Multifamily Risk & Performance Advisory

Know Your Risk.
Protect Your Returns.

We help multifamily owners, housing authorities, and investors manage complex building risk and performance — so they can make confident, long-term decisions.

10–15%
Average NOI improvement from capex optimization
18–25%
IRR on recommended capital improvements
5–8%
Occupancy lift from health & IAQ improvements
$268
Per-unit fine avoidance from regulatory compliance

What Keeps Owners Up at Night

Every MHEP Assessment is structured around the four questions every serious multifamily investor needs answered.

What is my litigation exposure?
Mold · IAQ · Asthma · Liability
Which upgrades deliver 15%+ IRR?
Energy · Systems · Returns
What is my tenant retention risk?
Health · Occupancy · Long-Term
What is my regulatory compliance gap?
LL97 · LL84 · HUD · ESG

"We help high value clients manage complex risk and performance so they can make bold, confident long-term decisions."

Multifamily Owners
Housing Authorities
Real Estate Investors
Portfolio Managers

Multifamily Health & Energy Performance Assessment

One comprehensive assessment. Structured for decision-makers. Built around your 10 most critical performance indicators.

Core Package
MHEP Assessment Report
Multifamily Health & Energy Performance — delivered per building/property
Executive Summary Core
10 KPI findings with plain-language performance snapshot for ownership and lenders
Building Health Risk Overview Core
Mold risk, CO/IAQ violations, pest pathways, humidity extremes — prioritized by litigation exposure
Energy Performance Evaluation Core
HERS-informed benchmarking vs NYC multifamily standards. Identifies waste driving OER up 8–12%
Mechanical Systems + IEQ Findings Add-On
HERS rating + lab-tested indoor air quality data with chain-of-custody documentation
Capital Improvement Priorities / Roadmap Core
5-phase prioritization framework — from Phase 1 risk analysis through Phase 5 ongoing HCR review
5-Year Cash Flow / Savings View Core
Year-by-year projection of capital recommendations, energy savings, and NOI impact tied to your 10 KPIs

Enhancement Add-Ons

Tailored to your risk profile. Recommended only when relevant.

Add-On
IEQ Lab Testing
Lab-analyzed indoor air quality samples. Ideal for litigation-facing clients and properties with vulnerable populations.
Add-On
Lead Paint Testing
XRF testing with full chain of custody. Supports HUD Lead Safe exemption applications. Required for pre-1960 buildings.
Add-On
Advanced Energy Modeling (HERS)
Deep-dive mechanical and envelope analysis for LL97 compliance planning and maximum energy ROI identification.
Add-On
Portfolio Benchmarking
Compare this building against your entire portfolio or NYC market benchmarks. Essential for acquisition due diligence.
Client Note: All add-ons are reviewed at intake. Your advisor recommends only what is relevant to your risk profile and budget.

Your 10 Performance Indicators

Every MHEP Assessment is anchored by 10 KPIs that connect building health and energy performance directly to financial outcomes — the numbers lenders, investors, and ownership need.

NOI
Net Operating Income
Gross Income − Operating Expenses
Capex improvements boost NOI 10–15%. Lowers everyday utility and maintenance expenses.
DSCR
Debt Service Coverage Ratio
NOI ÷ Annual Debt Payments (>1.25 target)
Upgrades strengthen lender confidence and refinancing position.
EOR
Economic Occupancy Rate
Actual Rent Collected ÷ Potential Rent
IAQ and health improvements drive higher retention — 5–8% occupancy lift.
OER
Operating Expense Ratio
Operating Expenses ÷ Effective Gross Income (<45% target)
Energy waste and deferred maintenance can drop OER 8–12%.
ECU
Energy Cost per Unit
$ per Occupied Unit Annually (NYC benchmark: $1,200–$1,800)
Benchmark comparison reveals inefficiencies invisible without independent data.
HRS
Health Risk Score
Composite: mold, CO/IAQ, pest pathways, humidity
IEQ findings prioritize litigation avoidance and insurance exposure reduction.
CapEx ROI
Capital Expenditure ROI
3–5yr payback on insulation, ventilation, lighting
Capital plan shows 18–25% IRR on $500K+ investments.
RCG
Regulatory Compliance Gap
Alignment: LL97, HUD Healthy Homes, ESG mandates
Proactive flagging avoids $268/unit/year in potential regulatory fines.
TRR
Tenant Retention Rate
% Residents Renewing Annually (>65% target)
Health improvements drive 10–15% retention boost and reduce costly turnover.
NOI/SF
NOI per Square Foot
$ per Leasable Sq. Ft. (NYC benchmark: $45–$65)
Combined health and energy optimizations generate 12–20% uplift.

