Successful Scattered Site Rental Programs Webinar - Slides
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Transcript of Successful Scattered Site Rental Programs Webinar - Slides
To Do nload the Webinar SlidesTo Download the Webinar SlidesA copy of the PowerPoint is on the NSP Resource
E hExchange. 1. www.hudnsphelp.info.2 G h R Lib2. Go to the Resource Library3. Click on Webinars4. Choose Upcoming Sessions5. Choose Scattered Site Webinar6. Download the Presentation Slides
U.S. Department of Housing and Urban Development
Successful Scattered Site Rental ProgramsPrograms
An NSP WebinarAn NSP WebinarThursday, February 17, 2011
PresentersPresentersPresentersPresentersCloudburst Consulting Group:• Julia Pierson, Manager, [email protected], g , j p @ g p• Carole Burchette, Manager,
Model Programs:• F.T. Burden, Executive Director, AIRS/Empire Homes,
Baltimore, MD. [email protected], www.airshome.org, @ g, g• David Morton, Executive Director, Reno Housing Authority,
Reno, NV. [email protected], www.renoha.org
HUD:• John Laswick, NSP Team Leader, [email protected]• David Noguera, CPD Specialist, [email protected] Noguera, CPD Specialist, [email protected]
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Confirm Audio - Ensure that your audio yfunction is selected properly.
•Choose “Use Telephone” to speakTelephone” to speak and listen by phone.
•Choose “Use Mic & Speakers” to speakSpeakers” to speak and listen through your computer’s microphone & speakers.
To Ask a Q estion In WritingTo Ask a Question – In Writing
•Type a question in the “Question” pane; p ;we will acknowledge your question at the appropriate time.
To Ask a Q estion B PhoneTo Ask a Question – By Phone
To ask your question verbally, click the blue hand button; your call
ill b l d i thwill be placed in the queue..
Please wait patiently p yuntil your name is called, at that time you will be on the open phone to ask yourphone to ask your question.
Webinar ObjectivesWebinar ObjectivesWebinar ObjectivesWebinar Objectives• Why choose scattered site rental strategy for
NSP?NSP?• Keys to successful scattered site project
– Mission alignmentg– Partnerships– Development decisions
Management decisions– Management decisions• Self-management pros and cons• Tips and critical success factors
• NSP Rental Requirements• Resources for Success
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Unable to Sell NSP Houses?Unable to Sell NSP Houses?Unable to Sell NSP Houses?Unable to Sell NSP Houses?• First Try –
I ti d it b d k ti t h i– Innovative and community-based marketing techniques– Incentives such as homebuyer subsidies– Qualifying more buyers through credit counseling and
NSP-friendly lenders• When All Else Fails –
Scattered site rental or– Scattered site rental or – Lease-purchase (Webinar 2/24 2-4 pm)
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What is Scattered Site Rental Housing?What is Scattered Site Rental Housing?• Small projects, usually 1-4 units
G hi ll di d• Geographically dispersed
• Advantages• Advantages– Good strategy where the homeownership market is
weak.– Affordable housing is spread out throughout the
community rather than concentrated in one place.– Rentals can be converted to homeownership when p
the market changes. (what about the affordability pd?)– Can be used for the set-aside for 50% AMI.
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How Do I Make it Work?How Do I Make it Work?How Do I Make it Work?How Do I Make it Work?A. Mission Alignment - Understand how scattered
site aligns with your organization’s NSP goalssite aligns with your organization s NSP goals. B. Partnerships - Secure partnerships for skills and
resources that your organization lacks.resources that your organization lacks.C. Development - Make wise development
decisions.D. Management - Determine how best to manage
the properties.
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A Mission AlignmentA Mission AlignmentA. Mission AlignmentA. Mission AlignmentDouble bottom line:
1 S t i bl fi i l f1. Sustainable financial performance• Positive cash flow• Maintain and manage the asset with the• Maintain and manage the asset with the
long term in mind2. Progress on mission oriented goalsg g
• Neighborhood stabilization• Resident self-sufficiency• Community building
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B PartnershipsB PartnershipsB. PartnershipsB. Partnerships• Secure partnerships and third-party contracts for skills
and resources that your organization lacksand resources that your organization lacks. – Local community development corporation– Housing authority (Housing Choice Vouchers; Project
Based Vouchers)– Supportive housing nonprofit (Shelter + Care;
Supportive Housing Program)pp g g )– For-profit management company– For-profit developer
• Put it in writing Memorandum of Understanding or• Put it in writing - Memorandum of Understanding or contract that clearly spells out each party’s responsibilities.
