The property has an occupancy rate of 76% and increasingexpenses in every property category has resulted in very weakproperty financials. Irongate Apartments is a 78-unit Section 8project for both the elderly and families. The project isineligible for annual rent increases from the US Department ofHousing and Urban Development, unless comparability can be shown,and therefore project revenues are unlikely to increase in thefuture.

HUD bases its rent subsidies on market rents paid for comparableunits in the immediate area.

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