SUPPLEMENTAL RESEARCH

GSD will supplement the case studies with additional research on asset management, mixed-finance public housing, and private management of public housing, as described below.

Asset Management. The benchmark cost to operate public housing that is produced through the cost model includes only the cost to operate the properties. It does not include any asset management costs. GSD believes that asset management is an important part of an owner's responsibility. PHAs are owners in addition to being property managers (or, in the case of agencies that use private management, contract administrators).

Through the case studies, GSD will attempt to understand what these asset management functions are and their related costs; however, GSD intends to supplement the case study research by also researching other asset management models, including housing finance agencies and private asset management organizations. Among other issues, this supplemental research may shed light on how asset management functions might differ in public housing and how they are funded. A suggested list of comparative tasks between property management and asset management is found in Exhibit 2.3.

Mixed-finance public housing. In recent years, PHAs have been permitted to use alternative sources of financing (other than direct public housing development grants) to develop public housing, and are no longer required to own the housing. These rules have resulted in a variety of so-called "mixed-finance" properties. Such properties typically serve populations which include former residents of public housing, other residents eligible for public housing, and moderate or market level residents. The properties must respond to private lenders and other public lenders as well as HUD. Operating costs of such properties should yield interesting insights about basic and "extra" operating costs for assisted and public housing. Although small in number, GSD intends to complete a survey of the operating costs of mixed-finance properties.

Private management of public housing. Under the reconnaissance phase of the Cost Study, GSD examined the experience of a number of agencies contracting with private firms to manage public housing and what those experiences reveal about operating costs. GSD intends to complete this survey of private management operating costs.

Research Tasks

Data Analysis
Case Studies
Debt Financing
Utilities
Field Testing
Supplemental Research