april 6, 2006 san antonio housing authority

April 6, 2006 San Antonio Housing Authority

BOARD OF COMMISSIONERS

SITE-BASED MANAGEMENT(Asset Management)

THURSDAY, APRIL 6, 2006


$12

$13

$14

$15

$16

$17

$18

2002 2003 2004 2005 2006

Operating Subsidy Comparison

Requested to Actual

2002 to 2006

Requested Funding

Actual Funding

Year

Funding

gap

In M

illi

ons


Recognizing this growing funding discrepancy, in September 2005, HUD issued the Final Rule on the Operating Fund program.

Subpart H 990.255 states:“PHAs shall manage their properties according to an asset management model, consistent with the management norms in the broader multi-family management industry”


The rule says…PHAs shall also implement these essential components of site-based management:

Project based management

Project based budgeting

Project based accounting

Today:

SAHA Central Office

Transition To Site-Based Management

FundsHUD

Site Site

Site



Today:

SAHA Central Office

FundsHUD

New Model:

SAHA Central Office

FundsHUD Services

Fees

Site Site

Site

Site Site

Site



The goal of site-based management is to model private sector property

management, and provide appropriate mechanisms for

monitoring operational and financial performance at the site level.



Properties will either stand alone or be grouped as a site, according to PHA’s discretion and HUD’s approval.

HUD will annually review performance and financial reports to ensure each site’s sustainability.


Financial and management decisions will be made at the site level. Property managers will be empowered to perform numerous management activities.


Leasing

Present Property Management:


Lease Enforcement Rent Collections Annual Recertification Marketing



Leasing Lease Enforcement Rent Collections

Site-Based Management:

Annual Recertification

Eligibility Repairs & maintenance Purchasing Security Resident services

Marketing

Property improvement planning and forecasting

Accepting Pre-applications


Generally, the overhead expenses must be funded through a management fee charge to the sites. The management fee pays for services such as:

Technology Human Resources Corporate Relations Finance Risk Management

Procurement oversight Property Management

supervision Executive Board of Commissioners


HUD has calculated the management fee at $43.11 per leased unit month.


SERVICES: This new funding formula may limit funding available for services beyond the essential property management functions. For example, our customers may experience a reduction in the following services:

Potential Impact on Our Customers


Elderly and disabled transportation Case management (Elderly/Disabled) Scholarship and Perfect Attendance Programs


PHAs may need to revise a site’s income mix (house fewer extremely low income families) to increase revenues.


INCOME MIX: Currently 81% of SAHA’s new admissions in the public housing program are at 30% of AMI or below.

HUD’s regulations provide that only 40% must be below 30% of AMI.

Potential Impact on Our Customers

Each site must, at a minimum, break even financially; therefore, revenues and expenses will need to be managed to reach this objective.

With these growing limitations on subsidy, programs such as Moving To Work and Family Self-Sufficiency become increasingly important tools to move residents up the income ladder, enabling them to pay more rent.



Potential Impact on Our EmployeesAs the transition to site-based management progresses, SAHA’s workforce will be streamlined through attrition. Moving forward, SAHA employees will need to be willing to:

Relocate to community sites Increase efficiency

Expand skill sets Multi-task Cross train Be flexible



HUD Notice PIH 2006-15 (HA), published March 22, 2006, established some guidelines and fast approaching deadlines for the implementation of site-based management.

As deadlines near and PHAs raise questions, we can likely expect more information to be provided by HUD.

Departments and workgroups throughout SAHA have been working diligently to establish plans and budgets to transition to this new management model.


MilestonesJanuary 1, 2006 All PHAs shift to a January 1 HUD funding date

April 21, 2006 Sites (groupings) entered into Public and Indian Housing Information Center (PIC)

May 1, 2006 SAHA begins rolling sites into site-based management, beginning with Alazan-Apache Courts, Woodhill Apartments, Homestead Apartments, Towering Oaks and Courtland Heights.

June 23, 2006 HUD approval/disapproval of groupings

July 1, 2006 SAHA begins transition to site-based accounting

October 1, 2006 All PHAs must be compliant with project-based accounting provisions

July 1, 2007 SAHA must be fully implemented with all asset management provisions for FY’08 (July 1, 2007- June 30, 2008)


Site-based management represents a significant shift in the manner in which the industry operates.

We will keep all of stakeholders informed as this process moves forward.



april 6, 2006 san antonio housing authority

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