Transcript Document
Project Directors Best
Practices Training
NCALL Research, Updated October 2008
Throughout this slide
presentation, NCALL’s
recommended “best practices” will
be notated with a *BP.
The Grantee and Rural
Development Relationship
The Grantee and Rural
Development
Relationship
Maintaining a good relationship with
Rural Development is one of the most
important aspects of a successful
program
Partner to achieve goals
*BP
Ingredients for a
Successful Relationship
Respect
Communication
Appreciation
Common Goals
Courtesy
Mutual Commitment
Understood Expectations
Trust
In order to keep the lines of
communication open, hold regular
meetings with Rural Development. These
meetings:
*BP
Reinforce the concept of Rural Development in
the advisory role
Provide practical methods for resolving and
preventing problems
Improve Rural Development’s staff capability in
monitoring 523 grants
Quarterly Review Meetings
Weekly discussions
Will be discussed later
When will dockets be turned in
When will checks be signed
Suggestions of land or clients
Participant, supplier or subcontractor
problems
Monthly meetings
New ANs
New policies
Review progress
Discuss pertinent subjects
Grant Basics
See Guide for Definitions
of:
Mutual Self-Help
Participating family
Technical assistance
Grant Approval
RD will execute 1940-1 Request for
Obligation of Funds
Initial advance requested on 440-57,
Acknowledgement of Obligated Funds
Check Request
Amount here should cover remainder of first
month and second month
Subsequent requests cover one month
only
Grant Closing
Grant closed on date Grant Agreement is
executed
No expenses can be charged before that
date
Rural Development Manager authorized
to execute Grant Agreement
Grant Agreement
Very important document
Be aware of the requirements and terms
in agreement
Take time to read and understand it
Grant Closeout
Procedures
Construction
Must be completed before closeout
RD and local officials do final inspections
Certificate of Occupancy issued
Materials removed from lots
Landscaping complete
Equipment
Financial Report
All equipment must be accounted for
Lease and inventory records closed out
Report and audit submitted within 90 days
Complete accounting of grant funds
Refund to RD any unused funds
Staff
Depends on conclusion & continued
employment
Contracts/Consultants
Program Reports
Submit all reports to RD and T&MA Contractor
502 Accounts
Review and closeout agreements
Closeout and audit
Disposition of Records
Files should be kept, accessible to Rural
Development
Retain for 3 years
Program Criteria
Program Criteria
Mutual Self-Help Housing Program has
certain ideals that must be maintained
Participant labor tasks
TA Cost
Production
Service to VLI
Modest housing
Sweat equity
Participant Labor Tasks
Participants required to perform 65% of
tasks, can do more
Tasks broken down in Exhibit B-2
Skimping here cheats program and
participants
Discuss substitute labor
Use volunteers sparingly
Technical Assistance Cost
Keep track of TA cost
Used to judge effectiveness and
efficiency of organization
Stay within TA cost agreed upon
There is no more money available
Production
Build the number of homes in grant
agreement
Keeps organization operating within TA
cost
Grantees judged on accomplishing grant
requirements
Service to Very Low Income
Regulation requires service to at least
40% VLI
Can be harder to qualify
These households can greatly benefit
Make it a priority
Grant judged on this requirement
Modest Housing
Must be modest, safe and sanitary
Prohibited features:
In-ground swimming pools
Structures designed for income producing facilities
Lot size cannot be subdivided
Cost of property cannot exceed Rural
Development loan limit
Modest plans easier to build
Provides long-term affordability
Less expensive to maintain
Stretches 502 dollars
Equity
Participants expect to save money
Crucial to see significant savings
More than one way to save:
Participant labor
Bulk purchasing
Accurate cost estimates
RD may enact equity requirement
Grant Management
Management Basics
There are 5 basic functions of
management
Planning
Setting goals and objectives, policies,
procedures and plans
Thinking before acting
Organizing
Decides
how the work will be divided
and accomplished
Staffing
Task
of selecting orienting and training
employees
Directing
Guiding,
teaching and supervising
subordinates
Controlling
Determining
whether or not plans are being
met
Correcting deviations and shortcomings
Grant Oversight
Success depends on continuous
evaluation
Track financial status and program
operations
Recognize when spending and progress
are out-of-sync
Determine if a modification is necessary
Key
benchmarks – recruitment,
land, construction, finances
Review monthly fiscal report
Create and review construction
and recruitment schedule
Monthly Activities Schedule
Should have a monthly activities schedule
Implementation schedule
