Slide Number #1 Cara Gillette The New PHAS

Slide Number #2 What We’ll Cover  Mandatory components under the current PHAS  How the projects will be assessed  Physical condition  Financial condition  Onsite management reviews and HUD form-5834  Capital Fund obligation and expenditure

Slide Number #3 Introduction  PHAS will be project-based  Each asset management project (AMP) will receive its own PHAS score  We’ll describe how PHAS should be applied to the AMPs  We’ll go through how to use PHAS as a management tool

Slide Number #4 Mandatory Requirements  Many of the current PHAS indicators are statutory  Vacancy rate  Capital fund obligation and expenditure  Rent collection  Utility consumption  Unit turnaround time…

Slide Number #5 Mandatory Requirements  PHAS indicators which are statutory:  Work orders  Inspections of units and systems  Screening, eviction, and anti-crime strategies  Economic self-sufficiency  Acceptable basic housing conditions  Other factors as deemed by HUD

Slide Number #6 Four Indicators under Old PHAS  Physical Condition30 points  Financial Condition30 points  Management Operations30 points  Resident Service & Satisfaction10 points

Slide Number #7 Indicators under the New PHAS  The new PHAS indicators will assess, for each AMP:  Physical condition  Financial condition  Management assessment  Capital fund obligation/expenditure

Slide Number #8 The New PHAS  In the first year of the new PHAS, only physical condition of each project will be scored  Last PHAs to get score under the current PHAS are ones with FYE 3/31/08

Slide Number #9 Transition PHAS  PIH (HA) published March 27, 2008  HUD is moving forward on project-based PHAS  HUD will issue a proposed PHAS rule in Spring of 2008 – including four scoring notices

Slide Number #10 PHAS Indicator #1: Physical Condition

Slide Number #11 Description & Purpose  For HUD to ensure that all PHAs provide housing that is:  decent  safe  sanitary  in good repair

Slide Number #12 Assessment  Assessment will remain the same in the new PHAS  HUD-contracted inspectors perform statistically valid sampling of all public housing units  Using Uniform Physical Condition Standards

Slide Number #13 Transition PHAS  Physical condition  Each AMP’s physical condition will be scored – this will be the only “binding” score until the new PHAS is fully effective  If a PHA scored 80 or above in the year immediately before the transition year, the PHA’s AMPs won’t get inspected in the transition year

Physical Score Summary Property Site (15%) Building (85%) Building Exterior (15%) Building Systems (20%) Common Areas (15%) Dwelling Units (35%) Health and Safety (across all areas)

Slide Number #15 Indicator #2: Financial Condition

Slide Number #16 Description & Purpose  Measures financial condition of PHA  Does the PHA have, and is it capable of managing, financial resources to support a housing program

Slide Number #17 Financial Condition  Financial of each AMP will be measured  HUD will issue a final version of the Financial Data Schedule (FDS)  Probably financial liquidity (current ratio) will be assessed  COCC and non-public housing won’t be included in the financial assessment

Slide Number #18 Update  PIH-REAC is updating the FASS-PH submission templates to be compliant with asset management  As a result, beginning July 1, 2008, to September 21, 2008, PHAs with FYE June 30, 2008, will not be able to create an unaudited financial submission

Slide Number #19 Update  PIH-REAC is updating the FASS-PH templates  PHAs will still be able to complete submission work for fiscal year end March 31, 2008, and prior financial submissions  HUD says it will issue information to revise the due date for the June 30, 2008, unaudited financial submission

Slide Number #20 Current Ratio  Measures ability to cover near term obligations  Measure of liquidity  Can you pay all your short- term bills with the cash in the bank and the cash you expect to be paid by customers?

Slide Number #21 Current Ratio  To calculate, divide available current assets by current liabilities  Current assets = cash equivalents

Slide Number #22 Current or Quick Ratio  Example :  PHA has $474,761 in current assets  PHA has $116,883 in current liabilities 4.1  Current ratio is 4.1 Current Ratio

Slide Number #23 Scoring  HUD will issue new scoring notices for the new PHAS

Slide Number #24 Management Assessment

Slide Number #25 Management Assessment  This is the indicator that will change most significantly  The PHA will no longer self-certify  HUD will conduct onsite reviews  All the components in this indicator are statutory – the measurement and scoring may change, but they won’t go away

Slide Number #26 Assessment under Old PHAS  Vacant unit turnaround time  Capital Fund  Work orders  Inspection of units and systems  Security  Economic self sufficiency

Slide Number #27 The New PHAS  Management assessment  Onsite management review will utilize HUD-5834  Form based on HUD-9834 for multifamily  HUD will attempt to conduct at least one onsite management at all PHAs in the transition year, in order to expose PHAs to the new system

