Your Money at Workcart.nanmckay.com/Collateral/the-housing-conference/hud-funding-tools.pdf · Your Money at Work What Success Looks Like The PHA maximizes dollars and assists as

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Using HUD Funding Tools to Maximize Performance

Teri Robertson

Your Money

at Work

What Success Looks Like

The PHA maximizes dollars and assists as many families as possible

The HCV program is run effectively and cost-efficiently

The PHA achieves and maintains full points on SEMAP indicator 12: Lease-up

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Understanding HCV Funding

HUD determines funding levels byCollecting actual CY HAP used for each PHA Totaling to determine total industry needsComparing to appropriations and determining

what percent of needs is availableApplying the percent to each PHA’s needsApplying regional COLAs


Administrative fees are earned based on the number of units leased on the first day of each month

Maximizing leasing will maximize the amount of administrative fees that will be received, directly impacting the PHA’s financial viability


PHAs can overlease in one month

But their total unit months leased (UML) in the calendar year cannot exceed 12 times their ACC-authorized (baseline) units

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PHAs are prohibited from overleasing in a CY Even if they have ABA or net restricted assets

(reserves) to do so Must identify other resources to pay for overleasing

Renewal funding will not include funding for overleased units

Understanding HCV FundingMust also ensure the PHA scores its points under

the SEMAP indicator: Lease-up PHA is scored on whichever is greater:

% of UMAs leased, or % of HAP expended

During the calendar year (not fiscal year)

98% (of either) earns the maximum 20 points

Maintaining Financial Stability

PHAs must proactively manage funding

As annual budget authority (ABA) is based on actual expenditures for the prior calendar year, unused HAP will negatively affect future funding “Use it or lose it”

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Maintaining Financial Stability

PHA should review its current leasing status (HAP and units) and projected CY leasing status at least monthly Build your PHA’s leasing plan Tweak and revise monthly, as updated figures

indicate

Tracking PUC

Most PHAs do not have sufficient ABA to fully utilize baseline units If actual PUC exceeds funded PUC, PHA cannot

fully lease up

Tracking PUCActual PUC changes each month Families enter and leave the program Annual/Interim reexams change HAP Rent increases Number of units under lease changes

The number of units your actual costs will support changes from month to month

Analyze funding every month and determine where you are year to date and where you are projected to be at calendar year end

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Additional Funding Factors

At the end of the CY Unused Budget Authority becomes ACC Reserves

Net Restricted Position - NRP

Unused Administrative Fees becomes Administrative Fee Reserves Unrestricted Net Position - UNP

Two-Year Tool Overview

TYT Overview

Many PHAs experience large swings in lease-up, followed by attrition, and then cutbacks to avoid overspending

TYT was designed to assist HUD and PHAs in analyzing a PHA’s utilization situation Projects outcomes, allows for informed planning

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HUD Forecasting Tool

Excel spreadsheet projects HCV leasing, spending, and funding over a 4 year period

The tool is available through the HUD’s Office of Housing Choice Vouchers webpage

Scroll down to the middle of the page

HUD Forecasting ToolClick on the link to see options


1. HCV Training Videos

Opens an Excel document with links to HUD videos

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1. HCV Training Videos


2. HCV Two-Year Tool Guide

16 page Guide covering the use of the TYT


3. HCV Two-Year Tool

You no longer must log into WASS to access More later…

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4. Success Rate Guide

Five page document providing PHAs with guidance to increase success rates


5. Tool of Tools 2 tools Payment Standard Tool “What if” analysis of payment

standard changes Analysis of family rent burdens Additional tools, such as overhoused

analysis


5. Tool of Tools HCV Analysis Tool (HAT) Four page pdf overview of PHA’s

voucher program Includes PHA to state and PHA to

country comparisons PIC drill down report Analyze tenant-level data in PIC

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HUD Two Year Forecasting Tool

Enter your PHA code in the PHA field, and the TYT will populate with your PHA’s actual dataAnnual Budget AuthorityReserves Leasing information year to date From VMS dataWill be a month or two behind


TYT will quickly show you where the program utilization really is on an ongoing basis

Tool can show leasing projections for current year plus 3 years

Will also estimate next year’s budget authority based on current year anticipated expenditures


When accessing the auto-populated version, yellow fields should be verified by the PHA and changed as needed

More current month data should be updated Most recent months data will be blank VMS corrections may not have hit TYT yet

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Place your screenshot here

Two-Year Tool Top Additional

Tools

Allocated vouchers ABA Offsets Set aside funding New funding Reserves Total available

funding

Funding

What percent of HAP needs do you think will be available next year? The year after? Do you project any offsets? What percent of earned

administrative fees do you think PHAs will receive next year? The year after?

