Texas State Affordable Housing Corporation

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1 Vista Landing 4620 Thousand Oaks Drive San Antonio, TX Owner: The American Opportunity Foundation, Inc. Date Built: 1983 Mgmt Company: US Residential Group Property Manager: Nathaniel Esmonde Inspection Date & Time: February 12, 2013 at 9:00 AM Inspector s Name: Mindy Green Occupancy at Time of Report: 75% Average Occupancy Over Last 12 Months: 78% Number of Units: 296 Number of One Bedrooms: 192 Number of Two Bedrooms: 104 Number of Three Bedrooms: N/A Number of Four Bedrooms: N/A PHYSICAL INSPECTION YES NO N/A 1) Are the access gates in operable condition? X 2) Is the community monument sign in acceptable condition? X 3) Is the perimeter fence surrounding the property in acceptable condition? X 4) Are the grounds and landscaping in acceptable condition? X 5) Are trees and shrubs properly trimmed? X 6) Are the grounds free of erosion, foot paths and tree root elevation? X 7) Are sidewalks clean and in good repair? X 8) Is parking lot clean and in good repair with handicap parking clearly marked? X 9) Are recreational/common areas clean, maintained and accessible? X 10) Are laundry facilities clean, maintained and accessible? X 11) Is facility equipment operable and in acceptable condition? X 12) Is the area around the waste receptacles clean and are the enclosures in good repair? X 13) Is the exterior of the buildings in acceptable condition? X 14) Are hallways clean and maintained? X 15) Are storage/maintenance areas clean, maintained and organized? X 16) Are building foundations in good repair? X 17) Are the gutters, downspouts and fascia boards on the buildings in good repair? X 18) Do the building roofs appear to be in good condition? X 19) Do balconies and upper level walkways appear to be in good condition? X 20) Do windows, blinds, doors, and trim appear to be in good condition? X 21) Is Management addressing all health, fire or safety concerns on the property? X 22) Have repairs or corrections recommended or required from the last physical inspection been satisfactorily completed? X On the day of the site visit the curb appeal near the leasing office was in good condition. However, throughout the property there were areas with exposed tree roots, erosion, foot paths, and exposed foundations. The leasing office and all common areas and amenities appeared to be clean and in working order. There was a management change on the property in January and the property continues to be in flux while the new management team gets organized. Observations: On the day of the site visit, some wooden planks were falling off the side of building 10. It is suggested that a review of the property be completed to ensure there are not any other areas with missing siding. An inventory of the affected areas should be taken and the repairs should be made immediately. On the day of the site visit, the breezeways were particularly dirty. There were stains, cobwebs, old birds nest, and other unsightly issues. It is suggested that management have all breezeways power washed. In addition, it is suggested that power washing breezeways should be added to the regular maintenance activities. SECURITY PROGRAM Part I 1) After review of the prior 2 months of police reports, the following incidents were noted and includes the number of times incidents occurred: Incident Type # of Occurrences Comments: Burglary 1 1

2 Theft 5 Theft (2), Theft of Vehicle (1), Theft in Progress (1), Burglary of Individual (1) Criminal Mischief Personal Assault 6 Assault in Progress (3) Fight (3) Drug Activity 1 Narcotics Laws Gunfire 1 Disturbance Gun Involved Domestic Violence 1 Family Violence Disturbance 19 Fireworks (1), Family (5), Disturbance (10), Neighbor (1), Loud Music (2) Other 2) Is the property currently following a crime prevention plan/program? The property does not have a written crime report in place. 3) What pro-active measures is the property taking to address crime on the property? Bexar County Sherriff s patrol the property after hours and management intends to hold regular crime watch meetings 4) How often is a light check conducted on the property? Who performs light checks on the property? Maintenance staff performs light checks weekly. Management has been submitting monthly crime reports to TSAHC and has been proactive with addressing criminal activity on the property. However, the amount of 911 calls has only decreased slightly; therefore the property will remain on monthly crime reporting. Regular crime watch and security meetings are encouraged to notify residents of criminal activity and instruct residents on proper reporting of incidents. SECURITY PROGRAM Part II YES NO N/A 1) Is the Staff trained in addressing crime on the property? X Does the Management Policy or the Resident Services Program address any of the following activities responding to the needs of the community? Violent Crime X Drug Activity X Family Violence X Other X 2) Is the property free of graffiti and vandalism? X 3) Are criminal background checks being conducted on all residents over 18 years of age? X 4) Has a risk assessment been conducted to determine (risk) liabilities at the property? X New management is not aware of an assessment being conducted however; management performed a full property inspection upon take over in January and stated that all issues have been cured. OFFICE YES NO N/A 1) Is the office neat, the desk uncluttered? X 2) Are accurate office hours posted? X 3) Are emergency phone numbers posted? X 4) Are the EHO logos clearly posted? X 5) Are the following displayed in full view in the leasing office? Fair Housing Poster X Occupancy Qualifications X 6) Are property licenses and permits on file and renewed on a timely basis? X 7) Are insurance binders maintained on vendors on-site and/or at the corporate office? X 8) Is there a compliance department that ensures the set aside and eligibility requirements are being X maintained? 9) Which of the following community amenities are provided for resident use? Playground X Community Room X BBQ/Picnic Area X Laundry Facility X Business Center X Pool X Other (Fitness Center & Sport Court) X KEY CONTROL YES NO N/A 2