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C. Development DecisionsC. Development DecisionsChallenge Strategy
• Geographically dispersed • Choose properties in close proximity and in same jurisdiction
• Know your neighborhood• Diverse housing stock of single-
famil ho ses ho ses• Standardize the materials and finishes used
in rehabfamily houses, houses converted to apartments, small apartment buildings
in rehab• Choose durable materials
• Decentralized property • Determine where leasing and rent collection• Decentralized property management
• Determine where leasing and rent collection will take place
• Lack of economy of scale • Expenses higher than
• Control expenses• Secure project based subsidiesp g
multifamilyp j
• Use capital subsidies instead of debt• Partner with a housing authority, CDC, or
supportive housing provider• Highly mobile management and
maintenance staff• Drive by and inspect the properties regularly• Provide staff with technology for
communication 9
Model ProgramsModel ProgramsModel ProgramsModel ProgramsDetails about AIRS and Reno Housing Authority’s
tt d it j tscattered site projects:• Description of the scattered site portfolio• NSP scattered site project description• NSP scattered site project description• Why scattered site housing was chosen for the
NSP projectp j• Strategies for addressing the challenges
Break for Q & A
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Just a ReminderConfirm Audio- Ensure that your audio function is selected properly.p p y
•Choose “Use Telephone” to speakTelephone” to speak and listen by phone.
•Choose “Use Mic & Speakers” to speakSpeakers” to speak and listen through your computer’s microphone & speakers.
Just a ReminderJus a e deTo Ask a Question- In Writing:
•Type a question in the “Question” pane; p ;we will acknowledge your question at the appropriate time.
Just a ReminderJus a e deTo Ask a Question – By Phone:
To ask your question verbally, click the blue hand button; your call
ill b l d i thwill be placed in the queue..
Please wait patiently p yuntil your name is called, at that time you will be on the open phone to ask yourphone to ask your question.
D Management DecisionsD Management DecisionsD. Management DecisionsD. Management DecisionsSelf-Management Pros & Cons
Mi i fit• Mission fit– Can hire residents or neighborhood people– Can assure that property management follows theCan assure that property management follows the
core organizational principles– But the intensity of day-to-day property management
tasks may interfere with core mission worktasks may interfere with core mission work
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Management DecisionsManagement DecisionsManagement DecisionsManagement DecisionsSelf-Management Pros & Cons (continued)• Capacity• Capacity
– If organization has adequate capacity, this can be cost effective
– Organization earns management fees if it self-manages, and if not, then it needs to find other funds to cover asset management compliance and oversightmanagement, compliance and oversight.
– Difficult for a smaller organization to develop the high level of expertise and experience needed to have adequate capacity to provide its own propertyadequate capacity to provide its own property management
– There may be no viable alternatives in the community
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Management TipsManagement TipsManagement TipsManagement Tips• Quality Tenants
M k ti t t l ti i tifi ti– Marketing, tenant selection, income certification– Orientation for new residents– Customer satisfaction
• Focus on Lease Compliance– Capacity and fortitude to enforce lease requirements
including evictions–including evictions– Promote a fair and consistent reputation with
residents• Assure compliance with regulations
– NSP regulations– Local landlord-tenant lawLocal landlord tenant law
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Management TipsManagement TipsManagement TipsManagement Tips• Assure Steady Income
I l t l t i– Implement annual rent increases– Conduct consistent rent collections– Consider rent subsidies for LI families
• Control Expenses– Reliable and inexpensive suppliers and contractors
Bulk purchasing– Bulk purchasing– Inventory control– Product durability
• Control Financial Losses and Gains– Build reserves for replacements– Be prepared to cover deficits with other fundingBe prepared to cover deficits with other funding– Know what it takes to break even
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Property ManagerProperty Manager• Oversee management of rentals and ensure compliance
with regulationswith regulations• Manage all information systems• Maintain data and records• Oversee maintenance staff• Collect rents• Maintain effective, professional renter relations, p• Assure proper implementation of move in, move out and
eviction proceedings• Conduct inspections of units• Conduct inspections of units• Ensure that all units are turned over expeditiously• Ensure that preventive maintenance plan is followed
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Other Property Management StaffOther Property Management StaffOther Property Management StaffOther Property Management StaffOccupancy Specialist
L i A tLeasing AgentReceptionist
ClerkClerkBookkeeper
Maintenance SupervisorpMaintenance Worker
Grounds Worker
In a small organization,some staff will wear many hats!some staff will wear many hats!
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Management FeesManagement FeesManagement FeesManagement Fees• For supervising property operations
Fi i l M t– Financial Management– Compliance and Quality Control– Ownership Oversight– Supervision of Manager
• Fees are typically based on a percentage of rents collected but also consider the per unit percollected, but also consider the per unit per month (PUPM) fee that is earned and the total fee earned for a small projectfee earned for a small project
• Customary to charge a higher percentage for scattered site, small projects and projects with below market rents.
