ASSET & PROPERTY MANAGEMENT TOOLKIT GUIDELINES vs. Sept.

2008

GENERAL:

The Tool Kit has several pieces of information that should be used together to create the most effective best practices tool for your
organization.
The List of Best Practices is the universe of asset and property management affordable housing industry best practices, standards,
and ratios. Where a local indicator has been established, it is given as well to give an organization a local option to compare and
choose from. These Best Practices can be used in a variety of ways to evaluate performance, guide future operations, and utilize
with property management. The list contains a definition of the benchmark and gives the mathematical formula for calculating
each (if applicable) so that we are all using the same definition and calculation when discussing and comparing between
organizations and as an industry.
The Glossary defines commonly used terms used in asset management, property management, and real estate development
finance that are not listed in the best practices list.
The Dashboard is a list of baseline indicators that all organizations should be utilizing and tracking at a minimum. Each organization
should draw from the best practices list to augment the dashboard list.
The My Organization tab is where you can take the previous tabs of information and create your own best practices model to use
with your organization.

My Organization tab is where you would cut and paste from the previous pages to create your own organization's performance
measures and dashboard. The User Matrix allows you to designate who would most likely utilize the measurement. This is a
guideline and should be customized for each organization.
The Special Needs Standards will be developed at a later date.

INDUSTRY STANDARD:
In this document when referring to Industry Standard, we are discussing the affordable housing asset and property management
industry. In most instances, that comes from CHAM, LISC, Enterprise, and other practitioners. Where a standard or ratio is not
taken from one of these sources, the source will be noted.
The standards also refer to general affordable multi-family housing. We recognize that homeless, developmentally disabled,
assisted living, and other special needs housing have different measures and standards that need to be taken into consideration and
are not addressed in this tool at this time.

KING COUNTY STANDARD:

The King County Standards are benchmarks vetted by the Housing Development Consortium of Seattle/King County's Asset and
Property Management Affinity Group. They are based on data collected by public funders and by each organization. They reflect
the current operating standards affordable housing providers are striving for in King County.

THIS TOOLKIT WAS DEVELOPED BY:

MEMBERS OF THE HOUSING DEVELOPMENT CONSORTIUM of SEATTLE/KING CO.'S ASSET & PROPERTY MANAGEMENT AFFINITY GROUP
with assistance from Impact Capital and the State of Washington Dept. of Community Trade and Economic Development's Housing Division
LIST OF BEST PRACTICES
Affordable Housing - general
Marketing & Leasing
Occupancy Rate (as a percentage of
potential days of occupancy)
Occupancy at Point in Time
Wait List
Unit lease up Time
Unit Turnaround Time
Resident Turnover Rate
Lease Review
Certifications
Re-Certifications
Curb Appeal
Marketing Plan
v. 9-11-08
What it measures
Occupancy as a measurement of
potential days occupied rather than
percentage of dollars.
Percentage of units occupied at a
given point in time
Can be an indicator of need or
demand
Time needed for leasing vacant unit
How long is it taking you to reoccupy 14 days Acceptible
vacant units
Proportion of your population that is
moving out
Have legal representation review and
comment current lease language
income certifications required by
funding sources
recertifications of income
qualifications
The visual attractiveness of a
property
A written plan to market project to
fill vacant units
Industry Standard HDC Members - King Co. Calculation Benefits & Drawbacks
Standard
B: Good measure of use of the property – occupancy not
Potential Occupancy Days- Vacancy skewed by higher rent units.
98% Excellent Days D: Does not recognize the different revenue potential of
< 95% poor
95% Good Potential Occupancy Days different types of apartments.
90% Poor
Occupied units on a given day B: Easy to calculate
< 95% poor Total Units D: Easy to mislead
Updated every 6 months - At least 5 active
and at least 5 active applicants per unit size Various standards exist per funder requirements such as HUD
applicants per apt. and type Sect 8, Tax Credits. Can be time consuming and staff
- Update every six
size/type instensive. Should not be more than 90 days old. Standard
months should be in relation to turnover.
< 14 days excellent
10 days or less 21 days good 30+
days unacceptible
B: Critical measure of management performance – effects
3-5 days Excellent 6- < 14 days excellent Total Days to Reoccupy both “Double Bottom Lines”
21 days good 30+ Vacant Units D: Recognize the value of breaking down this measurement
Total Units Reoccupied into its components – Inspection, Make-Ready, Lease-Up,
>14 days Unacceptible days unacceptible COORDINATION
B: Good measure of resident satisfaction, easy to calculate.
Important data to know for occupancy management.
0-5% Excellent < 5% Excellent Number of Move Outs D: Recognize whether it is an annual, quarterly or monthly
< 15% Adequate Number of Units measurement. Sometimes high turnover rates are central
8-15% Good
>15% Poor < 30% Unacceptable to the mission.
Semi Annual or annual
100% accurate at time of
lease signing
Begun 90-120 days before Develop annual schedule;
due & Completed 30 days 100% of recerts conducted
before due on time and approved by
Certification Specialist
Monthly inspections Conduct weekly
performed by property inspections of property Curb appeal for marketability should be conducted
exterior, grounds, common
manager; Weekly
spaces, signage, and every day to ensure the property is always appealing to
inspections of vacancy prospective tenants.
office ; montly inspections
problem exist using checklist
6 mos prior to lease up;
Min. Annually or as Needed mostly to fill key agency requests or address
required
soft market conditions; a HUD requirement

