© Copyright 2009 Nan McKay & Associates Earned Income Disallowance © Copyright 2008 Nan McKay & Associates Housing Help Sessions Name of session – date of session NMA Host: Trainer Enter your name here © Copyright 2009 Nan McKay & Associates Earned Income Disallowance © Copyright 2008 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 NMA Host: Trainer Sammie Szabo © Copyright 2009 Nan McKay & Associates

Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 2 Welcome to Your Housing Help Session!  Today’s Topics:  Managing Your HCV Funding  Session Host: Sammie Szabo

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 3 3 Financial Management and Program Utilization

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 4 4 Financial Management and Program Utilization  HCV managers need an understanding of:  How the program is financed  Funding and leasing utilization requirements  How to use tools to track, monitor and forecast lease-up and funding dollars  How lease-up impacts administrative fees

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 5 HAP Funding Sources  What is HAP Budget Authority?  The annual housing assistance payment budget provided by HUD to a PHA for the 12- month period that begins on January 1 and ends on December 31, based on the congressional appropriations for the federal fiscal year that begins on October 1 and ends on September 30. 5

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Voucher Funding HAP Budget Authority  The PHA’s HAP budget authority for the calendar year is determined by the HUD Financial Management Center (FMC) based on appropriations.  Because the 2009 Appropriations Bill was delayed in Congress, PHA’s are currently funded based on 2008 funding levels.

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 7 HAP Funds  Estimated HAP funding amounts were disbursed for January, February, March and April. They do not represent 2009 eligibility, which based on recent appropriations should be higher than HUD will issue final funding notices to all PHAs in May.  Disbursements received are advances against the ultimate 2009 eligibility 7

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 8 8 Other HAP Funding Sources  HAP Equity = HAP funds from prior budget years  Usable HAP Equity – the amount of HAP Equity the PHA could use if it had fully leased all of its authorized units  Unusable HAP Equity – the amount of HAP Equity not available to a PHA if it is fully leased, since the PHA may not lease more units than it was authorized by HUD

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 9 9 HAP Fund Provisions  HUD is statutorily prohibited from funding overleasing  Similar to 2008, funds provided in 2009 may not be used to support unit months under lease which exceeds authorized units under contract (ACC)  HAP funds may not be used for any other purpose.

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 10 Baseline vs. Budget Authority  A PHA has to comply with two statutory requirements for voucher utilization compliance, and cannot exceed:  Baseline - # of unit months available in the year; or  Budget Authority – HAP funds authorized for the year (plus any HAP funds left from prior year). 10

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Monitoring Your HAP Funds

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Monitoring HAP Funds  Because HUD is statutorily prohibited from funding overleasing:  To maximize annual Budget Authority (BA) and ensure compliance with overleasing prohibition, the HCV manager must determine how many units their PHA Budget Authority will support.

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 13 Monitoring HAP Funds  The first step is to determine how many unit months your budget authority can support. You will need to know your PHA’s HAP Budget Authority for the year.  Example: Anytown PHA has a HAP budget authority of $5,000,000.00, $400,000 in HAP budget authority from 2008, and ACC baseline authority for 1,000 vouchers. 13

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Tracking PUC  Unit months leased (UML) is the cumulative number of units leased each month in the year to date  Example:  A unit month = 1 unit leased for one month  If the PHA had one unit leased all 12 months, the total unit months leased would be 12

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 15 Monitoring HAP Funds  $5,400,000 divided by 12,000 unit months equals $ per unit per month available for HAP.  Anytown PHA could fully lease all authorized (1000) baseline vouchers if monthly average HAP cost per unit is equal to or less than $ per month. 15

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Tracking PUC Your PHA’s actual per unit costs (PUC) may be more or less than the per unit cost available under your budget authority.  Tracking the actual PUC and actual lease-up on a monthly basis is critical to ensure you maximize program utilization and do not exceed your budget authority and baseline.

