New York, New York
The Community League of the Heights (CLOTH) is a multi-service, community development organization dedicated to supporting and empowering the economically disadvantaged residents of Washington Heights. CLOTH’s holistic approach to community development provides a comprehensive framework of social and neighborhood services to stabilize and strengthen family life. Throughout its long history, CLOTH has worked to find solutions to the problems of poverty and disinvestment that confront the neighborhood, with a particular focus on affordable housing, after-school and educational programming, nutrition and community health.
CLOTH engaged Alembic Community Development to complete an assessment of its property management operations and the financial condition of its housing portfolio, totaling approximately 300 units in 30 buildings. Alembic assessed the financial condition of each project, as well as the effect of various potential adjustments in expenses, rent collection and mortgage structures. Alembic shared its findings and recommendations with CLOTH’s Executive Director, its Board of Directors and its primary Low Income Housing Tax Credit syndicator. These recommendations included the benefits and disadvantages of different options for the portfolio as a whole, and, for a subset of the organization’s properties, specific suggestions for future management, ownership and control.
CLOTH determined that it should outsource property management responsibilities for a period to be negotiated with its investors, lenders and any prospective property management firm, but for a period at least long enough for CLOTH to stabilize its portfolio and to address and complete a number of pressing development and program initiatives.
CLOTH decided to focus its property management work in the position of an asset manager responsible for overseeing the physical condition of the buildings and the activities of a third-party property management firm.