A. J. Johnson Partners with Mid-Atlantic AHMA for Affordable Housing Training - July 2024

person A.J. Johnson today 06/10/2024

In July 2024, A. J. Johnson, a renowned expert in the field, will join forces with the esteemed Mid-Atlantic Affordable Housing Management Association to conduct training for real estate professionals. This session, tailored for those in the affordable multifamily housing field, will be delivered through a live webinar. The following session is scheduled:

July 16:  Budgeting 101 for Multifamily Housing

This comprehensive three-hour course provides a foundational understanding of budgeting and financial management specific to affordable multifamily housing. It will equip property managers with the essential skills to evaluate and manage operating funds, maximize net operating income (NOI), and ensure accurate financial reporting.

Key Discussion Areas:

  1. Introduction to Budgeting & Financial Management:
    1. Importance of tracking income and expenses
    1. Overview of cash receipts, expenditures, reserves, and security deposits
  2. Evaluation of Operating Funds:
    1. Understanding profitability and return on investment (ROI) for rental real estate
  3. The Cash Flow Chart:
    1. Definition and significance of Net Operating Income (NOI)
    1. Owner’s assessment of pre-tax and after-tax cash flow
  4. Gross Potential Rental Income:
    1. Calculation and importance of maximum rent income
  5. Vacancy & Collection Loss:
    1. Measures of vacancy (physical and economic)
    1. Impact of vacancies and collection losses on gross potential rental income
  6. Miscellaneous Income:
    1. Sources of additional income beyond scheduled rent
  7. Effective Gross Income:
    1. Calculations involving vacancy and collection loss and miscellaneous income
  8. Operating Expenses:
    1. Categories of operating expenses, including payroll, maintenance, utilities, and more
  9. Net Operating Income (NOI):
    1. Importance of maximizing NOI as a measure of management success
  10. Debt Service:
    1. Explanation of debt service and its impact on financial management
  11. Cash Flow:
    1. Calculation of cash flow and its importance in financial management
  12. Income and Expense Categories:
    1. Detailed discussion on various income and expense categories
  13. Budgeting:
    1. Types of budgets: operating, capital, and long-range
    1. Annual budgeting process and importance of quarterly updates
  14. Operating Budget:
    1. Monthly planning and detailed allocation of income and expenses
  15. Annual Budget:
    1. Historical vs. zero-based budgeting
    1. Review and approval process with property owners
  16. Capital and Long-Range Budget:
    1. Planning for future capital expenditures and long-term financial forecasting
  17. Summary:
    1. Key takeaways on maximizing NOI, effective budgeting, and financial management in multifamily housing

Learning Objectives:

  • Develop Financial Management Skills: Understand the basics of budgeting, financial tracking, and reporting.
  • Maximize Property Income: Learn techniques to increase NOI and manage operating expenses efficiently.
  • Effective Budget Planning: Gain knowledge on creating accurate operating, capital, and long-range budgets.
  • Improve Financial Decision-Making: Enhance ability to make informed financial decisions to benefit property operations.

Target Audience:

  • Property Managers
  • Financial Officers
  • Asset Managers
  • Compliance Officers in the multifamily housing sector


Budgeting 101 for Multifamily Housing provides essential training for managing the financial aspects of affordable housing properties. By the end of the course, participants will be equipped with the knowledge and tools necessary to ensure financial health and sustainability for their properties.

This session is part of a year-long collaboration between A. J. Johnson and MidAtlantic AHMA designed to provide affordable housing professionals with the knowledge needed to effectively manage the complex requirements of the various agencies overseeing these programs.

Persons interested in this training may register by visiting either www.ajjcs.net or https://www.mid-atlanticahma.org.

