apt. Sale, Transfer of Stock Certificate, and Sublet with prospective people as well as work with the real estate broker and buildings’ closing attorney.
3. Analyze shareholder ledgers with the shareholder when there are questions and do the necessary adjustments.
4. Oversee the collections and landlord tenant actions with landlord tenant attorney.
5. Knowledge of Yardi Software preferred Microsoft Excel, and Microsoft Word.
6. Regular interaction with the shareholders of the housing cooperative.
7. Maintain Parking lists and parking registration for the shareholders of the housing company
8. Preparation of excel spreadsheets.

Excellent Benefit Package, onsite parking, competitive salary package. All inquiries in confidence to .(JavaScript must be enabled to view this email address).

No phone calls please!!

JOB OPPORTUNITY
Office Staff

“Office staff”
Seeking clerical help familiar with government assistance programs to work on leasing and occupancy related matters for apartment buildings.
Mineola office with site offices at each of our properties in Nassau and Queens.

Responsibilities include:
• assisting tenants to resolve issues
• Certify tenant incomes
• Processing apartment applications, leases and parking renewals
• Answering phones
• Maintaining files
• Communicating with coworkers
• Visiting the main office as well as the sites.
• Meet daily and yearly deadlines
• Yardi software
Our company has a special focus on the preservation of affordable housing.

Qualifications include:
• Experience in multifamily housing management
RAM Designation preferred
• Familiarity with Section 8 housing
• Familiarity with Low Income Tax Credit Housing
• Knowledge of HUD, tenant ledgers and leases
• Strong customer service skills
• Must be detail oriented and highly organized
• Knowledge of public assistance

Benefits include:
• Health insurance
• Pension with an employer contribution
• Sick, personal and vacation days.

Please E-mail resume and salary requirements to .(JavaScript must be enabled to view this email address)

JOB OPPORTUNITY
Accountant (Part Time)

“Accountant”(part time)
Seeking an accountant familiar with multifamily housing to work on matters related to apartment buildings. Mineola office.
Responsibilities include:
• Preparation of material for external auditors
• Internal audits
• Accounts receivable
• Accounts Payable
• Bank reconciliation
• Journal entries
• Communicating with coworkers
• Meet daily and yearly deadlines
Our company has a special focus on the preservation of affordable housing.

Qualifications include:
• Yardi software a plus
RAM Designation
• Experience in multifamily housing management a plus
• Familiarity with Section 8 housing a plus
• Familiarity with Low Income Tax Credit Housing a plus
• Knowledge of HUD, tenant ledgers and leases a plus
• Must be detail oriented and highly organized

Please E-mail resume and salary requirements to .(JavaScript must be enabled to view this email address)

JOB OPPORTUNITY
Building Manager

Seeking a Building Manager for work related to apartment buildings.
Mineola office with site offices at properties in Nassau and Queens.
Responsibilities include:
• inspecting apartments
• issuing work orders & issuing purchase orders
• communicating with vendors & contractors
• meeting with building staff
• Communicating with coworkers
• Communicating with insurance companies, and following insurance claims though resolution
• Meet deadlines
Our company has a special focus on the preservation of affordable housing.
Qualifications include:
• Yardi software a plus
RAM Designation
• Experience a plus
• Experience in multifamily housing management a plus
• Familiarity with Section 8 housing a plus
• Familiarity with Low Income Tax Credit Housing a plus
• customer service skills a plus
Benefits include:
Health insurance
Pension with an employer contribution
Sick, personal and vacation days.

Please E-mail resume and salary requirements to .(JavaScript must be enabled to view this email address)

JOB OPPORTUNITY (Bookkeeper/Office Assistant)
Bookkeeper/Office Assistant

Management office needs Bookkeeper/Office Assistant
in Grand Concourse area of Bronx

-Proficient in Quick Books
-Good Computer skills
-Knowledge of subsidized housing regulations a plus
-Bilingual Spanish/English
-Completive Salary Range + Medical Benefits

Please send resume and cover letter to: .(JavaScript must be enabled to view this email address)

JOB OPPORTUNITY (Maintenance Director)
Maintenance Director

Looking for a Maintenance Director experienced in overseeing the operations for a 1200 unit multi building property complex in Brooklyn New York. – Candidate should be familiar with overseeing large union maintenance staff – Candidate should be familiar with all building systems – Candidate should be able to design and oversee a maintenance plan for the complex including; snow, fire safety , boiler maintenance

Please send the resume and cover letter to .(JavaScript must be enabled to view this email address)

JOB OPPORTUNITY (Temporary Project Manager )
Temporary Project Manager

Temporary Project Manager: – 6-12 months to assist assistant manager and general manager in overseeing Hurricane Sandy repairs . – Coney Island location and Monday-Friday 8-5 – Office open late 2 nites a week. – Excellent salary and benefits. – Prior construction and property management experience necessary.

E mail resume and cover letter to
.(JavaScript must be enabled to view this email address)

JOB OPPORTUNITY (Assistant Super)
Assistant Super

Assistant Super
1.10 years experience as handyman and or foreman
2. Must be on call and live on site in a bedroom apt.
3. Non Union and excellent benefits package
4. Luxury Cooperative located in Coney Island/Brighton Beach neighborhood.
5. Must have excellent interpersonal skills with shareholders,unionized staff and contractors
6. Fire standpipe license a requirement.
7. Prefer bilingual speaker and second language Russian

Excellent opportunity for a self starter and who wants to take on a challenge.

Send resume via e mail to
.(JavaScript must be enabled to view this email address)

Should apartment managers be licensed?
By Dan Margulies

Should apartment managers be licensed?
By Dan Margulies
Executive Director, Associated Builders and Owners of Greater New York, Inc. and National Associated Builders and Owners Inc.

In some 41 states, you need to be a licensed real estate broker to handle leasing or to collect rent for a third party. But, the classes you have to take to be licensed have almost no information about apartment management. They mostly deal with home sales, and sometimes leasing. They don’t tend to have any lessons on budgets, purchasing supplies, managing staff, maintenance, etc.

Only four states and the District of Columbia have property management licensing or certification requirements. Another five states just require property management training to manage community associations.

And, of course, most states make exceptions for owner/managers managing their own property and their employees.

Associations like National Associated Builders and Owners, the Institute for Real Estate Management, the National Apartment Association, and the Community Associations Institute all offer nationally recognized voluntary certification programs for apartment managers. Based on the curricula, any of these certification programs should be more important to owners and shareholders choosing a manager than state requirements.

Why do states license barbers and Athlete Agents (yes, you, Jerry Maguire), but not managing agents responsible for millions in assets and the safety of people’s homes? One reason is the number of units managed by building owners. As mentioned above, owner/managers often aren’t even required to be licensed brokers because it seems silly to require someone to get a license to manage their own property. After all, who would be a more careful property steward than the owner? Looked at another way, however, owning a car doesn’t exempt you from needing a driver’s license.

Regardless, there are certain things everyone would want an agent to know. NABO’s Registered in Apartment Management curriculum includes sections on preparing an operations manual for each property; resident relations; community relations; leasing, setting rent levels; cash management; risk management; preventive and emergency maintenance; contracting; marketing; tenant screening; construction management; fair housing requirements; and much more. Property management is actually a pretty interesting job because it has so many facets. It’s not something to take on without training.

Building owners and residents want agents who care enough to get this kind of training and certification. To use the drivers license analogy again, there are a lot of bad drivers with licenses out there. Insurance companies give discounts to people who take extra safety courses for a reason. They work. Similarly, the agent who takes certification classes and continuing education is more likely to do a good job.

Just think for a minute about our recent experience with Hurricane Sandy. How might a professional managing agent have been prepared?

He/she would have had an emergency plan in place beforehand, including contact information for all residents; emergency contractors; and suppliers. Faced with the loss of electricity and flooded boiler rooms, they might have already identified resources for pumps, generators, or auxiliary heating.

Perhaps more importantly, long term, they would have a handle on the building budget to know how much money was available for different responses; and an understanding of the building’s insurance coverage and limits. They would also be wise to understand the legal issues raised by lost services for both renter and owner residents.

Another legal area where professionalism is vital involves fair housing and handicapped access laws. Discrimination is wrong, but illegal discrimination can also be very expensive. Not only is a manager responsible to understand and comply with anti-discrimination laws, he or she often has to explain their responsibilities to owners and boards.

One more example of the need for specialized training is purchasing. Do you really want someone without a broad understanding of heating systems as point person on the purchase and installation of a $100,000 or more boiler? Do you care about the credentials of someone organizing a million dollar façade restoration? Or how about just the responsibility for managing several million in rent or maintenance payments annually? Shouldn’t that require some knowledge of bookkeeping?