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 17 Tracking HAP  Not all PHAs have sufficient BA to fully utilize baseline.  If monthly per unit costs exceed per unit BA, your PHA cannot fully lease-up  Tracking monthly HAP expense is critical if your PHA’s per unit HAP expense is higher than your BA can support. 17

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide PUC Example – One Month  HAP costs for January $473,  Vouchers leased in January 1005  Actual PUC for January$  Annual Budget Authority = $5,000,  2008 Excess HAP = $ 400,  Available Annual HAP = $5,400,  Monthly HAP BA = $ 450,000.00

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 19 PUC Example – One Month  PHA HAP expense in January exceeds January budget authority by $23,  January PUC ($473, divided by 1005 units) = $ ($ BA per unit mo)  PHA’s budget authority of $450, can support 955 vouchers at average HAP of $ – PHA needs to reduce # of units or it will exceed budget authority. 19

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide PUC Example – Multiple Months  Total HAP Expense Jan/Mar$1,431,  HAP BA Jan/Mar $1,350,  Families leased  January 1005  February 1020  March 1012  TOTAL average  Actual PUC Jan-Mar = $ ($ UM BA)

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 21 PUC Impact on BA  In this example, the PHA must reduce program size and/or decrease monthly HAP expenses or it will run out of HAP budget authority before the end of the fiscal year. 21

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide PUC  Per Unit Cost (PUC) is ever changing. Analyzing the PUC only at the beginning of a fiscal year is a mistake you cannot afford to make.  As participants enter and leave the program & annual and interim re-certifications and rent increases are processed the PUC can and will change. The # of units your BA can support will change from month to month

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 23 Tracking Baseline Units  Because over-leasing is prohibited, in addition to HAP BA, a PHA must stay within baseline  # of ACC baseline units X 12 months equals your Annual Baseline unit months:  1000 units x 12 months = 12,000 AUM  1 unit leased 1 month = 1UM 23

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Impact of HAP BA on Lease-up  An underleased PHA may deliberately overlease near the end of the year in order to fully utilize annual funding, but will be overleased at the beginning of the next year  An overleased PHA may deliberately underlease not to exceed annual funding, but if underleasing takes place at the end of the PHA calendar your, the PHA risks being underleased at the beginning of the next year

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 25 BA vs Baseline  Lets Review Attachment 1 - Every PHA should have a tool to track units and HAP  Table 1 tracks Annual Baseline Unit Utilization to ensure PHA does not exceed 12,000 maximum unit months.  Table 2 tracks monthly HAP expenses to ensure PHA does not exceed annual budget authority. 25

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Administrative Fees Funding In addition to HAP, HUD also provides the PHA with funds to pay for the administration of the HCV program. These funds are called the administrative fee. Admin fees are the primary source of revenues for the HCV program admin expenses

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Admin Fee Funding 2008  In CY 2009 PHAs admin fees will be earned based on units leased as of the first day of each month  The FMC utilizes the lease-up data reported in the VMS on a monthly basis to determine admin fees earned by the PHA.  HUD may fund PHAs for units leased after the 1 st of the month, utilizing data in PIC

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 28 Administrative Fees  PHA’s must earn their admin fees  Fees are paid by HUD for units under lease on the 1 st day of the month  Admin Fee Schedules are set by HUD, and published annually 28

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 29 Administrative Fees  Admin Fees are paid to the PHA based on a pre- set table. For the first 600 unit months Column A of the admin fee table is utilized. For the remaining unit months, Column B is utilized. For PHA owned units use Column C  You can find the 2009 Admin Fee table at: fee2009.xls. fee2009.xls 29

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Administrative Fee Restriction  Admin fees can only be used for activities related to HCV assistance  Admin fees from 2009 funding (as well as 2004 thru 2008) not spent must be used for same purpose in following years

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Tracking Admin Fees  PHA is like any business  Can’t continue to spend more than it receives  If you can spot an adverse trend in time, you can reduce expenses