Guessing Game

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These are critical to good leasing projections We will talk

more about these, later

Program Projection Valuables

For current year, next year, and results for year 3

Projection Synopsis


Projection portion of the tool is the heart

Two-Year Tool

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Based on current leasing data, vouchers anticipated to be issued, attrition, current actual PUC, where will the PHA end the current calendar year?


And, where will the PHA end the following calendar year? You need to be familiar with using this

portion of the TYT

We’ll look more closely, later


We will review Success Rate

Tracking Waiting List

Management

Additional Tools

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Creating a Leasing Plan with the TYT

Leasing PlanGood projections require 6 key variables:

1. Eligibility Success rate: % of selected families receiving vouchers

2. Eligibility Determination time: How long it takes from WL selection to voucher issuance

3. Success rate: % of V’s resulting in lease4. Turnover rate: Participants leaving program5. Issuance to Leasing Time: Avg months6. Actual PUC

Using the TYT

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Leasing PlanMuch of the data is available in the TYT

with proper use of the tool

We will go through the steps to creating a PHA’s leasing planHeavily relying on the Forecasting Tool

We will follow the Winchester Housing Commission (WHC) as they work through the steps in early February, 2018

Leasing Plan: Step 1Step One: Know your goalsWHC must decide how much they wish to hold

in reserves at CYEExecutive Director and Finance decision The more we spend, the more we get,

but…Economically tough times for the industry

WHC decides to set a goal for $200,000 in reserves at CYE

Leasing Plan: Step 1Step One: Know your goalsBaseline units (vouchers) 2,100

ABA $15,000,000HAP Reserves $1,200,000Available CY Funding $16,200,000

If the goal is $200,000 left in reserves at year end, how much is their 2018 spending goal?

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Leasing Plan: Step 2Step Two: Update Program Projection

Variables Access the Success Rate Tracking Tool

through the Additional Tool Menu

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Leasing Plan: Step 2When vouchers are issued, enter in VOs

Issued Then enter which month those vouchers lease – if family

leases in the month the voucher is issued, show in following month

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Leasing Plan: Step 2 TYT tallies the data provides the PHA with success rates

and leasing interval data Will not include ‘unfinished months’ in calculationsMust show the number of vouchers that failed to

least for that month’s data to be included

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Leasing Plan: Step 2

What is WHC’s overall success rate?

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Note that if the PHA needs to view leasing intervals over 150 days, the PHA may click on the below button on the Success Rate Tracking tab

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Leasing Plan: Step 2PHA should also factor in known market changes Success rates dip in fall/winter because of fewer

moves Jobs move away, so families do, too Large PH development is being demolished, which

will increase voucher holders searching for units

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Leasing Plan: Step 2Once PHA decides on the leasing success rate

and leasing intervals, these are entered into Program Projection Variables in TYT Leasing intervals must add to 100%

The PHA can use the tool’s default figures, the figures calculated by the tool, or edit as the PHA sees fit

WHC’s Program Projection Variables

‐ The success rate shown in the tool obtained from HUD is a HUD default‐ PHA should enter actual overall leasing success rate HERE

‐ The leasing interval data shown in the tool obtained from HUD is a HUD default‐ PHA should enter actual leasing interval data

• The annual turnover rate shown in the tool obtained from HUD is based on PHA actual data from IMS/PIC

• It is based on data that is 6 months to 18 months old, reflecting a 12 month period

• The PHA can override if local conditions have increased or decreased attrition rates


WHC’s Program Projection Variables

‐ To enter the Success Rate as calculated by the tool, and the Leasing Intervals as calculated by the tool….

Simply click on the ‘Move’ button on the Success Rate Tracking tab

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Leasing Plan: Step 3Step Three: Update current leasing information in

the Forecasting Tool WHC’s January

Units 2,075 HAP $ 1,327,654

WHC will not submit this data to HUD until late February, via VMS Data is available earlier, so there is no need to wait

Leasing Plan: Step 3HUD will not have populated the TYT with this

data for at least a month after reported through VMS Early in the year, PHA will manually enter Later in the year, the PHA should review past months

for VMS corrections and Override the HUD-populated tool, if necessary Add in missing months data

Leasing Plan: Step 3VMS corrections are normal

Could be due to: Late HAPC execution called for retro HAP Family vacated without notice and we just found out Late examination processing

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Leasing Plan: Step 3Once data is entered in TYT, the tool will: Calculate actual PUC (HAP/Units) Apply attrition rates through the CY Multiply remaining units x PUC to project the entire

year’s leasing

Note that PHAs can override calculated PUC if the PUC is anticipated to increase/decrease


This PHA has increased their PS, so they have entered a manual override which has increased their PUC by $2 per month for several months


Leasing Plan: Step 4 Analyze data and create Leasing Plan Need 25,200 units and $16,000,000 HAP

spent annually What does WHC need to do?

