As we know, public housing funding for April is at a 73% proration level. HUD plans to issue a second funding to bring the April proration level up to 79%.
The business of owning and managing affordable housing in decent, safe, and sanitary condition and in good repair remains our mission. PHAs need to plan more strategically than ever before. So, as all businesses must ask in tough times: How can we maximize dollars and cut costs?
Tip #11: Keep central office costs within budget.
Look closely at all the centralized functions the Central Office Cost Center (COCC) is performing. Are there centralized services that aren't cost-effective and can be eliminated? Do you really need an HR function, an in-house attorney, and other specialized staff, or would it be more cost-effective to secure those services from an outside vendor as needed?
Do executives and managers need secretarial staff? Many companies these days no longer supply such staff to executives and managers in light of computers and other automated systems to provide support. Reducing central staff that isn't fully utilized can reduce not only salary and benefit costs, but also other office support costs such as cell phones, office supplies, etc.
If the COCC is offering centralized specialized maintenance services to its properties, is the COCC at least breaking even on the cost of providing these services? Do you even fully know the complete cost of these services so that you can determine whether they are cost-effective?
Does the COCC really need this much office space? Could it be reduced? If your PHA is leasing its space, you may be able to reduce rent expense. Even if you own the building, a reduction in office space would reduce utility, janitorial, insurance, and maintenance costs.
Next: Working with sequestration in the public housing program: Tip #12
NMA senior associate Cara Gillette trains, consults, and provides technical assistance nationwide in fair housing, public housing management, hearings, economic self-sufficiency, and governing boards. Prior to joining NMA, Ms. Gillette served at the San Diego Housing Commission, administering its public housing and Section 8 waiting lists, serving as hearing officer, managing public housing, and overseeing resident economic development programs. She has previously written for the NMA blog about blended occupancy projects.
If you find that you need staffing help during sequestration, NMA can assist your agency with recertifications (done remotely), quality control, outsourced hearing officer services (done remotely), HQS inspections, and more. Email sales@nanmckay.com for more information.
