Company Description
This property is an occupied, recently renovated single family home located in Cleveland, Ohio.
The renovations were completed right before the new tenant moved in on October 14th, 2021.
The tenant is Section 8 and is on a 1 year lease for $1,026/month all paid by the voucher program. The lease started on 10/14/2021.
Because the tenant is Section 8, this property was also recently inspected by HUD (Department of Housing and Urban Development) and passed inspection.
You can view the full list of renovations and post-inspection repairs in the "Documents" tab above.
Updates:
Update 8/23/2022: The tenant currently has a voucher that will not be renewed by EDEN. The tenant has applied with CMHA (Public housing authority in Cleveland) and has been approved for an 8 year voucher with the program until 2030, and will pay 30% of the rent. The Property Manager is currently working with the new program to complete an inspection report before they can approve the rent for the new lease. The target rent for CMHA approval is $1,400. If approved, this would be a $374 (36%) increase over the previous rent of $1,026 and the CoC Return would increase from 8.6% to 13.4%. The PM advised that the program may try to negotiate the rent down, but that there is an opportunity for a rent increase with the program.
Update 9/23/2022: The Housing Voucher program has reviewed and denied the requested rent amount of $1,400/month. HUD regulations require that the tenant may not pay more than 40% of their adjusted income for their rent, plus the cost of utilities on a first year lease. HUD negotiated a rent amount of $1,130 for the first year of the lease and contract. The tenant's portion will be $449 plus they will also be paying for all of the utilities. Previously, owners were paying $1,750/year for utilities. Additionally, a rent increase may be requested in the second year, if the lease is to be renewed. At that time, the 40% limit will not apply, a rent comparison will be reviewed again, and the program will pay the full rent. The PM is waiting on the Housing Voucher program to complete the compliance inspection of the property and will confirm the effective date for the new lease after this is completed. If the compliance inspection is approved, the CoC return will be 11.9% once the new lease begins.
Update 10/12/2022: The property failed the required compliance inspection due to an existing leak in the bathroom. A vendor was dispatched and identified that the leak is coming from the roof. The required repairs include patching the roof, removing and replacing damaged drywall, and repainting the entire unit with semi-gloss paint to prevent peeling paint. The total cost of repairs is $3,109.31. These funds will be deducted from the Maintenance Reserve which will be replenished via 10% of the cash flow until it is full again. Once the property passes the compliance inspection, the Property Manager will confirm the effective date for the new lease.
Update 10/19/2022: The Housing Authority requires additional repairs in order for the property to be approved for the tenant's Housing Voucher. The additional repairs include: Replacing the leaking kitchen faucet. Reglazing the tub and shower. Re-caulking and sealing the shower. Installing a trim around the bottom of the tub. Securing ceiling tiles. Reinforcing railings on the porch. Repairing the hole in the ceiling of the porch. The total cost of repairs is $2,997.75. These funds will be deducted from the Maintenance Reserve which will be replenished via 10% of the cash flow until it is full again. The compliance re-inspection is scheduled for the end of this month. Once the property passes the compliance inspection, the Property Manager will confirm the effective date for the new lease.
