WEBINAR: Managing Scattered Site Rental Programs

Transcription

1 WEBINAR: Managing Scattered Site Rental Programs

2 Sponsored by NeighborWorks America Stable Communities Initiative 2

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4 Our Speakers Moderator: Marcia Nedland Fall Creek Consultants Ithaca, New York Welcome: Sarah Greenberg NeighborWorks America Washington, DC 4

5 Our Speakers Panelist: Bill Brett Homeport Columbus, Ohio Panelist: Sandra Conrad Ithaca Neighborhood Housing Services Ithaca, New York 5

6 Our Speakers Panelist: Wendy Smith Capital Access Philadelphia Panelist: Doug Harsany Harsany & Associates, LLC Sunbury, Ohio 6

7 Ask Questions At the top of the presentation window, you ll see a green pull down menu: pull down and click on the Chat button and a chat window should appear to your right. Type your question in the bottom of that window and choose the option of sending To Everyone, and hit your Return key to send. The moderator will ask your questions at the end of the presentations (participant lines are muted). 7

8 For More Information This presentation and other resources will be available for download at 8

9 Welcome Sarah Greenberg Senior Manager, Community Stabilization NeighborWorks America Washington, DC 9

10 Objectives of the Webinar Provide guidance and next steps for nonprofits considering a scattered-site rental program Share special challenges and solutions, and business models of scattered site rental programs Present the new Scattered Site Rental Toolkit 10

11 Scattered Site Rental Toolkit 11

12 Agenda 2:00 Welcome Bill Brett, Homeport Sandy Conrad, Ithaca NHS Doug Harsany, Harsany & Associates Wendy Smith, Capital Access Audience Q&A Additional Resources Adjourn 3:30 Eastern 12

13 Panelist Bill Brett, Homeport Columbus, Ohio 13

14 HOMEPORT by Columbus Housing Partnership (CHP) Copyright 2009, NeighborWorks America, Inc. All rights reserved Units in Portfolio 400 units Scattered Sites All located within the beltway of Columbus, OH Low Income Tax Credits (LIHTZ) All 15 year lease/option NeighborWor ks AMERICA

15 Mission Understand the focus of the organization! Neighborhood Revitalization Affordable Housing for: Families Special Needs Seniors Know the strengths of the organization! Develop a strategy for expanding the impact of the organization! Continue to do what you do well! Am Copyright 2009, NeighborWorks America, Inc. All rights reserved. NeighborWork s AMERICA

16 DECISIONS! DECISIONS! Is this something we really want to do? Do we understand and are we willing to take the risks? Are we being realistic about the results? Is the timing right? Do we have the right people? Am Copyright 2009, NeighborWorks America, Inc. All rights reserved. NeighborWork s AMERICA

17 DECISIONS! (cont.) Are we willing to give them the freedom, responsibility, and authority necessary for entrepreneurial success? Do we have staying power? ($, time, psychic energy) Are we willing to make mistakes? Am Copyright 2009, NeighborWorks America, Inc. All rights reserved. NeighborWork s AMERICA

18 Capacity Is Affordable Rental Housing Development a current line of business? Is Property Management a Current Line of Business? Am Copyright 2009, NeighborWorks America, Inc. All rights reserved. NeighborWork s AMERICA

19 Targeting Acquisitions What is the overall neighborhood condition? Community Revitalization? Is this an ongoing strategy that will continue for multiple projects Where to start? (From an area of strength?) Condition, Location/Proximity, Market Need Am Copyright 2009, NeighborWorks America, Inc. All rights reserved. NeighborWork s AMERICA

21 Financing Type of Financing Number of Financing Vehicles Ability to add and subtract properties from financial vehicles Terms and Conditions Reporting Am Copyright 2009, NeighborWorks America, Inc. All rights reserved. NeighborWork s AMERICA

22 Rehab/New Construction Standard What affects your Standard? Market Demographics Housing Stock Energy/Utility Costs, Health Issues, Green Goals Long Term Capital Needs Requirements Financing Local Codes Historic Requirements Regulatory Requirements Am Copyright 2009, NeighborWorks America, Inc. All rights reserved. NeighborWork s AMERICA

23 Managing the Properties 1. Management Planning and Review 2. Marketing and Occupancy 3. Management of the Physical Asset 4. Fiscal Management 5. Risk Management/Security 6. Personnel and Staffing 7. Resident Relations 8. Support Services Am Copyright 2009, NeighborWorks America, Inc. All rights reserved. NeighborWork s AMERICA

24 Management Plan Ownership Objectives Regional/Neighborhood Description Marketing Strategy Resident Selection Plan/Criteria Rent Structure/Lease Property Maintenance Financial Management Rent Management Administrative Responsibilities Communication/Decision-making Am Copyright 2009, NeighborWorks America, Inc. All rights reserved. NeighborWork s AMERICA

25 Marketing & Occupancy Owner s Objectives Property Analysis Know the Competition Community Outreach and awareness Signs Pros and Cons (scattered site) Fair Housing Am Copyright 2009, NeighborWorks America, Inc. All rights reserved. NeighborWork s AMERICA