RAM certification is one of several national and regional credentials you can look for in a managing agent. Not looking for an agent with specialized training is just a mistake.

JOB OPPORTUNITY
Real Estate Management

NYC Management Firm is seeking an experienced Property Manager to manager a small portfolio of Cooperative & Condominium properties. Must have a working knowledge and hands on experience dealing with multiple sites and be fully versed in the workings of Cooperatives and Condominiums. Salary commensurate with experience. Send all resumes and salary requirements to .(JavaScript must be enabled to view this email address) or fax to 718-504-4393.

JOB OPPORTUNITY
Property Manager position. Management Company and buildings/project sites are predominately located in South Brooklyn.

Job Opportunity

Property Manager position. Management Company and buildings/project sites are predominately located in South Brooklyn.

Basic Function
 Responsible for maintaining the integrity of the physical asset and maximizing the returns from the asset in accordance with the Company’s mission, vision, and objectives.
 Responsible for training and development of all personnel assigned, either directly or through others.
 Reports to Management Supervisor.
 Supervises all on-site personnel at properties assigned.
 Maintains relationships with peers and all other departments within the company.
 Maintains relationships with suppliers, vendors, and others serving the Company or the property.
 Responsible for all tenant related issues – including complaints; maintenance; compliance; etc
Activities
The activities listed here are not all-inclusive; rather, they indicate the types of activities normally performed by this position.
 Maintaining the physical asset— – Supervises employees and contractors. – Assures adherence to specifications (contractual; operations manual). – Conducts formal site inspections of building interior (includes common areas/ resident apartments/commercial space) and exterior. – Makes recommendations for physical repairs and/or replacements. – Supply oversight; material/supply purchasing- monthly, seasonally, or project based – Ensures observance of safety regulations.
 Financial reporting and control— – Approves payments (payroll, invoices). – Approves expenditures in accordance with Company policy and procedures. –  Administration— – Handles employee selection, training, and control, and assures that all supervised employees comply with the appropriate policies and procedures. – Uphold good tenant relations – Oversee and manage service complaints according to company policy – Coordinate Schedules for building projects and maintenance goals – Interfaces with outside professionals regarding legal, accounting, insurance, tax, and other matters, as appropriate. – Ensures property files and records are maintained. – Continually improves management and technical skills.
Qualifications (Ideal)
 Minimum of five years experience at on-site and supervisory levels.
 Education- College degree or higher a plus
 Computer skills: Microsoft (Word, Excel, Outlook, etc), Real Page (a plus)
 Strong leadership and motivational abilities.
 Exceptional communication skills and ability to interact with wide range of people; in person, via telephone, email and letter.
 Attentive to detail, schedule oriented

Prospective Applicants can submit their resume and cover letter via fax or email.
Fax # 718-336-4230
Email .(JavaScript must be enabled to view this email address)

Or contact Olga at NABO 212-385-4949

JOB OPPORTUNITY
Part Time

Real estate property management firm seeking Part-time Property Manager with a RAM certification for a NYS Mitchell Lama housing development for the elderly located in Brooklyn, New York. The successful candidate will work at the housing development Monday, Wednesday and Friday. Qualifications include, but is not limited to, having working knowledge of certification of income and assets (HUD 50059s); income affidavits; rent collection; REAC inspections, etc. Benefit package available; salary commensurate with experience. Immediate position; Opportunity for advancement.

Please send resumes to .(JavaScript must be enabled to view this email address), with Resume as the subject line.

HUD has issued new rules for the treatment of Project Based Section 8
residual receipts that will affect November HAP applications. Make sure you are treating revenues correctly.

Please see the new HUD notice effective with November 2012 HAP application. Basically for those affected:

1) If you have residual receipts you must tap that before requesting subsidy from HUD
2) You must retain a reserve in the Residual receipts at the amount of 250/unit
3) If you have service fees you must tap residual receipts for these amounts
4) Because you are drawing from the residual receipts instead of HUD this may affect your management fee calculation.
5) It will reduce taxable income because these funds were already taxed

There are many issues concerning this new directive and the local housing authority may not be up to speed yet. Please read the attached to see if you are affected. This is IMPORTANT!

Special Attention of:

All Multifamily Hub Directors
All Multifamily Program Center Directors
All Multifamily Operations Officers
All Directors of Project Management
All Field Counsel
All Multifamily Housing Owners
All HUD-Approved Multifamily Mortgagees
All Housing Finance Agencies
All Contract Administrators

Notice H-2012-14
Issued: August 3, 2012

Expires: This notice remains in effect until
amended, revoked, or superseded
____________________________
Cross References:
Handbook 4350.1—REV.1
SUBJECT: Use of “New Regulation” Section 8 Housing Assistance Payments (HAP)
Contracts Residual Receipts to Offset Project-Based Section 8 Housing
Assistance Payments

I. Purpose
When Owner distributions of surplus cash are limited or prohibited and when HUD determines that project funds are more than the amount needed for project operations, reserve requirements, and any permitted distributions, the excess income is typically required under the applicable new regulation1and/or the Section 8 Housing Assistance Payments (HAP)contract to which the project is subject to be deposited in to an interest-bearing account, often called the Residual Receipts account, to be used for project purposes.2This account (or accounts in cases where these monies are deposited in multiple accounts), however titled or designated, is referred to throughout this Notice as the “Residual Receipts” account. The contents of this account, however titled or designated, are referred to throughout this Notice as “Residual Receipts.” The new regulation and/or the various HAP contract forms used for new regulation projects explicitly permit HUD to use Residual Receipts to reduce housing assistance payments. (See 24 CFR §§ 880.205(e), 881.205(e), and 883.306(e)).

This Notice sets forth the policy and procedures for the Department’s use of new regulation Residual Receipts to offset housing assistance payments for projects subject to a new regulation Project-Based Section 8 HAP contract and outlines the obligations and duties of Owners and the responsibilities of HUD Field staff in processing and monitoring the use of this project resource.

II. Background
Although Section 8 Project-Based Rental Assistance (PBRA) was funded in the Fiscal Year 2012 budget at levels sufficient for the Department to continue full funding of all contracts, the Department is committed to achieving savings in order to slow the growth of PBRA expenditures and to effectively manage the account within appropriated levels. This policy
change will produce PBRA savings, constrain future expenditures, and ensure the long-term stability and availability of PBRA for all program participants.

III. Applicability and Implementation
A. This Notice applies to all projects that are subject to a new regulation Project-Based Section 8 HAP contract. Applicability includes Section 8 New Construction/Substantial Rehabilitation projects subject to 24 CFR§§880.205, 881.205, or 883.306, and projects that are subject to both aSection 202 Direct Loan and a new regulation Section 8 HAP contract.3

B. This Notice does not apply to Section 202 and Section 811 projects with Project Rental Assistance Contracts(PRACs)and Project Assistance Contracts (PACs).

C. This Notice will be effective withvouchers submitted 60 days after issuance of this Notice.

IV. Authority
As stated above, authority for the Department to usenew regulation Residual Receipts to offset Section 8 HAP payments is found in the new regulationsand/orin new regulation HAP contracts.
A. There is regulatory authority in 24 CFR §§ 880.205(e), 881.205(e), and 883.306(e).

1. 24 CFR § 880.205(e):If HUD determines at any time that project funds are more than the amount needed for project operations, reserve requirements and permitted distribution[s], HUD may require the excess to be placed in an account to be used to reduce housing assistance payments or for other project purposes.Upon termination of the Contract, any excess funds must be remitted to HUD.

2. 24 CFR § 881.205(e):If HUD determines at any time that project funds are more than the amount needed for project operations, reserve requirements and permitted distribution[s], HUD may require the excess to be placed in an account to be used to reduce housing assistance payments or for other project purposes. Upon termination of the Contract, any excess funds must be remitted to HUD.

3. 24 CFR § 883.306(e): If the Housing Finance Agency (HFA)determines at any time that surplus project funds aremore than the amount needed for project operations, reserve requirements and permitted distributions, the HFA may require the excess to be placed in a separate account to be used to reduce housing assistance payments or for other project purposes. Upon termination of the Contract, any excess project funds must be remitted to HUD.

B. There is corresponding authority in the HAP contracts for new regulation Part 880, Part 881, Part 883 projects, and for Section 202/8 projects that are subject to a new regulation Section 8 HAP contract(i.e., usually in section 2.6 of such contracts).The contract provisions are typically phrased as follows: “Withdrawals from this [residual receipts] account will be made only with the approval of HUD [for Part 883 projects of the HFA] and for project purposes, including the reduction of housing assistance payments.”

