Program and Development Opportunities for WHATT WHATT Board Retreat January 28, 2005

1. Program and Development Opportunities for WHATT WHATT Board Retreat January 28, 2005

2. Goal: Decisions on Key Organizational Issues • Increasing staff resources • Expanding board participation • Increasing financial resources • Balancing resources with activities • WHATT program expansion: Go or No Go • Development arm • Housing program contractor

3. Key Questions For The Retreat • Are recent developments and opportunities in the region a springboard for expansion of WHATT? • Should WHATT maintain itself as a membership-based advocacy organization? • How does WHATT address the mission activities versus organizational resources balance question?

4. State Of The Region:Developments & Opportunities in Housing • Town of Truckee is aggressively promoting an affordable housing component in new development and pursuing other housing initiatives • Place County pursuing inclusionary housing policies • Land dedications by Town of Truckee • Cowell Foundation wants to fund housing development in the area • Private developers/landowners interested in including affordable housing in projects • Private developers interested in partnering with WHATT

5. State Of WHATT: Accomplishments & Opportunities • WHATT has established itself as the region’s leading advocate for affordable & workforce housing • Local government interest in contracting with WHATT to operate housing program components • Land-banking: local government interest in WHATT holding land dedicated to affordable housing • Local government interest in seed funding support for WHATT • Cowell Foundation interest in seeding WHATT to enter housing development arena

6. State Of WHATT: Organizational Challenges • Imbalance between activities and organizational resources • Mission activities – e.g. advocacy, monitoring projects • Organizational sustenance: e.g. membership development • Need for additional staff • More effective engagement of board talents and resources

7. Current Strategic Options For WHATT • Should WHATT create a housing development arm? • Should WHATT contract with local government to to help operate local housing programs? • 1st time homebuyer • Compliance and monitoring

8. The Developer Option For WHATT • Start as secondary partner with larger, more experienced developer • Specialized or “niche” role in project • Advocacy role • Planning and design • Access to local or special resources • Land banking • Post development operations

9. What Does The Development Option Offer WHATT? • Unrestricted funds through developer fees • Workforce housing on the ground • Opportunity to shape affordable housing development in the region • Build organizations expertise & capacity • Establish a development track record • Access to experience, capacity & track record of established developers

10. Motivations for Development Partnerships • Local partner may be needed for community support • Access to project resources may require a local partner • Local partner may be required by local government or community (informal or formal) • Inclusionary requirements on new developments may require an affordable housing organization to be in the deal

11. What Does The Development Option Offer WHATT? • Access to experience, capacity & track record of established developers • Limited development role means less work • Senior partner does ‘heavy lifting’ • Less risk than going it alone • Flexibility regarding WHATT staffing up for development • Allows for transition to full-scale, stand-alone developer

12. What Are The Challenges of the Development Option? • WHATT will have to share control with senior partners • Some level of risk inherent in any real estate development • Reputation - WHATT will share the blame for failure • Organizational restructuring • Expansion of staff

13. Current Resources For The Development Option • Cowell Foundation is interested in seed funding WHATT to become a developer • Local government may have capacity development and seed funding available • Note: if resources are not available WHATT does not have to proceed with the Development Option

14. Development Option Questions • What are the reservations or concerns regarding this option? • What are the advantages of this option? • Basic Go or No-Go? • Contingent On?

15. Housing Programs Contractor Option • WHATT contracts with local governments to help operate homeownership programs • WHATT would perform specific program functions or components • Typical programs could include: • First Time Homebuyer Programs • Inclusionary Housing - compliance and monitoring

16. Housing Program Contractor – Likely Activities • Marketing and outreach of programs • Preparation and distribution of information materials • Conducting training and orientations for participants • Housing counseling • Preparation, screening and ‘Prequalifying of participants • Monitoring occupancy compliance in inclusionary units (electronic, site visits)

17. Housing Program: Challenges For WHATT • Splitting staff between programs can create conflicting demands on staff and resources • Requires recruiting and retaining professional/qualified staff • Limited labor market • Need to invest in staff development • Programs will require administrative, reporting and fiscal management systems be established

18. Housing Program: Challenges For WHATT • Contract or reimbursement method can be critical • Flat rate contract – opportunity for surplus • Cost reimbursement contract – break even

19. Housing Program: Opportunities WHATT • Contributes to mission • Source of revenue • Allows for splitting of staff costs • 50% FTE: housing programs • 50% FTE: development • This can be important when there is either: • Not enough work for a FTE position in one area; or – • Not enough funding to support a FTE dedication position in one area

20. Current Resources For The Housing Programs Option • Cowell Foundation seed funding • Town of Truckee has expressed interest in contracting housing program functions to WHATT • County of Placer has no compliance system in place in eastern half of Placer County

21. Housing Program Option Questions • What are the reservations or concerns regarding this option? • What are the advantages of this option? • Basic Go or No-Go? • Contingent On?

22. WHATT At A Success Juncture • WHATT success has increased scope of mission activities • Outstripped staff resources • Tension between maintenance and mission activities • Current staff resources probably maxed out • Solutions probably lie in: • Better utilization of board talents and resources • Increase of organizational resources • More Staff • More Money

23. Balancing Resources and Mission Activities: • Basic resources to accomplish the mission: • Money • Staff • Board • Balancing Act: • Do less – reduce mission activities • Employ existing resources more productively • Get more resources

24. The Board Continuum • Managing and Oversight Board • Larger, established organizations • Organizations with limited, specialized or nonresource intensive missions • Working Board • Start-up and smaller organizations with limited resources • Imbalance between organizational mission activities and organizations resources

25. Managing and Oversight Board • Board provides strategic direction • Exercises oversight to ensure: • Mission is being accomplished • Management and finances are sound • Mission activities and organizational maintenance activities done primarily by staff • Very limited involvement by board • Board participation in specialized or “high value” activities

26. Working Board • Board provides strategic direction • Exercises oversight to ensure: • Mission is being accomplished • Management and finances are sound • Mission and organizational maintenance activities shared between staff and board • Staff still does bulk of work

27. Key Organizational Questions for WHATT • Scale Back Option: should WHATT reduce the scope of activities • Efficiency: can WHATT employ staff and board resources more productivity • Can WHATT increase its financial resources to hire additional staff or outsourced support? • Can the talents and resources of the board be better engaged by WHATT and if so, how?

28. Key Organizational Questions for WHATT • Where is WHATT at on the working versus a management and oversight board continuum? • What direction should WHATT move toward: working versus a management and oversight board • Can the talents and resources of the board be better engaged by WHATT and if so, how?

29. Thank You