Latest Articles

A.J. Johnson Consulting Services, Inc. Welcomes Back Lori Neff

A.J. Johnson Consulting Services, Inc., a leader in affordable housing compliance consulting, is thrilled to announce the return of Lori Neff to our team. Lori rejoined the company on July 16, 2024, bringing diverse experience and expertise. A Familiar Face with Fresh Perspectives Lori worked as a Compliance Analyst with A.J. Johnson Consulting from 2003 to 2008 before establishing her own consulting firm. In the intervening years, she has expanded her skill set by working as a financial planner, loan officer, and insurance agent. This multifaceted background enhances our ability to provide comprehensive consulting services to our clients in the affordable housing industry. Expanding Our Expertise Lori's return significantly broadens our company's capabilities. Her expertise spans: Banking and financial services Property management Loan administration Insurance sales Client relationship management Additionally, Lori holds licenses as a Life & Health Insurance Officer and a Mortgage Loan Officer. She maintains affiliations with various professional associations in the mortgage and home-building industries, keeping her at the forefront of industry developments. A Specialized Role In her new position, Lori will work within our company's "Special Projects" section, focusing on extensive or unusual property reviews. Her responsibilities will include: Conducting tax credit, HOME, Section 8, and Section 515 compliance reviews Performing asset management reviews for various investor clients Handling complex cases that require in-depth analysis and expertise A.J. Johnson, founder of A.J. Johnson Consulting Services, Inc., commented on Lori's return: "We are more than pleased to welcome Lori back to the fold. Her diverse experience and deep understanding of our industry will ensure that our clients continue to receive the most comprehensive consulting services in affordable housing." Lori's return to A.J. Johnson Consulting Services, Inc. underscores our commitment to providing top-tier expertise and service to our clients. As the affordable housing landscape continues to evolve, we are confident that Lori's contributions will help our clients easily navigate complex compliance and management challenges. We invite our clients and industry partners to join us in welcoming Lori Neff back to the A.J. Johnson Consulting Services team.

Understanding HUD Special Claims

Understanding HUD Special Claims: A Comprehensive Guide for Property Owners and Managers Financial losses due to vacancy, unpaid rent, and tenant damages in subsidized housing can significantly impact property owners. The U.S. Department of Housing and Urban Development (HUD) recognizes this challenge and offers a solution through its special claims process. This article delves into the intricacies of HUD special claims, providing essential information for property owners and managers to navigate this reimbursement system effectively. What are HUD Special Claims? HUD special claims are a reimbursement mechanism designed to compensate owners of eligible HUD projects for financial losses resulting from vacancy loss, unpaid rent, and tenant damages. While filing these claims is not mandatory, it is highly recommended. Management agents who neglect to file special claim requests fail to collect funds the property owner is entitled to and may also violate the terms of their Management Agreement. Eligibility Criteria The special claims process is available for several project types, including: Section 8 Section 202/8 Section 202 PAC Section 202 PRAC Section 811 PRAC To be eligible for a special claim related to unpaid rent, other charges, or damages, the former tenant must have been: Receiving rental assistance at the time of move-out or Had rental assistance terminated before moving out due to failure to comply with program requirements, such as: Not providing necessary information about family composition and income Failing to provide social security numbers Refusing to sign consent forms, verification forms, or HUD-50059 Not establishing citizenship or eligible immigration status Failing to move to an appropriately sized unit within 30 days of notification Special Requirements for Unpaid Rent and Other Charges To successfully claim for unpaid rent and other charges, owners/agents must meet several criteria: Proper Security Deposit Collection: The tenant must have provided the appropriate security deposit. Failure to do so may result in a reduced claim amount. Debt Collection Efforts: Owners/agents must certify they have billed tenants for unpaid rent and taken reasonable steps to collect the debt, including: Sending a certified letter detailing unpaid charges, demanding payment, and involving a collection agency if the tenant fails to pay. Compliance with State and Local Laws: The claim must adhere to state and local laws regarding security deposit deductions. Allowable Charges: "Other charges" may include fees for unreturned keys, late payments (if permitted by lease and local law), and previously billed damages that remain unpaid at move-out. Non-Allowable Charges: Legal fees, collection agency fees, unpaid utility bills, and costs for photographing unit damage are not eligible for claims. Special Requirements for Tenant Damages For damage claims, additional requirements apply: Certification of Tenant Negligence: Owners/agents must certify that the claimed damages resulted from tenant negligence or abuse. Extraordinary Repairs Only: Claims should be limited to repairs and replacements beyond normal wear and tear. No Duplication of Reimbursement: Owners cannot claim for damages already reimbursed through insurance, Reserve for Replacements, or Residual Receipts accounts. Proper Tenant Notification: Failure to provide tenants with an itemized list of damages will result in claim denial. Supporting Documentation To substantiate claims, owners/agents must provide comprehensive documentation, including: For Unpaid Rent: Signed HUD-50059 form showing required security deposit Proof of security deposit collection Copy of certified letter sent to tenant Documentation of collection agency efforts HUD approval for other charges (if applicable) For Damages: Move-in and move-out inspection reports Security deposit disposition notice Repair cost breakdown (invoices, receipts, or owner/agent certification) Claim Limitations and Timeline The total claim amount for unpaid rent and damages is capped at the monthly contract rent when the tenant vacated or had assistance terminated, minus the security deposit plus any interest earned. This limitation ensures fair compensation while preventing excessive claims. Importantly, HUD or the Contract Administrator must receive claim forms within 180 calendar days of the unit becoming available for occupancy. This timeline emphasizes the need for prompt and efficient claim processing. Conclusion The HUD special claims process offers property owners and managers a valuable opportunity to recover financial losses in subsidized housing scenarios. By understanding the eligibility criteria, documentation requirements, and claim limitations, housing professionals can effectively utilize this system to maintain financial stability and operational efficiency. While the process may seem complex, diligent record-keeping and adherence to HUD guidelines can streamline the claim submission process. As the housing landscape evolves, staying informed about such reimbursement mechanisms becomes increasingly crucial for successful property management in the affordable housing sector. For more detailed information and updates, property owners and managers are encouraged to consult the HUD Special Claims Processing Guide (HSG-06-01) and stay abreast of any policy changes or updates from HUD.

