CAM Terms Flashcards
What percentage of Americans live in rental housing?
1/3
When playing the role of an investor advocate, who is included?
Owner, investors, lenders
When playing the role of a resident advocate, who is involved?
Residents, employees, neighbors, prospects
What types of affordable housing are available?
Section 8, Low income housing tax credit, workforce housing
Affordable housing
Decent, safe housing made affordable for individuals who generally earn less than 60% of the Area Median Income
Project based section 8
Provides rental subisidies for eligible residents residing in newly constructed, rehabilitated, and existing rental cooperative apartment projects. Project-based means it is for the units of a particular mortgaged property
Low Income Housing Tax Credit (LIHTC)
Dollar-for-dollar tax credit for affordable housing investiments. Provides incentives for private investors to develop affordable housing for low-income Americans
Workforce housing
Affordable housing for households whose incomes are not sufficient to obtain quality housing that is reasonably close to where they work
Co-Op Housing
Cooperative housing. Association or corporation owns a group of apartments and the common areas. Residents own a share in the co-op which entitles them to occupy an apartment as if they were owners
Low-rise building
No more than 4 stories
Mid rise building
Enclosed buildings that have five to ten stories with elevators
High rise
Enclosed buildings that have more than ten floors
Corporate apartment
Fully furnished and equipped with all necessary resident amenities
What information do you need in order to complete a financial analysis on a property?
The Income Statment
When doing a financial analysis, why do you need GPR first?
All calculations are derived from GPR. All other income and expenses are measured and evaluated as a percentage of GPR
What is a chart of accounts?
A list of accounts to which revenue and expenses are posted and show up on the General Ledger
Fixed-rate mortgage
Longer-term loans of 20 to 30 years and carry a fixed interest rate
Variable rate
Interest rate is adjusted periodically based on a financial index. Also called Adjustable Rate Mortgage
Balloon Loan
Fixed-rate mortgage for a set number of years (5, 7, or 10 usually) and then the rest of the loan must be paid in full in one payment
Bullet loan
Interest payments and the loan principal are paid off in one lump sum at a specified time
Escrow account
Trust account set up by the lender in which the borrower must make payments. Generally used to ensure that property taxes and insurance bills are paid
Capital expenses
Costs for large improvements that have an economic useful life beyond one year
Steps to budget development process
Identify goals, gather information, assign numerical values
What determines cap rates?
The market and quality of the property; can be as low as 5% and as high as 12%
Marketing mix
Controllable variables blended to produce the desired market response
Marketing vs advertising
Marketing involves understanding customer needs and developing strategies to meet them. Advertising is a paid promotional activity that focuses on driving immediate actions and sales (non-personal)
Marketing plan
Detailed, written account and timetable of the objectives and methods to be used to achieve the property’s marketing goals
Market analysis
Formal approach using data to make rational marketing decisions
Effective rent
Rent per month reduced by the monthly value of any leasing concessions
What is a market?
Current and potential residents who want to and are qualified to live in the apartment community
Target market
Specified group within a market, classified according to characteristics (location, demographics, economics, price, social, etc.)
Marketing objectives
Identifies a specific goal and defines its successful achievement
Marketing strategy
Outlines steps needed to achieve marketing objectives
Promotional marketing
Form of communication that is used to inform and persuade people about a product or service
Basic objectives of promotion
AIDA (Attention, interest, desire, action)
Advertising campaign
Program of coordinated ads and promotional activities intended to accomplish objectives
Turnover ration
total number of move-outs for a given period divided by the total apartment units
Three steps of the bidding process
Scope and specifications, bidding, awarding the contract
scope
Work to be performed under a contract or subcontract to complete a project. Must contain a detailed job specification
Job specifications (contractor)
Descriptions of specific materials, equipment, and construction methods to be used on a project
How often should you inspect the property?
At least once a month
Leadership in Energy and Environmental Design (LEED)
Most widely used green building rating system
- National Green Building Standard (NGBS)
Only green building rating system for homes and apartments approved by the ANSI
What are the three property assets to protect through risk management?
People, property, community goodwill
Three types of financial risk
Fraud, theft, embezzlement
Lockout/Tagout
Practices and procedures necessary to disable machinery or equipment to prevent the release of hazardous energy (electrical, mechanical, hydraulic, pneumatic, thermal, chemical, etc.) while employees perform servicing and maintenance activities
Safety Data Sheet (SDS)
Document that describes the health and physical hazards associated with a particular chemical or material
What are the written requirements for the PPE standard?
Standard does not require a written program, but does require a written assessment and documentation of exposures
Loss control
Doing everything you can to mitigate the impact of the loss once it occurs
Three things that are covered by General Liability
Bodily injury, property damage, personal injuries
Loss prevention
Being proactive in preventing losses
Keating Memorandum
Help you determine what a reasonable occupancy standard is for the property
What type of housing does Section 504 of the Rehabilitation Act cover?
Federally Funded Properties
What does the FCRA regulate?
Checking a prospective resident’s (or employment applicant’s) credit history
Also applies to prospective employees
What is the Fair and Accurate Credit Transaction Act (FACTA)?
An act that broadens the FCRA by extending the allowable types of consumer reports and providing descriptions of adverse actions.
When a prospective resident’s application is approved, what element of contract is being fulfilled?
Offer
A lease is drawn up to meet which element of contract?
Acceptance
Acceptance is complete when a lease is signed by all parties
What is consideration?
Something of value is exchanged for something of value from another party
Does an application of 17 years of age who has been legally emancipated have the capacity to sign a lease agreement?
Yes
FCC ruling on satellite dishes and TV antennas
Apartment residents may not be unreasonably restricted from installing an individual satellite dish or antenna
Negligence
An unreasonable response to a forseeable risk
Megan’s Law
A law requiring authorities to notify communities of the whereabouts of convicted sex offenders
Virginia Graeme Baker Pool & Spa Safety Act (VGBSA) requirement
All public pools and spas MUST use anti-entrapment devices
Performance security
A form of security deposit that ensures the successful bidder will perform according to all contract requirements
Lien waiver
Signed and notarized document that waives all claims against the property or the management company
What releases one party from liability for claims asserted by another party?
General Waiver of Release
Fair Labor Standards Act (FLSA)
Federal law that sets standards for minimum wage, OT, recordkeeping, and child labor
Title VII of the Civil Rights Act of 1964, as Amended
Prohibits discriminatory practices because of race, color, religion, sex, or national origin during any employment decision
Age Discrimination in Employment Act (ADEA)
Law prohibits employment discrimination due to the employee or applicant being 40 years or older
Occupational Safety and Health Act (OSHA)
Regulates workplace safety and health
Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA)
Prohibits employment discrimination because of an employee’s or applicant’s past, current, or future military obligations
Employment Polygraph Protection Act
Prohibits employers from requiring applicants to submit to polygraph examinations. Can be used in certain cases such as theft, embezzlement
Family and Medical Leave Act (FMLA)
Leave may be taken due to birth of child, placement of child with employee due to adoption, care for an immediate family member with a serious health condition. Max for all reasons combined in a 12 month period is 12 weeks
Conditional employment offers are contingent upon:
Satisfactory references and results of tests and background checks
When disciplining staff, how can you give employees the opportunity to improve?
The progressive discipline process
When a prospective resident applies, you must provide notification within __ hours of the application date.
72 hours