3 1) Are all property keys properly coded? X 2) Is key box locked and secured? X 3) Is the key code list kept separate from the key box? X 4) Are locks being changed during turnover of vacant units and turnover of staff? X MAINTENANCE PROGRAM YES NO N/A 1) Does the property have a preventative maintenance program? X 2) Is the preventative maintenance schedule being implemented? X 3) Is the maintenance shop clean and organized? X 4) How often are Pest Control services provided? Pest control is performed every Tuesday. In addition, each building is serviced on a rotating schedule. 5) Does the maintenance area have properly documented MSDS material and chemicals labeled properly? A MSDS binder was not found in the maintenance area. However, there was a MSDS binder in the office. Management stated that they would move the binder into the maintenance area. 6) What is the policy on follow ups for completed service requests? Management performs follow up calls on work orders involving major issues. 7) What is the property s after hours emergency policy? Residents call the office and calls are answered by a live answering service. 8) What capital improvements have been scheduled or completed for this budget year? Foundation repairs and roof repairs on specific buildings will be completed in ) Unit Interior upgrades 10) Appliance Replacements 11) Building Exterior repairs 12) Curb Appeal upgrades 13) Amenity upgrades 14) Other repairs or replacements Detail of Ongoing Repairs and Replacements Completed in Last Budget Year Number of service requests received: 168 Number of service requests completed: 168 Number of service requests completed within 24 hours: 39 Number of outstanding service requests: 0 Management was unable to answer questions 9-14 because they have only been at the property since January 2 nd, ) Complete the table below with the most recent information available. MARKETING SOURCE COST # of Prospects # of Leases Drive-By/Word of Mouth $ Flyers $100 Resident Referral $ Locator Service (100% for MKT and 50% for Section 8) New management hasn t experienced many locators Printed Advertising $0 2 0 Internet Advertising (Social Media, Go Section 8 ($50), ADS ($160), Weblisters($50), property website, rent.com ($360) $570 4 Other Source (Local Business Referrals) 9 4 TOTAL $1, The rental activity reflected in the above table was from January 13, 2013 tofebruary 13,

