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4/27/2011
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Successful Management of Scattered Site Rental Housing in Reno
HousingHousing AuthorityAuthority WaWass RReequesquestteded toto BuyBuy andand ManagManagee ScaScatttteerreedd SitSitee ReRennttaallss
• Reno secured EDI grant to buy vacant houses in inner city neighborhood
• HUD’s Good Neighbor Program offered foreclosed houseshouses toto loclocaall govegoverrnnmmeentntss
• NSP1 grant funding for single family rentals
• NSP2 grant funding included many more rentals
FoFoccuuss onon FFoorreclosedeclosed SingleSingle FFamilyamily HomesHomes
S 3lide
ReRentntiinngg toto FFamiliesamilies UnderUnder 50%50% ofof MedianMedian IncomeIncome
• Four target areas in scattered locations
• Total of 118 REOs already bought for rental
• At least 25% of NSP1 and NSP2 funding for rentalls to llow iincome ffamiliilies
• Housing Choice Vouchers are a great resource
• Project Based Vouchers may be an option
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EEffffoortsrts toto RReeduceduce OngOngoingoing MainMainttenanceenance CosCosttss && EnerEnergygy UsagUsagee
• Evaporative Coolers instead of A/C
• Energy Star Appliances
• Xeriscaped Landscaping
• Plant trees for shade and fruit
• Water saving toilets & low flow showerheads
• Improved insulation
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RHARHA usesuses twtwoo typestypes ofof PrPropertyoperty ManagManagemenementt
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Private Management Company Public Housing Management
Labor costs are less expensive Costs are higher
Careful selection of a management company is required
Staff is already aware of how problems are handled
Management companies do not require training
Staff training may be required
Communication can be an issue In‐house management has fewer communication issues
Less direct oversight of the properties Much more ability to control what happens with properties
4/27/2011
SSccaattettereredd SitSitee ManagManagemenementt isis NotNot EaEasysy
Not our first choice
• Considerable travel time and cost
• Lack of standardized maintenance materials
• Lack of direct oversight and tenant problems
• Responding to emergencies can be difficult
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FoForr usus itit isis nevneveerthelessrtheless aa wwoorthrthwhilewhile prprogrograamm
• We’re providing excellent affordable housing
• We’re covering expenses and building reserves
• We’re helping shore up neighborhoods
• We’re helping the local economy
• HOAs love us!
• Great local press!
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KeKeyy ConcernsConcerns foforr RHARHA
• Quality affordable housing for our tenants
• Neighborhood stabilization
• RHA is eager to maintain a positive public image
• Curb appeal is a key priority
• Protecting our investment by ensuring high quality maintenance practices
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CarCareefulful TeTennaanntt SelectionSelection isis anan ImportImportanantt FFactactoror
• Criminal history is always checked
• Rental history is reviewed
• RHA does home visits of applicants
• Ensure tenant is able to pay HOME rents
• Address Fair Housing issues
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LeaseLease EnEnffoorrccemenementt
• Rent collection is essential • Impose late fees and charge for propedamage; this is a business!
• EEnsure ttenantt llease compliliance – Keep sidewalks, driveways, and yards attr– Vehicles must be licensed and operative – Window coverings need to be intact
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rty
active
LeaseLease ComplianceCompliance cancan bebe EnsurEnsureedd withwith OngOngoingoing InspectionsInspections
• Complete inspection at least twice a year
• Weekly drive by to review yard and exterior
• Build in a preventative maintenance program
• HOA rules must be followed
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PrPropertyoperty InInffoormarmattionion onon EEachach HouseHouse AAvvailableailable foforr MainMaintteenancenance StStaffaff
• RHA assembles key information in “site books” ‐ Photographs ‐ Property layouts
‐ Building design ‐ Utility cutoff locations
‐ AppliancesAppliances ‐WaWatteerr heaheatterer andand furnacefurnace
• The site book is especially useful for after hours emergencies and repairs for staff not familiar with the properties
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WherWheree dodo wewe gogo frfromom herheree??
