Ellen Bowyer, Council of State Community Development Agencies

July 1997

TABLE OF CONTENTS

Preface

Acknowledgments

Chapter 1. Summmary and Overview

Chapter 2. Clarifying Needs and Purpose

• Goals and Objectives

• Identifying Needs

• Identifying Needs

• Marketing the Program

Chapter 3. Structuring and Delivering Assistance

• Stucturing Assistance

• Delivering Assistance

Chapter 4. State Roles

• Managing the System

• Coordinating with Other Resources

• Assessing Program Sucess

Chapter 5. Conclusion

Appendix A. HRT Request for Qualifications
Appendix B. Request for Proposals: Retainer Consultant
Appendix C. Application for Technical Assistance

Preface

The Council of State Community Development Agencies (COSCDA) is a membership organization for executive–branch state agencies that administer federal and state resources for housing, homelessness, and community and economic development. Among these programs are the Community Development Block Grant, the HOME Investment Partnerships program and the Emergency Shelter Grant. COSCDA members work extensively with local governments, nonprofit organizations and the private business community. COSCDA provides technical assistance, training, and advocacy for members concerning policy development and program practice.

This report is one of eleven reports COSCDA is preparing under a cooperative technical assistance grant funded by the U.S. Department of Housing and Urban Development. The grant is administered through the National Affordable Housing Training Institute, a nonprofit organization composed of eight public interest groups, including COSCDA. NAHTI provides technical assistance and training support to city, county and state governments in affordable housing and community development.

Under its cooperative agreement through NAHTI, COSCDA conducts various training and technical assistance activities to help state agencies administer the HOME program in an effective, innovative, accountable manner. These activities include HOME workshops, a quarterly newsletter called HOMEnotes, on–site consultations, and demand/response technical assistance and referral. The three model programs produced under this grant profile selected state programs to offer models of best practices in the development, implementation and management of effective HOME programs and viable housing development. Other model program guides in this series are Using HOME & the Low–Income Housing Tax Credit Together: Models from Alabama and Massachusetts and Using HOME for Job Training: Michigan's Job Demonstration Program.

HOME is a federally–funded housing program that allocates funds directly to states and local governments on a formula basis (40 percent to states; 60 percent to local governments) for the development of affordable housing. Created in 1990 through the National Affordable Housing Act, the HOME program has generated more than 200,000 units of affordable housing and provided over 28,000 low–income families with tenant–based assistance.

HOME is currently the most flexible form of housing assistance provided directly to states and local governments. The program was developed, in part, due to federal recognition of the increasing state role in affordable housing development and to prompt additional and continuing housing development by states and local governments. The program also strongly emphasizes the role of community–based nonprofit organizations (formally designated as community housing development organizations, or CHDOs) in the housing delivery system. HOME funds may be used to support a range of activities necessary to produce decent, affordable rental and homeowner housing. It can also be used for transitional or permanent housing for people who are homeless. Program activities may include new construction, rehabilitation and acquisition of affordable housing, as well as tenant–based rental assistance (for an initial period of 24 months, which may be renewed) and security deposits. Funds also may be used to support project pre–development or organizational operating support for CHDOs.

Acknowledgement

The author thanks Maureen Markham at the Washington Department of Community, Trade and Economic Development for giving so much of her time and energy during the May 1996 site visit and for responding so quickly and in such detail to the initial report draft. Special thanks also to Billie Heath, RCAC, for the good information on nonprofit and the short guided tour of Olympia. The information and ideas on other housing and community development programs provided by all the DCTED staff who met with the author during the site visit also are greatly appreciated.

Chapter 1. Summary and Overview

 The 1990 National Affordable Housing Act authorized the HOME program, which received its first appropriation ($1.5 billion) in federal fiscal year 1992. Since then, HUD has allocated funds for training and technical to HOME users and HOME administrators; it has also distributed the funds both competitively and by formula. Delivery included a range of organizations, from large national consulting firms to government agencies. In 1993, for example, HUD made formula allocations directly to state agencies; in 1994, they allocated funds through a "SuperNOFA" that established many common parameters for use of the different funds.


State Involvement in Capacity Building

States are increasingly involved in the provision of HOME technical assistance and training to their grantees. Such involvement occurs for many reasons. First, state administrators hold long–term responsibility for ensuring the effective and accountable use of HOME funds. States thus want to make HOME awards to sponsors with the capacity to complete and manage affordable housing developments. Second, many states receive HOME technical assistance and training funds directly from HUD. In 1995, for example, fourteen states received $3,437,639 under the competitive August 1994 SuperNOFA. Finally, states increasingly use HOME funds for CHDO operating support and predevelopment loans; a strong interest thus exists to coordinate these resources with direct technical assistance and training funds.

In many states, an infrastructure that provides some level of technical assistance and training assistance already exists, whether in affordable housing or more broadly in community development. Coordinating delivery of HOME support with existing systems offers the opportunity to stretch technical assistance and training resources. Additionally, states often have extensive knowledge of the housing and community development network. This knowledge can aid the effective targeting of HOME technical assistance and training funds.

Purpose of this Report

This report is provides guidance to state HOME program administrators for improving their HOME technical assistance and training. The report first outlines a training and T.A. model that involves a direct role by state staff. Based on a series of "best practices," the model provides guidance suited to a range of state activities, from direct T.A. delivery to the oversight of private consultants. Chapter Two focuses on a process to establish the objectives and goals expected to be accomplished by provision of technical assistance and T.A. Chapter Three discusses a proposed approach for delivering assistance: who should be providing technical assistance and training assistance and what does the assistance look like?

Chapter Four examines state roles in managing a training and T.A. program, assessing results, and coordinating assistance with other resources. Given a state's responsibility for both HOME and the Consolidated Plan, these are important activities for state HOME administrators to undertake, regardless of the extent of their role in technical assistance and training. The report concludes by summarizing key considerations for states as they provide HOME training and T.A.


Use of Washington State as Model

This best practices described in this report are based on the Housing Resource Team in the Washington Department of Community, Trade and Economic Development. DCTED receives about $8 million in HOME funds annually. About 15 percent of their annual allocation is used for home repair (a moderate rehabilitation program linked with the state weatherization program); fifteen percent is used for tenant–based rental assistance, and 70 percent is used for a range of construction activities. The state also has a Housing Trust Fund, which contains $50 million (from capital bond proceeds) for the 1995–1997 biennium.

