DISCLAIMER

This form is provided by the Community Development Law Center (CDLC) for informational purposes only.
This is a DRAFT (and by no means perfect) asset management plan, intended to be revised for your particular
project. Permission is granted to nonprofit community-based organizations to reproduce and/or adapt this
document for their own use, provided proper credit is given. Speaking of which, credit is due and thanks are in
order to Local Initiative Support Corp., the Housing Development Center and CASA of Oregon for developing
some of the material in this plan, and to HUD, which provided funding for the plan. 2002 CDLC

ASSET MANAGEMENT PLAN

________________________________________
(Name of Project)

Table of Contents
Topic
A.
B.
C.
D.
E.
F.
G.

Page

Description of the Organization and Project

Asset Management Generally
Oversight of Property Management
Oversight of Financial Performance
Oversight of Physical Property
Resident and Community Relations
Reporting, Recordkeeping and Monitoring
1.
2.
3.
4.
5.
6.

2
5
8
11
16
18
20

Attachments
Property Management Agreement
Property Management Plan
Capital Needs Assessment
Resident Services Plan
Pro Forma Development Budget and Operating Budget
Chart of Funder Requirements

Date Asset Management Plan adopted by CDC Board of Directors: ______________________

REVISIONS:
Date Revised:
Date Revised:
Date Revised:

______________
______________
______________

Section(s) Revised:_________________________
Section(s) Revised:_________________________
Section(s) Revised:_________________________

Sample Asset Management Plan (from CDLC/HDC Training, January 2002)

A. DESCRIPTION OF THE ORGANIZATION AND PROJECT

1. DESCRIPTION OF THE ORGANIZATION
_________ Community Development Corporation (CDC) is a nonprofit community development
organization whose general service area includes .
Mission: CDCs mission is..
Portfolio: CDC owns ____ rental units within ___ project sites. This includes ___ single-family rental units
and ___ multi-family units. Additionally, CDC is the general partner in, or sponsoring agency of __
projects with ___ rental units. Of the ___ projects in total, CDC manages ___ projects (___ units) and ___
projects (___ units)are managed by outside property management firms.
Board of Directors: The CDC is governed by a Board of Directors, whose general roles with regard to
asset management are to provide policy direction for the organization and for each project, develop specific
policies for each project, and to assume overall responsibility for the success of each project and for the
organization. Specific policies that the board is responsible for adopting are noted in the Plan.
CDC Asset Management Staff: CDC has a staff of ______ people that perform asset and property
management functions as well as other activities related to its mission to develop and maintain affordable
housing and to promote community economic development and neighborhood livability. Asset management
responsibilities are performed by the Executive Director, Accountant, and Asset Manager (together, these
staff members are referred to as the asset management staff).1 To the extent that other staff (for example,
the resident services coordinator and housing developer) are involved with this or other projects, it is the
responsibility of the asset management staff to coordinate such involvement in the organization. More
specific roles and responsibilities are set forth in the tables of tasks in each section.

ORGANIZATION CHART

Board of
Directors
Executive
Director
Resident
Services

Housing
Developer

Accountant

Asset
Manager

Property Manager
Resident Manager

Maintenance

PM Accountant

In this draft Asset Management Plan, no distinction is made among asset management staff. If Staff is designated as
responsible party, you should replace staff with the title of the particular person on the staff who is responsible (e,g., asset
manager, executive director, finance manager, maintenance, etc.).

Sample Asset Management Plan (from CDLC/HDC Training, January 2002)

2. DESCRIPTION OF THE PROJECT

Project Name:

__________________________________

Project Address:

_________________________________________________________

The project is

F newly constructed

Placed in service on:

___________________

Legal Owner

F the CDC (or)

F _______________________, of which CDC is the
F general partner; limited partner is _________________________
F sponsoring agency.

Target population:

___________________________________ (income levels, special needs)

Project financing:
F
F
F
F
F
F
F
No. of buildings____
Unit Type

(or)

F acquired and rehabilitated (Yr. Built _______)

Federal low income housing tax credits

amount: $__________
HOME (_______________ is the PJ)
amount: $__________
Housing Trust Fund
amount: $__________
first-position bank loan____________________
amount: $__________
(Name of bank)
subordinate loan from ______________________
amount: $__________
other: ___________________________________
amount: $__________
other: ___________________________________
amount: $__________
Total Project Cost:
$__________
Total No. of Units:
No. of Units

__________

Target Income (%
of AMI)

Area in
Sq. Ft.