• Need to do more to train residents
• Maintenance recordkeeping and training also need improvement
• Consideration of other alternatives when housing market improves
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4/29/2011
The Challenges of Scattered‐Site Housing
• Uniontown housing developments
• Tax credit development / single‐family home rental development
• Benefits and challenges of scattered site developments
• Cost
Overview
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Fayette County, PA
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Fayette County Community Action Agency, Inc.
Health and Human Services
Aging Services Center Services Home Services Health Ed. Physical Act. Adult Education Training Nutritional Counseling/Ed.
Financial Assistance
HUD Housing Counseling Emergency Shelter Rent/Mortgage Asst Utility Assistance Budget Counseling 1st time Homebuyers Emergency Food Food Stamp Outreach Rural Development Loan Packaging
PA Housing Finance Agency Educ and Asst
Rental Units/Supportive Housing
Tax asst/EITC outreach Family Savings Accounts
Community and Economic
Development
Housing Development Commercial building Development Business Incubator Entrepreneurial training Revolving Loan Fund
Stone Church Development
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Stone Church
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Rehabilitation projects
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Another Housing photo
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Uniontown Family Homes Partners
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Benefits of Single‐ Family Rentals
• Quality living environment for residents
• Single‐family homes become the desired housing in housing market, so they’re easy to rent
• Scattered‐site housing de‐concentrates poverty
• Homes can blend into existing neighborhoods
Slide 14
Challenges
• Most residents are used to apartment living with a limited sense of responsibility, so there is a tendency to get more calls for maintenance issues
• Some residents have no experience caring for a house/yard, so it is important to instill a sense of pride in the house/yard so that both are properly maintained
• Logistics of managing over a large geography
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Challenges
• Care of grass, shrubs, and trees in residents’ yards is an ongoing issue, as is snow removal from sidewalks and driveways
• Providing/offering supportive services is more of a challenge with scatted‐site developments
• Single‐family home renters need a little more education to properly maintain the home
Slide 16
Revenue
• Revenue – Net Rental Income $188,089
– Interest Income $ 1,901
– Other Income $ 931
• Total Revenue $190,251
Slide 17
Expenses
• Administrative (Management, audit) $ 32,651
• Operating and Maintenance $ 52,979
• Payroll ( 40% office staff/20% Janitor) $ 18,426
• Taxes and insurance $ 90,062
• Supportive Services $ 5,400
• Misc. $ 2,400
– Grand Total $201,918
• Net loss before depreciation, etc. ($11,667)
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Contact Information
James Stark Fayette County Community Action Agency, Inc.
108 North Beeson Ave
Uniontown, PA 15401
724‐430‐3011
www.fccaa.org
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Fayette County
Community Action Agency, Inc.
108 North Beeson Boulevard
Uniontown, PA 15401
724-437-6050
Sustainable Community Project Uniontown - Year One Updates
What is a Sustainable Community?
“Sustainable communities are places that offer the positive environments
needed to ensure that all residents of varied income levels are provided the
opportunities and tools to build assets, to participate in their communities,
and to become part of the mainstream economy. They are, in effect, the
embodiment of both "community" and "development" — places where
human opportunity and social and economic vitality combine with a
continuous process of growth, adaptation, and improvement.” - Local
Initiative Support Corporation (LISC)
LISC envisions Sustainable Communities as places that people want to be in,
contribute to, thrive in, and be proud of. Such communities will be able to
attract and maintain their populations and contribute to the overall health of
their cities and regions. As part of the planning process, there are five
objectives that, taken together, can lead to this larger goal of comprehensive
community health and sustainability:
1. Developing, preserving, and investing in the physical environment
2. Increasing family income and wealth
3. Stimulating & connecting economic activity locally and regionally
4. Improving access to quality education
5. Fostering livable, safe, and healthy environments & lifestyles
The original eleven LISC demonstration sites included Washington, DC,
Chicago, Indianapolis, Kansas City, San Francisco, Milwaukee, Deluth,
Rhode Island, Twin Cities, Detroit, and Rural Pennsylvania (Uniontown in
Western PA and Tamaqua in eastern PA).
