Chair Sanchez on smoothing rent increases and HPD's asset management responsibility
Sanchez argues HPD should move toward gradual increases over time and asks how the agency understands its asset management role post-financing. Phillips describes monitoring during and after construction.
I still think that something is being missed here.
If you are having regular conversations, there should be gradual increases over time.
I think that's a direction the agency should try to move in to smooth things out for tenants and shareholders in these properties.
So stepping back at a programmatic level, how does HPD understand its asset management responsibility after the initial development and preservation of a deal, of the financing of a deal closes?
Is the agency's model designed to prevent financial and physical distress or primarily to intervene once a project has become high risk?
So after a project closes on financing with HPD, during construction, we monitor construction along with the private lender, which is typically HDC.
So during construction, we're working monthly to ensure that requisitions are processed appropriately and that capital needs are being addressed.
And then after the construction period ends, our housing supervision team continues to work with the board or the owner of the housing company.
To monitor income, expenses, and then future capital needs.