1 / 23

2012 PHADA Commissioners Conference January 8-11, 2012

2012 PHADA Commissioners Conference January 8-11, 2012. Michael LaRiccia, Program Advisor, U.S. Dept. HUD Mike.LaRiccia@HUD.Gov. Coping with HCV Budget Cuts. Revenue Reduction & Liquidity Squeeze. The Pie is getting smaller and HUD is handing out the slices on an as needed basis.

nayef
Download Presentation

2012 PHADA Commissioners Conference January 8-11, 2012

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. 2012 PHADA Commissioners Conference January 8-11, 2012 Michael LaRiccia, Program Advisor, U.S. Dept. HUD Mike.LaRiccia@HUD.Gov Coping with HCV Budget Cuts

  2. Revenue Reduction & Liquidity Squeeze • The Pie is getting smaller and HUD is handing out the slices on an as needed basis. • Reduced Administrative Fees again in 2012 • HUD Cash Disbursement Changes • Will pay PHAs the amount needed to pay landlords vs. 100% payout of funding as in the past 6 years. • HUD will recover and hold, for PHA use, the HAP Reserve (NRA)

  3. This 1700 unit PHA received $7.9 million in 2011, and is on track to spend about $7.5 million. It began the year with a NRA $217,097 – about 2.7% of BA, and will end the year with about $655,000, an 8.6% NRA. (It will lease 98.6% of its units.) In 2011, HUD will disburse all $7.9 million, and MMHA will retain a reserve of $655,000. They will also earn about $866,517 in admin fees. All tolled, $8.8 million will be disbursed. Had the 2012 admin fee levels and disbursement changes been applied to 2011, MMHA would have received $8.062 million, and would have no NRA funds in the bank at year end. Admin fees would have dropped from $866,517 to $782,997. Liquidity Impact

  4. Reduced Admin Fee • 2010: 90% Proration of earned fees • 2011: 83% Proration • 2012 : 75% estimated proration 300 unit sample PHA at median fee rate of $61.54 pum. Leasing at 98.5%.

  5. Admin Fee Calculation Estimated Fee Rate for 2012

  6. Admin Fee Variation Median: $61.01 Little Rock, Ar. $143, 127 $179,306 $316,932 A 300 unit fully leased program would have earned the above amounts in the three locations in 2011.

  7. Number PHAs by Rate Level: 2011 528 HAs

  8. Revenue vs. Exp: Breakeven Levels

  9. Admin Reserve per Unit: Median by Size

  10. Options to Address Lowered Admin Prorations In our 300 unit PHA Example: An underleasing PHA can add $1,600 in revenue in 2012 with each additional UML Percentage Point . • Increase/Maintain Revenue • Maximize UMLs • 2 Yr Projection Tool • Scrutinize HAP Per Unit Cost HAP • Fraud Recovery Performance • Reduce Expenses • Cost Analysis – Peer Norms • Streamline functions/ Best Practices • Policy Choices • Alternative Management Approaches • Spend out of Admin Reserves –short term strategy • Subsidize from other Sources

  11. Revenue: Maximize Unit Months Leased • Manage Issuance process to tap into Unrealized Leasing Potential. Use Two Year Projection tool to model key variables and Year 2 Funding: • Per Unit Cost, Success rate, Turnover rate, length of time to lease. • Manage HAP Per Unit Cost. • Deconstruct costs by location, bedroom size. Analyze rent burdens. • Ensure Rent Reasonableness is vigorous • Maximize tenant income contribution

  12. Revenue: Fraud Recovery Revenue to Admin Median is $.31 per UML, but over one third of PHAs recover zero fraud, while one-fifth recover over $1 per UML. A $1.00 Fraud Recovery rate earns a 300 unit HA about $3,500

  13. Reduce Expenses: Cost Analysis Financial Statement compilation – All PHAs.

  14. High Level National Information • Some Nationwide Median Measures

  15. Comparing Admin Salaries by Fee rates

  16. Comparing Benefits costs per UML by Fee Rate

  17. Organization and Staffing • See Chapter 21 of HUD’s HCV Guidebook

  18. Reducing Expenses: Streamlining and Reducing Workload • Stabilize Leasing – Even pattern of issuance vs. boom and bust leasing effort. Use of Projection tool. • Minimize “bad turnover”: Better briefings, more forgiving policies will reduce need to issue vouchers • Increase Success Rate of leasing – fewer will have to be issued, inspected, etc. Better briefings, landlord outreach etc.

  19. Reducing Expenses: Streamlining and Reducing Workload • Reduce Inspections by: • Prevent HQS fails by preparing landlords and participants: Publicize “top 10 HQS Violations”. • Remote validation of fail corrections 2003 Ohio PHA Survey

  20. Reducing Expenses: Streamlining and Reducing Workload • Reduce third Party verification by using UIV and or accepting tenant originals • Better workload and inspection location scheduling by de-linking HQS Inspections and Reexaminations • Removing self-imposed requirements, e.g. yearly verification of birth certificates, and citizenship • Lessons from VASH Boot camps (process mapping): “Why are we still doing this…..?”

  21. Reducing Expenses: Policy Choices • Limit Interim Reexams: balancing HAP PUC and Admin burden Finding the judicious trade-off between cost to administer and PUC cost savings. What are thresholds for triggering an Interim?

  22. Reducing Expenses: Policy Choices • Limiting the number of moves to once per year • Closing the waiting list • Absorb Port families rather than billing other PHAs Board Responsibility: Assessing and Managing Trade-Offs .

  23. Alternative Management Approaches • Shared Executive Director, Finance Dept. • Contracting out functions • Consolidating with another HA • Transfer of Program • Consortium Board Responsibility: Strategic Assessment of viability of program in current environment.

More Related