The Uniontown Sustainable Community Project
was kicked off in May, 2009, with a half-day
meeting at which local groups presented their
work and future goals to the State, Federal, and
private funding partners. In addition to local
partners, participants included representatives
from the Center for Rural Pennsylvania, USDA
Rural Development, Rural LISC, PA Housing
Finance Agency, PA Downtown Center, PA
Department of Community and Economic
Development, PA Commission on Crime and
Delinquency, Governor’s Advisory Council on
Rural Affairs, as well as public officials, including
Uniontown’s Mayor, State Representative, and
State Senator.
The Building Blocks of the LISC Model:
-Geographic targeting
-Resident-led planning
-Community engagement
-Lead agency
-Comprehensive array of development
activities
-Leveraging
-Strong partnerships
-Measuring progress
-Communications
Uniontown Family Homes
In 2009, Fayette County Community Action Agency, Inc. (FCCAA) and
PIRHL Developers completed the construction of 30 new ENERGYSTAR-
rated homes throughout Uniontown, Pennsylvania.
The Uniontown Family Homes Development was made possible with
funding from the following sources: The Pennsylvania Housing Finance
Agency (PHFA), PNC Multi-Family Capital, the PA Department of
Housing & Community Development, Federal Home Loan Bank of
Pittsburgh, First National Bank of PA, Fayette County Act 137 Funds,
Local Initiative Support Corporation, Rural LISC, PA Home Energy, The
West Penn Power Sustainable Energy Fund, and Home Depot Housing
Assistance.
Each of the homes was constructed to meet the criteria for energy
efficiency and conservation, operational savings, and sustainable practices.
The total cost of the Uniontown Family Homes development was
$7,384,338.
The Uniontown Family Homes development was built to adhere to the
LIHTC lease-purchase model. This unique initiative was developed under
the lease-purchase model of the Low Income Housing Tax Credit program
of the Pennsylvania Housing Finance Agency, in which eligible
participants work toward homeownership. Tenants of the homes have the
option to purchase the property for the outstanding debt at the end of the
15-year tax credit compliance period.
The Uniontown Family Homes development participates in the PA Home
Energy program and recently won an Allegheny Energy Smart Growth
Award for its commitment to affordability and sustainability.
The initial installment of Uniontown Family Homes was so successful, that
FCCAA and PIRHL have agreed to begin working on the second
installment - Uniontown Family Homes II.
Fairweather Lodge
FCCAA’s Fairweather Lodge is a permanent, supportive housing program
designed to serve eight homeless individuals suffering from mental illness.
The Fairweather Lodge Housing concept is a cost-effective, community
support-based program with emphasis on self-governance and employment.
Lodges are affordable alternatives to rooming houses and lonely apartment
living. The need for formal treatment, such as hospitals, is diminished as
members form normal supports and transition into contributing members of
society. Norms enforced by membership promote healthy lifestyles and
improve the residents' quality of life.
The Fairweather Lodge project required acquisition and renovation, costing
approximately $517,000. The Fairweather Lodge opened in October 2009.
FCCAA will also be breaking ground on a 10 unit, permanent, supportive
housing apartment building in 2010. This facility will bring approximately
$1.3 million in construction revenue to the area.
Community Medical Services / Cornerstone Care - Community Medical
Services, which offered preventive medical and dental care in Uniontown, PA for more
than 10 years, is now under the management of Cornerstone Care, Inc. This new
expansion will allow for the creation of 15 jobs.
Cornerstone Care has provided medical, dental, and counseling services to residents of
Greene, Washington, Fayette, and Westmoreland counties for more than 30 years.
Maple Street Development - Threshold Housing Development, Inc. (THD), a
partnership project of FCCAA and Community Action Southwest, develops housing in
Fayette, Greene, and Washington Counties. For more than a decade, THD has worked
to provide safe, affordable housing for families in Southwestern Pennsylvania. In
addition to the self-help housing projects in Uniontown, THD is preparing a site in
Uniontown (Maple Street Development) for the construction of an initial 10 homes
which will be sold at a below-market rate. Construction of the first three homes will be
completed in Spring, 2011. The estimated investment in the area is $2.25 million.