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Tracking Admin Fees  PHA must track monthly admin fee earnings vs monthly projected earnings  HUD doesn’t require PHAs to provide budget details about admin expenses  But you must know whether the funded admin fees will cover actual expenses

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 33 Admin Fees  Example:  PHA leases 1000 units in January  Column A = $70.00 – Column B = $60.00 and HUD pro-ration = 100%  PHA is paid $70.00 for first 600 = $42,  PHA is paid $60.00 for last 400 = $24,  PHA earns $66, in Admin Fee for January 33

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 34 Admin Fees  Example:  PHA leases 960 units in February  Column A = $70.00 – Column B = $60.00 and HUD pro-ration = 100%  PHA is paid $70.00 for first 600 = $42,  PHA is paid $60.00 for last 360 = $21,  PHA earns $63, in Admin Fee for January (loss of $2,400 for the month) 34

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 35 Admin Fees  Example:  PHA leases 935 units in March  Column A = $70.00 – Column B = $60.00 and HUD pro-ration = 100%  PHA is paid $70.00 for first 600 = $42,  PHA is paid $60.00 for last 335 = $20, PHA earns $62, in Admin Fee for January (loss of $3, for the month) 35

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Monitoring Tools  To maintain financial control and make fact- based decisions, you need timely and reliable information  You must monitor:  Monthly lease-up  Monthly HAP expenses (including FSS Escrow)  Financial reports

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Monitoring Tools  Monthly lease-up – best tool tracks:  Number of units awarded by HUD  Number of units estimated to be funded  Actual number of units leased  Variance betw HUD-awarded units and leased  Variance betw estimated units and leased units  Percentage of units leased for each variance

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Monitoring Tools  Monthly financial reports let you monitor:  If HAPs are higher than HUD funding due to PUC or leasing  You have less control over PUCs than leasing  If HAPs are higher than advances from HUD  If admin fees will cover actual expenses

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Monitoring Tools  Monthly financial reports let you monitor:  If actual PUCs are higher than the HUD-funded PUC level  Then you look at cost-cutting measures, such as reducing payment standards and/or subsidy standards  PHA will not receive more funds

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Monitoring Tools  Monthly financial reports let you monitor:  The ACC Reserve account balance  You don’t want to under spend budget authority by not assisting eligible families  The Admin Fee Reserve balance  This should be used for unanticipated necessary expenses, to avoid a deficit

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide FSS Monitoring Report  HCV manager should get a monthly report on FSS escrow deposits  Remember that the monthly escrow payments are paid from HAP funds and must be included in monthly HAP tracking and reporting

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Managing Funding  PHA needs the proper tools to monitor:  Actual HAP costs against HAP funding  Actual PUC against funded PUC  Actual leased units against baseline units and funded units  Then you can look at solutions

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 43 Monitoring HAP  In order to track monthly trends in HAP cost and unit months leased, an excel spreadsheet is helpful. It will allow you to input income and expenses and units leased on an ongoing basis, and analyze utilization on a cumulative basis.  Let’s review attachment 2: 43

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Status of Admin Fee Reserves  Similar to HAP, a PHA may have admin fee reserves from prior years. Changes in the admin fee reserve should be tracked  HUD doesn’t cap the amount the PHA can accumulate  PHA can use these amounts to cover future admin fee deficits

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Status of Admin Fee Reserves  If the reserve is going down, you should determine whether it’s because of periodic deficits or a long-term trend in deficit spending  One-time or period events are what reserves are for  Long-term trends need to be corrected

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Status of Admin Fee Reserves  The admin fee reserve shouldn’t be used to fund long-term expenses  For example, PHA has $100,000 in reserves  PHA added an employee at $25,000  If PHA is running at break-even, adding this employee would cause a deficit  Fee reserves would be gone in four years

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Estimating and Calculating HAP Needs

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Potential Problems & Solutions  Over leasing  The sooner utilization is under control, the sooner the “see saw” of over leasing and under leasing will cease to be such a problem  Actions - Stop voucher re-issuance and recall newly issued vouchers and consult with field office