V. Programmatic Summary
A. To the extent that Residual Receipts are available at a new regulation project, Owners are allowed an initial reserve (“Retained Balance”) in an amount equivalent to $250 per unit touse for project purposes. HUDwillconsider approvingrequests for releases from the accountin accordance with the outstanding proceduresfound in HUD Handbook 4350.1, Multifamily Asset Management andProject Servicing, Chapter 25, “Residual Receipts,”paragraph 25-9.

B. To the extent Residual Receipts are available at a new regulation project, Owners may use Residual Receipts to fund a Service Coordinator program, subject to HUD approval.The $250 per unit Retained Balance is net of the Residual Receipts necessary to fund a Service Coordinator program.That is, Residual Receipts funds in excess of the Retained Balance may be used to fund a Service Coordinator Program prior to offsetting Section 8 HAP payments.

C. Residual Receipts account balances in excess of $250 per unit must be applied on a monthly basis to offset Section 8 HAP payments up to the full amount of the monthly subsidy request, depending upon the amount of Residual Receipts available for theoffset.Monthly offsets must continue until the Residual Receipts account reaches the Retained Balance levelof $250 per unit.

D. Owners must follow the instructions in Section VI to voucher foroffset of Section8 HAP payments.

E. Owners of projects withResidual Receipts account balances at or below the Retained Balance shallvoucher for full monthly HAP payments through the Tenant Rental Assistance Certification System (TRACS) in accordance withexisting procedures.

F. At the end of the project’s fiscal year, all surplus cash remaining after payment of any permissible distributions must be deposited into the project’s Residual Receipts account.

G. If, after all Residual Receipts have been applied to offset Section 8 HAP payments and the Residual Receipts account balance again exceeds the Retained Balance level of $250 per unitdue to an annual deposit of surplus cash, offsets of Section 8 HAP payments must be re-initiated.

VI. Owner Requirements
A. In order to accomplish the Offset Process, project Owners must submit amiscellaneous payment requestthrough the Contract Administratoralong with their electronic monthly HAP voucher. The request must include: (a) the amount of the offset, expressed asa negative amount and (b) the text phrase “RR OFFSET” in the comment field,along with the actual offset amount inserted.

1. The miscellaneous payment request mustbe sent to “Field Office Initiated Accounting Adjustment,” with a code of “FORQ.” TRACS will automatically deduct the offset amount from the total voucher amount approved, thus assuring that the proper amount will be paid via TRACS.
2. When making the miscellaneous payment request, Owners must simultaneously submit form HUD-9250, Funds Authorizations for Use of Reserve for Replacement or Residual Receipts, to the HUD Field Officeas documentation of the offset.
3. Incomplete submissions will delay processing. Field Offices will return incomplete submissions to Ownerswith a letter detailing the deficiencies.

B. Owners shall submit Annual Financial Statements,which include surplus cash computation sheets, in the form and to the entity currently required by the Department,within 90days of the end of the annual fiscal period.Owners who are not required to file annual financial statements shall submit a year-end certified statement to their local HUD Office, providing total disbursements as wellasthe beginning and year-end balance in the Residual Receipts account.

C. At the end of the project’s fiscal year,all surplus cash remaining after payment of any permissible distributions must be deposited into the project’sResidual Receipts account andshall be used to offset Section 8 HAP paymentsbased on the requirements and procedures established in this Notice.

VII. Hub/ProgramCenter Responsibilities
A. Owner Submissionsof HUD-9250

1. Hub/PC staff shalldate-stamp Owners’ submissions upon receipt and processthemwithin 10 business days.

2. Hub/PC staff shall return incomplete submissions to Owners immediately with a formal letter listing the deficiencies in the submission.

B. Reviews and Approvals

1. Prior to the first required offset of Residual Receipts, the Hub/PC shall notify the PBCA or TCA at least 45 days in advance of the proposed effective date of the offset. The effective date of the offset will be the first day of the month which follows the conclusion of the 45-day notification period.

a. Example #1: If the Hub/PC notifies the PBCA or TCA that HUD thhas directed the offset on June 15,the offset will be made effective on August 1st.

b. Example #2: If notification of offset is given on May 1st the offset may be made effective on July 1st.

2. The Field Office Project Manager shall review and assure that the offset amount is correct, and notify the PBCA regarding the amount of the off-set.

3. The Hub/PC Director or designee shall sign the request.

4. The Hub/PCshall maintain copies of all approved releases in accordance with the document retention regulations(HB 2225.6–HUD Records Disposition Schedules, Appendix 10).
5. The Hub/PCshall submit form HUD-9250 authorizing releases to the

C. Monitoring

The Hub/Program Center shall:
1. Keep track of the remaining balance in the Residual Receipts account available for offsetting Section 8 HAP payments.

2. Ensure that Owners are using Residual Receipts to offset Section 8 HAP payments when the account is in excess of the Retained Balance.

3. For those for which they are responsible, review Owners’annual financial statements to assure proper accounting of withdrawalsfrom the Residual Receipts account.

4. After each release, enter commentsinto the “Servicing” screenof theIntegrated Real Estate Management System(iREMS)stating the:
• Date approval wasgiven to use Residual Receipts to offset Section 8 HAP payments, and
• Amount approved.

VIII. Headquarters Responsibilities

The Office of Asset Management shall process Owners’ appeals of decisions that cannot be resolved at the Hub or Program Center level. Owners must submit a letter describing the issue, along with supporting documentation, to the Hub or Program Center. The Hub in turn, will forward the Owner’s appeal to the Director of Asset Management for response.

If you have questions, please contact the Project Manager in the Hub/Program Center with jurisdiction over the subject project or the Desk Officer in the Office of Asset Management, Headquarters. ___________________________________ Carol J. Galante Acting Assistant Secretary for Housing – Federal Housing Commissioner

**EMPLOYMENT OPPORTUNITY**
Position of Property Manager

Acacia Network, a progressive community based organization located in the Bronx, offering Primary Care and Mental Health programs, seeks a Property Manager.

The Property manager provides property management services for ACACIA affordable housing properties while maintaining the integrity of the physical asset and maximizing the returns from the asset in accordance with the program guidelines. Responsibilities include: prepare and track budget and expenses; manage tenant relations and communications; screening applicants for occupancy in accordance with state and federal guidelines for the specific property; marketing/lease enforcement; coordinate vacant turnaround activities; responsible for the overall operations of assigned properties; solicit bids and approval of payments for maintenance of property; coordination of maintenance staff assigned to the properties; conduct regular site inspections and prepare reports; preparing & implement budgets; address violations. Managing Agent of record representing owners in Landlord Tenant litigation, Violation remediation, Insurance claims, etc. On call Emergency Response (24/7) on an as needed basis.

In this role, the Property Manager supervises all on-site personnel at properties
assigned and personnel assigned on special projects. The Property Manager will
maintain relationships with other departments within the company, including
accounting, data processing, development and acquisitions; as well as maintain
relationships with clients (e.g., owner, syndicator, general partners, and City, State
and Federal agencies) as appropriate, and with the community, suppliers, vendors,
and professional servicing the company or property.

Responsibilities will include, but are not limited to:

A. Maintaining the Physical Asset

1. Supervises the maintenance staff.
2. Delegates and supervises scheduling of maintenance work.
3. Completes regular inspections and follow up on maintenance work.
4. Selects, supervises, and reviews all contractual service.
5. Confirms that all vacant units/areas are ready to lease.
6. Regularly inspects grounds, interior hallways, and all common hallways.
7. Approves expenditures in accordance with the budget.
8. Places orders, when approved, for all maintenance and cleaning supplies, materials, and equipment.
9. Makes recommendations for physical repairs and/or replacements.

B. Marketing and Leasing:

1. Supervises on-site manager and/or leasing personnel.
2. Approves all advertising and marketing programs.
3. Completes regular market comparisons.
4. Completes weekly and monthly reports.
5. Reviews all rental applications and lease forms for accuracy and compliance with resident policy.
6. Makes recommendations to improve marketing and leasing programs.

C. Rental Management:

1. Maintains effective resident relations.
2. Implements rent collection policies and collection programs.

D. Financial Reporting and Control:

1. Prepares budget.
2. Prepares monthly financial accounting, reporting, and explanation of variances.
3. Approves invoices for payment.
4. Reports and controls payroll information to bookkeeping on a timely basis.
5. Maintains inventory controls of all equipment and supplies.
6. Makes recommendations for more efficient use of allocated funds.

E. Administration

1. Prepares management plan.
2. Maintains property files and accounts.
3. Handles employee selection, training, and control, and assures that all supervised employees comply with the appropriate policies and procedures.
4. Established programs for employee development.
5. Interfaces with outside professionals regarding legal, accounting, insurance, tax, and other matters, as appropriate.
6. Completes all duties in a professional and timely manner.
7. Handles any emergencies that may arise on site.
8. Communicates all problems and makes recommendations to immediate supervisor.

