Project Directors Best Practices Training

1. Project Directors Best Practices Training NCALL Research, Updated October 2008

2. Throughout this slide presentation, NCALL’s recommended “best practices” will be notated with a *BP.

3. The Grantee and Rural Development Relationship

4. The Grantee and Rural Development Relationship • *BP Maintaining a good relationship with Rural Development is one of the most important aspects of a successful program • Partner to achieve goals

5. Ingredients for a Successful Relationship • Respect • Communication • Appreciation • Common Goals • Courtesy • Mutual Commitment • Understood Expectations • Trust

6. *BP In order to keep the lines of communication open, hold regular meetings with Rural Development. These meetings: • Reinforce the concept of Rural Development in the advisory role • Provide practical methods for resolving and preventing problems • Improve Rural Development’s staff capability in monitoring 523 grants

7. Quarterly Review Meetings • Will be discussed later • Weekly discussions • When will dockets be turned in • When will checks be signed • Suggestions of land or clients • Participant, supplier or subcontractor problems • Monthly meetings • New ANs • New policies • Review progress • Discuss pertinent subjects

8. Grant Basics

9. See Guide for Definitions of: • Mutual Self-Help • Participating family • Technical assistance

10. Grant Approval • RD will execute 1940-1 Request for Obligation of Funds • Initial advance requested on 440-57, Acknowledgement of Obligated Funds Check Request • Amount here should cover remainder of first month and second month • Subsequent requests cover one month only

11. Grant Closing • Grant closed on date Grant Agreement is executed • No expenses can be charged before that date • Rural Development Manager authorized to execute Grant Agreement

12. Grant Agreement • Very important document • Be aware of the requirements and terms in agreement • Take time to read and understand it

13. Grant Closeout Procedures • Construction • Must be completed before closeout • RD and local officials do final inspections • Certificate of Occupancy issued • Materials removed from lots • Landscaping complete

14. Equipment • All equipment must be accounted for • Lease and inventory records closed out • Financial Report • Report and audit submitted within 90 days • Complete accounting of grant funds • Refund to RD any unused funds • Staff • Depends on conclusion & continued employment

15. Contracts/Consultants • Review and closeout agreements • Program Reports • Submit all reports to RD and T&MA Contractor • 502 Accounts • Closeout and audit • Disposition of Records • Files should be kept, accessible to Rural Development • Retain for 3 years

16. Program Criteria

17. Program Criteria • Mutual Self-Help Housing Program has certain ideals that must be maintained • Participant labor tasks • TA Cost • Production • Service to VLI • Modest housing • Sweat equity

18. Participant Labor Tasks • Participants required to perform 65% of tasks, can do more • Tasks broken down in Exhibit B-2 • Skimping here cheats program and participants • Discuss substitute labor • Use volunteers sparingly

19. Technical Assistance Cost • Keep track of TA cost • Used to judge effectiveness and efficiency of organization • Stay within TA cost agreed upon • There is no more money available

20. Production • Build the number of homes in grant agreement • Keeps organization operating within TA cost • Grantees judged on accomplishing grant requirements

21. Service to Very Low Income • Regulation requires service to at least 40% VLI • Can be harder to qualify • These households can greatly benefit • Make it a priority • Grant judged on this requirement

22. Modest Housing • Must be modest, safe and sanitary • Prohibited features: • In-ground swimming pools • Structures designed for income producing facilities • Lot size cannot be subdivided • Cost of property cannot exceed Rural Development loan limit • Modest plans easier to build • Provides long-term affordability • Less expensive to maintain • Stretches 502 dollars

23. Equity • Participants expect to save money • Crucial to see significant savings • More than one way to save: • Participant labor • Bulk purchasing • Accurate cost estimates • RD may enact equity requirement

24. Grant Management

25. Management Basics • There are 5 basic functions of management • Planning • Setting goals and objectives, policies, procedures and plans • Thinking before acting • Organizing • Decides how the work will be divided and accomplished

26. Staffing • Task of selecting orienting and training employees • Directing • Guiding, teaching and supervising subordinates • Controlling • Determining whether or not plans are being met • Correcting deviations and shortcomings

27. Grant Oversight • Success depends on continuous evaluation • Track financial status and program operations • Recognize when spending and progress are out-of-sync • Determine if a modification is necessary

28. Key benchmarks – recruitment, land, construction, finances • Review monthly fiscal report • Create and review construction and recruitment schedule

29. Monthly Activities Schedule • Should have a monthly activities schedule • Implementation schedule • Chart that breaks down process into specific steps (recruitment, loan packaging, construction) • Predictor of progress • Tool to track progression • Critical Path Method • Shows schedule graphically • Monitor on a regular basis

30. Possible Problems • Problems can be overcome with planning and direction • *BP Do not close the grant until the construction can begin within 30 days • Recruitment is a continuous process • Keep searching for land • Program created with beginning & end • Plan submission of next grant application