In 1990, DCTED established the Housing Resource Team (HRT), a program that relies on consultants to provide T.A. and training under state oversight. Under HRT, the state maintains a large list of "qualified consultants" plus a smaller list of "retainer consultants." As communities request assistance, state staff review the request and match the community with a consultant. This process gives DCTED a high degree of knowledge about T.A. needs without placing a tremendous burden on staff.

Funded from penalties for late payment of real estate excise taxes, HRT receives about $500,000 each fiscal biennium. Nonprofit, housing authorities and local governments are eligible, with priority given to those organizations serving economically distressed, rural areas with populations of 25,000 or less. The state accepts applications until funds are exhausted. Assistance may be provided in a wide range of areas associated with organizational, housing and program development.

Since the State Housing Trust Fund targets 30 percent of its resources to rural areas, DCTED created HRT to help rural communities access these funds. HRT's mandate was broader than the Trust Fund, however, since the state had been receiving many requests from small communities for training and T.A. unrelated to the Trust Fund. A statewide housing needs assessment, conducted in 1989–1990, identified a broad range of training and T.A. needs, ranging from organizational development to more technical issues around housing construction.

DCTED's principal concern was to be able to use technical assistance and training funds through a flexible process that could respond quickly to the range of needs identified. Constraints included the lack of available state staff to deliver help directly, coupled with a strong state interest in retaining direct control over the distribution and use of resources. While state staff could not conduct on–site training and technical assistance, neither was the state willing to turn over the program to one or more consultants.

COSCDA staff made a two–day site visit to Washington in May 1996 and state staff provided extensive information for this report. The opinions and information provided in this report, however, do not necessarily reflect those of DCTED staff.

Chapter 2. Clarifying Needs and Purpose

 Effective delivery of technical assistance and training requires consideration up front of long–term goals and objectives. The Consolidated Plan can identify overall T.A. and training goals. States may want to conduct separate assessments of T.A. and training needs periodically as it develops various program categories. This chapter briefly describes how Washington State identified HRT's goals and objectives, T.A. and training needs, and the clients to be assisted. In addition, it touches on program marketing.


Goals and Objectives

The motivating force behind creation of the Housing Resource Team was the Washington Housing Trust Fund, given the concern that rural communities would not have the capacity to access their portion of the Trust Fund. HRT program materials identify its primary purpose as building the capacity of local communities to develop affordable housing projects for low–income families and people with special housing needs.

In November 1995, DCTED held a meeting with several nonprofit housing providers in the state, along with many technical assistance providers. At the meeting, participants discussed training and T.A. provision. The day–long meeting included presentations on available technical assistance and training from the state, a discussion of the T.A. goals , and the barriers that exist to achieving those goals. Participants responded to the question of "what would an effective, productive technical assistance network in Washington state look like?" In general, answers were that such a network would provide effective and efficient technical assistance to nonprofit developers of low–income housing such that: leveraging was maximized, best practices were both demonstrated and replicated; locally–identified needs were met; and sound management principles ensured the long–term viability and affordability of projects.

As the program has matured, DCTED has added another overall goal for HRT: furthering the professionalism of nonprofit organizations. The state feels that nonprofit must develop a strong organizational infrastructure, including a knowledgeable and committed board, competent staff, strong financial accounting procedures, and other elements of organizational development.

As these examples suggest, goals for technical assistance and training programs may surface in many ways: from the legislature, from providers, from clients, and from the state staff managing the assistance. Regardless of the source, an initial goal should be established and provided as part of any program literature. The goal also must be periodically revisited by state staff, providers and clients to ensure its continuing relevance.


Identifying Needs

A 1989 study identified a broad range of needs in affordable housing development, ranging from organizational development to construction management. This broad range of needs led to the "retainer consultant" approach. With this approach, a large pool of available consultants gives the state the flexibility to respond to a range of requests for T.A. and training. Individual contracts for assistance are executed as communities submit their requests.

HRT staff carefully assesses each T.A. application, often making a site visit to meet with clients to better define their needs. The state is not directive about the types of assistance HRT will provide; instead, it identifies a menu of assistance from which clients can draw (based on their specific needs). While the state does not plan to change this process at this time, indications exist that both providers and clients are seeing a need for HRT assistance to be delivered in a more directive way.

For example, one barrier identified at the November 1995 meeting is that some technical assistance is:

generally short term, and may not be sufficient to provided the necessary depth of assistance....funders and technical assistance providers can address this barrier by making proactive efforts to assess the organizational capacity of their clients at various stages in the development process and refer them to appropriate assistance" (January 3, 1996 memorandum to low income housing technical assistance providers from HRT staff, page 2).


In a more directive role, consultant providers might follow up more often and consistently with organizations which have received technical assistance and training assistance in the past. Consultants could then work with the organizations to ensure that they continue to progress in organizational development or project development capacity.


Identifying Clients

HRT clients are nonprofit organizations (including CHDOs), housing authorities, and local governments. By 1996, about 50 percent of the groups assisted were existing organizations (e.g., community action agencies, other nonprofit, local housing authorities) that were expanding their mission or activities. Another 25 percent were local governments and 25 percent were new nonprofit organizations. State staff note that capacity spans a range from very little to moderate to high. About one–third of HRT clients are in each of these categories.

Given that HRT was formed in response to a concern about rural communities, targeted clients are organizations serving economically distressed rural areas (defined as communities with populations of less than 25,000 or counties with a population of less than 60,000). Under HRT, clients must file an application requesting assistance (see additional discussion in Chapter Three). Sometimes, DCTED staff or consultant providers will encourage a given organization to apply, but such encouragement occurs as needs are seen rather than on any coordinated basis. While DCTED does not spend a lot of time actively recruiting clients for the program they do track applicants under the Housing Trust Fund and will approach groups which have organizational, program, or project weaknesses that could be assisted through the HRT.


Marketing the Program

DCTED staff note that many small communities are now familiar with HRT and with the process for requesting technical assistance and training. No formal initiatives to market HRT exist, given the already high level of demand. Staff communicates the availability of assistance through Housing Trust Fund application workshops and through presentations at housing workshops. In 1996–1997, DCTED plans to sponsor a series of "Housing 101" workshops across the state which introduce potential affordable housing sponsors to the development process. The workshop will also give clients information on the T.A. and training available through HRT.

