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VCDC’s asset management team closely monitors and reports on projects with the ultimate goal of meeting all financial obligations and avoiding foreclosure. We ensure housing is developed to meet strong underwriting criteria and remain sustainable for the full life of the investment.
Our team meets monthly to review properties in lease-up, properties under construction, and potential projects.
- Pre-lease-up activity and initial lease-up. VCDC’s asset management staff conducts pre-lease-up meetings with the general partner and property staff approximately 180 days prior to the project’s initial lease-up. We provide technical assistance in the areas of compliance, lease-up, marketing plan development, and unit mapping. We work directly with the property’s management staff to ensure their understanding of the lease-up process.
- Initial compliance. VCDC’s compliance management team reviews and approves first-year resident files prior to move-in to verify the household meets Section 42 requirements. In the event that additional file maintenance is necessary, we communicate the required corrective measures and provide a follow-up review to ensure all compliance corrections have been completed. VCDC maintains a complete copy of all first-year files in an offsite fireproof facility.
- Annual compliance audits and physical inspections. VCDC conducts compliance audits consisting of a 20% file review for each project in our portfolio. The audits are conducted at either 12- or 18-month intervals. To ensure compliance with Section 42 requirements, annual audits include a review of all LIHTC documentation.Portfolio directors perform physical inspections, including all vacant units, at 12- or 18-month intervals. We refer significant physical findings to the VCDC’s construction specialist for further investigation and reporting. We complete a site visit report and deliver a copy to the sponsor.
- Ongoing Technical Assistance. VCDC provides ongoing property management and LIHTC technical assistance for project sponsors. Regional workshops are periodically conducted to assist property staff and to ensure that projects are well maintained and that regulatory and financial expectations are met.
- Watch List Management. VCDC follows a modified version of the Affordable Housing Investors Council (AHIC) Risk Rating Guidelines to identify watch list conditions. We closely monitor Low and High Watch projects until the condition is cured.
For more information regarding VCDC’s Asset Management Program, contact Tera Lockley.