MHEP Assessment Pricing

Per-building pricing based on portfolio size and complexity. No hidden fees. Add-ons reviewed at intake.

Small Portfolio
10–30 Units
Per building / property
$8,000
Base fee + $200/unit
Unit Multiplier$200/unit
Rush Fee (30 days)+20%
Large Portfolio
100+ Units
Per building / property
$25,000
Base fee + $150/unit
Unit Multiplier$150/unit
Rush Fee (30 days)+15%

Complexity Add-On Pricing

Add-On Service Small (10–30) Mid (30–100) Large (100+)
IEQ Lab Testing+$2,000+$4,000+$10,000
Lead Paint Testing+$5,000+$12,000+$25,000
Advanced Energy Modeling (HERS)+$1,500+$3,000+$5,000
Portfolio Benchmarking+$3,000+$8,500+$10,000
IEQ Lab Testing ($2K–$10K) is ideal for litigation-facing clients. Portfolio Benchmarking compares this building against your entire portfolio or NYC market benchmarks — essential for acquisition and lender reporting.

Your Capital Improvements Roadmap

Every MHEP assessment concludes with a phased roadmap — so you know exactly what to fix, when, and why it matters financially.

Phase 1 — Included with every assessment
HCR Risk Analysis
Comprehensive building intake: flagged risks, regulatory exposure (LL97, LL84, HUD), and 10 KPI baseline. The foundation of every long-term decision.
Phase 2 — High priority
High-Impact NOI & Health Improvements
Improvements with the highest financial and health returns. Each item includes: cost-benefit analysis, issue documentation, recommendation, cost range, and benefit of improvement — health + expense impact.
Phase 3
Medium Priority Improvements
Important upgrades with strong 3–5 year payback periods. Insulation, ventilation, lighting, and mechanical systems that lower OER and prevent deferred maintenance compounding.
Phase 4
Low Priority Improvements
Longer-horizon improvements and preventive measures. Documented for 5-year budget planning, board review, and lender due diligence.
Phase 5 — Ongoing
HCR Ongoing Review
We track implementation, re-assess KPIs, and update recommendations as regulations evolve. Your advisor remains a partner through every phase — not just the initial report.

Lead Paint Testing & HUD Exemption

For pre-1960 buildings and properties with children under 6, lead paint compliance is a legal requirement and a liability exposure. HCR manages the process end-to-end.

Post-December 2021: Tenant Turnover Rules
After tenant turnover, units must be retested at the 0.5 threshold and a new exemption applied for. Previous 1.0 exemptions do not automatically transfer to new tenants.
Pre-December 2021: Tenant Residency Rules
If a 1.0 exemption was received before December 2021, the tenant must have lived in the unit 5+ years. Less than 5 years requires 0.5 testing. More than 5 years — 1.0 remains valid.
0.5 Exemption Approval — What It Means
Once a 0.5 exemption is approved, XRF testing is no longer required for that unit. "Lead Safe" certification applies after remediation. HCR prepares the complete HUD application package.
Testing Threshold: 0.5 mg/cm² = Positive
Any XRF reading at or above 0.5 mg/cm² is a positive lead hazard finding requiring action, documentation, and a remediation plan.
What the Report Covers
Full XRF testing results across all applicable surfaces and units
Clear findings with positive and negative determinations per location
HUD-compliant documentation supporting exemption applications
Executive summary with plain-language interpretation of results
Certified technician sign-off and all required compliance identifiers
Remediation guidance where applicable

Who Needs Lead Paint Testing

Buildings constructed before 1960 — highest risk category
Buildings built 1960–1978 with children under 6 in residence
Properties applying for HUD Lead Safe or Lead Free exemption
Units with tenant turnover where a prior 1.0 exemption exists
Any property in active or anticipated habitability litigation
Vetted Testing Partners
Jerome Environmental · KAM Environmental

Frequently Asked Questions

Straight answers for owners, housing authorities, and investors.

Have a specific question about your property?

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