URBAN SOIL / TIERRA URBANA
MANAGEMENT PLAN
(v.2014)
Table of Contents
- Project Description
- Staffing
- Marketing
- Orientation
- Rent Collection
- Maintenance
- Energy Conservation
- Security/Emergency Planning
- Finances and Accounting
I. Project Description
Urban Soil / Tierra Urbana (“USTU”) is a Limited Equity housing cooperative comprised of 45 affordable apartments in two separate two-story buildings located in the mid-Wilshire region of Los Angeles. Six units are covenanted for very low income tenants in the 117 Bimini Place building. Apartment square footage ranges from 380 to 1,000 square feet.
The 117 Bimini Place building and the Bimini Terrace building (127-133½ Bimini Place) (collectively the “Property”) are both owned by USTU. The land beneath the buildings is owned by the Beverly Vermont Community Land Trust and leased to USTU pursuant to a groundlease. USTU is governed by its Board of Directors, and the Property is managed by a paid Resident Manager.
This management plan sets forth general policies and procedures to assure that USTU provides a high standard of housing for its residents, generally, and its low-income households, in particular. The following lays out objectives for management of USTU:
USTU will be well-managed and properly-maintained to provide decent, safe and sanitary living conditions for its residents.
USTU will be a financially-stable enterprise that successfully operates within its budget so that all expenses, debt service and reserve payments are covered by operating income (which includes assessments on its shareholders).
USTU will be managed in accordance with a regulatory agreement with the appropriate agency in the City of Los Angeles, and in compliance with all local, state and federal laws.
USTU will remain a permanent, affordable housing resource in the community.
USTU will continue to provide a pleasant and secure living environment for its residents and the surrounding neighborhood.
USTU will be a catalyst for positive relationships among the residents, management staff and residents of the surrounding neighborhood, with open channels of communication.
This Management Plan will be reviewed periodically by the USTU Board of Directors. It will be updated, as necessary, if there are significant changes in management policies and procedures of USTU or there are significant changes in state landlord-resident law, or requirements from lenders and other funding sources. The USTU Board will review and approve all changes.
II. Staffing
The current USTU Resident Manager(s) are John and Sandy Maliga.
The Resident Manager is responsible for the day-to-day management and maintenance of the Property and is supervised by the USTU Board of Directors, primarily through its Management Committee. The USTU Board of Directors will review the financial reports, to assure regulatory compliance, and to assure that its various reporting responsibilities are being met. The USTU Management Committee will meet with the Resident Manager on a monthly basis to discuss any problems or issues regarding the Property. The USTU Board will review and approve proposed annual operating budgets.
A resident Maintenance Worker is also available on a contract basis. The Resident Manager is responsible for supervising the Maintenance Worker and any additional contracted workers.
The USTU Board of Directors will maintain a Management Committee to provide oversight of managing The Property. The Management Committee will be comprised of two subcommittees: The Finance Management Committee responsible for finance and budgeting on a monthly and annual basis; The Operations Management Committee will be responsible for building operations and maintenance (i.e. tenant relations, repairs and maintenance). The USTU Board Treasurer shall serve as a member of the Finance Management Committee. The subcommittees will meet on a monthly basis.
III. Marketing
The Resident Manager, in collaboration with a Board’s Membership Committee, will be responsible for the lease-up for the six covenanted units. The rental office, from which the Resident Manager works, is located on the first floor of the 117 Bimini building immediately adjacent to the building’s main entrance and lobby. The office is already furnished.
USTU’s potential market includes both our immediate neighborhood in Koreatown, the greater Los Angeles area, and anyone interested in sustainable or cooperative living practices around the country. Our website serves as a major source of information for potential residents; and, when necessary, we will also conduct the following other outreach activities: 1) post bi-lingual English/Spanish notices in local schools and community centers in Koreatown and the surrounding neighborhoods; and 2) post bilingual “for rent” ads in local newspapers and websites including the Downtown News, LA Weekly, La Opinion, and Korea Times.
Income eligibility is determined using tax returns, pay stubs, and/or documents indicating receipt of public benefits. The selection criteria for residents are based on the membership process outlined in the USTU Bylaws.
