Al-Khafaji covers rent restructuring and monthly maintenance costs
Al-Khafaji explains that current TIL rents are insufficient, the ANCP rent restructuring ensures no tenant pays more than 30% of income, and details building expense categories and required 2% annual maintenance increases.
The till rents that residents are currently paying do not produce enough income to maintain the buildings.
The monthly cost through ANCP will change through a rent restructuring process, ensuring that no tenant pays more than 30% of their income at that point of conversion.
The expenses required to maintain a building include building insurance, heat and hot water, electric and public areas, maintenance staff salaries, sewer, accountant and legal, extermination, minor repairs, just to name a few.
The shareholders will collectively decide how much they would like to increase the maintenance biannually, but there is a required 2% increase per year per the ASCP term sheet.
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