Management Plan
Collections and Evictions:
Percentage collected
Percentage of Current Rent Collected
Percentage of Arrears Collected
Economic Collection
Notice to Pay or Quit
Tentant Relations/Services:
Property/House/Resident Rules
Tenant Surveys
Newsletters
Services Agreements
Maintenance & Management:
Unit Make Ready Time
Unit Inspections
A written statement of how the
housing manager plans to coordinate contract expires with
the basic management functions to
meet the owner's objectives,
policies, and procedures.
Gross cash collections as a
percentage of billings
What percentage of the current
period’s billings are being collected
What proportion of arrearages are
being collected
Quick and dirty analysis of how the
asset is performing financially
(usually compared to a plan)
Rules pertaining to the property not
included in the body of the lease but
usually attached to the lease as an
attachment
The extent to which a property is
able to ascertain levels of tenant satisfaction >85%
satisfaction with the management of
the property.
Plan for service providers which
includes property policies and
procedures
Time for maintenance to make a
vacant unit ready for occupancy
Review by property management
staff of interior of units
At least annually & when At least annually & when
contract expires with
Property Mgmt Co. Property Mgmt Co.
97-100% Excellent 97-100 % Excellent Rent Collected B: Easy to measure, motivates taff to collect arrearages. D:
93-96% Good 93-96% Good Rent Billed* May overstate current collection rate by counting amounts
<92% Poor 90-92% Poor (*GPR-Vacancy Loss) collected from previous periods.
Rent Collected –
97-100 % Excellent Amount Collected on Arrears B: Accurate portrayal of status of current periods' billing.
>97% Excellent 93-96% Good Rent Billed* D: More
90-92% Poor (*GPR-Vacancy Loss) complicated due to arrearage reduction calculation
B: Keeps focus on arrears. D:
100% 100% of ongoing tenants Amount Collected on Arrears Can be misleading - arrears can be increasing despite high
Total Arrears at Start of Period collection on arrears.
95% Good 90- B: Useful to funders who want the bottom line - pulls
Cash Amount Collected
94% Investigate <
GPR
vacancy and collection into one calculation. D:
90% Poor Very little insight into operations
File notice to quit within
10 days of rent File notice to pay or quit
nonpayment; success rate within 10 days of
monitor: >90% nonpayment of rent
Distribute to each
household as lease
attachment; review at least
annually & update as
needed.
Annually & at Move Out;
Annually; satisfaction >85%
Monthy = Excellent
Quarterly = Good
<Qtrly=Poor
Review and update
annually at budget and
at contract renewal
2-3 days Excellent
4-7 days Good < 10 days
>7 days Poor
Once Every 6 mos
Excellent; Once per year
Good; Longer than a year Per established policies
Poor

Exterior Inspections
Total Maintenance Expenses
The physical attractiveness of a
property in terms of cleanliness,
level of maintenance of common
areas, exterior and grounds.
Benchmark of maintenance
expenses within budget
Conduct monthly
inspections of property
Monthly inspections with exterior, grounds, common
checklist; Weekly visual spaces, and office using
inspections checklist; weekly
inspections if vacancy
problems persist
Labor 75%; Materials
25%; within 10% of Within 10% of budget
budget

Emergency - within 24 Emergency - within 24

Work Order Completion Times
Fiscal Management:
Occupancy Rate (as a percentage of
GPR)
hrs; Preventative - hrs; Preventative -
within 2 weeks of within 2 weeks of
How long workorders are taking to schedule; Routine - as schedule; Routine - as
be done scheduled; Resident scheduled; Resident
Request - respond Request - respond
within 24 hrs/completed within 24 hrs/completed
in 5 days in 5 days
Depends on property type, tenant type, and policy.
B: Very good measure of performance toward revenue
What percentage of gross potential 98 % Excellent potential.
GPR ($)-Vacancy Loss ($)
rent (GPR) is attained and billed to < 95% poor 95% Good 90% D: Vacancy in higher rent apartments can skew numbers.
Poor GPR($)
residents/subsidy sources?