IV. Orientation
Renter expectations will be managed in part by the Rental Agreement and the Coop Rules (see attached) to be signed by renters upon move-in.
Violations of such rules will be dealt with in the following manner. Minor violations will trigger verbal warnings. If they are repeated, written warnings will be issued. Major and/or continuous violations will be heard by the USTU Management Committee. In compliance with the Davis-Sterling Act, the USTU Management Committee will then decide on what action(s) to take. Actions may include fines, sanctions from certain community benefits, and eviction.
The USTU Membership Committee will conduct new resident orientations on a periodic basis. The orientation includes the history and structure of the community, and community rules and agreements. Upon move-in, the Resident Manager will assist the new resident in becoming familiar with their lease and the rules of the building, and their new apartment, including its equipment and fixtures. New residents will also be assigned a “liaison”, a resident who will continue to orient the new resident to the community during the first six months of residency.
Move-ins are scheduled on a case-by-case basis after all cleaning and repairs to a unit is complete.
V. Rent Collection
Rents are required to be dropped into a locked box in the USTU office at 117 Bimini Pl #101. Rent will be due on the 1st of the month with a five-day grace period. Rent will be considered late if received after the 5th day of the month. A “Three Day Pay or Quit” notice will be issued if rent is not paid by the 15th of the month.
If rent has not been paid, tenants will be sent an e-mail rent reminder on the 4th day of the month. Tenants will be contacted by email and/or written notice on Day 6 if rent has not been received. Tenants will be served with a “Three Day Pay or Quit” notice if no rent has been submitted to the Resident Manager by the 15th of the month. A $10 fee will be charged when rent is 10 or more days late. If a tenant refuses to pay rent or make arrangements via a written plan approved by the Management Committee within 30 days of being late, an unlawful detainer will be issued to the tenant.
Each tenant will pay a $300 security deposit at the point of move-in and lease signing. The Resident Manager will take a photographic inventory of the condition of the unit prior to the new tenant’s move-in. When the tenant has vacated the unit, an inspection of the unit will be made. Any damages beyond normal wear and tear will be deducted from the security deposit in addition to a cleaning fee if resident has not cleaned the unit. The balance of the security deposit plus any interest due at the then legally-required rate will be returned to the departed tenant within 21 days after moving out. If damages are in excess of the security deposit, the Resident Manager will issue an invoice for the amount due to the departing tenant. In the event that the departed tenant does not pay the amount due for damages within 60 days, the USTU Management Committee will determine if a claim will be made against the tenant. The Resident Manager is responsible for collecting any monies due to USTU.
VI. Maintenance
The Board of Directors agrees, for the entire Term of this Agreement, to ensure that the Resident Manager maintains all interior and exterior improvements, including landscaping, on the Property, in good condition and repair and in accordance with all applicable laws, rules, ordinances, orders and regulations of all federal, state, county, municipal, and other governmental agencies and bodies having jurisdiction and all their respective departments bureaus, and officials, and in accordance with the following maintenance conditions.
Custodial and Grounds Maintenance:
Custodial and grounds maintenance involve a planned program of routine daily, weekly and monthly activities to maintain the cleanliness, healthfulness and appearance of the Property. Duties include: regular site inspection, cleaning of common areas (as described below), and pick up of litter on the grounds. Site inspections are performed by the Resident Manager and custodial maintenance is performed primarily by contracted maintenance and cleaning workers under the supervision of the Resident Manager. The Resident Manager is responsible to ensure daily and weekly common area cleaning occurs:
Daily (Weekdays):
Patrol site
Pick-up litter and remove shopping carts.
Inspect for any damage or malfunctions; write a maintenance service request for any problems found.
Sweep entry area, sidewalks and trash dumpster area.
Weekly:
Sweep and clean debris from laundry rooms, community room, lobby, and empty all waste baskets. Vacuum the corridors and clean washers and dryers. Take garbage and recycling bins to the street and return them.
Landscaping maintenance includes mulching, weeding, tree and shrubbery trimming.
