Taking over a large affordable housing portfolio is challenging under normal circumstances. Taking over one with more than 400 overdue recertifications, terminated households and multiple layered compliance programs creates an entirely different level of operational and compliance risk.

That was the situation facing one management company after assuming responsibility for a large portfolio of affordable housing properties across four states.

The properties were layered with Section 8, LIHTC and HOME, meaning the recovery effort couldn't rely on a one-size-fits-all approach.

Approximately 25% of the LIHTC recertifications could be completed using applicable self-certification procedures, while the Section 8 side required full annual recertifications. Some households had already reached terminated status and needed immediate attention.

Housing Consultants of America was brought in to help the new management company regain control of the portfolio.

The incoming management company inherited:

• 400+ overdue recertifications
• Properties located across four states
• Layered Section 8 + LIHTC + HOME requirements
• Households that had reached terminated status
• A mixture of full recertifications and applicable LIHTC self-certifications
• Missing resident documentation
• Significant certification processing work
• An immediate need to stabilize compliance across multiple properties

This wasn't simply a matter of clearing paperwork.

Each household had to be evaluated based on the applicable program requirements, outstanding documentation had to be obtained, calculations completed, certifications processed and property software brought up to date.

The management company needed an experienced team that could go directly to the properties and start working.

Housing Consultants of America developed a multi-site staffing approach and deployed approximately two to three consultants to each property for 8-12 weeks per site.

Teams traveled across the client's portfolio in four different states, allowing HCA to work directly with residents, onsite employees and outstanding certification files.

Instead of placing the entire recovery burden on the management company's newly inherited onsite teams, HCA provided dedicated personnel whose primary responsibility was getting the recertification backlog under control.

HCA consultants met with residents to obtain updated household information and begin completing outstanding recertifications.

The team identified missing information and worked to gather the documentation necessary to move incomplete certifications forward.

For applicable full certifications, HCA consultants reviewed household information and completed necessary income, asset and deduction calculations.

Because the properties included Section 8, LIHTC and HOME, consultants had to account for the requirements applicable to each household and property.

Approximately 25% of the LIHTC recertifications qualified for applicable self-certification procedures, helping streamline that portion of the recovery effort.

The Section 8 component required full recertifications, creating a substantially different processing workload.

HCA consultants entered and updated household information within the client's property management software and generated the final certification documentation.

The objective was to move each file as far toward completion as possible before the HCA team moved to the next property.

One of the most urgent issues involved households that had reached terminated status.

These files received immediate attention as part of the portfolio recovery.

HCA consultants worked through the outstanding recertification requirements, resident interviews, documentation and certification processing necessary to address these households.

This was an especially important outcome for both the management company and the affected residents.

The scale of the inherited backlog meant recovery would not happen overnight.

But within the first two months, the portfolio had changed dramatically.

Late Recertifications at Takeover

Included in the Recovery Effort

Deployed Per Site

Approximately Spent at Each Site

Caught Up Within 60 Days

In just 60 days, HCA helped the management company address approximately 86% of the inherited recertification backlog.

HCA continued working through the remaining outstanding certifications and more complicated files.

By approximately 90 days, the portfolio had reached:

And the terminated households identified as part of the inherited backlog had been reinstated.

The new management company went from inheriting more than 400 overdue certifications across four states to having nearly the entire portfolio's inherited backlog addressed within approximately three months.

When a management company acquires or assumes responsibility for an affordable housing portfolio, it doesn't only inherit the properties.

It can also inherit:

Late recertifications.

Incomplete resident files.

Missing documentation.

Terminated households.

Compliance deficiencies.

Software records requiring updates.

And years of operational problems the new company didn't create.

Layered properties make the challenge even greater because Section 8, LIHTC and HOME requirements must be evaluated appropriately.

HCA's role was to give the incoming management company the additional experienced capacity necessary to address those inherited problems while its internal teams focused on taking control of day-to-day property operations.

400+ late recertifications inherited

Four-state affordable housing portfolio

Section 8 + LIHTC + HOME layered properties

2–3 HCA consultants deployed per site

Approximately 8-12 weeks of onsite support per property

86% caught up within 60 days

98% caught up within 90 days

All identified terminated households reinstated

A management transition shouldn't require your existing team to spend the next year cleaning up someone else's backlog.

Housing Consultants of America provides nationwide temporary affordable housing staffing, recertification backlog recovery, resident file processing and HUD/LIHTC/HOME compliance support for management companies, owners and affordable housing portfolios.

Whether the problem involves 40 files or 400+, one property or an entire multi-state portfolio, HCA can deploy experienced professionals directly to the properties that need additional support.

Contact Housing Consultants of America to discuss portfolio-wide recertification recovery and temporary compliance staffing.