St. Mary’s Court is a 140-unit, 9 story high-rise built in 1979. Located in Washington, DC. This property is a non-profit 202 senior community with HUD Section 8 assistance.
SPM assumed management of St. Mary’s Court (previously self-managed) in November 2013.
There were several significant challenges facing this community, which resulted in HUD violations and financial struggles including:
- Outstanding operating payables in the amount of $193k
- Underfunded tenant security deposit account
- Staffing structure and accountability
- Meal program
- Compliance
During the first 180 days of management, SPM successfully addressed a number of major issues by working closely with the Baltimore HUD office. We submitted a budget-based rent increase which generated additional income in the amount of $169,380 annually. With close oversight of expenses along with staff restructure, SPM was able to pay all outstanding invoices and fund the tenant security deposit escrow account by May 2014.
During January 2015, SPM worked with the mortgage company and was successful in obtaining an IRR (interest rate reduction) that yielded an annual savings of $64,000. This savings resulted in a continuous positive cash flow, allowing for building improvements and a Supplemental 241 loan for HVAC piping replacement. In 2020, the cash flow was so significant, we were able to refinance, which has allowed the community to fully fund their resident meal program, as well as a medical relief program that provides low-income residents with health and wellness supplies such as eyeglasses. In addition to the meal and medical relief benefits, the community now provides FREE WIFI to each apartment home.
The morale of the residents has improved dramatically as a result of the improvements including new common area furniture, flooring and paint, as well as a new terrace-level garden patio. Additional development and training of the management and maintenance staff has resulted in higher satisfaction levels and an improved retention rate. St. Mary’s Court continues to make substantial building improvements and operate successfully.