The Power of Effective Asset Management
Asset management is more than just a financial exercise—it’s the backbone of sustainability for affordable housing operators. It involves monitoring property performance, budgeting for maintenance and capital improvements, and ensuring that housing remains affordable and livable for its residents. Overseeing the aging multifamily housing stock for many New York organizations remains particularly challenging. As the industry faces rising operating costs and increasingly complex regulatory requirements, providers operating in resource-constrained environments need additional support in building organizational capacity to maintain a stable housing portfolio for the long term.
Launching AMU 2.0
In response to these challenges, Enterprise launched Asset Management University 2.0, a comprehensive, organization-focused training and technical assistance (TA) program. Building on the success of AMU 1.0, this 15-month program was designed to equip participants with the tools and expertise needed to enhance asset management practices and embed them throughout their organizations. Strada Ventures, the lead consultant, facilitated all monthly training sessions, office hours, and one-on-one TA. The program successfully concluded in May 2024.
Building Capacity: Program Impact
AMU 2.0 focused on strengthening the capacity of affordable housing organizations to oversee the financial, physical, and operational health of their housing portfolios. The cohort included 16 nonprofit and mission-aligned for-profit affordable housing organizations, many of whom are BIPOC-led. These groups were provided with tools, training, and TA to strengthen their asset management operations. Operators across New York State were represented, including Rochester, New York’s Southern Tier, Yonkers, New York City, and oversaw a collective portfolio of 28,076 affordable homes.
AMU's curriculum required that participants at all levels of the organization attend training sessions that incorporated learning modules covering essential topics of asset management, including Asset Management vs Property Management, Understanding Key Performance Metrics, and Best Practices for Preventive Maintenance and Needs Assessment. Participants received 15 online trainings as well as one-on-one and group TA throughout the program.
From Challenges into Opportunities - Insights from AMU 2.0
Before joining AMU 2.0, many of our participants indicated that they faced significant challenges in implementing effective asset management practices due to limited staff capacity and the need to prioritize urgent property management issues over long-term planning. Many organizations lacked staff dedicated to asset management functions, were challenged with effectively managing third-party property managers, and had limited access to critical property data. Financial sustainability is also a persistent issue, compounded by rising costs, rental arrears, and resource constraints. Additionally, frequent staff turnover and a lack of clarity around the qualifications and responsibilities for asset management roles created barriers to building expertise and continuity in overseeing housing portfolios.
Early Outcomes of AMU 2.0
Following the training, organizations reported several early outcomes such as the development and/or refinement of asset management tools including portfolio dashboards, strategic asset management plans, and the hiring of an asset manager. These tools and practices will ultimately help organizations monitor compliance, track performance metrics, identify potential risks and facilitate a strategic approach to maintaining housing portfolios.
“AMU helped us design tools to improve the oversight of our compliance, physical, and financial functions. Being able to interface with and learn from other organizations also helped refine our ideas around departmental structure,” noted by affordable housing operator, Home Leasing.
Key Practices for Asset Management Success
The training helped identify some best practices for effective asset management:
- Implement Data Tracking Tools – Develop and maintain a portfolio dashboard to efficiently monitor building financial health, track performance, and identify potential risks.
- Conduct Regular Property Reviews – Proactively assess building conditions to address issues early and mitigate risks.
- Ensure Compliance – Stay up to date with regulatory requirements and implement systems to meet compliance obligations.
- Strengthen Communication with Property Managers – Maintain frequent communication between managers to secure access to key data systems and monitor ongoing building needs.
- Document Asset Management Processes – Memorialize procedures to ensure information is accessible for current staff and to support effective onboarding of new team members.
- Cross-Department Collaboration – Establish consistent communication between all departments, ensuring board members, leadership, and staff understand their roles in asset management.
Continuing the Work: Leveraging AMU 2.0’s Impact
While the training helped participants strengthen their organizational capacity in asset management, changing organizational systems is challenging, can take a significant amount of time, and is rarely instigated as the result of a single training. Ongoing capacity building, tailored TA, and financial support is needed for organizations to continue leveraging tools and resources provided by AMU 2.0, and to combat rising operating costs, high rental arrears, and industry-wide inflation.
Asset management is a cornerstone of organizational stability in affordable housing, directly impacting the quality, longevity, and affordability of New York‘s housing stock. Programs like AMU 2.0 provide invaluable resources, tools, and guidance that empower organizations to navigate the complex challenges of managing their portfolios while addressing systemic barriers like limited staff capacity and financial constraints. However, the work does not end when the program concludes—ongoing support and capacity-building is essential for ensuring a lasting impact for our partners.
The Federal Home Loan Bank of New York (FHLBNY) played a crucial role in making Asset Management University 2.0 possible. Neela Hanuman, Senior Community Investment Specialist at FHLBNY, shared:
“The Federal Home Loan Bank of New York is proud to have supported AMU 2.0, and grateful to Enterprise for its dedication to working with nonprofit and housing organizations to further build their capacity in the area of asset management. We are excited about the outcomes of these efforts to create and preserve affordable housing opportunities across our District, growing and strengthening the communities we are proud to serve.”
By prioritizing asset management, organizations can ensure they remain resilient in the face of challenges and continue to deliver safe, high-quality, and affordable housing for the communities they serve. This commitment not only safeguards the housing stock but also upholds the broader mission of equity and sustainability in affordable housing.
For resources on asset management, please visit Asset Management Resources.
The Enterprise Asset Management University 2.0 Program was supported by Federal Home Loan Bank of New York (FHLBNY).