New Ways Business Intelligence is Better Positioning Affordable Operators

Each year, the Department of U.S. Housing & Urban Development offers incentives that are essential to the survival of many affordable housing communities. Grant programs and claims processes provide “revenue” for an industry whose success is largely determined by managing expenses to the last penny. Operators who stay on top of HUD opportunities can ensure the survival of the industry’s overarching mission to make people’s lives better. HUD annually awards discretionary funding through more than 20 Grant programs that support the agency’s initiatives, including Affordable Housing Development and Preservation. The competitive grants provide the necessary capital for many affordable operators who may not have the resources to enhance resident living and enable operational efficiencies through property improvements. In February, HUD’s Capital Fund Program awarded more than $2.7 billion to public housing authorities in all 50 states, as well as the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands. The money was earmarked for about 2,900 public housing authorities to build, repair, renovate, and/or modernize public housing in their communities. HUD and other subsidies also reimburse operators for some expenses, including utility expenses, attributed to vacancies. If an apartment is sitting empty and incurring $20 in electricity, the housing provider can make a claim and receive reimbursement. Securing grants and recovering some expenses are ways that affordable properties can inject money that is essential to operations. But applying for grants is an arduous process that includes a plethora of documentation about the true health of the property, and not just the physical condition. To justify the award, operators must disclose key financial information, including re-certifications. Capturing a special claim also requires documentation and dedicated staff attention. Often, properties are unable to submit or...