Critical Path Method
Chart that breaks down process into specific
steps (recruitment, loan packaging,
construction)
Predictor of progress
Tool to track progression
Shows schedule graphically
Monitor on a regular basis
Possible Problems
Problems can be overcome with planning
and direction
*BP Do not close the grant until the
construction can begin within 30 days
Recruitment is a continuous process
Keep searching for land
Program created with beginning & end
Plan submission of next grant application
Staff Meetings
Weekly staff meeting is effective
program management tool
Review weekly program objectives
w/ staff
Make sure to set aside time
Follow consistent pattern
Staff should share progress
Review previous week
Identify any problems
Discuss needed adjustments
State this week’s objectives
Monthly, establish objectives
Adjust production or expenses
Construction Staff Meetings
If construction staff cannot attend
weekly staff meeting hold
construction meeting
Discuss:
Materials needed
Inspection scheduled
Delivery problems
Subcontractor schedules and problems
Self-Help Participant Labor
Special tools needed
Construction problems
Review invoices and delivery slips
Check the cost control journal of each
participant
*BP Meeting
can be designed as time for
Construction Supervisor and Bookkeeper
to exchange delivery slips and CS must
approve all invoices
Grant Modification
Sometimes programs get off schedule
Problems must be assessed
If problems cause a change in
deliverables, expectations need to be
revised
State Director may authorize the Rural
Development Manager to execute grant
extension
Need has to be justified
Grant extensions need to be no more
than one year
Future performance needs to be based
on a workable plan
Analyze what caused problems
A Modification May Be Needed If:
Reports and observation show progress
lagging far behind goals
Difficulty recruiting eligible participants
Program criteria changes mid-stream
Significant over or under-spending the TA
grant budget
Inability to secure or develop land for
future groups
Changes in the market being served
The Modification Format
Give full commitment
Board of Directors should be notified &
play role in problem solving
Notify Rural Development
Provide in depth analysis
Compare planned and actual progress
Assess magnitude of the problem
Develop list of realistic strategies
Select best strategy
Implement recovery strategy
Assemble amendment request package
Include the following information:
Narrative description of the situation,
assessment, adjustments necessary
Rural Development amendment form 1944-I,
Exhibit C
Revised construction schedule
Expected results and impact
Avoiding Future Modifications
Project budget as accurately as possible
Project time frames realistically
Start groups on time, as projected
*BP Keep additional applicants on standby
Maximize the building season
*BP Keep group sizes adequate to make
them efficient
*BP Limit grant spending during slow
periods
Maintain strong enforceable subcontracts
Building Group Membership
and Labor Agreement
*BP Sample
recommended agreement included as
Attachment 3
Agreement between families and grantee
Sets up expectations
Lays out rules
Enforcement of agreement is essential to
success of group
Be consistent
Do not show favoritism
Land Development
Key ingredient to the program
Approach the search in an organized and
systematic manner
Controlling land is critical
Many other activities depend on it
Interim financing may be necessary
523 funds may not be used to option or
purchase land
Contact RD for ideas on where to look
Land Survey Criteria
Land must be in a rural area
Lot size – can not be subdivided
Roads – contiguous to and must have direct
access to a street, maintained road or driveway,
must be paved or all weather
Water – approved well or public central water
system
Sewer – approved public sewer or septic system
Site approval – State Director delegate site
approval responsibility to appropriate person
Land Survey Resources
7CFR Part 3550
1924-A
1924-C
RD Community Development Manager
Health Department
County or City planner, engineer, or city planner
Soil Conservation Service Soils Book
County Court House, Tax Office, Recorder of
Deeds
Utility Companies
Land Survey Process
Preparing a site search map
Identify land that is completely ineligible
Identify and plot locations with desirable features
Plot drawbacks
Talk to county governments or local universities
to help with survey process
Windshield survey – review sites for:
Topography, flood plains, erosion
Access to public roads, vegetation, existing
structures
Unique features
Land analysis form
Investigate ownership
Check into tax records
Assume that every parcel is for sale
Complete form, Attachment 6
Selecting the site
Assess suitability of the location
Check zoning
Look for community facilities
Make sure it fits RD guidelines
Would you want to live there? Why or why not?
