AmeriNat offers experience and custom solutions with Homeowners Assistance Fund (HAF)
Emergency Rental Assistance and the Homeowner Assistance Fund (HAF) programs included in the American Rescue Plan Act have been designed to mitigate financial hardships associated with the coronavirus pandemic.
Many State Agencies charged with the oversight of these programs will seek out vendors to be better positioned to execute quickly. In AmeriNat’s support of State Agencies with the Hardest Hit Fund program over the last decade, certain key provisions stood out as key to establishing successful vendor/State Agency relationships.
How to handle applicant nonresponse?
The volume of nonresponse is an unknown, even after comprehensive program planning. Simple and fewer documentation requirements encourage high levels of response, and ease of system access is important. Consider the following:
In prior programs, electronic upload has proven to be a challenge for some respondents. Whatever system is used by the Agency, it should allow for cell phone uploads, as many applicants have that as their only efficient means of replying.
Even with efficient upload mechanisms, some applicants will have technical challenges. Make sure that your vendors whoare communicating with applicants know either a) how to help the applicant with technical challenges or b) what number torefer the applicant to for assistance.
Nonresponsive applications take resources away from other renters and homeowners who are motivated to get through theprocess and receive relief quickly. It is important for Agencies to clarify what the vendor responsibilities are for applicant documentation follow-up, and for how long the vendor should be carrying these tasks out. Be specific and lean on your vendorfor suggestions based on what they have seen work successfully in past programs. At a minimum, it is best to define:
How many attempts should be made to an unresponsive applicant?
How many different methods of communication should be utilized? On some programs we have worked with, we havechased down potential applicants via calls, emails and text messages sent at different times of the day to secure additionalapplications coming through.
How many days after the latest attempt to a nonresponsive applicant should the vendor wait before withdrawing or closing theapplication?
Lastly, consider establishing a secondary outreach effort for nonresponsive files. This might involve a Housing CounselingAgency or a different arm of your processing and outreach vendor. It could even involve the acceptance of paper applicationsif a process has been established for those to be received and worked in a timely fashion.
How to set up your vendor in your system
The goal in system set up is to make the flow of work as seamless as possible. Each seam in a task presents an opportunityfor something to fall through the cracks. The Agency’s processing and underwriting vendor should ideally be allowed oneor more administrative log-ons to your system. That way, you can move files to your vendor in bulk. They can bear the costand time of distributing the files among their staff for processing and underwriting. (And include a contract provision orSLA that files are to be assigned the same day they are received). This allows your vendor to advance files through their different processing and underwriting teams. It also enables them to move files back and forth between their staff members with ease, and head off delays that otherwise might arise because of planned or unscheduled absences.
If your system provides reports that can provide critical information such as status, days elapsed, etc., make this reportingavailable for your vendor. If they can pull their own reports out of the system, make sure you share with them what reportsyou consider the most important. To sufficiently manage work flow they will likely have their own tools available, but itis important to share what you are seeing and what you consider most important. That way, you more easily keep yourvendor “on the same page” with you. A strong vendor relationship is based on a partnership, and your vendor should beable to use available data to help them provide the most value to the partnership.
General program structure and tools
Make sure your vendor has experience with direct contact to your audience – including those renters, landlords and homeownersmost likely to be applying with your program. This is a niche area – they should work in it.
Clear and succinct eligibility criteria will streamline decisioning, increasing output and minimizing cost.
However, even with the best criteria, position the program for change. Be flexible with the ability to change program parameters thatget in the way of efficiency or execution and make the change process simple and efficient. If you can, structure flexibility into your program so that changes within defined limits can be made without Board, Executive or even Manager approval. Set the guardrails, and then give your supervisory staff as much freedom as possible to make quick changes.
This leads up to the primary component of a successful vendor relationship – frequent communication. The start up of theprogram will surface unforeseen challenges and the processing and underwriting vendor will have their fingers on the pulse ofapplicant problems. Make sure you are getting this feedback so you can adjust around the trouble-spots. Frequent communication helps your vendor as well. Even the most seasoned processing and underwriting teams will see efficiency challenges during the first fewdays and weeks of a program, but this should even out quickly. Weekly status calls are important at the start of the program.There will be kinks to work out and the most efficient way to address them is to have frequent, open communication. As theprogram matures, moving these to bi-weekly or monthly makes sense.
Another important control is effective status tracking and mechanisms to optimize pipeline management and follow-up efficiency.Most systems already have this function in place, you just need to be able to plug your vendor into it.
And lastly, fraud. The Agencies and their vendors should be talking about this. Explore what each party has seen in otherprograms and incorporate those into your procedures. Your vendor should include these items in their training material for staff.
AmeriNat has an extensive history working with states and other agencies on “emergency” funding programs. AmeriNat handledthousands upon thousands of applications under the Hardest Hit Fund program. AmeriNat has also been instrumental withEmergency Rental Assistance programs and will be involved with the Homeowner Assistance Fund as well.