Uniontown Senior Housing - FCCAA, PIRHL Developers, and the Redevelopment
Authority of the City of Uniontown are currently constructing a 36-unit senior apartment
building, for seniors 55 and over. The project will be completed in early 2011 with a total
development cost of $7.5 million. The project is located in Uniontown’s Elm Street
Community on Gallatin Avenue, leading into downtown Uniontown.
The FCCAA “Green” Building
In 2008, Fayette County Community Action Agency,
Inc. received a Silver LEED Certification for its
“Green Building,” located at 108 North Beeson
Avenue.
LEED is the nationally accepted benchmark for the
design, construction, and operation of high
performance green buildings. LEED gives building
owners and operators the tools they need to have an
immediate and measurable impact on their
buildings' performance. LEED promotes a whole-
building approach to sustainability by recognizing
performance in five key areas of human and
environmental health: sustainable site development,
water savings, energy efficiency, materials selection,
and indoor environmental quality.
FCCAA recently kicked off a capital campaign to
“green” its Campus of Services. Over the past year,
work began on the Community Service Center with
the renovation to the Uniontown Adult Recreation
Center and the addition of a new fitness center.
Additional healthy living features were also added.
These features include healthier meal options,
technology education, and exercise equipment.
Republic Enterprise Center
The Republic Enterprise Center is located in a 70,000 square-foot
facility located outside of Uniontown. The Republic Enterprise Center
provides services that support area small businesses in a select group
of growth industries. Currently, FCCAA is working with a team to
develop the site into a Food Enterprise Center which will add value to
food products and provide quality, locally-grown produce to
consumers. The project will create approximately 50 jobs.
Uniontown Weed and Seed
The Pennsylvania Weed & Seed Initiative is a law enforcement and community
revitalization effort under the direction of the Executive Director of the Pennsylvania
Commission on Crime & Delinquency and The Targeted Community Revitalization
and Crime Prevention Advisory Committee. Uniontown was one of two new Weed
& Seed communities added during the past year.
FCCAA plays a major role in the Uniontown Weed & Seed program, having met
with Commonwealth Weed & Seed Directors to help obtain Weed & Seed
designation, a designation shared by only 16 other communities in Pennsylvania. In
Uniontown, this collaboration joins together community organizations and law
enforcement to reduce criminal activity in our local communities.
Building Assets
During the past year, FCCAA increased the level of financial education offered to the local community by sponsoring a
variety of sessions for consumers. 25 new savers were enrolled in FCCAA’s Family Savings Account program. The
Agency is currently working with the Women’s Opportunities Resource Center of Philadelphia on a strategy to secure
state funding to match federal IDA dollars in order to expand the program.
FCCAA currently provides a variety of financial supports and education to the local community. Over the course of the
year, FCCAA began integrating a number of financial services, including financial programs and employment services,
around the LISC Financial Opportunity Center model. This model provides extensive coaching and education to families
over a longer period of time. Services are bundled and progress of the families is tracked. The Center is currently under
development. The Center is planned to open in 2011.
Westmoreland County Community College
The Westmoreland County Community College (WCCC), located on the
FCCAA Campus of Services, continues to grow. With the help of the
Benedum Foundation and FCCAA, WCCC’s services have been success-
fully introduced to Fayette County.
Additionally, FCCAA continues to provide a variety of training and
education programs to the residents of Fayette County.
Unified Plan for Building Sustainable Communities in Uniontown, PA
During the year, the planning committee worked to compile multi-year goals from a variety of projects, including the Fayette
County Strategic Plan, the Elm Street Plan, the Weed & Seed Plan, the City Comprehensive Plan, the Main Street Plan, as
well as planned activities of partners into a comprehensive “Quality of Life” Plan for Uniontown. The drafted document will
be reviewed with community organizations and consumers at a meeting planned for early December, 2010.
