11-12-1997 Council Agenda - Laserfiche WebLink

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GOLIDMARK PROPERTY MANAGEMENT INC.AMO° MANAGEMENT OF MONTREAL COURTS City of Little Canada Staff has recommended that we include brief information concerning the management plan for Montreal Courts Apartments by Goldmark Property Management. With limited access to the property it is somewhat difficult to set forth a management plan with detail. The property was managed by Gaughn Company until about January, 1997, when Cedar Management began managing Montreal for the current owner. While the occupancy of Montreal appears to be stable at about 95% (although we have not confirmed this), we anticipate that the amounts expended for repairs, maintenance and capital improvements has decreased in the past year due to the impending sale. Therefore deferred maintenance, which was already evident, is most likely increasing. Current Property Performance. With an overall strong multifamily housing market in Little Canada, we would expect Montreal Courts to be well occupied. As of October, 1997, for all Little Canada properties, the vacancy for studios was 1.9 %, for one bedrooms was 2.7 %, for two bedrooms was 1.9% and for three bedrooms was 0% for an average vacancy of 2.1%. To the best of our knowledge, Cedar Management continues to aggressively screen applicants. When we conducted an audit of the resident profile, almost 100% of the residents met the income and rent limitations that will be maintained by HADC. There were approximately 100 residents receiving assistance from the HRA. The several residents who exceeded the income restrictions were temporary residents who were building homes. In other words, there will be little or no resident displacement. It is our understanding that approximately 75% of the residents must be at 80% of the median income of $57,800, adjusted for family size and 20% must be at 50% of the median income. The property currently meets this test. Future Performance Goals. Given the relative strength of the market Goldmark would focus on two main goals for Montreal Courts. 1. Overseeing and gaining maximum impact from the significant renovation of the Property. Minneapolis Office • 5001 West 80th Street • S Page 17 55437 • (612) 832 -0737 • Fax (612) 832 -5412