Comments

Studio
1 BR,
1 BR,
2 BR
2 BR
3 BR
3 BR
4 BR
4 BR
Other
Other
Totals

Sample Asset Management Plan (from CDLC/HDC Training, January 2002)

TABLE 1. SUMMARY OF MOST RESTRICTIVE PROJECT REQUIREMENTS

F Special Needs Population: ___________ No. of Units: ___
Source: _______________________________

Preference or Requirement? (circle)

F Maximum Rents

_____ units at _____% AMI (area median income); ____ units at _____% AMI
Rent increase restrictions: __________________________________________
Source: _______________________________

F Tenant Incomes

at Initial Occupancy: ___ units at ___% AMI __ units at ___% AMI

at Recertification:
__________________________________________
Source: _______________________________

F Lease Restrictions

F Prior Approval of Lease and/or changes required

F Minimum Lease Term: ________
F Good cause eviction? __________
F Grievance Procedure? __________
F Special Notice Provisions ________________________________
Source: _______________________________

F Reserves

F Replacement Reserve:
$__________ per unit per year
F Operating Reserve: $__________
Source: _______________________________

F Insurance

F Property insurance $__________________ (coverage amount)

F Liability insurance $__________________ (coverage amount)
F Rent loss insurance ________ months
F Name funder as additional or named insured? (circle appropriate)
F Notice to funder required before termination? No. of Days: ______
Source: _______________________________

F Reports

F Audit
F Other financial statements? _________________________
F Other reports: _____________________________________________
Frequency (monthly/quarterly/annually/other): _________________________
Source: _______________________________

F Monitoring
F Site visit every ___ years, starting ____________ (year)
Source: _______________________________
F Number of Yrs Restrictions in Place
_______ yrs.
Source: _______________________________

Expiration Date: _____________________

Sample Asset Management Plan (from CDLC/HDC Training, January 2002)

B. ASSET MANAGEMENT GOALS GENERALLY

(CDC) recognizes that strategic asset management is necessary for the successful long-term operation of its
housing projects. This Asset Management Plan (the Plan) has been developed to provide a framework for
providing ongoing oversight of CDC's portfolio. The Plan takes into consideration this individual projects goals
and the CDC's organizational mission, while recognizing that the operation of this project must be analyzed in
the context of CDCs entire portfolio.
This Plan is intended to be used not only as a plan, but also as a tool, to identify policies that need to be adopted,
tasks to be undertaken, the party responsible for performing the task, and the performance standards to apply.
However, it must be understood that this is a plan that is subject to constant revision, and that total compliance
with the plan is neither intended nor possible.
CDC views this Asset Management Plan as a tool for the systematic plan for and ongoing oversight of the
management of this project and CDCs other projects in furtherance of the projects goals and CDCs mission.
CDCs goals for this project are to see that the project provides affordable housing over the long-term to its
target population, while fostering CDCs financial health and community reputation. To do so, CDC must keep
the property manager, tenants, funders and community happy; it must keep the money flowing while keeping
rents affordable; and it must keep the project in good repair over the life of the project.
The CDC recognizes that it is typically dealing with (a) difficult to house populations, (b) limited funds, (c)
limited ability to raise additional funds, and (d) public agencies requiring maximum accountability. Good asset
management systems are needed to make this work!!! CDC needs to be proactive, which means starting out
with a well-thought out asset management plan.
The Plan differentiates between the role of property management and the role of asset management. The role of
asset management is to assure that established standards and expectations regarding financial and physical
condition, regulatory and statutory compliance, and reporting requirements are being met. Property management
is the day-to-day management of the project.
Asset management is seen as an opportunity to step back from the day-to-day operations of the housing and
address strategic objectives of the propertyis the property achieving its mission, is it helping the CDC achieve
the organizations mission? Are there risks or problems that have arisen that were not initially anticipated?
What financial trends can be discerned from performance indicators over time?
There are three basic questions that CDCs asset management addresses:
1. Is the project financially healthy? If not, what are the problems or risks to its financial stability and
how can these be addressed?
2. Is the project being properly maintained to provide decent, safe and sanitary housing for its
occupants and to enhance the neighborhood in which it is located? If not, what are the problems and
how can they be corrected?
3. Is the project operating in accord with all funders regulatory requirements and all applicable local,
state and federal requirements? If not, what are the problems and how can they be resolved?

Sample Asset Management Plan (from CDLC/HDC Training, January 2002)

STAFF AND BOARD ROLES AND RESPONSIBILITIES

The Board of Directors provides policy direction for the organization and for each project, develops specific
policies for each project, and assumes overall responsibility for the success of each project and for the
organization. The asset management staff includes the Executive Director, Accountant, and Asset Manager.2 To
the extent that other staff (for example, the resident services coordinator and housing developer) are involved
with this or other projects, it is the responsibility of the asset management staff to coordinate such involvement
in the organization. More specific roles and responsibilities are set forth in the tables of tasks in each section.

GENERAL ASSET MANAGEMENT TASKS: Table 2 sets forth general tasks not specific to any
particular area. Tables 3 to 8 set forth asset management tasks related to specific areas of oversight.

See footnote 1 (page 2).

