CLIENTELE Describe clientele: low-income, very low-income, market, or specialized such as elderly, disabled, etc. If the clientele are individuals with disabilities, describe whether the project is an integrated setting according to Olmstead. If the project is vacant, provide details as to how residents were relocated and why. Provide current and historical occupancy levels (at 5 years). If project is occupied, is relocation a possibility? Is there an active tenant organization at the property? If so, provide name of organization and any recent involvement/meetings with said organization. FINANCIAL INFORMATION Provide a summary of information related to the current expenses, operating budget for the project. Are there existing circumstances which cause a higher operating cost, e.g., high crime, vandalism, deferred maintenance issues, recent weather disasters affecting the project, etc.? Describe how the current ownership/management is performing with regard to managing expenses. Include tax information: are taxes current or delinquent; when are taxes due again and is the owner in position to pay? Will an advance be required for the payment of taxes or are there funds in the reserve to cover taxes? Attach a copy of the latest profit and loss for the project, latest MAR review and an appraisal of the fair market value (if less than 5 years old). PROBLEMS CAUSING DEFAULT Discuss type(s) of default: fiscal, default of mortgage/HAP covenants, physical. Is default due to poor management, non-responsive lack of preventative maintenance, environmental issues, or a soft market? Provide a clear explanation of why the property failed (owner failing to make mortgage payments does not explain why they were not made). Is there a work-out agreement or modification in place? What provisions of the agreement or modification is not in compliance? Is there an action plan in place? Provide time in default. EFFORTS TO RESOLVE Provide a narrative of actions taken to cure deficiencies, violations: e.g., property is eligible for OAHP but declined; HUD requested change of management and owner refused. Outline history of problems and any/all actions to cure. DISPOSITION RECOMMENDATION Provide the recommendation for disposition, either note sale or property disposition (PD). If recommendation is foreclosure include conditions of sale such as highest,
CLIENTELE Describe clientele: low-income, very low-income, market, or specialized such as elderly, disabled, etc. If the clientele are individuals with disabilities, describe whether the project is an integrated setting according to Olmstead. If the project is vacant, provide details as to how residents were relocated and why. Provide current and historical occupancy levels (at 5 years). If project is occupied, is relocation a possibility? Is there an active tenant organization at the property? If so, provide name of organization and any recent involvement/meetings with said organization. FINANCIAL INFORMATION Provide a summary of information related to the current expenses, operating budget for the project. Are there existing circumstances which cause a higher operating cost, e.g., high crime, vandalism, deferred maintenance issues, recent weather disasters affecting the project, etc.? Describe how the current ownership/management is performing with regard to managing expenses. Include tax information: are taxes current or delinquent; when are taxes due again and is the owner in position to pay? Will an advance be required for the payment of taxes or are there funds in the reserve to cover taxes? Attach a copy of the latest profit and loss for the project, latest MAR review and an appraisal of the fair market value (if less than 5 years old). PROBLEMS CAUSING DEFAULT Discuss type(s) of default: fiscal, default of mortgage/HAP covenants, physical. Is default due to poor management, non-responsive lack of preventative maintenance, environmental issues, or a soft market? Provide a clear explanation of why the property failed (owner failing to make mortgage payments does not explain why they were not made). Is there a work-out agreement or modification in place? What provisions of the agreement or modification is not in compliance? Is there an action plan in place? Provide time in default. EFFORTS TO RESOLVE Provide a narrative of actions taken to cure deficiencies, violations: e.g., property is eligible for OAHP but declined; HUD requested change of management and owner refused. Outline history of problems and any/all actions to cure. DISPOSITION RECOMMENDATION Provide the recommendation for disposition, either note sale or property disposition (PD). If recommendation is foreclosure include conditions of sale such as highest,
CHAP8.03_SRVC_MON_HH_MTG.DOCX