Assess physical characteristics
Determine acquisition and development costs
Optioning vs. Purchasing
Option agreements
Contract between seller and potential buyer
Buyer not obligated to buy, seller obligated to sell
Options should be between seller and participant
Sample Option in Attachment 5
Option language in Attachment 6
Purchasing land
Grantees can purchase land for later resale to
participants
Can be beneficial when purchasing multiple lots
523 funds cannot be spent for this purpose
Interim financing necessary
Interim financing
No single pot of money available
Seller financing may be an option
AHP, CRA, CDBG, HOME, Housing Trust
Funds
HAC
Other private corporations or foundations
See NCALL’s Funding Sources Guide for more
information
Required Reports and
Meetings
SHARES
Self-Help Automated Reporting and Evaluation
System
Internet ready application
Tracks, manages, evaluates and reports on
program status
Enter data on regular basis
RD reviews information
Used for monitoring, reporting, statistical
information
See SHARES Manual
Monthly Report
All monthly SHARES data needs to be
entered by the 5th of the month
NCALL pulls monthly SHARES reports,
analyzes them
NCALL emails out a monthly report to
grantee and RD
Quarterly Reports
Rural Development responsible for fiscal and
programmatic oversight and monitoring
Quarterly report is the primary monitoring tool
SHARES generates this report, Attachment 7
*BP Contractors recommend also complete
supplement, Attachment 8
Report must be accurate, complete, on time
Due 15th of each month following end of quarter
Report covers key program benchmarks
Determining EU’s
Equivalent Units
Progress of program judged by
accumulation of EUs
Numbers calculated by SHARES
Phase I – Application submitted, 10%
Phase II – Loan closing, 10%
Phase III – Construction 80%, broken
down into task points in Exhibit B-2
Points may not be split
Role of Review Meetings
Opportunity to review progress and solve
problems
Increase effective communications
Reduce potential problems
Allow for crucial goal setting
Enable up-to-date monitoring of the
program
Review Meetings
Meetings should include:
Grantee staff
Rural Development Managers
Community Development Managers
T&MA Contractor staff
Grantee Board members should attend quarterly
Set an agenda
Determine who will lead the meeting
Keep minutes, document decisions made
Be prepared for the meeting
Review activity plan and financial report
*BP Sample
Agenda
Read minutes or notes from previous meeting
Grantee progress report
Revision/ update of grant schedule per group
Review TA Cost, EU’s
Resolution of problems
Additional items
View self-help homes
Set next meeting date
T&MA Contractor’s
Review
Requirement to conduct an initial
assessment of all grantees to review:
Grantee’s performance
Organizational and financial management
training needs
Planned level of production by quarter and
building group
Leveraged financing for operational and
mortgage loan funds
NCALL conducts an annual F.A.V.O.R.
