Creating opportunity for low income people
Previous Trainings 2
Previous trainings by Neighborhood Partnerships include:
JUNE 19, 2008: Restructuring and Refinancing Affordable Housing Projects
APRIL 2, 2008: Asset and Financial Management Peer Support Network Training
JUNE 6 & 20, 2007: Managing Capital Improvements and Replacement Reserve Analysis
APRIL 19, 2007: Board and Staff Roles in Financial Management
MARCH 13—14, 2007: Exit Strategies for LIHTC Projects
JUNE 19, 2008: Restructuring and Refinancing Affordable Housing Projects
Robin Boyce, Housing Development Center
Leon Laptook, Community Development Law Center
While we’re reluctant to admit it, sometimes projects don’t perform as planned. This workshop explored what can be done to assist exiting underperforming properties. it addressed planning and managing restructures and refinances of property, including planning and financing anticipated or unanticipated capital improvement projects.
The training included:
- Assessment of properties operations, including occupancy and financial performance, performing a review of existing debt terms and market constraints, and strategies to assess capital improvement needs and reserves.
- Developing a restructuring plan—including asset/property management changes, rehabilitation needs, and refinancing options.
- Developing disposition policies and strategies.
The training was targeted towards more experienced housing development and asset management staff who already had basic knowledge in reviewing financial information and loan documents on projects.
Table of Contents
NW Indices of Financial Performance
Summary of Net Cashflow and Operating Expense to Revenue Ratios
Solving Vacancy Issues
Instructions for 15 Year Projections
Clara Vista Affordable Housing Finance Article
Asset Management Group Analysis
Property Management Group Repositioning
PowerPoint Presentation
APRIL 2, 2008: Asset and Financial Management Peer Support Network Training
Robin Boyce, Housing Development Center
Kay Sohl, Technical Assistance for Community Services (TACS)
The IRS 8823 Audit Guide: In January 2007 the IRS made some significant changes to the IRS audit guide, outlining the criteria for 8823s, such as changing the available unit rule, eligible basis, transfers, etc. OHCS presented Oregon’s interpretation of these new rules.
IRS 8823 Audit Guide
IRS8823 Audit Guide Analysis
IRS 8823 State Audit Guide
IRS 8823 State Audit Guide Changes
OHCS On-Line Reporting: Oregon Housing and Community Services’ new online reporting system for budget forecasts and income and expense statements was rolled out in 2007. OHCS’s John Skelton discussed filling out the report and the benefits of such a system.
OHCS Online Reporting Materials
Asset and Financial Management Training: HDC and TACS presented information focusing on defining the roles of Asset Managers and Financial Managers in ensuring the health of the nonprofit affordable housing organization and the information each needs from the other. TACS presented the core requirements of Generally Accepted Accounting Principles and HDC presented the financial information required for sound asset management practices, including ongoing analysis of the financial performance of affordable housing properties. Presented were challenges inherent in maintaining grant compliant financial records on the accrual basis of accounting while also maintaining the capacity to utilize cash basis accounting to meet the reporting requirements of lenders focused on cash flows.
JUNE 6 & 20, 2007: Managing Capital Improvements and Replacement Reserve Analysis
Craig Kelley, Housing Development Center
Molly Rogers, Housing Development Center
Eli Spevak, Housing Development Center
This training was designed to assist Community Housing Development Organizations (CHDOs) with strategically positioning themselves to be able to maintain the physical condition of their housing portfolios over the long term. A recent survey of Low Income Housing Tax Credit Projects in Oregon found that most owners do not know the capital needs of their projects, and are not sure if they have sufficient reserves.
Structured as hands on work sessions, the training reveiwed capital needs assessment formats and approaches, and taught CHDOs how to complete a replacement reserve analysis. The course was targeted towards housing development, facility managers and asset management staff.
The training included:
- Approaches to capital needs assessments: internal versus external evaluations, when they are needed, sample scope of work and report formats.
- Outlining a capital budget to reflect rehabilitation needs and recapitalizing options.
- Developing strategies to oversee the property manager’s maintenance work and performance indicators for maintenance.
- Preparing annual capital improvement budgets, including how to approach this task and what funders allow. Preparing a replacement reserve analysis to evaluate annual deposit needs, or future recapitalization needs.
APRIL 19, 2007: Board and Staff Roles in Financial Management*
Kay Sohl, TACS
Leon Laptook, Community Development Law Center
Nonprofit affordable housing and community economic development is a tough business. Successful organizations must develop Board and management capacity to evaluate financial choices and understand the financial consequences of activity in housing development, asset and property management, resident services, economic development projects, and fund raising activity. This new full day workshop was designed for Board Members, Executive Directors, and Financial Managers of community development corporations. In the course participants learned about State of Oregon and IRS requirements and expectations for Board oversight and the information and skills Board members need to have to provide effective leadership for their CDC. Also examined were key staff functions and the ways CDCs assign responsibility for monitoring financial performance and achieving financial outcomes, and financial decision-making as it applies to executive directors, fiscal managers, housing developers, asset managers, fundraisers, and program managers.
*This training was also administered on January 18, 2007 and November 9, 2006.
MARCH 13—14, 2007: Exit Strategies for LIHTC Projects
Joel Rubenzahl
This course taught participants to evaluate how their low income housing tax credit project is performing compared to initial expectations. They learned whether changes to their strategies were needed to optimize the nonprofit owner’s position, especially with regard to purchase of the project at the end of the 15-year compliance period. This course dealt specifically with fair market, exit taxes and alternatives to continuing partnerships for the full 15 years. Participants were asked to bring project documents with them so that discussions and examples focused on the real-life situations many nonprofit organizations are facing with LIHTC projects.