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HRA staff flags rising delinquencies and receivables at properties managed by D. W. Jones
Summary
HRA staff presented a financial snapshot of four HRA-managed properties under contract with D. W. Jones, noting occupancy issues, large accounts receivable balances, $10,000-plus damage claim at Regency, and limited collection options under the current management contract.
Hubbard County HRA staff reviewed a consolidated financial snapshot of four properties managed by contractor D. W. Jones and detailed growing accounts receivable and occupancy issues at Meadowview and Meadows Edge.
Staff said Meadows Edge had about 85% occupancy and noted several tenants at Meadowview with prolonged delinquencies, including a large receivable at Regency related to tenant damages exceeding $10,000. Staff reported total receivable aggregates described in the meeting as roughly $32,000 and $16,000 at two properties, and said much of the larger amounts are unlikely to be collectible from single former tenants.
Staff summarized collection practices under the management contract and the HRA’s limited options. The presenter said the HRA cannot use state revenue recapture through a contract manager and that, without its own staff, the HRA lacks that mechanism. “They don't allow a contractual relationship, so there's no way for you to use that,” staff said, describing revenue recapture as available only to units that have their own staff.
Board members raised concerns about write-offs, evictions and the HRA’s $99 promotional deposit some tenants had paid when moving in. Staff warned the low promotional deposit left the HRA with little security for unpaid rent or damages in some cases. The board requested that proposed write-offs be brought to the board for review before being recorded so members can confirm due diligence has been exhausted.
Staff described typical collection pathways — collections agencies and reporting to credit bureaus — and said small-claims court is rarely used because it requires staff time to pursue judgments. Board members pressed for clarity on when evictions are initiated; staff said eviction proceedings can start after the second month of nonpayment, and several accounts were over 60 or 90 days delinquent.
A board member asked staff to meet with Laurie (HRA staff) and return with more details on how the contractor is addressing delinquencies. No formal vote was taken on the issue during the meeting.