Sample Asset Management Plan (from CDLC/HDC Training, January 2002)

TABLE 2. GENERAL ASSET MANAGEMENT TASKS

GENERAL ASSET MANAGEMENT
TASK
Develop and update Asset Management Plan
ASSET MANAGEMENT BINDER
Compile Asset Management looseleaf
binder(s) with following documents::
Project Documents (Loan and Grant
Agreements, As-Built Plans and Specs,
Warranties and Operations Manuals) (3 sets: 2
for org,, 1 for PM)
Summary of Each Funders Project
Requirements (Max. rents, tenant incomes,
etc.)
Summary of Most Restrictive Project
Requirements (Max. rents, tenant
incomes, etc.)
Calendar of Reporting Requirements
Updated Operating Budget and Sources of
Funds Pro Formas;
Have PM adjust its format for budget and
income/expense statement to match CDC
desired format (e.g., Gr. Potential Inc.)
Make sure agreements with development team
contain necessary asset management
requirements (e.g., builder to provide capital
needs assessment info, developer or lawyer to
compile asset manager binders)
Develop job description for Asset Mgr
Make sure funder approvals of mgt docs are
obtained as required (lease, budgets, property
management agreement and plan, etc.); also
any changes to these documents
Keep up-to-date on legal requirements placed
on project by particular funding sources and
by particular laws
Investigate, purchase and use software for
tracking AM
Coordinate AM tasks within organization
Provide notices to funders of address changes;
maintain current contact list
Provide training to staff and board on asset
management
Evaluate whether project is fulfilling the
projects mission and whether the portfolio is
fulfilling CDCs mission

FREQUENCY
Predevelopment,
every 3 yrs.

Prior to Initial
Occupancy

RESPONSIBLE
PARTY3
Staff and Board

FORM, REPORT
OR RESOURCE
Asset Management
Plan

Staff (Developer
and/or Lawyer)

See sample table of

contents

Staff (Developer)

See Form

Staff (Developer)

See Form

Staff (Developer)
Staff & PM

See sample calendar

Staff & PM
Predevelopment

Staff

Contract language in
developer and
builder agreements

Predevelopment
Lease-Up and
prior to changes

Staff
Staff

Job Description

Ongoing

Staff

See Chart of Funder

Requirements

Staff & acctg

Ongoing
Ongoing

Staff
Staff

Ongoing

Staff & Board

Every 2-3 years

Staff and Board

Self-assessment tool

If Staff is designated as responsible party, you should replace staff with the title of the particular person on the staff
who is responsible (e,g., asset manager, executive director, finance manager, maintenance, etc.).
Sample Asset Management Plan (from CDLC/HDC Training, January 2002)
7

C. PROPERTY MANAGEMENT OVERSIGHT

GOALS OF PROPERTY MANAGEMENT OVERSIGHT
While the property manager oversees the day-to-day operations (including rent collection, record keeping,
financial reporting and maintenance), the CDC remains ultimately responsible for the well-being of the project.
Good asset management means that the owner:

chooses a good property manager

makes sure that the property manager does a good job
reviews the property managers reports, files whatever additional reports need to be filed, and maintains
appropriate records
makes sure that the property will remain in good shape for forty years or more, by maintaining appropriate
reserves for replacement and for operations
makes sure that all the regulatory agencies are happy (which should be true if youve done all the above)

STAFF AND BOARD ROLES AND RESPONSIBILITIES

The Asset Manager is the primary contact for communicating with the property manager. The roles of the CDC
staff vis--vis the property manager are spelled out in the Management Agreement. Where uncertainty exists,
the asset manager will discuss these areas with the executive director, who will work with the property manager
to resolve the uncertainty.
The Board of Directors is responsible for adopting a number of policies related to property management. These
are spelled out in Table 3, Property Management Oversight. They include:

criteria for deciding whether to self-manage or hire an outside property manager

if there will be outside property management, approving criteria for selecting the property manager, and
ultimately making the decision on who is selected
approving the property management agreement
adopting the Property Management Plan
adopting tenant screening and selection criteria, addressing topics such as criminal record checks, credit
references (and whether tenant will pay for such), landlord references, income to rent ratios, occupancy
guidelines (number of persons per bedroom)
adopting a fair housing policy, including policies on affirmative marketing and reasonable accommodation
rent collection policies, and how to address late payments, partial payments and non-payments
whether to adopt a good cause eviction policy, even if it is not required by law
adopting a progressive discipline policy
adopting written grievance policy if required or desired

PERFORMANCE STANDARDS4
Property manager (PM) selected and evaluated according to applicable criteria and in timely fashion
Property manager shall comply with all laws and procedures
PM to Certify and Verify Eligibility of All Tenants prior to Occupancy
PM to Recertify and Reverify Tenant Eligibility within 12 months of last certification
Waiting List: Have 5 applicants for each unit size and type; update waiting list every 6 months
Applicants and residents treated fairly; no fair housing violations

Specific performance standards related to oversight of financial performance, physical property, resident and community
relations and reporting, recordkeeping and monitoring are found in those sections.

