1 Board of Commissioners Training U. S. Department of Housing and Urban Development Agency Management March 2009
2 Board of Commissioners Training Series I. The Commissioner’s Role II. The Executive Director’s Role III. Agency Management IV. Financial Operations and Oversight V. Physical Facilities and Maintenance VI. Procurement and Contracting Overview VII. Preventing and Resolving Audit Findings VIII. Performance Measures - PHAS, MASS, FASS, PASS, SEMAP IX. Conducting an Effective Board Meeting X. Emergency and Disaster Preparedness
3 Commissioners Training THE ACTIVITIES OF A PHA CAN BE DIVIDED INTO FOUR MAJOR FUNCTIONS. GENERAL MANAGEMENT PROGRAMFINANCIALMANAGEMENT The four functions are Interrelated and each supports the others. BOARD OVERSIGHT
4 RELATIONSHIPS LOCAL GOVERNMENT Creates ‑ Approves Board Members Mayor Serves as Ex Officio Member Provides Services ‑ Cooperation Agreement May Provide Funding to HA HOUSING AUTHORITY/Board of Commissioners, Builds/Acquires Housing Operates Low ‑ Income Housing in Accordance With Federal, State and local regulations Maintains Property Assists Low ‑ Income Families U.S. DEPT OF HOUSING AND URBAN DEVELOPMENT Provides Funding Technical Assistance Monitors Operations Corrective Actions
5 ACC Contract When approved for HUD public housing programs, the housing authority must sign an Annual Contributions Contract with HUD and must have a Cooperation Agreement in place with the city. These documents set forth the responsibilities and requirements of the parties in regard to operation of the assisted housing.
6 Resident Board Members Why include residents on the board and what is their function? Section 505 of the Quality Housing and Work Responsibility Act of 1998 requires at least one resident to serve on the board of a public housing authority (PHA). The purpose of the requirement is to provide for more resident involvement in PHA governance and to increase resident participation in creating and maintaining a positive living environment. Congress viewed the resident board requirement as necessary to promote a better understanding of resident concerns and to foster better relations and communication between residents and PHAs. The resident commissioner has the same authorities and responsibilities as the other board members.
7 Selection Process A PHA may select a resident board member by election or appointment. Resident board members may be appointed by the housing authority or elected by their fellow residents. Each housing authority decides how the resident will be chosen.
8 Eligibility Requirements To be eligible to serve as a resident member of the PHA board, a person must: Live in public housing or Section 8 (i.e., is directly assisted by the PHA). Be named on the lease. Be at least 18 years old.
9 THE ROLE OF THE EXECUTIVE DIRECTOR Hiring, training and terminating PHA staff. Preparing PHA operating budgets. Comprehensive Improvement Assistance Program applications and budgets, contracts and procurement documents Collecting rents and enforcing lease terms. Supervising cash management, bank reconciliation, resident selection, and maintenance.
10 Role of Executive Director Monitoring operations for fraud and abuse. Maintaining overall compliance with Federal, State and local laws, as well as PHA policy and procedures. Keeping the PHA Commissioners informed of any problems such as audit concerns, major resident issues, financial status, and changes to laws. Maintaining the units in decent, safe and sanitary condition.
11 HUD’s Role HUD provides funding Technical assistance Has a responsibility to monitor many PHA activities for compliance with Federal laws and regulations HUD requirements are outlined in the ACC and the Federal regulations, along with various handbooks and notices published by HUD. Commissioners should have access to all HUD regulations
12 COMMISSIONER CONTROLS TO PREVENT FRAUD AND ABUSE Internal Controls Clear Responsibilities Personnel Selection Independent Audits and HUD Reviews Inspections Accountability
13 COMMISSIONER DO's Do pass resolutions and policies only after thorough discussion and understanding of the purpose, usage, intent and implications. Do monitor policies and procedures from time to time to ensure that the result is what was intended. Do establish monitoring controls to detect and prevent conflicts of interest, fraud and abuse. Do ensure that an audit is conducted annually and that the report is reviewed by the Commissioners. If you have an area of concern, you may ask the auditors to expand their review.
14 Do conduct meetings at least quarterly with Resident Council leaders to solicit comments and input. We encourage Commissioners to consider training sessions for Resident Council leaders on the constructive role they can perform. Do ensure that the PHA operates legally and with integrity. Establish high ethical standards for PHA staff and act as positive role models. Do learn what the common risks are and be alert for problems such as embezzlement, improper procurement. and other irregularities. COMMISSIONER DO's – Cont’d
15 DON’Ts Don't sign blank checks, or checks that are not backed up with bills, invoices or vouchers. Don't have any bank accounts which are controlled by one (1) signature. Don't if at all possible, let the persons who are authorized to sign checks reconcile bank statements. Don't use PHA supplies, equipment, machinery, construction or rehabilitation supplies or staff for personal use.