31. Staff Meetings • Weekly staff meeting is effective program management tool • Review weekly program objectives w/ staff • Make sure to set aside time

32. Follow consistent pattern • Staff should share progress • Review previous week • Identify any problems • Discuss needed adjustments • State this week’s objectives • Monthly, establish objectives • Adjust production or expenses

33. Construction Staff Meetings • If construction staff cannot attend weekly staff meeting hold construction meeting • Discuss: • Materials needed • Inspection scheduled • Delivery problems • Subcontractor schedules and problems

34. Self-Help Participant Labor • Special tools needed • Construction problems • Review invoices and delivery slips • Check the cost control journal of each participant • *BP Meeting can be designed as time for Construction Supervisor and Bookkeeper to exchange delivery slips and CS must approve all invoices

35. Grant Modification • Sometimes programs get off schedule • Problems must be assessed • If problems cause a change in deliverables, expectations need to be revised • State Director may authorize the Rural Development Manager to execute grant extension • Need has to be justified

36. Grant extensions need to be no more than one year • Future performance needs to be based on a workable plan • Analyze what caused problems

37. A Modification May Be Needed If: • Reports and observation show progress lagging far behind goals • Difficulty recruiting eligible participants • Program criteria changes mid-stream • Significant over or under-spending the TA grant budget • Inability to secure or develop land for future groups • Changes in the market being served

38. The Modification Format • Give full commitment • Board of Directors should be notified & play role in problem solving • Notify Rural Development • Provide in depth analysis • Compare planned and actual progress • Assess magnitude of the problem • Develop list of realistic strategies • Select best strategy • Implement recovery strategy

39. Assemble amendment request package • Include the following information: • Narrative description of the situation, assessment, adjustments necessary • Rural Development amendment form 1944-I, Exhibit C • Revised construction schedule • Expected results and impact

40. Avoiding Future Modifications • Project budget as accurately as possible • Project time frames realistically • Start groups on time, as projected • *BP Keep additional applicants on standby • Maximize the building season • *BP Keep group sizes adequate to make them efficient • *BP Limit grant spending during slow periods • Maintain strong enforceable subcontracts

41. Building Group Membership and Labor Agreement • *BP Sample recommended agreement included asAttachment 3 • Agreement between families and grantee • Sets up expectations • Lays out rules • Enforcement of agreement is essential to success of group • Be consistent • Do not show favoritism

42. Land Development • Key ingredient to the program • Approach the search in an organized and systematic manner • Controlling land is critical • Many other activities depend on it • Interim financing may be necessary • 523 funds may not be used to option or purchase land • Contact RD for ideas on where to look

43. Land Survey Criteria • Land must be in a rural area • Lot size – can not be subdivided • Roads – contiguous to and must have direct access to a street, maintained road or driveway, must be paved or all weather • Water – approved well or public central water system • Sewer – approved public sewer or septic system • Site approval – State Director delegate site approval responsibility to appropriate person

44. Land Survey Resources • 7CFR Part 3550 • 1924-A • 1924-C • RD Community Development Manager • Health Department • County or City planner, engineer, or city planner • Soil Conservation Service Soils Book • County Court House, Tax Office, Recorder of Deeds • Utility Companies

45. Land Survey Process • Preparing a site search map • Identify land that is completely ineligible • Identify and plot locations with desirable features • Plot drawbacks • Talk to county governments or local universities to help with survey process • Windshield survey – review sites for: • Topography, flood plains, erosion • Access to public roads, vegetation, existing structures • Unique features

46. Land analysis form • Investigate ownership • Check into tax records • Assume that every parcel is for sale • Complete form, Attachment 6 • Selecting the site • Assess suitability of the location • Check zoning • Look for community facilities • Make sure it fits RD guidelines • Would you want to live there? Why or why not? • Assess physical characteristics • Determine acquisition and development costs

47. Optioning vs. Purchasing • Option agreements • Contract between seller and potential buyer • Buyer not obligated to buy, seller obligated to sell • Options should be between seller and participant • Sample Option in Attachment 5 • Option language in Attachment 6 • Purchasing land • Grantees can purchase land for later resale to participants • Can be beneficial when purchasing multiple lots • 523 funds cannot be spent for this purpose • Interim financing necessary

48. Interim financing • No single pot of money available • Seller financing may be an option • AHP, CRA, CDBG, HOME, Housing Trust Funds • HAC • Other private corporations or foundations • See NCALL’s Funding Sources Guide for more information

49. Required Reports and Meetings

50. SHARES • Self-Help Automated Reporting and Evaluation System • Internet ready application • Tracks, manages, evaluates and reports on program status • Enter data on regular basis • RD reviews information • Used for monitoring, reporting, statistical information • See SHARES Manual