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Preventing Shortfall: Lessons Learned

Posted by NMA on Sep 1, 2016 2:27:29 PM

NMA's Steven Rosario will lead a session on preventing shortfall in the housing choice voucher program

In his current role as HCV program director, NMA's Steven Rosario oversees the operations of Miami-Dade County’s housing choice voucher program. He previously served as director of some of the largest voucher programs in the nation, administering more than 45,000 vouchers in Chicago and San Francisco.

With extensive experience in program and project designs, Steven is a high-energy, fiscally conscious, and goal-driven leader who has earned a reputation for building and leading strong and collaborative team efforts. He approaches each new challenge with a flair for innovation, creative problem-solving, and measured risk-taking to drive positive change in affordable housing programs. Steven will be presenting the following session at The Housing Conference.

Executive Leadership for Performance Excellence

Preventing Shortfall: Lessons Learned
Presenter, Steven Rosario

Housing authorities have historically been challenged with maximizing utilization without going over budget authority. This session will cover various funding scenarios and highlight the pitfalls that may result in a program shortfall. Topics to be discussed include:

  • Program reserves: How much should you keep?
  • PHA vs. HUD held reserves
  • Disbursements vs. budget authority
  • Prior calendar year HAP payments
  • Cash vs. accrual accounting
  • VMS updates
  • Utilizing results of 2-year tool
  • Impact of the PUC

The session will provide you with the guidance to ensure a PHA’s financial and program operations teams are tracking, updating, and reporting accurate and meaningful data. Along with this, the session will provide PHA with strategies on working with HUD’s shortfall prevention team.

The Housing Conference, presented by NMA and HAI Group, will spotlight three tracks: an executive track, a regulatory track, and a best practices track. Go here to view a list of the session descriptions that have been published so far.

Topics: executive management, financial management, HCV utilization, The Housing Conference, VMS

RAD: Post-Closing Operational Transition for PBV

Posted by NMA on Jun 24, 2016 10:43:22 AM

Jennifer Green of the Indianapolis Housing Agency, speaking on the RAD panel at The Housing Conference

With more than three decades of experience in affordable housing development, Cindi Herrera currently leads the Rental Assistance Demonstration team at NMA, completing relocation of nearly 4,000 households to date under the federal Uniform Relocation Act. She has served as an executive in various PHAs and as president and CEO of a large nonprofit affordable housing development and management company. Cindi will be presenting the following session at The Housing Conference in San Antonio this September.

Regulatory Knowledge for Smart Management

RAD: Post-Closing Operational Transition for PBV
Presenter, Cindi Herrera

Submitting an application to the Rental Assistance Demonstration and getting through a CHAP (commitment to enter into a housing assistance payments contract) is a long, arduous process. Now that you've been approved — or are waiting for approval — what's next? This session will focus on the operational tasks necessary to successfully complete the transition from public housing operating subsidy to project-based vouchers under RAD.

Participants will work through a checklist of post-closing procedures, including the process and timing for completing EOP (end of participation) in public housing, new admission and first recertification requirements for HCV, phase-in of rent increases, what to do when the tenant rent is greater than the contract rent, RAD rehab assistance payment procedures, capital and RHH fund budget revisions, transfer of public housing operating reserves, establishment of rehab and replacement reserves, tenant protection rights, accounting for HAP subsidy in year one, VMS reporting in year one, and more.

Register online or email for more information. Don't delay, less than a week left for early bird pricing! Plus, you’ll have the opportunity to reserve a free, one-hour Q&A session with one of our NMA experts before they're all gone.

Topics: PBV, RAD, The Housing Conference, VMS

HUD issues notice on administrative fee reserves

Posted by NMA on Oct 8, 2015 2:58:19 PM

This week HUD’s Office of Public and Indian Housing (PIH) issued Notice PIH 2015-17 to provide guidance to PHAs on the use and reporting of administrative fee reserves, or unrestricted net position (UNP) accounts. The seven-page notice reissues with minor revisions Notice PIH 2010-7, providing updated guidance on the reporting of admin fee reserves and use of reserves when faced with insufficient funding. The new notice responds to recommendations by the Office of Inspector General (OIG) to implement controls and requires reconciliations of UNP. Below is a summary of the major differences:

