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A. J. Johnson Partners with Mid-Atlantic AHMA for Affordable Housing Training - July 2024

person A.J. Johnson today 06/10/2024

In July 2024, A. J. Johnson, a renowned expert in the field, will join forces with the esteemed Mid-Atlantic Affordable Housing Management Association to conduct training for real estate professionals. This session, tailored for those in the affordable multifamily housing field, will be delivered through a live webinar. The following session is scheduled:

July 16:  Budgeting 101 for Multifamily Housing

This comprehensive three-hour course provides a foundational understanding of budgeting and financial management specific to affordable multifamily housing. It will equip property managers with the essential skills to evaluate and manage operating funds, maximize net operating income (NOI), and ensure accurate financial reporting.

Key Discussion Areas:

  1. Introduction to Budgeting & Financial Management:
    1. Importance of tracking income and expenses
    1. Overview of cash receipts, expenditures, reserves, and security deposits
  2. Evaluation of Operating Funds:
    1. Understanding profitability and return on investment (ROI) for rental real estate
  3. The Cash Flow Chart:
    1. Definition and significance of Net Operating Income (NOI)
    1. Owner’s assessment of pre-tax and after-tax cash flow
  4. Gross Potential Rental Income:
    1. Calculation and importance of maximum rent income
  5. Vacancy & Collection Loss:
    1. Measures of vacancy (physical and economic)
    1. Impact of vacancies and collection losses on gross potential rental income
  6. Miscellaneous Income:
    1. Sources of additional income beyond scheduled rent
  7. Effective Gross Income:
    1. Calculations involving vacancy and collection loss and miscellaneous income
  8. Operating Expenses:
    1. Categories of operating expenses, including payroll, maintenance, utilities, and more
  9. Net Operating Income (NOI):
    1. Importance of maximizing NOI as a measure of management success
  10. Debt Service:
    1. Explanation of debt service and its impact on financial management
  11. Cash Flow:
    1. Calculation of cash flow and its importance in financial management
  12. Income and Expense Categories:
    1. Detailed discussion on various income and expense categories
  13. Budgeting:
    1. Types of budgets: operating, capital, and long-range
    1. Annual budgeting process and importance of quarterly updates
  14. Operating Budget:
    1. Monthly planning and detailed allocation of income and expenses
  15. Annual Budget:
    1. Historical vs. zero-based budgeting
    1. Review and approval process with property owners
  16. Capital and Long-Range Budget:
    1. Planning for future capital expenditures and long-term financial forecasting
  17. Summary:
    1. Key takeaways on maximizing NOI, effective budgeting, and financial management in multifamily housing

Learning Objectives:

  • Develop Financial Management Skills: Understand the basics of budgeting, financial tracking, and reporting.
  • Maximize Property Income: Learn techniques to increase NOI and manage operating expenses efficiently.
  • Effective Budget Planning: Gain knowledge on creating accurate operating, capital, and long-range budgets.
  • Improve Financial Decision-Making: Enhance ability to make informed financial decisions to benefit property operations.

Target Audience:

  • Property Managers
  • Financial Officers
  • Asset Managers
  • Compliance Officers in the multifamily housing sector

Conclusion:

Budgeting 101 for Multifamily Housing provides essential training for managing the financial aspects of affordable housing properties. By the end of the course, participants will be equipped with the knowledge and tools necessary to ensure financial health and sustainability for their properties.

This session is part of a year-long collaboration between A. J. Johnson and MidAtlantic AHMA designed to provide affordable housing professionals with the knowledge needed to effectively manage the complex requirements of the various agencies overseeing these programs.

Persons interested in this training may register by visiting either www.ajjcs.net or https://www.mid-atlanticahma.org.

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