1. HCV UTILIZATION TRAINING Serving More Families and Stabilizing HCV 1

2. Overview  Program Basics- Policy Choices and Outcomes  Projecting Leasing and Spending  Optimizing the Program  Stabilizing the Program  Making well informed trade-offs 2

3. Quick Exercise 3

4. 4

5. Exercise – Year 2 5

6. Exercise Continued 6 Success Rate 70% 14% reach HAP in 30 days, 70% in 60days, 26% in 90 days

7. Exercise- Monthly issuance results 7

8. Necessary Conditions for Successful Leasing PHA Management Capacity Sufficient Applicants with the Ability to Find and Lease Units Willing Landlords with Sufficient Units meeting HQS Available at Affordable Rents in Good Locations 8

9. 9  Landlord Outreach/Education - Landlord seminars and fairs, attending Apartment Assoc. Meetings, newsletters, etc.  Setting Payment Standard - Determining level of PS needed to reach extended areas of the market. Could include seeking exception rents. In addition, this helps mitigate the 40 th percent of income rent burden limit, which would otherwise limit the rent payable by participants in first time units.  Rent Reasonableness - RR process must be sound and flexible in order to pay a fair rent to landlords reflecting the market.  Maximum use of Tax Credit Properties - Enforcement of required acceptance of vouchers by Tax Credit properties.  Customer Service for Landlords -  prompt and professional responses to inquiries,  initial inspections conducted speedily after landlord Request for Tenancy Approval,  on time checks each month,  minimal delay in initial check,  periodic landlord satisfaction survey  Establishing Sec 8 Landlord Group - Used to obtain feedback, input on policy and process development, problem solving.  PHA Screening of Participants and Terminating program violators - At minimum criminal background, can consider more. Program will get reputation for having good tenants, or at least will not have negative reputation.

10. 10 Sufficient Applicants with the Ability to Find and Lease Units  Participant Outreach and Waiting List Management- Particularly where demand for program is weak. Maintains sufficient number of eligible applicants to meet needed voucher issuance volume.  High Quality Briefings of Participants - Informing and equipping participants with information about how the program works, and about the housing market, resources, etc., some including role playing on selling a landlord on Sec 8, and coaching participants.  Case Management /Customer Service- PHAs that organize staff around the client often lead to greater success by the participant. This provides for better follow-up.  Security Deposit Assistance - Many PHAs either operate or facilitate use of a revolving loan fund, or work with landlords to accept partial payments.  Search Assistance/Counseling - Providing assistance beyond the briefing to link participants with landlords, including transportation, support, etc., particularly in locations outside poverty or minority concentrations.

11. 11 PHA Management Capacity  Managing the Voucher Issuance Process - PHAs track: unit months under lease, participant turnover, participant success rate, average time to lease a unit, and PUC at least monthly to determine the number of vouchers that must be issued to reach a target number of unit months leased for the year. PHAs may also use this information to attempt to influence these factors, e.g. increasing success rate.  Managing the Waiting List - Maintains sufficient number of eligible applicants to meet needed voucher issuance volume.  Managing Budget Process - Finance staff and Sec 8 Program staff collaborate to track program costs and Annual Budget Authority to fully utilize dollars to issue vouchers. VMS reporting is reviewed and is accurate and shared within the HA.  Managing Human Resources - PHA staff are sufficient in number, skills and provided with support to handle the workload and give excellent service.  Managing Processes and Procedures - Effective procedures are developed covering key leasing and related processes. Quality control checks are used to ensure process is working or is fixed.

12. Mastering Critical Variables Hierarchy of Capacity Impacting Variables with Policy Choices Good measurement of variables Minimal to Anecdotal Knowledge of variables 12

13. Variables Factors Impacting Leasing and Spending Need to Master Estimating Variables  Historic experience  Near term tracking Critical Variables:  Turn- Over Rate  Success Rate of Issued Vouchers  Average time from issuance to HAP Contract  Cost per unit 13

14. Turn Over Rate  Good Turnover vs. Bad Turnover  Trend and Comparison – Using PIC  Comparison – EOP Report  Trend – Viewer Report Page by Type Code 14

15. 15 PIC Viewer report – EOP History

16. Success Rate: % Issued that are Leased  Policy Decisions Impacting Success Rate  Payment Standards  Voucher Expiration Date  Tolling  Performance Impacting Success Rate  Landlord Outreach  Rent Reasonableness  Quality briefings  RFTA Processing – Prompt Inspections and RR  Customer Service for both LL and Participant 16

