Dear Colleagues,
Below are requests I am seeking from SHFC staff to ensure productive and efficient review of the reports and materials they will share at our upcoming meeting. You may have an additional set of suggestions, so I’ve started this thread to help collect them all for the SHFC staff in preparation for the meeting.
Rosemont RFP Presentation
The following are some topics I the Rosemont RFP presentation should addresses:
HISTORY. An explanation of why Rosemont was purchased, why we entered into an interest-only mortgage, and the original plan for the property. In terms of the original plan for the property, I’d like to hear about the expected level of investment and how it would be funded, the plan for the interest-only mortgage, and how permanent affordability would be attained.
PLAN B. Previously at our meetings and on the message board, I have requested a “Baseline” scenario developed to get a sense of how much cash we need to get the occupancy levels at Rosemont to a level that the property can sustain itself to cover our ongoing mortgage and maintenance expenses, as well as facilitate refinancing of our current debt once market conditions and the property economics are more favorable. We need to have a concrete set of numbers of this alternative in order to properly vet the advantages of proposals received through the RFP. This should include an estimate of the equity we would need to sell and the level of development we would need to undertake to finance the required refurbishment to achieve break-even economics.
LEVERS. What are the levers that SHFC and potential purchasers have to improve the financial sustainability of the property (e.g. redevelopment to add market units, rent increases up to 60% AMI after ‘24, occupancy boost, etc.)
IMPACT OF SALE CASH INTO SHFC. Clearly describe the impact of boosting cash into SHFC on Travis County housing affordability. What good things can we do? What bad things can we avoid?
Rosemont Repair Status
Moving forward, the Rosemont work order and remediation reporting should:
Be provided in writing at least 48 hours ahead of the meeting.
Include a table for month-by-month tracking of the following metrics: work orders opened, work orders in progress, work orders completed, median work order waiting time, total spending on work order repairs- Calculate cumulative total spending on convention (non-Uri) repairs and maintenance, as well as the remaining budget for Rosemont maintenance and refurbishment.
Cumulative total spending by granular categories (HVAC, plumbing, painting, carpet, drywall, etc.)
Development Partnerships Report
- I would appreciate a written update on how we plan to jumpstart our development pipeline given the lack of deal flow. What are the tools we have?
- In addition, it would be useful to have some visibility into how the activity at HATC’s facilities corporation is going and how it affects overall HATC finances.
- For existing developments, we should switch to reporting occupancy rates in a table that captures the last 12 months, as opposed to just the last month. It is very time-consuming to go back and look at previous reports to figure out a trend. The table should include both rates and units.
Finance Report
- We need a one-page, longitudinal table that tracks key metrics of financial state. The current documents are very helpful but can lead to Board members noticing different items. It is also very time-consuming to figure out trends for several measures. Some metrics that should be covered: our year-to-date budgeted revenue vs expected revenue for the trailing 12 months, our overall unpaid debts, our forward looking incoming revenue for the next 12 months, a 12 month history of our ratio of cash reserves/credit to average monthly expenses. I am open to additional or different suggestions on what should be included in this one-pager, but I think it is essential we settle on 5-7 metrics and have a trend reported for them.
- I would appreciate a report on existing current assets we have that we could use for Rosemont investment or in a cash crunch.
New Business
The following topics should be added under new business:
- Scheduling Next Meeting with Commissioners Court
- Plan for resident satisfaction measurement at all SHFC properties
- Proposal for eviction prevention
