U.S. Department of Housing and Urban Development Community Planning and Development NSP Problem Solving Clinic 2012 Troubleshooting Program Implementation Issues
Purpose Our Focus Today: Key Challenges to Program Implementation Interactive Case Studies & Discussion
Top Concerns? What are your top challenges in implementation at home?
Top Concerns? Subrecipient / Developer Roles What are your top challenges in implementation at home? The Data
The Market Challenge Round 1 5
Do We Understand the Market? Why can t we find properties to buy Competition Low inventory No cooperation from sellers Out of the price range Target area too small
Do We Understand the Market? Why won t properties sell? No qualified buyers Neighborhood condition Type of property Sales price Affordability period and lien requirements
How Can We Sell or Rent Units? What can we do to enhance sales? Cut the price Add amenities Use a realtor Market, market, market Identify partners
Other Strategies to Occupy Units Lease purchase Conversion to Rental Project Based Subsidies
Program Redesign Challenge Round 2 10
Does My Program Need to Change? What Problem was my Program Designed to address Neighborhood decline due to foreclosed or abandoned single family homes? Neighborhood decline due to foreclosed or abandoned multi-family developments? Neighborhood decline due to foreclosed/abandoned subdivisions?
Activities And Goals Acquisition/substantial rehab/resale Acquisition/minor-moderate rehab/resale Acquisition/rehab/rental Acquisition/rehab/lease purchase Metrics Time Frame
Are We Meeting Our Goals? If not why? Lack of eligible properties? Lack of creditworthy buyers? NSP Problem Solving Clinic 2012 Are neighborhood conditions/reputation limiting my target market? Incomes too low/price point too high? Subsidy too low Limited Availability of Permanent Financing Rental developments won t cash flow Competition from Investors
Are We Meeting our Goals Under Performing Partners -It s not me, it s you Undercapitalized Understaffed Inadequate Specs leading to unexpected expenses Unfamiliarity with the business line
The Subrecipient/Developer Quandary Challenge Round 3 15
Is my Partner a Subrecipient or a Developer? Who s on my team? Subrecipient- Services to families Management of programs Management of housing units Developer- Building/acquiring/rehabbing units
What are the Differences? Key Points to be aware of: Program Income vs. Program Proceeds Administrative Costs vs. Developer s fees Program Delivery Costs Procurement
Where Do I Get my Data Challenge Round 4 18
Data Based Decisions Prior to making changes, it is important to know what needs to be changed Collecting and reviewing data increases the chances that program changes will be successful
Data Needed and Likely Sources Market Appraisers/ Market Studies Maximum Gross Rent vs. Actual Gross Rent All Units 2011 Maximum Actual Total Unit Type Gross Rent Gross Rent Reported 1 BR $738 $694 2031 2 BR $904 $852 4276 3 BR $1,047 $985 2793 4 BR $1,156 $1,090 9283
Data Needed and Likely Sources (Continued) Market Realtors Homebuyer Counselors Law Enforcement Reports Program Design Nonprofit Partners Lenders Technical Assistance Providers NSP Problem Solving Clinic 2012