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Potential Problems & Solutions  Over spending  Actions – In PIH and  For increases in PUC:  Review subsidy standards Payment standard is the lower of the voucher size or the actual number of bedrooms

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Over Spending  For increases in PUC:  Reduce the payment standards  PHA may set payment standards 90%-110% of FMR  Field offices can approve less than 90%

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Over Spending  For increases in PUC:  Decrease in payment standard will apply to any subsequent HAP contract  When PS decreased during term of contract, the new (lower) PS is applied at the family’s second regular reexamination after the reduction HUD can waive for good cause

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Over Spending  For increases in PUC:  If voucher size increases or decreases during the HAP term  New unit size must be used to determine the PS at the first regular reexamination following the change in unit size  Regardless of the reason for the change in family unit size

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Over Spending  Example:  Carla Morris has lived in a 3 BR (3 BR voucher)  Then her daughter and daughter’s kids moved  Carla’s voucher is now for a 1 BR  At Carla’s next regular reexamination, the PHA will use the 1 BR payment standard, even if the PHA has also reduced their payment standards

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Over Spending  Regulatory waiver requests concerning payment standards must provide justification  Include calculation used to project the shortfall:  Anticipated voucher turnover, cost savings measures, actions taken to protect “at risk” families, current rent burden, statement that the waiver will allow PHA to be within budget

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Over Spending  Further actions –  Review utility allowances  Must revise if rate changes 10% or more  Review rent to owner for rent reasonableness  Owner promotions for unassisted tenants  Rents can be reduced as early as next month  PHA could request owners to reduce rents

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Over Spending  Further actions –  Increase EIV, verification efforts, and other anti- fraud activities  Review policies on interim reexaminations  Consider interims for income increases  Review minimum rent policy

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Over Spending  Further actions –  PHA can terminate HAP contracts if funding is insufficient  Admin Plan needs to lay this out  How PHA determines which contracts will be terminated  Policies for resumption of assistance

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide  Further actions –  Review moves and portability policy  PHA may deny permission to move if insufficient funding for increased assistance  PHA may deny a move under portability that would require the PHA to pay a higher subsidy cost if PHA does not have sufficient funding and receiving PHA won’t absorb Over Spending

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 59 Problems & Solutions  Under leasing  SEMAP measures for:  Units leased at 98% (or 95%) or more, or  The percent of allocated budget authority expended during the FY was 98% (or 95%) or more  Despite funding at CY, SEMAP measures FY 59

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Problems & Solutions  Under spending  Most PHAs not funded at 100%  SEMAP – If unable to meet the % lease- up, must spent at least 95 – 98% of BA  Also, total dollars spent on HAP may affect next year’s funding for the PHA

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Problems & Solutions  Under spending  PHA should determine number of families they can afford to assist each month and compare to their actual lease-up rate  Then project monthly lease-up thru FYE  Consider historical attrition rates, current local market, and make sure projections don’t exceed CY authorized units

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Voucher Issuance Program (VIP)

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide  Provides PHAs with  An estimate of the number of vouchers to issue to optimize voucher utilization  Ability to enter ‘what if’ scenarios and see projected utilization results  Website address: Other Tools HUD’s VIP Program

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide How It Works  VIP estimates the number of vouchers to issue to  Replace monthly turnover units  Catch-up from any shortfall in year-to-date annual utilization  VIP considers  Unit months below target utilization,  Number of months remaining in the year, and  The PHA’s anticipated success rate

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Planning and Anticipating  May anticipate filling 100 “slots” with money available  You call in 100 applicants  90 actually show up  60 lease a unit  So, you may have to notify 150 applicants to fill the 100 “slots” – based on statistics

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 66 Determined Eligible Issued Voucher RFTA Waiting List Leased Page 4-55

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 67 Set-Up  PHA begins with setting up a user name and password

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Set-Up  PHA then enters  PHA ID  PHA name  Annual Budget Authority  Baseline units  The PHA also establishes “target” budget and unit utilization percents

