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HOC asks for $1.3M temporary aid as scattered-site portfolio struggles with unpaid rents
Summary
HOC told the committee COVID-era relief expirations and increased nonpaying tenants have left scattered-site properties running at a loss; HOC requested $1.3 million in temporary general cost assistance and proposed tranches to soften the impact.
HOC officials asked the Planning, Housing & Parks Committee for $1.3 million in temporary general cost assistance to offset losses at scattered-site properties hit by nonpayment and lengthy lease-enforcement processes.
Council staff described the request as temporary help tied to scattered-site losses as HOC recovers from the expiration of COVID-era relief funds, and noted HOC proposed tranches (500,000; 500,000; 300,000) to smooth the fiscal impact. "An increase in nonpaying tenants and lengthy lease enforcement processes have adversely affected HSC's ability to recoup funding from this portfolio," staff said in the packet summary.
HOC Finance lead Tim Goetzinger explained the scattered-site portfolios (including two larger VPC portfolios) went from net positive to net costs, reporting operating losses of about $1.0 million in FY24 and $2.4 million in FY25. "In FY '24, it cost us $1,000,000 to operate. In FY '25, it cost us $2,400,000 to operate," Goetzinger said, explaining why HOC had proposed phasing assistance.
Committee members expressed concern about prioritization and fiscal realism; members suggested that one tranche might be achievable while full $1.3 million support would be unlikely this cycle. HOC said it expects lease enforcement and unit turnarounds to take 6 to 12 months to show material recovery.
