April 6, 2006 San Antonio Housing Authority

BOARD OF COMMISSIONERS SITE-BASED MANAGEMENT (Asset Management) THURSDAY, APRIL 6, 2006 April 6, 2006 San Antonio Housing Authority

Operating Subsidy Comparison Requested to Actual 2002 to 2006 Funding gap In Millions Year Requested Funding Actual Funding April 6, 2006 San Antonio Housing Authority

Recognizing this growing funding discrepancy, in September 2005, HUD issued the Final Rule on the Operating Fund program. Subpart H 990.255 states: “PHAs shall manage their properties according to an asset management model, consistent with the management norms in the broader multi-family management industry” April 6, 2006 San Antonio Housing Authority

The rule says… PHAs shall also implement these essential components of site-based management: • Project based management • Project based budgeting • Project based accounting April 6, 2006 San Antonio Housing Authority

Site Site HUD Site SAHA Central Office Transition To Site-Based Management Today: Funds April 6, 2006 San Antonio Housing Authority

Site Site Site Site HUD Site Site SAHA Central Office SAHA Central Office HUD Transition To Site-Based Management Today: Funds New Model: Services Funds Fees April 6, 2006 San Antonio Housing Authority

Transition To Site-Based Management The goal of site-based management is to model private sector property management, and provide appropriate mechanisms for monitoring operational and financial performance at the site level. April 6, 2006 San Antonio Housing Authority

Transition To Site-Based Management Properties will either stand alone or be grouped as a site, according to PHA’s discretion and HUD’s approval. • HUD will annually review performance and financial reports to ensure each site’s sustainability. Financial and management decisions will be made at the site level. Property managers will be empowered to perform numerous management activities. April 6, 2006 San Antonio Housing Authority

Transition To Site-Based Management Present Property Management: Leasing Lease Enforcement Rent Collections Annual Recertification Marketing April 6, 2006 San Antonio Housing Authority

Transition To Site-Based Management Site-Based Management: Leasing Lease Enforcement Rent Collections Annual Recertification Marketing Accepting Pre-applications Eligibility Repairs & maintenance Purchasing Security Resident services Property improvement planning and forecasting April 6, 2006 San Antonio Housing Authority

Transition To Site-Based Management Generally, the overhead expenses must be funded through a management fee charge to the sites. The management fee pays for services such as: • Technology • Human Resources • Corporate Relations • Finance • Risk Management • Procurement oversight • Property Management • supervision • Executive • Board of Commissioners HUD has calculated the management fee at $43.11 per leased unit month. April 6, 2006 San Antonio Housing Authority

Transition To Site-Based Management Potential Impact on Our Customers SERVICES: This new funding formula may limit funding available for services beyond the essential property management functions. For example, our customers may experience a reduction in the following services: Elderly and disabled transportation Case management (Elderly/Disabled) Scholarship and Perfect Attendance Programs April 6, 2006 San Antonio Housing Authority

Transition To Site-Based Management Potential Impact on Our Customers INCOME MIX: Currently 81% of SAHA’s new admissions in the public housing program are at 30% of AMI or below. HUD’s regulations provide that only 40% must be below 30% of AMI. PHAs may need to revise a site’s income mix (house fewer extremely low income families) to increase revenues. Each site must, at a minimum, break even financially; therefore, revenues and expenses will need to be managed to reach this objective. With these growing limitations on subsidy, programs such as Moving To Work and Family Self-Sufficiency become increasingly important tools to move residents up the income ladder, enabling them to pay more rent. April 6, 2006 San Antonio Housing Authority

Transition To Site-Based Management Potential Impact on Our Employees As the transition to site-based management progresses, SAHA’s workforce will be streamlined through attrition. Moving forward, SAHA employees will need to be willing to: • Relocate to community sites • Increase efficiency • Expand skill sets • Multi-task • Cross train • Be flexible April 6, 2006 San Antonio Housing Authority

Transition To Site-Based Management HUD Notice PIH 2006-15 (HA), published March 22, 2006, established some guidelines and fast approaching deadlines for the implementation of site-based management. As deadlines near and PHAs raise questions, we can likely expect more information to be provided by HUD. Departments and workgroups throughout SAHA have been working diligently to establish plans and budgets to transition to this new management model. April 6, 2006 San Antonio Housing Authority

Transition To Site-Based Management Milestones January 1, 2006 All PHAs shift to a January 1 HUD funding date April 21, 2006 Sites (groupings) entered into Public and Indian Housing Information Center (PIC) May 1, 2006 SAHA begins rolling sites into site-based management, beginning with Alazan-Apache Courts, Woodhill Apartments, Homestead Apartments, Towering Oaks and Courtland Heights. June 23, 2006 HUD approval/disapproval of groupings July 1, 2006 SAHA begins transition to site-based accounting October 1, 2006 All PHAs must be compliant with project-based accounting provisions July 1, 2007 SAHA must be fully implemented with all asset management provisions for FY’08 (July 1, 2007- June 30, 2008) April 6, 2006 San Antonio Housing Authority

Transition To Site-Based Management Site-based management represents a significant shift in the manner in which the industry operates. We will keep all of stakeholders informed as this process moves forward. April 6, 2006 San Antonio Housing Authority

April 6, 2006 San Antonio Housing Authority