Sample Asset Management Plan (from CDLC/HDC Training, January 2002)

TABLE 3. SPECIFIC TASKS FOR PROPERTY MANAGEMENT OVERSIGHT

PROPERTY MANAGEMENT
TASK

FREQUENCY

RESPONSIBLE
PARTY5

FORM, REPORT
OR RESOURCE

PROPERTY MANAGER OVERSIGHT

Decide whether to self-manage

Predevelopment

Staff & Board

Develop Property Manager selection

criteria;
Select property manager

Predevelopment

Staff & Board

Predevelopment
& every 2-3 yrs
Predevelopment
& every year
Annually

Staff & Board

Staff & Prop Mgr
w/ Board approval
Staff & Board

Monthly

Staff

Adopt and update Property Mgt Plan

Evaluate property manager; renew
management agreement
Make sure procurement policies are
complied with

See CHAM, LISC

& HAC papers6
See PM Selection
Criteria
See sample RFQ &
Mgt. Agreement
See Management
Plan; HCS CFC app

TENANT ELIGIBILITY & SELECTION

Tenant Selection Criteria
Fair Housing & Reasonable
Accommodation
Occupancy Guidelines (# of persons/BR)
Review all tenant files for eligibility and
for proper file set-up
Review random sampling of tenant files:
check for tenant eligibility, completeness
of file
Review waiting lists and waiting list
procedure
Test for fair housing compliance

Prior to Initial
Occupancy

Staff & Prop Mgr

w/ Board approval

During lease-up,
prior to tenants
occupancy
Annually

Staff, PM, Funders

Staff

Annually

Staff

Annuaully

Staff

See Samples
Summary of Most
Restrictive Eeqts

See footnote 1 (page 2).

CHAM, (The Consortium for Housing and Asset Management), The Options of Property Management. It discusses the
pros and cons of self-management, and includes a checklist to help in evaluating whether self-management is for
you. CHAM, 10227 Wincopin Circle, Suite 500, Columbia, MD 21044; (410) 772-2724
LISC, Occasional Paper 2, Selecting a Manager, a Workbook and Forms, from LISC, 733 3rd Ave., 9th Fl., NY, NY
10017; (202) 455-9800
Housing Assistance Council (HAC), Should We Do It Ourselves or Hire Someone Else? A Rural Property Management
Planning Guide, from HAC, 1025 Vermont Ave. NW, Washington, D.C. 20005 (202) 842-8600
Sample Asset Management Plan (from CDLC/HDC Training, January 2002)
9
6

PROPERTY MANAGEMENT
TASK
OCCUPANCY
Policy for Rent Collections, Partial
Payments, Bad debt write-offs
Develop Policy for Rent Increases
Develop Policy for evictions (For causeno cause), Progressive Discipline,
Grievance Procedure.
Keep current on applicable
regulations/requirements related to
sources of financing, landlord tenant law,
fair housing
Make sure PM makes payments to
vendors on time, preferably within time
necessary to get discounts

FREQUENCY

RESPONSIBLE
PARTY5

Prior to Initial
Occupancy;
Update every 23 yrs.

Staff & Prop Mgr

w/ Board approval

Ongoing

Staff & PM

Ongoing

Staff

Sample Asset Management Plan (from CDLC/HDC Training, January 2002)

FORM, REPORT
OR RESOURCE

See Samples

10

D. OVERSIGHT OF FINANCIAL PERFORMANCE

GOALS FOR FINANCIAL PERFORMANCE OVERSIGHT
The primary goal of financial performance oversight is to assure that the project remains financially viable over
the life of the project. Specific financial goals include assuring that:
this projects financial goals are met:
subsidize other projects and/or organization;
break even and operate at lowest rents possible;
other:_________________________________________)
project meets or exceeds minimum debt coverage ratio
rents do not exceed maximum rent levels
required reports are timely submitted
operating and replacement reserves are adequately funded
plans are in place for one-time events (e.g., LIHTC yr 15, OAHTC yr. 20, balloon payments, etc.)
development team meets with others in organization (asset manager, maintenance, accounting) to assure that
new projects have updated cost and expense information
Further, CDC recognizes that asset management and resident services are two organizational functions that have
historically been underfunded in the organization. CDC desires to assure that the costs of these functions is
recovered , preferably by the project and if not by the project then by grants or other funding.
STAFF AND BOARD ROLES AND RESPONSIBILITIES
The asset manager is responsible for seeing that the Project Documents are compiled and available at the
organizations office. The asset manager shall be the contact person for communications between the property
manager and the organization. The asset manager is responsible for the monthly review of the financial
statements, for calculating financial performance standards, and for the initial review of the annual budget
prepared by the property manager. The asset manager shall provide the executive director with a summary
report of the performance standards, noting any unusual events requiring executive director and/or board action.
The executive director shall provide the Board with regular financial reports related to the project, and shall
recommend to the Board any corrective actions required in the event of poor financial performance.
The Board (or a subcommittee) shall review the financial performance of the project quarterly and shall approve
any extraordinary corrective action required in light of financial non-performance. The full Board shall review
the annual audit/year-end financials for the project and shall formally approve the annual project budget.

