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TABLE OF CONTENTS

I. INTRODUCTION...... 1 A. About The Tenderloin Neighborhood Development Corporation...... 1 B. Purpose of This Manual...... 1 C. Organization of This Manual...... 2 1. Chapters...... 2 2. Sub-Headings...... 2 3. Lists...... 2 4. Appendices...... 2 D. Text Conventions Used in This Manual...... 3 1. Who This is Written For...... 3 2. Cross Referenced Items...... 3 3 Page Numbering System...... 3 5. Exhibits...... 4 6. Abbreviations...... 4 E. Updates...... 4 F. Related Resources...... 5 EXHIBIT I-1: Roster Of TNDC Developments...... 6 II. MARKETING & APPLICATION PROCEDURES...... 7 A. Introduction...... 7 B. Performance Goals...... 7 C. Affirmative Marketing Compliance Responsibilities...... 8 1. Affirmative Marketing Defined...... 8 2. Affirmative Marketing Plans...... 8 3. TNDC General Public Unit Marketing and Advertising...... 8 4. Notifications to Potential Applicants for Marketing Special Program Units...... 9 D. Fair Housing Considerations...... 13 1. TNDC Policy on Non-Discrimination...... 13 Reasonable Accommodation for Persons With Disabilities...... 14 E. Initial Contacts by Interested Persons...... 15 1. Call-ins...... 15 2. Walk-ins...... 16 3. Application Packet Contents...... 16 F. Distribution of Applications and Provision of Information...... 17 1. Giving and getting information from interested persons during the inquiry stage...... 17 2. Providing Information When Giving Out Information Packets...... 18 G. Application Acceptance and Interview Session...... 19 1. Accepting Applications...... 19 2. Application Interview Steps...... 19 EXHIBIT 2-1: Special Program Referral & Application Requirements...... 26 III. APPLICANT VERIFICATION, SCREENING & SELECTION...... 29 A. Introduction...... 29 B. Performance Goals...... 30 C. Verifications...... 30 1. Levels of Verifications...... 31

(1/9/2018) i 2. What Must Be Verified...... 33 D. Background Screening...... 34 1. Screening Services...... 34 2. Screening Reports...... 34 E. Verifying and Calculating Incomes...... 35 1. The Importance of Getting it Right...... 35 2. What Comprises Income?...... 35 3. Income Calculations...... 36 4. Key Points To Remember When Verifying and Calculating Household Income...... 36 F. Verifying Full-Time Student Status...... 41 1. Applicability...... 41 2. What is Full-Time Student Status?...... 41 3. Exemptions and Exceptions...... 42 4. Key Points to Remember When Verifying Full-Time Student Status Eligibility...... 42 G. References...... 43 1. Rental Housing References from Landlords...... 43 2. Personal References...... 44 H. Declining Applicants...... 46 1. Criteria for Denials...... 46 2. Fair Housing Considerations...... 46 3. Documentation of the Denial...... 46 4. Appeals...... 47 I. Approving Applicants...... 47 J. Informing Applicants of TNDC’s Approval...... 49 IV. LEASING, ORIENTATION & MOVE-IN...... 53 A. Scheduling and Arranging the Process...... 53 1. Set-up the Leasing & Orientation Session, and Move-in...... 53 B. Resident Files...... 54 1. Set-up The Resident File...... 54 2. Place Documents in the Resident File...... 55 C. Pre-Move In Inspection...... 55 1. Why Inspect?...... 55 2. What to Inspect?...... 55 D. Prepare for Leasing Session...... 56 1. Document Preparation...... 56 2. Review Household Information...... 57 E. Conduct the Leasing and Orientation Session...... 57 1. Explaining and Signing Leasing Documents...... 57 2. Collect First Month’s Rent and the Security Deposit...... 58 3. Tour and Inspect the Unit...... 59 4. Tour the Building...... 61 5. Complete the Session...... 61 F. Move-in Accounting and Notification Procedures...... 62 1. Notify Accounting of Move-In...... 62 2. Transmit Move-In Payments to Accounting...... 62 3. Update Project Status Report (PSR) and Send to Compliance...... 62

(1/9/2018) ii 4. Tenant Services Notification...... 63 G. File Documents...... 63 H. Check-in With the New Residents...... 63 Exhibit 4-1: Standard TNDC Tenant File Setup...... 64 V. RENT COLLECTION...... 67 A. Performance Goals...... 67 1. Outcomes...... 67 B. Basic Rent Payment Policies...... 67 1. When Rent is to be Paid...... 67 2. How Rent is to be Paid...... 68 3. Where Rent is to be Paid...... 68 4. What Happens if Rent is Late?...... 68 5. Non-Sufficient Funds (NSF) Checks...... 69 6. Safekeeping of Rents and Other Payments Collected...... 70 C. Payment Plans...... 70 1. Policy...... 70 2. Creating, Following and Monitoring the Plan...... 70 D. Transmitting Rents to Accounting...... 71 1. Frequency...... 71 2. Procedure...... 71 3. Rent Collection Reports...... 73 VI. RECERTIFICATIONS...... 74 A. Performance Goals...... 74 1. Outcomes...... 74 B. Recertification Timing...... 74 1. When Must Recertifications be Done?...... 74 2. When should the Process Begin to Meet this Deadline?...... 74 3. What if the Resident is Not Cooperating?...... 75 C. Recertification Process...... 77 1. Items Not Required for Recertifications...... 77 2. Items Which are Required for Recertifications...... 78 3. Recertification Interview...... 78 4. Verification Process...... 78 5. Analysis of the Information You Receive...... 78 6. Recertification Approvals...... 79 VII. MAINTENANCE & INSPECTIONS...... 80 A. Introduction...... 80 B. Performance Goals...... 80 1. Outcomes...... 80 C. Maintenance Organizational Structure and Staffing...... 81 D. Maintenance Work Orders...... 82 1. What are Work Orders?...... 82 2. When Should Work Orders be Used?...... 82 3. How are Work Orders Generated?...... 82 4. Work Order Logs...... 83 E. Custodial Maintenance...... 83

(1/9/2018) iii 1. Who Performs Custodial Maintenance?...... 83 2. Custodial Maintenance Schedules...... 84 3. Supervision...... 84 F. Corrective Maintenance...... 84 1. Priority System...... 84 2. Process for Performing Corrective Maintenance Work...... 85 3. Protocol for Maintenance Work in Residents’ Units...... 85 4. Payments for Resident Caused Damages To Units...... 86 G. Emergency Maintenance...... 86 1. What is a Maintenance Emergency?...... 86 2. Reporting Emergencies...... 87 3. Handling Emergencies...... 88 4. Building Systems Guide...... 88 H. Unit Turnover Maintenance...... 89 1. Pre-Move-Out Inspection...... 89 2. Move-Out Inspection...... 90 3. Perform the Work...... 90 4. Inspect the Unit...... 91 I. Preventive Maintenance...... 91 1. What is Preventive Maintenance?...... 91 2. Preventive Maintenance Plan...... 91 3. Monitoring Preventive Maintenance...... 92 4. Pest Control...... 92 5. Handling Bed Bug Infestations...... 93 J. Inspections...... 94 1. Routine, Informal Inspections...... 94 2. Planned, Scheduled Inspections...... 95 3. Monitoring Inspections...... 96 4. Public Agency and Stake-Holder Inspections...... 97 K. Purchases of Maintenance Supplies and Services...... 98 1. Purchase Orders...... 98 2. Paying Maintenance Invoices...... 99 L. Inventory of Equipment, Furnishings, Tools and Supplies...... 100 1. Property Inventory Lists...... 100 2. Property Maintenance Supplies Storage and Inventory...... 100 VIII. RESIDENT RELATIONS...... 102 A. Customer Service Approach to Management...... 102 1. Verbal Communication...... 102 2. Other Types of Useful Communication With Residents...... 103 B. Professionalism...... 104 1. Confidentiality...... 104 2. Resident Privacy...... 104 3. Non-Discrimination...... 105 4. Accepting Gifts or Favors from Residents...... 105 5. Dress Code...... 105 6. Sexual Harassment...... 106

(1/9/2018) iv C. Direct Social Services...... 107 D. Community Building and Socialization Activities...... 107 E. Resident Disputes...... 107 F. Complaints...... 108 G. Grievance Procedure...... 109 IX. LEASE ENFORCEMENT AND EVICTION...... 111 A. Introduction...... 111 1. Responsibilities of Occupancy...... 111 2. Eviction Policy...... 111 B. Lease Enforcement...... 112 1. Fair, Equal and Consistent Enforcement...... 112 2. The Role of Communication...... 112 3. Resident Responsibilities...... 112 C. Nonpayment of Rent...... 113 1. Rent Payment Policies and Procedures...... 113 2. Caveats for Issuing and Serving Notices...... 114 3. Issuing The 3-day (or 10-day) Notice to Pay Rent or Quit...... 115 4. Serving the Notice...... 116 5. Filling Out the Proof of Service...... 117 6. The Notice Compliance Period...... 118 D. Minor and Initial Lease Violations...... 119 1. Progressive Efforts to Get Compliance...... 119 E. 3-Day Notice to Perform Covenant or Quit Procedures...... 120 1. Issuing a 3-Day Notice to Perform Covenant or Quit...... 120 2. Proof of Service...... 121 3. Compliance Period...... 121 4. Continuing Non-Compliance...... 122 5. Non-Acceptance of Rent...... 122 F. Serious Lease Violations...... 122 1. Non-Compliance with Recertification Requirements...... 122 2. Hazardous Housekeeping Violations...... 123 3. Assaults, Thefts, Property Damage and Illegal Activities...... 124 G. 3-Day Notice to Quit Procedures...... 125 1. Issuing the 3-Day Notice to Quit...... 125 2. Proof of Service...... 126 3. Provide Information and Copy of Notice to Social Worker...... 126 4. Compliance Period...... 126 5. Non-Compliance With the Notice to Vacate...... 126 6. Non-Acceptance of Rent...... 126 H. 30- and 60-Day Notices to Vacate (For Cause)...... 127 1. Full-Time Student Status Non-Compliance...... 127 2. Unit Occupancy Standards Not Met...... 127 3. Procedures for Issuing 30 and 60-Day Notices to Terminate Tenancy...... 127 I. 90-Day Notice of Termination of Tenancy (Subsidized Tenancies)...... 128 J. The Unlawful Detainer Process...... 128 1. Filing and Serving the Summons and Complaint...... 129

(1/9/2018) v 2. Getting a Default Judgment...... 129 3. Contested Evictions...... 130 K. Lease Enforcement & Unlawful Detainer Process Flowcharts...... 132 X. MOVE-OUTS...... 138 A. Introduction...... 138 B. Move-Out Inspections...... 138 1. Pre-Move-Out Inspections...... 138 2. Move-out Inspection...... 139 C. Turning the Unit...... 139 1. Secure the Unit and Its Contents...... 139 2. Do the Unit Turnover Maintenance...... 140 3. Do a Quality Control Inspection After Work is Completed...... 140 D. Return or Withhold of Security Deposit...... 140 1. Notify Accounting of the Move-Out and Security Deposit Deductions:...... 140 2. Notify Former Residents of Amount of Security Deposit To Be Returned...... 141 E. Notification of Property Management and Compliance of Move-Outs...... 142 F. Unit Abandonment...... 142 1. Procedure to Determine if a Unit Has Been Abandoned...... 142 2. Post and Send a Notice of Belief of Abandonment...... 143 G. Abandoned Personal Property...... 143 1. Inventorying, Bagging and Tagging Items of Value...... 144 2. Storing and Notifying Residents of Abandoned Property...... 145 3. Disposal or sale of abandoned property...... 146 H. Resident Deaths at the Property...... 146 1. Determining Whether Someone Has Died in Their Unit...... 146 2. Working With the County Coroner...... 147 3. Release of the Unit and the Deceased Resident’s Personal Property...... 147 I. Resident Deaths Outside the Property...... 149 XI. SECURITY & SAFETY...... 150 A. Introduction...... 150 B. Inspections...... 150 1. Inspections and Observations...... 150 2. Abatement of Hazards...... 151 C. Building and Office Security...... 152 1. Building Entries...... 152 2. Security Cameras...... 152 3. Trespassers...... 152 4. Keys and Locks...... 152 5. Office Security...... 153 D. Fire Safety...... 154 1. Prevention and Information...... 154 2. Smoke Detectors...... 154 3. Evacuation Plans...... 155 3. Fire Drills...... 155 E. Fire Emergencies...... 155 1. Initial Response...... 155

(1/9/2018) vi 2. Building Evacuation...... 156 3. Extinguishing the Fire...... 156 4. After the Fire is Extinguished...... 157 F. Earthquake Emergencies...... 157 1. Response During a Major Earthquake...... 157 2. Emergency Response After a Major Earthquake...... 158 G. Assaults, Violent Behavior and Other Incidents Requiring Police Response...... 159 1. Assault, Battery or Other Violent Acts...... 159 2. Thefts and Intentional Property Destruction...... 160 3. Working with the Police...... 160 H. Incident Reports...... 160 I. Employee Safety...... 161 1. The IIPP...... 161 2. Training...... 162 3. General Code of Safe Practices...... 163 4. Reporting Hazards...... 163 J. Employee Injuries...... 163 1. Response...... 163 2. Reporting...... 164 3. Workers Compensation Claims...... 164 4. Accident/Exposure Investigations...... 165 XII. FINANCIAL MANAGEMENT...... 166 A. Introduction...... 166 B. Property Rent Revenues...... 166 1. Rents...... 166 2. Rent Collections and Accounting for Non-HUD Buildings...... 166 3. Rent Collections and Accounting for HUD Buildings...... 169 C. Collecting Unpaid Obligations...... 170 1. Collections by TNDC’s Collection Agency...... 170 2. HUD Reimbursement for Section 8 Vacancy Loss, Unpaid, Rents and Damages...... 171 3. SFHA Reimbursement for Vacancy Loss, Unpaid, Rents and Damages...... 171 D. Write-offs of Uncollectible Unpaid Obligations...... 172 1. Write-Off Policy and Procedures...... 172 E. Adjustments to Tenants’ Accounts...... 172 1. Account Adjustment Policies and Procedures...... 172 2. NSF Adjustments...... 172 F. Purchases...... 173 1. Approvals and Limits...... 173 2. Purchase Orders...... 173 3. Capital Improvements...... 173 G. Out-of-Pocket Expenditures and Cash Advances...... 174 H. Check Requests...... 174 1. Payment of Invoices...... 174 2. Payment to Staff for Out-of-Pocket Expenses...... 176 I. Payroll...... 176 1. Time Cards and Paydays...... 176

(1/9/2018) vii 2. Overtime...... 177 J. Budgets...... 177 1. Monitoring Financial Performance...... 177 2. Budgeting Processes...... 178 3. Operating Budgets...... 178 4. Capital Improvements Budgets...... 180 K. Reports...... 180 1. Weekly Reports By General Managers...... 180 2. Monthly Project Status Report (PSR) Updates by General Managers...... 181 3. Monthly Building Inspection Reports By Property Supervisors...... 182 4. Monthly Statement of Revenues and Expenditures Report by the Financial Manager..182 5. Monthly Building “SnapShot” Reports by the Financial Manager...... 182 XIII. TENANT SERVICES...... 183 A. Introduction...... 183 B. The Social Work Unit...... 183 1. Staffing...... 183 2. Goals...... 183 3. Roles...... 183 C. Support Services Available...... 184 1. Resource Assistance...... 184 2. Housing Retention Assistance...... 185 3. Enhancing the sense of community and quality of life in TNDC buildings...... 185 D. The Social Worker/Property Management Relationship...... 185 1. Regular Communication...... 185 2. Confidentiality Issues...... 186 3. Information Which Can Be Shared and Discussed...... 186 4. Contacting Social Workers...... 187 5. Conflicts and Misunderstandings...... 188 XIV. OFFICE & STAFF MANAGEMENT...... 189 A. Introduction...... 189 B. Offices...... 189 C. Office Furnishings and Equipment...... 189 1. Standard Furnishings and Equipment...... 189 D. Office Security...... 190 E. Phones...... 190 1. Outgoing Messages...... 190 2. Personal Use...... 190 F. Files...... 191 1. Blank Forms...... 191 2. Current Resident Files...... 191 3. Former Resident Files...... 191 4. Denied or Dropped Out Applicant Files...... 192 5. Administrative Files...... 192 G. Signs...... 193 H. Staff Management and Supervision...... 194 1. Resources...... 194

(1/9/2018) viii (1/9/2018) ix I. INTRODUCTION

A. About The Tenderloin Neighborhood Development Corporation

The Tenderloin Neighborhood Development Corporation (TNDC) is a nonprofit corporation which has developed and managed housing for low income persons in the Tenderloin neighborhood of San Francisco since 1981. As of 2007, TNDC has rehabilitated and/or developed over 1,800 units in 25 buildings. See Exhibit 1-1 at the end of this chapter for a roster of TNDC projects. These have enhanced and improved the Tenderloin neighborhood and provided a variety of affordable housing opportunities in well-managed and maintained Single Room Occupancy (SRO) residential hotels, and in buildings with studio, efficiency, and family size apartments.

TNDC operates under the principle that housing is “more than a roof”. It serves a diverse population which has a variety of needs and challenges that affect their ability to remain housed. Therefore, TNDC also offers social services to its residents in conjunction with the management of its properties to help residents stabilize their tenancies and enhance their lives as well as to help create a sense of community within its properties.

Through superior design and management TNDC intends to own and operate affordable housing developments which are:

 Attractive and well maintained  Financially stable  In compliance with all applicable local, state and federal laws  In compliance with all funders’ requirements  As safe and secure as possible  Enhancements to the neighborhoods in which they are located  Communities which enhance the lives of the people who reside in them

B. Purpose of This Manual

This manual has been created to help make the jobs of the persons doing the management of TNDC’s buildings easier. As managers of affordable housing, you have very difficult jobs—involving a wide array of complex requirements from public agencies and the funding sources that have made this type of housing possible. No one can keep all of the policies and procedures necessary to do an excellent job of management in his or her head. This manual has therefore been created to provide that important and relevant management information in a clear, concise, logical and easily accessible manner so that it will be readily available to all current property management staff as a reference resource and a training resource when new staff come to work in TNDC’s buildings.

(1/9/2018) 1 C. Organization of This Manual

1. Chapters This manual is comprised of 14 number-tabbed chapters covering different property management topics relevant to site management staff. (There is a 15th tab in which management staff can place miscellaneous documents and instructions which have not otherwise been covered or included in the manual and which they would like to have at their fingertips for handy reference. Although TNDC has a very diverse portfolio with many different kinds of buildings, the policies and procedures in the chapter will, primarily be those which are general and applicable to the management and maintenance of all TNDC projects. In some cases, however, the text in the numbered chapters will have sub-headings for sections which contain policies and procedures relevant to certain kinds of buildings which may use procedures different from most others (such as the “Small 7 Apartments”).

2. Sub-Headings: As much as possible, sub-headings in bold typeface (as in this paragraph) are used. They are indexed to the table of contents to facilitate the use of this manual as a reference resource. Managers can scan the table of contents and then quickly turn to the chapter and page that has the information they may be looking for.

3. Lists: Numbered, lettered and bulleted lists are also liberally used in chapters so that information can be displayed in a more concise list format, rather than as solid blocks of text,. And procedures can be presented as a series of steps.

4. Appendices: Behind the numbered chapters are more than 20 letter-tabbed appendices. These contain detailed reference information (such as information about fair housing laws, or methodologies for doing applicant income and assets calculations correctly), specific information relevant to each building (such as current income and rent limits, staffing, maintenance information, building systems information, commonly used vendor information), and copies of all management forms used (in Appendix F).

The purpose of creating the appendices is to reduce clutter in the main body of the manual, and also to provide a place for current and specific information relevant to each project in places where management staff will be able to easily find them and always literally have at their finger tips.

The contents for a number of the appendices for each manual will be customized for the buildings where they are located. So, for example, the contents of Appendix I (Current Maximum Income and Rent Limits) and in Appendix B (Building Systems Guide) in the 3 copies of the manual given to staff at the Maria Manor containing current maximum income and rent limits for that building will be different from the contents of Appendix I and Appendix B in the 3 copies of the manual provided to staff at the Dalt Hotel.

(1/9/2018) 2 A. Text Conventions Used in This Manual

1. Who This is Written For: The pronouns “you” and “your” frequently appear in this manual because the primary daily users of this manual are general managers, assistant managers, administrative assistants, night managers and desk clerks who are responsible for day-to-day management tasks at TNDC’s projects. When the terms “manager” or “management” are used, they are also meant to include “assistant manager” or “administrative assistant” if that person happens to be performing the function discussed. This is not designed as a theoretical text book about property management that sits on a shelf. It is more like a “driver’s manual”, with relevant and practical step-by-step instructions oriented to those TNDC staff members who are responsible for driving the management at the buildings--literally where the rubber tire meets the road.

2. Cross Referenced Items: Cross references to information in other chapters of this manual or to appendices use an italic typeface. Names of referenced chapters, forms or other documents in the appendixes are noted in bold typeface.

3 Page Numbering System: Each chapter page in the manual has a “footer” at the bottom which indicates the date it was printed out (on the left), and which indicates the page number in the center. All chapter pages in the manual are numbered sequentially. Appendices have separately numbered pages. Appendix F , which contains forms, has pages ordered by their form numbers, shown in their footers according the form numbering system explained in the next section.

4. Form Numbering System: Each TNDC property management form now also has a “footer”, indicating the date the form was created or modified, and indicating a form number. Every TNDC property management form will have both a form name and number and will be referred to by both of these in the text of this manual. Forms are placed in Appendix F sequentially, according to their form number, and there is an index indicating all form names and numbers at the beginning of this appendix. Each form number starts with a “PM”, which stands for Property Management. This is followed by a dash and a 3 digit number. The 3 digit numbers allow for grouping of similar types of forms according to the following system:

Form Numeric Series Form Topics 000 Forms Index 100-199 Marketing & Application 200-299 Screening & Verification 300-399 Leasing & Move-In 400-499 Notices & Communications During Tenancy 500-599 Eviction 600-699 Move-Out 700-799 Maintenance & Inspections 800-899 Financial Management

(1/9/2018) 3 (NOTE: Originals of all forms will also be accessible on TNDC’s Network “O Drive”, where management staff can access them and print them out, if they do not want to make copies off of the forms filed in Appendix F. As much as possible, forms are to be standardized and maintained consistently as templates, without each building manager creating its own customized version of the forms and/or making unapproved modifications. Self-inking stamps can be used to place individual projects’ address and phone number information on the standard forms, if necessary.)

5. Exhibits: Some chapters may contain exhibits involving charts or lists related to the text in the main body of the chapter. These are found at the end of the chapters and are numbered using Arabic numerals showing the chapter number followed by the exhibit number. So, for example, the first exhibit found at the end of chapter 2 would be designated and numbered as “Exhibit 2-1”.

6. Abbreviations: For the sake of brevity, abbreviations are often used in this manual. See Appendix A for a list of abbreviations used, and what they refer to.

B. Updates

Policies and procedures for the management of TNDC’s projects constantly evolve and are being improved. This manual will quickly become irrelevant and useless if it is allowed to get out-of-date. The loose-leaf, 3-ring binder format allows the narrative text in the chapters and materials or forms in the appendices to be easily replaced as needed, which can be frequently in property management. All manual holders will be listed on a log maintained in the property management department, including their names, work locations and email addresses.

Whenever property management operations manual policies and procedures and/or documents or forms included in the appendices are revised, two things will happen:

1. A central office property management staff person will print out hard copies of the relevant pages, documents or forms and send them to each holder of the manual in the central office and at all buildings with an instruction to immediately place the revisions in their binders and dispose of the older (earlier dated) pages. (If the pages represent new or additional information, place them in the proper section of the manual and there will be no need to dispose of anything.)

2. The central office property management staff person will also email each recipient indicating the revisions have been placed in their mail folders and again requesting them to immediately make any applicable replacements and/or to dispose of earlier versions.

(1/9/2018) 4 C. Related Resources

To avoid providing repetitious information and to make this manual as concise as possible, it is to be used in conjunction with the following other manuals and documents:

1. Personnel Policies

2. Illness and Injury Prevention Program Plan

3. TNDC Supervision Manual

4. HUD Handbook 4350.3, rev. 1

(1/9/2018) 5 EXHIBIT I-1: Roster Of TNDC Developments

Building Name Address Number of Units

Aarti Hotel 391 Leavenworth St. 40

Alexander Residence 230 Eddy St. 179

Ambassador Hotel 55 Mason St. 134

Antonia Manor 180 Turk St. 133

Cameo Apartments 481 Eddy St. 31

Civic Center Residence 44 McAllister St. 205

Curran House 145 Taylor St. 67

Dalt Hotel 34 Turk St. 178

Ellis Apartments 864 Ellis St. 25

Franciscan Towers 217 Eddy St. 105

Haight Street 398 Haight St. 12

Howard Street 1607-1617 Howard St. 13

Klimm Apartments 460 Ellis St. 44

Maria Manor 174 Ellis St. 119

Pierce Street 220 Pierce St. 8

Plaza-Ramona 250-260 McAllister St. 63

Ritz Hotel 216 Eddy Street 90

Sierra Madre 421 Leavenworth St. 47

SOMA Studios 1190 Howard St. 105

Turk-Eddy Apartments 249 Eddy St. & 165 Turk 82

West Hotel 141 Eddy St. 105

Yosemite Apartments 480 Eddy St. 34

TOTAL 1803

(1/9/2018) 6 II. MARKETING & APPLICATION PROCEDURES

A. Introduction

The marketing, application, screening and verification procedures discussed in this and the following chapters are among the most important aspects of manager’s job. They are also the most difficult and complex processes to perform properly--due to multiple statutory and programmatic requirements and restrictions involved with the provision of subsidized affordable housing. When done well, the marketing and application processes will yield a sufficient supply of applicants who can meet eligibility criteria and have the potential to be responsible tenants and good neighbors to other building residents so that vacant units can be filled as quickly as possible.

This chapter will describe TNDC’s general marketing and application procedures and requirements, including affirmative marketing and fair housing provisions. Many of TNDC’s buildings have special programs and units which require referrals from certain designated sources with special procedures. Please refer to Exhibit 2-1 found at the end of this chapter, which lists the programs and buildings affected by these special procedures. If your building is listed for one or more of these programs, see Appendix P, for a description of the program and any special referral or marketing procedures to implement.

D. Performance Goals

1. Outcomes: TNDC seeks to achieve the following outcomes in the implementation of its marketing and application processes:

 TNDC affirmatively markets its vacant units so as to produce a large pool of applicants which is racially and ethnically representative of the San Francisco population in these socio-economic groups as a whole.

 TNDC management staff is well trained in all aspects of fair housing law so that it complies with both the letter and spirit of these statutes and achieves a record no violations throughout each year.

 All TNDC building management staff maintains a customer service attitude to treat all applicants supportively, courteously and respectfully, as measured by customer service surveys and random testing by persons employed by TNDC

(1/9/2018) 7 indicating satisfaction levels exceeding 80%.

 Effective and efficient marketing and application processes will enable TNDC to maintain an overall annual vacancy rate of less than 5%.

Affirmative Marketing Compliance Responsibilities

2. Affirmative Marketing Defined: Affirmative marketing essentially requires casting “a broad net” when advertising and seeking applicants for vacant units in TNDC’s buildings. No racial, ethnic or disability group is to be favored or disfavored when advertising opportunities to apply for units open to the general public. If it appears that certain groups may not otherwise be informed of housing opportunities with standard advertising techniques, specific outreach attempts to agencies which serve these groups should be made so that they will be made aware of opportunities to live in TNDC buildings.

3. Affirmative Marketing Plans: Each building has an Affirmative Marketing Plan that TNDC agreed to follow in exchange for City funding for the property’s acquisition and development. See Appendix D for a copy of your building’s plan. This plan is required by the loan agreements signed with the city; failure to follow the plan constitutes a breach of those agreements, with potentially serious repercussions with TNDC. These plans can be amended over time to evolve and allow for effective and creative marketing of vacant units to the general public. If you feel your building’s plan is out-of-date and needs to have some things changed or updated, while still complying with affirmative marketing objectives, work with your Property Supervisor to make the appropriate changes.

4. TNDC General Public Unit Marketing and Advertising: Advertising of TNDC units open to the general public includes, but is not limited to the following:

a. The creation of attractive and informative advertising flyers describing the available units (location, type of unit, cost, amenities and features, significant selection criteria such as minimum and maximum allowable incomes, available viewing days and times, contact information)

b. Flyers will be posted at TNDC’s property management office at 215 Taylor Street.

c. Weekly mailings of new flyers to San Francisco area public and nonprofit social service agencies who serve a wide range of socio-economic, ethnic, racial,

(1/9/2018) 8 cultural and disability groups within the target market population by an administrative person. d. “Unit Available” or “Now Renting” type signs that are easily readable by passers- by on the street will be placed in the windows of buildings with vacancies.

e. Advertisements regarding available units providing the same kinds of information as the flyers do, posted on the Craigslist.org Website.

f. The display on all hard copy and electronic advertisements of the Equal Housing Opportunity Logo and Statement, the Handicapped Accessibility Logo, and a statement that “Reasonable accommodations will be provided upon request” (by applicants).

g. Managers will maintain records of their activities in implementing its affirmative marketing plan, including records of ads and other community outreach efforts.

h. If managers notice that certain groups are not applying for units, this should be discussed with the property supervisor to determine the reason(s) why, and to adjust future advertising efforts to encourage the widest possible diversity of applicants.

4. Notifications to Potential Applicants for Marketing Special Program Units: As noted, Exhibit 2-1 at the end of this chapter lists special programs which require several other types of marketing and notification procedures to fill vacant units in various projects. Each program has its own specific procedures. Flyers are commonly used to market general public units. If flyers are not used for special program units, at least general information sheets should be prepared to give to interested persons and potential applicants basic information—including their income eligibility requirements, rents and the application procedures. Following is a brief summary of them: a. HUD Section 8 buildings (Alexander, Antonia, Maria, Turk-Eddy) vacant units must be marketed through waiting lists established periodically and administered by management of those buildings.

1. A notification and invitation to the general public that a HUD building’s waiting lists application process will be open for a limited period of time must be advertised widely and affirmatively, informing interested persons of the dates, times and location they can submit waiting list applications. Provide interested persons with the HUD-provided 8 page Section 8 Rental Application (HUD Form No. AAA) to fill out and return for purposes of being placed on a HUD building’s waiting list. 2. Each application, when submitted for the waiting list is stamped with the, date and time.

(1/9/2018) 9 3. Review all applications for completeness and basic eligibility (e.g., they must be elderly or disabled, they must have household incomes within a specified range and the household cannot be comprised entirely of full-time students) 4. Give each completed and eligible application a number in the order it was submitted. 5. Send a written notification, “Applicant Status Letter” to inform applicants that they have been placed on the wait list for that building. 6. When a unit becomes available at some later point in time, send out notices to the top name on the waiting list inviting them to complete the application process with the enclosed information about the unit. 7. Process applicants for available units in the order in which they respond to the notice and submit a new application for an available unit at some later point. b. Project-based Section 8 units (Dalt, Curran, West) must be marketed by requesting lists from the San Francisco Housing Authority (SFHA) of persons who have signed up to be notified of project based section 8 unit vacancies and contacting them.

1. Request a list of persons who have indicated an interest in occupying Section 8 project-based units from the SFHA. 2. Since these project-based Section 8 lists are often old and out-of-date, mail out approximately 100 notification letters for each vacant project-based Section 8 unit available. 3. Make two copies of all outreach letters sent out. Keep one at the property in the same folder as the list you received, and provide one copy of each letter to the administrator of the SFHA Section 8 Housing Department. SFHA needs copies of these letters as proof that TNDC has made an attempt to contact all persons on the list SFHA provided, before it will provide a new list of names. 4. Invite those persons responding to the notification outreach letters to come to the building and submit an application for the available unit(s). 5. Process completed applications on a first-come, first-served basis. 6. Applications are then screened, verified and approved or denied in the same manner as general public units applications. (See Chapter III for a detailed description of these procedures.) 7. If a decision is made to accept the applicant, the San Francisco Housing Authority must be notified to conduct its process with the candidate-- involving an interview and background check in order to approve and certify and the person(s). Assuming the person meets the housing authority’s criteria and is approved, SFHA then conducts an inspection of the unit. If the unit passes inspection, the SFHA then prepares and submits a Section 8 Project-based lease to TNDC building managers which specify lease terms, contract rents and tenant paid rents, among other provisions. c. Shelter Plus Care units (Ambassador, Civic Center Residence, Curran, Franciscan) must be filled by contacting the San Francisco Housing Authority Shelter Plus Care

(1/9/2018) 10 Division (which is operated in conjunction with the San Francisco Department of Human Services (DHS)) for referrals of persons who are on their list.

1. The Shelter Plus Care Division of the SFHA first refers candidates it has already vetted to TNDC’s Tenant Services Department. 2. The Social Work Unit does an initial intake assessment and interview based on certain confidential information about the candidate from the Shelter Plus Care Division which is not shared with building management staff. 3. If the Social Work Unit Manager deems the person to be an appropriate candidate for a TNDC Shelter Plus Care unit, s/he will be referred to a Shelter Plus Care building. 4. Normal TNDC application, screening, verification and selection processes are then implemented by building managers. (See Chapter III for a detailed description of these procedures.) 5. If a decision is made to accept the applicant, the Social Work Unit is notified. Also, following TNDC approval, the Shelter Plus Care office must be notified to process the applicant, inspect the unit, and prepare Section 8 subsidy leasing and documentation prior to move-in. d. Department of Public Health/Direct Access to Housing (DPH/DAH) units (CCR, West, Dalt, Ritz) are by requesting referrals from San Francisco Department of Public Health from their list of homeless or formerly homeless persons meeting the program criteria. The DAH units at the CCR and West are designated for seniors, whereas the DAH units at the Dalt and Ritz are designated for persons with mental disabilities. Persons accepted to live in TNDC properties under this program must have a payee relationship with Lutheran Social Services, which will ensure that TNDC gets its rent each month.

1. DPH first refers candidates it has vetted to TNDC’s Social Work Unit. 2. The Social Work Unit staff interviews the applicant and then forwards the applicant to the appropriate building property management staff. The Social Work Unit receives certain confidential information which it does not share with building managers. 3. Normal TNDC application, screening, verification and selection processes are then implemented by building managers. (See Chapter III for a detailed description of these procedures.) 4. If a decision is made to accept the applicant, the Social Work Unit and DPH are notified. 5. Lutheran Social Services is also notified by the building manager and requested to set up a money management (payee) relationship prior to move-in. e. Housing Opportunities for Persons with AIDS (HOPWA) units (Alexander, Ambassador, Franciscan, West, SOMA Studios) are filled trough referrals from the Housing Wait List administrator at the Department of Public Health (DPH). They

(1/9/2018) 11 can also be referred through the San Francisco Housing Authority (SFHA), Community Housing Project (CHP) and some approved appropriate social services agencies who provide services to persons who are HIV+ or have AIDS.

1. First contact the current administrator of the citywide Housing Wait List (HWL) at the SFHA, who will send names and contact information of potential applicants. If referrals from the HWL are inadequate, contact CHP and request a referral. If they have none, contact an appropriate social service organization. (Managers at buildings with HOPWA designated units are to maintain contact lists with phone numbers and persons to contact at these agencies for HOPWA referrals.) 2. Call the persons referred for the units and invite them to apply for a unit. 3. Normal application, screening, verification and selection processes are then implemented by building managers (with the added requirement that managers must obtain verification that the person has been diagnosed with disabling HIV). (See Chapter III for a detailed description of screening and verification procedures.) 4. If a decision is made to accept the applicant, the San Francisco Housing Authority must be notified by the manager to conduct its process to certify and the person for Section 8 subsidies, determine tenant rent payment amounts, inspect the unit, and prepare certain leasing information and documents. f. McKinney Section 8 units (West) are for very-low income persons who currently meet the federal definition of “homeless”.

1. Contact Community Housing Partnership (CHP) to request a list of names of people who would be eligible to occupy a McKinney unit, having had their condition of homelessness certified. 2. Invite persons on the list to apply for a unit. 3. Normal TNDC application, screening and verification processes then take place. (See Chapter III for a detailed description of these procedures.) 4. If a decision is made to accept the applicant, the San Francisco Housing Authority must be notified by the manager to conduct its process to certify and the person for Section 8 subsidies, determine tenant rent payment amounts, inspect the unit, and prepare certain leasing information and documents. g. Homeless Youth units (Ellis) involves a program administered by Larkin Street Youth Services (LSYS) which works with homeless youth between the ages of 18-24 to help them stabilize their lives and housing. All units at the Ellis have project based Section 8 subsidies for use by persons in this program. Six of the 24 units are also intended for persons between the ages of 18 – 24 who also are HIV+ or have AIDS and are HOPWA eligible.

(1/9/2018) 12 1. Management should contact LSYS for referrals of persons they have evaluated and are serving. 2. Referrals come to the Ellis and then go through the normal TNDC application, screening and verification processes. (See Chapter III for a detailed description of these procedures.) 3. If the applicant is approved, the manager is to refer him/her to the San Francisco Housing Authority for an eligibility interview and processing in order to be certified as eligible for the Section 8 project based voucher subsidy.

E. Fair Housing Considerations

1. TNDC Policy on Non-Discrimination: Simply stated, it is TNDC’s policy that there shall be no discrimination whatsoever on the basis of race, color, ancestry, religion, national origin, sex, sexual orientation, age, marital status, disability, HIV/AIDS status, source of income or any other arbitrary factor in the process of leasing, rental or other provision of housing related services. Numerous state and federal laws prohibit discrimination against certain specified, protected classes of people. (See Appendix U for detailed information regarding state and federal fair housing statutes.) All staff are expected to be familiar with these laws and receive annual training regarding fair housing policies and procedures. Beyond the details, it is wise to remember a few key points that will help you to avoid discrimination complaints and violations:

GOLDEN RULES OF FAIR HOUSING COMPLIANCE

 Treat all persons equally, courteously and professionally during all points in the occupancy cycle:

o Provide them with the same information o Ask them for the same kinds of information o Make decisions regarding their tenancy using the same criteria

 Ignore any arbitrary factors unrelated to the legitimate interests of TNDC as a landlord when dealing with applicants and residents at all points in the occupancy cycle:

o In the application, screening, evaluation processes, focus only on what is important:  whether the applicant meets the specified resident selection criteria;  whether s/he will likely be a responsible tenant who pays rent in full and on time; and  whether s/he will likely behave in a manner that is respectful of other residents, management and the property.

(1/9/2018) 13  Use common sense!

2. Reasonable Accommodation for Persons With Disabilities: There is one aspect of federal fair housing law which does require that some people be treated differently: In order to afford persons with handicaps or disabilities with an equal opportunity to live in and use TNDC housing, there are requirements to consider and to make, where feasible, reasonable accommodations in modifying the physical structure and/or rules, policies, practices and services.

a. Whether a request is a “reasonable accommodation” is a highly fact-specific inquiry, requiring a case-by-case determination. Economic impact of providing the accommodation is not determinative, but affects whether the accommodation is reasonable. Key considerations in determining whether to grant the accommodation requests involve whether it would result in an undue administrative and financial burden, or a fundamental alteration of the nature of the program. (See Appendix U for detailed information and discussion of what constitutes a reasonable accommodation and factors in granting or denying them.)

b. Complying with laws to offer and provide reasonable accommodation can be difficult and complex, because there are also related laws which prohibit asking certain questions relating to disabilities. It is not appropriate to ask applicants if they need a reasonable accommodation due to a disability based on personal observations of the applicant, unless every single applicant is asked the same question. It would be difficult to ask that question consistently. However, by not asking, TNDC risks not providing an accommodation to someone who really needs but doesn’t know to ask. To solve both of these problems, a Notice of Right to Reasonable Accommodations or Specific Unit (See Appendix F, Form PM-103) must be distributed as a part of every application packet given to all prospective applicants. This informs applicants that they have a right to request a reasonable accommodation and giving them examples of what types of things they could request.

c. If an applicant or current resident desires to have a reasonable accommodation considered due to a disability, give him/her a Request for Reasonable Accommodation (See Appendix F, Form PM-109). If necessary, management staff should help them fill out the form. As part of this process, the person will have to present documentation of the need of the request from a third party. The general manager must discuss each such request with his/her property supervisor. The property supervisor will then take up the matter with the compliance division staff. The compliance division staff will then bring it to the attention of the director of property management director, either individually or in a panel review, before making a decision about granting the request and informing the requestor.