Board of Director’s Annual
Self-Evaluation of the Program
Annually the Board is required to conduct
annual evaluation
Work may be done by board members or
it may be contracted out
A sample evaluation is provided in 1944-I
Grantees may use this one or develop
their own
Final Grantee Evaluation
Near end of grant period RD conducts an
evaluation
Determines how successful the grant was
Five criteria will be reviewed
# of participants served
% VLI
65% labor requirement
Costs kept within guidelines
Met other objectives in agreement
Rated as unacceptable, acceptable or
outstanding
Financial Management
Internal Control
Financial management important for
success
Internal control is a cornerstone of
financial excellence
523 Grant Management
Cost Allocation
The tracing of various costs
Direct or Indirect
Charge items consistently
Bank Account
Checking account must be interest bearing
Interest earned in excess of $250/yr must be
returned to RD
At least 2 bonded check signatories
Federal Accounting Requirements
Financial management system must meet
standards in OMB circulars
See Guide for listing of circulars
Financial Reporting
Monthly, form SF 270 must be submitted to
RDM, original + 2 copies
Written justification needed if request higher than
needed for next 30 days
Turn into RDM 15 days prior to beginning of month
Grantees encouraged to use budget tool to
show actual vs. budgeted
Accounting for 502
Dollars
Organizations may use either custodial or
individual accounts if approved by RD
Establishing record keeping procedures
Create file for each participant, including:
Bank account information
House cost estimate
Copies of paid invoices and check (with PO and
delivery slip)
Participant’s statement of withdrawals and deposits
Contracts with subcontractors
Reconciled bank statements
Other – Insurance forms, warranties…
Drawdown Procedures for Section 502
Monies
Cost Estimating
Accurate cost estimate is key to accounting
for loan funds
Subcontracted Work
Plan well to determine amount requested
Certain jobs are contracted
Purchasing House Materials
Require suppliers to set up individual
accounts and separate billing records
Verify condition and quantity of items with
delivery slip, sign slip
Reconciliation of Invoices
Invoices from suppliers need to be reconciled
with delivery slips
Invoices from subs need to be reconciled
with contract
Have Construction Supervisor verify
completed work before payment
*BP Do not pay for material unless the PO and
delivery slip are attached
Statement of Deposits and Withdrawals
Record of all disbursements made
Shows current loan balance and current checking
account balance
Signing of Checks and Payments to Suppliers
Participants and RD should never sign a blank
check
Participants should approve and sign the invoice or
payment voucher and then the check
Present to RD for approval and signature
RD will sign and return checks for grantee to send out
Schedule payments to take advantage of supplier
discounts
*BP
Reconciliation of Bank Statements
Must be done
Preferably by the grantee
Other General
Recommendations
*BP Build
homes according to plans, do not allow
changes
*BP Do not transfer materials from one house to
another without documentation
*BP Participants should not be allowed to
purchase materials for their homes
*BP Schedule payments to suppliers to take
advantage of discounts and maintain the line of
credit
*BP Keep participant check books locked in office
*BP Require suppliers to set up individual
accounts and billing records
Do not pay invoice unless it contains
lot number or participant name
*BP Avoid shared expenses between
participants
*BP NEVER deposit the participant checks
into the TA grant pool or pool participant
funds to be able to send one check to a
supplier or contractor
*BP If participants are on site working
prior to loan closing, use Participant
Waiver on NCALL’s website
*BP
Loan Purposes
Construction costs
Legal fees
Architectural and engineering fees, title clearance, loan
closing fees, appraisal, environmental, tax monitoring
Cost of special design features because of disability
Connection fees
Reasonable lender charges and fees
Real estate taxes due at closing and to set up escrow
account
Purchase and installation of essential equipment (ranges,
refrigerators, dishwashers, washers or dryers)
Participants may want to pay for some of these items
themselves
Site preparation, energy saving measures
Personnel
Staffing
Many factors determine staffing patterns
Staff of four is typical
Positions consist of:
Executive Director / Project Director
Group Coordinator
Bookkeeper
Construction Supervisor
Sample job descriptions in Attachment 14
Supervision
Key factors for effective supervision:
Be informed and keep others informed
Be approachable
Work to keep in touch
Measure performance
Act on problems
Develop atmosphere conducive to employee
motivation
Take disciplinary action
*BP
Share expectations with staff
Help establish goals and plan regularly
Expect and plan for corrective action
when problems arise
Advocate for employees
Give immediate feedback
Be consistent
Do not show favoritism
Give praise when a job is well done
Hiring
Important responsibility, requires time and effort
Before advertising:
Review job description
Set salary range
Choose closing date for applications
Decide what is needed from applicant
Sources for recruiting:
Within the organization
State employment office
High schools
Community organizations
Social service agencies
Employee referrals
Trade journals or newsletters
Define process of recruitment
Rank applications – acceptable or not
Look at resume for more than content –
organization, accuracy, appropriateness,
presentation
Interview applicants
Plan enough time for the interviews
Let the applicant do most of the talking
Take notes, be patient
Use two people to interview if possible
Devise a structured approach to interviews
*BP Sample structure in Attachment 16
Determine applicant’s interest in the job
Rank the applicants
Check references of top three candidates
Checking references
Important to verify what the applicant has told you
Get an indication of past performance
Obtain three professional work references
Letters are of little value
Use a phone call for references
Use non-directive questions that will elicit a yes or
no answer
Never reveal reference information to the
candidate
Make a decision and make the offer
Termination or Discharge of
an Employee
Termination is sometimes necessary
Reasons for termination:
Resignation
Mutual Agreement
Reduction in labor force
Unsatisfactory performance
Misconduct on the job
Retirement
Organizational policies should be in writing
protecting both employee and employer
Format to follow
Assures consistency
Expectations and consequences clarified in policies
Before firing, write down reasons for firing and
make sure there is just cause
Know the laws, unfair labor practice law
*BP Ask the following questions to ensure just
cause
Does any documentation exist that leads to
conclusions other than the imminent termination?
