Effective Physical Inspection Preparation and Supervision Training
"Join the Rural Development Staff in April 2017 for the MOCARH MFH Training session covering procedures for physical inspections and supervisory visits. Learn key techniques and references, including HB-2, Chapter 9 and 7 CFR 3560.103, essential for maintaining housing projects."
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Presentation Transcript
Presented by Rural Development Staff MOCARH MFH TRAINING April 2017
Agenda Topics Preparing for a Physical Inspection/Supervisory Visit
Procedure References HB-2, Chapter 9 Agency Monitoring 7 CFR 3560.103 Maintaining housing projects 7 CFR 3560.351 Agency Monitoring
Supervisory Visits Completed by USDA Rural Development (RD) staff every three (3) years Can be more often if there are performance issues or clear evidence of compliance concerns Servicing Workout Plan (SWOP) Civil Rights Three parts to the visit: Physical Inspection Supervisory Visit Compliance Review
Notification How to Prepare: RD will notify owner/management at least 2 weeks prior to the visit Owner/management should notify site manager of the upcoming visit Owner/management must notify all residents
Review What will RD be looking at? Physical condition and maintenance of the property Compliance with occupancy requirements Owner/manager s fiscal operation Financial Civil Rights and Fair Housing Compliance Tenant files May request files ahead of time and review prior to on-site visit
Physical Appearance Tips: Make sure all trash is picked up from around the property Clean laundry room, breezeways and other common areas Have tenants remove any personal possessions that are blocking the area Clean exterior doors and siding Remove any mildew Touch up paint Prune trees and trim shrubs
Physical Appearance Tips cont.: Fix splash blocks (reposition if necessary) and damaged downspouts Check exterior lighting and make repairs/change light bulbs Fill holes and low areas around foundations Clean out storerooms Make sure mowing is done, trimmings are swept up and leaves are raked Enter into new contracts for these services now
Physical Appearance More Suggestions: For family complexes, is the playground area clean and in working condition? Check for loose board on railings, decks and porches Clean out gutters and make sure they are secure Caulk around tub, stool, etc., to prevent leaks
Management Plan Review your Management Plan Make sure maintenance plans are in place and being followed for the following: Routine maintenance Responsive maintenance Preventative maintenance How tasks are assigned and prioritized When complete, how are they tracked and monitored
Work Orders Have Work Orders Available for Review: Work orders should include detailed information Problem Date Tenant Name and Unit Number Area for maintenance person to fill out: What the problem was How it was fixed Date it was fixed These can serve as a tracking log
Units Unit Inspections: RD will inspect the following number of units: Properties with 0-5 units Properties with 6-30 units Properties with 31-74 units Properties with 75+ ALL 6 10 15 PLUS If the property has vacant units, RD will inspect the greater of: 5% of all vacant units At least 2 Will be looking to see if units are rent ready (will be taking photos!)
Units Things to Consider: We will be checking smoke detectors to make sure they are in working order If tenants have removed batteries or taken the smoke detector down, issue a violation Health & Safety (H&S) issue for non-working smoke detectors Check cleanliness of units If housekeeping issues, issue violation Depending on how bad the unit is, could be determined to be a H&S issue for the tenant Are there any security issues? Windows that don t work are H&S due to egress
Units Tenant Interviews: RD will be interviewing tenants during our inspection Are there any maintenance issues? Are they familiar with work orders? Are they familiar with their Lease and how their rent is determined Do they know who to contact for emergencies Most Management Plans call for annual unit inspections Make sure these reports are in the tenant files
Other Inspections Other Inspections Completed by RD: Annual Inspections (A/I): Required when property has outstanding physical findings and is not due for a Supervisory Visit Is on a SWOP When property has 25% or more vacancy An A/I can be scheduled at any time Borrower is notified in writing at least 2 weeks prior to visit Number of units inspected: Greater of: 5% of all occupied and vacant units At least 2 units
Other Inspections Site Visit (General) Also known as a drive-by inspection Can be at any time No notice is given prior to visit RD will walk around the property and take pictures Look at exterior maintenance Look at all common areas Talk to tenants if they are around to make sure they have no issues
Accounting Records RD will review the following: Rent collection practices Accounts Receivables and Payables Need to have current general ledger and balance sheets available Status of financial accounting, including: Reserve account Security deposit Tax and Insurance Operating and Maintenance
Accounting Records Other Documents: Current bank statements Long-term capital plan Can be a Capital Needs Assessment (CNA) if you have had one completed Reserve authorizations Will compare request with actual work completed while on site Security deposit requirements Make sure your records for tracking security deposits are up to date and available for review Should have a copy of the most recently approved proposed budget
Tenant Files File Reviews: RD will do a review of the following number of tenant files: Properties with 0-5 units Properties with 6-30 units Properties with 31-74 units Properties with 75+ Tenant files are chosen randomly Make sure they are on site If requested prior to inspection, please provide them timely ALL 6 10 15
Tenant Files Have the following documentation available: Three most recent evictions or terminations of tenancy Tenant grievances or appeals filed Rejected applications Withdrawn applications
Tenant Files What we are looking at: Is there an application in the file Is it stamped with the date/time Proper verification of income Must be 3rd party, not just copy of check or pay stubs unless employer refuses to provide information Lease Agreement Is it the latest version (11/16/09)? Is it properly executed? Have assets been properly certified and calculated? Does Tenant Certification (TC) agree with the Project Worksheet?
Tenant Files What we are looking at: Are medical deductions properly verified? Is the TC properly completed, dated and signed? Is there a move-in inspection in the file? Are unit inspections being completed and documentation in the file based upon the Management Plan Usually completed annually Is unit size appropriate for household? Should not have 1 person in a 2 BR unit unless documented need for extra bedroom or waiver from Agency
Tenant Files What we are looking at: Are credit checks and references documented as identified in the Management Plan? Is there a security deposit receipt in the file? If there is a payment plan, is it documented and being followed? Is there a list in the file of unit repairs and maintenance records completed? If tenant has lived in the property for more than 3 years, records must be maintained for at least 3 years If there is a service/companion animal, is there documentation of the medical need? Must be updated each year
Common Issues Common issues noted at visits: Applications No date and time received noted on application Application not completed in its entirety by applicant No previous landlord information Race/Ethnicity information not completed If applicant doesn t complete this, management should fill it out based on their observation and make note of this Waiting List Not completed to show all applications received All information on the waiting list should be completed, from date the application is received through disposition of application
Common Issues Common issues noted at visits: If tenant can t move in when contacted, they should go to the bottom of the waiting list Screening: No documentation of screening conducted in accordance with the Management Plan in the file Always file credit report/inquiries in tenant file or have available for review If you document a prior landlord reference by phone, be sure to take notes of who you talked to, date and time File should contain information used to accept or reject the application Rejected or ineligible applicants must be notified in writing
Miscellaneous Suggestions: Have site management hours posted with emergency numbers All required posters/documents must be posted in the office If no office on site, these posters must be in common areas (laundry area) Transition Plans Need to have a copy on site Document when items are completed and have information available when RD completes the visit No work is to be completed until scope of work is reviewed by RD
If questions, please contact your local Area Specialist Rural Development https://www.rd.usda.gov/mo USDA is an equal opportunity provider and employer