‐ Blue figures added for easy classroom reference

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Leasing Plan: Step 5 Decide on how many vouchers to issue and when Enter “what if” scenarios in the Vouchers Issued

column

Leasing Plan: Step 5Consider: Staff availability Eligibility processing time

Keep watching the bottom line Goal: to reach spending goals without overleasing If WHC’s actual PUC were lower, the goal would also

be to lease all available UMLs

Leasing Plan: Step 5What if we issued 20 v/mo?

What are the outcomes?

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‐ The tool factored in the success rate and applied the leasing interval percentages

‐ These are reflected in the New Leasing from Issued Vouchers column

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Leasing Plan: Step 5What if we issued 40 HCV a month,

beginning in March? How is WHC doing, now?

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Leasing Plan: Step 5WHC tries different scenarios and ends up with

this leasing plan

62‐ This looks pretty good! ‐ Now, let’s test further and look at year 2

Leasing Plan: Step 5WHC – Year 2: Forecasting Tool automatically takes current year’s

projected HAP expenditure as the starting point for the following year WHC = $15,999,793

It then applies any funding proration the PHA entered in the tool WHC used 100%

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Leasing Plan: Step 5WHC’s year two

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WHC needs to try again, as the leasing plan which worked so well for the current year leaves them both over leased and overspending in year two

Leasing Plan: Step 5 ‘Catching up’ on leasing always creates issues Can create the ‘see-saw’ effect the TYT was designed

to eliminate

WHC increased HAP expenditures in later months to compensate for underspending early in the year Started next year expending too much per month

WHC will be all right, though WHC changes the leasing plan to reduce late year

voucher issuances as these have less impact on the current year but full impact on year two


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Success! WHC is pleased with the results as the PHA recognizes that the work that takes place this year will leave them with a regular, ongoing voucher issuance plan!

No more leasing ‘events’! The PHA will be better equipped to manage voucher issuance next year and future years as they have a plan!

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Leasing Plan: Step 5WHC recognizes that other factors may change

that will require updating the plan: Actual PUC increases/decreases

Payment standard changes UA changing Rent increases

Success rates and leasing intervals change Attrition is higher or lower than anticipated

So they will update figures (success rates, leasing intervals, attrition, actual HAP/vouchers leased) and meet each month to review and adjust

Leasing Plan: Step 6Ongoing monthly meetings will assist the PHA to

proactively manage voucher issuance

Right now, the program manager must take the plan to the next step and select families from the waiting list How many families? Let’s see….

Leasing Plan: Step 6Determine the number of families to select from

the waiting list Now that the PHA has decided on how many vouchers

to issue each month, the Waiting List Management Tool will calculate the number of families to select from the waiting list

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Leasing Plan

WHC needs its actual eligibility success rate

Number of families selected from the WL that end up receiving a voucher

82% of families selected from WHC’s HCV WL receive vouchers

Leasing Plan

Eligibility Success RateNow, the PHA

knows how many to select in order to reach its desired lease up ratesWhat isn’t shown

is how long eligibility determination will take Why is this

important?

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Eligibility Success Rate The longer eligibility determination takes, the

earlier you must select from the WL

WHC’s plan calls for 60 vouchers to be issued in March They need to select 73 families now to get those

vouchers issued in March Delays will impact their voucher issuance plan

Eligibility Success Rate So, although the tool is

showing that the PHA must select 73 families to issue 60 March vouchers, the PHA must translate that into WHEN the selection must be done How long does

eligibility determination take at your PHA?

Eligibility Success RateWe’ve just walked through WHC’s process for

building their Leasing Plan

One question remains unanswered

How did they determine the actual eligibility success rate? Do you track the rate at your PHA?

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Eligibility Success Rate TYT now has the means to track what the tool

calls the ‘Wait List Success Rate’

TYT ‘Wait List Success Rate’ tool tracks only numbers

The TYT Wait List Success Rate will track a cumulative Success Rate only using those months with ‘failed’ numbers entered• Number of families

selected that did not receive a voucher

HUD TYT

WHC’s leasing plan is complete

Results WHC knows where their results will be for the

calendar year No more leasing events!