Prepared annually Prepared annually

Budget Estimate of anticipated income and reviewed monthly reviewed monthly
expenses; used as a road map for the w/in 10% w/in 10%
coming year's operations
Excellent +/- 0-3% Excellent +/- 0-3%
Budget Variances Variance from what was budgeted to Good +/- 4-7% Good +/- 4-7%
actual income and expense Poor +/- 8% or > Poor +/- 8% or >

Check market and review Review annually and at

Rent Adjustments move out
comparisons to maximum rents

everything < 30 days everything < 30 days

Accounts Payable & Accounts paid within the discount paid within the discount
Receivable period no late mortgage period no late mortgage
payments payments

Funds set aside on an annual basis to 5-20% of replacement NOT READY - TBD after
Replacement Reserves be used to pay for anticipated value; 5 yrs of discussion with funders
replacement of systems and repairs/replacements and policy implications
equipment.

10-25% of total annual

Operating Reserves budget; 3 mos. Exp & 3-6 Months
Funds set aside to be used to offset DS; 20-50% of
possible losses due to unexpectedly operating budget
low rent collections or unusually high
operating and maintenance costs.

Not more than 3% increase Not more than 3% increase

Energy & Water in consumption above in consumption above
Change in enery consumption from previous year's levels previous year's levels
year to year.

Financial Reports
Capital Needs Assessments
Financial Analysis:
Debt Coverage Ratio/Debt Service
Coverage Ratio
Project Debt Ratio
Debt Service per Unit
Net Cash flow per Unit
Net Cashflow as Percent of Effective How much vacancy loss or
Gross Income
Net Cashflow as Percent of Operating
Expenses
Expense to Revenue Ratio (Efficiency
Ratio)
Prepared by the 15th of
Prepared by 15th of month the month excellent, the
and include budget to 21st Good; includes
actual and YTD info budget to actual and YTD
info
An inventory of those property
components expected to require
replacement, or major repair, over
an extended horizon, typically 20
years, assessment of those
components' current condition, and
Reviewed annually; Reviewed annually;
their remaining useful lives, estimate updated every 5 years updated every 5 years
of cost for these replacement and
repair activities, and a projection of
capital expenditures, year by year,
aggregated to a bottom line.
Includes reserve analysis and
replacement schedule.
NOI
Hard Debt
Usually does not include soft or deferred debt.
The ratio of estimated net operating 1.15 Excellent
income to debt service. This ratio is 1.2 -1.3 = good 1.05 Good
established by lenders to provide a < 1.0 concern
cushion between the amount B: Critical measurement of ability to meet debt obligations –
remaining after payment of pulls together operational and deal components of a
operating costs and the amount of property. D: Recognize the treatment of soft and deferred
the annual mortgage payment. debt – Don’t lose sight of these!
1.05 Excellent
Debt ratio where the NOI includes 1.00 Good NOI / Hard Debt
asset and property management < 1.00 Concern
fees, reserves, and def. developer
fees above the line.
Amount of debt service attributed to
each unit Trend analysis tool
Amount of net income associated
with each unit Trend analysis tool
B: Better indicator of risk than DCR for extremely low-
5-10% Good Net Cashflow income projects where there is little debt. D:
uncollected rents the budget can Effective Gross Income (EGI) Recognize that there could be large fluctuations on a montly
tolerate before having a negative basis.
cashflow
B: Better indicator of risk than DCR for extremely low-
10% Excellent; 5-9% Net Cashflow income projects where there is little debt. D:
How much increased operating Good Operating Expenses Recognize that there could be large fluctuations on a montly
expenses the budget can tolerate basis.
before having a negative cashflow
<25% Excellent Operating Expenses A lower percentage is better since that means expenses are
How much you spend to make a Effective Gross Income (EGI) low. If expenses increase at a higher rate than revenues, this
dollar indicator could help predict when a project goes negative.

