Ann Arbor Housing Commission

Operational Needs Assessment

Preliminary Report to
Ann Arbor City Council
January 11, 2010

Strategy, Structure, and Staffing

Recommendations
 Ann Arbor Housing Commission
Operational Needs Assessment
Project Objectives (Partial List)
• Evaluate the future viability and sustainability of the AAHC.
• Conduct a comprehensive evaluation of the AAHC operations,
including:
– Current organizational structure
– Operational practices
– Customer service practices
• Assess the employee staffing model and compensation.
• Assess the AAHC operations as compared to HUD regulations and
current public housing best practices.
• Evaluate the relationship between the City of Ann Arbor and the
AAHC to assess the most beneficial relationship for the
Commission, including assessing total separation from the City,
continuation of the existing City/AAHC relationship, or development
of a closer City/AAHC relationship.
 Ann Arbor Housing Commission
Operational Needs Assessment
Assessment Tasks Completed
• Staff interviews
• Community/stakeholder interviews
• Resident focus groups
• Financial analyses
• Staffing and compensation analyses
• Benchmarking
• HUD review of preliminary recommendations
Ann Arbor Housing Commission
Operational Needs Assessment
Mission
Ann Arbor Housing Commission (AAHC) seeks
to provide desirable housing and related
supportive services for low-income individuals
and families on a transitional and/or permanent
basis. AAHC will partner with housing and
service providers to build healthy residential
communities and promote an atmosphere of
pride and responsibility.
 Ann Arbor Housing Commission
Operational Needs Assessment
Mission Performance
• Desirable housing: Outdated, poorly
maintained public housing
• Supportive services: Limited and not
meeting the current needs of residents
• Partnering: Isolated agency with limited
involvement in community initiatives
 Ann Arbor Housing Commission
Operational Needs Assessment
Key Findings
• The AAHC operates in a state of constant
instability
– HUD consistently under-funds its programs (~82%)
– HUD funding decisions are made late in the
operational year leaving little time to adjust spending
– Under-funding has led to continual AAHC sub-
optimization of operations
 Ann Arbor Housing Commission
Operational Needs Assessment
Key Findings
• The AAHC has failed to secure other
funding sources (non-HUD)
– Unable to provide badly-needed support
services to meet growing resident needs
– Cannot make up for HUD shortfall
– Has deferred important maintenance and
modernization of housing stock
 Ann Arbor Housing Commission
Operational Needs Assessment
Key Findings
• The AAHC has been organized to address
problems and resulting chaos, not to prepare for
the future
– The AAHC does not have a planning process
– The AAHC Board has been focused on operational
challenges not future planning and strategy
– The AAHC is 10 to 20 years behind benchmark
housing commissions in terms of redevelopment and
modernization of the public housing stock
 Ann Arbor Housing Commission
Operational Needs Assessment
Key Findings
• Public housing lacks facilities
management capabilities and the
resources to properly maintain its aging
housing stock
• The current public housing stock can be
better maintained but is outdated and
inherently sub-standard
 Ann Arbor Housing Commission
Operational Needs Assessment
Key Findings
• Section 8 and public housing are
independent programs that require
dedicated management and focus
• The Section 8 program has insufficient
oversight (with no direct manager and staff
lacking a clear direction)
 Ann Arbor Housing Commission
Operational Needs Assessment
Future Viability and Sustainability of the AAHC

