Know the financial impacts to your COCC as your business model changes
When a PHA goes through the process of a RAD transition, most financial consultants are very much focused on the individual properties relative to their current and future state and making the “deals” work. Often, what is not discussed and what is not forecast is how the PHA business model will change and the financial implications of the transition to the organization’s operations.
Regardless of whether the conversion was to PBV or PBRA, Emphasys Consulting has had to come in after the fact and assist numerous Agencies that have found themselves unaware they would be facing a decrease in financial resources to maintain the Central Office Cost Center (COCC) operations. This has happened both during and after the transition process. Without having this knowledge in advance of critical transition milestones, PHAs can be left with no choice but to abruptly eliminate positions and consolidate roles, or to use their developer fees or sales proceeds to make ends meet rather than using those funds for planned future affordable housing development.
At Emphasys we believe it is imperative that PHAs currently considering, or in the midst of, a RAD transition need to have a transition business plan that ensures there are no surprises on the impact that a RAD conversion can have on the PHA’s operations.
Emphasys Consulting can assist by performing a financial and strategic review of a PHA’s business model that highlights the various milestones along the way and that will drive important business decisions to assist with sustaining the longevity of your organization’s operations.