Sample Asset Management Plan (from CDLC/HDC Training, January 2002)

11

FINANCIAL PERFORMANCE STANDARDS

CALCULATION (see below)

RATIO
1. Debt Coverage Ratios

2. Turnover ratio

STANDARD

NOI / P & I portion of loan payment

a.
1st position loan
b.
all must-pay loans

> 1.15 (unless higher DCR reqd)

> 1.10

No. of moves in month / no. units

<

3. Economic occupancy rate NRI/ GRI

% (annualized)

at least 95% (this means that

economic vacancy rate is < 5%)

4. Physical occupancy rate

No. units occupied / total units

at least 95% (this means that physical

vacancy rate is not more than 5%)

5. Expenses per unit

(12 * mo. expenses / # units)

< $______ per unit (annualized)

6. Bad debt losses

Rents written off / GRI

< 2% of gross potential rent

7. Rent loss

Economic Vac. Rate + Bad Debt Loss

< = 7%

8. Operating Reserves

(acct balance / annual budget)

= 25% of annual budget

9. Replacement Reserves

(acct balance / 5 yrs replacement needs) > 20%

10. Asset Management and

Resident Services Costs

quantify actual cost of these services

100% of costs recovered

11. Accounts Receivable

Accounts Receivable/ EGI

<10%

The above ratios rely on these calculations:

Gross Potential Rental Income =
(GRI)

Rental income to project if all units were rented and all rents were
collected

Net Rental Income =

(NRI)

Actual rental income collected during period

Effective Gross Income =

(EGI)

Net Rental Income + Other Income (e.g., laundry income)

Operating Expenses =

Total operating expenses during period (includes replacement reserve,

pro rata share of one time costs e.g., taxes, insurance, audit, monitoring
fee; does not include principal and interest portion of loan payment

Net Operating Income =

(NOI)

EGI Operating Expenses

Net Cash Flow =

NOI all must-pay debt service

Sample Asset Management Plan (from CDLC/HDC Training, January 2002)

12

TABLE 4. FINANCIAL PERFORMANCE OVERSIGHT

FINANCIAL OVERSIGHT
TASK
Compile Asset Management looseleaf
binder(s) (See General Asset Management
tasks), with
Summary of Each Funders Project Reqts;
Summary of Most Restrictive Proj. Reqts;
Calendar of Reporting Requirements; and
Updated Operating Budget and Sources of
Funds Pro Formas
Have PM adjust its format for budget and
income/expense statement to match CDC
desired format (eg, show GRI
Insurance: Make sure required insurance is
in place, with proper coverages, limits &
named insureds/additional insureds
Monitor perm loan conversion conditions
Review project financials and calculate
financial ratios
Compare w/ YTD budget
Consider accruals & expenses not in PMs
statements
Make sure required payments are made (PITI,
reserves, etc.)
If reserves have been used, for what? was
approval given as required?
Phone call/meeting with prop. mgr to discuss
problems, potential solutions)
Insurance Requirements: Review Risk
Management issues, Update insurance
Property Tax Exemption or Valuation
Prepare Annual Budget
Update and verify correctness of Max.
Rents, Tenant Incomes, and Utility
Allowances;
Do phone survey for current Market Rents
Compare YTD expenses with last 2-3
years and with other projects, anticipating
likely out-of-ordinary increases such as
insurance or utilities;
Identify any one-time or extraordinary
needs for upcoming year (eg, balloon
payments, additions to reserves, deferred
maintenance);
Determine need for rent increase, timeline
for implementation;

FREQUENCY

RESPONSIBLE
PARTY7
Developer and/or
lawyer

FORM, REPORT,
OR RESOURCE
See Chart of Project
Requirements,
sample calendar

Prior to Initial
Occupancy

Prior to Initial
Occupancy

Staff & PM

Prior to Initial
Occupancy

Staff & PM

See Form ____

Perm loan docs
Monthly financials;
Performance Stds

Quarterly

Staff & PM
PM prepares; Staff
reviews
Board reviews

Monthly

Staff

Annually

Staff, w/ PM, ins.

agt
Staff (PM)
PM prepares
budget;
Staff reviews;
Board approves

Lease-up
Monthly

Annually
Annually
Timeline: draft
budget to Bd for
approval by
Nov., to allow for
30 days notice to
tenants &
implementation
starting Jan. 1

File w/ Assessor
Annual Budget
Form

See footnote 1 (page 2).

Sample Asset Management Plan (from CDLC/HDC Training, January 2002)

13

FINANCIAL OVERSIGHT
TASK
Review Annual Audit and Year-End Financial
Statements
Did accountant re-categorize any expenses
(e.g., from maintenance to capital expense)
or add organizational expenses attributable
to project?
Check Notes section of audit
Make sure that income tax filings are made
timely (incl. K-1s to partners if applicable)
Prepare required financial reports to funders
and to board
Prepare for and participate in monitoring by
funders
Evaluate & plan for end of term situations
(e.g., balloon payment dates, 16th year for tax
credit projects, yr. 20 for OAHTC); transfer of
reserve accounts
Evaluate refinancing options.
Workouts In event of poor financial
performance, identify causes and develop
solutions

FREQUENCY
Annually

RESPONSIBLE
PARTY7
Staff & Board

FORM, REPORT,
OR RESOURCE

Staff, PM

See Forms ____.