(1/9/2018) 14 d. Most of TNDC’s buildings have units which have been designed to address the needs of persons with physical disabilities. Applicants and/or current residents who desire to reside in these units may request them. If there are none available in a particular building, the person should be placed on a waiting list to get one once it becomes available. Or s/he should be informed of another TNDC building with similar units that may have an accessible unit available at the time, and be given the opportunity to apply and move into it, if they so desire.

Sometimes accessible units in a building for which there was no demand by persons with disabilities when it was vacant are rented to persons without disabilities. In those cases, the non-disabled tenants are to sign an agreement to transfer to a comparable non-accessible unit within the building should an applicant or existing tenant require an accessible unit.

F. Initial Contacts by Interested Persons

As a result of marketing efforts, persons interested in living at TNDC buildings will contact building management staff. Those contacts will be either by phone or by those persons coming to the building. Although it is the general manager, assistant manager or administrative assistants who will be assisting applicants through the application and screening processes, desk clerks and night managers must also be well-trained to explain in a helpful and positive manner, basic facts about the property and application process to interested persons.

1. Call-ins: Persons who learn about vacancies through flyers and postings on craigslist or elsewhere, may call the building first. a. Courteously give initial contacts by phone a verbal summary of the features and benefits of the vacant unit(s) available and the building. b. Give them basic information regarding eligibility criteria—principally any minimum and maximum income requirements (which should be on the current flyer issued to market the units), any special requirements such as age (e.g., 62 years and older for elderly units) or having a disability, and minimum/maximum household size. c. If, after getting more information about the units and some of the basic eligibility criteria, callers are still interested, provide them with the address and instructions on how to get to the building and general information about the application process, including the days and times they can pickup an application packet and be given a tour of vacant units. d. Note information about the call and caller in the building’s Monthly Traffic Report For Marketing Vacant Units form (See Appendix F, Form PM-110) including their name, phone number, contact date, contact type (e.g., call-in) and appointment date &

(1/9/2018) 15 time, if applicable and source by which the caller learned of the vacant unit (e.g., craigslist, flyer, etc.). (See Section 2 (d)(1) directly below for additional information about this report and form.)

2. Walk-ins: Persons who see signs posted on the buildings’ windows or other ads regarding vacancies, and those interested persons for whom appointments may have been set up by previous phone contracts or social service persons working with them, will come to the building to inquire about living there. a. If at all possible, even if the walk-in happens to be there at a time outside of specified “showing times”, give the person a tour of the building and a vacant unit. If it is not possible to provide a tour at the time of this initial visit because authorized personnel are not available to do so, then inform the person of the time(s) when units and building can be shown. Set up an appointment date, if possible. b. If the person is interested, give him/her an application packet. Explain its contents and how the application must be filled out. c. Walk-ins will be asked to fill out a Guest Card (See Appendix F, Form PM-111). Note information about the person in the building’s Monthly Traffic Report For Marketing Vacant Units form (See Appendix F, Form PM-110) including their name, phone number, contact date and type (e.g., walk-in) and the appointment date & time, date units shown, and/or date application packet given, if applicable and the source by which the person learned of the vacant unit (e.g. craigslist, Flyer, SFHA, etc.).

 This Monthly Traffic Report for Marketing Vacant Units form will be kept in hard copy at the front desk or manager’s office and should be filled out for each contact by interested persons. It is an invaluable tool for analyzing marketing and being able to contact and track interested persons in order fill building vacancies as quickly as possible. It also serves as a log The form will also be in the building’s directory on the “O Drive” and should be filled- in, there, as well. To preserve the basic template as a blank form, at the beginning of each month, save that month’s monthly traffic report as “[buildingname mm-yy traffic report.xls”]

3. Application Packet Contents: The standard TNDC application packet given to interested persons is comprised of six types of forms: a. The Flyer or Information sheet (See Appendix F, Form PM-112 for a sample) created by management providing specific information about the vacant unit(s) available, including their rents, minimum and maximum income requirements, and minimum and maximum household sizes.

(1/9/2018) 16 b. The Application. A generic application form is used for all buildings and all types of units (SROs, Studios and Apartments). The application packet must contain one copy of the Application Form (See Appendix F, Form PM-100) to be filled out by each adult member (18 years or older) of the applicant household. c. General Resident Selection Criteria (See Appendix F, Form PM-101). This helps potential applicants understand what standards they must meet to be eligible to live in the building and how their application will be screened and evaluated. It gives them an opportunity to self-select themselves out, if they know they will not meet one or more of these criteria which will cause them not to waste their time to apply and not waste management’s time to screen the application. d. Information About TNDC’s Application and Selection Process (See Appendix F, Form PM-102). This gives interested persons detailed information about how the application, interview, screening and selection processes work, and what their responsibilities are in order to make them successful and quick. e. Notice of Right to Reasonable Accommodations or Specific Unit (See Appendix F, Form PM-103). This informs applicants of their right to request reasonable accommodations in the process due to a physical or mental disability they may have. This can involve requesting certain things regarding physical nature of the unit they apply for or live in, or requesting certain modifications to rules and policies. All requests do not necessarily have to be granted, but this ensures that applicants know they have the right to make the requests. f. Checklist of Items to Bring to Application Interview (See Appendix F, Form PM- 104). This is a list of all the items to provide documented information regarding applicants’ identity, income, assets, rental and personal references which they will need to bring with them for their interview with management when they submit their applications so that the verification and screening processes may begin as quickly as possible.

G. Distribution of Applications and Provision of Information

Persons interested to live in a TNDC unit are entitled to receive an application packet upon request by phone or in person when they come to a buildings that have vacant units. As noted above, the application packet contains information about the process and a detailed description of resident selection criteria.

1. Giving and getting information from interested persons during the inquiry stage: When interested persons initially express interest in applying, they should be given verbal information about the process and eligibility criteria. A clear understanding of basic eligibility requirements before deciding to go through the application process by interested persons can save both them and TNDC management time and money. You

(1/9/2018) 17 will first need to know the total number of persons and the total number of adults over the age of 18 who would be applying to live in a TNDC unit to informally discuss eligibility criteria and to know how many copies of the application form to include in the application packet you may provide them.

If an individual or household’s income is clearly too high or too low to qualify for an available unit in a particular building, you can usually determine that by asking a few questions in a courteous and positive manner to get a “ball park” gross income estimate from them and give them feedback about it. This basic conversation gives them an opportunity to self-select themselves out of the process, if that is appropriate. However, TNDC may still be able to house them elsewhere.

 If their income is too low, perhaps you can direct them to an agency or building where they can apply and qualify for rent subsidies where the minimum income requirement would not be a barrier.

 If their income is too high for a unit in your building, there may perhaps be a vacancy in another TNDC building where the maximum income limits are high enough for them to qualify.

a. Describe the nature of the criminal background, sex offender, credit and eviction checks and what they entail. Ask them whether they anticipate having any problems surface with those aspects of the screening process? Ask them generally about where they’ve lived and why they’ve left those places.

b. If there is any doubt about whether a person or household might or might not qualify for the available unit in your building, encourage him, her or them to apply. Likewise, even if it appears the person or household will not qualify under one or more of the standard criteria, but they want to apply, anyway, give them the application packet, and then accept and screen their application as you would anyone else’s.

2. Providing Information When Giving Out Information Packets: When managers give interested persons application packets, walk through the materials with them and explain each stage in the process. This takes some time up-front, but will end up saving a lot more time in the long run.

Go over each of the eligibility and selection criteria with them again.

Point out that all questions on each application must be answered and it must be signed by the adult member of the household who that application is for. It must also be dated in order for the application to be deemed complete and the screening/verification process to begin.

Let them know that false information will cause their application to be denied, or if it is found that they provided inaccurate or fraudulent information on their application after they’ve been accepted as a tenant, they will likely be evicted.

(1/9/2018) 18 a. Go through each of the items noted on the checklist included with the application packet with them so that they are clear about what documentation they will need to bring in regarding their identity, income, assets and rental background for their application interview. b. Give them a card with the complex’s phone number and recommend that they call you ahead of the time they plan to come back with their application and documentation for the application interview. Make sure they understand that all adult members of the household must be present for that session in order to provide information and sign necessary forms used in the screening and verification process.

A. Application Acceptance and Interview Session

1. Accepting Applications: Accept only complete applications.

Before accepting an application, review it to make sure all questions have been answered or requested information has been provided and is clear.

Also make sure it has been signed and dated by the adult member of the household each application is for, and that applications for all adult members of the household are received at the same time. If an application is complete, note the date and time on the front page of each application when you have accepted it.

If all information for completion has not been provided, give the application back to the applicant and ask him or her to return it to you with the missing information. If they have omitted something minor, proceed with the application interview, but let the applicant know that it will not be deemed complete and they can not be accepted until they provide the missing information or documentation. (Do not accept applications which have not provided proper identification, a valid social security number and the $30 application fee.)

The section indicating the composition of the total household (members names, gender, date of birth, student status and i.d. number) on the first page should be identical for each application submitted.

1. Application Interview Steps:

a. Get Proper Identification: For each adult and minor in the applicant’s household, make a copy of their photo identifications for the file. Check these to make sure it is for the same person. If there are different addresses listed on the IDs, than what they have shown on their applications ask them about that. For minors under the age of 18, get copies of birth certificates and check to make

(1/9/2018) 19 sure that the parents names on the birth certificates match those of the adult applicants. If they don’t, find out why. Acceptable forms of identification for adults include the following:

1. Driver’s license or ID issued by the California DMV or other state departments of motor vehicles. Or, ID cards that have been issued by other state, federal or local government agencies. They should include a photo, address and information such as date of birth, height, weight, and eye color. 2. Passport (U.S. or foreign) 3. Alien Registration Card, with photograph (INS Form I-551); also known as a Permanent Resident Card, or a “Green Card”. 4. School ID with a photo 5. U.S. Military Card (including dependents’ cards), with photo 6. Various INS forms of documentation such as an:

a. Unexpired Temporary Card (INS Form I-688) b. Unexpired Employment Authorization Card (INS Form I-688A) c. Unexpired Reentry Permit ( INS Form I-327) d. Unexpired Refugee Travel Document (INS Form I-571) e. Unexpired Employment Authorization Document (I-688B) f. Border Crosser Card (INS Form I-586)

In lieu of original copies of the above, a photocopy may be accepted, if the photo of the individual is clear enough to be identifiable. If a driver’s or other state-issued ID license has expired, it should be accompanied by documentation that a new one has been applied for or requested. The following are not acceptable forms of ID:

a. A driver’s license or state ID request which is not accompanied by an expired photo ID or legible copy of one. b. A MUNI card c. Treatment program or clinic ID card d. Birth certificates for persons over the age of 18 e. Jail or Prison ID f. Expired documents noted above, except for a U.S. passport g. Letters containing applicant’s information with a photo attached h. Other documents not noted in the previous section

(1/9/2018) 20 Get a Valid Social Security Number: Get a copy of applicant’s social security card, or another document listed below which verifies the applicant’s social security number (SSN). More than one form of documentation showing the same name and number is preferable, where a social security card may not be available. Valid social security numbers are needed for criminal, credit/eviction background checks. Alternative sources include:

1. Driver’s license with a SSN 2. ID card issued by a federal, state or local agency, or a medical insurance provider with a SSN on it 3. Earnings statements or payroll stubs 4. IRS form 1099 5. Social Security benefit award letter 6. Bank statements, if they have a SSN 7. Retirement benefit letters 8. Life insurance policy records

c. Collect the $30 Application Fee: A $30 fee, payable by money order or cashier’s check only, is collected from each applicant over the age of 18 to cover the cost of the criminal and credit background check. This fee is not collected from applicants in the HUD buildings, nor from applicants for program units such as Shelter Plus Care and DPH/DAH. In hardship cases, this fee may be waived by managers, after getting authorization from your property supervisor.

d. Get the Blanket Authorization Form Signed: Each applicant over the are of 18 must sign a Blanket Authorization form (See Appendix F, Form PM-200. This form authorizes TNDC to do all necessary background checks of income, assets and criminal/credit background. Applicants must sign this form before the screening and verification process may commence. In the HUD buildings, applicants must sign the HUD Form 9887A (See Appendix F, Form PM-201) which does the same thing.

e. Get Reference Information: Applicants should provide housing references for the past three years on the Landlord Verification (See Appendix F, Form PM- 203). They should complete, sign and date this form—providing the address, phone number and fax number, if possible, to enable contact of their former landlord.

 If the applicant claims to have been homeless during the past two years, they must fill out, sign and date the Certification of Homelessness (See Appendix F, Form PM-204)

 Applicants should also provide two personal references to contact of persons who are not related, if possible, using the Personal Reference form (See Appendix F, Form pm-205).

(1/9/2018) 21 f. Go Through the Tenant Income Certification Questionnaire: Ask each member of the household to answer questions on the Tenant Income Certification Questionnaire (See Appendix F, Form PM-202). This form is also referred to as the “TICQ”. Do a questionnaire for each applicant over the age of 18.

1. Point out that these questions must be answered completely and truthfully. Let them know that if it is found that false information is given here, there application will be denied. Or, if their application is approved, but it is later found that this information is not true, they will likely be evicted.

2. Have each applicant sign and date the form.

3. Once all the TICQ questions have been asked and answered, compare them with what the applicant stated on their applications; if there are discrepancies, resolve them by asking the applicants questions, and then have them make changes to the incorrect document.

4. Based on the information provided to the questions on TICQ, have household members sign and provide contact information for whichever of the following income and assets verification forms are deemed appropriate to verify the information they have given you:

Verification Form Name Form Number Comment (See Appendix F) Employment Verification PM-206 Applicants should also provide managers with 3 months of paycheck stubs. Unemployment Income Verification PM-207 For currently unemployed persons, to sent to the Employment Development Department to fill out. Self Employment Affidavit PM-208 Copies of income tax returns also needed for verification Termination of Employment PM-214 Use if applicant has indicated Verification that their employment ended Disability Income Verification PM-215 Use for state disability insurance, workers compensation insurance or disability insurance from private insurers. Social Security Income No Form Ask applicant to bring in or obtain at the SF Social Security Office an “Award Letter” or printout showing the amount of their Social

(1/9/2018) 22 Security, SSI, or SSDI payment Public Assistance Verification PM-216 To be filled out by the SF County Dept. of Human Services for persons with General Assistance income Client Payment Verification PM-217 For persons on a money management “payee” program. Have “payer” fill this out

Child Support Affidavit PM-218 Applicant fills out and certifies amounts & circumstances of child support on this form

401k/403b/IRA Account Verification PM-219 Account administrator must fill this out, if applicant has a 401K, 403B, or IRA Account

Gift or Support Income Verification PM-220 Parents, other family members or friends need to fill this out if they provide regular financial support to applicant Retirement Income Verification PM-221 To be filled out by financial institution administering applicant’s retirement account Annuity & Pension Verification PM-222 To be filled out by pension or insurance company administering applicant’s acct. Life Insurance Verification PM-223 For holders of life insurance policies, use this form to determine the value or amount of payments applicant receives. Under $5,000 Asset Certification PM-224 Have applicant fill out and sign this form if s/he indicates having assets worth less than $5,000. This will avoid the need to send out verifications for other assets. Certification of Zero Income PM-225 Have applicants who contend that they have no income at all fill out and sign this form.

(1/9/2018) 23 Determine how they will get food and other necessities of life? Income Tax Return Non-Filing Status PM-226 Declaration for persons who Declaration indicate they have not filed tax returns during either of the 2 previous tax years IRS Form 4506-T (in .pdf format) PM-227 A request to the IRS for copies of any tax returns filed by the client during the past two tax years Student Verification PM-228 Use only for tax credit buildings to determine if all household members meet the definition of “full-Time Student” Self Affidavit PM-229 For the applicant to declare and certify certain things regarding their eligibility that are not covered by other forms. Clarification Sheet PM-230 Use this to document questions and answers from either applicants or verification sources when there are inconsistencies or things that are not clear. Certification of Homelessness PM-231 Verification by homeless services providers for persons who are or have been homeless Veterans Benefits Verification PM-232 To be filled out by the Veterans Administration for applicants receiving veterans benefits . 5. Once all of the verification documents are signed, go back to the application and look at the section which gives the applicant an opportunity to provide any additional information.

a. If they did write anything in that section, ask clarification questions about it, if you have any. b. If they did not write anything in that section, inform them that TNDC does a very thorough screening including criminal, credit and eviction background checks, and that if there is anything negative that might turn up, now would be a good opportunity to explain their

(1/9/2018) 24 side of it. If they do reveal anything, ask any questions you may have about it, and document that conversation and information in a note that you place in the applicant’s file. If that information contradicts anything else they may have stated in the application, make a note of that.

6. At the end of the application interview, thank the applicant(s) for their time and information. Give them an approximate timeframe as to when you think they may hear from you with a decision on their application. Ask them to keep you informed of their housing status and contact number(s) so that you can easily reach them once a decision has been made.

(1/9/2018) 25 EXHIBIT 2-1: Special Program Referral & Application Requirements

Types of Source of Buildings Additional Program Units Applicants (Units) Applicant Involved Approval Process HUD 221(d) Waiting lists Alexander None (3) Section 8 developed and (All) for Seniors & administered at Antonia Disabled sites by (All) [HUD managers. Maria (All) Contract] Contact persons Aspen (All) at top of list to apply for available units. Shelter + Care SF Human Ambassador SF Human Services (50) Services Agency S + CCR (25) Agency S + Care program Curran (10) Care program office refers Franciscan must also candidates to (35) approve TNDC’s Social applicants, Work Unit following which does TNDC’s initial screening approval. And before referring SFHA must do candidates to leasing approval building after receiving a managers for Request for application & Tenancy processing Approval (RTA) from TNDC. Project-Based TNDC building Dalt (44) Must be Section 8 managers West (40) certified for request list of Curran (16) Section 8 by PB Section 8 Ellis (24) SFHA, applicants from Ritz (88) following SFHA. Send TNDC approval out hundreds of outreach letters to persons at top of those lists. Invite those responding to apply for vacant

(1/9/2018) 26 units. Types of Source of Buildings Additional Program Units Applicants (Units) Applicant Involved Approval Process Tenant-Based Persons with All except Following Section 8 these subsidies for units TNDC building Vouchers must have designated approval, SFHA previously at TNDC must also screen approved buildings and approve certifications by for HUD, person based on the SFHA. Project- a RTA Then they may Based submitted by apply directly at Section 8, TNDC building TNDC Shelter + manager. buildings Care and DPH (DAH) Department of DPH refers CCR (60) Following Public Health candidates from West (40) TNDC approval, Direct Access “access points” Dalt (10) DPH must to Housing (health & social Ritz (10) approve and (DAH) services TNDC must providers) to contact TNDC Social Lutheran Social Work Unit, Services (LSS) which to set up a interviews and money forwards the management & applicants to payee process appropriate for the approved building applicant. managers for application & processing Housing Can be referred Alexander Must be Opportunities by the SFHA, (10) certified for for Persons from Ambassador Section 8 by With AIDS administrator of (23) SFHA, (HOPWA) citywide West (10) following Housing Wait TNDC approval. List (HWL), Community Housing Project (CHP), and some

(1/9/2018) 27 appropriate social services agencies Types of Source of Buildings Additional Program Units Applicants (Units) Applicant Involved Approval Process McKinney Referred from All except Must be Section 8 for Community for units certified for Homeless Housing designated Section 8 by Persons Partnership at TNDC SFHA, (CHP) buildings following for HUD, TNDC approval. Project- Based Section 8, Shelter + Care and DPH (DAH) Homeless Homeless youth Ellis (24) Must be Youth Section are referred by certified for 8 Project- Larkin Street Section 8 by Based Youth Services SFHA, Vouchers (LSYS) which following will have done TNDC approval. an initial evaluation.

(1/9/2018) 28 III. APPLICANT VERIFICATION, SCREENING & SELECTION PROCESSES

A. Introduction

Chapter II covered the marketing and the application distribution, acceptance, and interview processes through the tasks of asking the Tenant Income Certification Questionnaire questions and getting applicants signatures on the blanket authorization and an all relevant verification forms.

This chapter provides information about the subsequent procedures leading to resident selection decisions--involving verification, screening, income calculations and analysis/evaluation of all information acquired. A summary of the TNDC application, screening, verification and resident selection process is graphically provided on a two-page flow chart, included as Exhibit 3-1 at the end of this chapter.

To keep this chapter as concise as possible, it will concentrate on the major concepts, procedures and steps involved in verification, screening and resident selection. Detailed information regarding how to do certain income and assets calculation procedures have been placed in the following appendices:

 Detailed information and tips regarding how to determine and calculate income is placed in Appendix W .

 Detailed information and tips about how to calculate the value and income from assets are included in Appendix X.

The verification and screening processes are designed to produce answers--in a fair, consistent and professional manner--to two basic questions before a decision is made about whether or not to approve applicants to live in TNDC units:

1. Are the applicants eligible? This involves determining whether they meet clearly defined resident selection criteria such as minimum and maximum income requirements, household size requirements, full-time student status requirements (in the case of Tax Credit buildings), and perhaps whether they meet some other specific eligibility requirements of special programs that govern the units applied for--such as age and disability status.

2. Are the applicants acceptable and appropriate? This involves collecting sufficient background information about whether the applicants have a history of behavior which will make them the kinds of tenants who will be able to live in compliance with their lease--by paying their rent in full and on time and behaving in a manner which respects the rights of other tenants, management and the security of property, itself. This aspect of

(1/9/2018) 29 screening specifically looks at whether there is a history of rent delinquencies and evictions, whether the household exhibited poor housekeeping to the extent that it created a health or safety problem for others, whether there is a record of irresponsible behavior for satisfying financial obligations, whether the household exhibited behavior which was inconsiderate of neighboring residents and/or management, and whether there is a record of convictions for criminal behavior—especially involving assaults, sex crimes, drug use and dealing, and theft.

Errors made in the verification process for the first question will jeopardize TNDC’s compliance with public subsidy program regulatory requirements and can result in penalties that are very costly in both time and money to remedy. Inadequate screening and poor judgments made with regard the second question can also result in considerable time and financial costs expended in dealing with, and perhaps having to evict, tenants who are unsuited to live in TNDC’s residential communities. Both types of determinations are extremely important, and well worth the time that it takes TNDC managers to do a thorough job of screening, verifications, analysis, and decision making to minimize mistakes in the resident selection process.

B. Performance Goals

1. Outcomes: TNDC seeks to achieve the following outcomes in the implementation of its applicant screening, verification and selection processes:

 The period between the time of the application interviews when all verification and release of information documents are signed and the time when applicants are informed of TNDC’s decisions on their applications will average less than 15 calendar days. (Note: This performance standard recognizes that it may take more than an average of two weeks for move-ins to TNDC units, given the requirements for external agencies’ additional approval and processing of tenants, in many cases.)

 There will be no fair housing-related judgments decided against TNDC for the manner in which its management staff handles application verification, screening and selection processes.

C. Verifications

Rental applications are, fundamentally, information gathering tools. Most people are honest and will provide valid information about their circumstances; and, they will also make good tenants. However, some people, use rental applications for affordable housing as exercises in “creative writing”. They may understate their incomes to qualify for an “affordable” or subsidy. Or, they may not include information about their history and backgrounds which might indicate they are not likely to be responsible and respectful tenants.

(1/9/2018) 30 Although many affordable housing applications and related verification/certification documents include language indicating that providing false information is a crime they could be prosecuted for--it is a safe bet to say that no one in recorded history has ever spent a day in a local, state or federal prison for lying on an application for rental housing!

It is your job, however, to find out the truth about all applicants, and do your best to deny tenancy to those who would be deceptive in the application stage. If an applicant lies to you up-front and gets away with it, s/he may also likely mislead management when it comes time to pay their rent or to comply with their lease or house rules provisions as tenants, if they are approved. Synonyms for the word “verify” include the words “prove”, “authenticate”, “validate”, “substantiate”, and “make sure”. It is your job to do all of those things in the application information verification process.

1. Levels of Verifications: TNDC follows verification procedures required by the California Tax Credit Allocation Committee (TCAC) and outlined in Chapters 3, 5 and 6 of the HUD Handbook 4350.3, REV-1 for all units, regardless of whether or not they are tax credit projects or projects receiving HUD subsidies. (Each building management office should have a copy of HUD Handbook 4350.3, REV-1 for managers’ reference use in the screening and verification process.) There are three types, or levels, of verifications:

a. Third-Party Verifications: These should be used whenever possible. Third-party verifications are written verifications received from applicable sources-- independent from the applicant or other household members, who are not to deliver the verification to the source or return completed verifications to management. Such verifications are obtained by having household members sign the Blanket Authorization form (See Appendix F, Form PM-200) granting TNDC management the right to request the information, and then by mailing or faxing to sources the relevant income, asset or student status verification forms that have also been signed and dated by applicants during the application interview session. Keep in mind the following regarding 3rd party verifications:

 Keep extra copies of signed verification forms, in the event the first attempt(s) to get a response from sources is unsuccessful and to document that they have been sent out to the applicable sources.

 Keep a record of dates when verification forms were sent out and received, and follow-up attempts for each source of applicants’ income, assets or education services on the Verification Log form (See Appendix F, Form PM-232), which must kept be in each applicant file. Also note mailings of landlord and personal reference forms on this log as well.

 If a third party will not respond to a written request to verify information, HUD Handbook 4350.3, REV-1, Change 1 allows managers to attempt to verify income information or get references over the phone. If the third party will answer all of the relevant questions over the phone, note all of the information on a copy of the

(1/9/2018) 31 verification form you mailed. Note the name and title of the person providing the information and the date. Also attach a copy of TNDC’s Record of Phone Conversation form (See Appendix F, Form PM-233) documenting the conversation.

 When sending out requests for third-party verifications, include a self-addressed stamped envelope to expedite the source’s returning the signed and dated original to you. Each 3rd party verification form also requests that the sources fax a copy to you, as well, so that you will receive the information as quickly as possible.

 Completed verifications must contain enough information to use in the certification process. When reviewing and analyzing verifications received, cross check and compare the information received from 3rd party sources with the information applicants have provided you in their application and Tenant Income Certification Questionnaire (See Appendix F, Form PM-202) and any documentation such as pay stubs and bank statements. If any information received is incomplete or unclear, contact the source and use the Clarification Sheet form (See Appendix F, Form PM-230) to record the phone conversation and clarification information received from the source.

 Third-party documentation should not have anything that is “whited out”. If you happen get this, you will need to request another written third-party verification from the source. If the source declines or fails to complete a second request, complete the Clarification Sheet (See Appendix F, Form PM-230) with the appropriate questions and answers. b. Second-Party Verifications: These should be used as primary sources for verifications only when there have been several documented unsuccessful attempts to obtain third- party verifications over a period of four weeks. Second-party verifications are documents that are provided to you by applicants (or are handled at any point in the process by applicants) which contain information regarding the income or assets in question—such as check stubs, grant award letters, bank statements, copies of income tax returns, and W- 2 forms. (These documents, are often requested by TNDC from applicants, in any case, as backup information and for comparison purposes to third-party verifications.) Tips:

 One type of income verification—Social Security, SSI or SSDI—is not only acceptable, but required, in non-HUD buildings from a second-party source where by applicants with this source of income are permitted to provide a copy of their Social Security Award Letter or to got to the Social Security office located a few blocks from TNDC’s office and provide a print-out of their Social Security, SSI or SSDI award amounts. NOTE: In HUD buildings, managers can request and get these verifications from applicants on-line by using the OneSite property management software.

(1/9/2018) 32  Whenever second-party documentation is used for other types of verifications, make sure the Verification Log (See Appendix F, Form PM-232) clearly documents multiple unsuccessful follow-up attempts to get third-party verifications from those sources.

 Sometimes, second party verification is unavoidable. If the applicant is living with a roommate who is the leaseholder for the apartment and the applicant’s name is not on the lease, the real landlord is the roommate who is subletting a portion of the unit. Request a housing reference from the roommate to find out how well the applicant keeps up with rent payments. However, since the verification will be mailed to the applicant’s own address, there is no way to confirm that the form was not handled by the applicant. In a case like this, it is reasonable to send the form with the applicant and allow them to return it when completed. Sending the verification through the mail will only cause a delay and will not guarantee that the verification will be third party.

 If second-party verification is documenting a recurring item, require a number of documents such as the last 6 months of bank statements or the last 6 pay stubs to be able to calculate average income or average bank account balances. Also, year-to-date information on pay stubs is very important information to be used in income calculations. (See Appendix W for details on doing income calculations.)

c. First-Party Affidavits: In some cases, information cannot be verified by either third or second party verifications--such as certification of zero income, or the fact that court- ordered child support payments are not being received. Relevant household members will then need to sign and date these affidavits where they provide the information directly and certify that it is true and correct.

2. What Must Be Verified: The following information provided by applicants in their application and in their responses to the Tenant Income Certification Questionnaire (See Appendix F, Form PM-202) must be verified:

a. Types, sources and amounts of household income (See Appendix W for details)

b. Types and value of assets and income derived from the assets (See Appendix X for details.)

c. If it is a tax credit building, whether all members of the household are full-time students? And, if so, whether they would be eligible for residency anyway if they qualify for one of the exemptions specified in the law? (See Section F, below, for details).

d. Rental status and history for at least the past three years.

(1/9/2018) 33 e. Other specific criteria which may be required because of special program status affecting the TNDC building or the particular unit being applied for within it.

3. Length of Time Verifications Are Valid: Verifications are valid and effective for 90-days after the first one was received. (Date stamp them as they are received for this purpose.) The validity of third-party verifications can be extended for an additional 30 days, by contacting the source to determine whether any of the information has changed since the source provided the information, and documenting it on the Clarification Sheet form (See Appendix F, Form PM- 230.). After 120 days a new verification must be obtained to replace the expired one. (Note that Tenant Income Certification Questionnaires (TICQ) (See Appendix F, Form PM-202) also must be extended with a clarification update [regarding whether their income, income sources and value of assets have changed] from the applicant, if they become older than 90 days.) The best practice to avoid these problems is to make every attempt to complete the screening, verification and selection process that results in a leasing/move-in date that will be well under 90 days from the date of the TICQ.

D. Background Screening

1. Screening Services: TNDC subscribes to Internet based background reporting services. Reports are generated for each individual adult applicant separately, not for an applicant household. The reports are run for all adult applicants, regardless of whether or not they paid the $30 fee-- which is not required for HUD and some other special program units. Click on your computer’s link to the reporting service’s Web site. Once you have logged in, you will be prompted to enter the following information about the applicant:

 full name  current address  social security number  date of birth

Double check that you have spelled applicants’ names correctly and entered all other information correctly. Typos and misspellings may result in inaccurate or incomplete reports.

2. Screening Reports: The reports generated will provide information regarding the following:

a. Addresses where the applicant has lived during the past five or more years

b. Evictions—indicating dates, addresses, types and judgment amounts

(1/9/2018) 34 c. Criminal convictions

d. Credit history—including accounts placed for collection, judgments and bankruptcies

Compare all of this information with that which the applicant has provided on his/her application for consistency. Where there are inconsistencies, ask questions of the applicants to resolve them and determine what information is valid. Credit and other types of background screening reports, sometimes “get it wrong”, particularly for people with common names. It is only fair to the applicants to make follow-up inquiries in order to be sure whether the report information is actually their information and that it is current.

Determine whether any of the information in the report indicates the applicant would not meet one or more of the resident selection criteria. Discuss eviction and criminal conviction information with your property supervisor or compliance department staff if you are not clear as to whether it would disqualify the applicant. The one type of criminal conviction on the report which will automatically disqualify the applicant household, without exception, is for a sex offense.

E. Verifying and Calculating Incomes

1. The Importance of Getting it Right: The most detailed and reviewed part of the verification and screening process involves verifying and calculating incomes. Particularly for the tax credit program, mistakes in this process can have serious consequences for TNDC, as well as the limited partners who depend on being able to receive a certain level of tax credits based on occupancy of the projects units by households who are income eligible.

The California Tax Credit Allocation Committee (TCAC) and limited partners audit a sample of tenant files periodically to ensure that the income certification and recertifications are being done correctly. Minor miscalculations will be noted. A pattern of minor miscalculations or instances of major miscalculation which have allowed ineligible households to become tenants will result in an issuance of an “8823” form regarding non- compliance with tax credit program rules, which is sent to the IRS. This can have serious financial consequences to the partnership, which includes the limited partner investors and TNDC--as the managing general partner which is responsible for complying with all of the program’s rules and regulations.

2. What Comprises Income?: Income is money that comes to members of a household, which it can then use to pay for living expenses or other things they want. In general, sources of income and amounts that must be counted in calculating income for TNDC’s certifications and recertifications include:

 Employment: The gross amount before any payroll deductions of wages, salaries, overtime pay, fees, tips, bonuses and other compensation for personal services;

(1/9/2018) 35  The net income from operation of a business or profession.  Public benefit programs such as General Assistance, or Temporary Assistance to Needy Families. (However, the value of Food Stamps received are not counted as income.)  Retirement benefits from programs established by employers or public programs like Social Security.  Pensions.  Annuities and payments from life insurance policies.  Disability insurance payments, such as Supplemental Security Income, state disability income, or payments from workers compensation.  Periodic and determinable allowances such as child support and alimony payments from an estranged spouse, or gifts from relatives or others.  Direct or imputed earnings from assets owned--such as interest from savings accounts, and interest or dividends from various types of investments, or rental payments from property owned.

Refer to Appendix W for a complete, detailed list from HUD Handbook 4350.3, REV-1 of what is, and what is not included in income calculations for housing eligibility.

3. Income Calculations: To determine income eligibility—whether applicants have “enough”, but “not too much” income--you need to calculate income from all sources and for all household members (with a few exceptions noted below). You need to be aware of what to count, and how to count it from two broad categories:

1. direct income sources; and, 2. income that is either directly derived, or “imputed” from, assets.

Detailed information regarding the mechanics of calculating direct income is included in Appendix W, and detailed information regarding the mechanics of calculating direct and imputed income from assets is included in Appendix X of this manual in order to keep this chapter as brief as possible. The discussion of income calculations in this chapter will deal only with the broad concepts and most important information for you to be aware of, instead of all the details. Detailed information is also provided in HUD Handbook 4350/3, REV-1, Chapter 5 which every management office should have a copy of. Refer to both of these sources for methodologies when you are doing income and asset calculations. If these sources don’t answer all of your questions regarding what to count and how to count it, contact your property supervisor or a staff person in the compliance department to get clarification and answers from them.

4. Key Points To Remember When Verifying and Calculating Household Income: While you should read and regularly review the detailed methods and procedures for calculating incomes in Appendices W and X, noted above, this section will highlight certain MAJOR POINTS that you should always be aware of, and keep in mind in the process of verifying and calculating incomes both for applicants and when doing recertifications.

(1/9/2018) 36  INCOME VERIFICATIONS:

o Except for self-employment income sources and amounts which necessitate “2nd party” verifications (and/or “1st party” affidavits of income “not received” such as affidavits stating adult members have no income or are not receiving court-ordered child support), always try to get “3rd party” verifications that the applicants never touch or see.

. Keep a record of the verifications you have mailed or faxed out on a Verification Log (See Appendix F, Form PM-232.

. Attempt to get the 3rd party written verification several documented times before attempting to get a documented verbal verification, or a 2nd party written verification.

o If any information is unclear, inconsistent or incomplete in the verifications you receive, contact the person who provided the verification and ask sufficient questions to resolve what is incomplete, inconsistent or unclear. Document your conversation and findings on a Clarification Sheet (See Appendix F, Form PM-230).

 INCOME CALCULATIONS:

o You are calculating projected and anticipated annual household income for the next 12 months.

. Take into account and include calculations for possible new or changed circumstances from the current situation, such as pay raises, different amounts of time worked, new or additional jobs, etc.

o When calculating income from wages and salaries, always use the gross amounts shown on documentation, which is the amount earned before any deductions like taxes, health insurance costs and retirement plan amounts are subtracted.

o Most verified income figures you get will not be annual amounts. You will need to annualize them in your calculations by applying certain factors (such as multiplying full-time hourly wage amounts by 40 hours per week, and then multiplying that by 52 weeks a year). See Appendix W for a list of the appropriate annualization factors with which to multiply the verified wage and salary amounts you get.

(1/9/2018) 37 o Employment calculations need to be done three ways: From verifications, from pay stubs, and from Year-To-Date information provided by employers and extracted from information on pay stubs. Sometimes there may be discrepancies that you can’t get completely resolved with a clarification call, such as when figures on applicants’ last 6 pay stubs applicants are required to give you suggest one level of projected income, the 3rd party verification received from that applicant’s employer yield a different level, and the year- to-date figures may result in another slightly different total. In those cases, always use the calculations which result in the highest amount of income (except in the case of HUD properties). Document the discrepancy on a Clarification Sheet (See Appendix F, Form PM-230 to, to indicate which figures you are using and why.

o Where earnings or other revenues are not always consistent, you will need to make certain assumptions and base your calculations on averages which you must calculate first. Always document your assumptions, so that another person reviewing your work will clearly be able to understand what you did and why.

o Always use a printing calculator with a tape. Attach the calculator tape to the verification. Label what each part is, so that there is no guess work on the part of the auditor or reviewer.

o Always carefully look at the results of your calculations in connection with the verified figures you’re working from. Then ask yourself, “Does this result make sense?” If the answer is “no”, then do it again.

o Assets are generally defined as something of value owned by the applicant which are already, or could be converted into, cash. They can include things like bank accounts, investments, cash kept under the mattress and real property owned (but not personal property like furniture or automobiles). When calculating income from assets, refer to Appendix X for detailed information regarding what “assets” include and don’t include, plus detailed information on how to calculate incomes from them.

o Be aware of the following important steps, considerations and complexities of calculating income from assets:

. First you need to determine what assets all members of the household own from information provided on the application and Tenant Income Certification Questionnaire (TICQ) (See Appendix F, Form PM-202).

. Second, you need to determine the “cash value” of those assets, which is defined as their “market value” less the costs to convert it to cash.

(1/9/2018) 38  In the case of a savings account, its market value is the same as its cash value because it doesn’t have any conversion costs to withdraw the money from the bank and start spending it.

 However, the cash value of rental property or a Picasso painting owned by the applicant would be its “market value”, less what it would cost to sell it (i.e. broker commissions, legal and closing costs, etc.)

o Third, you need to know what, if any, income the assets have been earning in the recent past such as interest and dividends? You want to know both the amount of income earned and the “rate” of interest or dividends. Or, if the asset is rental property owned, what is the monthly rent that it has been earning and would be expected to earn in the next 12 months, if a rent increase is proposed?

o Fourth, you need to add up the cash value of all the household’s stated assets to determine whether they are over or under $5,000.

. For households with total assets with a cash value less than or equal to $5,000 you must simply calculate the amount of income those assets are expected to earn during the next 12 months.

. NOTE: For all HUD properties, the above step does not apply. All assets must be verified for actual income earned from them, even if their total cash value is less than $5,000

. For households with total assets having a total cash value of over $5,000, you must do a second calculation: Multiply an “imputed interest rate” (presently 2%) times the total cash value of all of the assets, regardless of whether they’re presently or will earn income during the next 12 months. Then, you must include the greater of this imputed income or actual prospective income earned when doing the final calculations of total household income.

o There is one more complexity you should be aware of in the Under/Over $5,000 cash value of assets circumstance:

. For all buildings except the HUD projects of Maria Manor, Antonia Manor, Alexander and Turk –Eddy Apartments Eddy Street, if the applicants state their assets have a cash value of $5,000 or under, the head of household can execute the Under $5,000 Assets Certification form (See Appendix F, Form PM-224), which will then save you the trouble of having

(1/9/2018) 39 to get 3rd party verifications of those assets.

