COUNCIL MEADOWS FUND BURNT HILLS - BALLSTON LAKE HOUSING DEVELOPMENT FUND CO., INC.

Management?s Response - There are and were substantial capital expenses the Organization would normally voucher from reserve funds during 2020 which had to be paid out of general operating funds. This has put pressure on the project?s cash flow to this day, as management has not been able to access reserve funds due to the banks that were contacted being unwilling to comply with DACA requirements. Lack of ability to obtain reimbursement reserve funds for capital items such as $6,485 in flooring replacements, $1,071 for appliances and $1,277 for hot water tank replacements forced over an $8,833 shortfall in normal operating cash flow. These concerns, in addition to tenant-created water and alarm emergencies, have expended significant maintenance dollars to correct unplanned and certainly unnecessary critical issues. These shortfalls have placed the project under tremendous cash flow concerns that would not have been an issue if the project could have accessed reserve funds as needed. This was one reason the project had to rely on Board funds to pay for $1,399 in an emergency response to replace one of the project?s snowblowers. In addition, management has also held back paying management fees for over six months for 2020 (that are still due) to give the Organization a financial cushion in case an emergency were to occur and reserve funds were still not readily available to the project, or an infusion of funds were needed to pay normal operating transactions. Accrued management fees owed tally $7,898 in base fees plus $2,475 in site management fees from July through December 2020, for a total due of $10,373 still (currently) in accounts payable. These items contributed to the project?s inability to make Until funding is restored from reserves through the Depository Authorization with Key Bank, which we do not have any guarantee that Key Bank will honor that Authorization when it is put into place, the Organization will not have sufficient cash flow to pay current obligations plus 2020 accruals at the present time. In the meantime, cash flow is still tenuous until normal inflows resume. One other major handicap the Organization is facing is the extreme delays in obtaining potential applicants from the Housing Assistance program. Filling one vacancy can and has often taken up to five or six months to obtain qualified applicants from this program, which is a tremendous time delay, increasing the Organization?s vacancy rate that management has little power to affect. Losing over $3,000 in potential rents waiting for one qualified applicant for one apartment are lost forever; multiplying this by any unknown vacancy factors significantly adds up debilitating cash flow.