Qualifications

• Must be detailed oriented and have ability to multi-task
• Writing skills. Knowledge of accounting principles
• Possess effective time management skills
• Knowledge of local, state, federal programs and regulations related to Property Management, Low Income Tax Credit, Rent Administration
 Experience working and/or interacting with HPD, DHCR, HPD/NYCHA Section 8, LISC, NYEF and Enterprise
• Computer skills, including Microsoft Word, Excel, and Yardi Systems preferred.
• Knowledge of local, state and federal housing programs and regulations
 Writing skills. Knowledge of accounting principles
• Certifications, e.g., HCCP, C3P, COS, TCs, RAM, ARM or any other recognized industry training preferred.
• Experience in Property Management
• Be able to pass background check and fingerprint clearance
• Be able to provide 3 non-family references
• Bi-lingual preferred (Spanish)

PLEASE SUBMIT RESUMES TO .(JavaScript must be enabled to view this email address) or via fax at 347.649.3078

JOB OPPORTUNITY!!!
Assistant Manager Position

Looking for an Assistant Manager,* RAM Certified*, to have excellent interpersonal and computer skills. Must be able to be a multi tasker and have five years of real estate property management experience in a large on site management office. Be able to do apartment inspections and work with contractors on projects on site. Salary is commensurate with experience.

Henry A.Dubro, Managing Director/General Manager
Trump Village Section 4, Inc.

.(JavaScript must be enabled to view this email address)
No phone calls please.

JOB OPPORTUNITY!!!
Looking for a suitable Maintenance Directors for large properties in Brooklyn and Queens.

We are looking for a suitable Maintenance Directors for large properties in Brooklyn and Queens.

It can be someone with a superintendent experience that can oversee a large property and a big staff or someone with management experience who is very strong on building maintenance.
Salary is commensurate with experience.

RAM certified is preferred.

Henry A.Dubro, Managing Director/General Manager
Trump Village Section 4, Inc.

.(JavaScript must be enabled to view this email address)
No phone calls please.

The Future of Management
By Dan Margulies

There were 303,900 Property, Real Estate and Community Manager jobs in the United States in 2010, according to the U.S. Bureau of Labor Statistics, and the industry is expected to grow 6% by 2020 – slower than the 14% job growth projected for the nation as a whole.

Even worse, the BLS was overly optimistic a decade before when property management jobs totaled 315,000 and were projected to grow by about 12% by 2010.

Clearly, growth in population and booming housing construction were expected to drive demand for managers. In fact, by some measures, there were 60,000 more management jobs in 2007.
Then housing fell off a cliff in 2008 and the jobs disappeared as well.

What happened to the industry?

The units finished in the go-go years didn’t just disappear. About 16 million units were added from 2000 to 2009. More than 80% of those, however, were single family homes. While managing foreclosed single family homes is a growing niche at the moment, it is still just a niche and will likely shrink again as the buyers come back.

More important to the jobs outlook, is how the industry is organized and operates. The economic collapse definitely accelerated changes. Management companies have consolidated to reduce the number of support and back office personnel. Technology allows more productivity, increasing the number of units a single manager can oversee. Tighter margins force managers to oversee more units whether they really can manage them well or not. Even specialization plays a role, instead of adding managers, some companies might add accountants, lawyers, or call center operators.

Owner/Managers are also consolidating. The Census Bureau did a survey in 1995-96 that found just 2.1% of apartment buildings were owned by Real Estate Investment Trusts and less than 10% by corporations. The survey is being redone this year and those percentages are expected to be doubled. In addition, large corporate builders and owners are acquiring larger buildings. Owning more of the larger properties will mean more units in corporate ownership. Third-party managers are either frozen out or have to compete for a few large portfolios rather than single buildings. The losers, obviously, lose big.

What does this mean for the aspiring manager, or the owner or association looking to hire a manager?

For managers it means you have to be absolutely up to date on technology, law, products and services. You have to communicate your value to ownership and emphasize any special added value you or your company can bring. Professional recognition, such as the Registered in Apartment Management certification, becomes more valuable both because of the credential and because it requires continuing education. You can’t know enough.
As for companies, larger managers can offer group purchasing discounts to distinguish themselves from smaller agencies. Or, conversely, special knowledge of heating systems and building efficiency can distinguish a savvy small company from a larger competitor with less experienced staff.

Local knowledge is also key. Familiarity with clearing violations, unique City laws on, say, smoke detector replacement, or how to comply with lighting or signage requirements, etc., can save owners money and prevent liability.

The times are also going to force managers to look closely at their own business plans. Can management survive as a loss leader for access to brokering apartment sales if the sales market remains slow? Does it make sense to charge based on a percentage of rents or revenue, or are fee per unit or flat minimums required? How selective can or should you be in seeking or accepting new business?

Looking ahead, the BLS’s prediction that management jobs will grow more slowly than jobs generally is hard to argue with. Some growth will come from new construction when the economy picks up, although new building permit numbers indicate that will be a few years yet. The trend to consolidation into midsize and larger companies seems likely to continue as requirements for technology and support in back offices put smaller operators under cost pressures.

ABO seminar on The Future of Residential Management
Join us for a sandwich and ABO seminar on The Future of Residential Management at 12 p.m. September 12th

Join us for a sandwich and ABO seminar on The Future of Residential Management at 12 p.m. September 12th at the Hotel Pennsylvania during the New York Association of Realty Managers Expo. Sign up for your free registration to get in http://www.nyarm.com/sept12_Seminar.htm

JOB OPPORTUNITY: Assistant Manager
Preferred to speak Russian and excellent English

I am searching for an Assistant Manager to work with me on site in South Brooklyn, Coney Island at a large Cooperative with over 1200 units and a large staff. Needs to have 1-3 years experience and preferred to speak Russian and excellent English. To know Excel Spreadsheet and Microsoft Work. RAM preferred.

To send cover and resumes to me: * *Henry.Dubro@ellimanpm.com

Regards,
Henry Dubro,ARM,ADV.RAM,
Managing Director/General Manageris
Trump Village Section, 4 Inc.
Douglas Elliman Property Management

Apartment Firms Staff Up to Meet New Rental Demand
NMHC Compensation Survey finds property management, leasing and maintenance in high demand

Apartment Firms Staff Up to Meet New Rental Demand, Survey Says
NMHC Compensation Survey finds property management, leasing and maintenance in high demand

Contact: Jim Lapides, 202/974-2360, .(JavaScript must be enabled to view this email address)
For Release: August 16, 2012
WASHINGTON, D.C.— Reflecting the growing demand for apartment homes, nearly two-thirds (65 percent) of multifamily firms grew their staff last year and 62 percent increased their merit bonus pool, according to the National Multi Housing Council’s (NMHC) 2012 Apartment Compensation Survey. The annual survey, based upon the data of over 50,000 employees at 93 major apartment firms, provides detailed analysis of industry hiring practices – including salary, variable pay and total compensation of nearly 100 industry positions.

Firms that added staff increased their total number of employees by an average of 11 percent, with maintenance, leasing and property management positions being in the highest demand. These same positions were also most likely to receive a salary increase, typically 3 percent. Overall, 81 percent of firms reported an increase in their total compensation budgets.

The uptick in hiring comes on the heels of a strengthening multifamily market. Over three quarters (77 percent) of firms rated their financial performance better in 2011 than 2010, and 78 percent expect 2012 to improve further. The optimism also feeds into projected 2013 budgets, as 69 percent expect their merit budgets to grow next year.

Additional survey findings:

The staff turnover rate was a steady 30 percent in 2011 and 31 percent over the three year period of 2009-2011.
In addition to salary, bonus and health benefits, 53 percent of apartment firms offered a wellness program, nearly half (49 percent) of firms allowed telecommuting and 23 percent provided a flexible hours program.
More than 60 percent of firms offered education assistance to various staff, and more than 74 percent offered housing discounts to on-site property management or maintenance staff.
NMHC’s 2012 Apartment Compensation Survey was conducted from April to June 2012 by FPL Associates L.P., providers of specialized compensation and management consulting solutions to the real estate industry. The survey includes detailed compensation data for 94 apartment industry positions, ranging from top executives to leasing consultants. Additional highlights include:

Multiple new positions, like Head of Marketing, VP of Application Development and IT Manager.
Expanded sections on short- and long-term incentive programs.
Statistics on employee turnover, paid time off, telecommuting and other staffing/compensation strategies.
Enhanced information on salary increases for this year and projected budgets for next year.
The survey is available for purchase at $2,800 ($1,800 for NMHC members). For more information or to purchase the survey, visit http://www.nmhc.org/goto/60898.