_____, ______

Annually
Annually or as
required
As required

Staff, Board & PM

Staff & Board

Sample Asset Management Plan (from CDLC/HDC Training, January 2002)

14

TABLE 5. SUMMARY OF PROJECT REQUIREMENTS BY FUNDER

Funder Name: ___________________________________________________________________
Contact Person: ______________________________________ Title: _________________________________
Address:
____________________________________________________________________
Phone:
________________
Fax:______________ E-mail: __________________________
Amount:
$_____________________________
Date of Funding: ___________________
Source:
______________________________ (e.g. HOME, Housing Trust Fund, etc)
F Grant
F Loan

Loan Term: _____ yrs.

Amortization Period: _____ yrs.
Int. Rate: ____%
OAHTC? ___ (Y/N)
Monthly P&I Payment: $______
F Must make loan payment? or
F Make payment if cash available
Loan Position:
F First
F Subordinate: ____ position
Debt Coverage Ratio: _________
Other (e.g. deferred payments, interest only, balloon payment): ___________________

F Equity

F LIHTC

F Other equity: ___________________________________________

F Other Subsidy (e.g., rental assistance, property tax exemption): ___________________

Requirements and Restrictions
F Special Needs Population: ___________

No. of Units: ___

Preference or Requirement? (circle)

F Maximum Rents

_____ units at _____% AMI (area median income); _____ units at ____% AMI
Rent increase restrictions: __________________________________________

F Tenant Incomes

at Initial Occupancy:
at Recertification:

F Lease Restrictions

F
F
F
F
F

F Reserves

F Replacement Reserve:
$__________ per unit per year
F Operating Reserve: $__________

F Insurance

F
F
F
F
F

F Reports

F Audit
F Other financial statements? _________________________
F Other reports: _____________________________________________
Frequency (monthly/quarterly/annually/other): _________________________

F Monitoring

F Site visit every ___ years, starting ____________ (year)

___ units at ___% AMI __ units at ___% AMI

__________________________________________

Prior Approval of Lease and/or changes

Minimum Lease Term: ________
Good cause eviction? __________
Grievance Procedure? __________
Special Notice Provisions ________________________________

Property insurance $__________________ (coverage amount)

Liability insurance $__________________ (coverage amount)
Rent loss insurance ________ months
Name funder as additional or named insured? (circle appropriate)
Notice to funder required before termination? No. of Days: ______

F Number of Yrs Restrictions in Place

_______ yrs.

Expiration Date: _____________________

Sample Asset Management Plan (from CDLC/HDC Training, January 2002)

15

E. PHYSICAL PROPERTY
GOALS FOR OVERSIGHT OF PHYSICAL PROPERTY:
The primary goal related to oversight of the physical property is to make sure that the project is maintained
well and that long-term needs are planned for and taken care of. CDCs goal is to assure that the project is
being properly maintained to provide decent, safe and sanitary housing for its occupants and to enhance the
neighborhood in which it is located. More specifically, this means that over the expected useful life of the
project, CDCs goals are that:
the project meets acceptable building, housing code and maintenance standards
maintenance tasks and inspections are performed in a timely manner
capital replacement needs are identified and quantified, and replacement reserves are adequately funded
and appropriately used
STAFF AND BOARD ROLES AND RESPONSIBILITIES
The asset manager is responsible for seeing that the Project Documents include as-built plans and specs,
appliance manuals, systems manuals (HVAC, irrigation, etc.) and that they are available at the organizations
office. The asset manager shall be the contact person for communications between the property manager and
the organization.
While the asset management staff is primarily responsible for oversight of the physical property, other staff
in the organization must be consulted to fulfill the above goals. The maintenance team should meet with the
organizations housing developers to assure that new projects are well-designed, with durable materials, to
assure long-term viability. Likewise, project financing should make adequate allowances for maintenance
costs and major repairs and replacements.

PERFORMANCE STANDARDS
Turnover Time
Make unit ready: 6 working days
Re-lease unit: 10 working days

Custodial maintenance done within 2 weeks

Preventive Maintenance: 90% of preventive

maintenance inspections and servicing completed
within 14 days of schedule; remaining 10% within
30 days of schedule.

