Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Beloit Road Audit topic
No spam. Unsubscribe anytime.
Audit of Beloit Road Senior Apartments shows clean report but flags operating pressures
Summary
Beloit Road Senior Apartments LLC received a clean audit from Baker Tilly, but CDA staff warned of underlying operating and capital pressures — insurance increases, deferred repairs and limited reserves — and approved the audit for the record.
The West Allis Community Development Authority received and placed on file an audit report for Beloit Road Senior Apartments LLC from Baker Tilly, U.S. LLP, and staff warned members that the property faces operating and capital pressures despite a clean audit opinion.
Patrick, staff member for the authority, displayed audit figures and said the apparent loss on paper reflects accounting for payments the authority expects to waive in exchange for regaining the property, not unreported cash outflows. He described the Baker Tilly report as a “clean” audit while adding that there are “sharks below the water” in the property’s finances.
Staff outlined several specific concerns: rising operating costs, notably a substantial insurance increase; deferred maintenance needs including two roofs, damaged ceilings from mold and moisture, failing exterior railings, and sewer lateral work that identified clay pipe; and expenses tied to snow removal for exterior stairs used by senior residents. Patrick said the authority has project-based vouchers at the property and that unit turnover and vacancy costs are weighing on net rental income.
Patrick said the authority recently enacted an increase in the payment standard used to set rents at the property; he referenced figures that the payment standard moved from “$8.71” to “$9.50” and described that as an increase, but did not specify the units or basis for those numbers in the meeting record. He also told members the authority maintains an operating reserve “of 300 and some thousand” dollars to draw on, and that the tax-credit investor and staff are exploring ways to address costs.
Other details disclosed in the discussion: the property has 104 one-bedroom units, staff appealed the property’s assessment which reduced value by about $17,000, and tax-credit restrictions require the property to remain affordable for another 15 years. Patrick said the authority may consider long-term options that could include nonprofit ownership to maintain affordability.
A motion to approve and file the audit report was made and seconded; the authority approved the audit by voice vote and placed the report on file.
The authority did not name the mover or seconder in the public record. The motion recorded: approve and place on file the audit report for Beloit Road Senior Apartments LLC, submitted by Baker Tilly, U.S. LLP.
