Role and Responsibilities of Members of Non-Profit Housing Boards in Ohio

1. Role and Responsibilities of Members of Non-Profit Housing Boards in Ohio October 11, 2011

2. Goals for Today • Review history of Non-Profit Housing Development Corporations (NPHDC) • Learn responsibilities of non-profit board members in Ohio • Go through board governance recommendations embedded in the DHN Self-Assessment Tool

3. Non-Profit Housing Development Corporations

4. Brief History of Housing for People with Disabilities • Prior to mid 1960s a community residential system did not exist in Ohio. • There were very few privately owned homes. • The only system supported by the state was state institutions. • Development of community-based group homes by parents/county boards/professionals began in earnest in 1970s and 1980s.

5. Brief History of Housing for People with Disabilities, cont. • SB 160 (1980) added housing to responsibilities of 169 boards. • Federal Fair Housing Amendments (1988) Communities must provide reasonable accommodation in zoning regulations to unrelated persons with disabilities. • Supported Living Program (1989) provided funds. • Development Rule (1992) freezes licensed beds – all new housing must be for 4 or fewer residents.

6. Brief History of Housing for People with Disabilities, cont. • Supported Living Program: • Shift from a facility-based model to a person-centered model. • Free choice of provider. • Owner of housing and S/L provider must be separate. • Supports not tied to location – they are portable. • Tenant has choice of roommates and input on location of property. • Licensure not required in shared housing.

7. Brief History of Housing for People with Disabilities, cont. • Community Capital Assistance Housing Program (1989) • Capital allocation of grant funds to counties. • Grant funds must be used by a local Non-Profit Housing Development Corporation (NPHDC) under master agreement with county board. • Grants used for purchase and closing costs only • Maximum size of home – 4 tenants. • NPHDC has 15 year obligation on grant funds.

8. Brief History of Housing for People with Disabilities, cont. • Capital Assistance Project (1992 to Present) • 77 NPHDC created across the state. • 83 counties participating in the program. • $45M Capital Assistance provided.

9. Why Non-Profit Boards? Ohio Administrative Code 5123:1-1-03Distribution of community assistance funds for the acquisition of housing County boards may use state housing funds under certain circumstances, including: OAC 5123:1-1-03(E)(1) – The county board shall enter into a contract with either a nonprofit corporation or a local housing authority.

10. Definition of Non-Profit in Rule 5123:1-1-03(B)(14)“Non-profit corporation” means a non-profit corporation incorporated pursuant to Chapter 1702 of the Revised Code, granted 501(c)(3) status by the internal revenue service, and specifically chartered to develop, acquire, and manage permanent, affordable housing for individuals with mental retardation and other developmental disabilities.

11. Applicable Laws • ORC 1702: Non-Profit Corporation Law • ORC 1716: Charitable Organizations • ORC 5123: Ohio Department of Developmental Disabilities • IRS Code 501(c)

12. Legal Duties From Guide for Charity Board Members: published by Attorney General of Ohio

13. Duty of Care • Read and understand mission, vision, and governing documents. • Attend board and committee meetings. • Be informed and prepared to participate in decision-making and oversight. • Exercise same care as a prudent person would in the handling of their own affairs.

14. Duty of Loyalty • Be prepared to put organizational objectives above self-interest. • Establish and follow written policies concerning conflict of interest situations. • Disclose personal financial interests when needed/excuse yourself from voting. • Avoid entering into business relationships between board members and the organization.

15. Duty of Compliance • Understand and comply with governing documents, including bylaws and code of conduct. • Know and comply with state and federal laws governing non-profit organizations, including registration and reporting requirements.

16. Duty to Manage Accounts • Develop policies that assure the financial responsibility of the organization. • Keep accurate and complete records of income, expenses, investments, and minutes. • Develop budget as a blueprint for program plans and all organizational spending. • Develop fundraising goals and assist the organization in acquiring adequate resources.

17. For More Information: Web-based Resources Ohio Attorney General www.ohioattorneygeneral.gov Ohio Secretary of State www.sos.state.oh.us Internal Revenue Service www.irs.gov

18. Board Governance Self-Assessment Tool: Part I and Part II

19. Mission Statement • Reason for the organization’s existence • Established by board • Reviewed annually “Ottawa Residential Services, Inc. exists to provide affordable and accessible housing for all persons in Ottawa County including those with disabilities or who are otherwise disadvantaged.”

20. Bylaws • Membership Policies (membership criteria) • Selection criteria • Orientation of board members • Selection of Officers • Board size • Board composition

21. Bylaws, cont. • Term limits • Scheduled self-assessment • Establishes volunteer role of board members • Board committees • Recording of minutes

22. Board Responsibilities • Goal Setting • Determining Policy • Funding Strategy/Budget • Financial and Legal Oversight • Participation in fundraising • Participation in meetings • Evaluation

23. Policy Setting • Board Governance Policies • Planning Policy • Finance Policy • Community Relations Policy • Organizational Operations Policy • Conflict of Interest Policy • Code of Ethical Conduct Policy

24. Board Matrix – Board Diversity • Ethnicity • Educational status • Economic status • Skill mix • Knowledge • Professional background • Family Member • Age • Residence in all service areas/counties (See ORSI example)

25. Board Member Position Description • Commitment to organization’s mission and programs. • Compliance with bylaws and policies. • Understanding role and responsibility of board. • Meeting preparation and attendance. • Requirement to visit sample of properties. (See NCCH example)

26. Board Member Orientation • Tour of homes • Role and responsibilities • Budget information • Table of Organization • Relationship to CBDD

27. Planning Process • Stakeholder assessment • Changing environment • SWOT • Input from staff, tenants, key constituents • Strategic Plan • Annual Plan • Workplans, timelines, areas of responsibility • Budget/Comprehensive Revenue Strategy

28. Self-Assessment Part II: Financial Management • Monthly financial reports • Operational Budget • Acquisition Budget • Capital Replacement Budget • Renovation Budget

29. DHN Technical Assistance • Funded by Ohio Developmental Disabilities Council • Provides DHN training director who can: • Assist with self-assessment • Attend/facilitate board meetings • Attend/facilitate stakeholder meetings • Facilitate strategic planning retreats • Provide consultation on board development, policy development and housing operations

30. Cathy Allen, Training Director Disability Housing Network 419-732-1770 * 419-260-3949 cathyallen@disabilityhousingnetwork.org www.disabilityhousingnetwork.org

31. Additional Resources Ohio Association of Non-Profit Organizations www.oano.org Center for Non-Profit Resources (Toledo) www.c4npr.org Center for Non-Profit Excellence (Akron) www.cfnpe.org BoardSource www.boardsource.com

32. Questions and Answers