Who would be surprised by this termination?
Was there adequate investigation of alleged
misconduct before action was taken?
Is the person’s salary record contrary to that
of an unsatisfactory employee?
Have other employees been treated
differently under similar circumstances?
A General Labor Force Reduction
Caused by gaps in funding
Can happen frequently in this program
Have a plan for such occasions
The Termination Interview
Schedule it late in the day, in a private place
Terminate in first 10 minutes of meeting
Be direct
Give brief reason
Make no reference to age, race, sex
Describe termination pay, if any
Spend no more than ½ hour
Consider escorting them to clean out their
desk and leave the building
Have follow-up conversation the next day
to answer questions and make necessary
arrangements
Personnel Evaluations
Have a formal process by which to
evaluate staff
Have a policy requiring annual evaluation
for all employees
Reflects on accomplishments of past year
Analyzes the present
Looks forward to coming year’s
challenges
Sample form in Attachment 17
Personnel Files
Of utmost importance to agency
Must be orderly and complete
Should be located in same cabinet
Should be kept locked
Designate one primary staff person to
have access
Personnel files should include:
Job application
Resume
Job description
Hiring letter or documentation
Form I-9, Employment Eligibility Verification
Employments contracts and amendments
Salary increase notifications
Tax information
Performance evaluations
Emergency contact and doctor information
Personnel related memos or correspondence
Voluntary payroll withholding forms
Awards, citations, training certificates
Driver’s license and proof of current auto
insurance
Keep these files up-to-date
Personnel Policies
Defines what the agency can expect from its
employees
Defines what the employees an expect from the
agency
Purposes of personnel policies:
Fulfill legal requirements
Help to train new employees
Maintain positive employee relations
Ensure continuity, promote equity
Establish values, mission and direction
Determine action and set boundaries
Clarify responsibilities
Define lines of communication and accountability
Policies need to be reviewed by a lawyer
Approved by the Board
If organization is writing them now:
Decide who will be involved
Review other agencies’ policies
Investigate
Start with an outline
Write them
Have them reviewed by a lawyer and approved by the
Board
Review them with staff
Review them annually for updates and changes
Sample policy outline in Attachment 19
Fair Employment, Equal Employment
and Affirmative Action
We recommend that grantees review the
terms of their grant agreement as it pertains to
discrimination, affirmative action
Ensure the organization is in compliance
Grant agreement requires grantee not to
discriminate because of race, religion, color, sex,
marital status, national origin, age, mental or
physical disability
Also requires affirmative action in regards to
employment and equal treatment
*BP
Requirements apply to:
Employment
Upgrading
Demotion
Transfer
Recruitment
Recruitment advertising
Termination layoff
Rates of pay
Selection for training
The Fair Labor Standards Act
The FLSA is administered by DOL
Establishes minimum wage, overtime
pay, record keeping, child labor standards
Some workers are exempt
Typically exempt positions are Executive
Director or Project Manager
Secretary / Bookkeeper and Construction
Supervisor are generally nonexempt
See Guide for more details
Other Laws
Family and Medical Leave Act
Entitles eligible employees to take up to 12 weeks of unpaid
leave each year
Used for birth or adoption of a child or caring for spouse, child
or parent with a serious health condition
Law applies to organizations with 50 or more employees
Other agencies are adopting this law as a benefit to their
employees
Americans with Disabilities Act
Equal Pay
Fair Housing Laws (Covered in next chapter)
Employee Polygraph Protection Act
Wage Garnishment Law
Immigration and Nationality Act
Sarbanes-Oxley Act