Another marketing tool is the consultants, who function as a statewide communications network through their routine contact with Washington communities (whether under an HRT contract or under another contract). Many consultant providers under contract to HRT (or on the HRT qualifications list) also provide technical assistance and training under contracts supported by funds awarded directly by HUD.

Chapter 3. Structuring and Delivering Assistance

 The training and technical assistance delivery outlined in this chapter are presented by issue–area. This issue–oriented format is intended to permit states to identify those elements that work most effectively for their chosen approach. The chapter addresses two broad questions:

1. What does the assistance look like?
2. Who provides it?

Within these two questions, the chapter examines issues around establishing T.A. structure, content, and training. It also examines the identification, contracting, and compensation of consultants who provide technical assistance.


Structuring Assistance

As noted in Chapter Two, technical assistance and training needs may be identified through a state's Consolidated Plan or tailored needs assessments. States also need to determine the form in which assistance will be provided (e.g., one–on–one technical assistance versus broader training courses). Finally, states must examine whether other capacity–type funds (e.g., operating support and predevelopment funds) should be tied with training and technical assistance.

Demand–Driven Approach

HRT offers a broad range of assistance for the development of organizations, programs, and projects. Project assistance offered by HRT includes needs assessments, community organizing, market studies, financial feasibility analyses, resource identification, funding referrals, site predevelopment and acquisition, construction management, and property management. Program assistance includes program design and planning. Organizational assistance includes strategic planning, grant–writing, board training and organizational structure. The state has identified several areas where it can provide assistance, but delivers assistance according to client demand.

Sometimes, states may need to develop and implement a more formal curriculum. One initiative now in place outside the HRT is the Washington Community Development Academy. The Academy is funded by DCTED, the Northwest Area Foundation, the U.S. Forest Service, and the Local Initiatives Support Corporation (LISC). It is governed by an advisory board of program sponsors, community representatives, nonprofit, educational institutions, and Academy participants.

To build the capacity of community development corporations in real estate development, the Academy offers a year–long training to successful applicants in real estate finance, community development, and organizational development. The Academy thus provides intensive training, over a relatively long period to one group of CDC representatives. The 1994–1995 Academy focused on fifty–five individuals in different state regions. One disadvantage of such intensive training is that only a few people can participate. Such training nevertheless gives participants a focus learning environment where one piece of information builds on another.

Linking in Predevelopment or Operating Support

Another issue related to training and curriculum is whether technical assistance and training delivered by the state will incorporate available organizational operating or project–specific predevelopment costs. A state may use 5 percent of its total HOME allocation in each fiscal year for operating expenses. A state may also use ten percent of its CHDO setaside for predevelopment loans. CHDO operating costs usually provide ongoing operational support to CHDOs for internal organizational expenses. Predevelopment funds must be awarded as loans to CHDOs for specific projects and may be used to support project–specific costs which are incurred before project construction that are vital to moving the project from conception to feasibility.
Deciding to link these HOME support funds with technical assistance and training initiatives offers several benefits. For example, states can target HOME support funds by awarding them to groups which have already received some T.A. and training. Such targeting more consistently supports ongoing growth in CHDO capacity over a longer period than a one–time award of T.A. and training funds. Coordinating these resources helps ensure that T.A. and training funds are used more consistently, which promotes economies of scale in staffing the programs. DCTED is developing a proposal to bring together HOME support and T.A. and training funds to offer a single package of assistance to CHDOs. This package includes state, HRT and HOME support funds over a three–year period.


Delivering Assistance

As noted earlier, Washington's program relies on a network of independent consultants, whom the state retains on a contract basis to provide assistance on an as–needed basis. This section of the report details how consultants are identified, how the state determines compensation, and the structure of the contract between DCTED and the consultants.

The HRT is composed of two types of consultants. "Retainer consultants" have successfully competed under an HRT RFP and generally are tapped first when a community makes a request for assistance. "Qualified consultants" are tapped to provide assistance when retainer consultants are unavailable or does not have the expertise for a given project. HRT usually contains around 80 to 100 consultants, with about eight to 10 of those qualifying as retainer consultants. The following looks at how DCTED identifies and qualifies consultants.

Prequalifying Consultants

DCTED established the initial mailing list for the HRT using contacts both within and outside the state of Washington. The advocacy community in Washington provided several contacts for that list. Consultants join HRT by responding to an advertisement that DCTED places in the Daily Journal of Commerce, a private business journal. Interested consultants submit relatively simple applications (see a copy of application in Appendix A) identifying their areas of expertise, their qualifications, and the type of assistance they are willing to provide. The HRT manager reviews these to ensure the consultant's eligibility to join the HRT. A more intensive review of the consultant's qualifications is conducted only when the consultant is invited to submit a bid to work on a specific project, or when the consultant applies to become a "retainer consultant."

Identifying Retainer Consultants

To identify retainer consultants, DCTED issues an RFP and conducts a detailed assessment of the proposals submitted. Appendix B contains a copy of the 1996 RFP. Consultants generally have around two months to submit proposals. DCTED expects to negotiate five to eight retainer contracts in response to the RFP, with contract amounts ranging from $10,000 to $25,000 for one year's worth of services. The lead DCTED staff person for the HRT generally reviews and qualifies consultants for the general HRT consultants pool. A panel of staff and an HRT client reviewed retainer consultant proposals submitted in 1994 and a panel will be assembled to review the 1996 proposals. Retainer proposals must contain a title page; project description, need and approach; samples of a typical workplan and budget for a specific project; project staffing; and organizational capacity. All members of the scoring panel review and score applications in four areas.

One of the four areas reviewed is "need and approach." The consultant describes the projects and activities they can provide, and the way in which those would meet the needs of rural communities. Staff assesses the extent to which the description addresses identified needs for the targeted clientele; they also assess whether the proposed approach is clear and appropriate to the needs identified. A second area of review is scope of work. Staff assesses whether the sample workplans are specific and detailed, address the identified needs and include feasible time frames.

A third review area is capacity and experience, including whether the consultant has the technical skill to complete the proposed activities, and the quality of their previous activities in rural areas. A fourth review area is budget and fees, including whether hourly rates are competitive and the budgets appropriate to the types of projects proposed. The final review area is overall quality: does the proposal demonstrate clarity, organization, completeness and a depth of knowledge of rural needs and issues, and is the proposal of overall high professional quality? Each area is scored on a scale of one to five points. The maximum total points an application can receive are 25.