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4/29/2011
Pratt Area Community Council Scattered Site Property Management
Deb Howard, Executive Director
PACC’s Mission Statement
Founded in 1964, PACC embraces a vision in which people strive together to build an equitable, diverse, engaged, and flourishing community in central Brooklyn. In our work as a community development corporation, PACC pursues five major goals:
• first, to preserve and develop safe and affordable housing, a basic human right;
• second, to support a vibrant local commerce through which small businesses serve the market needs of community residents;
• third, to sustain and develop an economic, racial, and cultural diversity that can enrich the lives of all;
• fourth, to promote knowledge, initiative, and concerted action that can advance individual and common interests; and
• fifth, to foster an ethic that all members of the community bear personal responsibility to contribute to the greater good.
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PACC: 47 Years of Community based Initiatives
• Community Organizing: Eviction Prevention, Community Outreach, Legal Clinics, Citywide Campaigns
• Home‐Services: Homebuyer Counseling, Loan Packaging, Debt Management, Foreclosure Prevention
• Economic Development: Streetscape and Storefront Improvement, BID Planning, Retail Leasing and business assistance
• Housing Real Estate Development: Multi‐family Rental, 1‐4 Family Homes—New Construction & Renovation
• Property Management: Leasing, Marketing, Tax Credit Compliance, construction management
• Social Services: case management, Life skills, Nutrition
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The Communities We Serve
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Before After
PACC Property Management Portfolio
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Map of PACC’s Properties in Bed‐ Stuy, Prospect Heights, Clinton Hill, Fort Greene
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PACC Property Management Portfolio
PACC manages 697 units in 58 buildings
• Primarily residential, 4 units to 71 units in size
• 17 mixed use‐ storefronts with apartments above
• Gut Renovation • Moderate renovation • New Construction •Distressed properties
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PACC’s Portfolio – tenant profile
PACC utilizes various subsidies which require asset management compliance
• Congregate supportive housing – LIHTC, 30% ‐ 50% AMI and formerly homeless individuals
• 100% LIHTC @ 60%AMI plus 30% homeless family designated units
• Occupied distressed properties, existing rent stabilized tenants, city often uses HOME subsidies
• Limited Equity Co‐ops and affordable condos
Slide 8
PACC Property Management Staffing
PACC has a Director of Property Management, 3 property managers, a Leasing and Occupancy Specialist, Receptionist/dispatcher, Controller and 2 bookkeepers.
Maintenance staff‐
1 Maintenance Director
8 Superintendents
2 Handymen
9 Porters
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PACC Property Management Portfolio poised for growth PACC faces the challenge of managing scattered sites as a cost center that operates at a deficit.
Our answer is to grow strategically by –
• Identify buildings to manage that are close to others, clusters
• Diversify the portfolio
• Take on larger properties ie.
project‐based Section 8 buildings
• Market services to other non‐
profit and for profit developers
• Identify niche ‐ preservation
Slide 10
PACC Property Management Projected growth
Our goal is to reach that magic “break even” number
of 1100 units. Pipeline for 2011‐ 2012
• 225 unit 27 buildings of failed nonprofit developer
102 unit Project‐based Section 8
34 unit cooperative
98 unit supportive housing
18 unit preservation project
Total : 697 + 477 = 1174
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PACC property management competency
What are our strengths that we could market to other owners both private and non profit?
• Very good at compliance, keep investors happy
• Marketing and managing citywide apartment lottery
• Management staff are RAM and LIHTC certified
• PM Director and finance staff are HUD certified
• Staff restructured‐ by adding dispatcher Property Managers can take on more capacity
• Service oriented, tenants are our customers
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PACC Property Management ‐ Efficiencies
• Timberline software‐more cost effective, dispatched work orders
• EZ Labor ADP system‐ blackberry synched, GPS positioning, paperless payroll
• Scanned check deposit system
• Maintenance teams, shared skills – not tied to 1 or 2 buildings, eliminate down time
• Empower NY – code violation software
• Centralized inventory and controls – shared t ools
Slide 13
Other tips
• Cluster small scattered sites‐ choose your portfolio carefully
• Identify your strengths and market them to others to generate earned income
• Utilize your maintenance staff to the fullest
• Build pride within the staff‐ praise success, make the workplace fun
• Deploy Property Managers to the field, not a desk job, foster good relations with tenants, be proactive
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THANK YOU
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