  • * *

Based in Washington, DC, NMHC is a national association representing the interests of the larger and most prominent apartment firms in the U.S. NMHC’s members are the principal officers of firms engaged in all aspects of the apartment industry, including owners, developers, managers and financiers. One-third of Americans rent their housing, and over 14 percent live in a rental apartment. For more information, contact NMHC at 202/974-2300, e-mail the Council at .(JavaScript must be enabled to view this email address), or visit NMHC’s web site at http://www.nmhc.org.

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Your text to link here…

2012 NYC RAM Course starts Wednesday September 12th!
2012 NYC RAM Course starts Wednesday September 12th!

Accelerate Your Career Today!
2012 NYC RAM Course starts Wednesday September 12th! Classes will be held every Wednesday through December 19th, 2012, 6:00pm – 9:00pm.

Course Location:
The Community Room at
Knickerbocker Plaza
1751 Second Avenue
(between 91st and 92nd Streets)
New York, NY 10128

Registration Contact Information:
Olga Chernomorets
Email: .(JavaScript must be enabled to view this email address)
Phone: 212-385-4949

Where are management jobs growing?
Where are management jobs growing?

Where are management jobs growing? The big boom seems to be single family rentals according to this article: http://rismedia.com/2012-07-28/single-family-rentals-ignite-management-boom/

Signs of a Turnaround in the U.S. Housing Market
Signs of a Turnaround in the U.S. Housing Market

Signs of a Turnaround in the U.S. Housing Market Harvard Research Center Releases The State of the Nation’s Housing 2012

CAMBRIDGE, MA – Housing markets are showing signs of reviving, concludes The State of the Nation’s Housing report released today by the Joint Center for Housing Studies of Harvard University. “While still in the early innings of a housing recovery, rental markets have turned the corner, home sales are strengthening, and a floor is beginning to form under home prices,” says Eric S. Belsky, Managing Director of the Joint Center for Housing Studies. “With new home inventories at record lows, unless the broader economy goes into a tailspin, stronger sales should further stabilize prices and pave the way for a pickup in single-family housing construction over the course of 2012.”

Rental markets are on the mend thanks to sharp drops in construction and an increase of over 4.4 million renters since 2005. Rental vacancy rates are falling, rents are increasing, and multifamily construction is up solidly. In contrast, the nation’s homeownership rate continues to slide. “Surveys consistently find that the overwhelming majority of young adults plan to own a home in the future, but many would-be buyers have stayed on the sidelines waiting for the job outlook to improve and house prices to stop falling,” says Belsky. “But as markets tighten, these fence-sitters may begin to take advantage of today’s lower home prices and unusually low mortgage rates. With rents up, home prices sharply down, and mortgage interest rates at record lows, monthly mortgage costs relative to monthly rents haven’t been this favorable since the early 1970s.”

While gaining ground, the homeowner market still faces a number of challenges, the Harvard report cautions. The backlog of roughly two million homes in the foreclosure process will keep distressed sales elevated and could keep price increases in check in places hardest hit by foreclosures. At the same time, growth may remain muted due to the more than 11 million homeowners who owe more on their mortgages than their homes are worth. These owners cannot sell without incurring a loss and have no home equity to borrow against to fund major remodels.

“What the housing sector needs is a sustained increase in jobs to bring household growth back to its long-term pace and spur demand,” says Chris Herbert, Director of Research at the Joint Center for Housing Studies. “The country has seen new household formations fall well below expected long-run rates due to a falloff in young adults being able to move out on their own and a slowdown in net immigration. Even in 2011, fewer than 700,000 households were added and that’s well below the 1.2 million or more annual trend expected under more normal economic conditions.”

In the meantime, the inability of many homeowners to refinance, together with rising rents and high
unemployment, has lifted the number of households spending more than half their income on housing to record heights. Between 2007 and 2010, the number of US households paying more than half of their income for housing rose by an astounding 2.3 million, bringing the total to a record 20.2 million. “While improving housing markets will benefit the economy and many existing homeowners, it will also increase the cost pressure on others,” Herbert notes. “Even as the recovery takes hold in many markets across the country, we cannot lose sight of the long-run challenge of providing affordable housing for the most vulnerable, nor forget the damage done to foreclosure-ridden neighborhoods, which will take years to heal.”

Download a PDF of The State of the Nation’s Housing 2012 at:
http://www.jchs.harvard.edu/state-nations-housing-2012

_for More information, Contact
Kerry Donahue, (617) 495-7640, .(JavaScript must be enabled to view this email address)_

How Much Is That Window in the Building?
How Much Is That Window in the Building?

How Much Is That Window in the Building?
By Dan Margulies
Executive Director, Associated Builders and Owners of Greater New York

I think I’ll run down to the supermarket and by some heating oil. Oops, no, that won’t work. They don’t have #2 oil.

Well, maybe I’ll have the super run down to the hardware store where we have an account and get some insulation for the pipes in the basement. He knows what to get, right?

Most managing agents are not trained purchasing agents, and often their companies don’t have a purchasing department either…but they should. An apartment building is a business with a big budget. Would you invest in a public company that didn’t evaluate a hundred thousand dollar contract carefully? Then why would you own a building that didn’t buy electricity or oil or boilers just as professionally?

Some management companies have approved vendor lists. Others do not. In both cases a specific vendor is often chosen by an agent shouting over the partition to ask “anyone know a good plumber?”

Major capital expenses are often treated just as cavalierly. Boilers are replaced with the boiler the installer recommends, usually the size or type that was there before. Smarter agents and owners know that an energy engineer can usually save thousands on the installation and operation if the system is sized and specified more scientifically, and then bid out.

Another common problem is inertia. Someone got a good deal on cleaning supplies in 1980 and the building is still using the same supplier. The deal isn’t good anymore, but no one checks. Even more commonly there is a salesman or distributor who the agent has known for years. “Don’t worry,” he says, “I’ll get you the best price.” Well, maybe, he’s a good guy, but should you really not check?

Of course, you don’t want to change vendors just for the sake of change. And, sometimes a supplier with reliable service is worth a little more.

The bottom line is that professional purchasing means routinely researching products, checking references, getting bids and evaluating offers. Every purchase over a certain amount should be reviewed by an owner or board. No contract over a certain amount should be renewed without new bids. Another, lesser, amount should still trigger a full review every year or two or three. Even that hardware store where the super is sent to buy a can of paint should be evaluated occasionally – along with the kind of paint he’s allowed to buy.

Every agent can’t be an purchasing expert in addition to his or her other duties, but every building can have purchasing policies that keep the process under control.

(ABO is an association of multifamily developers, owners, and managers in New York. ABO also administers the national Registered in Apartment Management certification program to encourage professionalism and ethical standards in the industry.)

Job Opportunity
Job Opportunity

I was contacted regarding a job opportunities for leasing assistants and property managers in New York City.
Please contact me for details!

Olga Chernomorets
Membership Coordinator
National Associated Builders and Owners
80 Maiden Lane, Suite 1503
New York, NY 10038
212.385.4949
.(JavaScript must be enabled to view this email address)

Does your agent have a conflict of interest?
Does your agent have a conflict of interest? By Dan Margulies - Executive director, NABO

Does your agent have a conflict of interest?

By Dan Margulies
Executive director, National Associated Builders and Owners

Sometimes the interests of a managing agent conflict with the best interests of a property owner, co-op board, or building. I am not talking about corruption, but ‘honest’ conflicts.

For example, would you rather pay higher maintenance fees or an assessment, or risk a roof leak? Would you pay more now to save energy and money over the next five years? How about ten years?

An agent who wants to stay employed may not want to tell you to levy an assessment, or, if you are a private property owner, to accept reduced income or a loss for a year. He may not want to encourage new debt that will raise maintenance costs.

The managing agent walks a fine line between doing what’s best for the building and satisfying the needs and wants of owners or board members. In the best of all possible worlds, those interests would be the same. In this world, they are not.

Say you were a single family home owner and you learned that more energy efficient windows would pay for themselves in five years with fuel savings. The upfront cost would be $10,000. You figure you will spend another ten years in the house, you have the money, and you go for it. After ten years, you are $10,000 richer and have a more saleable home.

Now say you are one board member in a 100 unit co-op facing a similar analysis. Only the cost is $200,000, you only have $50,000 in your reserve fund, and your neighbors might stay in the building anywhere from another month to 50 years.

One could argue that the fuel cost savings justify borrowing to fund the improvement, adding perhaps $40 a month to maintenance if you borrowed the full amount for 5 years. Or, maybe you could justify a $2000 per apartment assessment.