DCTED notes explicitly in the RFP that these are not retainer contracts in the traditional sense: no set amount of work is guaranteed and no set amount of fees will be paid. Instead, joining the list of retainer consultants offers the opportunity to be tapped to respond to participation in specific projects. As projects arise, retainer consultants submit specific project proposals, and an individual project fee and a payment schedule is negotiated. Generally, project contracts are for one year, with a one year extension option.

Updating the Consultants List

Once a year the "qualifications list" of consultants eligible to provide assistance under HRT is updated to ensure that all potential and existing qualified consultants are aware of their status regarding the HRT. HRT prepares a list identifying active consultants and the areas in which they have expertise and sends this to the general mailing list (described above). This list is the basis for large general pool of consultants with whom DCTED works on smaller projects, and forms the basis for the consultants who will compete under the RFP process to take on more intensive projects.

This process of updating the consultants list gives existing consultants on the list a formal opportunity to advise HRT of any changes in their areas of expertise. It also permits consultants not on the pre–qualified list to express an interest in joining that list (including applying under the next RFP issued). Finally, the update process provides a general notice to the public of the consultants with whom HRT contracts. In addition, DCTED issues an RFP for retainer consultants every two years to the full list of prequalified consultants. A copy of the most recent RFP is provided as Appendix B.

Determining Compensation

Compensation will vary by state. Under HRT, the average contract for services is one year in duration, totals $15,000 and provides roughly 200 hours of service. While the average hourly fee is $60, retainer consultants generally are limited to $65 per hour, and there is an overall ceiling of $95 per hour. Generally travel time, if included in a given contract as an eligible expense, is funded at 50 percent of the hourly fee. DCTED often has found it necessary to fund travel expenses given the extensive distances involved in state travel. DCTED notes that these are internal fee ceilings and that all rates are negotiated on a project–by–project basis. The ceiling were established by reviewing previous compensation rates paid to consultants under housing and community development initiatives, and are revisited and adjusted informally by state staff managing the HRT.

Contracting with Consultants

DCTED executes contracts both with HRT consultants and with the retainer consultants for specific projects. This section examines the process for selecting consultants from the larger pool to work on specific projects. One of the great benefits of the Washington model is that it permits the state to provide an immediate response to technical assistance requests from communities.

Requests for Assistance

All requests for assistance must come from the client organization. While consultants may often refer a client group to HRT, or DCTED staff may consider that a community or individual group needs assistance, no action is taken until the client submits an application. This is a relatively simple form (see sample in Appendix C). DCTED staff meet with the client to clarify their needs for assistance and to structure the type of assistance they will receive.

Selecting A Consultant

In general, DCTED staff first look at the list of retainer consultants in responding to client requests. In cases where there are no retainer consultants available or qualified to provide the assistance, state staff then look to the list of HRT consultants for potential providers. Depending on the type of assistance requested, the state can probably identify one consultant who will be invited to submit a proposal. In other cases, the state may identify two to three consultants; very rarely are more than three consultants identified.

Selected consultants submit specific proposals to undertake the project. These proposals are fairly brief (usually five or fewer pages) which indicate their interest in the project, and describe a general workplan and budget for the specific project. HRT does not use any specific format for these proposals.

HRT staff and the client jointly interview consultants submitting proposals for a project. This lays the groundwork for a strong client–provider relationship and HRT staff see it as a very important element of the consultant selection process.

Establishing the Project

As noted earlier, HRT staff meet with clients to discuss their needs and structure the provision of technical assistance before identifying consultants. This, and the client's involvement in selecting the consultant, provide a strong basis for the individual technical assistance and training project.

The process used under the HUD–funded CHDO Intermediary technical assistance, while separate from the HRT, provides another good example of how to establish a technical assistance and training project. Under the HUD contract, providers conduct an initial assessment of the client's needs. Based on this, a more detailed workplan is developed using the one submitted in the initial application as its base. This more detailed plan identifies the respective responsibilities of the client and the provider, and identifies specific mileposts to measure project progress.

Chapter 4. State Roles

 The way that states provide technical assistance and training varies greatly. On one hand, some states merely hold application workshops, sometimes supplemented by the provision of CHDO operating expenses or predevelopment loans (from HOME funds). Such states leave the provision of technical assistance to private consultants or CHDO intermediaries. On the other hand, some states such as Washington have a comprehensive system that coordinates federal, state, and local resources. Most states fall somewhere between.

The Wisconsin Department of Administration, for example, cooperates with a program called the Wisconsin Housing and Economic Development Authority (WHEDA). Funded by the state, WHEDA provides funds to selected CHDOs to purchase services for technical assistance from the Wisconsin's CHDO intermediary. The state strives to provide WHEDA funds on a one-time, as-needed basis to support a particular HOME activity undertaken by given local organization. CHDOs can use WHEDA Funds to pay for technical assistance over a period negotiated between the state and the CHDO.

As another example, the Ohio Department of Development offers a training and technical assistance grant program. The primary goal of this program is to help local or state nonprofit organizations that are currently involved in supportive housing, nonprofit housing development, economic development, self–sufficiency, and downtown revitalization programs. Ohio limits its program to nonprofit agencies who wish to provide training. Funded with CDBG and HOPWA allocations, eligible applicants are statewide or regional nonprofits.

One final example is the Maryland Housing Capacity Assistance Program. MAHCAP's purpose is to increase the ability of inexperienced nonprofit housing development organizations to develop affordable housing. Under this special five–year demonstration program, Maryland awards competitive matching grants to eligible grantees for terms of up to two years. CHDOs may use funds for a wide range of affordable housing activities.

Unique to this program is a peer–matching idea: the state gives organizations with geographical proximity or complementary experience priority for funding. For example, two organizations in the same region–one experienced with home ownership activities and one experienced with rental housing activities–pair up to receive funding. Such an incentive encourages the sharing of expertise, an effective method of building capacity.