4 YES NO N/A 2) Is the property doing bilingual advertising? X 3) Does the property have any competitors nearby? X 4) How often are competitors shopped? Competitors are shopped monthly. 5) How often is a market survey completed? A market survey is completed monthly. LEASE RENEWAL YES NO N/A 1) Does it appear that an effective lease renewal program in place? X 2) What percentage of residents renewed last month, past 6 months, and past 12 months 3) When are the lease renewal/rent increase notices sent to residents? Recertification notices are sent 90 days prior to lease expiration. 4) Are individual files being reviewed to determine renewal/non-renewal status? X 5) How are renewals tracked and monitored? Renewals are being tracked via Yardi and through a renewal binder. Current: 0% 6) Are rent increases being implemented? $10 7) What is the number of month-to-month leases? 9 8) What is the month-to-month charge? MKT + $100 6 months: 22% 12 months: 25% Management of this property was taken over in January Therefore, the records for the past 12 months were provided with the limited information that was made available to the property and the reviewer. The renewal percentages represented here may not be accurate. VACANT/MAKE READY UNITS 1) Number of vacant units at time of activity report: 70 2) Number of completed made ready units at time of activity report: 16 3) Number of completed one bedroom units at time of activity report: 10 4) Number of completed two bedroom units at time of activity report: 6 5) Number of uncompleted made ready units at time of activity report: 54 6) Number of uncompleted one bedroom units at time of activity report: 39 7) Number of uncompleted two bedroom units at time of activity report: 15 Units Walked (model and minimum of 3 make ready units) Unit # Brief Description (See Unit Inspection Sheet for details) 409 2x1 Made Ready 413 2x1 Made Ready 705 1x1 Made Ready 716 1x1 Nearly Made Ready 923 1x1 Nearly Made Ready 1004 Model x1 Made Ready (Leak in Bathroom) x1 Made Ready x1 Made Ready x1 Made Ready Units Walked (units vacant and unready for extended period of time and all down units) Unit # Brief Description (See Unit Inspection Sheet for details) 707 1x1 Vacant not made ready for more than 380 days 708 1x1 Vacant not made ready for more than 230 days 711 1x1 Vacant not made ready for more than 315 days 714 1x1 Vacant not made ready for more than 555 days 715 1x1 Vacant not made ready for more than 455 days 717 1x1 Vacant not made ready for more than 380 days 4

5 718 1x1 Vacant not made ready for more than 220 days 920 1x1 Vacant not made ready for more than 205 days x2 Vacant not made ready for more than 235 days x2 Vacant not made ready for more than 775 days x2 Vacant not made ready for more than 895 days x1 Vacant not made ready for more than 410 days x1 Vacant not made ready for more than 350 days x1 Vacant not made ready for more than 530 days x1 Vacant not made ready for more than 250 days 1) Does the Unit Availability Report match the make ready board? X YES NO N/A 2) Are units being turned in a timely manner? X 3) Are there any down units? X 4) Are there vacant units that have been vacant for an extended period of time? X 5) What system is used by management to monitor the timely preparation of units? Management uses the make ready board and schedule to ensure units are made ready as they are leased.. 6) How often are occupied units inspected? Each unit is inspected at least once quarterly. 7) How often are vacant units inspected? Vacant units are inspected at least once monthly. 8) How many vacant unready units are in progress of being made ready? Eight units are in progress and two are nearly made ready. 9) What is the company policy on the number of days to turn vacant units? Company policy is to turn vacant units in 5 business days. The property has several units that are vacant and not made ready for an extended amount of time. The units haven t been turned due to a lack of funds to make the units ready for move in. In addition, the occupancy and traffic at this property has not supported the amount of units that are available. Finding: Units 707, 708, 711, 714, 715, 717, 718, 920, 1018, 1021, 1024, 1202, 1205, 1211, and 1613 are considered down because they are not available for rental on a continuous basis to members of the general public. In response to this review, the owner must submit proof that the units are back on-line and available for rental to the general public in the form of invoices, work orders, pictures, and/or Tenant Income Certifications to TSAHC. Once TSAHC has reviewed Tenant Income Certifications, invoices, work orders and/or pictures and have given Management approval, then the unit can be added back to the Unit Status Report with a market designation until a qualified household occupies the unit. BUDGET MANAGEMENT YES NO N/A 1) Is management using the current budget to monitor and control operating expenses? X 2) How many bids are solicited in order to obtain materials, supplies, and services? Three bids are collected for major expenses. 3) Have there been any large unexpected repairs or purchases that have negatively affected the budget? The property has not experienced any major repairs or purchases that have negatively affected the budget. 4) Explain YTD variances of 10% or greater. Expense Items that Varied by 10% or Greater from the Budget for Year to Date Operations Ending (Please note that a positive variance is under budget and a negative variance is over budget.) EXPENSE ITEM ACTUAL BUDGET VARIANCE % EXPLANATION Repairs & Maintenance $90,955 $63,036 -$27,919-44% Painting, Supplies Make Ready $75,359 $109,504 $34,145 31% Resurfacing, Painting, Painting Supplies Marketing & Advertising $45,852 $62,186 $16,334 26% Locator Fees, Publications REVENUE FOR THE MONTH OF December, 2012 YEAR TO DATE Gross Potential $173,750 Gross Potential $2,085,878 5