. However, for the 4 HUD projects, 3 rd party verifications must be obtained for all assets, regardless of whether they are valued over or under $5,000.

o NOTE: Although employment earnings of family members under the age of 18 are not counted in calculations of total household income, the income—either actual or imputed-- from assets in their name, such as savings accounts, are counted in total household income calculations.

o Once you have received all of the required income and assets verifications and calculated incomes from them it will be time to put it all together, by filling out an Income Calculation Worksheet (“ICW”) (See Appendix F, Form PM-237). On this Worksheet, you will:

. list the name of each household member; . list each income source and projection formula; . list each asset, its cash value, interest (if applicable), income derived from it, and imputed income from assets (where their total cash value exceeds $5,000); . determine total household income by adding the sub-total from the Income Section to the sub-total in the Assets Section (which will be the higher of actual income earned from assets or imputed income from assets); . fill out the eligibility section by indicating any “special eligibility” considerations, what type and size of unit the household would be eligible for, and calculate both the TCAC/HUD and MOH percentage of median income for their household size, based on the total income figure you calculated above; . run a tape of all these calculations and attach it to the ICW; . indicate the file approval expiration date by adding 90 days to the date of the first verification received; and . sign and date the worksheet.

o NOTE: For the four HUD projects (Alexander, Antonia, Maria and Turk-Eddy Apartments), inputting the relevant information into the “One Site” software, will generate a “Trial 50059” to review for correctness. Also do an ICW for these properties for Tax Credit program compliance purposes.

o When you’ve done all this, you’re not done! Go back and double check all of your entries and calculations to make sure all household

(1/9/2018) 40 income assets listed on the application and TICQ have been included and that the calculations have been done correctly.

o After you have double checked your work, you’re still not done! Give the applicant’s file and the ICW to another management person in your office and have them triple check it for completeness and accuracy. It always helps to have a fresh set of eyes review one’s work. Catching any errors or omissions at this point will save lots of time in the long run. It will also increase the likelihood for the file to be approved expeditiously by the “review and approval layers” in the central office, which is discussed in Section I below.

F. Verifying Full-Time Student Status

1. Applicability: The Low Income Housing Tax Credit program considers households which are comprised entirely of “full time students” to be ineligible, unless one or more household members meets one of the federally or state specified exemptions. Verifications, except as also noted below, must to be obtained from the educational institutions that members of the applicant household attend. Therefore, student status must be screened for, and verified, in the following buildings:

1. Alexander Residence 2. Ambassador Hotel 3. Antonia Manor 4. Curran House 5. Dalt Hotel 6. Ellis Apartments 7. Maria Manor 8. West Hotel 9. SOMA Studios 10. Plaza-Ramona Apartments 11. Klimm Apartments

2. What is Full-Time Student Status?: There is no set definition of what a “full-time student” is, in the sense of there being a specified standard for a particular number of units or class hours they’re enrolled in. The designation of this status is left up to the educational institutions where they are studying to define:

a. For each household member which the application or TICQ indicates is a student, fill out the Student Status Verification form (See Appendix F, Form PM-228) and have the applicable household member sign and date their form. Then fax or send them to the educational institution where they study, and follow up until you get them returned with the verification information.

(1/9/2018) 41 3. Exemptions and Exceptions:

a. Students enrolled in kindergarten through the 12th grade (“K through 12”) are considered full-time students. However, if they are under 18 years of age, their status does not need to be verified on a Student Status Verification form (See Appendix F, Form PM-228). If the K through 12 student is 18 years or older and still in high school, their status does need to be verified. However, in these cases, TCAC allows for a verbal verification by calling the high school where the person is enrolled to get the verification of their full-time student status, and then documenting it on a Clarification Sheet (See Appendix F, Form PM-230).

b. There are four exceptions specified in federal law which would allow households with all persons deemed to be full-time students to still be eligible to live in a tax credit unit:

1. It is a single parent with children, none of whom is a dependent of a third party. 2. The full-time students are married and file a joint tax return. 3. A full-time student in the household is receiving Temporary Aid to Needy Families Assistance (TANIF). 4. One or more of the full time students is participating in an approved federal, state or local job training program to reduce the household’s dependency on public assistance.

4. Key Points to Remember When Verifying Full-Time Student Status Eligibility:

o As with income verifications and calculations, determination of full-time student status is prospective for the next 12 months. So, you need to determine not only whether household members are in school now, but also whether any plan to become students within the next year.

o Consider a single person household to be ineligible if s/he is now or will be a full- time student at any time during the 12-month certification period.

o Consider a household of students to be eligible if it includes:

. at least one part-time student; . at least one member who meets one or more of the above exceptions; . at least one child who will not be in school at all during the next year (e.g., pre-kindergarten, or an older child who may have dropped out of school or graduated).

o NOTE: If a household member over 18 years of age is determined to be a full-time student and is not a head of household, only the first $480 of his or her annual

(1/9/2018) 42 employment income is to be counted when calculating total household income for eligibility purposes.

o NOTE: If the student receives student financial grant assistance (not including student loans) in excess of tuition, that excess amount is to be counted in calculations of total household income unless:

 the student is over 23 years of age and has a dependent;  the student is living with or applying for a tax credit unit with their parent or guardian;

G. References

There are two principal types of references management should get on applicants:

o Housing references from landlords; and, o Personal references.

References are extremely important because they can give you the best information about the “acceptable” or “appropriate” side of the resident selection decision and analysis. They can give you useful information about whether applicants are likely to pay his or her rent in full and on time, treat their neighbors and management respectfully, and treat their unit and the building responsibly. In short, it will help you evaluate whether the applicants are likely to be able to comply with the provisions in TNDC’s lease and house rules. These references also can give you an answer as to whether the applicants have been truthful in the information they have provided on their application.

1. Rental Housing References from Landlords: In order to be able to completely evaluate residents against the resident selection criteria which indicate there should be no evictions during the past 3 years, you should try to get landlord references going back 3 years to determine whether there have been evictions during that period and what kind of tenants they have been. As with all other resident selection activities, reference checks must be conducted fairly and consistently.

There are several important things to keep in mind relating to landlord references:

a. Evictions are not always reported to the credit reporting services and therefore may not show up on the background screening check (See Section D, above.). So, contacting landlord references may be the only way to know an applicant’s rental history for sure.

b. Even though evictions may not show up on the background reports, the applicants’ addresses during the past three years may show up. Compare them to the addresses they have given you on their applications.

(1/9/2018) 43  If there is an address discrepancy for where the applicants have lived during the past 3 years, contact the applicant about it.

 If it turns out that the report is correct, get contact information for the landlord at that address to check out. c. Try to get references from both present and past landlords. Present landlords, if they have a very poor tenant who they’d like to get rid of with as little hassle as possible, may have an incentive to be less than truthful on their references for TNDC applicants. Former landlords, may be more honest about the applicants’ behavior with regard to compliance with their lease responsibilities. d. Send out the Landlord Verification form (See Appendix F, Form PM-203). If it is not received back within a week, call the landlord and get a verbal reference, documenting it on the Clarification Sheet (See Appendix F, Form PM-230) and recording the answers to the questions on a Copy of the Landlord Verification form. Sometimes, it is even preferable to get a landlord’s reference verbally, because they may be more honest and forthcoming than if they had to put something negative in writing.

When asking questions of landlord references verbally, ask them in a way that the respondent will have to give you the information that can confirm what the applicant has stated on his/her application. Don’t ask questions in a way which gives the respondent the information you are attempting to confirm. For example, don’t ask: “Did {person’s name} live at 1234 Main Street, Apartment 101 owned (or managed) by you between February 2005 and May 2006?”. Instead, ask these types of questions to get information needed for the Landlord Verification form: “In what capacity did you know {person’s name}?” Assuming the respondent reveals that s/he was the applicant’s landlord, then ask, “What was the address?”, and “When did {person’s name} live there?”, and “What were the circumstances under which {person’s name} moved?” Remember: Let respondents give you the information that’s on the application, and ask these questions the same way for all applicants. e. If the applicant indicates s/he was homeless during the past three years, send out the Certification of Homelessness form (See Appendix F, Form PM-204) to a person the applicant has interacted with during that period who can confirm the homelessness. f. Landlord references going back at least two years will verify that the applicants have not lived in a home they owned during the past two years; however, they won’t necessarily confirm that the applicants haven’t owned a home during the past two years.

2. Personal References: Personal references can also be extremely helpful in giving management not only useful background about applicants, but also a comfort level that the information provided on the application is truthful and accurate. Personal references provided by applicants on their applications should be people who know the applicants and

(1/9/2018) 44 preferably not be relatives. Personal references are also preferably done verbally and then carefully documented by management, so contact phone numbers of personal references is crucial. Personal references can and should be done to:

 Provide verifications when you can’t reach any of the rental housing references applicants have provided in their application.  Provide verifications for the accuracy of information all applicants have provided in their applications.

There are several things to keep in mind when getting personal references:

a. Determine how the respondent knows the applicant and what the relationship is and how long s/he has known the applicant.

b. As noted with the verbal interviewing techniques for landlord references above, ask questions in a way that doesn’t reveal the information you have already been given by applicants. Ask the questions in a manner that lets the respondent confirm the accuracy and truthfulness of background information that the applicants have provided on their applications. There is a script you should use to ask the questions and document answers from respondents on the Personal Reference form (See Appendix F, Form PM-205). This will help to ensure that you ask questions for all applicants in a fair and consistent manner.

c. If applicants have been homeless during the time you’re checking out background for, ask the respondent if they know what the circumstances were causing the applicant to be homeless? And, what the applicant has done since that time to deal with those circumstances?

d. If there are discrepancies between what a personal reference reveals to you about an applicant’s background, and what the applicant has told you on the application, contact the applicant about those differences and find out why. If it appears that the applicant consciously omitted or misrepresented significant information on their application, this is one of the criteria for denial of their application.

e. The point of getting personal references is not simply to find out whether the personal reference likes the applicant and thinks TNDC should house them. It will be very rare that any applicant would give someone’s name and contact information as a personal reference who would speak negatively of them. The point of the personal reference is to, at least in a general sense, verify information applicants have provided to TNDC on their applications. NOTE: In many cases personal references may not know or remember the answers to all of your questions about the applicants. That is understandable and OK. You should just be concerned about answers to questions they may know about, which are significantly different from information the applicant has provided to you.

(1/9/2018) 45 H. Declining Applicants

Applicants who fail to meet property requirements at any point after handing in an application or during the initial certification process should be declined and sent a letter informing them of the reason for the denial. This can occur as soon as the application is received if it is immediately obvious that the applicant is ineligible from information the applicants provide, or it can occur later when the certified income is found to be too high, false information provided, incomplete information provided, negative or contradictory reference information.

1. Criteria for Denials: The following is a list of the most commonly acceptable reasons to decline an applicant:

 Household’s size is over or under the occupancy limit for the unit type;  Household does not meet the minimum monthly income requirement (50% of the monthly rent of the unit they are applying for);  Household exceeds the maximum income limit;  Application was incomplete or not signed;  Applicant did not meet the minimum special eligibility requirements (age, HOPWA, etc.) applicable to the unit or project applied for;  Disqualifying eviction history;  Disqualifying criminal history;  Negative landlord reference;  Applicant(s) provided false information on their application;  Failed to show for two scheduled appointments without prior notification to management;  TNDC management has been unable to contact the applicants after several documented attempts  Unacceptable behavior towards others;  Applicant stated s/he is no longer interested in a unit;  Failed to respond to an update letter asking if s/he is still interested in being on a waiting list;  Other (If other is used, it must be accompanied by a specific reason typed into the letter.)

2. Fair Housing Considerations: The important thing to remember is that reason(s) for denial must be related to stated resident selection criteria, and must be applied uniformly without bias for or against any applicant. Always be mindful of the spirit and intent of Fair Housing law when denying an applicant. The reason for denial must always be defensible under Fair Housing principles. When in doubt, give the applicant the benefit of the doubt or consult with your Property Supervisor or Compliance staff for confirmation that the denial is appropriate.

3. Documentation of the Denial: Send the original denial letter to the applicant and place a copy in the applicant file, to be stored in an archive of past applications that are either denied or pending. This is a very important record that must be maintained in order to demonstrate compliance with fair housing policies and procedures--protecting both TNDC and individual

(1/9/2018) 46 staff members from potential liability in discrimination claims. All denied application files must be kept for at least 6 years.

4. Appeals: Denial letters also inform applicants that they have a right to appeal the decision on their application by submitting a letter to the Compliance Manager within 14 days of the denial date. For the best chance of a successful appeal, the letter should specifically address the issues that caused the applicant to be denied, explain the mitigating circumstances, and provide additional documentation to back up the claims in the appeal. The appeals process works as follows: a. When the Compliance Manager receives an appeal letter, it is date stamped. b. The Compliance Manager will request the applicant’s file from the property manager, review it and ask questions of management staff, as appropriate. c. The Compliance Manager will create a packet of information for the appeal. d. The Compliance Manger will convene a panel of three other staff members, who will get the packet, discuss it and decide whether or not to grant the appeal. e. If an appeal is granted, the applicant is informed and the Manager should pick up the certification process where it left off. f. If the appeal is not granted, there is no second round of appeals. This appeal decision is final.

I. Approving Applicants

Applicants who meet all of TNDC’s general and specific resident selection criteria should be processed by building management staff who take the applications. At this point, management should fill out the Tenant Income Certification (TIC) form (See Appendix F, Form PM-241), using the Income Calculation Worksheet (ICW) (See Appendix F, Form PM-237) as a source of information along with other information in the file. (Once approved by property management, the TIC will be signed both by all adult residents and a TNDC management person at the time all other leasing documents are signed, if the applicant is approved.)

The final approval and “sign off” process itself can happen relatively quickly, or it can take a long time, with the documentation required for approval being deemed inaccurate or incomplete and thereby getting bounced back to building management staff one or more times to correct the deficiencies. Building management staff can make the process move as quickly as possible by checking and double checking their work and the file completeness before sending it to the central office for approval.

REMEMBER: GO SLOW TO GO FAST!

The following chart indicates the top reasons why files for application approval have gotten “bounced back” to managers at the buildings to make changes before they can be approved. This

(1/9/2018) 47 really slows down the process. Please review for all of these possible problems before submitting the files:

Principal Reasons Comments Files Get “Bounced Back” Incorrect Projection Specifically have incorrect week-to-date or Formula incorrect Social Security Income TIC Missing decimal point, commas, or didn’t carry figure to total columns; no move-in income listed; no max income% listed; max rent % incorrect. ICW Projection formula not correct. TICQ Missing percentage/interest rates on assets; not dated; not signed by TNDC staff. Date Stamps Missing date stamp on copied documents or returned verification forms. Housing Verifications Missing clarification for missing information from verification form; missed housing verification. Application Missing initials on each page unlisted assets/housing, etc. MOH Missing signatures, dated too early. (They are not to be dated until move-in/lease signing). Background Checks Incorrect names or social security number.

The application approval and “sign off” process works as follows:

1. The principal building management staff person who accepted and processed the application prepares a file for approval using the two-page File Review for Pending Application form (See Appendix F, Form PM-242). This lists:

a. all of the required file documents which must be submitted to the central office review and approval; and,

b. the order in which these documents should be included in the file to expedite the review.

Once you have made sure that the file is complete and in the proper order, go through the Application Approval Checklist (See Appendix F, Form PM-240). This is a two-page form that asks the questions that TNDC’s compliance department will ask about the applicant and file. If you can answer all of these questions, and none of your answers would indicate a problem, and if you’ve reviewed the documents for the most common types of problems listed in the chart above, it is very likely that it will sail through the approval process quickly. Sign and date the checklist at the bottom of the second page.

2. If the General Manager has not been the one to prepare the file, give the file to the general manager for his/her review and signature on the Application Approval

(1/9/2018) 48 Checklist.

3. Send the complete file with the Application Approval Checklist and File Review for Pending Application forms to your Property Supervisor for his/her review and approval.

a. If the Property Supervisor finds a problem or a missing item, it will be returned to the person submitting the file to rectify the problem before re-submitting it.

b. If the Property Supervisor approves the file, it will be given to the compliance department for its review and approval.

4. Compliance staff will then thoroughly review the file for completeness and correctness.

a. If the Compliance Department staff finds a problem or a missing item, it will be returned to the person submitting the file to rectify the problem before re- submitting it.

b. If Compliance Department staff finds the file approvable, it will give it to the Compliance Department Manager for his/her approval, who will then give the file to the Director of Property Management for final review and approval.

5. The Director of Property Management will then review the file.

6. If the Director of Property Management finds a problem, the file will be returned to the Compliance Department, who will then contact and return the file to the person submitting the file to rectify the problem before re-submitting it.

7. If the Director of Property Management approves it, then the file will be given to the relevant Property Supervisor, who will contact the relevant management staff person to let them know it has been approved.

J. Informing Applicants of TNDC’s Approval

1. Calling the Applicants: Upon receiving notification of approval, the relevant building management staff person then contacts the applicants to let them know that the TNDC approval process has been completed and that their application has been approved. Also, send them an application approval letter to put it in writing.

2. Setting up the Leasing Session: If there are no external agency approvals and lease preparation steps necessary, set up an appointment (date and time) for a meeting--with all family members present--for a leasing, orientation, and unit inspection session. At this time, also ask them if they know what date they would like to move-in. Document these dates on the Leasing, Orientation & Move-In Checklist form (See Appendix F, Form PM-300). See Chapter IV for a full explanation of these procedures.

(1/9/2018) 49 3. External Agency Approvals: If there are external agency approvals and/or lease preparation steps necessary:

a. let the applicants know that this is happening and that you will inform them when that process is completed to set an appointment for a leasing, orientation and unit inspection session.

b. Immediately send whatever correspondence is necessary for the external agency to perform its approval and lease preparation and/or lease preparation steps as expeditiously as possible.

o This normally involves sending a Request for Tenancy Approval (RTA), (See Appendix F, Form PM-243 [HUD-52517]) to the San Francisco Housing Authority for a Section 8 voucher approval.

(1/9/2018) 50 Exhibit 3-1 TNDC RESIDENT SELECTION PROCESS (Page 1 of 2) Applicant Submits Application

Application No Complete?

Appeal Denied No Appeal Yes End Yes Letter Sent Granted?

Application Interview & Docs Submittal/Signing Appeal Process

Appears to Meet No Applicant Yes Eligibility & Acceptability Send Denial Letter Appeals? Criteria?

No Yes End Do Background Checks

Meets Acceptability Criteria? No

Yes

Get All Verifications & References

Do Analysis & Evaluations Do Income From All Other Info Calculations Collected

Meets All Eligibility & Acceptability Criteria? No

Yes

Prepare File With All Application, Verification, Screening, Calculation Information

Submit File to Property See Page 2 of Flow Chart Supervisor for Review, for continuation of Approval & Submittal to resident selection process Compliance Department

(1/9/2018) 51 Exhibit 3-1 TNDC Continued From 1st Page Continued From 1st Page RESIDENT SELECTION PROCESS (Page 2 of 2)

Building Manager Prepares & No Applicant End Sends Application File to Appeals Denial? Property Supervisor for Review, Approval & Submittal to Yes Compliance Department Appeal Letter Goes to Compliance Mgr (CM) PS Finds File Complete, Correct & Approvable & No CM Investigates & Forwards Researches Case to Compliance?

CM Convenes Panel To Decide Yes on the Appeal

Compliance Dept Thoroughly Reveiws All Aspects of Application File for Compliance With All Yes Appeal Requirements Using Tax Credit Granted? Program as the Standard

No

End

Compliance Manager Finds File Complete No Correct & Approvable?

Yes

Compliance Gives File to Prop Mgt Director for Final Review & Approval

Approved Prop Mgt Director Yes File Goes Back Approves Application? to Building Manager

No Building Manager Informs Applicant of TNDC's Approval

Additional Leasing Public No Session & Agency Move-in Approval Scheduled Needed?

Yes

Manager Sends Request for Approval to Public Agency

(1/9/2018) 52 IV. LEASING, ORIENTATION & MOVE-IN

After applicants have been approved and notified, the leasing, orientation and move-in process begins. It involves signing of contractual documents (in the form of a lease, addenda and rules), conveying information, inspections, and the physical act of the new resident moving into their new home. Clear communication between management and the new residents at this stage is essential. It is a golden opportunity to establish a positive, professional management-resident relationship to help ensure a successful tenancy and avoid future misunderstandings. Leasing- related documents are more than just legal contracts. They are a statement of mutual responsibilities of management and residents. This is the best time to clearly explain obligations and responsibilities, and ensure that new residents understand and will comply with them.

A. Scheduling and Arranging the Process

1. Set-up the Leasing & Orientation Session, and Move-in: Once an applicant has been fully approved by TNDC and any external agencies, if applicable, call the approved applicant and set a date and time for the session to sign leasing documents, receive orientation information, tour the building, and inspect their unit. Also, at this time, try to determine from them the date they would like to move in.

Go Slow to Go Fast!

a. Schedule at least two hours for the leasing, orientation, inspection and building tour. If done right, it will take this long. The most time consuming part of it will be the orientation, where you will explain the provisions of their lease, addenda and house rules. These are written in complex, legalistic terms and phrasing--often making them very difficult to understand. It is your job to summarize every one of the key lease and rules provisions in plain English (or to have someone translate plain English into the language they speak) and discuss them with the new residents in order to make sure they understand their obligations and expected behaviors before they are given keys to a unit in your building. They must also be given an opportunity to read through what they are signing. This will likely save the management and maintenance staff many hours in the long run by avoiding problems or misunderstandings that are preventable.

b. In scheduling this session, make sure they understand that all household members must be present to sign documents and be oriented. Children under the age of 18 don’t sign documents, but they should be present so that management staff will be able to get to know and identify them.

c. Inform them to bring the following two separate money orders or cashier’s checks (made payable to the building) to the session:

1. For the pro-rated amount of their first month’s rent.

(1/9/2018) 53 i. Please refer to Appendix Y for detailed instructions on how to calculate pro-rated rent amounts.

ii. Under certain circumstances, a payment plan may be set up for payment of the first month’s rent, if needed by the new resident and if their security deposit is paid in full.

iii. If the new resident is to be involved in a money management program under the DPH-DAH program, contact Lutheran Social Services to arrange for payment of the first month’s rent amount.

2. For their security deposit amount.

i. Normally security deposits are equal to one-month’s rent, or the equivalent of one-month’s tenant payment amount, if the resident is receiving a Section 8 rent payment subsidy.

ii. Security deposits are required to be paid in full at the leasing and orientation sessions; payment plans for these are not permitted.

iii. If the new resident is to be involved in a money management program under the DPH-DAH program, contact Lutheran Social Services to arrange for payment of security deposit amount in a separate check.

d. Document that you have contacted the approved applicant and the leasing session, move-in dates, their unit number, and the first month’s rent and security deposit amounts on the Leasing, Orientation & Move-in Checklist form (See Appendix F, Form PM-300). This form has a Date Completed column in which to enter the date when each step in the process was completed, and a Comments column, in which you can enter information such as the scheduled session date and time, move-in date, assigned unit number, and the rent and security deposit amounts.

B. Resident Files

1. Set-up The Resident File: Create a file for the new resident household. All TNDC properties must use a standard file organization setup with the documents fastened in them in a certain specified order to make it easy both for internal review and for external agency auditors to easily find what they are looking for. See Exhibit 4-1 at the end of this chapter for a list of the exact file organization specifications.

a. Use high quality partitioned folders with the top two-hole punch fasteners:

 2-partition, 6-sided folders for non-HUD properties  3-partititon, 8-sided folders for HUD properties

(1/9/2018) 54 b. Resident files contain the items most relevant to complying with the property's various requirements and are optimized to make it easy for auditors to find the items they are looking for. Most items are one-time documents, or they recur infrequently, such as annual recertifications. Consequently, general correspondence, maintenance paperwork, contact logs, and any other items that accumulate over time and would not be directly audited, or that do not support typical auditing activities, should be maintained separately in parallel files.

c. The file tab should show the household head’s name, unit number and move-in date.

2. Place Documents in the Resident File: Once the tenant file has been created:

a. remove documents from the household’s application file and fasten the completed application, screening, verification and decision process documents on Sides 4 and 5, as appropriate; and,

b. clip the partially filled-out Leasing, Orientation & Move-in Checklist form for that household (See Appendix F, Form PM-300) on the top, outside face of the file until the move-in has been completed. You will be making frequent entries on this form, as you proceed through the steps in this process.

C. Pre-Move In Inspection

Once you have contacted the resident and set leasing and move-in dates and assigned a unit to them, immediately conduct a pre-move in inspection of that unit.

1. Why Inspect? Often, units may have been vacant for a substantial period of time before a new resident moves in. Dust or cobwebs may have collected during the period between their final unit turnover inspection and the present. You want the new resident to treat their unit well and keep it clean. So, it is your obligation to give it to them in prime condition to set the tone for the high standards TNDC expects.

2. What to Inspect? Inspect for the following items:

a. Is the unit totally clean? b. Is there dust or cobwebs anywhere? c. Are all appliances cleaned, connected and working properly? d. If there is any odor in the refrigerator? e. Is there any gas odor, if there are any gas appliances? f. Does the heater work? g. If there is a ceiling fan, does it work properly without undue noise? h. Do all lights work properly?

(1/9/2018) 55 i. Are there any signs of leaking water after checking under sinks? j. Is the bathroom ventilating fan working? k. Are there any loose tiles? l. Are all required furnishings in the unit? m. Does the bedding appear to be clean and bed-bug free?

If any of the above are either not clean, working properly, or up to the highest possible standards, then issue an urgent work order for maintenance to complete the cleaning or repair the deficiency prior to the date of the leasing session.

D. Prepare for Leasing Session

1. Document Preparation: Prepare two copies--one for tenant file and one to give to the new resident household--of the following documents that will need to be executed by adult members of the household at the leasing session. Please see Appendix L a copy of all leasing documents specifically used in your building. You can make copies from that set, except for the Lease, which is on legal size paper and must be printed out from its file on TNDC’s Computer Network “O” Drive.

Following is a list of all TNDC leasing-related documents and where to find them in the Forms Appendix F:

 Certifications: o Tenant Income Certification (TIC) (See Appendix F, Form PM-241) o MOH Tenant Income Statement (See Appendix F, Form PM-301)

 Lease: o Standard Lease (See Appendix F, Form PM-302) o Lease (for HUD Buildings) (See Appendix F, Form PM-303) o Subsidy Program Lease (provided by SFHA)

 Lease Addenda and Attachments: o TNDC House Rules (See Appendix F, Form PM-306) o Low Income Lease Rider (See Appendix F, Form PM-307. [Used for Tax Credit properties only.] o Lead Information Notice (See Appendix F, Form PM-308). [Used for buildings constructed before 1978. The EPA Brochure: “Protect Your Family From Lead in Your Home” must also be given to new residents in applicable buildings along with this notice.] o Mold and Mildew Addendum (See Appendix F, Form PM-309) o Bed Bug Addendum (See Appendix F, Form PM-310) o Registered Sex Offenders Notice (See Appendix F, Form PM-311) o Security Deposit Agreement (See Appendix F, Form PM-312)

(1/9/2018) 56 o Smoke Detector Addendum (See Appendix F, Form PM-313) o Proof of Understanding (See Appendix F, Form PM-314). [Required as an attachment in HUD properties only.] o Resident Rights and Responsibilities (See Appendix F, Form PM-315) [Required as an attachment in HUD properties only.] o Things You Should Know (See Appendix F, Form PM-316) [Required as a lease addendum in HUD properties only.] o HUD-9887/A Fact Sheet (See Appendix F, Form PM-317) o Drug Free Housing Addendum (See Appendix F, Form PM-318) [Required as an addendum in HUD properties only.] o Resident Emergency Information Sheet (See Appendix F, Form PM-319) o Grievance Policy (See Appendix F, Form PM-320) [Required as an attachment for HUD properties only.] o Fire Safety Tips (See Appendix F, Form PM-321) [Required as an attachment for HUD properties only.] o Unit Furniture List (See Appendix F, Form PM-322) [Required as an attachment for HUD properties only.] o Accessible Unit Addendum (See Appendix F, Form PM-323) [Use, if situation dictates, when a non-disabled household is moving into an accessible unit designed for persons with disabilities.] o Pet/Service Animal Agreement (See Appendix F, Form PM-324) [Use if situation dictates.] o Move-in/Move-out Inspection Form (See Appendix F, Form PM-700)

2. Review Household Information: Before the leasing session is scheduled to begin, review the household information, including the photo IDs so that you will be clear about the number and identities of those who need to be present at the leasing session. Familiarize yourself with household members’ names. All who should be involved in the session should be listed on the Tenant Income Certification and Lease which you have prepared.

E. Conduct the Leasing and Orientation Session

The leasing and orientation session is one of the most important points of communication that management has with residents. Clear, two-way communication during this session will help to prevent misunderstandings later. As noted above, a significant block of time spent here will save a great deal of management’s time in the future by dealing with avoidable situations now. Communication at this meeting should be welcoming, supportive, positive, professional and polite. But you should make it very clear what their responsibilities will be as residents, and that management will enforce compliance with them.

1. Explaining and Signing Leasing Documents: Leasing documents, house rules and addenda comprise what is, in effect, a legal contract, between TNDC and residents. In total,

(1/9/2018) 57 these documents are very long and quite complex. They specify many responsibilities and requirements of both management and residents. You need to explain these in sufficient detail before asking them to sign to be sure they understand them. You also must give them an opportunity to read any and all documents before executing them. Invite the new residents to ask questions about anything they don’t understand. Of particular importance (but not the only things that should be discussed) are lease and rules provisions relating to:

 Payment of their specified monthly rent amount, and consequences if it is late or not paid.  If they will have a rent subsidy, how it works.  Management’s responsibility to maintain their unit in a high quality condition and their concurrent responsibility to inform management whenever anything is broken or not working properly. (Show them what a maintenance request looks like, how to fill it out, and explain where to find and submit them.)  Their responsibility to care for everything in their unit and keep it all reasonably clean.  Their responsibility not to create excessive noise which disturbs their neighbors.  Their responsibility not to do anything illegal in the building--particularly the use or sale of drugs and engaging in violent acts against others.  Rules regarding not having pets (unless they have one under the provision for service animals or reasonable accommodation guidelines).  Provisions regarding guests and visitors, and the fact that they are responsible for their guests and visitors behavior and actions.  Their responsibility not to create fire hazards, such as smoking in bed.  Their responsibility not to tamper with the smoke detectors in their unit.  If applicable, informing them of the gas and/or electric utilities they’re responsible for placing in their name and paying for (and providing them with the PG&E contact information so that they can do it within 3 days of moving in. Also, informing them that their utilities may be turned off after 3 days if they don’t put them in their name).  Their responsibility to provide information and documentation to management so that their incomes can be recertified every year.  Payment of their specified security deposit amount, and the conditions under which they can receive their security deposit back when they decide to move out.  Provisions and policies regarding keys and locks. (Let them know what keys they will be given, the policy on reproducing them, and the cost of extra or replacement keys.)  Their responsibility not to allow any unauthorized person, or person who they do not know into the building, which could jeopardize the security of others.

Once each document is explained, read by them (if they choose to do so), and questions answered, each one should be signed and dated by all adult residents and, on some documents, by the manager. Give the head of household one copy of each document once it is executed. (Go through the “explanation-read-execute” process one at a time.)

(1/9/2018) 58 2. Collect First Month’s Rent and the Security Deposit: Once all documents have been signed, collect the first month’s rent and security deposit. The following procedures apply: a. First month’s rent and security deposit may only be paid with money orders and cashier’s checks b. They must be paid with two separate money orders and cashier’s checks—one each for rent and security deposit. c. At the time the manager scheduled the leasing and orientation session with the new residents, the amounts for each should be provided to them (and they should be told to make the money orders or cashier’s checks payable to the building):

1. The first month’s rent is pro-rated from the date of lease signing to the end of the month. (See Appendix Y for instructions on how to calculate pro-rated rents.). It is possible to work out payment plans and agreements for this amount with approval from the property supervisor.

2. The security deposit is normally equivalent to the amount of rent paid by the resident for one month. Normally, payment plans are not allowed for security deposits. d. If the resident is enrolled in a Money Management Program, with Lutheran Social Services (LSS) as the payer, and prior arrangements have been made with LSS to issue the two checks to the building manager, then there is no need to collect these amounts from the new resident at the leasing session. e. Issue two receipts to the residents for: i. the amounts of first month’s rent; and, ii. security deposits paid. NOTE: At HUD properties, the required Security Deposit Agreement (See Appendix F, Form PM-312) can serve as a security deposit payment receipt, making just one receipt necessary in those buildings. f. Endorse each money order with its proper bank endorsement stamp (rents and deposits go into two separate bank accounts and should not be endorsed with the same stamp). Store them in a safe place before leaving the office.

3. Tour and Inspect the Unit: Take all the residents to their new unit.

a. Give them a tour of the unit.

b. Teach them how to turn the heat on and off.

c. Show them how to operate the ceiling fan, if there is one.

(1/9/2018) 59 d. Teach them how to use other appliances in the unit.

e. Let them know what other types of small appliances they can and cannot bring into and use in their unit.

f. Show them where the electric sub-panel is (if there is one in the unit), and how and when to use it.

g. Show them where the angle stops are under the toilet and sinks and how to turn them off if they ever over flow.

h. Talk about energy conservation with them. Point out the need to:

 Keep windows closed when the heat is on  Turn off the heater when they’re not present  Turn off lights when they’re not present  Use low wattage florescent bulbs  Report any broken or cracked windows  Report any water leaks as soon as they start to happen, including toilets that sound like they are running all the time

i. Show them where the smoke detector(s) are and emphasize the importance of never tampering with them. Point out that they really can save their lives and their neighbors lives, should a fire occur. Ask them to immediately make a maintenance request if it appears they are malfunctioning. Point out other safety needs to:

 Turn off appliances, especially ovens and stove-top burners when not in use for cooking  Not to smoke in bed  Not to keep personal items on or near radiators  Not keep any flammable materials in their unit  Not to accumulate a lot of clutter in their unit which could cause a fire hazard

j. Conduct a move-in inspection with them. Use a Move-in/Move-out Inspection Form (See Appendix F, Form PM-700).

1. Get agreement with the new residents on the existing condition of everything in the unit. Note any pre-existing damage or blemishes.

2. Explain that they will be responsible for leaving the unit in that same basic condition--except for reasonable wear and tear for the amount of time they live there—in order to get their full security deposit returned.

(1/9/2018) 60 3. Both the manager and head-of-household must sign and date the form.

4. After you get back to the management office for the conclusion of the session, make a copy of the inspection form and give it to them.

4. Tour the Building:

a. As you leave the unit, show the new residents the nearest emergency exit. Also show them where an alternate exit is, if that one is blocked or inaccessible for any reason. Point out that the elevators will not work in a fire or earthquake emergency and that they should exit by stairways, if they are on upper floors.

b. Show them where the laundry facilities are and how to use them. Note the hours when these facilities will be open and can be used. Remind them to be courteous to other users by not leaving any litter after they have used the room, and by cleaning out lint from the dryers after they have used them.

c. Show them where to dispose of their garbage and where the bins are where they should place their recyclables.

d. Take them to community rooms and other common areas. Describe how and when to use them. If there is a TV room, explain the building’s policy regarding its use.

e. Take them to the mailbox area. Show them where theirs is and how to use it.

f. Introduce the new residents to other building staff who may be on duty during the tour.

5. Complete the Session: Return to the office.

a. Give the new residents a copy of their unit move-in inspection and their keys.

b. Also give them a copy of the TNDC Resident Handbook, which is a helpful resource written in plain English that provides a reference for them relating to many of the things covered in the orientation session. (Don’t assume that this is a substitute for telling them those things. Discuss everything with them to be sure they know what is important for them to have a successful residency.)

c. Re-confirm the date when they plan to move in.

d. Tell them your office hours and the hours of other management and desk clerk staff.

(1/9/2018) 61 e. Let them know you’re there to serve them and that they should feel free to ask questions or report problems to you and all other staff.

F. Move-in Accounting and Notification Procedures

After the leasing session you will need to inform accounting of the move-in and submit the monies received for rent and security deposit. The compliance department will also need to be notified. (NOTE: Managers of the HUD properties use the OneSite program to enter this information directly.)

1. Notify Accounting of Move-In: Send an email to the Rent Roll Administrator in TNDC’s accounting department with a filled-out Resident Move-In Form (See Appendix F, Form PM-325) attached to the email.

a. The digital copy of this form is in this Property Management Operations Manual’s Forms Folder on the “O” Drive.

b. Fill information on this form about the full rent amount, tenant-paid rent amount, subsidy rent amount, rent subsidy source, security deposit amount and any other charge the new resident might pay on a monthly basis, such as for parking.

c. The Rent Roll Administrator will send back an email acknowledgement that the move-in form was received.

d. Print out two hard copies of the Resident Move-in Form. Place one in the resident file and attach one to the transmittal of monies received, explained in the following step.

2. Transmit Move-In Payments to Accounting:

a. Create one check reconciliation sheet for the pro-rated first month’s rent paid using your building’s normal Check Reconciliation Sheet template on the “O” Drive. Attach the money order or cashier’s check and a photo copy of this payment to it.

b. Then create a Security Deposit Check Reconciliation Sheet on the special security deposit template on the “O” Drive. Attach the security deposit money order or cashier’s check to this with a copy of the payment.

3. Update Project Status Report (PSR) and Send to Compliance: By the end of every month, building managers must update your building’s PSR with all new move-in and move- out information. Once you have done that, send an email to the Compliance Manager with

(1/9/2018) 62 the updated PSR attached.

4. Tenant Services Notification: Inform the social worker for the building of the new resident so that they can introduce themselves and their services available to TNDC residents.

G. File Documents

1. Make sure that all dates have been noted and any other relevant entries in the comments column of the Leasing, Orientation & Move-In Checklist (See Appendix F, Form PM-300) have been made.

2. Then place this checklist and all of the signed leasing and inspection documents in the resident’s file as specified by Exhibit 4-1.

3. Make an appointment with a Compliance Department staff person to go to their office with the completed new resident file so that they can review it to make sure that all of the required file leasing documentation is both complete and correct. It always helps to have a second set of eyes to go over these things.

a. The resident file should have all the documents in it which are listed on the Move-In Audit form (See Appendix F, Form PM-305).

b. This compliance office review should not take more than a few minutes by the staff person there who you have made an appointment with.

c. Do not take or leave this file anywhere else. (Losing it would be a catastrophic problem!) Once the review is completed, bring it back to your office and place it in the building’s secure file cabinet.

H. Check-in With the New Residents

Three or four days after the residents move-in, go to their unit. Ask them how they like their new home? Check with them to make sure they have placed the utility service in their name, if your building has any tenant-paid utilities. And ask if there’s anything they need management or maintenance staff to do for them, or if they have any questions? This visit will help address any problems or questions they may have, build good-will, and will be a subtle confirmation to them that you know management’s job is to assist and serve them.