26 Marketing & Occupancy Selling your Property Leasing Your Property Knowing Your Property Measure Marketing Effectiveness Create Effective Reporting Am Copyright 2009, NeighborWorks America, Inc. All rights reserved. NeighborWork s AMERICA

28 Orientation Landlord/Tenant obligations under the lease Security deposits Rent payment Late fees Renter Insurance Key Policy Subletting Am Copyright 2009, NeighborWorks America, Inc. All rights reserved. NeighborWork s AMERICA

29 Orientation Maintenance and repair responsibilities Use of Equipment Energy conservation practices Grievance and complaint procedures House rules and regulations Security and emergency procedures Lead paint notices Pet policies Am Copyright 2009, NeighborWorks America, Inc. All rights reserved. NeighborWork s AMERICA

30 Proactive vs. Reactive Maintenance Proactive Maintenance Properly planned and scheduled in advance Maximizes time, labor, and materials Helps control costs Reactive Maintenance Reaction to a problem or emergency situation Often results in wasted time, energy, people, and materials Also known as tenant-driven maintenance 30 Am Copyright 2009, NeighborWorks America, Inc. All rights reserved. NeighborWork s AMERICA

31 Reserves for Replacement Money set aside for the replacement of a property s short-life items and/or for capital improvements Not always included; depends upon owner requirements and the property s tax situation 31 Am Copyright 2009, NeighborWorks America, Inc. All rights reserved. NeighborWork s AMERICA

32 Personnel and Staffing Staffing Plan In-house vs. contract positions Job Descriptions Training Benefits FT vs. PT Am Copyright 2009, NeighborWorks America, Inc. All rights reserved. NeighborWork s AMERICA

33 Centralized vs. Decentralized Identify the appropriate functions Set up appropriate systems Communicate! Communicate! Communicate! Am Copyright 2009, NeighborWorks America, Inc. All rights reserved. NeighborWork s AMERICA

35 Panelist Sandra Conrad Ithaca Neighborhood Housing Services Ithaca, New York 35

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37 To provide affordable quality housing to families with low to moderate incomes. To maintain current housing stock and expand to augment our current portfolio, while revitalizing and stabilizing neighborhoods.

38 INHS formed in 1976 with Rehab program 1981 INHS Board saw need for rental housing Remaining housing stock deteriorated multifamily rental properties 70% of residents were renters Poor conditions undermined values of neighboring housing stock Student demand created expensive housing Concerns of resident displacement

39 164 Residential Units 23 Properties Units within City limits 3 mile radius Older Multifamily buildings 3-5 units Properties at various stages of rehab. Several funding sources conventional mortgages, CDBG, UDAG, HOME Many different income restrictions

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41 Property/Asset Manager Assistant Property Manager Rental Associate Maintenance Supervisor 3 Maintenance Technicians Increased staffing may be required as we expand our scattered site portfolio.

42 Improve program visibility in the community Stabilizing neighborhoods Mix of income levels within communities Fewer conflicts - # units per building Residents take more ownership More control of utilities, less cleaning & maintenance of common areas.

43 Requires more site visits & maintenance time Potential for larger inventory costs Capital costs larger/ Competition for capital funds No Residential cohesiveness Site issues are more varied [units, amenities] More difficult to track building, resident and income requirements Many different funding sources & regs.

44 Higher visibility throughout the community Maintain high standards at each property to keep competitive edge. Excellent reputation for property mgmt Tight control on income and expenses Maintain a Reserve fund to augment grants Refine Asset Management techniques

45 Panelist Doug Harsany Harsany Associates Sunbury, Ohio 45

46 Developing the Scattered Site Rental Toolkit

47 Sources of Information Personal Experience Literature Review Visits and calls with practiced agencies

48 Developing the Framework How the business plan model originated

49 Goals A comprehensive model Keep it practical and personal Ensure accuracy and quality (vetting of material) Make it widely available

50 Panelist Wendy Smith Capital Access Philadelphia, PA 50

51 Ask Questions At the top of the presentation window, you ll see a green pull down menu: pull down and click on the Chat button and a chat window should appear to your right. Type your question in the bottom of that window and choose the option of sending To Everyone, and hit your Return key to send. The moderator will ask your questions at the end of the presentations (participant lines are muted). 51

52 Scattered Site Rental Toolkit 52

53 Training Opportunities on This Topic NeighborWorks Training Institute AM230 Property Management for Scattered Site Rental Housing Next Offered in Washington, DC Week of 12/12 53

54 For More Information This presentation and other resources will be available for download at 54

55 Thank You to Our Speakers Bill Brett, Homeport/Columbus Housing Partnership Sandra Conrad, Ithaca Neighborhood Housing Services Doug Harsany, Harsany & Associates Wendy Smith, Capital Access 55

56 Sponsored by NeighborWorks America Stable Communities Initiative 56

57 Thank you! 57