Expense Cost per Unit (PUPY)
Change over Time Calculation
Expiring Use Plan/Exit Plan
Loans Due
Compliance:
Funder Reports
Funder Inspections
Funder Requirements Reviewed
Staff Training
Reserve Deposits
Risk Management:
Insurance Assessment
Safety & security Assessments
Fire Drills
Fire Extinguishers
Evacuation Plan
The amount you are spending per
unit
How much have your costs
increased/decreased over time.
Trending, etc.
Tax credit and subsidy exit plans
chart with debt structure and
payments
The timeliness of reporting to
lenders and investors
assessment of current insurance
converage to ensure proper coverage coverage and cost for
to minimize potential exposure of
owners
Assessment of each property for the inspection form
safety and security of the tenants
A strategy for safely guiding residents
out of a property when an
emergency situation exists and for
potentially providing temporary
housing if warranted.
Total Costs
Number of Units B: Widely used in industry and allows measurement of costs
Varies regionally $5,797 KC Avg; $5,319
KC Median across different size properties. D: Recognize that this is
Can be used for total costs or within cost
subcategories – Maintenance, Admin, Utilities, not strictly “apples to apples.” Look at the treatment of
Insurance, etc utilities, reserves, resident services. Regional differences are
significant, as are types of housing (elderly/family, etc)
Current Year Cost –
Review annually Prior Year Cost B: Trending helps with projection of future costs/income.
Prior Year Cost (base year) D: For short-term measurement, numbers may be skewed by
nonrecurring expenses.
in yr 10 develop plan;
update annually; yr 14
engage plan for TC exit in
yr 15; for expiring use,
develop plan in advance
Review annually
timely & accurate timely & accurate
As scheduled As scheduled
Updated annually Updated annually
As needed and as there As needed and as there
are changes in are changes in
compliance compliance
requirements and staff requirements and staff
turnover turnover
By Year End
Review annually; shop Review annually; shop
every 3 yrs; Review every 3 yrs; Review
coverage and cost for
inflation inflation
Conduct at least once Conduct at least once
per year; include basic per year; include basic
safety & security items safety & security items
in monthly property in monthly property
inspection form
Twice a year Twice a year
Inspected once per year; Inspected once per year;
locations checked locations checked
weekly for presence weekly for presence
Developed and posted; Developed and posted;
reviewed annually reviewed annually
 Terms & Calculations not an exhaustive list

Gross Potential Rent (GPR) Total rent which could be collected if units are 100% Number of units x monthly
occupied rent x 12 months = GPR

Revenue available to pay for all operating expenses,

Effective Gross Income (EGI) including reserves, plus debt service and capital GPR - Vacancy loss + other
expenses income = EGI

Net Operating Income (NOI) Revenue available for debt service and capital
expenses, after deducting operation expenses from EGI. EGI- Operating Expenses = NOI

Current portion of principal +

current portion of interest +
Debt Service mortgage insurance payment +
Current interest and principal due on hard debt. May other Mortgage fees = Debt
also include other financial expenses such as mortgage Service
insurance premiums and service fees.

Hard Debt Principal and Interest payments that must be paid

(serviced) during the current period.

Cash remaining after operation expenses, including

Cash Flow replacement reserves, debt service, and capital
expenses are deducted from EGI

Present Value Coverting future dollars into today's dollars

Future Value

Internal Rate of Return compound yield rate of the investment over its holding
period

Allows the analysis in today's dollars of the anticipated

Net Present Value performance of the future cash flow stream of the
asset

Cap Rate

Operations Manual a written statement of a property management

organization's basic policies, procedures and forms.
Management agreement A written contract between the owner and the entity
that will directly manage the property.

Return on Equity measures the current cash dividend earned by the

investor on equity invested in the asset

B: Good sense of whether residents are

getting good maintenance service. D:
Ttl Days to Complete All W.O Difficult with a manual workorder
Average Days to Complete Number of W.O Completed
How long workorders are taking to be done system. May not be counting those
Workorders workorders not yet completed, which
may point a very different picture of
performance. May not delineate
between emergency and routine
workorders.

B: Insight into spending priorities, how

Target Category Cost (Admin) your’e spending your money.
Percent of Total What proportion of Total Cost (Total Budget) D:
Measure of how much

B: Good measure of whether you’re on

Incomplete/Outstanding workorder top of maintenance management. D:
How many workorders are outstanding and incomplete
Backlog Number of incomplete workorders By itself, it may not tell the entire
at a given time picture.