• Viability is dependent on modernization of housing

stock and strengthening of supportive services
• Sustainability is dependent on securing new
sources of funding and developing partnerships
with developers, service providers, and allied non-
profits
 Ann Arbor Housing Commission
Operational Needs Assessment
Relationship to the City
• No benefit to separation from City
• Complexity of the process makes it highly
undesirable
• AAHC may not be sustainable as an
independent entity
• AAHC requires a closer relationship with
the City
 Ann Arbor Housing Commission
Operational Needs Assessment
Recommended Strategic Objectives
• Rehabilitate and redevelop AAHC properties
• Expand funding beyond HUD
• Strengthen resident support services
• Strengthen management oversight
• Improve internal efficiencies and process
performance
 Ann Arbor Housing Commission
Operational Needs Assessment
Key Strategies and Actions
• Focus the AAHC on rehabilitation and
redevelopment of its properties
– Hire an Executive Director with development and
financing experience
– Partner with other affordable housing service
providers
• Develop alternative funding sources and expand
supportive services
• Strengthen accounting/financial management
 Ann Arbor Housing Commission
Operational Needs Assessment
Key Strategies and Actions
• Strengthen Section 8
– Hire a Section 8 Program Manager
– Strengthen management and financial
oversight
– Improve internal processes
– Fully utilize available technology
 Ann Arbor Housing Commission
Operational Needs Assessment
Key Strategies and Actions
• Outsource maintenance
– Achieve economies of scale
– Improve maintenance planning and
management
– Link to job training and supportive employment
programs
 Ann Arbor Housing Commission
Operational Needs Assessment
Outsourcing Maintenance
• Build a partnership with an organization with a complimentary mission
• Substantially improve facilities management capabilities, improve
maintenance services, and reduce unit turn-around time at the same or
reduced cost
• Establish stringent requirements for responding to RFP
• Establish service-level requirements in maintenance contract
• Gradual transition
• Job training program – if sustainable
 Ann Arbor Housing Commission
Operational Needs Assessment
Maintenance Staffing Recommendations
• Temporary positions (2) eliminated upon
execution of initial contact with
maintenance provider
• AFSCME employees absorbed elsewhere
in the City as positions become available
 Ann Arbor Housing Commission
Operational Needs Assessment
Compensation Recommendations
• Formally adopt 90 percent of market mid-
point pay policy
• Maintain current AFSCME wage rates
 Ann Arbor Housing Commission
Operational Needs Assessment
Staffing Recommendations
• Make Executive Director and Deputy Director
positions regular full-time
• Executive Director focused on strategic
planning, major rehabilitation projects, and
redevelopment
• Deputy Director focused on operations and
grant writing
 Ann Arbor Housing Commission
Operational Needs Assessment
Staffing Recommendations
• Elevate Accounting Clerk position to
Financial Analyst (Accountant 1) and add
second position (one for public housing -
one for Section 8)
• Existing Finance Manager better able to
support Executive Director, Commission,
and strategic planning and development
 Ann Arbor Housing Commission
Operational Needs Assessment
Staffing Recommendations
• Create Section 8 Program Manager
position
– Responsible for improving program
standardization, compliance, and efficiency
– Strengthen financial management of program
• Reclassify Section 8 Waitlist Clerk to
Program Assistant
 Ann Arbor Housing Commission
Operational Needs Assessment
Staffing Recommendations
• Make interim Site Manager positions (2)
regular full-time Residency Managers
– No longer responsible for direct supervision of
maintenance employees
– Greater emphasis on resident engagement
and the provision of supportive services
 Ann Arbor Housing Commission
Operational Needs Assessment
Staffing Change Timetable
• Personnel actions must begin immediately to
meet AFSCME and Teamster MOU
requirements to eliminate temporary and interim
positions by March 31, 2010
• Current interim positions require posting and
selection process
• Housing Commission to begin Executive
Director selection process immediately
• Represented positions subject to Union contract
posting and selection rules
 Ann Arbor Housing Commission
Operational Needs Assessment
Financial Implications
of Staffing Recommendations
• Incremental cost of changes: $228,163
• City supplemental funding commitment:
$90,000 (FY10 and FY 11)
• Unfunded amount: $138,163 (FY10 and
FY11)
 Ann Arbor Housing Commission
Operational Needs Assessment
Funding Strategies
• Prioritizing new positions and implementing as
funds become available
• AAHC reserves
• Funds held by affiliated non-profits
• City in-kind services, such as vehicle
maintenance, grounds maintenance, etc.
• Maintenance vehicle sale or lease
• City of Ann Arbor general fund or reserves
 Ann Arbor Housing Commission
Operational Needs Assessment
Major Issues To Be Resolved
• Securing transitional funding for key positions during the
implementation period
• Maintenance outsourcing transition
• Integrating maintenance management technology with
outsourced provider
• Management and funding cycles for job training and
supported employment programs
• Securing financing for major rehabilitation and
redevelopment in the current economic conditions
 Ann Arbor Housing Commission
Operational Needs Assessment
Needed Support from Council
• Clearly define qualifications for future AAHC
Commissioners and strengthen selection
process
• Support AAHC as a City agency and an integral
component of broader efforts to assure
affordable housing
• Provide resources for transition to sustainable
operations and strategic redevelopment