A. J. Johnson Offers Live Webinar on Tenant-on-Tenant Harassment

A. J. Johnson will conduct a webinar on June 20, 2024, on Navigating the Challenges Dealing with Tenant-on-Tenant Harassment in Multifamily Housing. The Webinar will be held from 1:00 PM to 2:00 PM Eastern time. Attending a webinar on Tenant-on-Tenant Harassment is crucial for multifamily housing professionals for several reasons: Understanding Legal Responsibilities: Gain insight into federal, state, and local laws regarding tenant harassment and the responsibilities of housing providers in preventing and addressing such issues. Enhancing Tenant Safety: Learn strategies to create a safe and respectful living environment, thereby reducing the risk of harassment and ensuring the well-being of all tenants. Improving Conflict Resolution Skills: Develop skills to effectively mediate and resolve conflicts between tenants, which can prevent harassment situations from escalating. Protecting Property Reputation: Learn the impact of tenant harassment on the property's reputation and how proactive management can enhance community perception and tenant satisfaction. Minimizing Legal Risks: Learn about the potential legal ramifications of tenant-on-tenant harassment and how to mitigate these risks through proper documentation, response protocols, and preventative measures. Compliance and Best Practices: Stay updated on best practices and compliance requirements to ensure the property meets all legal standards and fosters a harassment-free environment. Enhancing Staff Training: Acquire knowledge that can be used to train staff members to recognize, prevent, and respond effectively to tenant harassment. Creating a Positive Community: Foster a positive, inclusive, and respectful community culture that can improve tenant retention and satisfaction. By attending this webinar, multifamily housing professionals can equip themselves with the necessary tools and knowledge to handle tenant-on-tenant harassment effectively, ensuring a harmonious living environment and safeguarding their property s reputation and legal standing. Those interested in participating in the Webinar may register on the A. J. Johnson Consulting Services website (www.ajjcs.net) under "Training Schedule.

Want news delivered to your inbox?

Subscribe to our news articles to stay up to date.

We care about the protection of your data. Read our Privacy Policy.