Workorder Backlog
Workorder Completion Ratio
Incomplete Workorders
How long a backlog exists Average Number of Workorders B: Perspective on numbers of
Completed outstanding workorders. D: Can be
misleading – Arrears can be increasing
despite high percentage on arrears.
Completed Workorders B Are you keeping up with your new
New Workorders Issued work? D: No insight into types of work
Are we keeping up with new workorders? completed

Cash Flow Needs to be calculated annually as

Return on Equity Equity
The rate of return earned on the equity invested over a equity can change due to pay down of
specified period of time. principal and property appreciation.

Cash Flow Investment does not necessarily equal

Return on Investment equity. Initial investment does not
Initial Investment
The rate of return earned on the initial investment. change as equity changes.

password to unlock guidelines sheet: Asset

 Asset Management Dashboard, Org

Marketing & Leasing Benchmark Frequency Pro 1 Pro 2 Pro 2 Pro 3 Pro 4 Pro 5 Pro 6

Number of Units 44 46 19 43 47 80 0
98% Excellent
Occupancy Rate (as a percentage of potential 95% Good
M
days of occupancy) 90% Poor

YTD
< 14 days excellent
Unit Turnaround Time 21 days good YTD average
30+ days unacceptible
Vacant Units at last date of month
<5% Excellent
Resident Turnover Rate < 15% Adequate TYD
> 30% unacceptible

Collections and Evictions:

97-100% Excellent
Percentage collected 93-96% Good A
90-92% Poor

Percentage of Current Rent Collected > 95% Excellent M

Notice to Pay or Quit M
5 days after rent is due
Demand Notices Day 16 M
Payment Plans M
Demand Total Owed M
Maintenance & Management:

Unit Make Ready Time M

< 10 days

Unit Inspections
Per policies
Fiscal Management:
0-5% Excellent
Budget Variances 6-10 % Good M
> 11% Unacceptible

Replacement Reserves Minimum standard to M

meet funder
requirements; should be
based on current C.N.A.

Operating Reserves 3 mos of expenses M

including replacement
reservces & debt service

Capital Needs Assessments Reviewed annually; A

Updated every 5 years

95% Good M
90-94% Investigate
Economic Collection - ?? < 90% Poor

Financial Analysis:

Expense to Revenue Ratio (Efficiency Ratio) M

< 25%
Expense Cost per Unit (PUPY) Total costs inc. reserves; A
$5,319
Compliance:

Funder Reports M
Timely & Accurate
Begun 90-120 days
Re-Certifications before due & 100% M
completed on time

Project Debt Ratio (uses loaded NOI w/AM fee, PM fee, 1.05 excellent, 1.00 Q
Reserves, and Def. Developer Fee above the line)
good, <1.0 concern
Debt Coverage Ratio/Debt Service Coverage 1.15 excellent, 1.05 A
Ratio good, <1.0 concern

Current

12 Months Prior
Scores

24 Months Prior
Notes:
 USER MATRIX
BEST PRACTICES: Affordable Housing - general v. 9-11-08
Marketing & Leasing What it measures Industry Standard HDC Members - King Co. Marketing Property Asset Mgmt ED Board AM Comm
Standard & Leasing Mgmt

Occupancy as a measurement of 98% Excellent

Occupancy Rate (as a percentage of < 95% poor
potential days of occupancy) potential days occupied rather than 95% Good
percentage of dollars. 90% Poor

Occupancy at Point in Time Percentage of units occupied at a < 95% poor

given point in time

- At least 5 active
Updated every 6 months applicants per unit size
Wait List Can be an indicator of need or and at least 5 active and type
demand applicants per apt.
- Update every six
size/type
months

< 14 days excellent

Unit lease up Time 10 days or less 21 days good 30+
Time needed for leasing vacant unit days unacceptible

Unit Turnaround Time How long is it taking you to reoccupy 3-5 days Excellent 6- < 14 days excellent
14 days Acceptible 21 days good 30+
vacant units days unacceptible
>14 days Unacceptible

0-5% Excellent < 5% Excellent

Resident Turnover Rate Proportion of your population that is < 15% Adequate
moving out 8-15% Good
>15% Poor < 30% Unacceptable

Lease Review Have legal representation review and Semi Annual or annual
comment current lease language
income certifications required by 100% accurate at time of
Certifications lease signing
funding sources

