Stop-Loss Submissions Kentucky Housing Association Mid-Year Conference Presented by Brian Ruth February 7, 2007

Gainers and Decliners Under New Operating Subsidy Rule

Gainers and Decliners Under New Operating Subsidy Rule

What is Stop-Loss If these PHAs can demonstrate successful conversion to asset management, they can have their losses stopped, hence the name, "Stop-Loss."

REDUCTION TABLE Calendar Year Current Reduction Proposed Reduction 2007 24% 5% 2008 43% 2009 62% 2010 81% 2011 100% 2012 Submission Dates Year 1 April 15, 2007 Current Reduction 5% Year 2 October 15, 2007 Current Reduction 24% Year 3 October 15, 2008 Current Reduction 43% Year 4 October 15, 2009 Current Reduction 62% Year 5 October 15, 2010 Current Reduction 81%

Stop-Loss Guidance PIH 2006-14 (March 22, 2006) PIH 2006-35 Stop-Loss Extension Notice (September 25, 2006) Stop-Loss Submission Kit (July 13, 2006) PIH 2006-33 Changes in Financial Management and Reporting Requirements for Public Housing Agencies Under the New Operating Fund Rule (24 CFR 990)

Stop-Loss Guidance Frequently Asked Questions – Stop-Loss Submissions (October 2, 2006) Updated FAQs (December 29, 2006) Coming Soon – 1-800 Helpline and e-mail address where you can direct questions Check Asset Management website frequently for updates. www.hud.gov/offices/pih/programs/ph/am

Stop-Loss: Key Dates Successful Conversion April 1, 2007 Year 1 Successful Conversion April 1, 2007 PHA Submission Package due April 15, 2007 Initial HUD Review of Submission Packages April 15 – July 15, 2007 Submission of Operating Statements for Projects and COCC July 15, 2007 HUD Review of Financial Statements and Other Elements July 16 – Oct. 15, 2007 HUD Issues Determination of Successful Conversion December 15, 2007 Year 2 Deadline for 2nd Year Stop-Loss Application Packages October 15, 2007

Criteria for Successful Conversion to Asset Management (Year 1 Stop-Loss) Project-based accounting Project-based management Financial feasibility of Central Office Cost Center Centralized services arranged in best interest of projects System of review of project performance Capital planning Risk management responsibilities related to regulatory compliance

Stop-Loss Submission If application package is submitted prior to April 15, 2007 and application is not approved, it cannot be resubmitted for that year Incomplete submissions will not be reviewed for Stop-Loss For initial submissions, project-based budgets and COCC budgets do not have to be approved by PHA Board

Small PHA Submissions Not required to have a Central Office Cost Center Organizational Chart may exclude Project Management if the E.D. performs that function Reasonableness of administrative costs Can still take advantage of fungibility of Capital Funds monies

Review of Submissions Review Application for completeness Financial review Review COCC of PHAs with 250 units or more Desk review Site visit (where applicable)

On-Site Review Protocol Preliminary meeting with Executive Director Review organizational structure Inspect sampling of properties Financials Contracts Capital Plan Appearance of site(s) Management Plan Return to COCC for follow-up questions Exit interview

Delivery Address for Stop-Loss Submission Package U.S. Department of Housing and Urban Development Office of Public and Indian Housing Real Estate Assessment Center, Financial Management Division 550 12th St. SW Washington, D.C. 20410