The aforementioned work may be assigned to contract workers, and such work will be supervised, monitored and inspected by the Resident Manager.
Emergency Maintenance:
An emergency involves damage, breakdown or malfunction of a building system or component which may pose an immediate threat to the health or safety of the residents or the Property. Immediate response is needed to abate hazards which pose threats to persons or property.
To report emergencies, residents are to contact the Resident Manager by phone or at the office either during or after normal office hours. If appropriate, residents will also contact the police or fire department. The Resident Manager will maintain a list of local area contractors to call for immediate response to an emergency situation.
The Resident Manager is responsible for determining whether the problem is actually an emergency and, if so, for abating the problem or arranging for a contractor to remedy the problem. Residents will be informed of these procedures and be provided with the relevant phone numbers during their orientation and at resident meetings and activities.
Upon move-in, the Resident Manager will explain to residents what constitutes an emergency and what does not. For example, fires, floods, gas leaks, water or electric service interruption or sewer blockages, roof leaks, refrigerator failure, broken windows or doors on the ground floor that pose a security risk to residents and to the building will constitute an emergency.
A leaky faucet, broken second story window in the spring, summer or fall, a closet door off its track, or a stopped-up toilet where there is another functioning toilet accessible will not constitute an emergency. While some of them might be “urgent,” these types of problems normally can wait until the next workday to be fixed.
For fire emergencies, the Resident Manager or residents will call 911 to reach the fire department. After calling the fire department, if the fire is small and can be put out safely by a resident using one of the fire extinguishers mounted in the buildings, it may be done. If there is still a fire when the fire department arrives, it is the fire department’s responsibility to put out the fire. It is the Resident Manager’s duty to provide notification to the Management Committee of the emergency and any damage.
If residents lose their keys or are otherwise locked out of their units between 8:30 a.m. and 5:30 p.m., they may go to the Resident Manager’s office to be let into their unit or get a replacement key for $10.
Corrective Maintenance:
Corrective maintenance involves repairs or replacement of items which are not working or damaged. These are identified through service requests from residents and problems found during inspections. When maintenance work is approved by the Resident Manager, both shall be documented on work orders.
Residents may come to the Resident Manager’s office or call the Resident Manager to make a maintenance service request. The Resident Manager will then establish the priority in which it shall be handled, and provide a maintenance work order to the Resident Maintenance Worker or other contractor as appropriate. Inspections by the Resident Manager and/or contractors can also lead to maintenance work orders generated by the Resident Manager. Other than routine custodial and grounds maintenance, all maintenance work performed at USTU must be documented. Additionally, all maintenance requests shall be dated at the time they are received and at the time the work has been completed.
A priority system is used for handling corrective maintenance items, based on the seriousness of the problem:
Emergency items, as noted above, must be abated immediately and should be repaired within 24 hours.
Urgent items are problems that involve a major inconvenience, discomfort or hardship to residents and/or could result in further deterioration to the property, if left unattended. Normally, these requests shall be handled within 1 to 2 workdays.
Routine items are situations that warrant repair, but are not of an urgent or emergency nature. They also include cosmetic improvements requested by residents or the Resident Manager. These shall be scheduled monthly.
When filling out a work order for a resident, where work must be done within the resident’s unit, the Resident Manager shall request written consent by the resident for management to enter the resident’s unit when they are not present. The resident also has the option to give written consent to management to enter the unit on their rental agreement or proprietary lease, in which case the Residential Manager shall give verbal or written notification to the resident before entering the unit when the resident is not present. If the resident wants to be present when someone is working on the problem, the Resident Manager will attempt to schedule an appointment with the resident prior to scheduling the work.
If the nature of the work requires the skills of a licensed plumber or electrician, the Resident Manager is responsible for calling the appropriately skilled contractor from a list approved by the Management Committee. The Resident Manager will also be responsible for scheduling an appointment with the resident, only if applicable, and the contractor.
In the event of emergency or urgent work that needs to be done, the Resident Manager may enter the unit without the resident being present. In these cases, verbal or written notification will be given to the resident indicating the time the unit was entered and the reason.
