Early Warning Systems for Affordable Housing Properties: Identifying and Communicating Property Risk
At the heart of our initial report was the need for housing development organizations to become more risk-aware, and for funders to become more open to providing early assistance to avert crisis. As a followup, Early Warning Systems for Affordable Housing Properties provides guidelines for developing an early-warning system. These suggestions are not designed to discourage organizations from risk-taking, but to help a developer’s board of directors and senior management recognize and manage the risks of development and long-term property ownership.
This report includes sample tools (e.g., criteria, guidelines and dashboard indicators) to help boards and senior management assess risks at various stages in a project’s life. These tools are meant to aid in deciding whether a project should move forward, when it should be deferred and when to approach lenders and other stakeholders for assistance. Creating an early-warning system is a highly effective way to monitor the most vital information for decision-making and manage your risk.