III. MANAGEMENT, MAINTENANCE, AND

NEIGHBORHOOD SERVICES PLANS

MANAGEMENT PLAN

The Community Stabilization Program requires a high degree of coordination and cooperation among residents, local government, and HUD. The operational basis for achieving this coordination is the management plan. The management plan addresses policies, procedures, and rules governing the day-to-day operation of the Community Stabilization Program and includes a maintenance plan and a neighborhood services plan.

The master lease requires that a "mutually acceptable" management plan be adopted within ten days of executing the master lease. However, the management plan should be formulated well before the rehabilitated properties are occupied.

The development of a management plan is described in this chapter. For purposes of illustration, it is assumed that the city will create an independent entity to act as project authority. If it chooses another organizational structure, the management plan would be modified to suit it.

Role of Sponsor and Delegation of Authority

If it is decided that an independent project authority is the most effective vehicle for managing the Community Stabilization Program, the city takes appropriate legislative action to create the authority. Such an action should outline the powers and responsibilities of the project authority, including:

appointment of a chairman and an executive director; and

authority to hire personnel.

Within this legislative framework, the management plan should describe in detail the responsibilities of the project authority, its staff, chairman, and executive director.

Primary responsibility for the formulation of policy, liaison with HUD, and liaison between the project authority and other municipal departments rests with the chairman, while the executive director should be delegated the authority for day-to-day management of program operations. The executive director should report to the project authority at its regularly scheduled meetings and consult with the chairman to obtain guidance on policy matters. Project authority staff should be responsible for tenant screening, routine clerical work, report preparation for HUD, normal maintenance, and the implementation of the neighborhood services plan.

As tenant under the master lease agreement, the project authority is responsible for subleasing rehabilitated properties to qualified tenants. The standard duration of a sublease is two years; it may be extended to a third year only with HUD's written approval.

It is important that clear channels of communication exist between the city, the HUD field office, and the HUD central office. To facilitate this process, the management plan should identify those persons in each of the participating agencies who are responsible for various aspects of the project.

Personnel Policy and Staffing Arrangements

The personnel policy section of the management plan details the standards governing hiring, staffing requirements, job descriptions, and personnel policy. The project authority is required to develop hiring policies and procedures in conformance with federal, state, and local equal employment opportunity requirements. In addition, the authority should state its intention to make efforts to ensure minority representation in employment. Qualified residents in the project community should be sought to fill positions in the program, thus providing employment opportunities for residents as well as involving them in the management of the program.

The executive director and staff are directly responsible to the project authority. The authority determines the staffing levels needed to operate the program and is responsible for hiring. The number of staff members required depends on such factors as the scope of the problems to be solved, the number of properties involved, the location of the properties, and the programs and services provided under the neighborhood services plan. In addition to full-time staff members employed by the project authority, personnel from various municipal departments will also provide services on a part-time or "as needed" basis. An organization chart should be developed that illustrates the

lines of authority and relationships among the various program participants.

Finally, the personnel policy section should detail the following

The project authority must develop an effective marketing program early in the project, supplemented by an Affirmative Fair Housing Marketing Plan. This plan outlines the project authority's intent to market properties in a manner consistent with equal opportunity laws.

This section of the management plan should detail the marketing techniques to be employed, including newspaper, television, and radio advertising, brochures, and presentations before interested groups such as labor unions, civic groups, and community organizations. The marketing plan should address both the initial rental period immediately after renovation as well as the period following, when leases expire and vacancies occur.

A model rental property should be designated so that prospective renters may inspect it. The master lease allows the project authority to make use of one of the properties as an office and/or model unit. The days and times during which the model unit may be inspected should be specified in publicity materials.

Procedures for Determining Tenant Eligibility

Tenant selection is a critical element in the management program. A formal screening process should be developed by the executive director and submitted to the project authority for approval. The actual

screening process, to be conducted by the executive director or his/ her assistant, should include the following steps:

substantiating other information provided on the appli-
cation; and

submitting tenant applications to the project authority
for action.

A representative procedure for tenant selection is shown in Figure 1.

The screening process should enable the project authority to make an informed decision on the qualifications of an applicant. To elicit personal and financial information about the applicant, a standard application form should be developed. The prospective tenant should also submit supporting documents, such as:

W-2 forms;

employer verification letter with job title, tenure, rate
of pay;

copies of divorce or separation papers with alimony
amounts;

statements of earnings to date;

any garnishment or bankruptcy papers; and

residence history.

An outside credit agency should be employed for a standard credit check. The prospective tenant will pay for this service through a nonrefundable application fee.

Once all information has been verified and the credit check returned, the prospective tenant must pass the "35 percent" and "50 percent" rules.. The 35 percent rule means that the monthly rent plus the estimated monthly utilities bill cannot equal more than 35 percent of the applicant's net effective monthly income (i. e., gross income minus Federal taxes withheld). The 50 percent rule specifies