Project Directors Best Practices Training

Project Directors Best Practices Training

NCALL Research, Updated October 2008

Throughout this slide presentation, NCALL’s recommended “best

practices” will be notated with a *BP.

The Grantee and Rural Development Relationship

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

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

*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

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

Grant Basics

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

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

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

Grant Agreement

Very important document Be aware of the requirements and

terms in agreement Take time to read and understand it

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

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

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

Program Criteria

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

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

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

Production Build the number of homes in grant

agreement Keeps organization operating within

TA cost Grantees judged on accomplishing

grant requirements

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

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

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

Grant Management

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

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

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

Key benchmarks – recruitment, land, construction, finances

Review monthly fiscal report Create and review

construction and recruitment schedule

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

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

Staff Meetings Weekly staff meeting is effective

program management tool Review weekly program

objectives w/ staff Make sure to set aside time

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

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

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

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

Grant extensions need to be no more than one year

Future performance needs to be based on a workable plan

Analyze what caused problems

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

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

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

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

Building Group Membership and Labor Agreement

*BP Sample recommended agreement included as Attachment 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

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

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

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

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

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

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

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

Required Reports and Meetings

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

Monthly Report All monthly SHARES data needs to

be entered by the 5th of the month NCALL pulls monthly SHARES

reports, analyzes them NCALL emails out a monthly report

to grantee and RD

Quarterly Reports Rural Development responsible for fiscal and

programmatic oversight and monitoring Quarterly report is the primary monitoring tool SHARES generates this report, Attachment 7 *BP Contractors recommend also complete

supplement, Attachment 8 Report must be accurate, complete, on time Due 15th of each month following end of quarter Report covers key program benchmarks

Determining EU’s Equivalent Units Progress of program judged by

accumulation of EUs Numbers calculated by SHARES Phase I – Application submitted,

10% Phase II – Loan closing, 10% Phase III – Construction 80%, broken

down into task points in Exhibit B-2 Points may not be split

Role of Review Meetings Opportunity to review progress and

solve problems Increase effective communications Reduce potential problems Allow for crucial goal setting Enable up-to-date monitoring of the

program

Review Meetings Meetings should include:

Grantee staff Rural Development Managers Community Development Managers T&MA Contractor staff Grantee Board members should attend

quarterly Set an agenda Determine who will lead the meeting Keep minutes, document decisions made Be prepared for the meeting Review activity plan and financial report

*BP Sample Agenda Read minutes or notes from previous

meeting Grantee progress report Revision/ update of grant schedule per

group Review TA Cost, EU’s Resolution of problems Additional items View self-help homes Set next meeting date

T&MA Contractor’s Review Requirement to conduct an initial

assessment of all grantees to review: Grantee’s performance Organizational and financial

management training needs Planned level of production by quarter

and building group Leveraged financing for operational and

mortgage loan funds NCALL conducts an annual F.A.V.O.R.

Board of Director’s Annual Self-Evaluation of the Program

Annually the Board is required to conduct annual evaluation

Work may be done by board members or it may be contracted out

A sample evaluation is provided in 1944-I

Grantees may use this one or develop their own

Final Grantee Evaluation Near end of grant period RD conducts an

evaluation Determines how successful the grant was Five criteria will be reviewed

# of participants served % VLI 65% labor requirement Costs kept within guidelines Met other objectives in agreement

Rated as unacceptable, acceptable or outstanding

Financial Management

Internal Control Financial management important for

success Internal control is a cornerstone of

financial excellence

523 Grant Management Cost Allocation

The tracing of various costs Direct or Indirect Charge items consistently

Bank Account Checking account must be interest

bearing Interest earned in excess of $250/yr

must be returned to RD At least 2 bonded check signatories

Federal Accounting Requirements Financial management system must

meet standards in OMB circulars See Guide for listing of circulars

Financial Reporting Monthly, form SF 270 must be

submitted to RDM, original + 2 copies Written justification needed if request higher

than needed for next 30 days Turn into RDM 15 days prior to beginning of

month Grantees encouraged to use budget

tool to show actual vs. budgeted

Accounting for 502 Dollars Organizations may use either custodial or

individual accounts if approved by RD Establishing record keeping procedures Create file for each participant, including:

Bank account information House cost estimate Copies of paid invoices and check (with PO and

delivery slip) Participant’s statement of withdrawals and

deposits Contracts with subcontractors Reconciled bank statements Other – Insurance forms, warranties…