Begun 90-120 days before Develop annual schedule;

100% of recerts conducted
Re-Certifications due & Completed 30 days
on time and approved by
recertifications of income before due Certification Specialist
qualifications

Monthly inspections Conduct weekly

performed by property inspections of property
exterior, grounds, common
Curb Appeal manager; Weekly spaces, signage, and
inspections of vacancy office ; montly inspections
problem exist using checklist
The visual attractiveness of a
property
6 mos prior to lease up;
Marketing Plan A written plan to market project to Min. Annually or as
fill vacant units required

Management Plan
Collections and Evictions:
Percentage collected
A written statement of how the At least annually & when At least annually & when
housing manager plans to coordinate contract expires with contract expires with
Property Mgmt Co. Property Mgmt Co.
the basic management functions to
meet the owner's objectives,
policies, and procedures.
97-100% Excellent 97-100 % Excellent
Gross cash collections as a 93-96% Good 93-96% Good
<92% Poor 90-92% Poor
percentage of billings

97-100 % Excellent
Percentage of Current Rent Collected >97% Excellent 93-96% Good
90-92% Poor
What percentage of the current
period’s billings are being collected

Percentage of Arrears Collected What proportion of arrearages are 100% 100% of ongoing tenants
being collected

Quick and dirty analysis of how the 95% Good 90-

Economic Collection asset is performing financially 94% Investigate <
(usually compared to a plan) 90% Poor

File notice to quit within

10 days of rent File notice to pay or quit
Notice to Pay or Quit nonpayment; success rate within 10 days of
nonpayment of rent
monitor: >90%
Tentant Relations/Services:
Distribute to each
Rules pertaining to the property not household as lease
Property/House/Resident Rules included in the body of the lease but attachment; review at least
usually attached to the lease as an annually & update as
attachment needed.

The extent to which a property is Annually & at Move Out;

Tenant Surveys able to ascertain levels of tenant satisfaction >85% Annually; satisfaction >85%
satisfaction with the management of
the property.
Monthy = Excellent
Newsletters Quarterly = Good
<Qtrly=Poor

Services Agreements
Maintenance & Management:
Unit Make Ready Time
Unit Inspections
Exterior Inspections
Total Maintenance Expenses
Work Order Completion Times
Fiscal Management:
Occupancy Rate (as a percentage of
GPR)
Budget
Budget Variances
Rent Adjustments
Accounts Payable & Accounts
Receivable
Replacement Reserves
Operating Reserves
Energy & Water
Financial Reports
Capital Needs Assessments
Financial Analysis:
Review and update
Plan for service providers which annually at budget and
includes property policies and at contract renewal
procedures
2-3 days Excellent
Time for maintenance to make a 4-7 days Good < 10 days
vacant unit ready for occupancy >7 days Poor
Once Every 6 mos
Excellent; Once per year
Good; Longer than a year
Per established policies
Review by property management
staff of interior of units Poor
Conduct monthly
inspections of property
Monthly inspections with exterior, grounds, common
checklist; Weekly visual spaces, and office using
The physical attractiveness of a inspections checklist; weekly
property in terms of cleanliness, inspections if vacancy
level of maintenance of common problems persist
areas, exterior and grounds.
Labor 75%; Materials
Benchmark of maintenance 25%; within 10% of Within 10% of budget
expenses within budget budget
Emergency - within 24 Emergency - within 24
hrs; Preventative - hrs; Preventative -
within 2 weeks of within 2 weeks of
How long workorders are taking to schedule; Routine - as schedule; Routine - as
be done scheduled; Resident scheduled; Resident
Request - respond Request - respond
within 24 hrs/completed within 24 hrs/completed
in 5 days in 5 days
What percentage of gross potential 98 % Excellent
< 95% poor
rent (GPR) is attained and billed to 95% Good 90%
residents/subsidy sources? Poor
Prepared annually Prepared annually
Estimate of anticipated income and reviewed monthly reviewed monthly
expenses; used as a road map for the w/in 10% w/in 10%
coming year's operations
Excellent +/- 0-3% Excellent +/- 0-3%
Variance from what was budgeted to Good +/- 4-7% Good +/- 4-7%
actual income and expense Poor +/- 8% or > Poor +/- 8% or >
Check market and review Review annually and at
move out
comparisons to maximum rents
everything < 30 days everything < 30 days
paid within the discount paid within the discount
period no late mortgage period no late mortgage
payments payments
Funds set aside on an annual basis to 5-20% of replacement NOT READY - TBD after
be used to pay for anticipated value; 5 yrs of discussion with funders
replacement of systems and repairs/replacements and policy implications
equipment.
10-25% of total annual
budget; 3 mos. Exp &
Funds set aside to be used to offset DS; 20-50% of 3-6 Months
possible losses due to unexpectedly operating budget
low rent collections or unusually high
operating and maintenance costs.
Not more than 3% increase Not more than 3% increase
in consumption above in consumption above
Change in enery consumption from previous year's levels previous year's levels
year to year.
Prepared by the 15th of
Prepared by 15th of month the month excellent, the
and include budget to 21st Good; includes
actual and YTD info budget to actual and YTD
info
An inventory of those property
components expected to require
replacement, or major repair, over
an extended horizon, typically 20
years, assessment of those
components' current condition, and
Reviewed annually; Reviewed annually;
their remaining useful lives, estimate updated every 5 years updated every 5 years
of cost for these replacement and
repair activities, and a projection of
capital expenditures, year by year,
aggregated to a bottom line.
Includes reserve analysis and
replacement schedule.

