Introduction to Property Management in MHSA Supportive Housing: Coordination is the Key

1. Introduction to Property Management in MHSA Supportive Housing: Coordination is the Key MHSA Housing Program Operations Technical Assistance Call February 3, 2010www.csh.org

2. Agenda • Areas of Responsibility • Forms of Property Management • What’s Different for Supportive Housing • Key Principles for Success • Putting Principles into Practice • Coordination is the Key

3. Areas of Responsibility

4. Maintenance Tenant Selection Fiscal Management Operations Fair Housing Components of Property Management

5. Key Areas of Responsibility • Tenant Screening, Selection, and Move-In • Leases, Lease Enforcement, and Rent Collection • Reasonable Accommodations • Safety and Security • Maintaining the Physical Plant

6. Forms of Property Management

7. Forms of Property Management • Project sponsor owns the project or leases the units and provides the property management. • Project sponsor owns the project but contracts for property management services from a property management company. • Project sponsor leases units from a private property owner who continues to manage the units.

8. Sponsor Provides Property Management Pros: • Sponsor has direct control over property management. • Ensures property management follows core principles of sponsor (is “mission-driven”). • Allows for streamlined operations. • Can be more cost effective.

9. Sponsor Provides Property Management Cons: • Sponsor may not have capacity or expertise to perform property management functions. • Creates challenges for differentiating supportive services delivery from property management.

10. Contracting for Property Management Pros: • Ensures property will be professionally managed. • Easier to clarify roles between supportive services and property management staff.

11. Contracting for Property Management Cons: • Challenge of finding a property management company who will fully support sponsor’s mission and adjust their practices. • May be more expensive.

12. Sponsor Leases from Owner Who Provides Property Management Pros: • Can be very cost effective. • Ensures that property management meets the owner’s expectations. • Functionally separates service provision from property management.

13. Sponsor Leases from Owner Who Provides Property Management Cons: • Owner must support the sponsor’s mission. • Sponsor has less control over how property management is performed. • Sponsor may spend time mediating disputes between tenants and landlord.

14. What’s Different for Supportive Housing?

15. Tenant Selection, Screening, and Move-In • Supportive Housing starts with a target population. We want to serve the tenants many “private” landlords would deny • Marketing and screening may be governed by federal and other regulations • Property Management and Services need to work together to “Screen In” those who will benefit from the housing • Tenants may need particular assistance in the intake and move-in process

16. Lease Enforcement and Rent Collection • Property Management policies and procedures should support the underlying mission of the housing project • Evictions are a last resort, when all other attempts to resolve a situation have failed • Response to tenant behavior is coordinated with Support Services

17. Reasonable Accommodations • How is requirement to accommodate different for supportive housing providers? • Federal funding will often impose a higher standard for accommodation • Marketing plans may need to be very specific about accommodations offered • Supportive housing providers are in the business of housing people who need extra assistance: Their response should be characterized by compassion and flexibility!

18. Safety and Security • MHSA Housing will have a higher concentration of people with mental illnesses and co-occurring disorders than market rate housing • People come to the housing with a variety of experiences that may heighten their fears • Some tenants may be prone to victimization • Support services are available to assist with many safety concerns, but this requires coordination • There is a high expectation that all staff in supportive housing will be trained in these areas

19. Maintaining the Physical Plant • An effective property manager will have a “system” for ensuring that building maintenance and repair are addressed on a routine basis. • Tenants take better care in housing that is clean and well maintained.

20. 3 Key Principles for Success

21. Three Key Principles • Property Management Supports Mission-Driven Housing • Importance of Clear Roles and Responsibilities • Recognize Overlap and Built-in Tension Between Roles

22. Key Principle #1 Property Management Supports Mission-Driven Housing

23. Mission-Driven Property Management • “Double Bottom Line” • Commitment to success of community and each of the residents residing in the building • Commitment to coordinate communication between services, management and tenant orgs

24. Mission-Driven Property Management • Key Practices: • Development and enforcement of house rules • Collaborative approaches to tenant selection and screening, move-in, orientation and crisis management • Commitment to coordinate communication between services, management and tenant-led organizations • Resident councils • Creation of job opportunities for tenants • Evictions and problem-solving

25. Key Principle #2 Importance of Clear Roles and Responsibilities

26. Clear Roles and Responsibilities • Outline clear roles • Establish forum for discussing re-negotiating roles/responsibilities

27. Key Principle #3 Recognize Overlap and Built-in Tension Between Roles

28. Roles and Challenges Social Services I just want to help! Property Mgt Show me the money! Common Goal: Keeping Tenants Housed requires that we approach problems from all angles. Goal: Provide the tenants the support they need to reach their fullest potential and to keep the building in good shape, physically and financially

29. Coordinating Management and Services • Supportive housing = coordinated property management and supportive services functions • Collaborative relationship is essential • Competing forces • Financial demands of the building • Security of larger tenant community • Needs of individual tenants

30. Areas of Overlap • Areas of Overlap Between Property Management and Supportive Service Delivery • Intake: Tenant Selection and Interviewing • Orientation of Incoming Tenants • Rent Payment and Arrears • Dealing with Disruptive Behaviors • Procedures in Crisis • Tenant Grievance Procedures • Tenant Council • Community Building

31. Embracing Good Tension • Respect different roles of each partner • Understand all roles are necessary and important for well-managed building • Acknowledge and use built-in tension between roles and functions to ensure stability and a sound asset

32. Key Goals of Staff • What are the key goals of supportive service staff? • What are the key goals of property management staff? • What goals do all staff have in common and mutually support?

33. Putting the Principles into Practice

34. Putting Principles into Practice • MOUs or contracts between partners • Guiding principle statement that spells out the working approach • Carefully select, train, support, and supervise social service and property management staff • Written job descriptions clearly defining roles • Schedule regular communication • Give staff parallel status and authority • Written procedure for resolving disagreements

35. Coordination is the Key

36. Traditional vs. Supportive Housing Property Management Traditional Rental Housing • The management company makes all decisions regarding lease violations and evictions. • The management company is solely responsible for low vacancy rate and rent collection. • The management company works with resident to make payment plans. Supportive Housing • Collaboration between mgmt co. and service provider regarding lease violations and evictions. (At very least communication before acting) • Mgmt company works with service provider to maintain a stable housing environment, turnover should be predictable. • Service provider involved with payment plans, and “contracts” to maintain housing.

37. Keep Lines of Communication Open • Understand each other’s roles and responsibilities • Understand the program and funding source missions and goals (why are you all here?) • Schedule regular meetings to discuss policies, procedures, and resolve conflict • Establish clear decision making process and clear lines of authority within and between property management and social services • Provide joint training and retreats for team building Source: HUD

38. Tools and Resources • Operations Manual • If your property does not have one, develop one! • CSH has a template • Contact and collaborate with other supportive housing managers working with similar populations and funding • Outlines how you, service provider, and owner are going to work together • Provides standard process for handling situations that arise

39. For More Information Go to www.csh.org Or www.cimh.org/Services/MHSA/MHSA-Housing