Featured Content Includes Analysis on Affordable Housing, a Targeted Look at the Dallas Market, Q&A with an NYC Multifamily Investor, and Economic Trends Impacting the Multifamily Sector Overall

NMHC’s Quarterly Survey finds municipalities threatening to or imposing rent control are losing interest from multifamily firms 

American Landmark, one of the fastest-growing multifamily owner-operators in the country, is launching a new resident-centered customer service program at each of its 81 communities throughout the Southeast.  “Landmark 360” offers residents the following time- and money-saving guarantees:

Michael Shadeed, Director for Franklin Street Insurance Services, is nationally recognized expert in risk management, service, brokerage placement, and program administration for the commercial real estate industry.  He recently answered some frequently asked questions on how specialized insurance services can reduce the inherent risks associated with the affordable housing sector.

1. Are there any unique risks or complex insurance coverage needs that real estate owners, developers, investors and managers should be aware of concerning affordable housing? 

Yes, these risks involve Low-Income Housing Tax Credits (LIHTC) first party insurance or tax credit recapture coverage.  It provides indemnification for tax credits that are wholly or partially unavailable at the end of the year.  Coverage for loss includes interest or penalties assessed by the Internal Revenue Service on recapture amounts.  Also, LIHTC Professional Liability Insurance is a stand-alone professional liability policy that responds to the ownership structure of LIHTC real estate developments and provides indemnity coverage for damages the limited partner(s) incurs as a result of an error or omission of a general partner.  A standard indemnity and defense policy will offer coverage for third party claims alleging negligence available to all insured partners. Damages could include loss of LIHTC, as well as interest or penalties assessed by the IRS on recapture amounts.

Michael Shadeed, Director for Franklin Street Insurance Services, is nationally recognized expert in risk management, service, brokerage placement, and program administration for the commercial real estate industry.  He recently answered some frequently asked questions on how specialized insurance services can reduce the inherent risks associated with the affordable housing sector.

1. Are there any unique risks or complex insurance coverage needs that real estate owners, developers, investors and managers should be aware of concerning affordable housing? 

Yes, these risks involve Low-Income Housing Tax Credits (LIHTC) first party insurance or tax credit recapture coverage.  It provides indemnification for tax credits that are wholly or partially unavailable at the end of the year.  Coverage for loss includes interest or penalties assessed by the Internal Revenue Service on recapture amounts.  Also, LIHTC Professional Liability Insurance is a stand-alone professional liability policy that responds to the ownership structure of LIHTC real estate developments and provides indemnity coverage for damages the limited partner(s) incurs as a result of an error or omission of a general partner.  A standard indemnity and defense policy will offer coverage for third party claims alleging negligence available to all insured partners. Damages could include loss of LIHTC, as well as interest or penalties assessed by the IRS on recapture amounts.

When it comes to managing commercial property risks, most insurance experts agree that risk management services should be uniquely tailored to each individual client.  The International Risk Management Institute defines the term as “The practice of identifying and analyzing loss exposures and taking steps to minimize the financial impact of the risks they impose.” The failure to implement a reliable asset protection strategy could cost you to pay out hundreds of thousands of dollars for bodily injuries and property damages.

Ryan Cassidy and Evan Seacat of Franklin Street Insurance Services share three vital items multifamily property owners and managers should consider when developing loss control prevention strategies.

1. Maintain Accurate Records

Having a proper records management system is critically important and will greatly facilitate your commercial property damage claims. As an owner, you should provide the insurance carrier with a basic property summary, which includes updated details on asset improvements, claims narratives, and a loss history report.

RICS is pleased to announce the annual World Built Environment Forum (WBEF) Summit to debate this year’s theme, The Future of Investment in Real Assets, with a focus on how to harness new technology to mobilize the private capital investment needed to meet the growing global demand for new infrastructure, new real estate and the renewal of existing assets—while considering sustainability and the public good. Now in its fourth year, the Summit is the flagship event of RICS. More than 500 delegates drawn from the highest levels of industry, government and policymaking will debate how to make informed and responsible investments in a changing technological and geopolitical landscape.