CRHA reports higher vacancies, $338,000 delinquent balance and plan for write-offs

CRHA’s property management report to the board showed a notable number of vacant units and a delinquent account balance that staff said includes accounts unlikely to be recovered. A staff presentation listed 30 vacant units across the portfolio, with 12 at Greenleaf/Dogwood (including one building scheduled for a full gut renovation and conversion to bedroom-by-bedroom leasing), 6 at Mickey/Madison/Riverside/scatter sites, 4 at West Haven, 3 at Crescent Hall and 5 at South First Street. Collections and delinquent balances Property-management staff reported about $15,000 in collections during a recent month and a delinquent balance of roughly $338,000 when including accounts for residents who have moved out. Staff said they will bring a recommendation in coming months to write off amounts for moved-out families that staff judges unlikely to be collected. The agency has enrolled in a tax-intercept program for debts with a judgment; staff said those judgments will be submitted for collection where applicable. Parallel Track renovation and vacancies Staff described a “parallel track” renovation program for complete unit upgrades (bathroom, kitchen, HVAC, flooring) and said three vacant units are being held for that work. Greenleaf/Dogwood contains units that were vacant on acquisition and others that require substantial work; staff said they plan to lease renovated units as they are completed. HUD performance and TARs In later discussion staff and commissioners linked the delinquent balance to the agency’s tenant account receivable ratio (TAR). Property-management and resident-services staff said the TAR rate is approximately 15%, far above the HUD target of about 2.5–3%. Staff said the high TAR rate prevents the authority from achieving HUD “high performer” status and the additional capital-fund bonus that high performers receive. Why it matters: Vacancies and delinquencies affect operating cash flow and capital funding eligibility. Staff asked the board to expect a future write-off recommendation and said the agency is pursuing multiple collection paths. Ending Staff said they will proceed with collection efforts where judgments exist, enroll judgments in the tax-intercept program, and return to the board with a write-off recommendation for moved-out accounts.