No matter how states provide training and T.A., a management role for the state HOME administering agency still exists. Given the state's role in structuring and managing the HOME program, awarding HOME funds and developing the Consolidated Plan, the state also will likely have a strong interest in the assessment and monitoring of any T.A. and training provided. This chapter begins by identifying some elements around state management of a technical assistance and training system, then looks at approaches to coordinating the use and delivery of different technical assistance and training programs and funds and assessing the results of technical assistance and training initiatives.


Managing the System

A state must identify staff that will be committed to working with the system, will need to identify the budget for the system, and will need to establish a way to track the use and expenditure of funds.

Staffing

HRT is managed by two DCTED staff: the HRT Manager and a staff assistant. Staffing for the program has been kept at low levels, given the heavy reliance on consultant providers. In general, the HRT manager estimates that she spends about 50 percent of her time on the road doing site visits with potential clients, holding housing and strategic planning workshops, and monitoring and strategizing with the consultant providers.

Another 40 percent of her time is spent working with consultant contracts (establishing, closing out, making payments for services rendered), reviewing applications for assistance, reviewing consultant qualifications and administering the RFP process, and monitoring the progress of client groups and consultant providers. Roughly 10 percent is devoted to coordination and general policy activities with other state staff, consultant providers and HUD staff.
Initially HRT was staffed only by the HRT Manager; the staff assistant was added only in the last year. Staff note that managing the HRT is becoming increasingly complex: there are more requests for assistance and the requests are for higher levels of assistance. In addition, there is an overall greater level of interest in local communities in housing development, especially given the growing familiarity with the HOME program and with the state Housing Trust Fund, which means that HRT staff are more frequently providing their introductory housing training course and are more frequently asked to make site visits to communities.

Budget

The administrative budget for the program is roughly $75,000 annually, which supports most of the manager's salary, part of the administrative assistant's salary and general office supplies associated with the program. The HRT budget has a separate code within DCTED's organizational budget.

HRT program funding is supported through penalties on late payments of excise taxes, which total roughly $500,000 every biennium. Unlike state appropriations, these monies do not have to be spent by the end of the biennium. Staff note that this source of funds gives them enormous flexibility in managing HRT as it is currently structured. In the first place, since funds do not have to be spent by a certain time, the state can maintain retainer contracts which do not have set deadlines or fund ceilings. Second, staff can initiate the retainer contracting process in September, which is generally a less busy time of year for the state. Finally, the funding source gives staff more flexibility to operate the program as demand–driven, rather than state–driven.

Drawing Down Funds

The HRT manager has full responsibility for tracking the use of HRT resources by individual consultants. Provider consultants are expected to submit vouchers monthly. The HRT manager reviews the request and, if approved, sends it to DCTED's accounting department, which issues the check. While these funds are formally tracked within DCTED's budget, the HRT manager also tracks funds in her own spreadsheet, which provides extensive, immediate data on HRT projects.


Coordinating with Other Resources

HRT's existence helped DCTED take on a greater coordinating role regarding other technical assistance and training initiatives created after HRT. Some of those include funds to build the capacity of: CHDOs; residents and nonprofit to preserve certain privately–owned, federally–assisted low–income housing units in danger of being converted to market–rate housing (ITAG); organizations which assist people with developmental disabilities; organizations working on projects funded under the Housing Opportunities for People with AIDS (HOPWA) program; and organizations working on farm worker housing. HRT coordinates with these other resources in several different ways.

First, HRT staff and other state staff associated with these resources meet quarterly with HUD and other federal staff and technical assistance and training assistance providers. The meeting provides a formal mechanism to identify, in a proactive way, where gaps organizations which are coming to the end of assistance under one contract, but still have needs for assistance exist or will soon arise and to, if possible, fill those gaps with other resources.

Second, HRT also is directly involved in administering other funding sources. For example, HRT collaborated with AIDS Housing of Washington to obtain HOPWA technical assistance and training funds, and is managing the expenditure of funds under that contract. The Development Disabilities Council in Washington State allocated $50,000 to support three years of technical assistance and training specifically to build the capacity of rural organizations to undertake housing for people with developmental disabilities. HRT worked with other state staff to develop a process to allocate the funds, including extensive outreach to rural communities, and continues to be involved in program implementation. Further, once the DD technical assistance and training funds are exhausted, HRT resources will kick in to ensure that the organization continues to receive assistance.

Third, HRT sometimes helps organizations become better prepared to apply for other state–controlled technical assistance and training funds. For example, HRT provides support to organizations in Washington State that want to apply for funding under the ITAG contract. In a similar way, HRT staff work closely with other state staff involved in HOME or Housing Trust Fund programs to help develop the housing capacity of applicants or project sponsors. For example, HRT helped develop recipient capacity to use HOME tenant–based rental assistance within a continuum of care model targeted to homeless people and people at risk of becoming homeless.

Staff note that additional coordination would be helpful. At this point, many programs within DCTED HOME, CDBG, weatherization, and McKinney homelessness conduct their own training sessions. CDBG holds a management workshop for successful applicants, while weatherization conducts technical training that in some cases results in professional certification. Staff expressed interest in developing a "training institute" that formally brings together all DCTED housing and community development training opportunities.


Assessing Program Success

State staff note that technical assistance and training is extremely time–intensive and that usually it takes extensive time working with groups before the benefits become apparent. Further, often the benefits that result are not necessarily quantitative no housing units may be produced but may be more qualitative and more difficult to measure. While DCTED does not have in place a detailed process for assessing HRT's progress, it tracks consultant activities closely. This section outlines that approach and identifies a few important issues around assessing program success in general.


Monitoring Consultant Providers

Consultant providers are expected to provide progress reports when they request payment. In general, this is expected to occur monthly. There is now no specific format for those reports, DCTED staff are developing guidelines for progress reports which would establish a quarterly schedule for reports and would provide that the issues (including specific milestones and related time frames) reports are to address would be identified as a part of initial project development.

As noted earlier, review and approval of consultant payment vouchers by the HRT manager ensures that she is knowledgeable about the work being done. The HRT manager also tracks consultant work through discussions with clients and providers during site visits. Over the past few years, the manager periodically has prepared an annual report that identifies HRT's accomplishments, and publishes information on the program and on client successes through other DCTED publications. At this point, HRT has not undertaken a systematic review of its achievements, but has that as one high priority if additional staff time can be found.