(1/9/2018) 63 (1/9/2018) 64 EXHIBIT 4-1

STANDARD TNDC TENANT FILE SETUP

3 All properties’ files will be organized according to the following set-up order 3 Use partitioned folders: . Six-sided, two-partition folders for non-HUD properties . Eight-sided, three-partition folders for HUD properties 3 “[]” = item within brackets exists only if applicable to particular tenant

Side 1 Lease/Move-in Packet

 Residential Rental Agreement  All other addenda requiring signatures at time of move-in. o Example: Low-income Lease Rider  [Requests for Reasonable Accommodations - original]  TNDC House Rules  Leasing, Orientation & Move-in Checklist

Side 2 Accounting

 TNDC Resident Move-in Sheet  Copy of Deposit/Move-in Money  Account Ledgers  Resident Charge Backs  Request for Adjustments to Tenant’s Accounts  Any other accounting/billing items

Side 3 Unit Inspections & Legal

 Part A  Unit Inspections, reverse order

 Part B  3/10/30/60 Day Notices  Incident Reports  Other legal or related correspondence

(1/9/2018) 65 Side 4 Initial Eligibility

 ID + SS card copies  Letters to applicant (interview notice, unit offer letter, etc.)  Screening reports (credit, eviction, criminal)  Housing References  [Personal References]  Application  [Special Referrals]  [Special Eligibility Confirmations] o Example: Owner’s Notice No. 1 for an Applicant Family o Example: Diagnosis Letter for HOPWA unit o Example: Copy of RRAF proving eligibility for HUD unit - copy

Side 5 Initial Certification LIHTC / TNDC

 Tenant Income Certification, Initial (LIHTC only)  Income Calculation Worksheet  TNDC Application for Occupancy  Tenant Income Certification Questionnaire  Blanket Authorization  Income Verifications  Child Support Affidavit  [Affidavit of Non-Employed Status]  [Asset Verifications]  [Assets Under $5000 affidavit]  Copy of Tax Return or Non-Filing of ITR Affidavit  Interview Checklist  Mayor’s Office of Housing Tenant Income Statement Form

Side 6 Annual Re-certifications LIHTC / TNDC

The following items should be in this order, but separated by a divider for each year.

 Tenant Income Certification, Recert (LIHTC only)  Income Calculation Worksheet  Recertification Notices  Tenant Income Certification Questionnaire  Blanket Authorization  Income Verifications  Child Support Affidavit

(1/9/2018) 66  [Asset Verifications]  [Assets Under $5000 affidavit]  Copy of Tax Return or Non-Filing of ITR Affidavit  LIHTC Recertification Paperwork Checklist  Mayor’s Office of Housing Tenant Income Statement Form

HUD Building Files Only

Side 7 Initial Certification HUD

 Tenant Income Certification (50059)  Tenant Income Calculation Worksheet (HUD)  Application for Occupancy  Owner’s Notice #1, Citizenship Eligibility  Privacy Notice  9887 and 9887-A  HUD “Things You Should Know”  Income Verification(s)  [Special Income Affidavits]  Asset Verifications  [Assets Under $5000 affidavit]  Copy of Tax Return or Non-Filing of ITR Affidavit  HUD/Section 8 Recertification Paperwork Checklist

Side 8 Annual Re-certifications

 Tenant Income Certification (50059)  Tenant Income Calculation Worksheet (HUD)  Recertification Notices  Privacy Notice  9887 and 9887-A  HUD “Things You Should Know”  Income Verification(s)  [Special Income Affidavits]  Asset Verifications  [Assets Under $5000 affidavit]  Copy of Tax Return or Non-Filing of ITR Affidavit  HUD/Section 8 Recertification Paperwork Checklist

(1/9/2018) 67 V. RENT COLLECTION

Each of TNDC’s properties depends on prompt and full rent collections to assure sufficient income and cash flow to provide well-managed and maintained affordable housing to its residents. Management is responsible to ensure that residents pay their rent in a timely manner. It is TNDC’s objective to minimize the need to evict residents for nonpayment of rents by making residents’ responsibilities clear to them throughout the application and orientation and occupancy processes, and in certain special, infrequent circumstances to work with them if they are unable to pay all or part of their rent due to circumstances beyond their control and sign a rent payment agreement to ensure that their rent is fully paid within a reasonable period. It is also TNDC’s policy to ensure that all residents are treated in a fair and consistent manner with regard to rent collection.

A. Performance Goals

1. Outcomes: TNDC seeks to achieve the following outcomes in the implementation of rent collection procedures:

 An average of 95% of all scheduled resident-paid rents are collected by the 5th day of each month.

 An average of 98% of all schedule resident-paid rents are collected by the end of each month in which they are due.

 Late fees are assessed on 99% of tenant-paid rents not received by the 5th day of each month.

 By the 15th of each month payment plans are in place or unlawful detainer actions have been filed for 100% of the cases where residents have not paid their scheduled rents.

B. Basic Rent Payment Policies

1. When Rent is to be Paid:

a. Tenant-paid rent amounts are due and payable in advance on the first day of every month.

b. There is a 4-day grace period after the 1st which allows for rent to be received by the end of the 5th day of the month.

(1/9/2018) 68 c. If rent has not been received by end of the 5th day of the month, on the 6th day of the month or the first business day thereafter if the 6th falls on a weekend or holiday the rent will be deemed to be late. (See Paragraph 4, below for procedures if rent is late.)

2. How Rent is to be Paid:

a. Rent must be paid by check, money order or cashier’s check made out payable to the property name. Residents are to print their name, address and unit number on their means of payment, if it is not already pre-printed on it.

b. Cash payments of rent or any other amounts owed are not to be accepted.

c. By the last day of the previous month, the Accounting Department’s Rent Roll Administrator will have placed in your mailbox a rent roll showing the amount of tenant-paid rent which is due and payable on the first. It will also show any subsidy rent amounts to be paid for that unit by an outside agency. And it will show any past due balances due on previous rents or other obligations like fees or deposits.

d. Partial payments of tenant-paid rent amounts are not to be accepted, unless as part of a written rent payment agreement.

e. Rent checks also should not be accepted from a non-lease-holder of a unit. (Accepting checks for rent payments by non-residents could be an construed as an implied basis for residency—which must be avoided.)

3. Where Rent is to be Paid:

a. Rents are normally paid by residents directly to the general manager, assistant manager or administrative assistant of the building in which they live.

b. If the building has a secure rent drop box, residents may place their rent payments in that.

c. Residents who request them, are to be given receipts by the person receiving their payments of rents or other amounts owed.

4. What Happens if Rent is Late?: If rents have not been received by the end of the 5th day of the month, on the 6th day of the month or if the 6th falls on a weekend or holiday, the first business thereafter, the following three things must happen:

a. Serve the resident with a 3-Day Notice to Pay Rent or Quit (See Appendix F, Form PM-500. Also see Chapter 9: Evictions, for detailed instructions regarding service

(1/9/2018) 69 of this notice.)

b. Assess a $20 late fee. Inform the late-payers that the $20 is in addition to their late rent.

c. Inform the social worker for your building that a pay or quit notice has been served on the resident and give the social worker a copy of the notice.

i. If the resident has not already contacted management about the nonpayment of rent problem, the social worker will try to contact the resident within 48 hours to speak with and encourage the resident to pay the rent owed, or to contact the general manager regarding the possibility of a late rent payment plan, if this has not been a recurring problem and the residents have not already exhausted their privilege to use them.

ii. If the resident has already contacted management and if the general manager has determined that TNDC policies would allow for a late rent payment plan in this situation, inform the social worker of this.

d. If either the resident hasn’t contacted the manager, the social worker hasn’t been able to contact the resident, a payment plan would not be appropriate in this situation or the resident is not eligible for one, then unlawful detainer proceedings must commence if the resident does not pay rent owed be the end of the 3-day pay or quit notice period. See Chapter 9 for detailed instructions regarding the steps involved with the unlawful detainer process for nonpayment of rent.

5. Non-Sufficient Funds (NSF) Checks: If a resident’s rent payment check is returned to TNDC by the payer’s band due to non-sufficient funds, the accounting department will normally only be notified of this during the second half of the month and will contact the building management about the problem.

a. Notify the resident immediately and ask them to give you a money order or cashier’s check for the full unpaid rent amount, plus a $20 late fee, plus a $35 NSF fee to you within 24 hours.

b. If you have not received the full rent amount, plus the specified fees, by the deadline, issue a 3-Day Notice to Pay Rent or Quit (See Appendix F, Form PM-500) and proceed as specified in Paragraph 4, above.

c. After a personal check for payment of rent is returned for non-sufficient funds, residents will be required to pay their next 6 months of rent with either a money order or cashier’s check.. After that, they may return to paying rent with a personal check. If a second check bounces thereafter, the residents will have to permanently pay their rent with a money order or cashier’s check.

(1/9/2018) 70 6. Safekeeping of Rents and Other Payments Collected:

a. Upon receiving rent or other payments, the management person receiving it will immediately endorse the back of it with building’s bank endorsement stamp.

b. If the resident has not done so, write the unit number on the face of the check and circle it.

c. Then, store it in a locked safe place until it can be transmitted to TNDC’s Accounting Department.

C. Payment Plans

It is TNDC’s policy that payment plans be administered in a fair, consistent and non- discriminatory manner. However, the use of payment plans, is a privilege, not a right of tenancy.

1. Policy: A payment plan may only be allowed after fact finding discussions with the resident. The general manager decides whether or not to do a plan based on the following factors involved:

a. The resident must be a tenant in good-standing who is not exhibiting nuisance behaviors.

b. The resident’s past payment history over the past 6-months

c. Period of time as a resident.

d. The documented nature of the resident’s financial difficulties which caused the inability to pay rent.

e. The resident’s demonstrated willingness to resolve the situation and the likelihood of success.

f. The resident’s ability to comply with a payment plan that is not longer than 3 months.

2. Creating, Following and Monitoring the Plan: All payment plans must be in writing. If it is decided that a plan is appropriate, use the Payment Plan form (See Appendix F, Form PM-400).

(1/9/2018) 71 a. Fill in the total amount owed and for what it is owed for (e.g. “$420”; “$400: May 2007 Rent, plus a $20: late fee”).

b. Fill in each payment date agreed upon, and the amounts to be paid on those dates. The full amount owed (including late fees and/or NSF fees) at that time must be paid within a payment plan period that does not exceed 3 months.

c. Before the resident(s) sign, point out language on the agreement which states that if they do not abide by the agreed-upon dates and payment amounts, a new 3-Day Notice to Pay or Quit (See Appendix F, Form PM-500) will be immediately served on them for the full amount of rent balance owed. And point out language on the form stating that TNDC will turn their account to a collection agency to collect any rent owed, which could hurt their credit rating and their ability to find other places to rent in the future.

d. The resident(s) then sign and date the agreement.

e. Place the original in their resident file, and give them a copy.

f. Give the social worker a copy of the payment plan to continue to encourage the resident to make their payments as scheduled.

D. Transmitting Rents to Accounting

1. Frequency:

a. Transmittals of payments made at properties to Accounting should be completed daily.

b. Be sure that all rents received up to the 14th day of the month have been submitted by the 14th because a rent roll report is generated and distributed to all managers by the Rent Roll administrator on the 15th of each month. This report identifies any delinquencies for which either a payment plan has been executed or an unlawful detainer action should have been filed by that time. Immediately notify the Rent Roll administrator of any inaccuracies you find on this report.

2. Procedure:

a. Make 2 copy sets of all of the checks you are submitting to accounting for recording and deposit. One set of copies will be retained in your office.

b. Post the check amount and check number in the proper columns on the Check Reconciliation Sheet which will be in the “O” Drive folder for your building.

(1/9/2018) 72 c. Place the batch number” in the “Batch” column (e.g., if it is the 2nd day of the month and you have already turned in Bach #1 on the 1st, place a 2 in that column for each check you are entering). d. When you are done entering all of the information, filter for the batch # you are submitting so that you will see only those entries on the spreadsheet. See screen shots below where “Batch 2” payments are being filtered for..

e. Print out the filtered check reconciliation sheet with the total deposit column totaled. f. On a printing calculator, run two tapes from the real checks. Both totals must agree with one another and with the total on the check reconciliation sheet. If they don’t, keep running the calculator tapes until they do.

(1/9/2018) 73 g. Attach one tape to the checks, themselves. Attach the other tape to the front of the check reconciliation sheet that has the copies of the checks attached to it.

h. Go to the corporate office at 201 Eddy Street front desk to get the check reconciliation sheet date and time stamped before submitting the checks to Accounting.

i. Go to the Accounting office in the basement of the Curran House and drop off the check reconciliation sheet and checks with the Property Management Rent Roll Administrator.

3. Rent Collection Reports:

a. The Property Management Rent Roll Administrator will issue two reports to managers monthly:

i. One at the end of the month, which serves as the rent roll for your building for the following month. It shows amounts owed for rent from the tenant, rent amounts owed from the subsidy source, and past due balances owed from previous months for rent, security deposit, or various types of fees.

ii. One on the 15th of the month, which shows what has been paid so far that month and which tenants are delinquent in their rents.

b. Carefully review each report and contact the Property Management Rent Roll Administrator if your records differ for any resident’s rent payment status and balances due shown on either of the two reports.

(1/9/2018) 74 VI. RECERTIFICATIONS

Each resident must their have household composition and their income and assets recertified on an annual basis. In Tax Credit projects, the student status of household members must also be re-verified. Failure to complete recertifications on time can result in adverse audit findings and possible loss of tax credit revenues to the building’s limited partner investors.

A. Performance Goals

1. Outcomes: TNDC seeks to achieve the following outcomes in the implementation of recertification procedures:

 100% of all resident recertifications will be completed before their deadline date annually.

 Recertifications will take an average of 45 days to complete from the time the initial notification is sent to residents until their new Tenant Income Certification is signed.

B. Recertification Timing

1. When Must Recertifications be Done? There are two important dates to keep in mind with regard to recertifications:

a. It is TNDC’s policy to set the Recertification Due Date for all residents as the 1st day of their certification anniversary month. So, if a tenant’s initial certification was dated February 22, 2004, his or her recertification due date is February 1st of each year starting with 2/1/05. Recertification due dates are the deadline dates upon which recertifications must be completed.

b. The second important date is the Recertification Effective Date which the date on which their original Tenant Income Certification (TIC) (See Appendix F, Form PM-241) form was first signed, thus concluding the initial certification process. This anniversary date is the date that each subsequent year’s recertification should be “effective”. So, if a tenant’s initial certification was dated February 22, 2004. February 22nd would be the effective date for each year’s recertification, which is to be completed on or before the first day of that month.

2. When should the Process Begin to Meet this Deadline?

a. The Project Status Report (PSR) indicates the recertification due dates for all residents. Building managers must monitor their PSRs each month for upcoming

(1/9/2018) 75 recertification which must be completed within the next 120 days.

b. Send out the Initial Recertification Notice form (See Appendix F, Form PM-403 or PM-412 for HUD buildings) to tenants at least 120 days prior to the due date so they have plenty of time to complete the paperwork and update interview for you to get the necessary verifications. This form is a letter which informs residents that their recertification date is approaching and will set a recertification interview time for them to meet with you. The letter requests that they confirm the appointment with you within a week, and also gives them the option of contacting you to re-schedule the date and time of the recertification interview appointment. The letter also informs them that all adult household members must attend the appointment and provides them a list of documentation they must bring to the recertification interview.

c. Place a copy of this notice in their file, and make yourself a reminder to follow up on this if you have not heard from the residents within a week.

3. What if the Resident is Not Cooperating?

a. If, one week after sending the initial recertification notice form, you have not heard from the residents to set up a recertification interview appointment, go to their unit and speak with them about it. Point out that there is a provision in their lease where they agreed to provide recertification documentation annually and go through the process. In most cases, residents will agree to comply with the process and set up an interview appointment with you.

b. If the resident remains uncooperative and refuses to set an interview appointment or refuses to provide you with the information and documentation needed for the recertification, send a second written notice. Not less than 90 days before the recertification deadline date, use the Follow-Up Rertification Notice form (See Appendix F, Form PM-404 or PM-411 for HUD buildings). Point out that non- cooperation with the recertification process is a violation of their lease, and give them a clear date deadline no more than 7 days from the date of the letter to schedule and participate in the recertification interview appointment and/or for them to give you the necessary documentation you need to complete the recertification.

c. Contact the social worker for your building and discuss the problem with her or him. Ask that the social worker also get in touch with the residents about this to encourage their cooperation in this process.

d. If there is non-compliance with the Follow-up Recertification Notice, then not less than 75 days prior to the recertification due date, issue a Final Recertification Notice:

(1/9/2018) 76 1. For HUD Properties, issue a Final Recertification (3rd reminder) Notice (HUD Properties) (See Appendix F, Form PM-410). This is a 60-day notice which informs the residents that if they do not recertify their incomes, their rent assistance payments will be terminated and their rent will increase to market rate.

a. This notice will serve as a 60-day notice of rent increase for the resident. TNDC will also exercise its option to evict the resident, if there is still no cooperation at the point of 60 days prior to the recertification due date. (See Paragraph C, below.)

b. Provide a copy of this notice to the building’s social worker.

c. In addition, if the resident still has not cooperated at the point of 60 days prior to the recertification due date, issue a 10-Day Notice to Perform Covenant or Quit (See Appendix F, Form PM-508) to evict the resident if there is continued non-compliance of their lease provision to recertify the household’s income annually. On the notice, state the lease provision being violated and which they must comply with within the notice period in order to avoid being evicted.

i. This notice will supersede the HUD-required 60-day notice of rent increase issued at the 75-day point (noted in Paragraph A, above). Since these are also Tax Credit projects, continuing non-compliance with their lease provision to cooperate with the annual income recertification process should result in their removal from the project, not just the loss of their subsidy.

ii. If there is still non-cooperation by the end of the 10-day notice period to comply with their lease, unlawful detainer proceedings are to be initiated, which would preclude accepting any more rent—subsidized or unsubsidized-- from the resident during that process until they vacate their unit or are evicted. (See Chapter 9, Section J for detailed procedures to file unlawful detainer actions.)

d. Provide a copy of this notice to the building’s social worker.

2. For Non-HUD properties issue a Final Recertification Notice (Non-HUD Buildings) (See Appendix F, Form PM-413) not later than 75 days from the date of their recertification due date.

a. This notice will inform the resident that they have 7 days to schedule and attend a recertification interview session and provide

(1/9/2018) 77 the required documentation to recertify their incomes. It will inform them that if they do not do so, management will serve them with an eviction notice.

b. Provide a copy of this notice to the building’s social worker.

c. If the deadline stated in the Final Recertification Notice has passed without getting the resident’s cooperation, then not later than at the point of 60 days prior to their recertification due date, issue a 3-day Notice to Perform Covenant or Quit (See Appendix F, Form PM-501) and state the lease provision being violated on it (relating to their violation of their lease provision to go through the annual recertification process). See Chapter IX: Lease Enforcement and Evictions for detailed instructions on how to use this form.

d. Let the resident know, upon serving the notice, that if they immediately choose to fully cooperate so that the recertification process is completed prior to the anniversary date of their previous certification, then this notice can be rescinded.

e. Give the social worker for your building a copy of this notice and request his or her help to get cooperation and compliance by the resident.

f. If the resident has still not complied by the end of the legal notice period and not moved-out, initiate a legal unlawful detainer process to evict the resident from the building. (See Chapter 9, Section J for detailed procedures to file unlawful detainer actions.)

C. Recertification Process

Recertifications are a lot like initial certifications for new residents, only easier. Some of the requirements and documents for the application process and initial certifications outlined in Chapters 2 and 3 are not needed.

1. Items Not Required for Recertifications:

a. Application b. Background check c. Reference checks

(1/9/2018) 78 2. Items Which are Required for Recertifications:

a. Blanket authorization or HUD 9887/9887A b. Identification documents (if not already in file) c. Social Security card (if not already in file) d. Tax return (if applicable) e. Employment information/documentation f. Assets information/documentation g. Any other income-related information/documentation h. Student status information/documentation (For residents in Tax Credit buildings) i. Various applicable verification forms j. Household composition information k. Tenant Income Certification Questionnaire l. Income Calculation Worksheet m. 50059 (HUD) n. Tenant Income Certification o. MOH Tenant Income Statement

3. Recertification Interview: During the interview process, have the tenant file (and specifically the last recertification documentation) readily available for reference.

a. Have all adult household members (18 years and older) sign and date the relevant Blanket Authorization (See Appendix F, Form PM-200) or HUD 9887/9887A (See Appendix F, Form PM-201) forms.

b. During the recertification interview, go through the Tenant Income Certification Questionnaire (TICQ) (See Appendix F, Form PM-202) with the resident.

c. Have the residents fill out, sign and date any relevant income, assets or student status verification forms that may be needed as a result of their answers on the TICQ.

d. If there is any supporting or reference information needed, ask them to go back to their unit and bring it down to the office, preferably during the interview session.

4. Verification Process:

a. Do the verifications using the same methods as for applicants’ certifications which are described in Chapter 3 - Sections C, E and F.

5. Analysis of the Information You Receive: In reviewing the information received on the TICQ and verifications, examine them carefully and ask yourself the following kinds of questions:

(1/9/2018) 79 a. Is this information consistent with what the resident(s) provided in the original or last TICQ? If not, is there any evidence that information provided earlier was fraudulent? Is long-time employment evident that wasn’t disclosed earlier? Are asset accounts now disclosed that weren’t disclosed earlier? Would the lack of disclosure of income or assets, or a false representation of household size, have caused the household not to have been eligible when they applied to live at your building? If so, what action do you plan to take?

b. Has the household composition changed? If so, is it still of a size that appropriate for the bedroom size the household presently occupies, based on TNDC’s occupancy standards? If not, will the household be requested to relocate to a more appropriately sized unit when one becomes available?

c. If there is a request to add a member a household, that would cause them to exceed income eligibility limits for that size household, will you tell them it cannot be approved? Or if someone has moved in without being income qualified, what action will you take?

d. Has a departure of a household member or other circumstances caused the household in a Tax Credit building to be comprised entirely of full-time students? If so, what actions will you take to get that household to vacate their unit?

e. Is any member of the household in a Tax Credit building planning to become a full- time student during the next 12 months that would cause the household to be comprised entirely of full-time students and thereby become ineligible? If so, what actions will you take to get that household to vacate their unit?

All of the above questions touch on some possible aspect of non-compliance which may require a corrective action to be taken. Bring any situation which warrants it to the attention of your property supervisor and take what ever action is appropriate to remain in compliance with the building’s regulatory requirements.

6. Recertification Approvals: Bring the entire tenant file, including all recertification documentation and submit it to the property supervisor using the File Review for Pending Recertification checklist form (See Appendix F, Form PM-402). Once your property supervisor reviews the file and deems it correct and complete, s/he will submit it to the compliance staff for approval. Use the same procedures before submission to compliance for approval, as specified in Chapter 3 – Section I. As with approvals of applicant files, go slow to go fast!

(1/9/2018) 80 VII. MAINTENANCE & INSPECTIONS

A. Introduction

Maintenance is one of the most important services TNDC provides to its residents and investors and stakeholders who have provided funding for our affordable housing developments. TNDC’s maintenance program’s goals are to:

 preserve and enhance the value and life of its developments for the long-term;  create safe, clean, well-functioning, attractive homes for residents;  minimize properties’ operating and capital replacement costs.

Each component of maintenance discussed in this chapter will seek to ensure that TNDC’s buildings are safe, attractive and work efficiently and effectively for both residents and management.

A rigorous system of inspections goes hand-in-hand with an excellent maintenance program. They are two sides of the same coin. TNDC seeks to “pro-actively” maintain its properties in superior condition with a minimum of complaints or requests from residents and a minimum of costly emergency breakdowns and repairs. A system of frequent, scheduled inspections will enable this to happen.

B. Performance Goals

1. Outcomes: TNDC seeks to achieve the following outcomes in the implementation of its maintenance and inspection policies and procedures.

 95% of all routine custodial/janitorial tasks are performed when scheduled.

 Litter shall be picked up by all staff at buildings when they see it to keep the interiors and exteriors of TNDC’s properties litter free most of the time.

 TNDC’s properties maintain a “curb appeal” which not only exceeds that of comparable SROs and apartments in the neighborhood, but also sets a standard for the neighborhood.

 When there are emergencies threatening the health or safety of residents or the building structure, the immediate threat to life and structure shall be abated within 1 hour of the emergency being reported.

 Graffiti will be removed within 24 hours of the time it is reported.

(1/9/2018) 81  Urgent corrective maintenance items are to be repaired between 1 and 3 days of the time they are reported.

 Routine corrective maintenance items should be corrected within 4 to 10 days with an average of 6 days for all requests.

 All maintenance performed (other than routine custodial and grounds maintenance) shall be documented on work orders.

 At least 60% of corrective maintenance work orders are to be generated from inspections by management and maintenance staff.

 Units that do not have extensive damage will be made ready to re-rent within an average of 5 work days of the prior resident vacating the unit. Units with extensive damages will be made ready within 2 weeks.

 90% of all scheduled preventive maintenance inspections and servicing are completed according to the timeframes established in the preventive maintenance plan.

 100% of all preventive maintenance tasks shall be completed on schedule or within 15 days of their scheduled dates.

C. Maintenance Organizational Structure and Staffing

Because of the variety of buildings in TNDC’s portfolio, their locations and other factors, a complex maintenance organizational structure has evolved which is difficult to characterize, describe, or draw a single organization chart for. Within the property management operations, is a Facilities Department--staffed by a manager and assistant manager. They are responsible for direct oversight of management of the “Small 8” buildings, policy development, vehicle maintenance, safety and other technical training for all maintenance staff, coordination of property maintenance, and capital improvements issues and decisions along with the property management director, property supervisors, general managers, and asset manager. Property supervisors have a high level of control and authority over the maintenance and capital improvements for the buildings in their portfolios.

For maintenance of its projects, TNDC has a mixed centralized/decentralized model where smaller buildings rely on the centrally directed and supervised “Small 8” crew noted above. Most large buildings have their own autonomous site-based maintenance crew who are supervised primarily by general managers. These buildings are independent of central control or direction. And, some other large and medium-size buildings have mostly site-based crews, but with some shared staff. Following is a matrix showing which buildings have each of those types of models:

(1/9/2018) 82 BUILDINGS MODEL 864 Ellis, Haight, Howard, Pierce, The “Small 8” Centralized Model Sierra Madre, Yosemite, Klimm and where maintenance and custodial staff Aarti work in several buildings and are directed and supervised by a lead maintenance person who is in turn, supervised by the Facilities Department manager. SOMA Studios, Dalt, CCR, Maria, Decentralized Model with strictly site- Antonia, Alexander, Curran, Turk- based lead maintenance staff directed Eddy and Plaza-Ramona and supervised by that building’s general manager and lead maintenance person. In some buildings, the general managers also direct and supervise the custodial staff; in other buildings, the lead maintenance persons do this. Ritz, Franciscan, Ambassador, West, Decentralized Model with various Cameo combinations of shared lead maintenance and/or lower level maintenance and custodial staff.

For the specific maintenance staffing configuration in your building, see Appendix O for an organization chart and set of job descriptions.

D. Maintenance Work Orders

1. What are Work Orders? Maintenance work orders are essential tools for documenting what maintenance work is needed, what work has been performed, where it was performed, what it cost to perform it, and whether the cost should be charged to the tenant. They are essential management tools for both assigning and monitoring maintenance work.

2. When Should Work Orders be Used? Work orders should be written for all types of maintenance described below, except for routine custodial maintenance.

3. How are Work Orders Generated? Work orders are originated from a variety of sources:

a. From inspections and requests by management and maintenance personnel who identify a maintenance problem.

b. From computer systems for recurring and/or scheduled preventive maintenance tasks.

(1/9/2018) 83 c. From resident requests:

1. Residents must fill out written maintenance requests. They can get them at their buildings either from desk clerks or from containers holding them outside of managers offices. (If a resident has literacy or language problem, they may communicate their requests verbally to management staff who will generate the written work order.)

2. Residents give the maintenance request to a management staff person, not directly to maintenance persons. Or, in some cases, they may place it in a maintenance request box in the building, which is checked multiple times daily by staff.

3. Residents must indicate on the request whether maintenance staff has their permission to do the repair if they are not present.

d. Following emergency work performed:

1. Work orders are written after the fact, in emergency maintenance situations to document what was done, who did the work, when it was done and its cost.

e. Following unit make-ready inspections:

1. Depending on what needs to be done based on the inspection, several work orders may need to be generated.

f. For “Small 8” buildings, work orders can be generated by managers on a spreadsheet for the building on TNDC’s network “O” Drive, which is then copied and pasted into an email sent to the “Small 8” lead maintenance person.

4. Work Order Logs: All work orders are to be documented on logs in order to allow managers and supervisors track their progress on being completed. The persons doing the work are responsible for completing information on work orders and the logs.

E. Custodial Maintenance

Custodial maintenance involves a planned program of routine daily and weekly activities to maintain the cleanliness and appearance of the property.

1. Who Performs Custodial Maintenance? Although each building has custodial staff assigned to it, custodial maintenance is not exclusively their responsibility. All management and maintenance staff persons are expected to pick up litter or wipe up spills whenever they see them. Maintaining a top quality building appearance is everyone’s responsibility. This is the

(1/9/2018) 84 most visible aspect of your maintenance operations. When residents see everyone pitching in to keep the premises neat and clean, they are more likely to do so, themselves, as well.

2. Custodial Maintenance Schedules: Each TNDC building’s maintenance and management staff have worked together to develop a schedule for custodial tasks. These include not only cleaning of interior and exterior areas, but also what they are expected to inspect and report if any problems are found. If there is more than one custodial person working on a property, each has his or her own check list. See Appendix C for this building’s Custodial Maintenance Schedule/Checklists.

3. Supervision: Different buildings have different supervisory structures. Some have custodial staff being direct reports to general managers, while others have custodial staff being supervised by the lead maintenance person for their building. In either case, however, both building managers and lead maintenance persons are expected to monitor custodians’ work by walking the building to inspect for cleanliness and appearance to ensure that it meets TNDC’s high standards of excellence. If problems are found, coaching and additional training for custodians may be needed.

F. Corrective Maintenance

Corrective maintenance involves repairs or replacement of damaged or non-working items based on service requests from residents or problems found during inspections or the normal daily routines by management and maintenance staff.

1. Priority System: Since human and financial resources are limited for maintenance, TNDC has established a set of priorities for handling corrective maintenance needs and requests:

Priority 1: Emergency: Any problem that creates an immediate and serious risk to life; or health and safety; or the interruption of essential building systems services. Examples are ruptured water lines, failure of any utility, gas leak, clogged waste lines, no hot water or heating, elevator service (where building has only one elevator or there is a problem with both elevators where two exist), building security breaches or any other immediate health and life safety hazards. Such situations require immediate attention. Response time to abate the hazards and/or damaging conditions should be within 1 hour during regular business hours, or 2 hours after regular business hours. (Since Emergency Maintenance is so important, it is discussed as a separate category of corrective maintenance in Section E below, following this section.)

Priority 2: Urgent: Any problem that if not corrected promptly, may give rise to an Emergency as defined in Priority 1. Examples include broken windows, repairs to, or replacement of, non-functioning smoke detectors, electrical outlets, common area and exterior lighting, appliances, bathroom fixtures, elevators, when one of two existing is operational and potential health and life safety hazards. Response time should be within

(1/9/2018) 85 3 days of the work request, with an average of 2 days. Inoperable smoke detectors should be repaired or replaced within 24 hours of the time the problem is identified.

Priority 3: Routine: Any problem that does not qualify as and Emergency or Urgent request as defined above. Examples include dripping faucets and valves, cracked windows, repairs to non-critical furniture and window coverings, repairs to flooring and minor painting. Response should be within 3 to 10 days of receipt of request with an average of under 6 days, depending on backlog and staffing available.

2. Process for Performing Corrective Maintenance Work: Most corrective maintenance work will involve the following steps:

a. Generate/receive maintenance request.

b. Create a work order.

c. Handle “permission to enter” issues by setting an appointment with residents, where work is to be in a unit and blanket permission to enter was not provided by the residents with the request.

d. Schedule the work with a maintenance staff person or outside contractor, if necessary.

e. Person assigned the job does an initial inspection to determine the nature of the problem, if necessary.

f. Obtain any materials or supplies necessary for the job.

g. Complete the work.

h. Document date work completed, costs and any other relevant information on the work order.

i. A supervisor inspects and approves the work performed.

3. Protocol for Maintenance Work in Residents’ Units:

a. If a resident has given permission for maintenance to enter their unit whether or not they are present, schedule the repair as soon as possible within its priority. If possible, call or otherwise contact the residents to let them know when the work is scheduled, do so as a courtesy.

b. If the resident has not given permission to enter their unit if they are not present, the maintenance staff person should call the resident to schedule the work for a mutually

(1/9/2018) 86 convenient time.

c. If a routine repair request cannot be handled within 5 days of the request, notify the residents when the work will be performed. If there is further delay or a decision to defer the work, inform the residents.

d. If maintenance is working in an unoccupied unit, post a door hanger notice on the door to notify the resident that someone is currently in the unit. In addition, leave a note for the resident inside the unit indicating that maintenance entered it and providing information regarding what work was completed and whether follow-up work and another entry will be necessary.

e. There may be times when a maintenance person may want to leave the door to the unit open or ajar, if working in a unit with a resident present.

f. If only a minor child is present in the unit, reschedule the work for another time, when an adult will also be present.

g. If maintenance personnel are to enter the unit for pest control or other maintenance work not requested by the resident, post notice of entry at least 24 hours in advance.

4. Payments for Resident Caused Damages To Units: If management or maintenance staff determine that repairs or replacements in units are necessary because of damage or negligence caused by the resident, the general manager will decide whether to charge the resident for the repair and, if so, determine the appropriate amount.

a. The manager will inform the resident of the problem, amount to be charged by filling out a Resident Maintenance Charge-Back Form (See Appendix F, Form PM-801).

b. If the resident needs time to pay the charge there is a payment agreement section of the Resident Maintenance Charge-Back Form where the manager and resident will work out and note reasonable amounts and payment dates and then sign the form.

c. The manager will make 3 copies of the form, giving one to the resident, placing one in the resident’s file, and sending the one to the Accounting Department so that the amount will be posted as a receivable to the tenant’s Rent Roll account.

d. The manager is responsible for collecting the amount for damages per the agreement.

G. Emergency Maintenance

1. What is a Maintenance Emergency? A maintenance emergency involves damage, breakdown or malfunction of a system or building component which may pose an

(1/9/2018) 87 immediate threat to the health and safety of residents or to the facilities. Immediate response is required to abate hazards which pose threats to persons or property. Emergencies include:

 The interruption of essential services (hot or cold running water, electricity, gas, adequate heat in the winter, a non-functioning elevator)  Glass breakage which deprives residents of security or heat in the winter.  Repairs that, if not performed, would expose resident to injury.  Flooding from ruptured water lines or fire sprinkler heads that have been damaged and are spraying water without there being a fire.  Gas leaks.  Roof leaks.  Waste line blockages.

Fires are serious emergencies, but they should be initially treated as life-safety emergencies, not immediate maintenance emergencies. Call the Fire Department at 911 to handle them. See Chapter 11, Section E, for a discussion of handling fire emergencies. Building staff need to use their judgment as to what is, and what is not, an emergency that would necessitate calling in maintenance staff after hours or on weekends. If, for example, a sink or tub overflows and is causing water to leak through the ceiling in the unit below, building management staff can stop the source of the leak and use a mop bucket to catch the remaining dripping water below. But the repairs can wait until the next business day and don’t need to be treated as a maintenance emergency item at night or on a weekend.

2. Reporting Emergencies:

a. Each building must have a clear protocol and system so that residents and staff can report emergencies both during normal work hours and after work hours and on the weekend. The systems will differ widely because of the staffing configurations at buildings. However, following are the shared basics:

1. For staff, there must be an up-to-date list of building-specific maintenance and management staff people and approved emergency vendors to call during emergencies and their contact numbers. The list is to be maintained and kept current on the Emergency Phone Numbers List in Appendix E of this manual. Contact numbers listed for persons should include, where relevant:

 Nextel Three-digit Code #  Office Phone #  Home Phone #  Cell Phone #

2. For residents:

(1/9/2018) 88  During their orientation session, emergency maintenance reporting procedures must be explained to them in addition to explaining what is and is not a maintenance emergency. Give them a sheet with the relevant current phone numbers they can use for after-hours emergency maintenance contacts.

 On the outside of the building’s management office, if there is not 24 hours a day, 7 days a week staffing at a front desk, post an emergency maintenance phone number that residents may use.

 If there is not 24 hour a day, 7 days a week staffing at a front desk, on the management offices outgoing voice mail message include a phone number which residents may call to report a maintenance emergency.

3. Handling Emergencies:

a. In the event emergency maintenance work that needs to be done, management may enter the unit without the resident being present and without giving the standard 24-hour advance notice. In these cases, a note will be left for the resident indicating the time the unit was entered and the reason.

b. After completing the maintenance emergency, complete a work order to document the amount of time and materials used.

c. Where TNDC maintenance staff may not be available to handle an emergency or not have the skills, or specific licensing is needed to work on a system such as elevators, call an authorized vendor or contractor which will be listed on the Emergency Phone Numbers List in Appendix E.

4. Building Systems Guide:

a. Every TNDC property has an illustrated Building Systems Guide comprised of text and photographs describing the locations and instructions about how to access, and how to turn on and off various building systems—such as gas, electric and water. It also includes information regarding understanding and using certain emergency systems, such as the building’s fire alarm enunciator panel. These are very useful for quick references for you to use during emergencies. The Building Systems Guide for this building is found in Appendix B.

(1/9/2018) 89 H. Unit Turnover Maintenance

Turnover maintenance involves securing, cleaning and redecorating vacated units for occupancy by new residents. It is TNDC’s goal to clean, make repairs, replace unrepairable items, and redecorate vacated units as quickly as possible for re-renting. Procedures for performing vacated unit turnover maintenance involve a great deal of communication and coordination between residents, various management and maintenance staff and, in some cases, outside contractors or vendors. Tasks include inspections, work write-ups, decisions about what work can be performed in-house and what work can be most quickly performed by outside service contractors, issuance of work orders and purchase orders, re-inspections, and decisions regarding what expenses are to be paid from charges against the former resident’s security deposit. In general, units left in reasonably good condition with only normal wear and tear should be made ready to re-rent within 5 days of move-out. Units where there is significant damage and redecorating necessary should be made ready within 2 weeks of move-out. See also Chapter X: Move-Outs for policies and procedures affecting move-outs and preparation of units for new tenancies.

1. Pre-Move-Out Inspection: If a resident provides a 30-day move out notice, schedule a pre- move out inspection with the resident that is within two weeks of their announced move-out date. This inspection serves two important purposes:

a. It puts TNDC in compliance with a state law (AB 2330) that went into effect in January 2003. It requires that residents be given the opportunity to have an inspection prior to their moving out so that they can have an opportunity to maximize the amount of their security deposit which they will be able to get back. Use this opportunity to let them know what they can clean (and the standards of cleanliness you expect) and perhaps repair or replace, to enable them to get as much of their security deposit back as possible.

b. It gives TNDC the opportunity to schedule unit turnover work and order any necessary supplies well ahead of time so that the unit can be prepared for re-renting as quickly as possible by having the work commence immediately after the current resident moves out.

1. The manager and lead maintenance person must conduct this inspection together, using a blank Move-in/Move-out Inspection form (See Appendix F, Form PM- 700) but also having accessible the residents’ initial Move-in/Move-out Inspection form to assess damages beyond normal wear and tear.

2. Then fill out a Vacant Unit Preparation Schedule (See Appendix F, Form PM- 703) indicating who on staff, or perhaps what vendor, certain tasks will be assigned to. This is essentially a check list for managers to plan and monitor the vacant unit preparation work which can be filled in with contact and completion dates for various tasks as they happen.

(1/9/2018) 90 2. Move-Out Inspection: Preferably on the day of move-out when the residents are ready to turn in their keys and have moved their belongings out of their unit, conduct a move-out inspection using the Move-in/Move-out Inspection Form (See Appendix F, Form PM-700).

a. With the residents present, if possible, assess the condition of each of the items on that form and determine whether there is any damage that would exceed normal wear and tear for the time the residents have lived there, and which takes into account the condition of the specific features in the unit when they moved in.

1. If there are damages that exceed normal wear and tear or extraordinary cleaning and redecorating called for, inform the residents of that and let them know that there will be a charge.

2. Do not try to give them the specific amount at this time; tell them that the specific deduction from their security deposit will be known once the repair, cleaning, redecorating or replacement work is fully planned or completed.

3. Let them know that they will receive a Itemized Disposition of Security Deposit (See Appendix F, Form PM-600) within 3 weeks which shows security deposit amounts deducted and the amount that will be returned to them. If they are due a refund, a check will follow shortly. (See Chapter X: Move-Outs for a detailed discussion of the use of this form and processing security deposit returns.)