17. Projection Arithmetic: Adding Units  Number Issued 80  X Success rate 60%  = Number Leased 48  X Number of Months Leased = UMLs {Variable Time from Issuance to HAP = 2 months} 17

18. Issuance and Leasing Activity 18 Vouchers leased 960 issued >>> 576 Leased >>> 2,067 UMLS gained

19. Projection Arithmetic – Losing UMLs  Less Attrition:  Number leased X Annual Attrition Rate  Monthly calculation & Cumulative Impact e.g. (4628 under lease * 7%)/12) = 27 est. attrition for the month, AND each month thereafter. 19

20. Attrition 20 At a 7% annual rate Annual UMLs lost from attrition originating in March : 10 Months * 27 Families leaving = 27 Unit Months Total Estimated UMLs lost for the Year

21. PUC  PUC = Gross Rent Minus TTP  Gross Rent Utility Allowance Owner Rent  Tenant Contribution: Higher of 30% adj. Income or Minimum Rent  Impacted by: Payment Standard, Utility Allowance, Participant Income – population served, EIV use, Rent Reasonableness, Market Conditions, Location options and choices. 21

22. Per Unit Cost (PUC)  Tracking, Trending (use of Monthly Spreadsheet 2009 to date)  Trade-offs 22 Program Impacts Program PUC Choices Payment Standards Number Housed Local Preferences Locational Choices Rent burden

23. Seeking Stable Leasing 23 Deliberate Choices of Issuance Patterns over 2 year period Use of Year Two Re-Benchmarking Modeling Making trade-offs to gain steady state Lower leasing level Year One Possible funding consequences – PHAs set goals ADVANTAGES More efficient and economical to administer Less prone to error and shortfall/overleasing Better dependability for applicants

24. Typical Lease-up Attrit-Down Pattern 24

25. A Stable Leasing Alternative Path 25

26. Funding Basics  “ Re-benchmarking” 2011 Probabilities  Using HAP spending from prior Calendar Year according to current Appropriations language (2009 and 2010 - used Fed. Fiscal Year )  UMA cap used in re-benchmarking  Set-Aside – CHANGE IN APPROPRIATIONS – no late year leasing increase set aside  Pro-ration ?? 26

27. NRA  History: 2005 began paying out all ABA  NRA = ABA minus HAP spending + Interest earned + fraud recoveries (over 50%) + FSS forfeitures  What level to maintain? 27

28. Two Year Forecast- Spreadsheet Basics  Workbook with multiple Spreadsheet – see tabs  Main spreadsheet is “Projection Analysis”. Other tabs support it and display workings for user  Admin Fee Tab contains Column A and B data for all PHAs 28

29. Two Year Forecast- Spreadsheet Basics  Data entry in Yellow Cells: for HAP and Leased units cell color changes once entered  Comment Flags for key columns – just put cursor over red corner of cell  All other cells protected 29

30. Two Year Forecast Spreadsheet Page 1 30

31. Two-Year Forecast – page 2 31

32. 32 Top Left Section: Data Entry in Yellow cells for Current Year Funding Re- Benchmarking Estimate and Beginning Yr NRA For Following year and Year Three calculated Admin Fee info – get from Admin Fee Tab Year Two & Three Funding Proration

33. 33 Central top Section of Spreadsheet Enter Success Rate Enter % of leased vouchers that reach HAP contract within 30, 60, 90, 120 days of Issuance. Must add to 100% Enter Annual Turnover rate – number participants leasing as a percent of all leased units. Converts %’s leased in time categories to an average # of months from issuance to leased Keeps running total for user to assure percentages add to 100%

34. 34 Right Top Section: Basic Dashboard CURENT AND FOLLOWING YEAR Leasing Percentage Spending as % of ABA and as % of all funds i.e. plus NRA Projected NRA at end of CY and Following Year Projected Admin Fees Earned PUC Funded: ABA divided by UMA. Can be compared to current PUC to determine if UMAs are supportable. Year Three Beginning status – Using the Year Three benchmarking funding level, compares monthly Yr 3 ABA against December Year Two monthly spending. If a deficit, calculates number of months deficit can be financed by estimated Yr Two ending NRA

35. Two Year Forecast – current year monthly left half 35 Input cells. “Other Planned additions or reductions “ E.G. Adds thru absorbing ports, Reductions from Receiving PHA absorbing reducing units, etc. Results from Attrition and new leasing from issuance. Net actual and projected units leased

36. 36 Two Year Forecast – current year monthly data right half of spreadsheet Allows user to project using different PUC from that month forward

37. Graphs: Total Leased, Issued, Leased from Issuance 37

38. Graphs: Spending, ABA, All Funds 38