1. CDBG and HOME Program Efficiencies
Making the Programs Work Better
48th Annual NCDA Conference
June 14-17, 2017 Miami FL

2. What is a efficiency?
There are various ways of defining efficiency: Examples are:
the ability to do things well, successfully, and without waste
a measure of the extent to which input is well used for an intended task or function (output)-scientific version
the capability of a specific application of effort to produce a specific outcome with a minimum amount or quantity of waste, expense, or unnecessary effort
2016

3. Measuring efficiency
Efficiency has to be measured so it can be improved. Examples of some simple measurement of efficiency:
Number of agencies monitored per staff
Admin cost per unit of housing
Reimbursement turnaround time
Underwriting turnaround time
Length of time to execute a contract or an agreement
2016

4. CDBG and HOME Program Resources Process Output Staff Admin funds
Program funds
Regulations
Policies &
Procedures
Staff Capacity
Technology
National Objective
Housing units
Low income persons
2016

5. Resources -Staffing Adequate staffing
Periodic review of staffing needs
Make changes as necessary
Think outside the box and outsource certain functions
2016

6. Resources – Admin Funds
Maximize Admin funds
Use program delivery as much as possible
Rehab and HOME Inspections
Staff directly working on the program
Admin from program income
2016

7. Resources – Program Funds
Maximize Progam funds (entitlement)
General Funds and Other funds
Maximize leverage (HOME) funds
RFP leverage ratios
Other funding sources (CDBG activities)
Providing only a certain percentage of funding for an activity
2016

8. Resources – Regulations
Regulation as a resource ensures that programs, projects and activities are all within Federal, State and local regulations
Request for proposals should include all regulatory requirements
All program staff in the office should have access and ability to find a specific regulation
Don’t forget to include all applicable notices and Home Fires
Have someone in the office who is “an expert” on a program regulation. (CDBG guru, HOME guru etc)
2016

9. Process – Policies & Procedures
Policies are principles, rules and guidelines that provide guidance to an entity taking into consideration regulations, best practices and goals of the entity.
Examples of policies:
Debt to coverage ratio of multifamily loans (Industry practice)
Maximum loan amount per unit (informed by regulations)
Maximum loan term (informed by regulations)
Equipment not eligible for funding for public facilities (informed by regulations)
Procedures are specific methods employed to express policies in action in day-to-day operations of the organization.
Examples of procedures:
Processing of Single Family Rehabilitation loans
Housing and Commercial Loan Committee procedures
2016

10. Process – Policies & Procedures II
HUD requires all jurisdictions to have policies and procedures but it also helps in ensuring efficient running of an organization
The policy must be rigid (regulatory requirements) as well as flexible (non-regulatory requirements)
Must be reviewed annually or bi-annually and when there are statutory and regulatory changes
Having a new staff in a position is usually one of the best times to review your policies and procedures for that program
Must be succinct, easily understandable and easily transferable into actions
Policies Helps in preventing external influence
2016

11. Process – Technology
Technology helps improve the way processes are carried out. This can either speed up existing processes or allow new, more flexible ways of carrying out a task.
Examples of Technology implementation
Processing single family rehab applications
Servicing single family loans/grants
Excel modeling of multifamily pro-formas
Online Applications/Request for Proposals
2016

12. Examples of Efficiency Improvements in Miami
Making all contract compliance analysts responsible for environmental clearance
Approval process – delegating some approvals while still keeping in place system checks and balances
Outsourcing of loan closing legal work
Implementation of Zoomgrants for CDBG and HOPWA Request for Proposals
Implementation of Laserfisch document retrieval system
2016

13. Questions
2016