3. Perform the Work: Coordinate each of the tasks that need to be done. Timing and order is important. Generally unit turn-over maintenance tasks are performed in the following order:

a. Change unit entry lock/key on every move-out.

b. Clean out personal items left behind:

1. If what is left behind is clearly junk and refuse of no value, dispose of it.

2. If what is left behind has value, the items must be inventoried, bagged, tagged and stored, and a Notice of Right to Reclaim Abandoned Property (See Appendix F, Form PM-601) must be mailed to the resident’s forwarding address or address in your building, if their new address has not been provided. (See Chapter X: Move-Outs, Sections C(1) and G for detailed information about the form and handling this process).

c. Make any necessary repairs and replacements.

d. Paint walls, if necessary.

e. Do floor work, including carpet shampooing, if applicable.

(1/9/2018) 91 f. Thoroughly clean unit to put it in “A-1 Move-In Condition”.

g. Maintenance will turn over the entry key to the manager when the work is complete.

4. Inspect the Unit: Once all the work has been completed and documented both on work orders and the Vacant Unit Preparation Schedule (See Appendix F, Form PM-703), conduct a final quality check inspection to certify that the unit is ready for re-renting and showing to potential residents. (NOTE: Units should not be shown to interested persons and applicants until they have passed this final inspection.)

I. Preventive Maintenance

1. What is Preventive Maintenance? Preventive maintenance is a program of planned inspections and servicing of various building components and systems to reduce the frequency and severity of breakdowns and emergencies, and to extend the useful life of building equipment and features. It includes:

a. Routine inspections and servicing of equipment and systems (at minimum, to the level recommended by manufacturers)

b. Making seasonal adjustments

c. Making scheduled replacements

d. Routine measures taken to prevent known potential problems such as pest and vermin infestation

e. Maintaining or extending the useful life of building systems.

A good preventive maintenance program is the foundation of a “pro-active” maintenance model. It will ultimately result in operating and capital replacement expense savings for TNDC’s buildings by reducing the number of routine and emergency maintenance requests and by extending the useful life of equipment and systems.

2. Preventive Maintenance Plan: Lead maintenance staff, with review and approval by Facilities Department staff, must develop a preventive maintenance plan, which is a schedule/check list of tasks at different intervals (weekly, monthly, quarterly, semi-annual, annual) performed by staff or contractors. See Appendix H for a copy of this building’s Preventive Maintenance Schedule. Some preventive maintenance tasks must be done by outside contractors because specialty skills and licensing is required. These include regularly scheduled servicing of:

(1/9/2018) 92  Elevators  Fire alarm and sprinkler systems  Heating boilers  Fire extinguishers  Spraying and treating units and common areas for pests and vermin

3. Monitoring Preventive Maintenance: A schedule is only useful if it is implemented. Therefore the preventive maintenance schedule must be monitored and evaluated by building general managers and maintenance supervisors. It is TNDC’s goal that at least 90% of all preventive maintenance tasks occur when scheduled with not more than 10% of tasks being completed later than 15 days after of their scheduled times. Monitoring tools and methods include: a. Work orders generated by the computer system to “prompt” the tasks, and the being used to track and document what preventive maintenance inspections and work occurred and when. b. Servicing logs maintained on or near equipment, such as boilers and circulating pumps, that maintenance persons must make written entries on when they service the items. c. Frequent monitoring inspections by managers and supervisors.

4. Pest Control: Pest control includes both preventive and corrective maintenance activities to prevent and control infestations principally involving cockroaches, rodents, and most recently, a significant city-wide problem with bed bugs. It is most cost-effective to emphasize the preventive maintenance aspect of controlling these types of pests. Pest prevention includes:

a. Educating residents during the leasing and orientation sessions and with information included in their Resident Handbook provided to them about ways to prevent infestations with good housekeeping practices. And, inform them to report any signs of roach rodent or bed bug infestation they see immediately to management.

b. Entry into units, on an at least a monthly basis, to spray for roaches. Some residents may not like spraying or have a doctor’s “reasonable accommodation” letter to exempt them from it. However, since it is a public health issue, their unit should still be entered (with 24 hour notice) and serviced periodically with roach “bait” (that would not affect someone’s health condition) in order to prevent and/or control any infestation, and also to allow maintenance personnel to inspect all units. Following is the protocol for pest control treatments and inspections:

1. A maintenance and/or management person assigned to the building, should accompany the pest control company technician as s/he enters units.

(1/9/2018) 93 a. This is an opportunity for an inspection to make sure that there are no signs of infestation and no evident, significant unreported maintenance needs in the unit.

b. It is also an opportunity to evaluate the resident’s housekeeping practices.

1. If the housekeeping is not acceptable—too the extent that it would represent a risk of infestation or a fire hazard to others in the building, the maintenance person should note this on his/her inspection list and report it immediately to the general manager.

2. The general manager must then immediately issue an Apartment Condition Non-Compliance Letter (See Appendix F, Form PM- 407). This is a friendly letter explaining the problem and that they are in violation of their lease because of it. It requests that they clean up their apartment and improve their housekeeping practices. And it indicates there will be a follow-up inspection within 2 weeks. (See Chapter IX: Lease Enforcement and Evictions for more detailed instructions to handle these kinds of situations, and next steps to take, if there is no improvement resulting from this letter.)

2. Whenever any significant infestation is found, corrective action must be taken immediately to prevent it from spreading to other units in the building.

5. Handling Bed Bug Infestations: Identifying and stopping bed bug infestation early and quickly, is particularly important. It is an increasing problem and very costly to deal with. It must not get out of control.

a. TNDC, as required by the San Francisco Department of Public Health, has developed a detailed Bed Bug Protocol.

1. A copy of this protocol is in all buildings. All management and maintenance staff must be aware of the procedures and follow them. They include:

a. Training

b. Information on how to detect and identify bed bug infestations

c. Procedures on how to respond to and report complaints

d. Procedures on how to request inspections from licensed pest control personnel

(1/9/2018) 94 e. Procedures on required record keeping

f. Information regarding corrective actions eradicate the problem where found and prevent its spread to adjacent units

2. Whenever the possibility of a bed bug infestation in your building becomes evident, contact and work closely with the Facilities Department staff, who are trained specialists in dealing with these problems and implementing the Bed Bug Protocol.

J. Inspections

As noted in the introductory section of this chapter, TNDC can’t have an effective maintenance program with out a rigorous system of inspections. There are four principle categories of inspections that go hand-in-hand with all of the types of maintenance discussed in this chapter:

1. Routine, Informal Inspections: Manage by walking around!

a. When you arrive at work each morning, go to your office, put your stuff in it, grab a pen and pad of paper, leave your office, and start walking around your building from bottom to top.

1. Starting in the basement and going to each floor in your building, including the roof, inspect hallways and common areas. Look for trouble!

2. Look at these areas as if it is the first time you’ve seen them.

3. Ask yourself these kinds of questions:

a. Is what I’m seeing not as clean as it should be?

b. Are there any hazards (accidents and perhaps lawsuits waiting to happen)?

c. Is there anything missing?

d. Is there anything that appears to be not working?

4. If there are any “yes” answers to the above questions, note the problems on your pad.

5. On your early morning tour, if you happen to come across a coffee cup or other litter on the floor, bend down and pick it up.

(1/9/2018) 95 6. When you return to your office, reward yourself with a cup of hot coffee for having just accomplished one of the most important kinds of things a general manager and supervisor should be doing on a daily basis.

7. Then create work orders to deal with any problems you found. Treat any hazardous conditions found as priority 1 emergency maintenance to abate them immediately.

b. A second type of “informal” inspection is to let residents be your eyes:

1. When you encounter and speak with residents—such as when they come to pay their rent—during your conversation with them, simply ask whether they’re encountering any problems with their units or have any maintenance needs? They might let you know that their toilet keeps running—which they might not have thought to tell you if you hadn’t asked. Something like that could be a simple warped drain stopper adjustment or valve adjustment that is inexpensive to fix, but could end up saving thousands of gallons of wasted water and lots of money going down the drain if you didn’t find out about it until the next 100% unit inspection.

2. Planned, Scheduled Inspections: Several types of inspections fall into this category.

a. Inspections which are part of preventive maintenance tasks, discussed in the previous section.

b. Inspections during pest control activities.

1. These are good ways to frequently get into units to not only detect pest problems but other types of maintenance needs, too.

2. If residents are in their units at the time, ask them the same basic question as above: Are they encountering any problems that maintenance can fix for them?

c. Monthly inspections with your property supervisors.

1. Walk the whole property with them inside and out, with the Monthly Inspection Report (See Appendix F, Form PM-706).

2. Use the opportunity to point out needs or problems that might require the use of replacement reserves this year, or which should be included in next year’s capital improvement budget.

(1/9/2018) 96 d. Annual Inspections of All Unit Interiors by general managers and the lead maintenance persons.

1. Post 24-hour notices for these inspections, explaining the need for management to perform them.

2. Use a formal SRO Annual Unit Inspection Checklist (See Appendix F, Form PM-707) or a Apartment Annual Unit Inspection Checklist (See Appendix F, Form PM-708) for these inspections.

a. Check any place there is water for evidence of leaks.

b. Check smoke detectors to make sure they are working.

c. Check for things that may be causing hazards to either the residents of that unit or others in the building.

d. Evaluate housekeeping to determine whether it crosses a line where it may be causing hazards to others or doing damage to that unit.

e. Check to see that appliances are working properly.

f. Check to see if any prohibited kinds of appliances being used.

g. Check to see if there is any apparent visible evidence of drug use.

3. Following the 100% unit inspections:

a. Generate work orders to fix any problems found.

b. Issue housekeeping letters, if appropriate.

c. Issue other types of lease violation notices, if appropriate.

3. Monitoring Inspections: These are quality control inspections by general managers and supervisors to ensure the maintenance work is being done to the high standards TNDC expects.

a. Custodial maintenance supervisory inspections happen during the manager’s daily building inspections described above.

b. Managers are to periodically inspect a sample of corrective maintenance jobs by TNDC maintenance staff for which completed work orders are received.

c. Managers or lead maintenance staff are to inspect and sign off on work done by outside contractors or vendors. This must be done before approving their invoices for payment.

(1/9/2018) 97 (NOTE: If there are repeated or substantial problems with an outside contractor or vendor, contact the Facilities Manager to discuss the situation and the possible removal of the vendor or contractor from TNDC’s approved list.)

d. General managers must do a final quality control inspection to approve vacated units which have been prepared for re-renting before they may be re-rented.

4. Public Agency and Stake-Holder Inspections: These inspections are all announced ahead of time and are often conducted as part of funders’ program audits. Management should do pre- inspections of common areas and take immediate corrective actions for any deficiencies found prior to these inspections to ensure there will be no findings. TNDC buildings encounter the following are the types of public agency and stakeholder inspections:

5. Periodic inspections by various state and federal agencies which have provided funding, the California Tax Credit Allocation Committee (TCAC), and by tax credit project limited partner investors.

1. TCAC is required to audit and inspect at least 20% of all of the state’s tax credit properties per year, so you can assume there will be one on-site audit and inspection of each TNDC tax credit property every 4-5 years. Audits and inspections by tax credit limited partners and/or other public agencies are likely to be more frequent. For the HUD properties, there are HUD REAC inspections of units conducted annually.

2. Normally 10% - 20% of units will be inspected, depending on the agency. They will be selected randomly on the day of the audit. So you will have to post notices of inspections on all units at least 24 hours prior to the time of inspection.

3. Agency inspectors and auditors try to determine whether the units and common areas are safe, habitable and in good repair. They are particularly concerned about finding conditions that would pose life-safety hazards.

4. If, as a result of these inspections, citations, or violations notices are issued, the general manager is to:

a. Create a work order to correct the deficiency immediately, if possible.

b. Inform the facilities manager and transmit a copy of the citation when it is received. If assistance from the Facilities Department is needed to correct the deficiency, request it.

c. Inform the facilities manager when the problem has been corrected and transmit written documentation of this. If the agency that

(1/9/2018) 98 issued the notice, does a follow-up inspection issues a Notice of Abatement, send copies to the facilities manager.

d. The facilities manager will inform the director of property management and asset management division of the citation and corrective action taken. Copies of documentation will be provided to the asset management director, because this division is normally responsible for reporting to funders and stake holders regarding such problems.

5. Inspections by the San Francisco Housing Authority (SFHA) for units using Section 8 vouchers.

a. After an applicant for a Section 8 unit has been approved (except in the four HUD Contract buildings), send to SFHA a Request for Tenancy Approval (RTA) (See Appendix F, Form PM-243 [HUD-52517]).

b. As part of that approval process SFHA will schedule an inspection of the unit the applicant will live in based on Housing Quality Standards (HQS).

c. Prior to the inspections, the lead maintenance person is to pre- inspect the units using an HQS checklist. If any deficiencies are found, correct them before the scheduled inspection date to ensure that units will pass the first time.

K. Purchases of Maintenance Supplies and Services

1. Purchase Orders: All maintenance services and supplies used at TNDC buildings must use purchase orders, except for signed contracts with vendors and contractors that have consistent monthly amounts due.

a. Maintenance staff are to fill out and get approval of purchase orders from the building’s general manager for purchases of maintenance supplies and equipment.

b. General managers have the sole authority to approve purchase orders of up to $500.

c. A building’s property supervisor’s approval is also required for purchase orders between $500 and $1,000.

d. Requests for materials, equipment or services above $700 that could be considered capital improvements need approval by property supervisors, facility management

(1/9/2018) 99 director and asset manager.

e. Capital improvements over $2,500 require bids. Following is the procedure for obtaining and evaluating bids:

1. Prepare written specifications for the needed supplies, equipment or services. Be clear about a final date on which bids or estimates will be accepted.

2. Provide the same specifications to all vendors or contractors so that they are all bidding or providing estimates on exactly the same thing.

3. Get their bids or estimates in writing.

4. Evaluate the bids or estimates. Make sure they are responsive to the specifications. If they are providing some variation in their bid or estimate, take that into account when making a decision.

5. Select the lowest responsible bid and submit to the property supervisor, facilities manager and director of property management to approve.

6. Once all approvals have been obtained, the purchase order may be issued.

2. Paying Maintenance Invoices: The following procedures govern approval and payment of invoices:

a. After receiving an invoice from a vendor or contractor, attach the purchase order related to the service or goods received.

b. Also attach to the invoice a copy of the vendor receipt, or approval of service provided.

c. A purchase order and approval of service provided are not required to be attached to invoices for signed contracts with vendors and contractors that have consistent monthly amounts due.

d. Attach the above documentation to a filled-out TNDC Check Request form (See Appendix F, Form PM-802). Use the codes listed on the form and on the Annotated Chart of Accounts which is included in Appendix Z of this manual. Submittal of the check request indicates your approval for payment of the invoice.

e. Deliver the documents to your building’s property supervisor for his or her approval.

(1/9/2018) 100 f. After the property supervisor approves the check request, s/he will submit it to the Accounting Department for payment.

g. Approved check requests submitted to the Accounting Department by Wednesday at noon will be cut on Friday of that week and mailed out by the following Monday.

L. Inventory of Equipment, Furnishings, Tools and Supplies

1. Property Inventory Lists: The general manager, working with the lead maintenance person, is responsible for creating and maintaining an inventory list for each property. This inventory is a resource for capital planning and to safeguard each building’s resources. The list will include the following:

 Common area property and furnishings.

 Tools and equipment.

 Unit appliances.

 Carpeting and other floor coverings. Painting

And, it will contain the following information:

 Brand name and model number of item.

 Serial number.

 Description (size, color).

 Location.

 Year purchased (or repainted)

2. Property Maintenance Supplies Storage and Inventory: Most buildings have spaces where they can securely store tools and an appropriate amount maintenance supplies.

a. General managers and lead maintenance staff will jointly determine the types and amounts of maintenance supplies—including cleaning agents, fixtures and appliances— which should be maintained in a building’s supply room to expedite corrective or unit

(1/9/2018) 101 turnover maintenance by having items on-hand that are known to be broken or wear out. b. Re-order levels to replenish each of these types of supplies will also be determined by the general manager and lead maintenance person. c. The lead maintenance staff person for the building is responsible for maintaining an up- to-date inventory of supplies on-hand and to request purchase orders when levels of various supplies reach their re-order quantity level. d. General managers are responsible for periodically doing supervisory checks of supplies and the inventory to ensure that the system is being kept up-to-date, items are being appropriately replenished, and that no pilferage is occurring.

(1/9/2018) 102 VIII. RESIDENT RELATIONS

While housing management involves a variety of systems and technical tools and operates within physical structures, it is fundamentally about people and relationships. The human elements and concerns should be prime considerations in everything managers do. Affordable housing has been developed to meet low income households= basic shelter needs. These can be relatively easily satisfied with good management practices specified elsewhere in this manual. Beyond their physical needs, most people also have certain psychological needs--wanting safe, pleasant surroundings, courteous management, a sense of community to combat loneliness and isolation, and relationships with other people who genuinely care for them. For TNDC, housing is Amore than a roof@. It is a foundation for both the improvement of individuals= and families= social and economic well-being, and for the enhancement of the Tenderloin neighborhood and community.

A. Customer Service Approach to Management

It is TNDC=s intent to create a relationship of mutual respect and cooperation between management staff and residents. Provision of services to applicants and residents is the principal reason TNDC=s management and maintenance staff have jobs. Persons inquiring about units in buildings managed by TNDC will be more likely to apply, if they are treated with courtesy and enthusiasm. A body of contented residents--who feel that a wide range of their needs are being met--means lower turnover. Residents who are comfortable being part of a residential community, will also be more likely to uphold their responsibilities--such as paying their rent on time, taking better care of their units and having increased pride in the larger Tenderloin neighborhood.

1. Verbal Communication: The foundation of positive resident relations involves good communication, which is clear, positive, frequent, considerate, tactful, honest, fair and firm, when necessary.

a. Both residents and management have rights and responsibilities towards one another. It is important that those responsibilities be communicated clearly and sincerely, both in word and deed during all contacts--starting with initial inquiries about renting, the application process, the leasing and orientation process, and continuing throughout residents= tenancy. Once this happens, there will be fewer misunderstandings and residents will have a better chance to be successful in their tenancy.

b. Keep in mind the following guidelines for communications with residents:

 Verbal communications should be, courteous, open, honest and dignified.

(1/9/2018) 103  At times there are stressful situations in your job. Try your best to not lose your temper; remove yourself from the situation for a while, if possible when you sense it happening.

 Deal with residents’ requests quickly.

 If there is something that might hold up fulfilling a maintenance request, let the resident know that, and when they can expect it to be completed.

 Don’t promise that which you can’t deliver or have no authority to grant.

 Don’t take complaints personally; many are warranted and should be addressed fairly and professionally. If there is nothing that can be done or you don’t have the authority to do something, say so.

 Keep your property supervisor and social worker for the building in the loop where there are significant communication or behavior problems.

 Be friendly, but it isn’t your role to be a friend to residents. Maintain a professional distance.

2. Other Types of Useful Communication With Residents:

1. Newsletters and Community Bulletin Boards: These are a good way to notify residents of events/activities and to explain building policies and services. They also are good vehicles for explaining new or changed procedures, and for introducing new staff and saying farewell to departing staff.

2. Resident Handbook: Each new resident should be given a copy of TNDC’s Resident Handbook at the end of their orientation session. If kept up-to-date, it gives TNDC’s residents useful and clear information about their responsibilities as tenants, safety tips, and resources and services they can access to meet their needs.

3. Signs: Signs can be negative and depressing, or positive and informational. Go for the latter approach in your building. Don’t use hand written signs. Generate them on your computer and make them look attractive. Instead of having a lot of negative and foreboding signs starting with a “No” or “Don’t”, start with words like “Please” or “Thank you” (It’s the difference between a sign that reads “No Smoking” or one that reads “Thank You For Not Smoking”. They both result in the same behavior, but one sounds a lot more positive and friendly.)

4. Non-Verbal: There is also powerful silent communication that is expressed by management and maintenance staff at your building having a generally positive, cheerful attitude in the way staff handles their jobs, smiling a lot, greeting or acknowledging residents when seeing them, and by the pride in which all staff at the

(1/9/2018) 104 building take in maintaining it in excellent condition. Those kinds of things communicate a lot to residents.

B. Professionalism

1. Confidentiality:

a. Resident records are confidential. Information about residents should not be released to anyone outside TNDC except for statistical purposes or when required by a law enforcement agency.

b. Do not discuss residents’ problems or personalities with other residents. Steer clear of any gossip, if a resident tries to involve you in it.

c. There will be certain types and pieces of information that your building’s social worker on TNDC’s Tenant Services Department staff is aware of regarding applicants and residents in your building. The social worker may not give this information to building management staff because of confidentiality rules. You must respect that, and work cooperatively with the social worker within those policies.

2. Resident Privacy:

a. Without being intrusive, there should be frequent contacts between management staff and residents to see how things are going for them and to determine whether they have any needs or problems.

b. But bear in mind that, while it is important to stay in touch with residents and inspect their units periodically, residents also have the right to the quiet enjoyment of their leased premises. Many residents may not have any pressing needs to change or improve their lives, nor behavior problems which jeopardize their continued tenancy. They may simply desire to be left alone to live their lives--and not desire to participate in various social services or community-building activities. Their desires should be respected.

c. Entering residents units should not be more frequent than necessary to assure that units are being properly maintained (including pest control) and to perform scheduled building unit inspections and inspections required by funders.

 Unless there is an emergency situation, residents should be given 24 hours written notice before management or maintenance staff enter their units.

 If a unit is entered for emergency purposes, leave a note for the residents to let them know when it was entered, by whom and why.

(1/9/2018) 105 3. Non-Discrimination:

a. At all times treat residents in a consistent, fair and unbiased manner when:

i. responding to requests and complaints; ii. enforcing rules; and iii. providing resident amenities.

4. Accepting Gifts or Favors from Residents:

a. Management staff are not to request, or accept any gifts, money or favors from residents (nor are you to give residents any gifts or give/lend any money).

b. Often residents will want to express their appreciation to management staff. Let them know that a simple “Thank You” is an expression of gratitude that you can happily accept.

5. Dress Code: The following dress code standards apply to property management and maintenance personnel:

a. Business casual attire must be worn at all times.

b. Button down or polo short/long sleeve shirts are acceptable. Shirts must be buttoned to within 2 inches of the collarbone (no more than two buttons should be undone.)

c. Slacks, pants and/or jeans that are clean and free from tears are acceptable.

d. Sundresses, skirts that are shorter than above the knee, and shorts/skirts are not acceptable.

e. No bare midriffs, no transparent clothing, no visible undergarments/underwear.

f. Tank tops are not acceptable.

g. Shoes: For safety reasons, high heeled shoes that are higher than 2 ½ inches, sandals and/or open toe shoes (example: flip-flop sandals) are not acceptable.

h. Vouchers are provided for maintenance and custodial staff so they may purchase shoes that meet safety standards, and it is preferred that these shoes are worn while performing work.

(1/9/2018) 106 i. For safety reasons, if performing maintenance or custodial duties, socks must be worn at all times.

j. Tennis shoes and walking shoes are acceptable provided that socks are worn and the shoes are clean and free of tears.

k. Staff must report to work clean and properly groomed.

l. Uniforms (for maintenance and custodial staff) issued for work will be paid for and distributed by TNDC and must be worn during the employees’ work shift. Maintenance staff are to wear their uniforms and slacks, with shirts tucked in.

m. Desk clerks will receive a Polo or T-Shirts with the TNDC logo and are required to wear it for the duration of their work shift.

n. Beards and moustaches are acceptable.

6. Sexual Harassment:

a. Every TNDC management and maintenance staff person needs to be trained and aware of policies concerning sexual harassment, which like other forms of physical or verbal harassment, is prohibited by TNDC’s personnel policies.

b. Sexual harassment is defined as unwelcome or unsolicited verbal, physical or visual sexual advances (as perceived by the individual) such as: demands for sexual favors in exchange for favorable treatment; verbal comments about an individual’s body, flirtations, leering, whistling, pinching, sexual invitations, coerced sexual acts, touching, comments of a sexual nature, or display of sexually suggestive objects or pictures.

i. Carefully avoid the appearance or perception of any of these things in your interactions with residents and other staff members.

ii. Avoid speaking to residents using any informal or personal terms. Especially don’t use words like “dear”, “dearest”, “honey”, “hon”, etc.

iii. When in residents units, leave the door ajar or open, if possible. Or try to be accompanied by another person, if appropriate and possible.

iv. If you have to enter a resident’s unit when they are not home, leave a note or door hanger on the outside of the door while inside to let them know someone is in there, so that they will not be startled to find someone in their unit when they return.

(1/9/2018) 107 C. Direct Social Services

TNDC’s Tenant Services Department has social workers assigned to each building to work with management and assist your residents retain their housing and otherwise stabilize and improve their lives. They are a great resource to assist you with problem and crisis intervention. These services, and the social workers relationship with management staff, are discussed in detail in Chapter XIII: Tenant Services.

D. Community Building and Socialization Activities

Community-building activities are informal types of social services which allow residents to come together in an organized way to socialize, relax and work together to solve community problems.

 These social activities help to make your building feel like “home” rather than just a place to sleep and hang their clothes.

 These types of activities also help create a sense of community where residents get to know each other, become better neighbors, and look out for one another=s interests and security.

 They include social activities like holiday meals and pot-lucks, and other events or get together which may be appropriate for and desired by the residents of your building. Or if residents are interested, they may want to form a “Tenant Council” to discuss and act on issues or problems that may be of common interest.

o Look at your resident profile, continually speak with them and analyze what their needs and desires for activities may be.

o Your building’s social worker is also available to assist and partner with you in planning community building and socialization events in your building.

 They are often most effective when organized and conducted primarily by residents, themselves, with assistance, including some financial resources, as needed from management.

E. Resident Disputes

(1/9/2018) 108 Where there are disputes between residents or neighbors, try not to get directly involved or show favoritism.

1. Contact the building’s social worker, who may be able to speak with both parties and help them resolve their problems. If there is an Incident Report, give a copy to the social worker.

2. In some cases, the residents may need to be referred to a community mediation service to assist them in resolving their problems with one another. The social worker can help with this also.

3. Document all cases of resident disputes which have caused significant disturbances with an Incident Report (See Appendix F, Form PM-405) and an entry in the building’s log book.

F. Complaints

Residents are free to complain about anything. And management staff should receive and handle complaints with an open mind and positive attitude.

 Complaints should be directed to buildings’ general managers, even if the resident comes to the Property Management Office at 215 Taylor Street, unless it clearly involves a grievance against the general manager and the resident does not feel comfortable directing it initially to him or her.

 Ask that the complaint be placed in writing, using the Complaint Form (See Appendix F, Form PM-409).

 Read the complaint and discuss it with the resident to get a clear understanding of the problem/issue or if more information is necessary.

o If it involves a dispute with another resident, it should be handled as specified in Section E, above.

o If it involves a grievance against a management, maintenance, or tenant services staff person, it should be handled as specified in Section G, below.

o If it is neither a resident dispute nor a grievance, the general manager, working in conjunction with other management and maintenance staff, should try to resolve the problem as expeditiously as possible, and if possible. Keep the resident apprised of what is being done and the outcome.

(1/9/2018) 109 o Document the actions taken to address the complaint and resolution, if there is one, on the Complaint Form.

G. Grievance Procedure

A formal grievance procedure is to be used for resolution of disputes and problems between residents and management. A grievance may also be filed if a resident has lodged a complaint (not involving a dispute with another resident) which s/he feels that management has not taken seriously or adequately tried to resolve.

 This process should not to be used for resolution of disputes between residents. See Section E, above for procedures to handle disputes between residents.

 The grievance process also should not be used to detain or suspend an eviction action by management. The legal unlawful detainer process, itself, will afford the resident being evicted an opportunity for a judicial hearing. Once TNDC decides to file for an unlawful detainer, let the process move forward.

The grievance procedure works as follows:

1. Give the resident a Grievance Form (See Appendix F, Form PM-406) to fill out which states their grievance or unresolved problem in detail.

2. Tell the resident they can return the completed form to the building’s general manager. Or, it may be submitted to the appropriate property supervisor at the Property Management Department at 215 Taylor Street, in the event that the grievance is with the general manager and the resident is not comfortable in submitting it to him or her.

3. It may be necessary for the general manager (or property supervisor) to speak with the resident about the grievance or problem, if more facts are needed and if the resident is willing to speak with the general manager directly about it.

4. Give a copy of the Grievance Form to your building’s social worker and discuss the issue with him or her. It is not the social worker’s role to intercede in this process, but it is helpful that s/he be informed, and may be able to provide some helpful insight to management.

5. The general manager must provide a written response within 3 business days to either resolve the problem or grievance or to explain why he or she can’t resolve it.

6. If the grievance or problem is not resolved to the resident’s satisfaction, inform him or her that they may appeal to the property supervisor for that building.

(1/9/2018) 110 7. Give him or her the property supervisor’s name, address and phone number to schedule an appointment to speak with the property supervisor to make this “first appeal”.

8. The property supervisor shall provide a decision to the resident on the appeal, in writing, within 5 business days.

9. The property supervisor’s decision letter shall inform the resident that if he or she is not satisfied with this appeal decision, s/he may make a final appeal in writing to the director of property management. Provide the director’s name, address and phone number for the resident to make this appeal.

10. If appealed to the director of property management, s/he will gather facts and study the appeal and will then issue a written decision to the resident within 5 business days of receiving the resident’s appeal. The property management director’s decision is final.

(1/9/2018) 111 IX. LEASE ENFORCEMENT AND EVICTION

A. Introduction

1. Responsibilities of Occupancy: Management and residents are bound together by a set of conditions, obligations and responsibilities to one another. Both parties are responsible to carry out their duties under the lease, rules, various lease addenda and other duties imposed by California Landlord-Tenant Law. Management's responsibilities to residents include the provision of decent, safe, sanitary, and affordable housing conditions and to treat residents fairly. Residents' responsibilities include, in addition to the payment of rent, compliance with certain standards of behavior which do not inhibit the management's ability to fulfill its responsibilities and do not adversely affect the well-being of others living in the same development. The Lease (See Appendix F, Form PM-302 and PM303) and House Rules (See Appendix F, Form PM- 306), which are made a part of the lease, comprise a contract between TNDC and residents. While the lease agreement and rules cannot cover every possible situation, they provide residents a clear message of the type of behavior expected of them.

2. Eviction Policy: Technically, an eviction occurs when someone is removed from their dwelling unit by a court order known as a “Writ of Possession” which TNDC gets after filing an “Unlawful Detainer” law suit and getting a judgment from the court in its favor. Sometimes it is necessary for a tenant to be forcefully removed by the San Francisco County Sheriff, if they don’t voluntarily vacate their unit after the legal process has been completed. It is a long, costly and unpleasant process for everyone concerned. It is TNDC’s goal to minimize evictions through:

 Careful resident screening;  Clear communication with residents regarding their responsibilities and expected behavior;  Counseling assistance from building social workers;  Agreements, if and when appropriate, between residents and management regarding behavior or rent payment problems.

However, sometimes it will be necessary to use the legal eviction process when a household refuses to pay rent, or when a resident’s behavior adversely affects the health and safety of others, interferes with other residents quiet enjoyment of their home, interferes with management’s ability to carry out its responsibilities, damages the property, or is involved in illegal activities. In these cases, TNDC will aggressively pursue the legal eviction process to remove the offending resident(s) from the premises as quickly as possible.

(1/9/2018) 112 B. Lease Enforcement

1. Fair, Equal and Consistent Enforcement: Fair housing considerations are no less important in lease enforcement than they are in resident selection. The lease, house rules and lease addenda must be enforced consistently and fairly for all residents. Unfair or selective enforcement can give rise to resident resentments and possibly fair housing complaints or lawsuits.

2. The Role of Communication: Good, clear, non-emotional communication is crucial both in enforcing lease and rules provisions and during the eviction process.

a. Before the provisions in them can be effectively enforced, the management staff must spend the time with new residents to make sure they know of, and understand their responsibilities. Residents can't be expected to comply with something they don't know or understand. It will take much less management time and effort up- front to prevent the lease, rules or lease addenda from being violated-- than to take remedial actions after they are violated.

b. The areas of management's rights/responsibilities and individual residents’ rights and responsibilities are not always distinct or self-evident. This can sometimes lead to misunderstandings or even heated disputes. It is therefore necessary to continually keep lines of communication as open, clear and professional as possible so that minor infractions of rules can be corrected without being blown out of proportion and making residents feel threatened or defensive.

c. The eviction process, by its nature, is an adversarial one. However, avoid all manifestations of anger before and during this process. Actions which might be construed as humiliating, abusive or invasive could potentially give rise to a lawsuit by the tenant and interfere with, or negate, the unlawful detainer action that TNDC has filed against the tenant(s). Until there is a court judgment against the tenant(s) and they have been evicted with a Writ of Possession (enforced, if necessary by the San Francisco County Sheriff’s Department), they have a right to stay in, and use, their unit like any other resident.

1. Avoid all unnecessary one-on-one personal contact during the eviction process, unless it occurs in a structured setting.

2. Keep written communications concise, to the point, neutral as possible.

3. Do not reduce services to the residents or do anything that could be characterized as intimidation or harassment.

3. Resident Responsibilities: Enforceable resident responsibilities under their lease, rules and addenda fall into four broad categories:

(1/9/2018) 113 a. Payment of Rent and Fees: Residents must pay their full rents each month on or before the 5th day of the month. Full security deposits must be paid, as well as any fees associated with the payment of rent such as late fees and Non Sufficient Funds (NSF) fees, if a rent check bounces. b. Lawful and Appropriate Behavior: These responsibilities include not engaging in any acts or threats of bodily injury, violence, theft, or other illegal activities-- including prostitution, and especially drug use, possession and/or sales on or near the leased premises. Residents are expected to respect the rights of their neighbors to the quiet enjoyment of their apartments by keeping noise and music or other types of sounds coming from their units within reasonable limits. Residents also must not interfere with management personnel in the exercise of their responsibilities. c. Sanitation and Appearance: Residents are responsible for keeping their apartments and homes reasonably clean, with perishable food stored in refrigerators, and to dispose of garbage in designated receptacles, preventing vermin infestation. They are also expected to not intentionally damage, vandalize or detract from the appearance of their units, the exterior of their building or its common interior areas. d. Safety: These include responsibilities not to store combustibles or certain other chemical materials which could cause fire and health hazards, and not to possess or discharge firearms or use other weapons. Residents’ units must be kept free of clutter and debris that would pose fire hazards. Residents may not disable smoke detectors or tamper with any part of a project’s fire safety or fire alarm system. Safety provisions also prohibit residents from changing or re-keying locks which would inhibit access to a unit during an emergency.

C. Nonpayment of Rent

The majority of evictions are a result of rent nonpayment problems. Chapter V: Rent Collection (Sections B and C) discusses detailed procedures for handling late rents and payment plans to try to avoid or minimize evictions for nonpayment of rent, if possible. Please refer to that chapter to supplement information provided in this section. (Also, see Exhibit 9-1 at the end of this chapter, which is a flowchart illustrating the steps described in this section, and in Chapter V up to the point of filing for an Unlawful Detainer due to nonpayment of rent.)

1. Rent Payment Policies and Procedures:

a. Rents are due and payable on the first day of each month. However, it is TNDC’s policy to allow a grace period of four additional days to receive rent payments before they are considered late, after which a $20 late fee is charged to the resident. This means that residents have until the end of the 5th day of each month to pay without their rent being considered late and without penalty.

(1/9/2018) 114 b. On the 6th day of the month, or if the 6th falls on a week-end or holiday, the first business day thereafter, serve the resident with a 3-Day Notice to Pay Rent or Quit (See Appendix F, Form PM-500) or a 10-Day Notice to Pay Rent or Quit, which is to be used in the four HUD Projects (See Appendix F, Form PM-505).

c. On the 6th, also notify the property management accounts receivable accountant regarding the names of any tenants who are to be charged late fees.

d. Notify and provide the social worker for your building with a copy of the notice. Also inform the social worker whether the resident has already contacted management and whether management has determined they would be eligible for a Payment Plan (See Appendix F, Form PM-400).

e. If there has been no contact with management by the resident, the social worker will attempt to contact the resident to learn the facts of the situation, and either try to get the residents to pay rent before the end of the 3-day (or 10-day) notice period, try to help them get assistance, determine whether to recommend a payment plan, or—if there is no better option—try to convince the residents that it may be in their best interests to move out rather than have an eviction on their records. The social worker will keep the manager informed throughout the process of working to prevent an unlawful detainer action.

f. If a Payment Plan is used, it will negate the current 3-Day (or 10-day) Notice to Pay Rent or Quit. ( See Chapter V, Section C for details regarding payment plans.) If the residents comply with the agreed-upon dates and terms of their payment plans, the unlawful detainer suit will have been avoided. If the residents do not comply with their payment plans, a new 3-Day (or 10-Day) Notice to Pay Rent or Quit is to be immediately served for the entire balance of rent owed at that point.

g. If a Payment Plan is not used and the residents do not pay their rent by the end of the 3- Day (or 10-Day) Notice period, general managers are to contact TNDC’s eviction attorney to file a “Summons and Complaint”, which commences the unlawful detainer law suit.

2. Caveats for Issuing and Serving Notices: Nonpayment of rents are the easiest unlawful detainer cases for TNDC get a judgment in its favor, as long as all the legal procedures have been followed. Either the residents paid their rent during the notice period, or not. If they didn’t, if the lease is clear, and if all legal procedures were properly followed, courts ultimately have to give owners the right to gain possession of their rental units to rent them to others who will pay their agreed-upon rent. But those are some big “ifs”. It is important that managers involved in the notice issuance and service, and in implementing unlawful detainer process follow the required procedures specified below exactly. Dot every “i” and cross every “t”. Check and double check the documents you create in this process to ensure they are both accurate and complete. Anything less, could cause TNDC to lose the case or have to go through the whole

(1/9/2018) 115 process again.

3. Issuing The 3-day (or 10-day) Notice to Pay Rent or Quit: For the sake of brevity and readability, this and the following section will just refer to the 3-Day Notice to Pay Rent or Quit (See Appendix F, Form PM-500). Managers in HUD buildings should simply substitute the 10-Day Notice to Pay Rent or Quit (See Appendix F, Form PM-505). The procedures relating to the forms are the same, other than the length of the time residents have to comply.

a. 3-Day Notices to Pay Rent or Quit must contain the following information:

1. The names of all adult occupants of the unit.

a. Make sure that all adults named on the lease are named on the notice. b. If you are aware of anyone has been living or regularly staying in the unit who is not listed on the lease, include that person’s name on the notice. c. Check and double check to make sure that you have spelled everyone’s name correctly.

2. The address and unit number where they reside.

 Check and double check that you have the unit number correct and no typos in the address.

3. The total amount of unpaid rent due and the period that it is due for.

 ONLY include the rent amount that is due and payable from the beginning of the first month that rent was not paid to the end of the last month that rent was not paid. Show the full months for which all or part of the rent was not paid.

o Example: If the $400 rent has not been paid for the month of May and you are issuing the notice on May 6th, the amount should be $400 and the dates should start with May 1, 2007 and end with May 31, 2007.

o Example: If a Payment Plan was executed for unpaid May rent of $400 and the resident made a partial payment of $200 on that plan, but then stopped paying and also did not pay the June rent of $400, the amount of unpaid rent shown on a notice issued after June 6th should be $600. The starting date of the period during which there has been unpaid rent should be shown as May 1, 2007 and the ending date should be June 30, 2007.

 DO NOT include on this notice any amounts of late fees, bounced check fees or security deposit amounts that the resident may also owe. You can collect these fees or deposit later by issuing a 3-Day Notice to Perform or Quit (See Appendix F, Form PM-501), after the resident has brought his or her rent current.

(1/9/2018) 116  Check and double check your calculations of unpaid rent to make sure you are showing the correct amount of unpaid rent due.

4. The language on the notice informs the residents that if they do not pay the rent amount stated in the notice, they must move out.

5. A statement informing them that if they do not pay their rent or move-out, TNDC will pursue legal action and declare their lease forfeited.

