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

2. Gainers and Decliners Under New Operating Subsidy Rule

3. Gainers and Decliners Under New Operating Subsidy Rule

4. 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."

5. 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%

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

7. Stop-Loss Guidance
Frequently Asked Questions – Stop-Loss Submissions (October 2, 2006)
Updated FAQs (December 29, 2006)
Coming Soon – Helpline and address where you can direct questions
Check Asset Management website frequently for updates.

8. 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

9. 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

10. 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

11. 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

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

13. 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

14. 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