The question is: what’s in it for the agent to take a position when, if he does nothing, your fuel costs stay the same except for inflation, there is no controversy with other shareholders or partners, and you don’t know any better?

Obviously, the same analysis will apply to roof replacement vs. top floor leaks and heat loss; boiler replacement, energy control systems, video security, façade work, etc. On top of that, if you have a good agent who recommends sensible changes despite the risk to his job, there will be some owners who question whether his recommendations are driven by other conflicts. For example, they will wonder if the building really needs a new roof or if maybe the roofer and agent have a side deal.

So, what do you do?

Every building needs a long term capital plan and replacement strategy, developed with an experienced agent and consulting engineers. You can’t leave the building’s well being just to an agent’s suggestions – for the reasons stated above – but you can’t afford to waste his or her expertise.

While offering plans in New York require an estimate of required reserves and an engineering report, those numbers aren’t enough. In some other states, co-ops are required to have both an operating budget and a capital budget showing the useful life of every component and reserves or financial plans for timely replacement. The two budgets have to reflect each other. You should do that, but even that’s not enough to deal with improvements that aren’t simply replacement.

By periodically hiring consulting engineers to update your building’s capital plan and condition, you can pave the way for an honest discussion with the managing agent about prudent improvements, and remove the motivations for conflict.

HUD Section 8 Renewal Guidlines - NEW
May 24, 2012

HUD has released several of the long-awaited Section 8 Renewal Guide changes. As anticipated, what has been released is not the complete set of draft changes that were published some time ago; HUD did indicate recently that the changes would be released in pieces. This is the first piece.

The attached memorandum has not yet been posted on HUD’s website. The attached memorandum lists the changes now being implemented, and includes revised Renewal Guide pages. By and large, the changes are effective immediately.

Gregory J. Carlson

Renewal_Guide_changes.pdf

Congratulations to RAM Dean Gail Badger
Congratulations to RAM Dean Gail Badger

National Associated Builders and Owners congratulates RAM Dean Gail Badger, who was awarded a Doctor of Ministry degree by the New York Theological Seminary this week. Her dissertation was about “faith-based property management” and she is working on adding her ideas to the RAM curriculum for a new course sponsored by the Seminary next fall. Gail is aiming the course at religious and non-profit housing owners who need to understand the mechanics of property management.
Of course, Gail celebrated with a cake that had the RAM logo.

HUD Updates
March 13, 2012

HUD Update
March 13, 2012

HUD Funding:
The Congressional “Super Committee” was tasked with coming up with $1.5 trillion in debt savings over a ten year period. Their failure to do so, has forced agencies, such as the Department of Housing and Urban Development (HUD) to implement mandatory budget cuts to its fiscal year (FY) 2012 budget. Overall funding for the department will be down $1.1 billion from the net levels in FY 2011. Expect to see additional across the board cuts of 7% in 2013 and 8% in 2014.

Performance Based Contract Administration (PBCA):
On Friday, March 1, HUD issued a Notification of Funding Availability (NOFA) for the PBCA Program for the administration of Project-Based Section 8 Housing Assistance Payment Contracts. The closing date for applications is April 10, 2012. HUD anticipates that Annual Contributions Contracts (ACCs) awarded under this NOFA will become effective on October 1, 2012. This contract will be a two year term. See link for more information:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/grants/fundsavail/nofa12/pbcaSec8

Real Estate Assessment Center (REAC)
The REAC will be issuing trends found during previous REAC inspections. New and clearer definitions will be issued and new software (4.0 vs. the current 2.3) will be implemented by the summer of 2012. There will be a point cap for deficiencies (e.g., a 7.5 cap on site deficiencies, a 10 point cap on project wide deficiencies, a 0 point cap on common areas and a 5 point cap on unit deficiencies). A REAC pilot program on reducing the number of multiple inspections will be conducted in six states.
On the REAC Financial side, all audits are to be reviewed for project financial health. If the project does not pass the REAC benchmarks, the project must submit a financial plan. HUD is discussing issuance of internal financial benchmarks.

Surplus Cash:
REAC Financial audits are up to date. New guidance will be issued on the old and new programs. If you receive a finding indicating that you spent money from surplus cash when it should have been from the replacement reserve account, you may appeal for a waiver at the local HUD hub.

Section 8 Renewal:
New Section 8 Renewal Guidance will be issued soon. Highlights include:
• No more extension of Section 8 contracts (only Termination and Renewals);
• New rent Comps for Tax Credit deals;
• Option 4 (Exception Project Renewals) will use current debt service and not original debt service and they must use Rent Comparability Studies (RCS);
• Appraisers may need to produce more justifications for higher rents.
Expect HUD to issue additional updates on an ongoing basis.

Operating Cost Adjustment Factor (OCAF)
The automatic OCAF was released nationwide on March 1, 2012.

Rent Comparability Study (RCS)
The appraiser must submit further documentation to justify any proposed rents over 110% of Fair Market Rent (FMR) in your area. The appraiser must justify the higher rent.

HUD Other:
HUD’s Green initiatives can result in a 27% reduction of energy costs.
New guidance on Replacement and Reserve will be issued soon.
New Guidance on 2530 will be issued soon.
A pilot for the 223(f) loan program to reduce processing time and protocol is expected to be released in May of 2012. The rehab limits will be increased to $40,000.00 per unit.
HUD will be conducting training sessions on preservation programs in some cities and by satellite. Go to http://www.Tdpsvs.com/hud for training material and information.
The update to the 4350.3 Handbook is expected to be issued soon…

New HUD Notices and Federal Register Notices
01.19.12

HUD Notices

* HUD Notice H 2011-35 “Hub and National Loan Committees” (December 29, 2011)

The notice extends and revises Loan Committee Housing Notices H 2010-13 and H 2011-04, and all previous administrative guidance regarding Loan Committee policy and procedures. It also incorporates best practices based on operational experience and addresses questions which have been raised. The purpose of a Loan Committee approval structure is to align the Hub and Program Center loan review processes with management of credit risks, and to ensure the integrity and stability of the FHA Insurance Fund. Credit risk management, as implemented through a Hub and National Loan Committee approval process, provides a method to ensure oversight of Hub and Program Center commitment and credit authority, and consistency in underwriting throughout the nation, while providing a platform to share best practices.

The notice may be accessed here: http://portal.hud.gov/hudportal/documents/huddoc?id=11-35hsgn.pdf

* HUD Notice H 2011-36 “Large Loan Risk Mitigation Policies” (December 29, 2011)

The notice addresses the increased risks to the insurance fund presented by loans above $25 million (M) in size and/or which support projects in excess of 150 housing units, or by loans and projects sized at certain higher thresholds, depending on the insurance program. The notice also spells out underwriting standards that will be applicable to such loans in regards to Debt Service Coverage Ratio (DSCR), Loan to Cost Ratio (LTCR), Loan to Value Ratio (LTVR), funding for Initial Operating Deficit (IOD) and Debt Service Reserve (DSR), in addition to other underwriting and credit requirements for such loans.

The notice may be accessed here: http://portal.hud.gov/hudportal/documents/huddoc?id=11-36hsgn.pdf

Federal Register Notices

* HUD Federal Register Notice “Notice of Submission of Proposed Information Collection to OMB; Inspector Candidate Assessment Questionnaire” (December 23, 2011, Docket No. FR-5480-N-123)

HUD has submitted a proposed REAC Inspector questionnaire to the Office of Management and Budget for approval. The form is a questionnaire that provides PIH-REAC with basic background information about the individual’s inspection skills and abilities. NAHMA is trying to obtain a copy of this document from HUD in order to review it.

A copy of the notice may be found here: http://www.gpo.gov/fdsys/pkg/FR-2011-12-23/pdf/2011-32950.pdf

* HUD Federal Register Notice “Notice of Submission of Proposed Information Collection to OMB; Limited English Proficiency Initiative (LEPI) Program” (December 29, 2011, Docket No. FR-5480-N-124)

These documents provide additional information to help HUD select grantees and provide additional monitoring and oversight tools for the program.

A copy of the notice may be found here: http://www.gpo.gov/fdsys/pkg/FR-2011-12-29/pdf/2011-33408.pdf

Copies of the reporting documents may be found here: http://www.reginfo.gov/public/do/PRAICList?ref_nbr=201112-2529-001

Thank you and I hope you are enjoying the start of your new year.

Employment Opportunity
Looking for an on site account executive for a Property on the West Side of Manhattan

Looking for an on site account executive for a Property on the West Side of Manhattan that has experience in HPD Mitchell Lama Programs. It is a cooperative housing company. Must have at least 5 years of experience and the salary is commensurate with skills.
Please contact me at .(JavaScript must be enabled to view this email address) as the first step. Thank you and Happy New Year to all.

