Banks notes PAC on-time resolution dropped and asks about pre-development responsibility

When it comes to the percentage of work orders resolved on time at the PAC developments, the average, I believe, is 74.5% of the time.

And this was in the time of 2025 compared to 87.5% of the time in 2024 and 90.75% in this.

time in 2023.

Are PAC property managers struggling to address work orders as more and more developments are converted?

Thank you for that question.

I think there's a couple layers to that, if I can just give some context.

I think what happens

or has happened over the past couple of years is the portfolio of the number of units that have converted has grown.

Right.

So now we're up to over 32,000 apartments.

All of those apartments, when they convert into the Section 8 portfolio, have a significant amount of capital needs that are needed in them.

And there is an immediate influx of work and work orders that is handed to the property manager while they're in the middle of completing the capital repairs.

So those two things are happening essentially at the same time.

They must resolve the work orders even while they're...

You know, trying to work through an entire replacement of the boiler system.

So sometimes the repair and resolution time is not met, certainly.

And you can see online there are percentages where the on-time resolution is not 100%.

And that's because they are working through those larger capital investments at the same time.

When a development is converted to Rad Pack,

Once the conversion takes place, and this is not after all the leases are signed or you meet your threshold to the amount of leases that are needed to be signed,

who's responsible for the day-to-day operations or for the existing repair issues?

During that process leading up to when the rehab starts?

So when we select a partner team, we call that pre-development, and that's a process that we're doing with the resident leaders at each of our sites.

So they are working with us to interview and select property managers.

So during pre-development, who's responsible for maintaining the property?

NYCHA is responsible up until the day that we convert, and then immediately after the next day is when the PACT partner property manager...

So up until the day you convert, meaning...

The first community engagement meeting?

No, there's a date.

Or the actual signing of the leases?

There's a conversion date for each of the properties.

So as an example...

So how far is the conversion date from the community engagement meetings?

It can vary based on the development and the amount of engagement work that happens.

But we call that period the pre-development period, the engagement period.

That can last 12 to 18 months or it can last up to two years.

So during that 12 to 18 months or two years, NITRA is responsible for maintaining the property.

Correct.

Okay.