FRANCISCO COLON GORDIANY PROJECT

Finding No. 2021-001 1. CONDITION ? Vacancy losses is extremely high when compared to last year vacancy losses. Vacancy losses increased in fiscal year 2021 by $62,424 from $31,130 to $93,554, representing a 11.39% of gross potential income. 2. CRITERIA ? Management Agent is not in compliance with the Affirmative Fair Housing Marketing Plan as stated in HUD Handbook 4350.3 Rev. 1, Change 4, Chapter 4, Paragraph 4-12(B)(3) in which indicates that the results of marketing efforts and marketing techniques should be adjusted when necessary to avoid recurring vacancy losses. 3. EFFECT ? Negative impact in cash flows to the Project. 4. CAUSE ? Project advertising and marketing plan has not been effective to attract new prospective tenants. 5. QUESTIONED COST ? Loss of tenant?s revenues in the amount of $93,554. 6. RECOMMENDATION ? Management Agent of the Project must review its Marketing Plan in order to be more successful in attractive new prospective tenants.

During the course of this year, and in addition to marketing efforts conducted regularly, we have increased the use of newspaper advertising, established an incentive program for resident referrals from current residents and an incentive for new residents moving into the project. We have also increased the use of social media as a means for marketing. Fundacion is currently in the process of contracting with a company specialized in conducting marketing studies and preparing marketing plans to address vacancy problems in other properties. As part of the process, we will develop metrics that will help to evaluate the efficacy of the marketing efforts conducted. The methodology learned during the process, the strategies developed as part of this marketing plan and the metrics developed to evaluate marketing efforts will be implemented companywide to increase the possibility of success in attracting prospective tenants.

GSA_MIGRATION

GSA_MIGRATION