Building a permanent asset management infrastructure should be a top priority for our industry.
Oregonians invest in affordable housing for a simple reason: We want strong communities where everyone has a stable place to call home. But it’s not enough to invest capital in these assets and then walk away. We need to care for and steward our properties over decades of operation. Tens of thousands of families and individuals depend on it.
Asset managers are the people who oversee this stewardship work. They are experts at keeping affordable housing properties physically and financially healthy in dynamic environments. They make sure properties are managed to meet resident needs, and they plan ahead to preserve aging portfolios. But as a community and an industry, we haven’t systematically invested in our asset management infrastructure.
“Skimping on asset management is sustainable, until it’s not—as shown during the past six years of harrowing operating conditions.”
Skimping on asset management is sustainable, until it’s not—as shown during the past six years of harrowing operating conditions. At times like these, asset managers can’t lower high insurance rates or fill labor shortages. But they can catch operational problems early, before properties become destabilized. They can analyze a property’s financial performance with an eye on the future, work with property management to solve operational issues, and serve as liaisons between property management and resident services to help households weather the storm.
Building a permanent asset management infrastructure should be a top priority for housing leaders—now. As an industry, we have a track record of developing the infrastructure that’s needed to respond to challenges. Not too long ago, affordable housing was being lost without any coordinated intervention to preserve it. But if you search for affordable housing preservation strategies today, you will find numerous national organizations, white papers, tools, and trainings directed at recapitalizing physically and financially tired affordable housing. What you will not (yet) find is infrastructure and tools for preserving affordable housing by maintaining excellence in operations.
“Efforts to do something about this gap are gaining momentum. ...It will be essential to pool our resources and capabilities.”
Efforts to do something about this gap are gaining momentum, with awareness of the issue at an all-time high. Minnesota, Illinois, and Washington, D.C. have coalitions of owners that are sounding the alarm and government agencies that are starting to fund interventions. I see strong leadership coming from the Pacific Northwest. In Oregon, the state legislature recently charged HDC with leading Resources for Asset Management and Property Support (RAMPS), a new initiative that will support property and asset management staffing and training, systems improvement, and capacity building to improve property health and resident well-being in Oregon’s affordable housing. Oregon Housing & Community Services just completed its latest Project Stabilization Investments funding round. The City of Seattle has invested significantly in housing stabilization and is preparing to fund asset management support for portfolio analysis and planning. The City of Portland and Enterprise Communities have funded similar work locally, as well.
To build oversight capacity with limited funds, it will be essential to pool our resources and capabilities. We need our national partners, as well as regional housing players, to be part of this work in Oregon and Washington. HDC is stepping up, contributing the leadership and talents of our asset management consulting and training team, a unique resource we’ve been building with local support for two decades. Who’s ready to join us? With collective effort and creativity, we can build the asset management infrastructure we need—and protect the health of our beloved affordable housing communities and the residents who call them home.