16 DON’Ts – Cont’d Don't use PHA tax exempt status or PHA credit cards for personal use Don't use PHA contractors for personal purposes while they are engaged in PHA work. Don't accept gifts, dinners, or other gratuities from contractors or those bidding for PHA work.
17 DON’Ts Don't become involved in any business relationships between yourself and the PHA where you or your company are dealing with PHA matters. Don't approve contracts with provisions that are in violation of the ACC or HUD regulations.
18 INFORMATION WHICH SHOULD BE REVIEWED AT EACH BOARD MEETING 1. Copy of the latest (previous month) bank reconciliation. Reconciliation should be correct and large recurring amounts for deposits in transit should be discussed and resolved. 2. Summary of income/expenses by account classification along with comparisons to the operating budget. Substantial deviations between the two should be discussed and corrective actions taken as necessary.
19 BOARD MEETING 3. Listing of check vouchers issued/voided since previous meeting with basic information, i.e. date, check number, payee, purpose and amount. Listing should be reviewed for any unusual payments or payees. 4. Listing of monthly rental and other income collections/deposits. Subsidy payments and other transfer payments should be included on this listing. Large variations from month to month should be explained.
20 BOARD MEETING 5. Listing of investments and monthly activity in this area, if any. 6. Summary of travel costs with details regarding who traveled,purpose and cost of trips. 7. Summary on tenants accounts receivable and vacancy rate. If problems exist, executive director should furnish information on actions taken to resolve same.
21 BOARD MEETING 8. Number of evictions filed/completed and information on any specific problems with residents. 9. Summary of actions taken to deal with any outstanding hud or ipa findings. 10. Update on status of major capital improvement projects that may be underway.
22 BOARD MEETING THE FOLLOWING SHOULD ALSO BE REQUIRED FOR LARGE AUTHORITIES; 11. Information on contracts awarded where board approval was not required - purpose/cost/award method. 12. Information on staffing, i.e. payroll reports, number of position vacancies, etc.
23 Programs Public Housing Program Asset Management Housing Choice Voucher Program Tenant Based / Project Based
24 Public Housing Public Housing Authorities (PHAs) - or Public Housing Agencies - are organizations created by state or local governments. They administer the U.S. Department of Housing and Urban Development's (HUD) Low-Income Public Housing Program or other programs engaged in the development or administration of low-rent public housing. A PHA is responsible for managing and operating its local public housing program. PHAs may also operate other types of housing programs and provide other services including homeownership opportunities for qualified families; employment training opportunities and other special training and employment programs for residents; and support programs for the elderly.
25 PHAs shall manage according to an asset management model, consistent with the broader multifamily housing industry. Applicability: PHAs with 250 or more dwelling rental units must operate using the asset management model. PHAs with fewer than 250 units can treat their entire portfolio as a single project. Under this option, PHAs would not receive the add-on for asset management nor need to convert to an asset management model. Asset management refers to specific activities that PHAs must undertake as property owners. These activities fall into two general categories: Monitoring property management performance Making high level strategic decisions and policies. ASSET Based Management
26 Asset-based management (ABM) focuses on the operation and management of properties. –Ensures that the appropriate level of services are provided to each property; –Is tailored to the unique needs of each property, given the resources available to that property; and –Gives responsibilities, control, and decision-making ability to the project manager (not the central office). Components of asset-based management include: –Marketing, leasing, certifications, rent collection –Resident services –Routine and preventive maintenance (procurement) –Protective services –Asset-based accounting and budgeting (Fee-for-Service) Asset Based Management
27 PHAS Public Housing Assessment System provides for the assessment of the physical condition, financial health, management operations and resident services in public housing. Its purpose is to enhance public trust by creating a comprehensive management tool that effectively and fairly measures a PHA’s performance based on standards that are objective, uniform and verifiable.
28 Housing Choice Voucher The Housing and Community Development Act of 1974 authorized the Section 8 Program. The Section 8 Program included two components: Section 8 project based assistance Section 8 tenant based subsidy
29 HCV – Tenant Based The Section 8 existing housing program provided tenant based subsidies. Under this program, families select their own housing, and the subsidy followed the families when the family moved.
30 HCV – Project Based The Section 8 tenant based assistance for existing, newly constructed or rehabilitated housing replaced the Section 236 programs as the federal government’s production programs for privately owned assistance housing to families living in specific buildings built of rehabilitated under program contracts.
31 SEMAP Section Eight Management Assessment Program, measures a PHA’s performance in the Section 8 Housing Choice Voucher tenant- based assistance program.