Henry A. Dubro, ARM, Adv. RAM
Douglas Elliman Property Management, Inc.
Big Six Towers, Inc.

ABO E-News 11-18-11
ABO E-News 11-18-11

h2. E-News
November 18, 2011

State Supreme Court Judge Eileen Rakower this week rejected a tenant case to bar the sale of housing court records for tenant screening. The tenant argued that the courts were allowing tenants to be blacklisted whether they were at fault in litigation or not, but the court system argued that selling the data was simply an efficient way to comply with public information requirements and that the data was available in other forms anyway.

Congress yesterday approved increasing FHA loan guarantee limits back to a maximum $725,750, although lower loan limits remain for Fannie Mae and Freddie Mac. NAHB was a leader in the battle to raise the limits to sustain the fragile housing market.

Bruce Ratner detailed plans for a 32 floor prefab steel residential tower at Atlantic Yards, claiming his architectural and engineering teams could overcome issues with cross bracing components. Sixty percent of the construction would be done in a factory where union wages are less than half the union wage for on site construction workers.

Last week Public Advocate and mayoral contender Bill de Blasio suggested solving the problem of delays and computer glitches processing Section 8 renewals at NYCHA by suspending the issuance of termination notices. He didn’t explain what property owners were supposed to do if rents were not paid and terminations were not issued. Nor did he deal with the issue of what happens if tenant contracts are terminated late and the building owner is stuck for the rent in the meantime.

ABO E-News 11-11-11
ABO E-News 11-11-11

h2. E-news

The Division of Housing and Community Renewal held a hearing yesterday on a proposed 7.8 percent 2012-13 Maximum Base Rent Factor. The formula on which the factor is based showed a 13.66 percent increase in property taxes on rent controlled buildings and a 26.51 percent increase in water and sewer charges from the last cycle. The largest component of the formula is an allowance for operations and maintenance based on the Rent Guidelines Board price index research, which increased just 3.35 percent…not counting fuel which is compensated separately by the fuel pass-along.

An energy engineer with the Community Preservation Corporation noted at a seminar on intelligent buildings yesterday that the average cost of energy of all kinds (heat, light, cooling, etc.) in existing New York multifamily buildings is about $3 per square foot, although there is a wide range. All the experts agreed that a 15-20 percent cut from minor upgrades and energy management is relatively easy. One ABO member just cut his electric bill on a building by 20 percent simply by letting ESCO’s bid for his business on the ABO Energy Marketplace. Intelligent owners are as important as intelligent buildings. What are you waiting for?

Employment Opportunity
AKAM is a fast growing Residential Property Management Company

*AKAM is a fast growing Residential Property Management Company *and we are searching for an *experienced Portfolio Manager *to join our team. The perfect candidate will have 5-7 years of experience managing coops/condos in NYC. Must be articulate and have the ability to multi-task. Effective oral and written communication skills and computer knowledge are essential. Very competitive salary and benefits package, including 401k. Email resume with salary requirements to .(JavaScript must be enabled to view this email address).

Employment Opportunity
Big Six Towers, Inc. Employment Opportunity

Big Six Towers, Inc.

The salary is in the low forties and person needs to know Mitchell Lama rules and regulations, Maintenance and Computer Literate. It is an on site job located in Woodside, Queens.

Please submit resumes to .(JavaScript must be enabled to view this email address)

Massey Knakal Multifamily Summit
Massey Knakal Multifamily Summit, November 16th 2011

Get $50 off your ticket for the Massey Knakal Multifamily Summit, November 16th, with the discount code P-ABOFIFTY

Massey Knakal Multifamily Summit
McGraw-Hill Conference Center
1221 Avenue of the Americas (49th & 6th)
New York City
Wednesday, November 16, 2011
8:00 am – 4:30 pm

ABO E-News 10-21-11
The Department of Transportation this week opened a new online Street Manual, a guide and map to street work, permit application

The Department of Transportation this week opened a new online Street Manual (http://www.nyc.gov/html/dot/streetworks/html/home/home.shtml), a guide and map (http://gis.nyc.gov/doitt/nycitymap/template.jsp?applicationName=DOT) to street work, permit application and street closing information. The idea is to coordinate information from capital plans, utility work, and private permits to limit conflicts. The portal even has links to weekly resurfacing plans (http://www.nyc.gov/html/dot/html/motorist/resurfintro.shtml ).

New York City Managers Face Oil to Gas Conversion Challenge
New York City Managers Face Oil to Gas Conversion Challenge

Condos and Co-ops Can Benefit from New Innovative Financing to Assist in Oil-to-Gas Conversions

Earlier this year, Mayor Michael Bloomberg took another bold step as part of his PlaNYC environmental program by announcing the enactment of rules aimed at phasing out the use of No. 6 heating oil in New York City by 2015 and the use of No. 4 heating oil by 2030. Mayor Bloomberg’s vision is to have New York City lead the way in becoming the first environmentally sustainable 21st century city. For residential condominium and cooperative apartment owners who have a building burning a “dirty” heating oil, the need to convert is a significant and immediate priority. According to a recent Environmental Defense Fund (EDF) report, this mandate will affect close to 10,000 buildings, or roughly 1% of the city’s buildings, which are responsible for 86% of the city’s heating oil soot pollution.

A Case for Conversion
Dirty heating oils Nos. 4 and 6, known as residual fuels, constitute the sticky and soot-laden remains of the refining process. The black smoke emitted by burners fueled by Nos. 4 and 6 oils is full of particulates and sulfur dioxide, both of which are extremely harmful to the respiratory health of local residents. The EDF reports that the burning of these oils has contributed to New York’s asthma hospitalization rate of children to be twice the national average, with the Bronx being four times the national average.

The good news for condos and co-ops is that a conversion from oil to gas not only has a positive environmental impact, but can be advantageous from an economic perspective as well. In many instances, building owners can reduce annual fuel burning costs by as much as 30% with a properly designed oil-to-gas conversion. Then why,
one might ask, have co-ops and condominiums been reluctant to make the switch? According to a recent EDF report on barriers to energy efficiency, the significant capital cost of converting from oil to gas is the biggest deterrent for property owners. While owners have relied on traditional funding sources, today’s tough economic climate combined with a more difficult lending environment, have led many building owners to delay a much needed conversion. With this in mind, building owners are primed for new alternative sourcing programs and several have recently been introduced that have attracted the attention of condos and co-ops (“associations”) as a conversion becomes mandatory.

Financing Opportunities for Oil-to-Gas Conversions
First, let’s review what have been the traditional funding sources for a major capital investment, such as an oil-to-gas conversion. A condo or co-op could use cash reserves; borrow against the association’s line of credit or take out a second mortgage; or finance through the equipment vendor or energy service company (ESCO). Lately, several creatively-designed financial options have been developed as a way of offsetting the drawbacks commonly associated with the aforementioned means of funding a major retrofit.

Cash Reserves to Pay for a Retrofit Project
If an association can afford it, paying for an energy retrofit with cash reserves makes strong economic sense, since besides the initial upfront cost, there would be no long-term loan payback period or interest associated with borrowing money. While this option may be suitable for associations with a large cash reserve, many condos and co-ops today simply are not in strong enough economic positions to pay for a retrofit in this manner. Adding to this difficulty is the fact that many associations are facing other needed capital projects which require funding.

Financing a Project through Loans
The most popular source of funding to date has been securing a loan through a financial institution, requiring an association to take out an additional mortgage on the property or increasing its existing line of credit. The good news is that a loan of this nature allows a building to avoid a substantial upfront capital investment. However, these loans require a long-term payback program with interest that will eventually far exceed the initial cost of the retrofit project. If the association does not have an existing line of credit, there are added legal burdens. In order to take out a loan, condominium by-laws most often require a supermajority (usually 66 2/3%) vote for approval, and co-ops often have restrictions with regards to their existing underlying mortgages. Additionally, while financial institutions can provide many associations with loans for capital improvements, some Boards may not be convinced that the energy savings will materialize, yet they are still responsible for the loan. In light of this, associations have been looking for alternative means of financing a retrofit through loans.

One such creative financing program is FS Energy Loans, introduced earlier this year by FS Energy, the energy management subsidiary of Cooper Square Realty and its Goodstein Division. FS Energy has partnered with top-tier financial institutions to arrange for loans to residential buildings seeking to make capital investments to improve energy efficiency and reduce operating costs. The loans are the first of their kind to be implemented on a large scale for residential real estate properties. FS Energy facilitates these loans and the financial institutions rely on FS Energy’s expertise to provide and document the energy savings achieved.