  • In terms of background, the new notice references the requirements to maintaining UNP, rather than UNA accounts. On an annual basis, PHAs credit to the UNP the total of: (1) The difference between program admin fees and program admin expenses for the fiscal year; plus (2) The net of revenue and expenses related to the administration of unabsorbed portability units; plus (3) Interest and other income earned on the investment of admin fee reserves; plus (4) The portion of fraud recoveries actually collected that flows to the admin fee reserves; plus (5) Any other miscellaneous admin revenues or equity transfers to the HCV admin fee reserve; minus (6) Any expenditures from the reserve account to cover excess HAP costs not covered by HAP funding and HAP reserves or other allowed uses of admin reserves.
  • Regarding use of administrative fees, the notice clarifies that if a surplus of administrative fees remains at the end of the PHA’s fiscal year (FY), the amount by which the program admin fees paid by HUD for the FY exceeded the PHA’s HCV administrative expenses for the FY is added to the admin fee reserves.
  • No substantive changes were made to the sections regarding pre-2004 and post-2003 admin fee reserves.
  • In terms of the general depository agreement, the new notice clarifies that form HUD-51999 must be executed between the PHA and the depository, and must include all deposit account numbers in which HCV program funds are held.
  • For reporting requirements, the new notice clarifies that PHAs must report post-2003 admin fee reserves separately from pre-2004 reserves on the FDS income statement in the details of the line 11170 memo account, and that specific FDS detail lines for pre-2004 and post-2003 admin fee reserves have been added to the FASS-PH system for the HCV program. These new line items must be completed and can be found in the detail link of FDS line 11170 on the income statement tab of the HCV program. As currently programmed, these lines must also include amounts associated with FDS line 508.4, Net Investments in Capital Assets. In a future FASS-PH release, FDS line 11170 will distinguish admin fee reserves and net investment in capital assets that will reconcile to FDS line 512.4, UNP.
  • The new notice also states that UNP must be reported in VMS on a monthly basis in the field currently titled Unrestricted Net Assets (UNA) as of the Last Day of the Month, which will be changed in a coming VMS release to reflect the new language. Further, the new notice lists exactly what the UNP reported in the VMS should consist of, in addition to clarifying that excess admin fee disbursements from HUD are not added into the UNP on a monthly basis because these amounts to not become “unrestricted” until the end of the FY. During the FY, admin fee disbursements may only be used to cover current year admin expenses.
  • The notice states that if a PHA has to dip into the UNP to cover excess admin expenses, it still may not increase the UNP during the FY by adding in excess current year admin fees in later months, even if the UNP balance remains below the previous FYE balance. Overall excess admin expenses may decrease the UNP from month to month during the FY, but excess admin fee disbursements from HUD should not generally increase the UNP from month to month during the FY. Only fraud recovery, port-in, interest, or other non-HUD revenue may increase the UNP from month to month during the FY.
  • In terms of use of HAP funds, the new notice states that restricted net position (RNP) is reported in VMS in the field currently titled Net Restricted Assets as of the Last Day of the Month (likewise to be updated), and that RNP is the amount reported on the FDS balance sheet at line 511.4. The notice also lists what RNP should consist of as reported in VMS, and notes that as of January 1, 2012, interest earned on HAP and HAP investments was no longer a part of the RNP. As of January 1, 2014, the PHA may retain up to $500 in interest earned on HAP and HAP investments, but those funds are to be recorded and reported as administrative revenue flowing to the UNP.

No substantive changes were made regarding sanctions, however the new notice does state that the Quality Assurance Division (QAD) will continue to conduct on-site and remote reviews of PHA financial reporting and recording, and that incorrect reporting and recording will result in review concerns or findings for which corrective action plans must be developed by the PHA.

NMA offers two HCV finance classes: HCV Financial Management, with upcoming dates in Dallas and Cleveland, and HCV Financial Accounting and Reporting, with upcoming dates in Las Vegas, Louisville, and Seattle. Not sure which one to take? Email for further guidance.

Topics: FASS-PH, financial management, PIH notices, VMS

HCV funding disbursements for February and March 2015

Posted by BEMuser on Jan 26, 2015 11:29:27 AM

HUD’s Financial Management Division (FMD) recently sent a letter to PHA executive directors describing the calculation and disbursement of renewal funding for February and March. The allocation of HAP renewal funds for calendar year (CY) 2015 has not yet been determined pending completion of Voucher Management System (VMS) data entry for CY 2014. February and March disbursements are based upon each PHA’s CY 2014 prorated renewal eligibility.

As explained in the letter:

  • February and March disbursements were determined on the basis of PHA-reported HAP expenses for November 2014, the most recent month of validated VMS data.
  • CY 2015 allocations will be calculated and communicated to PHAs before calculation of the obligation for April 2015.

To receive updates and analysis on the latest PIH news, subscribe to NMA’s PIH Alert and receive a daily email with breaking news and other important information for PHAs and housing professionals.

Topics: financial management, VMS

HCV program: Get ready for 2015

Posted by BEMuser on Jan 15, 2015 1:06:33 PM

Last week HUD’s Office of Public and Indian Housing (PIH) sent out a letter to PHA executive directors to help them plan their 2015 budgets for the housing choice voucher (HCV) program. The letter provides important information and guidance about budgeting for next year. Below are just a few highlights:

  • Calendar year (CY) 2015 voucher renewal funding will be based on housing assistance payment (HAP) expenses for CY 2014.
  • January 22 is the deadline for reporting all CY 2014 leasing and housing assistance payments (HAP) expenses in the Voucher Management System (VMS).
  • PHAs should review Notice PIH 2013-28, which provides guidance on the use of outside sources of funds for HAP expenses.
  • HUD does not plan to offset excess funds this year, so PHAs will receive their full allocation.
  • Administrative fees for January and February have been advanced based on the most recently validated eligibility at a proration of 74 percent.

To receive updates and analysis on the latest PIH news, subscribe to NMA’s PIH Alert and receive a daily email with breaking news and other important information for PHAs and housing professionals.

Topics: financial management, VMS

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