Drawdown Procedures for Section 502 Monies Plan well to determine amount

requested Cost Estimating

Accurate cost estimate is key to accounting for loan funds

Subcontracted Work Certain jobs are contracted

Purchasing House Materials Require suppliers to set up individual

accounts and separate billing records Verify condition and quantity of items

with delivery slip, sign slip

Reconciliation of Invoices Invoices from suppliers need to be

reconciled with delivery slips Invoices from subs need to be

reconciled with contract Have Construction Supervisor verify

completed work before payment *BP Do not pay for material unless the

PO and delivery slip are attached

Statement of Deposits and Withdrawals Record of all disbursements made Shows current loan balance and current checking

account balance Signing of Checks and Payments to

Suppliers *BP Participants and RD should never sign a blank

check Participants should approve and sign the invoice

or payment voucher and then the check Present to RD for approval and signature RD will sign and return checks for grantee to send

out Schedule payments to take advantage of supplier

discounts Reconciliation of Bank Statements

Must be done Preferably by the grantee

Other General Recommendations *BP Build homes according to plans, do not

allow changes *BP Do not transfer materials from one

house to another without documentation *BP Participants should not be allowed to

purchase materials for their homes *BP Schedule payments to suppliers to take

advantage of discounts and maintain the line of credit

*BP Keep participant check books locked in office

*BP Require suppliers to set up individual accounts and billing records

*BP Do not pay invoice unless it contains lot number or participant name

*BP Avoid shared expenses between participants

*BP NEVER deposit the participant checks into the TA grant pool or pool participant funds to be able to send one check to a supplier or contractor

*BP If participants are on site working prior to loan closing, use Participant Waiver on NCALL’s website

Loan Purposes Construction costs Legal fees Architectural and engineering fees, title clearance,

loan closing fees, appraisal, environmental, tax monitoring

Cost of special design features because of disability Connection fees Reasonable lender charges and fees Real estate taxes due at closing and to set up escrow

account Purchase and installation of essential equipment

(ranges, refrigerators, dishwashers, washers or dryers) Participants may want to pay for some of these items

themselves Site preparation, energy saving measures

Personnel

Staffing Many factors determine staffing

patterns Staff of four is typical Positions consist of:

Executive Director / Project Director Group Coordinator Bookkeeper Construction Supervisor

Sample job descriptions in Attachment 14

Supervision*BP Key factors for effective supervision: Be informed and keep others informed Be approachable Work to keep in touch Measure performance Act on problems Develop atmosphere conducive to

employee motivation Take disciplinary action

Share expectations with staff Help establish goals and plan

regularly Expect and plan for corrective action when problems arise

Advocate for employees Give immediate feedback Be consistent Do not show favoritism Give praise when a job is well done

Hiring Important responsibility, requires time and effort Before advertising:

Review job description Set salary range Choose closing date for applications Decide what is needed from applicant

Sources for recruiting: Within the organization State employment office High schools Community organizations Social service agencies Employee referrals Trade journals or newsletters

Define process of recruitment Rank applications – acceptable or not

Look at resume for more than content – organization, accuracy, appropriateness, presentation

Interview applicants Plan enough time for the interviews Let the applicant do most of the talking Take notes, be patient Use two people to interview if possible Devise a structured approach to interviews *BP Sample structure in Attachment 16 Determine applicant’s interest in the job Rank the applicants Check references of top three candidates

Checking references Important to verify what the applicant has

told you Get an indication of past performance Obtain three professional work references Letters are of little value Use a phone call for references Use non-directive questions that will elicit a

yes or no answer Never reveal reference information to the

candidate Make a decision and make the offer

Termination or Discharge of an Employee Termination is sometimes necessary Reasons for termination:

Resignation Mutual Agreement Reduction in labor force Unsatisfactory performance Misconduct on the job Retirement

Organizational policies should be in writing protecting both employee and employer Format to follow Assures consistency Expectations and consequences clarified in

policies Before firing, write down reasons for firing

and make sure there is just cause Know the laws, unfair labor practice law *BP Ask the following questions to ensure

just cause Does any documentation exist that leads to

conclusions other than the imminent termination?

Who would be surprised by this termination?

Was there adequate investigation of alleged misconduct before action was taken?

Is the person’s salary record contrary to that of an unsatisfactory employee?

Have other employees been treated differently under similar circumstances?

A General Labor Force Reduction Caused by gaps in funding Can happen frequently in this program Have a plan for such occasions

The Termination Interview Schedule it late in the day, in a private

place Terminate in first 10 minutes of meeting Be direct Give brief reason Make no reference to age, race, sex Describe termination pay, if any Spend no more than ½ hour Consider escorting them to clean out

their desk and leave the building Have follow-up conversation the next

day to answer questions and make necessary arrangements

Personnel Evaluations Have a formal process by which to

evaluate staff Have a policy requiring annual

evaluation for all employees Reflects on accomplishments of past

year Analyzes the present Looks forward to coming year’s

challenges Sample form in Attachment 17

Personnel Files Of utmost importance to agency Must be orderly and complete Should be located in same cabinet Should be kept locked Designate one primary staff person

to have access Personnel files should include:

Job application Resume Job description

Hiring letter or documentation Form I-9, Employment Eligibility Verification Employments contracts and amendments Salary increase notifications Tax information Performance evaluations Emergency contact and doctor information Personnel related memos or

correspondence Voluntary payroll withholding forms Awards, citations, training certificates Driver’s license and proof of current auto

insurance Keep these files up-to-date

Personnel Policies Defines what the agency can expect from

its employees Defines what the employees an expect

from the agency Purposes of personnel policies:

Fulfill legal requirements Help to train new employees Maintain positive employee relations Ensure continuity, promote equity Establish values, mission and direction Determine action and set boundaries Clarify responsibilities Define lines of communication and

accountability

Policies need to be reviewed by a lawyer Approved by the Board If organization is writing them now:

Decide who will be involved Review other agencies’ policies Investigate Start with an outline Write them Have them reviewed by a lawyer and approved

by the Board Review them with staff Review them annually for updates and changes

Sample policy outline in Attachment 19

Fair Employment, Equal Employment and Affirmative Action

*BP We recommend that grantees review the terms of their grant agreement as it pertains to discrimination, affirmative action

Ensure the organization is in compliance Grant agreement requires grantee not to

discriminate because of race, religion, color, sex, marital status, national origin, age, mental or physical disability

Also requires affirmative action in regards to employment and equal treatment

Requirements apply to: Employment Upgrading Demotion Transfer Recruitment Recruitment advertising Termination layoff Rates of pay Selection for training

The Fair Labor Standards Act

The FLSA is administered by DOL Establishes minimum wage,

overtime pay, record keeping, child labor standards

Some workers are exempt Typically exempt positions are

Executive Director or Project Manager Secretary / Bookkeeper and

Construction Supervisor are generally nonexempt

See Guide for more details

Other Laws Family and Medical Leave Act

Entitles eligible employees to take up to 12 weeks of unpaid leave each year

Used for birth or adoption of a child or caring for spouse, child or parent with a serious health condition

Law applies to organizations with 50 or more employees

Other agencies are adopting this law as a benefit to their employees

Americans with Disabilities Act Equal Pay Fair Housing Laws (Covered in next chapter) Employee Polygraph Protection Act Wage Garnishment Law Immigration and Nationality Act Sarbanes-Oxley Act

Ten Most Forgotten or Ignored Policies Non-expendable equipment policy Staff evaluations (Including ED) Use of written contracts for services Cost allocation policy Written financial management policies DOL, FLSA compliance Employment advertising policy Regular policy of examination of spending

compared to budget and actual production compared to planned production

Abiding by organization’s personnel policies Planning and preparation policy for future

grants

Fair Housing

Introduction The right to fair housing is set by law Training in this area is crucial Effects every staff person in the self-

help program Right to fair housing enforced by

formal complaint process, litigation, testing and monitoring

Lack of knowledge is no excuse

The Fair Housing Act Prohibits discrimination because of:

Race or color National origin Religion Sex Familial status Handicap / Disability

Covers most housing, definitely federally financed

Law effects sale and mortgage

Other Applicable LawsKnow that housing laws exist and must be

enforced. Such laws include: Title VI of the Civil Rights Act of 1964 Section 504 of the Rehabilitation Act of 1973 Age Discrimination Act of 1975 Title II of the Americans with Disabilities Act Section 109 of the Housing and Community

Development Act of 1974 Title VIII, Title VI Record keeping requirements: racial & ethnic data

((1901.202(g))

Helpful Websites: HUD: http://www.hud.govUSDA: http://www.rurdev.usda.gov

Affirmative Far Housing Marketing Plan HUD Form 935.2b, required for self-help

program Follow instructions Use accurate information Marketing plan designed to attract those

“least likely to apply” Special outreach for those groups required Plan approved and monitored by Rural

Development

Fair Housing Marketing

Fair Housing Advertising To comply with Fair Housing Act

requirements must be met No discriminatory or limiting words or

phrases allowed No selective use of media and models

which can lead to discriminatory results Use fair housing policies and practices

All advertising for real estate must contain the equal housing opportunity logotype, statement or slogan

For further details, see Guide.

Equal Housing Opportunity Logotype - Equal Housing Opportunity Slogan

“Equal Housing Opportunity” Equal Housing Opportunity Statement

“We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support affirmative fair housing advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin.”

Participant Selection and the Membership Agreement

*BP Two ways to ensure that all fair housing laws are being followed Consistency Documentation

A person with a disability cannot be denied the right to participate in the Mutual Self-Help Housing Program

RD and grantees are to make reasonable accommodations which allow someone with a disability to participate

“Participating family” definition allows substitute labor with prior approval by State Director

In rewards and corrective actions, participants should be treated equally

Follow rules in Membership Agreement, always

Identifying and Solving Potential Fair Housing Problems

Contact Rural Development or HUD immediately

Use mediation and all available resources Understand the complaint process

Complaints must be filed within one year Either HUD or RD may investigate Try to reach a conciliation agreement If agreement breached, further legal

action taken

Additional Resources

Various fair housing training materials exist

HUD’s Fair Housing Information Clearinghouse has brochures, videos, PSAs, posters

Rural Development can also provide materials and training

Stay in Compliance Review the Affirmative Fair Housing

Marketing Plan every quarter to insure compliance

Enforce Fair Housing Advertising requirements

Display Fair Housing Posters as required by RD

Questions should be addressed to State Civil Rights Coordinator

The End!