FS Energy loans offer preferred financing without many of the traditional drawbacks commonly associated with financing. These loans feature attractive interest rates, are unsecured by the property and are paid off entirely from the savings derived from the improvement. Transaction costs and approval time are minimized. Most importantly, no increases in monthly carrying costs are required to be imposed or budgeted. To avoid long-term payback periods, the loan terms are only two years longer than the projected payback period, meaning savings will always exceed loan payments and the loan will be paid off quickly. Although the legal issues pertaining to borrowing cannot be avoided, associations will realize immediate savings and continue to save once the loan is retired.

Financing Through a Vendor or ESCO
Another popular method is to finance through an equipment vendor or through the ESCO which provides the commodity change. Here again, the building owner avoids significant upfront costs. Unlike loans, there are usually no interest payments, and the vendor or ESCO takes the perceived risk of the savings being achieved. However, many of these companies require either a back-up loan or result in vendor ownership of the equipment. Both of these have drawbacks – a back-up loan has the same issues as discussed above while vendor ownership of equipment can potentially result in legal conflicts with association documents and/or underlying mortgage lenders. Another potential downside when financing through a vendor is they will have the ability to choose the design, specifications and quality of workmanship. The association might not get a project that has the appropriate lifespan or quality. Often, the vendor’s interest is based on the short-term savings, whereas the Board is more interested in value and long-term operating costs.

Again, building upon the benefits and responding to the drawbacks of these types of financing options, FS Energy recently announced another economically feasible alternative called CRES (Cost Reduction through Energy Savings). FS Energy, through its corporate parent FirstService Corporation, has created a fund from which the initial capital cost of the conversion will be paid. Developed specifically for oil-to-gas conversions of buildings managed by Cooper Square Realty and its Goodstein Division, CRES is a customized shared savings program that allows a building to pay for the cost of a retrofit project directly from the savings associated with the conversion. Importantly, it requires no capital investment or increase in monthly operating expenses. This model is similar to the vendor financed or ESCO model discussed above, with some important distinctions. The association can choose its own design professionals, achieve the best prices through competitive bidding, and can select the project which the Board judges to be in the best interest of the co-op or condominium. No back-up loan is required and the association has immediate and full ownership of the equipment.

Following the completion of the retrofit, the association will share the energy savings with the fund for a predetermined period, after which the fund bows out and the savings go completely to the association. Because of the nature of this financial agreement, the project can move forward solely with board approval; there is no need for a supermajority vote and underlying mortgages are not affected. Lastly, any Board reluctance due to skepticism of the energy savings is eliminated since FS Energy takes the risk. While still new, CRES has been favorably received by condos and co-ops looking to convert from dirty heating oils to gas.

Making Progress toward a Cleaner New York
As a company that has been dedicated to providing customized energy solutions to residential building owners, we applaud Mayor Bloomberg and his staff for introducing programs such as PlaNYC as a means of significantly improving the environmental sustainability of our city.

Creative financing programs such as FS Energy Loans and CRES should help to accelerate oil-to-gas conversions as building owners comply with these new dirty heating oil rules or simply want to take advantage of the significant cost savings and environmental benefits offered with a conversion.

##
Work Cited
_________________________

___i) Environmental Defense Fund, “The Bottom of the Barrel: How the Dirtiest Heating Oil Pollutes Our Air and Harms Our Health.” 16 December 2009. http://www.edf.org/sites/default/files/10085_EDF_Heating_Oil_Report.pdf

ii) Environmental Defense Fund, “Show Me the Money: Energy Efficiency Financing Barriers and Opportunities.”

July 2011
http://www.greenbiz.com/sites/default/files/Energy%20Efficiency%20Financing%20Barriers%20and%20Opportunities_July%202011.pdf_

Upcoming Seminar
Upcoming Seminar - The ABC’s of Home Modifications for Patients with Physical and Neurological Disabilities

*Upcoming live seminars coming soon to your area. *

SHD has been approved as a NAHB Continuing Education Provider for this seminar which meets NAHB’s continuing education requirements for all designations. This means this course can be applied towards your continuing education requirements for maintaining the CAPS and other NAHB designations.

These seminars are designed for medical professionals, along with construction professionals, architects, home designers and interior designers, to name a few, who wish to work with universal and accessible home design elements and products and further their professional career.

CHER (Comprehensive Home Evaluation Report)

This is a web based template being used by many professions to produce home modification evaluation/assessment reports. Having a CHER account also gives you access to universal and accessible home design concepts and principles as well as products and resources. I invite you to sign up for your FREE CHER account at http://www.shdesigns.net/cherreg. More information about me, the CHER and other available seminars is also available on the website.

Employment Opportunity
REAL ESTATE MANAGEMENT - ON-SITE GENERAL MANAGER

Seeking highly experienced professional to manage on-site a 1000 unit Rent Stabilized residential complex located in the Bronx.

Supervise office staff of 4 others and 29 union maintenance staff. Must have strong knowledge and experience in multifamily property management, DHCR and all NYC building regulations.

Top salary and benefits for superior candidate.

Send resume /cover to: .(JavaScript must be enabled to view this email address) or fax 718 997 1781.

New HUD Management Review Form Proposed
June 14, 2011

Last week, HUD released a Federal Register notice requesting comments on revisions made to a new draft HUD Form 9834-Management Review for Multifamily Housing Projects that they will be submitting to OMB for approval. HUD has asked for public comment on the changes and modifications made to this form.

Summary of Form 9834 Changes

The majority of the changes in the draft form reflect recent updates to: Chapter 6 of the HUD Multifamily Housing Asset Management and Project Servicing Handbook 4350.1; the EIV system and its new requirements; and the TRACS security requirements.

In terms of the desk review, there are new questions regarding the status of accounts payable and security deposits in the draft form. There are new questions regarding the Management Certification status, management fees paid in accordance with the Management Certification, and if the management agreement reflects HUD’ regulations and guidelines. There are new Section 236 questions regarding excess income status and payments. There is also a new question regarding the promptness of rent increase submissions to HUD.

In addition, the desk review included new questions about additional explanations or resolution required for EIV reports by O/As in the draft form.

The HUD Form 9834 also makes changes to the on-site review questions. It asks if owners are adhering to repayment plans if they are in place at the project. The form also asks new questions about centralized accounting, assets, and credit lines at the properties. The form incorporates a several new questions in the leasing and occupancy section, which does not apply to mortgagees in terms of application processing and tenant selection. The form also incorporates a new section that asks about the existence of file deficiencies.

Addendums A and B of the form has been reformatted and updated to reflect changes to regulations, handbooks, and other guidelines. The Addendum C Checklist has been updated to reflect EIV and TRACS security requirements that need to be fulfilled. Finally, HUD Form 9834 would add a new Addendum D that would require the CA to submit information on state lifetime sex offender statistics for the property.

A copy of the Federal Register notice may be found here: http://www.gpo.gov/fdsys/pkg/FR-2011-06-10/pdf/2011-14470.pdf

Now Online: HUD Notice PIH 2011-28 “Cost- Savings Measures in the Housing Choice Voucher (HCV) Progr
June 13, 2011

Late last month, HUD published Notice PIH 2011-28 detailing new cost-saving measures in the Housing Choice Voucher (HCV) program. The notice extends and revises Notice PIH 2009-44 which provided: (1) guidance on actions public housing agencies may take to address financial shortfalls by reducing costs in the HCV program; and (2) information on the circumstances under which a PHA may deny a move under 24 CFR § 982.314(e)(1) or terminate a housing assistance payments contract under 24 CFR §982.454 as a result of insufficient funding. The revisions to Notice PIH 2009-44 are bolded in the notice.

A copy of the notice may be found here: http://portal.hud.gov/hudportal/documents/huddoc?id=11-28pihn.doc

Green Refinance Plus
June 13, 2011

At the beginning of June, HUD announced a new refinancing program called Green Refinance Plus. Green Refinance Plus is an enhancement of the Fannie Mae/FHA Risk-Share program, which provides funding for the refinance, preservation and energy-efficient retrofits of older affordable multifamily housing properties, including those that are currently in Fannie Mae’s or FHA’s portfolio. This program allows for lower debt service coverage and higher loan to value ratios, to generate extra loan proceeds for property rehab and energy-efficient retrofits.

For a fact sheet on the new program, please visit: http://portal.hud.gov/hudportal/documents/huddoc?id=GreenRefiPlusFactSheet.pdf

New RAM Membership Coordinator
May 31, 2011

Olga Chermonorets has joined NABO as Membership Coordinator. She will be helping members, instructors, and associations with all your questions.

"When I wanted to hire a new management company, I looked at the RAM directory to see which companies in my area had the most trained people."

– Condo Board President

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Looking to join our distinguished list of designees? Learn about the certification process by registering for one of our classes.

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