Inspections: 100% of units every year

Emergency requests done within 24 hours

Curb Appeal: Clean site daily, to present a

pleasing curb appeal at all times

Work Orders: Work on work orders = 100%

Energy Usage: not more than 3% increase in

consumption per year

Routine Requests done within 3-7 business days

Sample Asset Management Plan (from CDLC/HDC Training, January 2002)

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TABLE 6. OVERSIGHT OF PHYSICAL PROPERTY

OVERSIGHT OF PHYSICAL
PROPERTY TASK
GENERALLY: Review plans and specs
and development budgets to assure that longterm physical needs of project are adequately
addressed
MAINTENANCE AND INSPECTIONS
Create a Preventive Maintenance Guide,
with priorities for different types of repairs
Create a Building Systems Manual.
Conduct Drive-through inspection of
property
Review work order summaries, inspection
reports
Conduct Inspection of unit interiors, exterior
and common areas
Review all purchases for
reasonableness/approve purchases by agent
above the established spending limit.
EMERGENCIES
Develop and post Emergency Contingency
Plan (for fire, flood, loss of power or water,
etc.)
Perform drills to test emergency plan
LONG-TERM CAPITAL
IMPROVEMENTS
Develop/revise capital budgets.
Update capital replacement plan;
Review change orders for their management
& maintenance implications
Assess physical condition and determine
repair/replacement and capital improvement
needs.

RESPONSIBLE
PARTY8
Asset manager,
with developer,
maintenance staff
& PM

FORM, REPORT,
OR RESOURCE

Maintenance Plan

Monthly

Asset Manager,
Gen. Contractor,
Vendors
Staff &/or Board

Monthly

Staff

Annually

Staff

Annually

Staff (PM)

Prior to Initial
Occupancy
Annually

Bldr, Staff, PM

FREQUENCY
Design phase

Prior to Initial
Occupancy

Inspection forms,
such as HUD 52580

Contract language
in builder contract

Staff w/ Bd apprvl

See footnote 1 (page 2).

Sample Asset Management Plan (from CDLC/HDC Training, January 2002)

17

F. RESIDENT AND COMMUNITY RELATIONS

GOALS OF RESIDENT AND COMMUNITY RELATIONS OVERSIGHT
It is the goal of CDC to provide opportunities that extend beyond bricks and mortar, by providing residents
with access to services appropriate to the identified needs of the projects target population, by giving
residents a voice in property operations, by giving residents an opportunity to develop resident leadership
skills, and generally to facilitate resident empowerment. As noted in the Financial Oversight section, CDC
recognizes that resident services is one of the organizational functions that has historically been underfunded
in the organization. CDC desires to assure that the costs of this function is recovered , preferably by the
project and if not by the project then by grants or other funding.
The project shall have a Resident Services Plan, which will address the following areas:

identify services appropriate for the resident population (e.g., information and referral, health-related
services, job training/job placement, educational (day care, tutoring, GED/adult ed, parenting, computer
training), counseling (legal, consumer, family. drug), recreational and arts, transportation),
will they available on-site or off-site,
what equipment, materials, space and staffing is needed,
how will they be paid for,
are contracts for services needed/in place;
what are responsibilities of staff and PM (and resident mgr);
will additional insurance be required?

The project shall have a Resident Participation Plan, which will cover the following areas:
how will residents participate in project decision-making?
Will there be a formal grievance procedure for tenants and/or applicants?
Will tenants facing eviction or other disciplinary issues be referred to social service agencies?
Will there be a residents association.what role will it play, how will it be sustained, what training will
be provided?
What are the expected costs of implementing the Plan and the intended sources of payment?
In addition to addressing resident needs, CDC desires that this project is an asset to the community. CDCs
intent is not simply to build housing, but also to build a neighborhood. CDC will ask for community input
during the design phase, and will work to assure community satisfaction during the operations phase. When
appropriate, CDC will offer services to the community that are also offered to residents. CDC will
encourage its residents to participate in their community, through such programs as NeighborWatch.
STAFF AND BOARD ROLES AND RESPONSIBILITIES
The Board of Directors shall adopt a Resident Services Plan and Resident Participation Plan.
The asset management staff is responsible for quantifying and funding the expenses related to resident
services and resident participation.
CDC recognizes the potential conflicts that on-site resident managers face when trying on the one hand to
enforce rules and trying on the other hand to see that resident services and resident participation programs are
effectively provided. Therefore, CDCs Resident Services Coordinator shall oversee these areas, while
relying on the Property Manager to inform the Resident Services Coordinator of tenants who could benefit
from such programs. In the event there is a question as to whether CDC or Property Manager is responsible
for a particular task, the Resident Services Coordinator shall consult with the Asset Manager, who shall be
the primary contact with the Property Manager.
Sample Asset Management Plan (from CDLC/HDC Training, January 2002)

18

PERFORMANCE STANDARDS
Resident and community surveys disclose ___% of residents and community members are satisfied with the
Project.
For Resident Services, evaluation will be based on the extent to which identified services are provided, the
level of tenant participation, the number of youths graduating from high school, the number of adults joining
the work force, the percent of children receiving inoculation, the number of households using computer
room. Other factors to consider include the number of vandalism incidents and the number of other criminal
incidents.
For both resident services and resident participation, ___% of the costs of such activities is funded from
either the project budget or outside sources (other than being subsidized by the organization).