6 Budgeted 172,752 Budgeted 2,064,140 Variance + (-) 998 Variance + (-) 21,735 Collected to Date 115,749 Collected to Date 1,337,812 Other Revenue 9,275 Other Revenue 111,862 Total Collected 125,024 Total Collected 1,449,674 Budgeted 146,834 Budgeted 1,534,766 Variance + (-) -21,810 Variance + (-) -85,092 ACCOUNTS PAYABLE YES NO N/A 1) Is the payable report up to date? X 2) Is the property in good standing with all vendors? X 3) How often are invoices processed? Invoices are processed weekly. In addition, management is still receiving outstanding invoices from prior management. 4) If payments are a problem, what is management doing to correct the problem? Management has made draws from the reserves to pay vendors and as occupancy rises, income will also increase and hopefully be able to independently pay vendors. At least $41,014 of outstanding payables is outstanding from prior management. Current management stated that they have a plan in place to pay down debt. Current: $13, Days: $7, Days and Over: $41,019 TOTAL $62,014 DELINQUENCIES YES NO N/A 1) Is the delinquency report up to date? X 2) What is the collection policy for outstanding rents? If rent is not paid by the 4 th, the management gives a 3 day notice to vacate to residents. 3) When is legal action taken against delinquent accounts? If payment arrangements are not made, then eviction is typically filed on the 10 th. 4) Does the property currently have any resident(s) under eviction? $5,743 5) Does Housing have any outstanding balances? $965 Current: $11, Days: $4, Days and Over: $57 TOTAL $15,701 RETURNED CHECKS YES NO N/A 1) Total number of returned checks in the past 3 months: 2) Has the manager collected and deposited all returned checks? X 3) Is the manager following company policy on returned checks? X New Management was unable to provide the reviewer with historical returned check information. PERSONNEL YES NO N/A 1) Does owner/agent have a system/procedure for providing field supervision of on-site personnel? X 2) Does the property appear to be adequately staffed? X 3) Is overtime being controlled? X 4) Were requested pre-audit reports submitted on time? X 5) Does it appear that personnel are team oriented? X 6) Are name tags/photo IDs being worn by the maintenance personnel? X 7) Was management staff prepared for the site visit? X 8) How often are staff meetings held? Staff meetings are held weekly. 9) Have personnel been trained in Fair Housing? X 6

7 10) List training staff has received in the past year. Grace Hill, Housing Credit College, Fair Housing, Elizabeth Mooreland, Sexual Harassment, Leasing, Legal Seminars, and inspection training have been completed or will be completed by the end of the year. OWNER PARTICIPATION YES NO N/A 1) Does the owner have access to computer generated reports? X 2) How often are the reports submitted to the owner? Reports are sent to the owner monthly. 3) What is the dollar amount of an unbudgeted or over budget expense that requires owner approval for the release of funds? On-site management has a $500 limit and the District Manager has a $1000 limit for over budget or unbudgeted expenses. before approval from the owner is required. 4) Are the funds for needed capital improvement items, turning of units, and marketing campaigns released by the owner according to what has been budgeted? X Finding: SUMMARY OF OBSERVATIONS AND FINDINGS Units 707, 708, 711, 714, 715, 717, 718, 920, 1018, 1021, 1024, 1202, 1205, 1211, and 1613 are considered down because they are not available for rental on a continuous basis to members of the general public. In response to this review, the owner must submit proof that the units are back on-line and available for rental to the general public in the form of invoices, work orders, pictures, and/or Tenant Income Certifications to TSAHC. Once TSAHC has reviewed Tenant Income Certifications, invoices, work orders and/or pictures and have given Management approval, then the unit can be added back to the Unit Status Report with a market designation until a qualified household occupies the unit. Observations: On the day of the site visit, some wooden planks were falling off the side of building 10. It is suggested that a review of the property be completed to ensure there are not any other areas with missing siding. An inventory of the affected areas should be taken and the repairs should be made immediately. On the day of the site visit, the breezeways were particularly dirty. There were stains, cobwebs, old birds nest, and other unsightly issues. It is suggested that management have all breezeways power washed. In addition, it is suggested that power washing breezeways should be added to the regular maintenance activities. 7

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