ANALYZING THE IMPACT OF MARKET VOLATILITY ON SUPPORTIVE HOUSING OPERATIONS IN NYC

Services for the UnderServed (S:US) is a NYC-based nonprofit organization that provides housing, employment, skill-building, and rehabilitation services to transform the lives of people with disabilities, people in poverty, and those experiencing homelessness. With the onset of the COVID-19 pandemic, S:US became interested in analyzing the cash flow of its housing services to understand the impact of market volatility on its operations. The Capstone team used rent rolls, vacancy reports, and audits to conduct a financial analysis of thirteen supportive housing buildings, including one homeless shelter, owned and operated by S:US. Using this data, the team performed income-expense and cash collection analyses against the NYC industry benchmark established by the Housing Development Corporation to evaluate cash flow performance. The team integrated its findings into operational recommendations that would improve net operating income without sacrificing the client’s mission of making housing affordable and available to all.