Ten Most Forgotten or
Ignored Policies
Non-expendable equipment policy
Staff evaluations (Including ED)
Use of written contracts for services
Cost allocation policy
Written financial management policies
DOL, FLSA compliance
Employment advertising policy
Regular policy of examination of spending
compared to budget and actual production
compared to planned production
Abiding by organization’s personnel policies
Planning and preparation policy for future grants
Fair Housing
Introduction
The right to fair housing is set by law
Training in this area is crucial
Effects every staff person in the self-help
program
Right to fair housing enforced by formal
complaint process, litigation, testing and
monitoring
Lack of knowledge is no excuse
The Fair Housing Act
Prohibits discrimination because of:
Race or color
National origin
Religion
Sex
Familial status
Handicap / Disability
Covers most housing, definitely federally
financed
Law effects sale and mortgage
Other Applicable Laws
Know that housing laws exist and must be enforced.
Such laws include:
Title
VI of the Civil Rights Act of 1964
Section 504 of the Rehabilitation Act of 1973
Age Discrimination Act of 1975
Title II of the Americans with Disabilities Act
Section 109 of the Housing and Community Development Act of
1974
Title VIII, Title VI
Record keeping requirements: racial & ethnic data
((1901.202(g))
Helpful Websites: HUD: http://www.hud.gov
USDA: http://www.rurdev.usda.gov
Fair Housing Marketing
Affirmative Far Housing Marketing Plan
HUD Form 935.2b, required for self-help
program
Follow instructions
Use accurate information
Marketing plan designed to attract those
“least likely to apply”
Special outreach for those groups required
Plan approved and monitored by Rural
Development
Fair Housing Advertising
To comply with Fair Housing Act
requirements must be met
No discriminatory or limiting words or phrases
allowed
No selective use of media and models which can
lead to discriminatory results
Use fair housing policies and practices
All advertising for real estate must contain the equal
housing opportunity logotype, statement or slogan
For further details, see Guide.
Equal Housing Opportunity Logotype Equal Housing Opportunity Slogan
“Equal Housing Opportunity”
Equal Housing Opportunity Statement
“We are pledged to the letter and spirit of
U.S. policy for the achievement of equal
housing opportunity throughout the
Nation. We encourage and support
affirmative fair housing advertising and
marketing program in which there are no
barriers to obtaining housing because of
race, color, religion, sex, handicap, familial
status, or national origin.”
Participant Selection and the
Membership Agreement
Two ways to ensure that all fair housing laws
are being followed
*BP
Consistency
Documentation
A person with a disability cannot be denied the
right to participate in the Mutual Self-Help
Housing Program
RD and grantees are to make reasonable
accommodations which allow someone with a
disability to participate
“Participating family” definition allows
substitute labor with prior approval by
State Director
In rewards and corrective actions,
participants should be treated equally
Follow rules in Membership Agreement,
always
Identifying and Solving Potential
Fair Housing Problems
Contact Rural Development or HUD immediately
Use mediation and all available resources
Understand the complaint process
Complaints must be filed within one year
Either HUD or RD may investigate
Try to reach a conciliation agreement
If agreement breached, further legal action
taken
Additional Resources
Various fair housing training materials
exist
HUD’s Fair Housing Information
Clearinghouse has brochures, videos,
PSAs, posters
Rural Development can also provide
materials and training
Stay in Compliance
Review the Affirmative Fair Housing
Marketing Plan every quarter to insure
compliance
Enforce Fair Housing Advertising
requirements
Display Fair Housing Posters as required
by RD
Questions should be addressed to State
Civil Rights Coordinator
The End!