Early Warning Systems for Affordable Housing Properties
This report provides guidelines for devising an early-warning system to help housing development organizations become more risk-aware, and funders become more open to providing early assistance. It is designed to help a developer’s board of directors and senior management recognize and manage the risks of development and long-term property ownership. A small group of strong organizations has used early-warning systems in their business practices for some time, and their experiences provide important insight into systems that promote risk-awareness.
The paper includes sample tools (e.g., criteria, guidelines and dashboard indicators) to help boards and senior management assess risks at various stages in a project’s life. These tools are meant to aid in deciding whether a project should move forward, when it should be deferred and when to approach lenders and other stakeholders for assistance.
SOURCE: Enterprise Community Partners