6. A section informing them to whom the rent is to be paid, where it is to be paid, when it can be paid, and how it is to be paid:

 Check the appropriate boxes and write in the names of people who can accept the rent during the 3-day notice period. The “undersigned” means you, if you’re the one issuing the notice. You should also include the names of one or more other building management staff persons who are authorized to accept rent, so as to make it as easy as possible for the residents to pay within the notice period.

 Write in the address where the rent can be paid and provide the office phone number and indicate when the office is open.

 Indicate how it should be paid (e.g., in person, rather than by mail and by a cashier’s check or money order).

7. Your signature and the date you signed it.

b. After you have checked and double checked the accuracy and completeness of all the information required on the notice, make at least 2 copies. The original will go to the resident to whom the notice is served. A second copy have to be mailed to the resident, if you are unable to do personal service. And the third copy will be the file copy you use for the purpose of doing a Proof of Service discussed in the next section.

4. Serving the Notice: The law is very strict regarding how and when notices are served.

a. Since it is TNDC’s normal practice to give residents the first five days in the month to pay their rent, even though technically rent is late after the first day of the month, don’t serve 3-Day Notices to Pay Rent or Quit before the 6th day of the month. Serving it earlier could give the resident a defense that TNDC was being arbitrary in their case or that it was treating them unfairly or unequally (i.e., a discrimination complaint).

b. The person who signed the notice should be the one who takes charge of serving it, although that is not a legal requirement.

(1/9/2018) 117 c. You can serve a copy of the notice to each adult named on the notice, but it is legally sufficient to serve just one. (If you do serve more than one person named on the form, you will need to do a separate Proof of Service (See Appendix F, Form PM-504) for each person served.)

d. There are three methods of service for a 3-Day Notice to Pay Rent or Quit:

1. Personal Service: This is the best and most direct method.

i. The person served must be an adult, over 18 years of age. ii. If you go to the resident’s unit and s/he refuses to accept it, it is sufficient to drop it and lay it at the person’s feet. iii. If the person first opens the door, but then slams it, you can also slide it under the door, if that is possible.

2. Posting and Mailing: If you can’t find the person at their unit, or possibly where they work, if it is nearby, you may do a “posting and mailing” type service:

i. You must have made at least one unsuccessful attempt to personally serve the resident at his/her unit.

ii. Post the original of the notice to the outside of the resident’s door.

iii.On the same day, place in the mail with first class postage, a copy of the notice to the resident at the unit address.

3. Substituted Service on Another Person: You can never find an adult occupant of the unit to serve in person at the unit, or possibly where they work, you may do a “substituted service”.

i. You must have made at least one unsuccessful attempt to personally serve the resident at his/her unit.

ii. If you know where an occupant of the unit works, try to serve him/her at the place of work.

iii. If both of the above are unsuccessful, you may leave the notice with an adult at an occupant’s workplace.

iv. On the same day, place in the mail with first class postage, a copy of the notice to the resident at the unit address.

5. Filling Out the Proof of Service: The Proof of Service form (See Appendix F, Form PM- 504) is an affidavit indicating when the eviction notice was served, who served it, and how it was

(1/9/2018) 118 served.

a. The person who performed the service must fill out and sign the Proof of Service form each time a notice is served.

b. In the space provided, place the name of the person you served the notice to.

c. In the check boxes on the form, indicate which type of service you performed.

d. Place the date of service. For a “post and mail” or a “substituted” service you must fill in the dates you posted it or gave it to another person and the date on which you mailed it.

e. Sign and date the Proof of Service affidavit in which you are declaring, under penalty of perjury, that the information you have provided regarding the method and date(s) of service is true and correct.

6. The Notice Compliance Period: The notice service date is very important for figuring the period during which the resident may pay their rent under the notice.

a. The 3-Day compliance period starts getting counted on the day after the date the notice was served. (If the notice was posted one day and mailed the next day, the 3-day period wouldn’t begin until the day after it was mailed, or two days after it was posted.)

 Example: If a 3-Day notice was served on the 7th of the month, you would not begin counting the 3-day period until the 8th of the month.

b. If the third day of the notice period falls on a Saturday, Sunday, or Holiday, the resident has until the end of the next normal business day to pay the rent owed. A Summons and Complaint to file an Unlawful Detainer lawsuit cannot be filed until the day after that, if rent wasn’t paid.

 Example: If a 3-Day Notice to Pay Rent or Quit is filed on a Wednesday, you begin counting the 3-day period on Thursday. Since the 3rd day falls on a Saturday, the resident has until the end of the following Monday to pay his or her rent under the notice (assuming that Monday is not a legal holiday). The Unlawful Detainer could not be filed before Tuesday, if the resident still did not pay his or her rent.

c. Once the full compliance period is over, if the resident tries to pay all or any part of the rent after that, do not accept it. If you accept any money at that point, you waive TNDC’s right to evict under the notice. Speak with your property supervisor about it and decide whether to proceed with filing the Unlawful Detainer process, or to accept the rent offered.

(1/9/2018) 119 d. See Section J of this chapter for instructions on how to get a Summons and Compliant filed, if the decision is made to commence the Unlawful Detainer process.

D. Minor and Initial Lease Violations

While all provisions of the lease are important, some are not as serious as others. Violations of the lease or rules that do not threaten health or safety of the resident, other residents or damage the property should be dealt with in a gradual manner. Such violations could include: activity which involves too much noise that deprives other residents of their right to the quiet enjoyment of their homes, nonpayment of late fees or bounced check fees. Managers, with the assistance of social workers, are to make a major effort to work constructively and cooperatively with residents to help them retain their tenancy and at the same time live within their lease and rules provisions. However, if residents refuse to uphold their responsibilities within the lease, rules and lease addenda, begin to issue formal notices and, if necessary, resort to the legal process to either gain compliance or to remove them from the premises.

1. Progressive Efforts to Get Compliance: When there are minor or initial violations of lease provisions:

a. First, management staff is to speak with the resident about the problem in a low-key, supportive manner. Often, a simple friendly conversation is all that is necessary to inform residents that there is a problem and get their cooperation in preventing it from happening again.

b. Indicate the reason for the lease or rules provision and why compliance with it is important.

c. Document the conversation with a typed note or memo to the resident’s file. This documentation must indicate:

 what happened, when it happened and who was involved;

 a brief summary of what was said during this informal counseling session to correct the problem.

d. If the violation still continues after one or two verbal discussions, the manager is to send the resident a Lease Violation Letter (See Appendix F, Form PM-408). This is a formal written communication that should include the following:

 a description of the lease or rules violation;

 a statement of the lease provision of rule;

(1/9/2018) 120  a statement of the date(s) management has previously spoken to the resident about this same kind of violation; and,

 a warning that if the violation does not cease, management may need to resort to legal action which could cause them to lose their tenancy.

e. Give the building’s social worker a copy of the Lease Violation Letter and discuss the problem.

f. The social worker will then try to work with the resident to discuss the problem and try to get compliance with the lease provision or rule in the future.

g. If the problem continues to recur, issue a 3-Day Notice to Perform Covenant or Quit (See Appendix F, Form PM-501). See section below for procedures.

E. 3-Day Notice to Perform Covenant or Quit Procedures

The 3-Day Notice to Perform Covenant or Quit (See Appendix F, Form PM-501) or a 10-Day Notice to Perform Covenant or Quit for HUD buildings (See Appendix F, Form PM-508) is a notice that gives residents an opportunity to cease violations of lease or rules provisions and bring their behavior within the standards expected of residents so that they can remain as residents in TNDC buildings. Speak with your property supervisor regarding the situation, and get his or her approval before serving this type of notice. Also give copies of these notices and communicate the details of the situation to the social worker for your building. The social worker may be able to help getting the resident to either comply or move out during the three-day notice period. . (See also Exhibit 9-3 at the end of this chapter for a flowchart showing the process for correctable lease and rules violations.)

1. Issuing a 3-Day Notice to Perform Covenant or Quit:

a. 3-Day Notices to Perform Covenant or Quit must contain the following information:

1. The names of all adult occupants of the unit, plus the phrase “and all others”.

a. Make sure that all adults named on the lease are named on the notice. b. If you are aware of anyone has been living or regularly staying in the unit who is not listed on the lease, include that person’s name on the notice. c. Check and double check to make sure that you have spelled everyone’s name correctly on the notice.

2. The address and unit number where they reside.

(1/9/2018) 121  Check and double check that you have the unit number correct and no typos in the address.

3. A very specific statement as to which lease/rules provision has been violated and how it was violated by the resident.

 EXAMPLE: You have violated Section 6 of the Dalt Hotel House Rules incorporated into the lease by the Dalt Hotel Lease Paragraph 12, prohibiting unauthorized pets in the following manner: You are keeping a cat in your unit.

 NOTE: Lease violation evictions are difficult to win, if contested in court. Management must have a great deal of indisputable documentation and evidence in the resident’s file. You will need to be able to prove your case that there has been a violation of the lease provisions and also to show that you have previously tried to get compliance with the lease provision without resorting to eviction. Documentation can include:

o Photographs o Eyewitness accounts (written) o Incident reports o Documentation of inspections o Notes to the file regarding verbal attempts to get the resident to cease the lease violation behavior or activity o Letters of lease violation

4. A demand that the residents must comply with the lease provision or vacate the premises.

5. The language on the notice informs the residents that if they do not comply with the lease provision or move-out within the 3-day notice period, TNDC will pursue legal action and declare their lease forfeited.

6. Your signature and the date you signed it.

2. Proof of Service: Follow the same procedures as outlined above in Section C (5) for filling out the Proof of Service Affidavit.

3. Compliance Period: Follow the same procedures as outlined above in Section C (6) for counting the number of days in the compliance period and determining the date you can file for an Unlawful Detainer if there has not been compliance with what has been requested in the notice by the end of the appropriate period.

(1/9/2018) 122 4. Continuing Non-Compliance:

a. If the resident ceases to violate lease/rules provisions and complies with what is being requested by the notice, the process is ended.

b. If there is still non-compliance after the end of the notice period, speak with your property supervisor about it and decide whether to proceed with filing the Unlawful Detainer process.

c. If the decision is made to proceed with an Unlawful Detainer legal action, see Section J of this chapter for instructions on how to get a Summons and Compliant filed, if the decision is made to commence the Unlawful Detainer process.

5. Non-Acceptance of Rent: Once a 3-Day Notice to Perform Covenant or Quit is served, do not accept rent. For that reason, it often makes sense to serve the notice immediately after a resident has paid their rent for the month.

a. If the resident has complied with the notice during the 3 day period, it is permissible to accept rent after that because the violation stated in the notice has been “cured”.

b. If the resident has not complied with the notice by the end of the 3 day period, and TNDC is going to file an unlawful detainer lawsuit, do not accept any more rent. Doing so, would invalidate the eviction action.

F. Serious Lease Violations

More serious violations of the lease and rules must be dealt with more formally and swiftly right from the start. There are various types of lease violations that would fall into this category. Some of these serious violations are correctable, while others are not. Following are several examples:

1. Non-Compliance with Recertification Requirements: Sometimes residents refuse to respond to requests for providing information to recertify their incomes, household size and full- time student status annually. . (See also Exhibit 9-2 at the end of this chapter for a flowchart showing the process for non-cooperation with annual recertifications.)

a. Formal written notifications and letters indicating non-compliance should be done from the start.

b. Because of the time sensitive nature of this problem, after initial attempts to gain cooperation have failed, a 3-Day Notice to Perform Covenant or Quit (See Appendix F, Form PM-501) should be issued not later than 60 days from the

(1/9/2018) 123 recertification deadline date, after communicating with and getting your property supervisors approval.

c. See Chapter VI: Recertifications, Section B and the flowchart included at the end of this chapter as Exhibit 9-2 for descriptions of the compliance enforcement process. Also refer to Section E in this chapter for procedures for issuing a 3-Day Notice to Perform Covenant or Quit.

2. Hazardous Housekeeping Violations: Poor housekeeping and “hoarding and cluttering behavior”—to the extent that it creates vermin infestation problems and/or creates fire hazards in that unit and for surrounding units—is a serious violation of the lease.

a. Formal written notifications and letters indicating non-compliance should be done from the start. In each written communication about the housekeeping and unit condition be specific about:

i. the condition; ii. the hazards it is creating (e.g., pest infestation, fire hazard); iii. what must be done to clean up and remove the hazards; iv. the date you will reinspect the unit.

b. Document the unit condition with digital photographs, if possible.

c. Alert the building’s social worker about the problem and enlist the social worker’s help to work with the client to comply.

d. Do follow-up inspections when you say they will be done. Continue to provide written communication feedback, but also speak with the residents to see if they would be amenable to some options like help from building custodial staff to dispose of items and sanitize the unit. Document these offers of assistance. Charge for them, if appropriate.

e. If the health hazard condition of the unit is serious and repeated attempts to get cooperation and compliance are still unsuccessful, request an inspection by the San Francisco Department of Public Health. Place documentation of that inspection’s findings in the file.

f. After numerous attempts to gain cooperation and compliance have failed and a lot of documentation about those attempts and the hazardous condition of the unit is in the file, issue a 3-Day Notice to Perform Covenant or Quit (See Appendix F, Form PM-501) or a 10-Day Notice to Perform Covenant or Quit in HUD buildings (See Appendix F, Form PM-508) after discussing the situation with your property supervisor and getting his or her approval.

(1/9/2018) 124 g. See also Chapter VIII: Maintenance and Inspections, Section G (4) regarding procedures for handling pest infestation problems and the flowchart included at the end of this chapter as Exhibit 9-3 for descriptions of the compliance enforcement process. Also refer to Section E in this chapter for procedures on how to issue a 3- Day Notice to Perform Covenant or Quit.

3. Assaults, Thefts, Property Damage and Illegal Activities: Some types of violations of the lease and breaches of civil behavior so serious that they are not correctable. In these cases, an unconditional notice to vacate must be issued so that the residents will be removed from the property as quickly as possible by issuing a 3-Day Notice to Quit (See Appendix F, Form PM- 502). These include, but are not limited to, the following types of violations that affect health and safety of others and the integrity of the premises:

 criminal activity on or near the premises, including:

o the use, sale or manufacture of illegal drugs;

o prostitution;

 assaults on other residents or building staff;

 theft;

 arson;

 intentional and substantial property damage.

a. Site Managers must have clear documentation of these violations before proceeding with any 3-day unconditional notices to vacate. Documentation includes:

1. photographs or recordings from security video cameras; 2. police reports to document illegal activity; 3. records of arrests and convictions; 4. written statements by persons directly affected who are willing to serve as witnesses, if necessary; 5. previous warnings or lease violation documentation; 6. inspection records; 7. incident reports.

b. For any problem or incident which involves injury to a resident or management person, theft or damage to a TNDC property, the management staff are to fill out an Incident Report (See Appendix F, Form PM-405). This report includes the following information:

1. The exact location where the incident took place;

(1/9/2018) 125 2. The date and time of the incident; 3. The names of all persons involved and witnesses; 4. A detailed description of the incident; 5. If police, paramedics or firefighters were called to the premises, their badge numbers and police or other) report number; 6. The disposition of the incident, or what action has been taken to deal with the incident or solve the problem.

c. Site management staff is to meet with the building’s property supervisor to discuss the problem, evidence and documentation in the resident’s file to support the case. Assuming this situation meets criteria warranting immediate eviction and the property supervisor approves, issue a 3-Day Notice to Quit (See Appendix F, Form PM-502).

G. 3-Day Notice to Quit Procedures

If this notice is used, the situation poses the most serious hazards, nuisances, and threats to the safety and well-being of the residents, staff and property. It is vitally important that each step in this process be followed carefully and errors not made to ensure that the residents will be removed from the building as quickly as possible. See also Exhibit 9-4 at the end of this chapter for a flowchart description the process involved with non- correctable lease and rules violations leading to eviction.

1. Issuing the 3-Day Notice to Quit:

a. 3-Day Notices to Quit must contain the following information:

1. The names of all adult occupants of the unit.

a. Make sure that all adults named on the lease are named on the notice. b. If you are aware of anyone has been living or regularly staying in the unit who is not listed on the lease, include that person’s name on the notice. c. Check and double check to make sure that you have spelled everyone’s name correctly on the notice.

2. The address and unit number where they reside.

a. Check and double check that you have the unit number correct and no typos in the address.

3. A very specific statement as to which lease/rules provision has been violated and how it was violated by the resident.

 EXAMPLE: You have violated Section 10 of the Dalt Hotel Lease, and Section 18 of the Dalt Hotel House Rules incorporated into the Lease by the

(1/9/2018) 126 Dalt Hotel Lease Paragraph 12, prohibiting the possession, sale, distribution or use of illegal drugs in the following manner: On April 12, 2007 you sold cocaine on the property.

4. The language of the notice includes a demand that the residents must vacate the premises within 3 days.

5. The language on the notice informs the residents that their lease is forfeited and if they do not move-out within the 3-day notice period, TNDC will take legal action to remove them from the property.

6. Your signature and the date you signed it.

2. Proof of Service: Follow the same procedures as outlined above in Section C (5) for filling out the Proof of Service Affidavit.

3. Provide Information and Copy of Notice to Social Worker: Even though a 3-Day Notice to Quit is an unconditional demand that residents vacate their unit for which no corrective action can be taken, management should still provide a copy of this notice to the building’s social worker. The social worker will try to contact and work with the residents to get them to move out so that they will not have an eviction on their record, which will make it more difficult to obtain decent rental housing in the future.

4. Compliance Period: Follow the same procedures as outlined above in Section C (6) for counting the number of days in the compliance period and determining when the first date you can file for an Unlawful Detainer lawsuit if the residents have not vacated their unit by the end of the appropriate period.

5. Non-Compliance With the Notice to Vacate:

a. If the residents have not vacated their unit, proceed with an Unlawful Detainer legal action. See Section J of this chapter for instructions on how to get a Summons and Compliant filed, if the decision is made to commence the Unlawful Detainer process.

6. Non-Acceptance of Rent: Once a 3-Day Notice to Quit is served, do not accept rent. For that reason, it often makes sense to serve the notice immediately after a resident has paid their rent for the month. Doing so, would invalidate the eviction action.

(1/9/2018) 127 H. 30- and 60-Day Notices to Vacate (For Cause)

Although TNDC’s buildings are not subject to the City of San Francisco’s Rent Stabilization and Arbitration Ordinance, all of its buildings have subsidies from sources which require “good cause” for eviction. There may be some situations where there is cause to require a resident to vacate their unit, but for which a 3-day Notice to Quit would not be appropriate. 30-day and 60-day Notices (For Cause) can be used in these cases. Following are examples of such situations:

1. Full-Time Student Status Non-Compliance:

a. If a household living in a tax credit project was originally eligible, but upon recertification it is found they are currently ineligible or would become ineligible because the household is comprised of (or will be) entirely of full-time students and does not meet any of the statutory exemptions.

b. Tax credit program rules require that the household be required to move from the project.

c. If the household has lived in the building for less than one year, a 30-Day Notice of Termination of Tenancy (For Cause) (See Appendix F, Form PM-503) may be issued.

d. If the household has lived in the building for one year or longer, issue a 60-Day Notice of Termination of Tenancy (For Cause) (See Appendix F, Form PM-506).

2. Unit Occupancy Standards Not Met:

a. If a household’s composition has significantly changed, it may no longer meet the occupancy standards for the unit size it was initially deemed eligible to occupy. In such cases, TNDC will endeavor to make available an alternative appropriate size unit in the same building or another building, if the household wishes to apply for it. However, it must give the family notice to vacate the unit they are over- or under-occupying. This should give the household incentive to accept an offer of an alternative unit of appropriate size.

b. If the household has lived in the building for less than one year, issue a 30-Day Notice of Termination of Tenancy (For Cause) (See Appendix F, Form PM-503).

c. If the household has lived in the building for one year or longer, issue a 60-Day Notice of Termination of Tenancy (For Cause) (See Appendix F, Form PM-506).

3. Procedures for Issuing 30 and 60-Day Notices to Terminate Tenancy: Follow the procedures as detailed in the preceding Section G for issuing a 30- or 60-Day Notice, doing a proof of service affidavit, and counting the compliance period. If the residents do not move

(1/9/2018) 128 out voluntarily by the end of the 30 or 60-day period, follow the procedures described in Section J, below for filing an Unlawful Detainer action.

I. 90-Day Notice of Termination of Tenancy (Subsidized Tenancies)

a. This notice is used for residents with Section 8 subsidies or in HUD buildings whose subsidies are being terminated for one reason or another, or who meet one of the conditions noted in Section H, above.

b. Residents are expected to pay their tenant-rent during the notice period.

c. If a residents receiving a Section 8 subsidy in a non-HUD building do not pay their rent or violate their leases, they may be served with a 3-Day Notice to Pay Rent or Quit, 3- Day Notice to Perform Covenant or Quit, or 3-Day Notice to Quit depending on what is warranted by their lease non-compliance.

d. Follow the procedures as detailed in Section G, above, for issuing a 90-Day Notice, doing a proof of service affidavit, and counting the compliance period. If the residents do not move out voluntarily by the end of the 30 or 60-day period, follow the procedures described in Section J, below, for filing an Unlawful Detainer action.

J. The Unlawful Detainer Process

Once an eviction notice period has expired and either the requested response has not been complied with or the resident has not moved out, the language in the all of the notices described above indicates that the residents’ lease has been forfeited and TNDC has the right to file a lawsuit to remove them from the premises. TNDC has an attorney who files Unlawful Detainer lawsuits and who is adept at handling all of the details in the unlawful detainer and eviction process. As the manager who filed and served the notice, you still have an important role in the process

a. Once the legal notice period has expired for each notice you issue to residents, discuss the situation with your property supervisor. If the decision is made to file for an Unlawful Detainer and eviction, you will need to send or fax the following to the eviction attorney:

1. A copy of the eviction notice and proof of service 2. A copy of the lease 3. A copy of the rules or lease addenda, if they have been violated and are relevant to the eviction lawsuit 4. A copy of any other relevant information

(1/9/2018) 129 b. Before sending these things, double check that everything is accurate and complete. The attorney’s office will be relying on using the information on the Notice and Proof of Service to file the Summons and Complaint documents which initiate the Unlawful Detainer process. If anything is inaccurate, it could hurt or negate the lawsuit.

c. In embarking on the Unlawful Detainer process, keep this in mind: Once TNDC has decided to file the lawsuit, it is time to play hardball (in the professional sense of that term) and win the game. “Winning” means getting back possession of TNDC’s unit so that it can be re-rented to a responsible tenant, or getting full financial satisfaction mandated by a court settlement. Up to the point of filing for an Unlawful Detainer, TNDC has done its best through management communication and through support provided to the resident by Tenant Services Department staff to prevent an eviction from going on the tenant’s record, if at all possible. Following the filing of the Unlawful Detainer lawsuit, however, TNDC must focus on, and make decisions which foster its own corporate interests and the interests of other tenants in the subject building.

1. Filing and Serving the Summons and Complaint:

a. A Summons and Complaint will be filed in Superior Court by the eviction attorney. The “summons” informs your tenant that they are being sued by TNDC. The “complaint” provides the details and facts about why they are being sued.

b. A process server will then serve the Summons and Complaint documents on the residents.

c. If the residents can be served directly and “personally” by the process server, they will have 5 days to file an “answer” which is a written response that indicates they request a hearing on the case. If they can’t be served personally, an alternate form of service will need to be performed, which will add time to the process and give the residents 15 days from the date of service to answer and request a court hearing on the case, if they want one.

2. Getting a Default Judgment:

a. If the tenant does not respond within the 5 or 15 day period, the tenant has “defaulted” and TNDC is entitled to obtain a “default judgment” from the court clerk to get possession of the unit. The attorney’s office will then file the following documents at the court:

1. Request for Entry of Default 2. Clerk’s Judgment for Possession 3. Writ of Possession

(1/9/2018) 130 b. Once all of these forms are filed and fees paid, the clerk will return the approved, stamped Writ of Possession to the Attorney’s office.

c. The attorney’s office will then take the Writ of Possession to the San Francisco Sheriff’s office, pay a fee, and provide instructions to evict the tenants you have the Writ for.

d. The Sheriff’s office will then communicate both with the resident and attorney and give them a date normally five days hence that the Sheriff will come to their unit and throw them out, and lock them out, if they haven’t left by then.

e. Normally, that date is a bluff and they don’t really come on that date.

1. It is your job to check to see if the tenant has vacated the unit on or before that date. 2. If they have vacated the unit, communicate that to the attorney. 3. If they have not yet vacated the unit, communicate that to the attorney, who will then call the Sheriff’s office and request that they show up to physically evict the tenants.

f. The attorney should then call you with the date and time when personnel from the Sheriff’s office will really be there to lock the tenant(s) out. Be sure to be there at that time and have a maintenance person with you to immediately change the lock on the unit, once the tenant is physically evicted.

g. If TNDC wants to collect unpaid rents, it must instruct the eviction attorney to go back to- the court and file for a second “money” judgment (which is separate and different from the judgment for possession described above).

h. Once the money judgment is granted by the court, it can be turned over to TNDC’s collection agency to try to collect it, and the information can be provided to credit reporting agencies so that the judgment will show up on the resident’s future credit checks. See Chapter XII: Financial Management, Section XX for procedures to initiate collections of unpaid obligations.

3. Contested Evictions: Unfortunately, the default judgment process described above occurs only in a minority of TNDC Unlawful Detainer cases. The majority of persons served with Summons and Complaints do file answers which request court hearings. They ordinarily don’t win the cases, but this buys them more time to live rent-free in TNDC’s unit, and gives them some bargaining leverage in the settlement process.

a. When the resident has requested a hearing, the attorney will inform you of a Thursday “Settlement Conference” date at the court.

(1/9/2018) 131 1. Both the manager who issued and served the notice and the building’s property supervisor should attend this.

2. This is a “lets make a deal” session which the court encourages so that they have to hear as few cases as possible and so that tenants can get as many concessions as possible.

3. If it is in TNDC’s and the building’s best interest to enter into a “stipulated agreement” and avoid a hearing, then do so. If not, don’t. Make sure you review each case with your property supervisor prior to attending the settlement conference in order to discuss options and decide ahead of time what would and would not be acceptable.

a. Sometimes stipulated agreements just involve giving the tenant a few more rent- free weeks and not asking for back unpaid rent. These may be wise, because in most cases TNDC won’t be able to recover unpaid rent and other costs it has expended for the eviction, anyway, beyond what it can get from retaining the security deposit.

b. Other times, stipulated agreements may involve “pay and stay” plans.

i. Be very careful in agreeing to these.

ii. If it is a nonpayment of rent eviction, at this point the tenant probably owes at least 3 months of back rent, plus eviction costs. It is very difficult for most tenants to pay their rent on time going forward and also pay TNDC back this accumulated amount.

iii. If a payment plan has already been tried in this instance with the tenant and s/he did not honor it, the odds are they won’t make good on a long- term “pay and stay” agreement either.

iv. Although courts like to see settlements like this so that low income people won’t be made homeless, if you have solid evidence that TNDC has gone down the payment plan road recently with this tenant and it didn’t work, then you don’t necessarily have to agree to it in order to get a judgment in your favor.

c. Stipulated agreements are basically agreements which give TNDC possession of the unit under certain conditions. If a “pay and stay” agreement is agreed to, but not complied with by the resident, TNDC can contact its attorney to return to the court to immediately file for a Writ of Possession and schedule a lock out by the Sheriff’s office.

4. If there is no stipulated agreement at the Thursday “Settlement Hearing”, you can present your case before a Judge Pro Tem at a Monday court hearing. If you have

(1/9/2018) 132 done all of the procedural steps correctly and have all the necessary documentation in the tenant’s file, your odds of winning the case and getting a judgment in TNDC’s favor are very high.

5. Although defendants in Unlawful Detainer cases, can request jury trials, most don’t. If a trial is requested, it buys the tenant even more time, and adds a great deal more expense to the process, but it is still very likely that TNDC will win.

6. Once TNDC gets a judgment in its favor, either through a stipulated agreement, court hearing, or trial processes, the process for finally evicting the tenant will work according to the steps outlined in Section J (2) (b-h), above, for Default Judgments.

K. Lease Enforcement & Unlawful Detainer Process Flowcharts

The following pages contain flow charts for the following lease enforcement and unlawful detainer processes:

 Exhibit 9-1: Rent Non-payment Process  Exhibit 9-2: Recertification Non-compliance Process  Exhibit 9-3: Correctable Lease and Rules Violations  Exhibit 9-4: Non-correctable Lease and Rules Violations  Exhibit 9-5: The Unlawful Detainer and Evictions Process

(1/9/2018) 133 Exhibit 9-1 Rent Nonpayment Process

Resident's rent not paid by 5th of month

Manager NOTE: In HUD buildings, issues 3-Day Pay the Notice period is or Quit Notice to 10-Days Mgr does a Proof of Resident Service Affidavit

Mgr & Res Resident contacts Yes Pmt. Plan Yes do a Mgr? appropriate? Payment Plan

No No

Pmt Plan Mgr informs SW secures Yes Problem Yes successfully Social Worker $ assistance Resolved! paid for rent? off?

SW contacts No Resident No

Mgr issues a new 3-Day Pay or Quit Notice Res pays Yes rent w/in 3 days?

No

Resident Yes moves out?

No

File an Unlawful Detainer (See Exhibit 9-5 Flowchart)

(1/9/2018) 134 Exhibit 9-2 Mgr Sends Recertification 1st Recert Letter to Resident at Non-Cooperation 120 days prior to Due Date

Resident responds No cooperatively by Problem! providing Yes recert info?

No

Mgr informs Social Worker Send resident 2nd recertification letter of the problem by 90-days prior point

SW contacts resident Resident to get cooperation responds Yes Problem cooperatively by resolved! providing recert info?

No

In HUD Bldgs Mgr. Issues 60-Day Notice of Rent Increase at 75-day prior point

No

Mgr. issues a 3-Day or 10-Day Perform Covenant Mgr informs SW of Notice or Quit Notice at 60-day prior point

SW continues to seek resident cooperation Resident provides recert Yes info or moves-out w/in 3 NOTE: In HUD buildings, or 10 days? the Notice period is 10-Days No

File an Unlawful Detainer (See Exhibit 9-5 Flowchart)

Resident Moves-Out?

Yes

End

(1/9/2018) 135 Exhibit 9-3 Mgr speaks to Correctable Lease & resident Rules Violations about violation & documents conversation

Resident responds No Yes cooperatively by Problem! stopping violation

No

Mgr sends resident a Lease-Rules Violation Letter

Mgr informs Social Worker of the problem

SW contacts resident

Resident responds cooperatively by Problem stopping Yes resolved! violation?

No Mgr issues a Mgr does a Proof of 3-Day Perform Covenant Service Affidavit or Quit Notice to Resident

Note: In HUD Buildings Mgr gives social worker the Notice is 10 Days copy of Notice

SW continues to seek resident cooperation

Resident Yes complies within 3 days?

No

Resident Yes End Moves-Out?

No

File an Unlawful Detainer (See Exhibit 9-5 Flowchart)

(1/9/2018) 136 Exhibit 9-4 Non-Correctable Lease & Rules Violations

Resident Commits a Non-Correctable Violations Include: Very Serious Violation Assault, Battery, Theft, of Lease or Rules Intentional Property Damage, That is Illegal Acts Non-Correctable

Manager Assembles Necessary Documentation & Evidence of Violation to Win an Eviction in a Court Case

Manager Issues Resident a 3-Day or 10-Day Notice to Quit NOTE: In HUD buildings, the Notice period is 10-Days Mgr gives copy of Notice to Social Worker

Social Worker encourages Resident to move-out & avoid an eviction

Resident Moves-Out Yes Problem by End of Solved Notice Period?

No

File an Unlawful Detainer (See Exhibit 9-5 Flowchart)

(1/9/2018) 137 Exhibit 9-5 The Unlawful Detainer & Manager sends Required docs include: required docs to Notice, Proof of Service, Eviction Process Eviction Attorney Lease & Rules, Other Relevant Information

Attorney files a Summons & Compliant

Summons & Complaint served on resident by a process server

Resident files an "answer" to Summons No TNDC entitled to obtain & Complaint a Default Judgment within the 5-15 day answer period?

Yes Attorney files for & obtains: 1. Request for Entry of Default 2. Clerk's Judgment for Possession Resident shows up TNDC entitled to 3. Writ of Possession No to a Tuesday obtain a Settlement Conference? Judgment/Writ Attorney files Writ of Possession with SF Sheriff's office to set-up Yes an eviction date

Stipulated Res can Yes No Agreement stay with Sheriff's Office gives resident & reached? conditions? attorney an initial eviction date, which is communicated Yes to the relevant TNDC manager Res complies No with Yes Resident moves-out conditions? End by initial date? Monday court Yes with judge No pro-tem End Sheriff's Office notified. Gives resident & attorney a new actual lock-out eviction date, which is communicated Resident to the relevant TNDC manager Jury trial Yes requests occurs jury trial? Resident moves-out No End Yes by actual lock-out date? TNDC No Yes End wins case No at hearing? Sheriff Deputies forcibly evict TNDC wins resident from unit No case at jury trial?

Yes TNDC gets possession of its unit back & changes entry lock

(1/9/2018) 138 X. MOVE-OUTS

A. Introduction

There are two broad categories of move-outs from rental housing: voluntary and involuntary. About half of TNDC’s voluntary move-outs are planned and provide a 30-day notice as required by their lease. Others leave without providing much notice, and some simply “skip” or abandon their units without providing any notification at all to management. Involuntary move-outs involve evictions, the procedures for which are covered in the preceding Chapter IX: Lease Enforcement & Evictions. Resident deaths can also be included in the category of “involuntary” move outs. This chapter covers procedures involving “possession issues” of both real property and personal property in the process of enabling TNDC to get its vacated units re-rented as expeditiously as possible. Handling move-outs can involve a lot of complex legal requirements. All move-outs will involve the following five basic tasks and many also include the sixth:

1. Inspecting units. 2. Securing the units and their contents. 3. Preparation of the units for re-renting. 4. Return or retention of former residents’ security deposits. 5. Removal or modification of the former resident(s) from the current resident database and in the organization’s accounting software. 6. Inventorying, storing and release/disposal of personal property not otherwise removed by the former resident(s).

B. Move-Out Inspections

There are always at least two inspections in connection with move-outs: one to figure out and document what needs to be done to prepare the unit for re-occupancy and another to inspect the work and sign off on the unit as being ready for that new occupancy. See Chapter VII: Maintenance, Sections H(1) and H(2) for detailed information on the procedures for conducting and documenting inspections in connection with move-outs.

1. Pre-Move-Out Inspections: For planned vacancies where notice is given, there should be at least one more inspection—a pre-move-out inspection not less than 15 days from the scheduled vacate date. Ideally, this inspection will be conducted by the same staff person who will also conduct the inspection when the resident actually moves out.

a. This inspection will give the current occupant an idea of what if anything may be deducted from the resident’s security deposit and giving residents the opportunity to minimize those deductions by doing certain work and cleaning, themselves, as mandated by state law.

(1/9/2018) 139 b. The second benefit of the pre-move-out inspection is to allow management and maintenance staff to plan and schedule the unit turnover maintenance work, and purchase the necessary supplies well ahead of time so that the work can get done quickly once the resident moves out.

1. Fill out a Vacant Unit Preparation Schedule (See Appendix F, Form PM-703) indicating who on staff, or perhaps what vendor, certain tasks will be assigned to. This is essentially a check list for managers to plan and monitor the vacant unit preparation work which can be filled in with contact and completion dates for various tasks as they happen.

2. Move-out Inspection: This inspection is best conducted after the residents have moved out their belongings, but before they have turned in their key so that you can do the move-out inspection in their presence.

a. Use the same Move-in/Move-out Inspection Form (See Appendix F, Form PM-700) that management used when the residents moved-in so that the original condition of the unit will be evident and they will not be unfairly charged for damages they’re not responsible for. Assess whether there is any damage that would exceed “normal wear and tear”, taking into account the length of time the residents lived in the unit.

1. If there are damages that exceed normal wear and tear or extraordinary cleaning and redecorating called for, inform the residents of that and let them know that there will be a charge.

2. Do not try to give them the specific amount at this time, because you don’t know what the actual costs of any relevant repairs and extraordinary cleaning will be.

3. Let them know that the specific deduction from their security deposit will be known once the repair, cleaning, redecorating or replacement work is completed or bids and estimates received.

4. Inform the residents that they will receive a Itemized Disposition of Security Deposit form (See Appendix F, Form PM-600) which shows security deposit amounts deducted and the amount that will be returned to them; they will receive a check for the portion of their security deposit they are entitled to get back shortly thereafter.

C. Turning the Unit

1. Secure the Unit and Its Contents:

(1/9/2018) 140 a. Since former residents may have retained extra keys to their unit, the dead bolt lock drum should be switched with another one from a small supply of extra locks maintained by the building for this purpose. The spare keys to that unit in the building’s key box must also be switched and coded accordingly.

b. If there is no personal property of any value left behind by the former residents, whatever is there can be disposed of.

c. However, if there is personal property of any value left behind in a unit that was voluntarily vacated, abandoned, or where a former resident was evicted or deceased, then you must do the following:

1. Inventory the property. 2. Bag it. 3. Tag it. 4. Store it in a safe place.

d. See Section G, below, for detailed instructions on how to handle abandoned personal property.

2. Do the Unit Turnover Maintenance:

a. Once personal property has been removed, proceed with the planned unit turnover maintenance which you have indicated on the Vacant Unit Preparation Schedule (See Appendix F, Form PM-703).

b. Keep track of costs for each part of that plan on the work order or work orders, if multiple ones are necessary.

3. Do a Quality Control Inspection After Work is Completed:

a. Inspect the cleaning, repair and/or replacement work to ensure that the unit is in A-1 condition for renting to a new resident.

b. Don’t sign off on the unit until it meets the highest standards possible.

c. Get a full accounting of the costs to make the unit ready, and determine what portion of those costs, if any, should be charged against the former resident’s security deposit.

D. Return or Withhold of Security Deposit

1. Notify Accounting of the Move-Out and Security Deposit Deductions:

(1/9/2018) 141 a. Within 3 days of the date a resident moves out, in most cases you will be able to determine the amount of charges there will be for resident-caused damages beyond normal wear and tear, if any.

1. Use the Preliminary Statement of Account form (See Appendix F, Form PM-604) to inform accounting of extraordinary maintenance and other charges such as unpaid rent, rent due based on move-out notice date, and/or unpaid fees.

2. Total all of the deductions and subtract them from the amount of the security deposit originally paid by the residents.

a. If the result is a positive figure, it will be the amount of security deposit refund due the residents.

b. If it is zero or a negative figure, the resident will not receive any refund, and a collection from the residents may be warranted .

3. The Preliminary Statement of Account form is the means by which Accounting learns of move-outs. It therefore must be processed and sent to the Rent Roll administrator within 3 business days of the resident vacating their unit.

4. It is imperative that move-outs are given to the Rent Roll administrator within the same month that the resident vacates their unit so that appropriate changes can be made to the resident’s ledger in the property management software.

5. Do not hold onto a Preliminary Statement of Account, even if damage and cleaning charges have not yet been determined. Process the move-out and submit a second Preliminary Statement of Account after the charges have been determined.

2. Notify Former Residents of Amount of Security Deposit To Be Returned:

a. Although the legal requirement is that this residents be informed of the disposition of their security deposit within 21 days, it is TNDC’s policy to send a copy of this form to residents as soon as possible.

b. Use the Itemized Disposition of Security Deposit (See Appendix F, Form PM-600) form with the same deductions as you calculated in the Preliminary Statement of Account (See Appendix F, Form PM-604), a copy of which has already been given to Accounting, if those charges are final.

c. If you are not sure of the final charges yet, hold off sending the Itemized Disposition of Security Deposit, until the costs are known and you’ve sent a “second” Preliminary

(1/9/2018) 142 Statement of Account with those costs and deduction.

d. The important thing is the figures on the two forms must agree, because Accounting will cut a check from its form, and there would obviously be confusion and problems if residents were to get back a deposit amount that is different from the amount stated in the Itemized Disposition of Security Deposit form they received in advance of the check.

e. After the check to return the deposit is cut, the Rent Roll administrator will contact the general manager who will come to Accounting to pick up and sign for the check.

f. Send the check to the same address Disposition of Security Deposit form was sent to, (unless the residents have contacted you with a new address during the intervening period).

g. In the event that there is a balance due from residents, the Disposition of Security Deposit form will request that they send it to TNDC. If they do not send what they owe, which is likely, discuss the matter with your property supervisor. If the amount due is substantial, send the required documentation to the Property Management Department administrative assistant so that it can be forwarded to TNDC’s collection agency for collection. For a variety of reasons, only balances due in excess of $100 will be referred for collection. See Chapter XII: Financial Management for detailed instructions regarding what documentation to provide if an account is to be processed for collection.