Slide Number #28 Form HUD-5834  Let’s look at this form more closely, since it will be HUD’s assessment tool for project-based management under PHAS

Slide Number #29 Form HUD-5834  Comment period extended  On July 9, PIH published a notice extending the comment period until September 30

Slide Number #59 Management Assessment Components  Let’s look at some of these components

Slide Number #60  Divide number of occupied units by total number of units and subtract from 1 Vacancy Rate

Slide Number #61  AMP 1 has 438 units, 421 are occupied  421  438 = 96.1 % occupancy rate  1 minus.961 = 3.9 % vacancy rate Vacancy Rate Example

Slide Number #62 Vacant Unit Turnaround Time  Description and purpose  Average number of calendar days between:  Expiration date of lease; or  Actual move-out date or date PHA becomes aware of move-out; AND  Date of new lease

Slide Number #63 Vacant Unit Turnaround Time – Exempted Units (Tracked in PIC)  Vacant units undergoing Capital Fund assistance  Units approved for non-dwelling use  Vacant units approved for demo/dispo or conversion for size  Units vacant for reasons beyond PHA control  Litigation, Federal or state law, changing market conditions, natural disasters, casualty damage

Slide Number #64 Vacant Unit Turnaround Time  Average number of calendar days in:  Down time - time between move-out and assignment to maintenance  Make ready time - time it takes for maintenance to get unit ready  Lease up time - time from when maintenance has unit ready until new lease executed

Slide Number #65 Vacant Unit Turnaround Time  Don’t count the day unit was last occupied or day new tenancy began – only days in between  If re-leased unit was vacant in the prior fiscal year, must include vacancy days from the prior fiscal year

Slide Number #66 Capital Fund  Evaluates a PHA’s ability to administer modernization programs

Slide Number #67 Capital Fund Components  Two components anticipated for each AMP:  Unexpended funds over 3 FFYs  Timeliness of fund obligation within 2 FFYs

Slide Number #68 Proposed PHAS Breakdown The proposed PHAS is anticipated to be comprised of four components  PASS - 30 Points  FASS - 20 Points  MASS (onsite review) – 40 Points  Capital Fund – 10 Points

Slide Number #69 Project-Based PHAS - Summary

Slide Number #70 AMP Reporting  AMP reports from the stop-loss kit are some source reports HUD will want to see  And what you should be using as a management tool

Slide Number #71 Project Reports

Slide Number #72 Project Reports

Slide Number #73 Project Reports

Slide Number #74 Project Reports

Slide Number #75 Project Reports

Slide Number #76 Project Reports

Slide Number #77 Project Reports 17. Fair Housing (Reasonable Accommodation, FHEO Issues) UnitRequestDate Requested Status 114Request for live-in aide11/21/06Approved pending background check of live-in aid 187Request for transfer to sunnier unit10/29/06Denied 11/15/06. No documentation provided that need for a sunnier unit is related to a disability

Slide Number #78 A Systems Approach  You have to know how the projects are performing  Continuous trend analysis  Leadership, a plan, and smart work  An efficient COCC  More transparent data

Slide Number #79 Nonperforming Project HUD’s stop-loss kit defines nonperforming property:  PHAS physical score below 70  Significant crime and drug problems  Below 95% occupancy  TARS that exceed 7% of monthly rent roll  FAQ clarifies this means rent…

Slide Number #80 Nonperforming Project Nonperforming property:  PHAS grade of “D” or below for vacant unit turnaround and work orders  Utility consumption more than 120% of agency average  Other major management problems

Slide Number #81 Portfolio Performance Long-term prospects for each property:  Maintain project as is  Identify capital improvements needed  Dispose of property (demo, sale, etc)  Financial condition of each project  Political ramifications

Slide Number #82 A Systems Approach  Key components:  Highly skilled staff at the projects  Accurate, on-time electronic reports from and to the project  Properties performing well  Early intervention when needed

Slide Number #83 A Systems Approach  Highly skilled staff at the projects:  Project managers are business managers  Managing to the budget  Understanding and managing to financial reports  Skilled at marketing and tenant relations

Slide Number #84 A Systems Approach  Highly skilled staff at the projects:  Up-to-date job descriptions  Analysis of knowledge, skills and abilities needed and actual – and individual development plans  Performance of property tied to performance evaluations

Slide Number #85 A Systems Approach  Accurate, on-time reports  Stop-loss kit and forms HUD-5834  Accurate on-time financial reports  Quality control and file reviews  Review project performance  Define who sees what and who is responsible

Slide Number #86 Summary  Thank you for attending!  Join us again

Slide Number #87 Upcoming Lunch ‘n’ Learns…  HomeownershipJuly 25, 2008  Factors of EligibilityAug. 1, 2008  EIVAug. 15, 2008  Reasonable AccommodationAug. 22, 2008