There are two issues specific to provision of assistance which are related to the overall success of the program. One is the importance of organizational assessment before providing assistance, which the HRT manager conducts for HRT projects and which is conducted in a more intensive basis under the statewide CHDO Intermediary technical assistance contract (described earlier). The greater the detail gained on the status of client organizations before assistance, the better the assessment of the benefits of the assistance.

A second is client willingness and interest in receiving the assistance. As has been noted before, clients submit applications for assistance to HRT. As part of that application, the client must show some level of support from the local community, and must in some way indicate that their proposed activities will fit in a coherent way within the community in which they are working. This helps ensure that the client will persevere throughout what may be a very long process and that it subsequently will be a stronger player in the community.

Chapter 5. Conclusion

In the coming years, states will take increasing responsibility for affordable housing. One key to their success in that area is the ability of the delivery system to use available resources. Developing that capacity using an approach which is focused on meeting needs identified at the community level within an overall state strategy for affordable housing offers states an unparalleled opportunity to generate additional resources at the local level and to create housing which will return value to the community well past any term of state subsidy.

The following narrative summarizes several key points about developing and implementing an effective training and technical assistance system. It does not, however, address in detail the specific issue of maintaining the documentation HUD requires for its contracts, nor is there a detailed discussion of state procurement issues. Regarding HUD documentation, states which receive HOME grants will need to work with their HUD GTR to ensure that project reporting and recordkeeping are mutually satisfactory and valuable.

State procurement procedures (which will apply to hiring consultants and expending funds) differ to such a degree among states that this report cannot address those on any comprehensive basis. States are encouraged to work with their fiscal offices to explore flexibility in using state or federal funds. Given the often relatively low amounts of money involved in technical assistance and training initiatives, state staff may find that they have greater flexibility than expected.


Community Collaboration

One of the most significant characteristics of Washington's approach is the partnership with the nonprofit and advocacy community in the state. The program was developed in a collaborative way with the advocacy community and the initial mailing list included most contacts provided by the community. HRT maintains that level of partnership on an ongoing basis with activities such as the November 1995 roundtable on training and technical assistance, and through program–specific components such as having clients assist in the selection of consultants. This close collaboration helps ensure that HRT's assistance is relevant and that it is effective as a coordinator for assistance to further the state housing agenda.


Retainer Consultant System

As noted in the report, the nature of the funds supporting the HRT gives DCTED staff greater flexibility in their expenditure—contracts can be more open–ended since there is no set deadline by which states funds must be spent (under the threat of recapture). Many state procurement standards may not permit staff to issue RFPs without then entering into specific contracts.

There are, however, no such restrictions on HOME technical assistance and training funds. While states will need to establish and meet a schedule for fund use, and will need to submit quarterly reports detailing reasonable progress against the contract, there are no state fiscal year "use it or lose it" requirements around HOME funds. The benefits offered by the retainer approach suggest that states should explore all avenues for utilizing it. First, it permits states to "try out" consultants. Often, consultants may appear highly qualified on paper, but do not perform at expected levels. The retainer approach would allow states to drop consultants from the system without facing any legal or paperwork issues around formal contract termination. Second, it gives states access to a wide range of expertise. Rather than having to award a few large contracts, states can award smaller, more specific contracts to consultants with expertise in the given area. Third, and related to the second point, it allows states to assist more organizations, at a range of different levels of capacity.

One clear drawback to the retainer system is that consultants may find it difficult to participate. The absence of set funding amounts and set work plans may make it difficult for them to schedule work under the system. While the state would want to be sensitive to this especially if they are seeing high numbers of well–qualified consultants refusing to participate—this is largely an issue that needs to be resolved by the consultants themselves.

Demand–driven System

One aspect of Washington's system touched on throughout the report is that it is demand–driven. The state identifies a range of areas for capacity–building assistance and the consultants who will provide that assistance, approves all communities' requests for assistance, and may encourage a given community to accept assistance. Nevertheless, provision of assistance depends largely on its being requested by a community.

States that wish to implement a specific training agenda through HOME technical assistance and training assistance may do so through Washington's method, but some changes will be needed. For example, the state may need to do a more detailed needs assessment, may need to develop a standard curriculum, and may want to tie in other HOME capacity funds (e.g., CHDO operating and predevelopment support) to the training and technical assistance at the outset of the project. States with relatively undeveloped networks of CHDOs and other nonprofit may need to take a more directive approach, including aggressively marketing the assistance to under served areas of the state.


Staffing Needs

HRT was initially staffed by one DCTED staff person, with an administrative staff person added recently. HRT has grown in the past few years and it would appear that additional staff will be needed to conduct some needed program activities, such as a detailed program assessment. States intending to undertake effective training and technical assistance programs will need to make a staff commitment to the project. Project staff should be sufficient to manage the overall project, as well as to provide any linkages between assisted organizations and project resources (i.e., state or HOME programs that provide development funds). While a retainer–type system will lower the number of staff needed to provide the capacity–building assistance, the project should be staffed at sufficient levels to provide for effective use of funds and to ensure that the technical assistance and training assistance is linked to project resources.


Technical Assistance and Training Goals

As described in the report, development of HRT was driven by a specific concern to help ensure that rural communities would be able to access the state Housing Trust Fund. It is essential that states identify one or more specific goals for training and technical assistance, including some indication of time frames.

These goals can be drawn from the Consolidated Plan or may be developed through a separate process that involves the range of actors in the delivery system as well as other state program staff. One issue that often undermines technical assistance and training efforts is the disconnect between that assistance and the resources that organizations are expected to access once they have gained capacity. Establishing clear goals and objectives ahead of time can help lessen the disconnect.


Monitoring and Assessment

Related to the above, it is extremely important to assess the success of a technical assistance and training program. Assessments should be sensitive to the fact that technical assistance and training results often are less quantifiable than those associated with project funds, a factor which can be considered in establishing program goals and objectives. One effective approach is modeled by Washington's November 1995 roundtable, which brought together providers, clients and state staff to review progress since inception of the HRT. Given the nature of the assistance provided, it is especially important for the state to maintain an ongoing dialogue with the providers and clients to ensure that the assistance is achieving the desired goals and objectives.

As a part of this, initial organizational assessments of assisted clients are essential. This information will clarify the progress of assisted organizations over time, which will in turn provide insights into overall program progress and the overall structure and direction state technical assistance and training assistance should have to be most effective.