E. Notification of Property Management and Compliance of Move-Outs

In addition to notifying Accounting of the move-out in the manner specified above, on the day of move-out make an entry into your Weekly Report form, and update the entry for that unit in your building’s PSR when the move-out occurs. Property management supervisors will then be informed of the move-outs upon getting the Friday Reports, and the Compliance division will be informed upon getting the updated PSR for your building at the end of the month.

F. Unit Abandonment

1. Procedure to Determine if a Unit Has Been Abandoned: If the Site Manager has not seen a certain resident or all residents of a particular household for which the rent has not been paid, the unit may have been abandoned or something may have happened to the resident.

a. If rent hasn’t been paid by the end of the fifth day of the month, serve a 3-Day Notice to Pay Rent or Quit (See Appendix F, Form PM-500).

(1/9/2018) 143 b. If the rent still has not been paid by the end of the 3-day notice period and the sole resident has not tried to make contact or been seen around the building, on the day following the end of the period, conduct a Wellness Check for the unit by knocking on the door repeatedly and shouting “Wellness Check” before opening the door. Since this is an emergency check to make sure the residents have not died in their unit, this inspection may be done without giving a normal 24-hour written notice.

c. If no one has died in the unit and the resident’s significant personal belongings are gone (furnishings, clothing, etc.), it may be reasonable to conclude they have left and abandoned the unit. However, in any case follow the procedures for posting and mailing a Notice of Belief of Unit Abandonment, in the next section.

2. Post and Send a Notice of Belief of Abandonment:

a. If the resident still has not been seen on the property by the 15th of the month, post and mail a Notice of Belief of Unit Abandonment (See Appendix F, Form# PM-602). This Notice gives the resident a specific date that is 18 days (from the date of mailing) to respond stating his/her intent to not abandon the unit and to provide an address where an Unlawful Detainer Summons and Complaint for unpaid rent may be served on them.

1. Mail a copy of the notice to the resident’s address in your building.

2. In addition mail a copy of the notice to the residents at their workplace address and/or any relative’s address(es) you may have on an application or Emergency Notification form. (If you do this, mark the envelope “Personal and Confidential”.)

3. Also place a copy in the resident’s file.

b. If the resident does not reply or provide this requested information to management within 18 days following the date mailing of the notice, management may take possession of the apartment unit and prepare it for re-renting, as described in Chapter VII: Maintenance, Section H, and in this chapter, as described in Sections B through E and G.

G. Abandoned Personal Property

California state tenant-landlord law requires that rental property owners and managers follow certain procedures regarding notice and disposal/sale of personal property of value that a resident leaves in his/her unit after it has been vacated voluntarily, abandoned, or after an evicted tenant has been locked out by the County Sheriff. If personal property has been abandoned, managers are to take the following steps:

(1/9/2018) 144 1. Inventorying, Bagging and Tagging Items of Value:

a. First, determine whether personal property of value has been abandoned. If something is obviously trash or cannot be used, it may be disposed of in the process of cleaning out an apartment for re-renting it. However, normal furnishings, resident-owned appliances, items of clothing, books, cooking utensils, jewelry, toiletries, etc. are to be considered "abandoned property" of value. Deal with them according to the following procedures:

1. If the former residents are reachable, before management has to pack out and store their personal belongings, attempt to informally contact them to remove the property themselves or to authorize (in writing) management to dispose of it. This may save management a great deal of time and effort.

2. If the approach noted in the above step is not possible or unsuccessful, maintenance staff, with the assistance of management staff, if necessary, must inventory and evaluate the personal property left behind while packing out the unit to prepare it for a new resident. (If it is possible to take digital photographs of the property left behind before packing it out, it will be helpful do so.)

3. To document it, use the Inventory of Abandoned Property form (See Appendix F, Form PM-603). This inventory involves two types of information items:

a. Specific identification of major types of items (e.g. "13 inch Toshiba Color TV, York Combination Tape/CD Player, General Electric 10 Inch Florescent Tube Desk Lamp, Framed Print, Panasonic Rice Cooker," etc.). If any of these items are too big to be placed in a large plastic bag or boxes, such as a TV or bookshelf, place a tag on the item and write the resident's name and the date of this inventory and pack-out.

b. Generic identification of other types of smaller, lesser value items which you would pack up in a plastic bag or box (e.g. "miscellaneous men's clothing, paperback books, assorted toiletries, kitchen and eating utensils, etc.)

4. Each bag, box or item is to be tagged and numbered and its approximate value given. The tag should give the tenant's name, unit packed out of, the date you are doing the inventory/pack-out, and an identification of the items and their approximate value.

5. The assessment of “value” is to be done by the by the general manager or lead maintenance person using his or her best judgment for what all items inventoried could sell for at a yard sale or flea market, or what a second-hand store might pay for them. (The reason this has to be done is that state law treats abandoned property valued at under $300 differently from abandoned property valued at over $300. In most cases the "sale value" of items left behind will be well below $300 and you should not have trouble putting a reasonable dollar value on it. In some

(1/9/2018) 145 cases, valuation may exceed $300.) If unsure, contact your property supervisor for assistance.

6. It will be best to do this inventory and valuation in the presence of another staff person, whose name will also be noted on the Inventory of Abandoned Property form. This will help protect the management staff persons from claims that items were omitted or stolen. The Inventory of Abandoned Property form is to be placed in the resident’s file.

2. Storing and Notifying Residents of Abandoned Property:

a. After doing the inventory, estimating the value and packing up the personal property left in the apartment, the items will need to be stored in a safe place. A safe place means some space which is locked and where only management staff have access with a key. Other residents should not be allowed access to these storage areas. If necessary, they may have to be moved off-site and stored elsewhere, if there is not sufficient secure storage space at the site. Place a memo in the resident’s file regarding packing out the property and the location of its storage.

b. After storing the residents’ personal property items, the Site Manager must prepare and mail a Notice of Right to Reclaim Abandoned Property (See Appendix F, Form PM-601).

1. This Notice gives the former residents a period of 18 days from the date of mailing the notice to reclaim their property after paying a storage fee to the project. (This fee may be paid by personal check or money order.)

2. On the Notice, write the former resident's name, address and unit number, and a brief description of the personal property left behind. If they left a lot of items, simply write "SEE ATTACHMENT A", and label as “ATTACHMENT A” a copy of the Inventory of Abandoned Property Form that was filled out.

3. Indicate the address on the notice where they can reclaim their property and pay the storage fee.

4. In the next section on the form, check one of two boxes: The first is for the case where the property, per your valuation is worth less than $300. The second box must be checked when the property is worth more than $300.

5. Finally, place the date of mailing, sign the Notice, and provide the management office phone number. Make a copy to place in the

(1/9/2018) 146 resident's file.

6. Mail the Notice of Right to Reclaim Abandoned Property, to any forwarding address you have, the address in your building, workplace address and/or relative’s address noted on an application or Emergency Notification form.

3. Disposal or sale of abandoned property:

a. If the resident has not reclaimed the abandoned personal property after the 18- day period has expired, management staff is to contact the property supervisor to discuss how the property will be disposed of or sold.

1. In most cases, the property will be worth less than $300. It should be donated to Goodwill or a similar charitable organization or otherwise disposed of.

2. Where the property is valued at more than $300, arrangements will have to be made for sale at a public auction, with notice made as required by state law.

H. Resident Deaths at the Property

Occasionally elderly residents or other persons will die in their units. Building management staff should be aware if they haven’t seen a resident for a while, especially one who lives alone, or if rent is unpaid by persons who are normally punctual in paying.

1. Determining Whether Someone Has Died in Their Unit:

a. If management staff senses something unusual or if there is an odor coming from a unit where someone lives alone, go to the unit and knock on the door to see if the resident is there and all right.

b. If unable to do so, conduct a Wellness Check for the resident.

c. If a management staff person finds that a resident has died in a unit where there are no other occupants, the following procedures are to be followed:

1. Call "911" and notify the paramedics immediately.

2. Secure the unit and do not allow any resident to enter.

(1/9/2018) 147 3. When the arrive escort paramedics (and police, if sent) to the body.

4. After determination by the paramedics (or police) that the person has died, the paramedics will notify the San Francisco County Coroner's Office.

2. Working With the County Coroner:

a. Gather any information you have on the tenant for the County Coroner (i.e. names, addresses and phone numbers of relatives and friends from the application or Voluntary Tenant Emergency Information Sheet (See Appendix F, Form# PM-319); social security number and date of birth of tenant; etc.).

b. The County Coroner's office will have a representative at the scene as soon as possible (usually within 2 hours) to remove the body. Some or all of the person's belongings may also be removed by the Coroner. A receipt will be issued for these belongings, which should be placed in the resident's file.

c. From the Coroner, get the Coroner's case number for the deceased person. You will need this when contacting the Coroner’s office later about the unit and the deceased person’s personal property.

d. An Incident Report (See Appendix F, Form # PM-405) must also be filled out by the management staff person and faxed to the property supervisor, with a copy placed in the tenant's file.

e. Discuss the death and planned steps to protect the deceased’s possessions and timeframes for recovering the unit with your property supervisor as soon as time allows.

f. Depending on the circumstances, the Coroner may "seal" the unit. Sealing the unit means that a sign is posted on the door and no one, not even the general manager or maintenance persons, is allowed to enter without the permission of the Coroner. (NOTE: If there is a strong odor in the unit try to see if you can open a window and leave it open, weather conditions permitting, to let the unit air out.)

3. Release of the Unit and the Deceased Resident’s Personal Property:

a. Keep the unit secured. Management staff may be contacted by relatives and other strangers claiming to be entitled to certain of the deceased's possessions. Do not release any possessions without authorization, because it could cause TNDC to be sued later by legitimate heirs. Even personal effects necessary for a burial should not be released without authorization from the San Francisco Coroner's or San Public Guardian's office.

b. If a known relative lives in San Francisco, and the relative accepts responsibility for the resident's belongings, the Coroner may turn the belongings over to the relative and the

(1/9/2018) 148 unit will be released. You must get documentation of this from the Coroner’s office. (Normally, a unit will be unsealed or released within one to two weeks. If a homicide is suspected, the Police Department may require the apartment to continue to be sealed until their investigation is completed.) c. If a relative otherwise comes to collect the belongings, call the Notification Unit of the Coroner's Office in order to confirm the name of the person authorized to collect the belongings. The Notification Unit will need the Coroner's case number for identification of the deceased person. If he/she has been confirmed by the Notification Unit, have the person(s) taking the belongings write-out on a piece of paper: a) their name; b) the date; c) that they are authorized by the County to collect the belongings; d) a general description of the items taken (e.g. "clothing", "books", "radio and television", etc.); and, e) sign their names. This serves as a "receipt" for TNDC. Depending on whether the deceased left a will and the complexity of the estate, there may be an executor who can produce Letters Testamentary or Letters of Administration, documents which give a person possession of personal property. A Log Book entry or memo to the resident’s file must be made by the Site Manager noting the release of any possessions. d. If a person dies without a will and no known relative lives in San Francisco, the contents of the apartment unit will temporarily remain in management's possession and the County Coroner's Office will notify the San Francisco Public Guardian’s Office of the person's death. The Public Guardian is responsible for the belongings left by the deceased person if no known relative lives within the county. A representative from the Public Guardian's office will come to inventory the belongings. The Public Guardian may remove the belongings at this time or may return a second time to collect the belongings. Like the County Coroner, the Public Guardian will need any information management may have regarding the deceased person. This includes names, addresses and phone numbers of relatives and friends; social security number of the resident, etc. e. If the unit has been released but the possessions have not been collected, management is responsible for holding any of the resident’s belongings of value. They must be inventoried and moved out to a storage area for safekeeping. Use the Inventory of Abandoned Property Form (See TAB 14, Form# HM-603) for this purpose and follow the same procedures for packing out and storing the property as noted in Section F, above. f. Inform the building’s social worker of the resident’s death and provide him/her with a copy of the Incident Report.

1. The social worker may have information regarding relatives or contacts which is different from what the manager has, and may help the Coroner or Public Guardian’s office to expedite the release the deceased’s personal property.

(1/9/2018) 149 2. Also, if appropriate, the social worker may arrange a memorial service for the deceased in the building.

g. After an apartment unit has been released and possessions removed or stored, management may take possession of the apartment unit and prepare it for re-renting by following the procedures outlined in Chapter VII: Maintenance, Section F and in this chapter, Sections B through E above.

h. Contact the Public Guardian to determine how long the deceased’s possessions will need to be retained/stored, if there are no provisions for their disposition in an estate or probate procedure, and no one legitimately claims and them from storage. Once disposition occurs, keep a list of the items thrown away or given away in the deceased resident's file.

I. Resident Deaths Outside the Property

If residents die outside of the property, the policies and procedures outlined in Section G, above, will apply--except for notification of the paramedics and the San Francisco Coroner’s office having to remove the body.

1. While the resident’s unit may not be sealed, in that case, it is management’s responsibility to keep the unit secured and to not allow anyone to take its contents without authorization by the San Francisco’s Coroner’s Office or the Public Guardian’s Office, depending upon which agency has jurisdiction at the time.

2. Once you learn of a resident’s death outside the building, call the Coroner’s Office to get a Coroner’s Case Number so that you can track the status of disposition of the deceased’s personal belongings in the unit, and to get back possession of the unit as soon as possible.

(1/9/2018) 150 XI. SECURITY & SAFETY

A. Introduction

While there is no such thing as total security or safety, TNDC is responsible for promoting building residents’ and employees’ safety, security and well-being. It takes this responsibility seriously. TNDC can, and will, minimize risks, hazards, and injuries to both residents and staff--thereby maintaining healthful and safe and secure living and working environments through:

 the design of its developments;  management systems which identify, avoid or reduce hazards;  clear procedures for responding to emergencies; and  thorough training of its staff.

Constant attention paid to, and vigilance in, these four areas, should also result in fewer accidents, injuries, thefts, and property damage which will minimize TNDC’s exposure to lawsuits and minimize increases to its liability, workers compensation and property insurance premiums.

B. Inspections

1. Inspections and Observations: As noted in Chapter VII: Inspections and Maintenance, Section J, it is building management and maintenance staff’s responsibility to go looking for trouble…before it happens. Staff does this through frequent routine building walk-throughs and regularly scheduled inspections to identify and abate hazards: At minimum, this includes:

a. Daily building walk through by general managers (management by walking around!)

b. Annual IIPP risk management inspections directed by Human Resources and attended by Facilities and other management staff.

c. Annual unit inspections by general managers and lead maintenance staff

d. Adherence to preventive maintenance scheduled inspections

e. Daily vigilant observations by all staff in the course of doing their job to notice and report things that “don’t look, sound or smell quite right”

f. Annual risk management inspections by an outside entity contracted by TNDC’s insurance company.

(1/9/2018) 151 Items to be constantly inspected include, but are not limited to:

a. Any non-functioning lighting;

b. Potential tripping or slipping hazards;

c. Problems with fire alarm systems and their components, including the enunciator panel, smoke detectors and fire extinguishers;

d. Obstructed egresses;

e. Locks and doors not working properly;

f. Evidence of broken glass;

g. Evidence of water where it shouldn’t be;

h. Improper storage or marking of hazardous materials;

i. Indications that the proper tools, protective equipment or information sheets are not available for staff to do their jobs safely;

j. Observations of unsafe work practices.

2. Abatement of Hazards:

a. Hazards or unsafe conditions will be noted on the appropriate inspection form.

b. Hazards can also be reported by staff using the Notification of Safety Hazard Form. (See Section I(4) in this chapter, below, for procedures to report current or potential hazards.)

c. In addition, residents will sometimes report hazardous or potentially hazardous conditions. These should be taken very seriously and investigated and, if warranted, abated just as if a staff person had reported them.

d. The Facilities Department will be notified in writing of any hazards identified by the outside agency contracted by TNDC’s insurance company.

e. All hazards or potential hazards must followed up with corrective action shown on a Work Order (See Appendix F, Form PM-702). These must be treated as emergency or urgent items in the priority system.

(1/9/2018) 152 C. Building and Office Security

Security at TNDC’s buildings involves a combination of physical elements and systems relating to human behavior to prevent, identify and abate security risks:

1. Building Entries:

a. Larger buildings control entry with desk clerk staffing 24 hours a day, 7 days a week.

1. Non-residents must sign in, provide photo identification, and be checked against that building’s “86” (banned persons) list.

2. Guests must be accompanied by residents when they are in the building and escorted to and from the front door by residents.

b. Smaller buildings have locked entry doors and intercom systems.

1. Residents are to be instructed not to buzz anyone in who they do not know, nor to allow a person unknown to them follow them in when they unlock and enter, themselves.

c. Side and back doors of buildings are used for emergency egress with panic hardware, and are alarmed and normally kept locked to entry from the outside without a key.

d. Fish eye peep-hole viewers are installed in most unit doors.

2. Security Cameras: Most buildings have security cameras, with monitors at front desks and/or in managers’ offices. They can monitor who comes in the front door and other doors and hallways on the upper floors. These have recording capacity and operate 24 hours a day.

3. Trespassers: Observe, monitor and appropriately deal with unauthorized persons on the property who are causing problems. This includes guests of residents. Requests that they leave the property. If they do not do so, call the police. If a resident is not cooperative in getting his or her guest who is causing a disturbance or committing an illegal act to leave, issue a Lease Violation Letter (See Appendix F, Form PM-408) to the resident, and place the non-resident in question on the building’s “86” list.

4. Keys and Locks:

a. When residents move out, the dead bolt drum in their unit entry lock is to be switched, in the event the former resident has retained an extra key. Buildings should maintain a

(1/9/2018) 153 reasonable supply of extra locks that can be switched for this purpose.

b. All unit and building keys will be maintained in a locked key box/cabinet, affixed to wall studs with bolts, in the manager’s office.

1. Keys will be tagged and coded in a manner that will not identify to a non- employee what units or spaces they work for.

2. The key code sheet will be maintained in a separate file known only to the general manager, and other management and lead maintenance staff who have access to the key box.

3. When unit keys are removed, or borrowed from the key cabinet, they will be signed for in a key log.

4. If a resident loses his or her key and is issued a replacement key from the key cabinet, a work order should be generated to replace that key in the cabinet. (Note: After the first replacement of a key, residents are to be charged $25 for each one replaced.)

c. Master keys, which allow access to multiple residential units and building spaces, are to be tightly controlled:

1. Only general managers, maintenance leads, and on-call maintenance persons may be issued master keys to take off-site.

2. All other staff must check master keys out and back in with maintenance leads or general managers.

3. The number of master keys should be kept to a bare minimum and are to be stamped “DO NOT DUPLICATE”.

4. Master keys are never to be issued, even on a very temporary basis, to outside contractors or vendors.

5. General managers and maintenance leads are responsible for accounting of master keys.

5. Office Security:

a. Keep the office door closed and locked when you or another responsible staff person is not in it.

b. If management staff is with a non-employee in the office and has to leave for any reason, politely ask the non-employee to leave (even if temporarily) before closing and locking

(1/9/2018) 154 the door.

c. Don’t leave any checks or money orders laying around on your desk. After receiving them from residents, stamp them with the bank deposit endorsement stamp (“For Deposit Only”), and immediately place them in a locked drawer or cabinet.

d. Keep all current resident files in a locked file cabinet.

e. Keep all keys you are responsible for in your pocket or otherwise on your person.

D. Fire Safety

1. Prevention and Information: The best way to deal with fires is to prevent them from happening by educating and working with residents in the following ways:

a. At new residents leasing and orientation session, go new residents and go over the Fire Safety Tips sheet (See Appendix F, Form PM-321). If they are smokers, emphasize the prohibition against smoking in bed. (When you see and speak with them during their tenancies, give them friendly reminders about that.)

b. If you have residents who exhibit hoarding and cluttering behavior and clutter their units with newspapers and other combustibles, take that very seriously and work in conjunction with your building’s social worker to get them to clean up their act. Speak with them, issue warning letters, and if nothing else works, a 3-Day Notice to Perform Covenant or Quit (See Appendix F, Form PM-501) or 10-Day Notice to Perform Covenant or Quit for HUD buildings (See Appendix F, Form PM-508) following the procedures outlined in Chapter IX: Lease Enforcement & Eviction, Sections D and E.

2. Smoke Detectors:

a. Each unit and all common areas must have working smoke detectors. Smoke detectors have proven to be effective in saving lives and minimizing damage to buildings when fires occur.

b. During both monthly pest control spraying and annual inspections smoke detectors are to be checked by management. Check smoke detectors with a stick or pole to press the button that activates a beep sound for working smoke detectors.

c. If any smoke detector is found to be defective or disabled, immediately create a maintenance Work Order (See Appendix F, Form PM-702) for its repair or replacement. Treat it as an “urgent” item.

(1/9/2018) 155 d. If it is clear that a resident has intentionally disabled the smoke detector in their unit, take this very seriously. Speak to them and ask the building’s social worker to speak to them about the importance of keeping smoke detectors operable to save their and other building residents’ lives in the event of a fire. Give them a Lease-Rules Violation Letter (See Appendix F, Form PM-408) with a stern warning about this. If it happens again, issue them a 3-Day Notice to Perform Covenant or Quit (See Appendix F, Form PM-501) or 10-Day Notice to Perform Covenant or Quit for HUD buildings (See Appendix F, Form PM-508). If they disable their smoke detector 3rd time, issue them a 3- Day Notice to Quit (See Appendix F, Form PM-502). It’s that important.

3. Evacuation Plans:

a. Evacuation plans/instructions are posted in hallways of all buildings.

b. It is management’s responsibility to make sure that each resident is aware of the location of the nearest fire exit(s) to his/her unit. Make sure they are clear about using stairwells and not trying to use an elevator to get down to the ground floor.

c. When a household first moves into a building, all household members should be shown the closest fire exit(s) to their unit during leasing and orientation session building tour. Also show them where fire alarm pull stations are, and emphasize the serious consequences if one of these is pulled as a false alarm when there is no fire.

d. All hallways and corridors leading to fire exits must be kept free of obstructions at all times.

3. Fire Drills: Each building is to conduct at least one fire drill annually.

a. Inform residents ahead of time about the drill and remind them about egress procedures.

b. In the event residents ignore the alarm and do not leave their units during the drill, both the manager and building’s social worker should speak with them, and let them know that they could put their, or another person’s life in jeopardy in the event they didn’t evacuate during a real fire and a fire fighter was sent in to try to save them.

E. Fire Emergencies

1. Initial Response: The building’s fire safety director should be the responsible person, in the event of a fire. If this person is not on site upon discovery of a fire, the senior staff management or maintenance person on the site at the time should take charge. All management and

(1/9/2018) 156 maintenance staff should be trained to do so, because a fire can occur at any time of the day or night. Site staff should respond as follows:

a. First, remain calm.

b. If the building's fire alarm system has not already been activated, manually activate the closest fire alarm pull box.

c. The TNDC building fire alarm system is monitored by a fire alarm company which will call the fire department. (However, to make sure the fire department is informed as soon as possible, ask someone to also immediately call 911 from outside the building on a cell phone.)

2. Building Evacuation:

a. The next task is to try to make sure everyone in the building evacuates safely and as quickly as possible.

1. Enlist help of responsible residents to check to see that everyone in the building leaves their units, if this can be done safely. Ask that residents who can get out of the building to go and stay together at the building’s designated evacuation site. A head count will be made for evacuees.

2. For disabled residents with mobility problems, request other staff or residents to assist them to evacuate.

3. Residents should be instructed to close and lock their doors after evacuating. When directing residents to exit a building to a safe area by descending a stairway, make sure that doors leading to the hallways on each of the floors are closed except when people are exiting. If going down an enclosed stairway is not possible, tenants should be directed to exit onto a section of the roof which is away from the fire, and wait until they can be evacuated from that area by the fire department.

4. When smoke is present, advise residents to keep low, take short breaths and evacuate as quickly as possible. If possible, they should place a damp towel or cloth over their mouth.

3. Extinguishing the Fire:

a. If it is possible to safely put out or contain a small fire using one of the building's fire extinguishers, site staff or a resident may attempt to do so. It is important to know and understand, however, that neither staff nor other residents are expected to risk their own

(1/9/2018) 157 lives during a fire emergency to evacuate others or to try to put out a fire.

b. If the fire is in an apartment unit and the door knob feels hot when touched with the back of the hand, or if heavy smoke is billowing out from under the door, do not open the door since the back draft created may cause the fire to rapidly spread and may injure you and others in the hallway.

c. If the apartment door is not hot and if there doesn't appear to be major smoke yet, check the unit and, keeping low, remove anyone in immediate danger.

d. Then, if safe to do so--and the fire department has not yet arrived--attempt to extinguish the fire with a building dry chemical fire extinguisher until the fire department arrives.

e. In fighting a fire, make sure the fire isn't blocking your exit so you would be trapped if the fire should get out of control.

f. When the fire department arrives, the fire fighters will take over to extinguish the fire. After the fire is extinguished, the fire department personnel will also do what is necessary to rearm the fire alarm system and to turn off, drain, replace heads, and reactivate the fire sprinkler system.

4. After the Fire is Extinguished:

a. Call the appropriate persons on your building’s Emergency Contact Phone Numbers sheet (See Appendix E).

b. As soon as possible, fill out an Incident Report, (See Appendix F, Form PM-405) to provide information about the fire, damages, names of any injured persons, and including the names and badge number of the fire fighting personnel who will be responsible for making their report. This will be important information for the TNDC building’ insurance company. Provide copies to your property supervisor, director of property management, facilities manager, social worker, and asset manager as soon as possible.

c. If any of the building’s fire sprinkler heads went off, it will be the fire department’s job to turn off the system and replace the heads before they leave the building, if safe to do so.

d. If necessary, assist residents to find emergency shelter, through the TNDC Social Work Unit or other outside agencies.

F. Earthquake Emergencies

1. Response During a Major Earthquake:

(1/9/2018) 158 a. First remember to stay calm. The event itself will probably last less than a minute, although there will soon likely be some aftershocks..

b. If inside the building, staff and residents should move to one of the hallway corridors away from windows and other glass.

c. Brace bodies against corridor walls, or crouch under a table or desk (if inside a unit or office).

d. Hands should be placed over the head for protection from falling objects.

2. Emergency Response After a Major Earthquake:

a. After the quake has stopped, management staff on site is to immediately check to see if there is any fire. If so, respond as directed above in Section E of this chapter.

b. Go to the main gas valve. If there is a smell of gas, indicating a leak, immediately turn it off. If there is no fire or smell of leaking gas, leave the gas turned on. (Note: See Appendix B for the "Building Systems Guide" which has the locations and instructions for turning off the gas system and other systems noted in this section.)

c. Then go to the hot water heater. Turn off the electric supply switch and outlet valve to save the water in the tank and keep it cool for future drinking purposes, if necessary. If water appears to be leaking, turn off the water supply valve, as well. (However, if there are no ruptured water lines and the building still has water service, leave the water supply valve turned on.)

d. Do not turn off the electricity, if it continues to be functioning after an earthquake, unless there are obvious shorts in the building.

e. Next, check to see if there are any injuries. If there are injuries, seek medical help as soon as possible. If no help is available, attempt to administer first aid using the building’s first aid kit until experienced medical assistance arrives or until the injured person(s) can be taken to a hospital.

f. Check for structural damage and any other obvious safety problems. In the event of structural damage, direct residents to other areas to minimize their risk. If there is major structural damage to the building, instruct tenants to evacuate. Otherwise, it is safest for residents and staff to stay inside.

g. If there are any dangerous spills, clean them up immediately. However, if the spill is suspected to be a hazardous chemical, evacuate the and cordon off the areas until professional hazmat experts can clean it up.

(1/9/2018) 159 h. If phone lines are open and there has been damage or injuries, contact the appropriate persons on your building’s Emergency Contact Phone List (See Appendix E) to report any injuries and/or to report any damage to the building.

i. Turn on radios and listen for any instructions or other relevant information from public safety agencies. Do not use the office phone, except for emergency use or to make the calls noted above.

j. As soon as possible, fill out an Incident Report, See Appendix F, Form PM-405 and Section H of this chapter, below, to provide information about the earthquake, any damages to the building, names of any injured persons, and the names and badge number of any City of San Francisco police, firefighters or paramedics who assisted the residents of your building in any way. This will be important information for the TNDC building’ insurance company. Provide copies to your property supervisor, director of property management, facilities manger and asset manager as soon as possible.

G. Assaults, Violent Behavior and Other Incidents Requiring Police Response

1. Assault, Battery or Other Violent Acts:

a. Neither residents nor management staff are to carry concealed weapons on their person and/or within the common areas of the projects. Firearms are not permitted in the TNDC building, except by law enforcement personnel.

b. Assaults or other violent behavior by residents or employees, including threats with weapons and/or other objects capable of inflicting bodily injury, will not be tolerated under any circumstances. Any violation of these policies will subject the resident to immediate eviction or an employee to termination.

c. In the event a tenant or an employee engages in any assault behavior by threat with a gun or any other weapon or commits an actual battery, the manager should attempt to defuse the altercation, if it can be done without any jeopardy to their safety or that of any other person within the area. If the personal safety of any person is at risk, do not intervene. Call the police at 911, and request immediate emergency assistance.

d. Whenever there is an assault or battery, or whenever an employee is threatened by a resident, it is mandatory that the police be called to make an arrest, if possible, and a police report is completed.

e. Residents who have been threatened by another tenant should be encouraged to call the police. Management personnel can be there with them, but it needs to be their call and report.

(1/9/2018) 160 f. As soon as possible, do an Incident Report(See Appendix F, Form PM-405).

2. Thefts and Intentional Property Destruction:

a. As with assaults, if a burglary or theft takes place on the property or there is substantial intentional property damage committed by a resident or other person, call 911 for the police to come to the building.

b. Make a police report to arrest the responsible persons.

3. Working with the Police:

a. Provide the police with all necessary information and documentation for the police report and arrest.

b. If the police respond to an incident and/or make an arrest on the property, request a copy of the police report from the officer, or get some identifying information, along with the officer’s name and badge number to get a copy of the report later.

H. Incident Reports

a. Whenever you have a situation which could, at some time in the future, be significant for, or lead to, an insurance claim, a law suit, an arrest, a lease violation eviction, or any kind of investigation, think “Incident Report”.

b. These include, but are not limited to: fires and other natural disasters, assaults, thefts, intentional property damage, illegal acts committed on or near the property, resident deaths, slips, falls and other injuries to residents and staff.

c. Do the Incident Report as soon as possible after the incident occurs so that all of the facts and relevant information is fresh in your memory.

d. While incidents are occurring, take notes of things that you know must be included in incident reports, such as the name and badge number of police, firefighters or paramedics. Also, take digital photographs with the building’s digital camera, if relevant and possible. If the incident was recorded by the building’s security camera, remove and secure the media it was recorded on.

e. The Incident Report (See Appendix F, Form PM-405) should include the information:

1. The exact location where the incident took place;

(1/9/2018) 161 2. The date and time of the incident;

3. The names of person(s) involved;

4. The names and contact numbers of witnesses(es);

5. A detailed description of the incident;

6. A detailed description of any injuries;

7. A detailed description of any property damage;

8. If police, paramedics or firefighters came to the building to respond to the incident provide:

i. The name of the responder;

ii. The badge number of the responder;

iii. A contact phone number.

9. A statement regarding the current status of the incident or persons involved;

10. A statement of any follow-up relating to this incident which is needed.

f. Fax or deliver a copy of the Incident Report (and related documentation or photos) to your property supervisor and director of property management, and the building’s social worker. If a fire, earthquake or other property damage is involved, also provide copies to the facilities manager and director of asset management.

I. Employee Safety

1. The IIPP: Pursuant to state law, TNDC has developed an Injury and Illness Prevention Program (IIPP) Manual and a shorter Creating and Maintaining a Safe Workplace at TNDC Manual, which summarizes the IIPP.

a. TNDC’s IIPP consists of the following components:

 Designating responsibility for maintaining a safe workplace among supervisors, managers and employees.

 Elements of compliance with the program.

(1/9/2018) 162  A process for health and safety training.

 Procedures for health and safety communications.

 Procedures for Accident and Exposure investigations.

 Procedures for correction of hazards.

 A protocol for record keeping.

b. All Property Management and Maintenance staff should have copies of both documents and be familiar with their contents.

2. Training:

a. Every new employee must receive in their orientation packet, an Employee Safety and Emergency Preparedness Orientation, which is an Human Resources Department form. His or her supervisor is to go through this orientation process with him or her within a week of the time they start work. It covers:

 Employee’s responsibilities for safety  An overview of their building’s emergency plan  The employee’s specific role in medical, fire and earthquake emergencies  The employee’s role and responsibilities in responding to emergencies after work hours  Instruction on where and how to shut off water mains, electric mains, and gas mains.  Instruction on fire notification equipment and fire alarm monitoring company details  A tour of all emergency exits  Familiarity with the locations and use of first aid kits and other emergency supplies

b. Once the orientation has been completed, the supervisor and employee must fill-out and submit to the Human Resources Department a copy of the Employee Safety Orientation Checklist and Questionnaire. Make a copy for the employee’s file at the building.

c. Each TNDC staff person has an annual training “budget” and the Human Resources Department creates an annual schedule of training courses offered.

d. General managers and lead maintenance persons should discuss job related training needs with employees they supervise to ensure that appropriate IIPP related training is included in their annual training plans. These courses include:

 An IIPP “Refresher”

(1/9/2018) 163  Personal Protective Equipment  Blood Borne Pathogens Safety  HazCom Program and Material Safety Data Sheets/Chemical Use  Ladder Safety/Scaffolding/Fall Protection  Lead and Asbestos Training

e. Supervisors are to periodically check to make sure that staff are performing their jobs in compliance with the IIPP’s provisions..

3. General Code of Safe Practices:

a. No employee should undertake a job until s/he has received instruction on how to do it properly and safely.

b. No employee should undertake a job that appears to be unsafe.

c. No employee should use chemicals without fully understanding their toxic properties, and without the knowledge required to work with them safely in accordance with TNDC’s Hazard Communication Program.

d. No employee should engage in horseplay or unsafe behavior.

e. Personal protective equipment must be used when and where required and properly maintained.

4. Reporting Hazards:

a. All employees are encouraged to report to management any current or potential safety hazards.

b. There will be no reprisal or negative consequences for reporting actual or potential hazards.

c. Use the Notification of Safety Hazard Form in the IIPP.

d. Management will then check out the notification and issue a response on the Response to Notification of Safety Hazard Form, which is also in the IIPP.

J. Employee Injuries

1. Response:

(1/9/2018) 164 a. If an injured employee needs immediate medical attention, do one of the following:

1. If the injury is serious or life threatening, call 911 to get the paramedics there immediately.

2. If the injury occurs between 8:30 to 5 pm Monday through Friday, and appears to be minor, and non-life threatening, but immediate medical attention is still needed, please notify Human Resources immediately. Do not wait until the next day. Human Resources will give the appropriate referral to the occupational care provider.

3. If the injury occurs after 5 pm until 8:30 am and on a weekend or holiday and the employee needs immediate care, then send them to a Kaiser Occupational Care Center.

4. For your information only, TNDC’s occupational care provider is the Franciscan Treatment Room at the following address:

Franciscan Treatment Room 1199 Bush Street #160 San Francisco, CA 94109 Phone: (415) 353-6305 Fax: (415) 353-6527

2. Reporting:

a. Any employee who has experienced an injury on the job, no matter how minor, must go to the Human Resources Department to report it as soon as they are able to do so.

b. Once learning of a job-related injury or illness, management should also submit an Incident Report (See Appendix F, Form PM-405) pursuant to the procedures and instructions in Section H of this chapter. Also, make a copy and send it immediately to the HR director. This documentation is part of the accident investigation.

3. Workers Compensation Claims:

a. A State-Federal Employment Rights poster is to be posted at each project at a place where all employees can see it, providing employees with information about their workers compensation rights, as well as other rights under various employment laws.

b. Staff in the Human Resources department will work with employees to report and process their claims.

(1/9/2018) 165 4. Accident/Exposure Investigations:

a. After an accident or illness is reported, the accident/exposure will be investigated by the Human Resources Department or a designated manager to determine the cause and then take corrective action to try to prevent a recurrence.

b. The investigation, recommendations for future preventive actions, and any corrective actions taken will be documented on a Accident/Exposure Investigation Report, a form which is found in the IIPP.

(1/9/2018) 166 XII. FINANCIAL MANAGEMENT

A. Introduction

TNDC uses a variety of financial management systems to collect, protect, deposit, record, and summarize all financial transactions. These allow for the safeguarding, and the accurate accounting, budgeting and reporting of all revenues and expenses related to the management of TNDC’s properties.

B. Property Rent Revenues

1. Rents: Rents are the primary source of income property management receives. Most rents are paid directly by residents. For residents receiving subsidies from certain special programs such as Shelter Plus Care, Department of Public Health/Direct Access to Housing (DPH/DAH), and various forms of Section 8, a portion of residents’ monthly rents are paid directly by HUD or the San Francisco Housing Authority in lump-sum rent subsidy checks to the buildings. Details of the rent collection and submittal are covered in Chapter V: Rent Collection. However, the salient points involved in the processes are summarized below, as they relate to financial management.

2. Rent Collections and Accounting for Non-HUD Buildings:

a. Property management staff at buildings collect rent checks, bank endorsement stamp them, enter the information into an Excel Check Reconciliation sheet –a template for which is on management computers. Then run printing calculator tapes, and hand-deliver a paper copy of the filled-out Check Reconciliation sheet to Accounting--after getting the submittal time and date stamped at 201 Eddy Street front desk. General managers keep office file copies of all checks received and Check Reconciliation sheets submitted to Accounting.

b. The property management accountant in TNDC’s Accounting Department verifies information on Check Reconciliation sheet to the checks that were attached.

c. Accounting applies checks to individual tenant ledger charges in TNDC’s property management software and deposits checks into the banks.

d. By the 6th of the month, send an email to the property management accountant informing him or her of the $20 late fee to be charged for tenants who are late paying rent.

e. On the 15th of each month, the property management accountant prints out a “Prepaid and Delinquency” report and places the appropriate copies in each general manager’s mail

(1/9/2018) 167 folder for review and comment to check the accuracy of paid and unpaid rents. f. On the first of each month, the property management accountant performs a “Month-End Close” in the property management software. Hard copies of the “Prepaid and Delinquency” reports are then again provided to general managers to review for completeness and accuracy, as of the end of the previous month.

i. General managers are to email the property management accountant regarding any tenant accounts they believe are not accurate and current in the property management software. g. The property management accountant is notified of move-ins at any time during the month through an email with a completed Resident Move-in Form (See Appendix F, Form PM-325) attached, which includes information about the full rent amount, tenant- paid rent amount, subsidy rent amount (if any), and security deposit. (See Chapter IV: Leasing, Orientation & Move-in, Section F for a detailed description of these procedures.)

i. The property management accountant then creates a tenant ledger record for the new resident in TNDC’s property management software.

ii. Managers immediately transmit rents to Accounting for new residents using the Excel Check Reconciliation sheet.

iii. Security deposits are paid with separate checks and are also immediately transmitted to the Accounting using the Security Deposit Reconciliation sheet. h. The property management accountant is to be notified within 3 days of move-outs at any time during the month through an email with a filled-out Preliminary Statement of Account form (See Appendix F, Form PM-604) attached, which includes information about the date of move-out, unpaid rent balances, charges for tenant-caused damages above normal wear and tear.

i. The property management accountant will then not charge rent for the subsequent month on the tenant’s ledger.

ii. Submittal of the Preliminary Statement of Account form will be followed by transmittal to Accounting of an Itemized Disposition of Security Deposit form (See Appendix F, Form PM-600) which provides information regarding either the retention and/or return of security deposit to the former resident. (See Chapter X: Move-Outs, Section D for a detailed description of these procedures.)

iii. The property management accountant closes the tenant’s account, applies Security Deposits to outstanding balances, if any, and submits a check request

(1/9/2018) 168 to accounts payable for refunds of all or part of the tenant’s security deposit, if applicable. i. After the month-end close, the property management accountant applies rent charges to all active accounts for that month which constitutes the Rent Roll for that month. j. The property management accountant also invoices, receives and records payments for subsidy portions of rents due to buildings from the San Francisco Housing Authority. See also Section B(3), below for Rent Collections for HUD properties for the process of receiving HUD rent subsidies for those buildings. k. On the 1st of each month, the property management accountant journalizes into MIP, TNDC’s corporate accounting software, the Gross Potential Rent for each building, based on reports from TNDC’s property management software. l. During the last week of each month, the property management accountant journalizes vacancy loss, other charges for damages and cleaning, NSF and late fees into MIP. m. Vacancies are monitored through a weekly “Vacancy Status Report” based on property management software data that has been download into an Excel spreadsheet. This is emailed to the property supervisors by the property management administrative assistant, who then review vacancies with their general managers. The director of property management gets a summary these reports and goes over vacancies with the property supervisors in weekly meetings. n. In addition to delinquencies are monitored by the property management accountant who prints out and distributes a report to each general manager for review and comment on the 15th of every month, delinquencies are also reported and monitored by the financial manager in the Property Management SnapShot at the end of each month. o. The SnapShot is distributed to the director of property management, property supervisors and TNDC’s board Property Management Committee. p. After the “Month-End Close”, the property management accountant:

i. Performs Schedule of Delinquency Balances for each building and calculates totals for each portfolio, and then sends these reports to the property supervisors and director of property management.

ii. Reconciles the property management software to MIP for the previous month.