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 69 69

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 70 VIP  PHA will also need to enter, year-to-date  Monthly number of units under lease  Monthly HAP payment amounts

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide VIP  PHA also enters historical data:  Estimated success rate  Success rate: select a period # of vouchers issued within that period # of these that successfully leased a unit Divide the successful voucher holders by the total number of vouchers issued  Convert to a percentage

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Utilize Your Units and Funding  For example:  A PHA issued 100 vouchers within the defined period  75 of those vouchers leased up  The success rate is 75%

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide VIP  PHA also enters historical data:  Average time from issuance to lease date  Review Chart  Average monthly unit turnover  Voucher holders still searching  Average anticipated HAP payments  System will calculate based on input history, if desired

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide VIP Success Rate Avg anticipated HAP Avg time iss/lease Avg mo turnover vouchers searching

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 75 VIP Demographic Adj SR Market Cond Adj SR Anticipated SR  PHA may adjust success rate for  Demographic conditions  Market conditions  Or just enter an anticipated success rate (SR)

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Available VIP Reports  Voucher Issuance Estimation  Reports Archive (you can save them)  Invitations Calculator  Will take into account the waiting list factor

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Cautions  VIP provides great data  PHA must analyze the data  Does it make sense?  What is the effect for the entire year?  Where will you begin the next year?

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide What If?  VIP allows the PHA to enter ‘what if’ scenarios and see an estimated outcome  What if HAP is higher?  What if we issue more vouchers now? What if we don’t?  PHA still must analyze the data

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Inter-Department Coordination

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Inter-Department Coordination  For years,  Finance department dealt with budgeting and year end settlement statements  Program management administered rules related to lease-up, annuals, terminations, inspections

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Inter-Department Coordination  Today, these departments must form a new partnership  Understand each other’s rules  Communicate!  TOGETHER:  Forecast funding utilization

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Maximizing Admin Resources

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Maximizing Admin Resources  As with any good business, the HCV program needs to maximize resources and cut costs  Strategies have interconnected goals:  Analyze program administration  Identify unnecessary work and simplify  Reduce costs

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Administrative Fee  Other areas impacting costs  Portability  Analyze whether to absorb or administer carefully  Meet all deadlines! Penalties include reduction in admin fees and loss of allocated units

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 85 Supporting Data for VMS, Audits and HUD Monitoring  Program Data gathered by the HCV Manager on a monthly basis is utilized by the PHA for:  Monthly VMS reporting  Annual financial reporting  Audits  HUD compliance reviews/monitoring 85

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide PHA Reporting Requirements  VMS supports information management needs of HCV program  Collects PHA data for HUD to fund, obligate, and disburse funding based on actual PHA use  Electronic submission of monthly and quarterly data

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Reporting Requirements  PHAs must comply with VMS requirements and timelines  HUD can impose a 10% penalty against monthly admin fees for failure to comply  This is a permanent reduction

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Financial Audit Requirements  PHAs are subject to independent audit  Must submit an unaudited financial data schedule (FDS) to HUD no later than 2 months following FYE  Must submit audited financial data schedule (FDS) and an Independent Public Accountant’s report no later than 9 months following FYE

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Monitoring Your HAP Funds

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide Financial Audit Requirements  Sanction  10% penalty against monthly admin fees for failure to comply  Penalty is a permanent reduction for CY and will not be reversed

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide HUD Monitoring  HUD will continue Quality Assurance reviews to ensure the integrity of PHA reported data  HUD will monitor both the over- and under- utilization of PHA Budget Authority

© Copyright 2009 Nan McKay & Associates Housing Help Sessions Managing Your HCV Funding – April 17, 2009 Slide 92 Upcoming Housing Help Sessions  05/08/09: Portability (HCV)  05/15/09: Site-Based Waiting Lists (PH)  05/22/09: Physical Needs Assessment and the 5-year Plan for Capital Improvements