TABLE 7. RESIDENT AND COMMUNITY RELATIONS OVERSIGHT

RESIDENT AND COMMUNITY
RELATIONS TASK
Adopt and periodically update the Resident
Services Plan
Review Plans & Specs: evaluate need for
physical space for res. services (e.g.,
community rm, office space, equipment,
playground) and resident security (e.g.,
lighting, fencing); does design include such
space, are improvements needed?
Adopt and periodically update the Resident
participation plan:
Review Pro Forma Operating Budget and
annual budgets: does it include expenses for
res. services (e.g., staff, materials, contracts
with other agencies)
Assure that Res. Svcs Plan & Res.
Participation Plan are implemented
Hold tenant meetings
Publicize project in community
Maintain tenant demographics database
(income, family size, where tenants move
from/to, etc.)
Survey tenants and former tenants: resident
services, tenant satisfaction
Get feedback from tenants, neighbors, local
government and funders

FREQUENCY

Design Phase,
and every 2-3 yrs

RESPONSIBLE
PARTY9

FORM,
REPORT, OR
RESOURCE
HCS Resident
Services Plan

Staff and Board,

with PM &
resident input
RD: 7 CFR 1944,
Part L (1944.551.559)

Design Phase and

annually

Staff , w/ PM
input

Quarterly
Ongoing
Ongoing
Annually

Staff (with PM
input)
Staff
Staff
Staff, w/ PM

Every 2-3 yrs

Staff, w/ PM

Every 2-3 yrs

Staff, w/ PM

See footnote 1 (page 2).

Sample Asset Management Plan (from CDLC/HDC Training, January 2002)

19

G. REPORTING, RECORDKEEPING AND MONITORING

GOALS
It is the CDCs goal to provide needed data and reports to appropriate persons in a timely fashion, to
maintain files as required and for required time periods, to participate in monitoring of the projects records
and property, and do all this to the satisfaction of the projects funders.

ROLES AND RESPONSIBILITIES

Compliance with reporting and recordkeeping is primarily the responsibility of the Property Manager. The
asset manager is responsible to see that these activities are performed satisfactorily. It is expected that asset
management staff and the Property Manager will also participate in monitoring, with the Board of Directors
providing input as needed.

PERFORMANCE STANDARDS
Full compliance with all reporting and recordkeeping requirements that would otherwise result in adverse
findings is required. (For example, if this is a federal tax credit project, any noncompliance may result in
issuance of an IRS Form 8823, and therefore is unacceptable.) Where funders provide an opportunity to
correct findings without prejudice to the project, substantial compliance is acceptable, provided that any
findings are satisfactorily resolved without prejudice to the project or the organization.
In addition to containing the proper information, files should be organized so that the information is readily
available. Every tenant file should contain an application (containing information on household composition,
income, and assets, and dated prior to move-in), screening information, a lease (signed and with all blanks
filled in), tenant certification, third party verifications, timely recertifications and verifications (completed
within one year of the previous certifation/verification)

TABLE 8. REPORTING, RECORDKEEPING

AND MONITORING REQUIREMENTS
Note: There are additional reporting and recordkeeping requirements
found in each of the other sections of this Plan.
REPORTING, RECORDKEEPING AND
MONITORING TASKS
See General Asset Management tasks for
compiling Asset Management looseleaf
binder(s), with Calendar of Reporting

FREQUENCY

RESPONSIBLE
PARTY10
Developer

FORM, REPORT,
OR RESOURCE
See sample
calendar

Staff or PM

See Project
Requirements
Chart

Requirements
Make sure timely reports to funders are
provided.
Provide timely reports to Board of Directors
Review Annual Audit or other annual
financial statement
Review annual tax return(s); provide K-1s
to partners, if applicable

As required
(usually annually,
more often
during 1st year)
Quarterly
Annually
Annually

Staff
Staff
Staff &
accounting

10

See footnote 1 (page 2).

Sample Asset Management Plan (from CDLC/HDC Training, January 2002)

20

REPORTING, RECORDKEEPING AND

MONITORING TASKS
FREQUENCY
Ongoing
Attend compliance and monitoring
workshops and get certified as appropriate;
have available applicable program manuals
from administering agencies (e.g., HOME
project manual, LIHTC Compliance
Manual)
Prepare for Monitoring Visits
Per funders
schedule
Make sure complete applicant and tenant
files are kept, in an organized manner to
facilitate third party review
Make sure PM files required property tax
forms for exemption or for valuation
challenge, if applicable.

RESPONSIBLE
PARTY10
Staff

FORM, REPORT,
OR RESOURCE

Staff, Board, PM

A Good Asset Manager Has Lots of Looseleaf Binders

(Photo courtesy of NPF:
Ellen Marie Hannan photographer; Pietro Ferrari binder-keeper)

Sample Asset Management Plan (from CDLC/HDC Training, January 2002)

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