Appendix A. HRT Request for Qualifications

WASHINGTON STATE DEPARTMENT OF COMMUNITY, TRADE AND ECONOMIC DEVELOPMENT
TECHNICAL ASSISTANCE PROVIDERS FOR LOW-INCOME HOUSING PLANNING & DEVELOPMENT

Housing Resource Team (HRT) Request For Qualifications

Mail Completed Document to:

Maureen Markham, Manager
Housing Resource Team
906 Columbia Street SW
PO Box 48300
Olympia WA 98504-8300
(206) 586-5882

DATE:_______________________

NAME OF ORGANIZATION:__________________________________________________________________________

CONTACT PERSON:_________________________________________________________________________________

TITLE:_____________________________________________________________________________________________

STREET ADDRESS:__________________________________________________________________________________

CITY/STATE/ZIP:____________________________________________________________________________________

TELEPHONE:_______________________________________________________________________________________

FAX:___________________________________

TAX ID OR SSN:_____________________________________________________________________________________

HRT SERVICES:_____________________________________________________________________________________


1. Briefly describe your skills and experience in each of the following categories. for which you are applying to deliver technical assistance. Use as many pages as necessary.'.

- Organizational capacity building

- Strategic planning

- Community organizing .

- Needs assessment

- Program planning

- Market analysis

- Social services and special needs

- Resource identification

- Project feasibility analysis

- Preliminary architecture

- Site inspection

- Site acquisition

- Financial packaging

- Preliminary legal, such as site control

- Property management

- Other

2. Describe your experience in providing technical assistance to organizations who work with low-income clients and people with special needs. Use as man), sheets as necessary.

Housing Resource Team (HRT) Request for Qualifications (Cont.)

AVAILABILITY:

1. Is your organization willing to provide brief telephone advice at no cost?

2. What is the hourly cost for the provision of your consulting services?

3. What, on average, has been the total number of hours spent with each recipient of your consulting assistance?

4. In what geographic area are you willing to provide consulting services?

5. Are there any limitations on your time availability during the year?

TYPE OF ORGANIZATION: _____Housing Authority _______ Local Government / Public Agency
_______For Profit Corporation ________Nonprofit Corporation ________Private Consultant,. Unincorporated
_______WMBE Owned _________ Other

EXPERTISE:

1. How many individuals on your staff have the experience and knowledge to provide technical assistance through the HRT?.

Names Experience (Years, Types)
(Add more on separate page)

1.______________________________________________________________________________

2_______________________________________________________________________________.

3 _______________________________________________________________________________

2. How long has your organization been involved in low-income housing?

3. In what capacity does your organization usually assist with the provision of either low-income or special needs housing? Use as many pages as necessary.

ATTACHMENTS:

1. Please attach resumes of the staff members who would supply HRT consulting.

2. Please attach a list of projects your organization has:

- helped develop - owned
- developed - managed

Include type of project, number of units and date of occupancy.

3. Please attach a list of consulting clients you have helped with projects, planning, capacity building or other related activities. Include references with phone numbers.

4. Attach any additional information - brochures, annual reports, etc. - that you believe will help to .evaluate your qualifications to provide technical assistance.

Appendix B. Request for Proposals: Retainer Consultant

REQUEST FOR PROPOSALS

TO PROVIDE TECHNICAL ASSISTANCE
FOR LOW INCOME HOUSING DEVELOPMENT ACTIVITIES

July 22, 1996

PURPOSE STATEMENT

The Washington State Department of Community, Trade & Economic Development Housing Resource Team Program (HRT) is requesting proposals from selected consultants with experience in housing planning, affordable housing preservation and development activities, housing program management, and nonprofit organizational development to deliver technical assistance in these topics throughout the state, with an emphasis on rural areas and small cities and towns. The services are targeted to benefit persons with low and very low incomes.

INTRODUCTION

The Washington State Department of Community, Trade and Economic Development (CTED) has developed a pre-qualified list of technical assistance providers, called the Housing Resource Team CHRT) to provide a wide range of essential technical assistance to nonprofits, local governments, tribal organizations, and housing authorities to meet their specific needs in housing development, planning, and capacity building. Upon receiving a request from the local community, CTED invites selected consultants included on the list to bid on contracts to deliver the assistance.

Since the fall of 1992 HRT has also had a number of "retainer contracts" with consultants who were selected from the list through an RFP process. A majority of HRT projects in 1993 and 1994 were awarded to these "retainer consultants" who were invited to submit workplans and budgets for specific projects. Consultants on the pre-qualified list of technical assistance providers are now invited to submit proposals to deliver services for specific projects under a new round of "retainer" contracts. CTED expects to negotiate between 5 - 8 retainer contracts under this proposal. Contract amounts will vary according to activities proposed, but will generally fall into the $10,000 - 25,000 range for one year of services.

It should be noted that these contracts are not retainer contracts in the traditional sense; that is, no amount of work is guaranteed under these contracts, and a specific set payment amount is not paid automatically on any regular time schedule. As projects arise that are appropriate for the services of a particular consultant, workplans and budgets will be required and a fee and payment schedule negotiated.

SCOPE OF WORK

Assistance services would include a broad range of advice and consultation, including, but not limited to, needs assessments, market studies, financial feasibility analyses, resource identification and referral to specific funding sources, preparation and review of grant proposals and funding applications, questions of a general program planning nature, board training, specific issues in property management and conflict resolution, construction management, and trouble shooting. The contract is expected to cover assistance that is beyond the scope, or a clear expansion, of normally funded activities for the consultant. For example, HRT would not pay to provide technical assistance to a potential Self Help Housing agency if the consultant is under contract with the Farmers Home Administration for that same type of activity.

Interested contractors should submit a scope of work that provides a clear and detailed description of the assistance they propose to provide under the contract. Specific project types should be included with sample workplans and budgets appropriate for the projects proposed. Some examples of specific projects include:

Community housing needs assessments;

Market studies for FmHA 515 elderly housing developments;

Feasibility analyses for purchase of subsidized housing developments threatened with prepayment;

Financial packaging for various types of low income housing developments;

Board training and strategic planning workshops related to organizational development;

Condition surveys and cost estimates for specific rehabilitation sites.

This description should include any and all activities that the consultant would propose to provide under the contract, with the understanding that not all activities will be provided for every client. The exact scope of assistance to each client would be specified at the time of referral, and would be subject to amendment or expansion as the work progresses.