HUD TYT

A note on using the tool: It is best to save the TYT down to your hard drive or network once current year funding is shown

Use as your working tool, and update as the year progresses Update leasing numbers, PUC overrides, Success

Rate data, leasing intervals

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Other Tools

Tool of Tools 2 tools Payment Standard Tool HCV Analysis Tool (HAT) Includes PIC drill down report

Tool of Tools First, log into IMS/PIC and run and save an ad

hoc report (save as regular excel)

Tool of Tools

Click on Tool of Tools link and see instructions, if you wish

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Tool of Tools

Click on the tool you wish to use, and get excited!

Tool of Tools

Program Overview – will ask you to link to adhoc report and then will provide you with a 4 page pdf summary of your HCV program Includes: Program demographicsA rent burden analysis comparing the

PHA’s rent burdens to other PHAs within the state and across the country

Tool of Tools

Includes: An at-a-glance report of family rent

burdens by voucher sizeDoes not subtract families living in

units larger than the voucher sizeAn at-a-glance report showing how many

families live in units larger than the voucher size, broken down by voucher size

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Tool of Tools

Includes: A breakdown of the number of household

members within each assigned voucher sizeUseful for determining incorrect

voucher size assignmentAt-a-glance reports on HAP/BA, UMLs to

UMAs, and PUC as compared to other PHAs within the state and across the country

Tool of ToolsBeautifully presented and ready for

distribution

Tool of Tools

Just a sampling of the report detail

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Tool of Tools

Blue = PHARed = stateGreen = US

Multiple Comparison Reports

Tool of Tools

Document 2: Drill-Down (PIC Family QC)

Provides detailed data on families

All data displayed is sortable and filterable

Tool of Tools

Not displaying here, all samples have real, confidential family data

But imagine an Excel report with info on all your families, and then you can click on buttons to see it organized by relevant factors

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Tool of Tools Payment Standard Tool

Guide provides explanations of: HCV Analysis tool

Drill down Tool

Payment Standard tool

Description

Overview

Instructions

PS Tool Guide - a little buried.

Who can find ‘Waldo’?


PS Tool Guide – Waldo!

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Tool of ToolsPayment Standard Tool

Waldo! 6 page document


Instructions are detailed

Creating adhoc report

Inputting FMRs

Inputting payment standards


There’s also tool notes: quick info for reference

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A shorthand reference is also shown


Purpose: to analyze the impact of payment standard changes on your expenditures

Projects new expenditures, considering when annual reexams are due

Does not consider new admissions / moves

Analyzes rent burdens for families

Current and projected


You will need to load PIC data

Just click and point to the IMS Report

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PIC Analysis You may want to see the

current analysis before proceeding further

PIC Analysis provides at a glance information on existing families and their current payment standards by voucher size


For FMR, select your PHA area from a drop down, and data will autofill


Enter proposed PS in the yellow fields, tool calculates % of FMR

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Or, you can select the Payment Standards via Percent option


You must enter date of change, and information on annualized rent and utility allowance changes


Outcomes are what are important Shows spread between bedroom sizes

Shows overhoused families

Shows rent burdens

For overhoused

For not overhoused

More on rent burdens in a moment

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Tool of ToolsPayment Standard Tool

Example of PHA that input dollar changes to PS for 2019


Projected annual HAP costs/changes of the new payment standard


New admissions, participant family moves are not considered

Still, extremely valuable tool to see how PS changes may impact HAP expenditures

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Rent Burdens

Many PHAs state in their admin plan that family rent burdens will be considered when establishing PS

Rent Burdens HUD

monitors rent burdens

24 CFR 982.503(g)


Once all data is input, charts will display:

First, rent burden, broken by bedroom size

Current, end of current year, future years

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Payment Standards

Before making a final decision, take look at the Subsidy Standard Analysis

Payment Standards

Breaks rent burdens down by overhoused and not overhoused

Payment Standards

If you are satisfied with the payment standards, you can quickly move them to the TYT

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Closing If you are not familiar with these tools:

Watch videos

Access tools and practice, practice, practice

And remember, new videos are planned

Please take a moment to give us your feedback on this session

Open The Housing Conference app on your phone and click on the “Schedule” iconChoose a day, then scroll down to find the title

of this sessionOr search for the session title in the search boxClick on the title and scroll down to “Surveys”Click on “Please take a moment after this

session to give us your feedback” Thank you!

Documents

Your Money at Workcart.nanmckay.com/Collateral/the-housing-conference/hud-funding-tools.pdf · Your Money at Work What Success Looks Like The PHA maximizes dollars and assists as