Property Management Software Permissions and Use:

iii. Only Accounting Department staff can enter and update information on TNDC’s property management software.

(1/9/2018) 169 iv. The Property Management Department director, financial manager, asset manager, and all property supervisors have read-only access to the property management software v. Some, but not all, general managers have read-only access to the property management software on their office computers. Those who don’t can get read- only access on a computer that is located in the Accounting Department in the basement of the Curran House.

3. Rent Collections and Accounting for HUD Buildings: Rent collections, data entry, subsidy billing and tracking have several important differences which are noted below for the four HUD Properties (Maria Manor, Antonia Manor, Alexander Residence and Turk & Eddy Apartments):

a. General managers directly charge monthly rent, apply and post rent payments, generate accounts receivable posting reports using OneSite property management software. Checks are taken to Accounting with cover reports on the day the rents are received.

b. By the 10th- of each month, general managers transmit reports to HUD’s TRACS system through OneSite, which will request the proper amount of subsidy portion of rents from HUD. When HUD payments come to the buildings, they must be applied into OneSite by general managers. Then, the checks are to be immediately taken to Accounting with a cover report for deposit.

c. General managers directly input move-in/move-out information, and resident income certifications and re-certifications into OneSite. OneSite automatically calculates residents’ monthly rent charges based on income certifications and re-certifications shown on the HUD 50059 form. All certifications and re-certifications are reviewed and approved by the property supervisors, compliance manager and property management director.

i. Although general managers of HUD properties input move-in and move-out information into OneSite, themselves, they still most provide Accounting all notifications of move-ins and move-outs, as noted in 1(f) and 1 (g), above.

d. General managers do month-end closings on the 1st of every month. Give the accounts receivable accountant the following month-end reports generated from OneSite:

i. Resident Activity ii. Monthly Income Summary iii. Monthly Transaction Summary iv. Transaction Detail by Code v. Transaction Summary by Unit vi. Monthly Activity Summary vii. Bank Deposit Summary

(1/9/2018) 170 viii. Delinquent and Prepaid ix. Resident Summary Balances All Units Report x. Reconciliation Summary xi. Scheduled Billing Forecast xii. Resident Deposit Activity xiii. Resident Deposit Audit

e. Generate and print out the following reports after you’ve advanced date to 1st and right after you’ve charged 1st of the month rents

i. Post Scheduled Billing Results (print during the 1st of month rent charge process after you’ve charged rent. ii. Monthly Transaction Summary iii. Resident Summary Balances iv. Rent Roll Detail

f. After receiving month-end reports from general managers, the accounts receivable accountant will journalize the gross potential rent, vacancies and delinquencies into MIP:

g. Property Management Software Permissions and Use:

i. General managers of HUD properties and the accounting and finance administrator have full read and write access to OneSite for HUD their respective properties. ii. The compliance manager and director of property management have compliance access to approve resident income certifications but not to write to write to any other module. iii. Property supervisors have read-only access to all modules.

C. Collecting Unpaid Obligations

1. Collections by TNDC’s Collection Agency: If a resident is evicted or otherwise leaves with unpaid obligations for rent or damage to the property, it is TNDC’s policy to attempt to collect amounts owed above $100 through a collection agency. In these cases, send to the Property Management Department administrative assistant the following:

a. Copy of the application b. Copy of the resident’s ID c. Copy of the lease d. Copy of the Itemized Disposition of Security Deposit form (See Appendix F, Form PM- 600, which is a statement of charges. e. Copy of any notices to-vacate. f. Copy of any court money judgment.

(1/9/2018) 171 The Property Management Department Administrative Assistant will then be responsible for filing the collection claim with TNDC’s contracted agency.

2. HUD Reimbursement for Section 8 Vacancy Loss, Unpaid, Rents and Damages:

a. HUD allows claims for and will reimburse TNDC for 80% of the former contract rent for up to 60 days of vacancy loss for Section 8 HAP Units. These reimbursement opportunities are applicable only to the Antonia, Alexander, Maria, and Turk & Eddy, properties and are billed and processed through OneSite.

i. HUD Form 52671-C is to be used to make this claim. See Appendix T for the rules, specific instructions, and a copy of the HUD 52671-C form to be used for claiming this reimbursement, (for relevant buildings only).

b. TNDC may also claim reimbursement from HUD for unpaid rent and unpaid tenant damages for former tenants who were subsidy recipients of the above subsidy programs in the Antonia, Alexander, Maria, Turk & Eddy and are billed and processed through OneSite.

i. HUD Form 52670-A Part 2 and HUD Form 52671-A are used to make these types of claims. See Appendix T for the rules, specific instructions, and a copy of the two HUD forms to be used for claiming this reimbursement, (for relevant buildings only).

3. SFHA Reimbursement for Vacancy Loss, Unpaid, Rents and Damages:

a. The San Francisco Housing Authority (SFHA) allows claims for, and will reimburse TNDC for 80% of the former contract rent for up to 1 month of vacancy loss relating to former Section 8 Mod Rehab, Section 8 Project-Based Voucher, and Shelter Plus Care subsidy recipients who have moved out. In addition SFHA pays claims to reimburse TNDC for unpaid rent and unpaid tenant damages (up to 200% of the contract rent, less the amount has retained from the former tenant’s security deposit). These reimbursement opportunities are applicable only to the Ellis, Ritz, Ambassador, Franciscan, Curran and Civic Center Residence, Dalt and West properties. (Claims for reimbursement of unpaid tenant damages require an inspection by a SFHA inspector.)

i. To make these reimbursement claims, use the SFHA Claim For Compensation for Unpaid Rent, Damages and Vacancy Loss form (See Appendix F, Form PM-807). Also see Appendix T for the rules, specific instructions, and a copy of the SFHA form to be used when claiming this reimbursement, (for relevant buildings only).

(1/9/2018) 172 D. Write-offs of Uncollectible Unpaid Obligations

1. Write-Off Policy and Procedures: After attempting to collect unpaid obligations for rent and damages, a substantial percentage of them will be determined to be uncollectible. Rather than letting them sit on the property’s and TNDC’s books as “receivables” for a long time, they should be written off as bad debt after a determination is made that they are not likely to be paid.

a. General managers are to recommend write-offs of bad debt receivables on their building’s books.

b. This recommendation must be placed on a Request to Write-off Previous Resident’s Account form (See Appendix F, Form PM-805) which specifies the adjustment to be made and identifies the relevant tenant account. Attach a copy of the tenant’s ledger when submitting this form.

c. This request must approved by both the property supervisor and director of property management.

d. Once approved, submit the form to the property management accountant for processing.

E. Adjustments to Tenants’ Accounts

1. Account Adjustment Policies and Procedures: In certain circumstances, tenants accounts in the property management software may need to be adjusted, such as where there are overcharges, payment has been incorrectly entered, or where there is good reason to waive a late fee.

a. Request an adjustment using the Request to Adjust Resident’s Account form (See Appendix F, Form PM-804)

b. Indicate the tenant’s name and unit number, the adjustment requested and the reason for it on the form. Also provide any supporting documentation you have for the adjustment, including a copy of the tenant’s ledger.

c. Get your property supervisor’s approval for the adjustment.

d. Submit the signed form to the property management accountant for processing to perform the appropriate adjustments in the property management software.

2. NSF Adjustments: For returned checks from banks:

(1/9/2018) 173 a. The property management accountant receives returned checks from the banks and applies the charges to the individual accounts in the property management software.

b. These charges are also journalized in MIP.

c. General managers are sent a copy of the returned check and account ledger, at which point, they must take steps to collect the unpaid rent and NSF fee. See Chapter V: Rents, Section B(5) for detailed instructions for handling situations where rent checks are returned due to non-sufficient funds.

F. Purchases

Building management makes four broad categories of purchases:

 Maintenance supplies and equipment (e.g., for repairs, cleaning, and unit turnovers, etc.)  Building supplies (for office and other types of consumable supplies for operations)  Contractor services ( for such services as pest control, elevator, fire alarm monitoring, fire extinguisher recharge services that require specialized skills and licenses)  Capital improvements

1. Approvals and Limits: Purchases require a variety of approvals, depending on their type and cost.

a. General managers may approve purchase orders up to the pre-approved (in the budgeting process) monthly expenditure amounts for office/maintenance supplies and service contracts.

b. Property supervisors approval are required for purchase orders that exceed the pre- approved budget amounts for supplies and contract services.

2. Purchase Orders: The one common thread affecting all purchases is that purchase orders must be requested, approved and issued. These are necessary to justify the purchases and services, and to provide documentation for TNDC to pay invoices for them. See Chapter 7: Maintenance and Inspections, Section K for additional detailed discussion of procedures for maintenance Purchase Orders.

3. Capital Improvements:

a. Capital improvements are paid for by a building’s replacement reserves, which generally not only require internal TNDC approval, but also approval of investors and other public lenders.

(1/9/2018) 174 b. Capital improvements involve major systems and depreciable items that are part of the structure and units, will last more than a year, and costs more than $700. Capital expenditures in excess of $2,500 require 3 bids.

c. Property supervisor, property management director, facilities manager, and asset manager approvals are required for capital improvements. They must be documented with purchase orders and also documented on a signed Capital Improvement Approval Form (See Appendix F, Form PM-806).

d. Capital improvement expenditures may be initially shown on the books as “expenses”, but must be “capitalized” through the year-end audit process, with journal entries made to remove them from a building’s maintenance expense line item.

e. A replacement reserve analysis will be updated for each building every three years to take into account capital items for each property which will eventually need replacement, the life expectancy of those items and the estimated cost of replacement, taking into consideration the year they will need to be replaced. Replacement reserves analyses will also be performed for each building to determine the adequacy of reserve balances to cover the costs of anticipated replacement needs.

G. Out-of-Pocket Expenditures and Cash Advances

1. Buildings have no petty cash funds.

2. Management employees who incur out-of-pocket expenses are to be reimbursed for them by submitting receipts with check requests, as specified in Section H(2), below.

3. There is a petty cash fund controlled by the facilities manager, to reimburse staff for out- of-pocket parking expenses when using corporate vehicles.

4. Cash advances to pay for tenant-related events may be requested, with the approval of the director of tenant services.

H. Check Requests

1. Payment of Invoices:

a. Invoices for goods and services used in operations go first to each relevant building for initial approval and generation of check requests.

(1/9/2018) 175 b. Verify the accuracy/approvability of the invoice by speaking with any other staff involved, such as maintenance persons, if you did not directly receive the goods or review and approve the services provided. c. General managers are to approve the invoices by preparing check requests, which include the following:

1. The original invoice and receipts (if applicable).

2. A copy of the purchase order (unless it is for an on-going service for which there was an initial purchase order when the contract was approved).

3. A filled out TNDC Check Request form (See Appendix F, Form PM-802), an Excel template found on the “O” Drive (Path: O:/building general managers/) containing the following information filled in:

i. the vendor or contractor’s name (and address) to whom the check is to be sent, and any special payment instructions ii. the invoice # and date iii. the accounting month and year which that invoice is for iv. a brief description of what it is for v. the amount to be paid vi. the proper coding for payment (Codes are found both on the check request form, and on the Annotated Chart of Accounts list found in Appendix Z.) vii. the name of the general manager making the request and date of the request

4. Submittal of the request by a general manager is evidence of his or her approval for the payment.

5. Copies of check requests and all supporting documentation submitted for approval are to be maintained by general managers in files or a binder. Note the date the check request was submitted to your building supervisor.

6. When possible, prepare check requests in batches.

7. Bring check request(s) to your property supervisor for his or her approval by Tuesday at 5 pm.

8. Once approved by your property supervisor, walk the check request over to 201 Eddy to get it time and date stamped.

9. Then walk the check request down to the Accounting Department in the basement of Curran House and submit it to the property management accounts payable accountant for payment.

(1/9/2018) 176 10. Check requests received by Accounting by noon on Wednesday will by cut by Friday of that week and sent to the recipient by Monday of the following week.

2. Payment to Staff for Out-of-Pocket Expenses:

a. Check requests for staff out-of-pocket expenditures should contain most of the information noted above, except that purchase orders and invoices may not be involved.

b. Check requests for staff reimbursements must be accompanied by all related receipts taped to an 8 ½ x 11” sheet of white paper.

c. Besides the general manager making and filing a copy of employee reimbursement requests, each staff person requesting reimbursement should be given a copy of the filled- out check request and the receipts s/he submitted.

I. Payroll

1. Time Cards and Paydays:

a. Workweeks begin on Mondays at 12:00 am and end on Sundays at 11:59 pm.

b. Paydays are every other Friday, with payments for hours worked through the end of the previous week.

c. Employees are to fill out their time cards daily, noting hours worked each day and vacation or sick leave taken.

d. Time cards for each pay period must be submitted to general managers for approval by the Friday of the week prior to the payroll date.

e. General managers click an icon on their computer desktop which gives them access to the ADP timesheet records for all employees in their building. On the Friday preceding each pay day, general managers enter their staff’s hours worked, annual leave and sick leave information on line, and then check a box on the electronic ADP payroll forms indicating their approval.

f. General manager approvals of their building employees’ time cards are reviewed by their property supervisors by the following Monday or Tuesday. Property supervisors then approve them in ADP, and will submit the time sheets to the HR Department. by Tuesday of each payroll week.

g. HR then submits the approved time sheets to ADP to write the checks.

(1/9/2018) 177 h. Paychecks are distributed to building staff on Friday paydays by the general manager or an assistant manager.

2. Overtime:

a. Exempt employees (managers/supervisors) do not receive overtime.

b. If non-exempt employees are asked to work more than 8 hours in any given day, or more than 40 hours per week, they are entitled to be compensated on an overtime basis.

c. All overtime work must be approved by an employee’s immediate supervisor prior to working the overtime hours, except in emergency situations.

J. Budgets

1. Monitoring Financial Performance:

a. Financial performance of TNDC’s buildings is assessed on a monthly basis by the financial manager, property supervisors and general managers and director of property management and TNDC’s board of directors. Budget to Actual Reports generated by TNDC’s accounting software are reviewed for the previous month and analyzed to provide explanations for unusual or excessive actual revenue and expense variances from budgeted amounts. The process involved is as follows:

i. On a monthly basis the Accounting Department notifies the property management financial manager when the revenue and expense statements for the previous month are ready. ii. The financial manager then creates a summary report of revenues and expenditures with current period and year-to-date budget variances for each building on an Excel spreadsheet. iii. The financial manager prints a copy of the Statement of Revenues and Expenditures, and provides a hard copy for each building to their respective general managers for their review and comment. iv. The financial manager also notifies each property supervisor that the “long form” versions of the statement of revenues and expenditures and budget variance reports are ready for their explanation of budget variances. v. Property supervisors email to their general managers copies of their building’s variance reports for their review and comment. vi. Property supervisors get these “long form” reports off of the “O” drive, and review/analyze year-to-date excessive variances above or below budgeted revenue and expense amounts with the buildings’ general managers. vii. The property supervisors provide written explanations in the “Notes” column of the long form to explain the excessive variances on the summary reports.

(1/9/2018) 178 These then get reviewed with the financial manager and director of property management in a meeting at the end of every month. viii. The financial manager then prepares a monthly “SnapShot Report” summarizing how each building is performing, which goes to property supervisors, the director of property management and the TNDC board’s property management and audit committees. ix. Where excessive expense variations are controllable, corrective actions are discussed by property supervisors and general managers and then implemented. x. Where there are excessive accounts receivables from tenants, or excessive vacancies, corrective actions are also discussed by property supervisors and general managers and then implemented.

2. Budgeting Processes: Budgets are “plans” for each building which record in financial terms realistic revenue-expense goals for the next year. They serve as guides to both forecast and monitor financial performance of each property. Two types of budgets are prepared each year for buildings: Operating Budgets and Capital Improvements Budgets.

3. Operating Budgets:

a. The operations budgeting process for each TNDC property begins in the spring of each year prior to each new budget year, which runs from the following January 1st through December 31st.

b. The budgeting process is coordinated by the financial manager. Property supervisors are the principal persons responsible for developing annual operating budgets for the buildings in their portfolios, with significant assistance and input from the general managers of each building.

c. Operating budget projections are based on:

1. An analysis of current year experience of rent revenue collections and operating expenses.

2. Estimates for increases in operating expenses, taking into account estimated inflationary factors, known increases, and past operating experience--especially for staff salaries, utilities, contract services, and maintenance.

3. Estimates regarding appropriate rent increases, which normally take effect in April of the following year for non-Section 8 clients, after they have been given 60-day written notices of rent increases.

i. TNDC has a goal of limiting its tenant-paid rents to levels which are as affordable and competitive as possible--while still providing sufficient

(1/9/2018) 179 revenue to pay for each building’s operating expenses, any debt service, and required deposits to reserves.

ii. Rent levels, after rent increases, must be kept within tax credit and other subsidy program limits. Some subsidy programs require prior agency approval of operating budgets and proposed rent increases.

iii. In most cases, TNDC’s current rent rates are well below published maximum levels, so that reasonable rent increases to cover estimated increased operating expenses normally do not exceed subsidy program or tax credit limits. However, these should always be double checked, by property supervisors and the compliance manager--especially for tax credit buildings, for which the maximum rent levels are usually published in February or March of the budget year. If any budgeted rent increases do exceed new published limits (also taking into account any new or current utility allowances), they must be re-adjusted downwards to be within the allowable maximums.

4. Tenant-paid rents collected in the HUD properties and for units occupied by residents receiving Section 8 subsidies are based on increases or decreases in their incomes as determined by their annual recertifications. However, total rent revenues for the properties during the next budget year must be projected on the basis of estimates of increases in the contract rents granted by HUD or the San Francisco Housing Authority for applicable units. d. Estimates are also made for other property income--including fees, laundry income, retained security deposits to pay for uncollected rents or damages by tenants, etc. e. Draft operating budgets are to include comments in “budget footnotes” regarding assumptions used for significant increases or decreases in revenue and expenses. f. Once budgets are drafted by property supervisors, they are to be reviewed and commented on by general managers, finance manager, and asset manager, and the executive team. g. Budgets must be approved by the director of property management and TNDC’s Board of Directors. h. After being approved, each building’s operating budget will be entered into MIP, TNDC’s corporate accounting software program, by Accounting Department staff prior to the beginning of the new budget year.

(1/9/2018) 180 4. Capital Improvements Budgets:

a. TNDC’s asset manager is the principal person responsible for developing annual capital improvements budgets—working closely with the facilities management staff, property supervisors, and general managers.

b. The capital improvements budgeting process begins during the summer preceding the budget year.

c. Information analyzed and taken into consideration when developing a building’s capital improvement budget includes:

1. Annual inspections by facilities management staff to review the status and conditions of basic building systems.

2. Significant input from each building’s lead maintenance person and general manager regarding near-term capital items replacement and improvement needs.

3. Review and periodic updates of the building’s Replacement Reserve Analysis which includes information about the remaining useful life of equipment and building systems, projected replacement costs and the status of the building’s available replacement reserve account funds.

d. Draft capital improvements budgets are to be reviewed by general managers, property supervisors, the facilities manager, the finance manager prior to approval by the director of property management and Board of Directors.

e. Once the capital improvements budgets are approved, property management and asset management staff should develop a schedule to implement the proposed capital improvements for the following year and to secure any necessary approvals from limited partners, lenders or other relevant stake-holders for withdrawals from a building’s replacement reserve funds to pay for them.

K. Reports

A variety of reports are generated to document resident and management activity and to analyze the occupancy and financial health of TNDC’s properties:

1. Weekly Reports By General Managers:

a. Weekly reports are to be created and submitted by general managers by the end of the day on Fridays (hence their being commonly known as “Friday Reports”).

(1/9/2018) 181 b. The Excel Workbook templates for the Weekly Reports are found on TNDC’s network “O” drive path .

c. Click on the “New Weekly Report” icon and immediately save the blank electronic report form that appears with a file name that includes your building’s name and the week it is for (e.g., “DaltHotel_7/27/07”).

d. Fill in all of the information required in each tab (spreadsheet) of the Excel Workbook, including:

1. Vacant units, including, unit # & type, the dates they were vacated and their current status for re-renting 2. Pending applicants and their current status 3. Approved applicants 4. Move-ins, including unit # & type, name and move-in date 5. Move-outs, including unit# and type, name, move-out date, and reason for move-out 6. Move-out notices given by tenants, including unit# & type, name and reason for moving 7. Resident transfers to other units, including both unit numbers & types, name and reason 8. A listing of tenants who currently have delinquencies, including unit# & type, name, current delinquent amount, action(s) taken by management and current status 9. A listing of special charges to residents during the week, including name, unit# &type, nature of the charge and amount 10. Payment plans, including name, unit# & type, description of plan and remaining balance 11. Unlawful detainer actions currently being processed by TNDC’s attorney, including name, unit#, reason, and amount owed 12. Preventive maintenance performed during the week

e. When completed, send an email to your property supervisor with the Weekly Report attached.

2. Monthly Project Status Report (PSR) Updates by General Managers:

a. By the end of each month, general managers are to submit an updated PSR with updated information to reflect any move-ins and move-outs in their building during the month.

b. Send an email to the compliance manager and property supervisor with a copy of the updated PSR attached.

(1/9/2018) 182 3. Monthly Building Inspection Reports By Property Supervisors:

a. Each property supervisor is expected to do a thorough walk through inspection with the general manager of each building in his or her portfolio.

b. That inspection is to be documented on a Monthly Property Supervisor Inspection Checklist Report (See Appendix F, Form PM-706).

c. By the end of each month, property supervisors are to send this report to the financial manager and property management director.

4. Monthly Statement of Revenues and Expenditures Report by the Financial Manager:

a. After notification by the Accounting Department that financial reports for the previous month are ready, the financial manager will create Statement of Revenues and Expenditures/Budget-to-Actual report spreadsheets for each building to be reviewed by each property supervisor and general manager for accuracy and to provide comments regarding significant budget variances.

b. See Section J (1)(a), above, for a detailed description regarding the review and comment process for this report.

5. Monthly Building “SnapShot” Reports by the Financial Manager:

a. Based on information garnered from the reviewed Statement of Revenues and Expenses/Budget Variance reports noted in Sub-section 4, above, plus information from weekly delinquency reports and the property supervisors’ monthly building inspection reports, the financial manager prepares for each building a “SnapShot” report.

b. SnapShot reports summarize the performance of each building for the year-to-date, including, occupancy rates, total revenues and expenses, net cash flow, the aged status of tenant rent receivables, and the results of property supervisors monthly building inspections.

c. SnapShot reports are given to the director of property management and the TNDC Board of Directors’ Property Management and Audit Committee for their review and comment.

(1/9/2018) 183 XIII. TENANT SERVICES

A. Introduction.

TNDC has always viewed its housing as “more than a roof”. In addition to developing and managing high quality residences, it also provides to its residents the opportunity to take advantage of voluntary services to enable them to enhance their lives, address whatever individual needs and problems they might be experiencing, stabilize their tenancies, and establish relationships in a supportive community. These services are provided primarily through TNDC’s Tenant Services Department. However, all management staff also have an important role in this by working cooperatively and in partnership with social workers and supervisors assigned to their buildings.

B. The Social Work Unit

1. Staffing: The Social work Unit is a division in the Tenant Services Department comprised primarily of social workers who are assigned to work in TNDC’s residential developments directly with residents and managers. Depending on the size and nature of the project, there may be one or two social workers assigned, or one social worker may provide services to several small buildings. The unit is headed by a manager who directs, supervises and coordinates the activities of social work staff serving residents.

2. Goals: The Social Work Unit has four core goals for working with residents and management in TNDC’s buildings:

a. To assist tenants with housing stabilization;

b. To assist tenants with housing retention;

c. To promote the independence and self-sufficiency of tenants; and.

d. To foster and assist with developing and maintaining a sense of community.

3. Roles: The Social Work Unit has two principal roles relating to property management:

a. Initial review and screening of potential applicants for Shelter Plus Care and Department of Public Health/Direct Access to Housing (DPH/DAH) units. See Chapter II: Marketing & Application Procedures, Sections C (4) (c and d) for a description of

(1/9/2018) 184 social workers’ roles in the application procedures for these two programs.

b. The provision of a variety of direct and indirect services to building residents and managers. See the following section for a summary of these services.

C. Support Services Available

The social workers assigned to buildings offer the three general types of direct and indirect social services, all of which are voluntary for residents to take advantage of:

1. Resource Assistance: Helping residents to get resources they need to stabilize and improve their lives:

a. Assistance with acquiring the basics:

1. Food

2. Clothing

3. Furniture

b. Assistance to get and retain public benefit assistance to which residents my be entitled

c. Information and referral services to address individual needs or problems, primarily through external sources:

1. Medical care

2. Mental health care and counseling

3. Substance abuse services

4. Peer support groups

5. Job training and employment services

6. Education services

7. Parenting classes

8. After school programs

9. Crisis intervention

(1/9/2018) 185 10. Direct counseling with individuals and families

2. Housing Retention Assistance: Tenant Services staff assists residents and management with situations where retention of their housing with TNDC may be in jeopardy due to non- payment of rent or lease and rules violations:

a. Helping to secure emergency rent payment assistance, if possible.

b. Counseling and encouragement for residents to pay their rent, if they have the resources to do so, or comply with a payment plan, if one has been entered into with management.

c. Counseling regarding lease, rules, compliance issues and problems in order to help residents correct whatever behavior is modifiable so that they may retain their housing.

d. Counseling and assistance to help residents move-out, when necessary and appropriate, so that they will not have an eviction on their records.

e. Counseling and assistance to help residents find other suitable emergency, transitional or permanent housing, if they must move from TNDC units.

3. Enhancing the sense of community and quality of life in TNDC buildings:

a. Working with management staff and residents to organize and implement community building events, celebrations and activities for fun and socialization.

b. Providing assistance or referrals for conflict resolution.

c. Assisting residents to meet, discuss and take action on issues that concern them.

d. Organizing memorial services for deceased residents, if appropriate.

D. The Social Worker/Property Management Relationship

As noted above, social workers and property management staff are a team. Each has different roles, but objectives are similar: Both want residents to have successful tenancies in a positive, civil, secure and supportive environment, and also to have the opportunities to improve their lives, if they need or want to.

1. Regular Communication:

(1/9/2018) 186 a. Frequent, open communication is essential for the social worker – management relationship to work effectively. Even though there are certain confidentiality limitations noted below, there is no major impediment for each to keep the other informed of potential or actual problems and issues. The earlier these are identified and discussed, the better because this may help to prevent small or minor problems from becoming serious ones that could result in destabilization of residents’ lives or threaten their tenancies.

b. General managers and their building’s social workers are to have weekly meetings. Topics to be covered during these meetings include:

1. Delinquencies

2. 3-Day and 10-Day Notices

3. Payment Plans

4. Incident Reports

5. Pest Control/Housekeeping Issues

6. Move-ins/Move-outs

7. Community Activities and Events

8. Other Critical or Pressing Mutual Concerns

2. Confidentiality Issues: Both managers and social workers communicate with and gather information from applicants and residents. This information is not always the same, and some of it may be confidential. Managers and social workers have professional obligation to keep certain confidential information confidential, unless the residents have provided authorization for it to be revealed and discussed. There is sometimes a fine line between what is confidential and what is not. But each party needs to respect the other’s need not to discuss certain things that clearly are confidential or which s/he believes is confidential. However, confidentiality issues do not prevent cooperative and productive communication between social work unit and building property management staff.

3. Information Which Can Be Shared and Discussed: While things like entire tenant files should not be shared with social workers, and things like medical or psychological documentation should not be shared with managers, there are very many types of documents and information which can and should be shared and discussed between mangers and social workers. They include:

a. Letters, memorandums or notes to files relating to rules and lease violations.

(1/9/2018) 187 b. Eviction notices, including:

1. 3-Day/10-Day Notices to Pay Rent of Quit

2. 3-Day/10-Day Notices to Perform Covenant or Quit

3. 3-Day Notices to Quit/10-Day Notices to Quit

4. 30-, 60- and 90-Day Notices to Quit

c. Incident reports.

d. Notices of Unit Abandonment and Abandoned Personal Property.

e. Notifications of application approval to applicants for Shelter Plus Care and DPH/DAH subsidized units.

f. Shelter Plus Care program rule violation notices.

g. Information when a resident has died.

h. Tenant complaints submitted in writing.

i. Tenant grievances submitted in writing.

j. Payment plans.

k. Information about temporary hospitalizations or incarcerations of residents.

4. Contacting Social Workers: Most large buildings have offices for the social worker assigned to work in them. If an emergency situation occurs during normal office hours, if the social worker is not at the building, management staff may call their pager number which is listed in Appendix E. Situations which might be considered to be emergencies include:

a. Life or death situations

b. A person with a mental illness seriously decompensating

c. Domestic violence disputes

d. Child abuse or elder abuse situations

e. The death of a tenant

(1/9/2018) 188 f. In the aftermath of a fire or other building emergency which has created the need for emergency relocation of tenants.

Note that in any event involving violence, the police should be called first. After hours, managers should page the social worker who is “on call” at the time on the pager rotation list provided to general managers and assistant managers by the Tenant Services Department.

5. Conflicts and Misunderstandings: In any situation such as this, where there are different people and roles intersecting, there is always the possibility that perceived or real “boundaries” involving authority and power may be crossed. Management’s orientation is to protect the interests of the building, all residents, and people who work in it. In some cases, the social worker’s primary focus may be on the interests and welfare of an individual. These can sometimes conflict. In the process, there may come be a perceived adversarial relationship created. In turn, this may lead to misunderstandings, frayed nerves, and feathers ruffled between the parties. When managers and social workers see this happening, they should try to:

a. Sit down with one another, acknowledge the situation and figure out a way to work cooperatively to resolve it.

b. If the problem is still not resolved or agreement cannot be reached, bring the building’s property supervisor and social work unit manager into the discussion to help resolve the issue.

(1/9/2018) 189 XIV. OFFICE & STAFF MANAGEMENT

A. Introduction

General managers must manage the operations, physical facility and people in their buildings. This chapter describes some key procedures and issues involved with the organization of management offices and the process of supervising and managing staff.

B. Offices

General managers and other staff meet with applicants, residents, guests and employees in their offices and this is where 70% of your work gets done. Within certain limits, managers have some flexibility in how you organize your offices. However, it is your responsibility to maintain your office(s) in a systematic, organized and orderly manner to:

 keep the contents secure;  display a professional appearance;  have a logical system so that not only you know “where things are”, but they can also be found by other staff, if necessary, in your absence.

C. Office Furnishings and Equipment

1. Standard Furnishings and Equipment: Buildings of different sizes are staffed differently. However most projects with offices where general managers are based will have the following furnishings and equipment:

 Desk(s) with at least one locking drawer  Desk chair  Side chairs  File cabinets, at least one of which is locking and fire resistant  Computer(s) and monitor(s)  Copier/printers  Fax machine  Telephone with voice mail or answering machine  Nextel phone(s)  Bookshelves for manuals and reference materials  Cabinets or shelves for storage of office supplies  Locking key box  Calculators with tapes  Digital camera  First aid kit

(1/9/2018) 190  Security camera monitors  Bulletin board and/or white board  Employment notices and posters to comply with labor law  Signs for posting office hours and emergency numbers

D. Office Security

Offices contain expensive furnishings and equipment, confidential resident records, rent collections and keys to units. For this reason, all management staff must be constantly aware of the security of their office and contents. Security measures are described in greater detail in Chapter XII: Security and Safety. But, several key points are briefly summarized here:

1. Keep the office locked when you or another responsible staff person is not in it.

2. Keep rent checks an money orders in locked drawers, and always stamp them with the bank “For Deposit Only” endorsement stamp immediately after receiving them.

3. Don’t keep large amounts of rent or security deposit payments in the office. Transmit them to Accounting daily.

4. Keep current resident files with confidential information in locked, fire resistant file cabinets.

5. Keep the key box bolted to a stud in the wall and locked at all times. Keys in them are to be marked and coded so that a non-management person would not readily know what unit a particular key would work for. Keep the key code sheet in a separate file.

6. Protect passwords to computers. Keep a list of staff’s passwords in a secure place, which only a general manager or assistant manager would have access to.

E. Phones

1. Outgoing Messages: Office phone outgoing messages should identify the building office and let callers know that if they are calling about a life threatening emergency, they should call 911. The message should also include a phone number callers can use to report a maintenance emergency, or refer them to the building’s desk clerks, if you have them, who can then report the emergency to the appropriate person.

2. Personal Use: Limit personal use of office phones by staff. Long distance calls (outside of the San Francisco Bay Area) should be made by staff using their own personal phones or calling cards.

(1/9/2018) 191 F. Files

1. Blank Forms: TNDC’s Property Management Department’s system of numbered forms based on their type, is described in Chapter I: Introduction, Section D (4), and copies of all of them are included in Appendix F. The originals of the forms are available on the Property Management Forms folder on the “O” Drive. Whenever they are updated, the new version will be placed on the “O” Drive and hard copies of the new form will be sent to all staff persons with Property Management Operations Manuals.

a. Each building is to also maintain a set of files for a reasonable number of hard copies of all blank forms in a file drawer, filed by form number.

b. Keep the original copy of the form in a clear plastic sheet protector at the back of each numbered file.

1. Copies are made from this original, and if and when a form is revised, replace the new original in the file protector, make new copies from the new original, after you dispose of the old original and all old copies in that file. You will know “new” from “old” because the new version will have a later date in its footer, next to the form number at the bottom left corner of the form.

2. For forms that are complex and not used frequently, you can also fill-out a sample using red ink, and place on the back side of the plastic sheet protector to serve as a reference for you or other staff on how to properly fill out the form.

2. Current Resident Files:

a. Keep these files in a locked fire resistant file cabinet.

b. File current resident files by unit number. (Each file folder tab is to display the unit number, head of household’s name, and move-in date.)

c. The contents of the 6-sided (or 8-sided for HUD buildings) partition folder tenant files must be ordered according to the system shown in Chapter IV: Leasing, Orientation & Move-In, Section B and in Exhibit 4-1.

3. Former Resident Files:

a. Transfer file contents to manila folders in the closed file order system specified by the Compliance Department

(1/9/2018) 192 b. Place the file folders of residents who have moved out in a separate file cabinet drawer.

c. Write the move-out date to the file folder tab for all former residents, name of the household head and unit number.

d. Place a red dot on the tab for all former tenants who owe TNDC money.

e. Group them by year of move-out, and file them alphabetically within that grouping.

f. If storage space is a problem, discuss with your property supervisor how many years of former tenant files to keep in the office and where the rest are to be archived.

4. Denied or Dropped Out Applicant Files:

a. In a separate cabinet drawer from current resident files, maintain the application files for applicants who were either denied, or who dropped out of the process, themselves.

b. Group them by year of application date, and alphabetically within that grouping.

c. Retain these files for at least ?? years, until it is past the time when a discrimination complaint might be filed.

5. Administrative Files: The following information is to be kept in administrative files:

a. Emergency contact information

b. Vendor contact and contract information

c. Copies of invoices received

d. Check requests submitted to Accounting (some managers use binders for this)

e. Key code chart

f. Copies of citations the building has received from public agencies

g. Copies of Incident Reports

h. Copies of licenses and permits for the building

i. Correspondence

1. General

(1/9/2018) 193 2. Property Management Department memos

3. Chronological file for correspondence sent out by building management

j. Employee Time Card/Payroll documentation

k. Reports

1. Copies of weekly and monthly reports sent out

2. Copies of Rent Roll and other financial reports received

3. Maintenance and inspection reports

G. Signs

Signs should be positive and informational. Signs which are negative in tone can make properties look and feel like depressing places to live. Go for the first approach in your building.

1. Generate signs on your computer, not by hand, so that they will look attractive.

2. Instead of having a lot of negative and foreboding signs starting with a “No” or “Don’t”, start with words like “Please” or “Thank you” (It’s the difference between a sign that reads “No Smoking” or one that reads “Thank You For Not Smoking”. They both result in the same behavior, but one sounds a lot more positive and friendly.)

3. Each building will have, at a minimum, signs:

a. informing residents of management office hours;

b. indicating emergency numbers to call after hours and weekends;

c. indicating emergency exit routes posted on residential floors;

d. informing residents that cash is not accepted for payment of rent and fees

e. displaying Proposition 65 worker safety information from the Facilities Department.

4. Other required building postings include:

a. business licenses;

(1/9/2018) 194 b. elevator and boiler permits;

c. state and federal employment information posters in places where all employees can see them.

H. Staff Management and Supervision

Anyone reading this manual has management, supervision, evaluation and very likely, staff hiring and firing responsibilities. General managers have a considerable amount of autonomy on how they manage their buildings—within guidelines outlined in this manual. Your buildings will operate more effectively and provide high quality housing for residents to the extent you can build teams of dedicated, trained staff. Managers’ roles involve communication, motivation, guidance, training and oversight.

1. Resources:

a. This property management operations manual cannot be a substitute for The TNDC Employee Handbook (personnel policies) and the Human Resources Department’s Supervision Manual. These are the primary resources you should be knowledgeable about and rely on for the performance of your managerial and supervisory functions.

b. All staff have a training budget. Managers should attend courses each year which enhance or refresh your knowledge of managerial and supervisory and skills and techniques and keep you apprised of the law governing hiring, supervision and discipline matters.

c. Appendix O; Includes an Organization Chart for your building, followed by job descriptions created by the HR Department for all of the relevant positions allocated to your building. Developing staff work plans and evaluations of their performance should relate to each employee’s job description.

d. Appendix R includes some useful tips for building managers and supervisors in the following areas, which you may refer to, as needed:

1. Employee Hiring – Section A 2. Employee Training – Section B 3. Performance Evaluations – Section C 4. Progressive Discipline – Section D 5. Miscellaneous Supervisory Issues – Section E

(1/9/2018) 195  Tab 15 Is Reserved As A Place For Management Staff To Insert Copies Of Useful Documents And Instructions Not Otherwise Included In This Manual Elsewhere.

 Place Copies Of These Miscellaneous Documents And Instructions In Tab 15 To Have Them Available At Your Fingertips For Easy Future Reference.

(1/9/2018) 196 (1/9/2018) 197

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