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Critical Success FactorsCritical Success FactorsCritical Success FactorsCritical Success Factors• Develop a rental operations manual and
t lmanagement plan• Use specialized property management software• Write a summary of the requirements of each• Write a summary of the requirements of each
funder and a calendar of annual compliance requirementsq
• Understand fair housing regulations as they apply to rental housing management
• Asset Management – The long term commitment to steward the physical
asset and the financial structure that supports itasset and the financial structure that supports it
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NSP Rental RequirementsNSP Rental RequirementsNSP Rental RequirementsNSP Rental Requirements• Income verified at move-in only
See Guide to Completing NSP Income Certifications– See Guide to Completing NSP Income Certifications at www.hudnsphelp.info
• Units that are originally set aside and occupied by households below 50% of AMI must be re-rented to households also below 50% AMI
• No ongoing property inspection standard requiredg g p p y p q• Use developer agreements not subrecipient agreements
for rental projects because of program income concerns.• Can change a project from homeownership to rental• Can change a project from homeownership to rental
without a substantial amendment to the action plan, but do need to modify the developer agreement.
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NSP Rental RequirementsNSP Rental RequirementsNSP Rental RequirementsNSP Rental RequirementsAffordability:• Defined in Action Plan• Defined in Action Plan• HOME rent and affordability periods are acceptable
Per Unit NSPSubsidy
MinimumAffordability Pd.
<$15 000 5 years<$15,000 5 years$15,000 - $40,000 10 years>$40,000 15 years$ , yNew Construction 20 years
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NSP Rental RequirementsNSP Rental RequirementsNSP Rental RequirementsNSP Rental RequirementsAffordable Rents:
Adj t t i l l tilit ll• Adjust rents using local utility allowance schedule
Income RentLess than 50% AMI Use Low HOME Rent50 t 80% AMI U L f Hi h HOME50 to 80% AMI Use Lesser of High HOME
Rents or Fair Market Rent80 to 120% AMI Grantee should develop
appropriate policies for their own circumstances; must be reasonable
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(per FAQ 65)
Resources for SuccessResources for SuccessResources for SuccessResources for Successwww.hudnsphelp.info• NSP Multifamily Tool Kit• NSP Multifamily Tool Kit • NSP Single Family Rental Tool Kit
– Creating an NSP Eligible Rental Project– Guide to Completing NSP Income Certifications– Sample Scattered Site Rental Housing Management
Document Set• HUD Sponsored Webinar in the NSP Learning Center
– Fair Housing Act, Section 3 & Section 504 RequirementsRequirements
– HOME and NSP: Creating Affordable Housing, Revitalizing Neighborhoods
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Resources for SuccessResources for SuccessResources for SuccessResources for SuccessWritten Materials
S l F C ti f H i d A t• Sample Forms, Consortium for Housing and Asset Management, www.cham.org/forms.html
• Toolkit for Developing and Operating Supportive Housing, Corporation for Supportive Housing, www.csh.org
• Property Management - Long Term Thinking & Short Term Action Enterprise Foundation 2004Action, Enterprise Foundation, 2004, www.practitionerresources.org
• Developing and Managing Scattered Site Rental Housing, E t i F d ti 1999 h d h l i fEnterprise Foundation, 1999, www.hudnsphelp.info
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Resources for SuccessResources for SuccessResources for SuccessResources for SuccessStaff Training
C ti f H i d A t M t• Consortium for Housing and Asset Management (www.cham.org) – Certified Housing Asset Manager – Nonprofit Housing Management Specialist
• National Association of Housing and Redevelopment Officials– Professional Development (www.nahro.org/npds)
• NeighborWorks® Training Institute (www.nw.org) AM350 Nonprofit Housing Management Specialist– AM350 Nonprofit Housing Management Specialist
– AM230 Property Management for Scattered Site Rental Housing. AH102 The Basic Steps of the Affordable Housing– AH102 The Basic Steps of the Affordable Housing Development Process
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Questions & AnswersQuestions & Answers
Reminder: You can ask in writing by typing a question in the “Question” pane. You can ask a question verbally by clicking the blue hand button.
Thank you for Joining Us!Thank you for Joining Us!Your Comments and Feedback are needed!
• Following the presentation you will receive a brief survey from SurveyMonkey on Successful y y yScattered Site Rental Programs; or to access the survey directly follow the link: h // k / /ZDX8 JC• https://www.surveymonkey.com/s/ZDX85JC