Interested contractors should propose an hourly rate for the assistance, and specify the total number of hours they would have available to work under the contract. Any time limitations on availability should also be described; for example, accountants might be unable to do work under the contract from February 1 through March 15.

PROPOSAL PROCESS

Proposals must include the following information:

1. TITLE PAGE

a. Title of Proposal;
b. Name, address, and telephone number of proposing organization(s) and contact
person within the organization;
c. The original signature of the person authorized to sign for the organization must
be on the original copy.
d. Indication of WMBE, if applicable.

2. PROJECT DESCRIPTION, NEED, AND APPROACH

Describe the scope of work being proposed, and your perceived need for these activities in rural communities throughout the state. Describe your approach to accomplishing the tasks proposed, and also your approach in working with rural communities. If the proposal is a joint venture, explain the role of each firm in accomplishing the work.

3. WORK PLANS AND BUDGETS

Provide a sample workplan and timeline for each specific project type proposed. Outline the specific activities for each component in the workplan including steps to be taken to complete each activity and an estimate of hours required for each step. Relate the activities to the budget. (Such workplans and budgets are provided as examples of typical projects for purposes of evaluating the proposals, and will be subject to re-evaluation and negotiation at the time specific projects are assigned.)

Provide a sample itemized budget for each specific project type proposed. Specify costs for each element of the workplan.

4. PROJECT LEADER AND STAFFING

Name the probable project leader for each specific project type, and describe his or her prior related experience. Identify key personnel to be involved in the proposed projects.

5. EXPERIENCE AND CAPACITY

Discuss your experience in working with clients in rural areas. Provide examples and descriptions of prior related experience for both the firm(s) and individuals involved. Include a list of current projects with local contacts and address how the proposed work will be completed in reference to other time demands on the proposer.

REVIEW AND SELECTION PROCESS

The proposals will be evaluated through a process involving past HRT clients and the Department of Community, Trade & Economic Development. Retainer consultants will be selected on the basis of the written proposal alone, except that CTED reserves the right to request in person interviews if necessary for the final decision.

The following criteria will be used in evaluating proposals and awarding contracts:

1. NEED & APPROACH:

The projects and activities proposed address a vital housing need for the targeted clientele; the approach is clear and appropriate to the needs identified.

2. SCOPE OF WORK:

The proposed workplans are specific and detailed, appropriate to the services required, and likely to be effective; timelines are clear and reasonable.

3. CAPACITY & EXPERIENCE:

The consultant has the analytical and technical skills appropriate to the projects proposed, and the organizational, administrative and staffing capability to complete the projects in a timely manner; previous experience working in rural areas has been effective and successful.

4. BUDGET & FEES:

Hourly rates are competitive; proposed budgets are appropriate for the types of projects proposed.

5. OVERALL QUALITY:

The proposal demonstrates clarity, organization, and completeness, a depth of understanding of rural needs and issues, and is of high professional quality.

PROPOSAL SUBMISSION

Proposals must be concise and typewritten on letter-sized pages. Elaborate packaging of the response is not necessary nor desired. The original signature of the person authorized to sign for the organization must be on the original copy. If two or more organizations are submitting one proposal, original signatures of the persons authorized to sign will be necessary from each agency. Minority and Women-owned Business Enterprises are encouraged to participate in the performance of any contract which results from proposals submitted in response to this RFP. Indicate on the cover page if the proposer is registered as a WMBE.

All responses to this Request for Proposal must be complete. CTED reserves the right to reject all proposals and to seek new proposals, to negotiate further for the services required, and/or to accept or refine any component of the proposed workplan. All proposals become the property of CTED. CTED is not liable for any cost incurred by the proposer prior to the final execution of a contract, including costs of preparing and submitting this proposal. The original response and three additional copies, including all supporting materials, must be submitted to:

Maureen Markham, Manager, Housing Resource Team
Washington State Department of Community, Trade & Economic Development
906 Columbia Street S.W., P.O. Box 48300
Olympia, Washington 98504-8300

Proposals must be received by 5:00 p.m., August 26, 1994.

ADDITIONAL INFORMATION

Specific questions concerning this RFP should be directed to Maureen Markham, Manager, Housing Resource Team, 206-586-5882.

Appendix C. Application for Technical Assistance


HOUSING RESOURCE TEAM APPLICATION FOR ASSISTANCE

Contact:__________________________________________________________________
Address:_________________________________________________________________
Applicant: ________________________________________________________________
Address:__________________________________________________________________
Phone:____________________________________________________________________

Application
Date:________________

Phone:_______________
Fax:_________________

TYPE OF APPLICANT:

Nonprofit: 501(c)(3)? ____ Yes ____No

Local/urisdiction: ________________________________________________________________

Housing Authority: ______________________________________________________________

Other:_________________________________________________________________________

Legislative District:________________________________________________________

City or County:___________________________________________________________

Population:_______________________________________________________________

TYPE OF ASSISTANCE

____Needs Assessment
____Resource Identification
____Strategic/Program Planning
____Organizational Development
____Financial Management
____Other:

____Market Analysis
____Financial Packaging
____Feasibility Study
____Property Managment

PROJECT FOCUS (if known)
_________ Homeless
_________ Senior Citizen Other Low-Income

Special Needs: _______________________________________________________________________________________
_______________________________________________________________________________________
_______________________________________________________________________________________

Is this a designated "economically distressed" area? _____Yes ____No
Is this an area impacted by the timber economy? _____Yes _____No

Does this jurisdiction have seed money or an established technical assistance
program(s) available to meet low-income housing needs? Yes No
Is this area eligible for Farmers Home Assistance? Yes No

- Application Form - (8-94)

ABOUT COSCDA

Vision

COSCDA is the premier national association advocating and enhancing the leadership role of states in holistic community development through innovative policy development and implementation, customer-driven technical assistance, education and collaborative efforts.

Mission

• Advocate for the common development goals of the states.
• Develop policies and recommendations on community development issues.
• Keep members informed about federal and state administrative and legislative developments that affect members.
• Enhance the capacity of states to deal effectively and comprehensively with community development issues.
• Ensure the availability of community development expertise to members.
• Encourage and assist states in the development and implementation of effective community development programs.
• Facilitate the exchange of information about programs and achievements among states and act as a clearinghouse for community development organizations.

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