Debt Coverage Ratio/Debt Service
Coverage Ratio
The ratio of estimated net operating 1.15 Excellent
income to debt service. This ratio is 1.2 -1.3 = good 1.05 Good
established by lenders to provide a < 1.0 concern
cushion between the amount
remaining after payment of
operating costs and the amount of
the annual mortgage payment.

1.05 Excellent
Project Debt Ratio Debt ratio where the NOI includes 1.00 Good
asset and property management < 1.00 Concern
fees, reserves, and def. developer
fees above the line.

Debt Service per Unit Amount of debt service attributed to

each unit

Net Cash flow per Unit Amount of net income associated

with each unit

Net Cashflow as Percent of Effective How much vacancy loss or 5-10% Good
Gross Income uncollected rents the budget can
tolerate before having a negative
cashflow

Net Cashflow as Percent of Operating 10% Excellent; 5-9%

Expenses How much increased operating Good
expenses the budget can tolerate
before having a negative cashflow
Expense to Revenue Ratio (Efficiency How much you spend to make a <25% Excellent
Ratio) dollar

Expense Cost per Unit (PUPY) The amount you are spending per Varies regionally $5,797 KC Avg; $5,319
unit KC Median

Change over Time Calculation How much have your costs Review annually
increased/decreased over time.
Trending, etc.

in yr 10 develop plan;
update annually; yr 14
Expiring Use Plan/Exit Plan engage plan for TC exit in
yr 15; for expiring use,
develop plan in advance
Tax credit and subsidy exit plans

Loans Due chart with debt structure and Review annually

payments
Compliance:

Funder Reports The timeliness of reporting to timely & accurate timely & accurate
lenders and investors

Funder Inspections As scheduled As scheduled

Funder Requirements Reviewed Updated annually Updated annually

As needed and as there As needed and as there

are changes in are changes in
Staff Training compliance compliance
requirements and staff requirements and staff
turnover turnover

Reserve Deposits By Year End

Risk Management:
Review annually; shop Review annually; shop
assessment of current insurance every 3 yrs; Review every 3 yrs; Review
Insurance Assessment converage to ensure proper coverage coverage and cost for coverage and cost for
to minimize potential exposure of inflation inflation
owners

Conduct at least once Conduct at least once

per year; include basic per year; include basic
Safety & security Assessments safety & security items safety & security items
in monthly property in monthly property
Assessment of each property for the inspection form inspection form
safety and security of the tenants
Fire Drills Twice a year Twice a year

Inspected once per year; Inspected once per year;

Fire Extinguishers locations checked locations checked
weekly for presence weekly for presence

A strategy for safely guiding residents

Evacuation Plan out of a property when an Developed and posted; Developed and posted;
emergency situation exists and for reviewed annually reviewed annually
potentially providing temporary
housing if warranted.
 Equity Private Public
Investor Funder Funder
List of Best Practicies
Special Needs Housing TO BE ADDED AT A LATER DATE
Marketing & Leasing What it measures Industry Standard

Collections and Evictions:

Tentant Relations/Services:

Maintenance & Management:

Fiscal Management:

Financial Analysis:
 Compliance:

Risk Management:
A LATER DATE
King County Standard Calculation Benefits & Drawbacks