Vacated Unit Turnovers:
Turnover maintenance involves securing, cleaning and redecorating vacated units for occupancy by new residents. The type and amount of work performed is to be determined by the Resident Manager and Resident Maintenance Worker and/or Management Committee member upon performing a move-out inspection after the former resident has vacated the unit on the move-in/move-out “Unit Inspection” form.# The amount of work needed will depend both on the condition the former resident left the unit in and whether a preventive maintenance or replacement item, such as complete unit repainting is scheduled for the near future. Dead-bolts (including locks and drums) are replaced on unit exterior doors after a resident moves out.
Cleaning and repair work on vacated units is performed by the Resident Manager and Resident Maintenance Worker, unless there is a problem or repair where a special trades worker is required. In this instance, the Resident Manager will call the trades’ person and arrange to have them do the work. All unit turnover work shall be documented with work orders which note the time spent and cost of materials used. If there are cleaning, repairs or replacements necessary which are beyond “normal wear and tear”, the appropriate costs are deducted from the former resident’s security deposit and detailed on the report mailed to the former resident.
Unless major damage has been done to the unit or substantial replacements are necessary, the normal standard for preparing a unit for re-renting shall be within 2 weeks of the time it was vacated.
Preventive Maintenance:
Preventive Maintenance involves a program of planned inspections and servicing intended to reduce the frequency and severity of breakdowns of building systems and also helps to preserve and extend the useful life of building equipment and fixtures.
The Resident Manager is primarily responsible for performing inspections and scheduling appropriate servicing of common area equipment and for units’ space heaters.
Residents also have an important role in the preventive maintenance program by properly using and cleaning certain appliances and fixtures in their units. Residents shall be instructed how to use and clean their stove, refrigerator, and flooring at the time of their initial orientation and/or unit inspection. Their resident resources will also contain written information regarding the use and care of these items for their future reference.
The following summarizes the management’s, owners’, contractors’ and residents’ responsibilities in USTU’s preventive maintenance program:
Daily:
Resident Manager and/or Maintenance Worker: Inspect the site each week-day; document any abnormal or hazardous conditions, any damage, or any special maintenance needs on work orders; correct problems.
Residents: Clean off any spillage on range/ovens and refrigerators. Take all recyclables, compostables, and trash to the appropriate areas. Wash dishes and cover or refrigerate all food to eliminate potential for vermin infestation.
Weekly:
Contract Cleaning Workers: Mop floors and Vacuum carpets in common areas.
Semi-Annual:
Resident Manager: Conduct a semi-annual inspection of all units to check that all smoke detectors are attached and functioning; check for any malfunctions or damage within units including all water fixtures and appliances; check to assure that a reasonable standard of housekeeping is being maintained by residents. If housekeeping problems are found, residents will be notified verbally and in writing. The resident will be provided with a written Lease Violation and notified that more frequent unit inspections will be scheduled. Residents are to be given a written “Notice to Inspect Premises” at least 24 hours prior to the inspections. Confirm maintenance records of fire extinguishers.
Contractors will check building hot water heater and related pipe connectors and valves for leaks during the semi-annual inspection; test temperature- pressure-relief valve and replace, if necessary. Check gas vent duct and clean, if necessary. Drain water heater to remove sediment if necessary.
Annual:
Resident Manager will schedule Maintenance Worker to inspect and clean out, if necessary, roof gutters and drains.
Resident Manager will evaluate condition of landscaping; order replacement planting, pruning, and trimming of trees, as needed and appropriate.
Resident Manager will take all necessary steps to update the Reserve Fund Study.
Major Maintenance & Replacements at Periodic Intervals:
Resident Manager will direct Maintenance Workers or Contractors to do the following. The number of years stated is not compulsory, but a guideline for planning purposes: Repaint unit interiors every 5-10 years or if necessary upon unit turnover; Repaint building exteriors between 10-15 years or sooner if needed. (replacement reserve item); Replace ranges every 20 years; and refrigerators every 15 years, as needed (replacement reserve items); Repair or replace roofing on flat roof areas after 12 years; replace pitched roof tiles after 40 years (replacement reserve item).
Lead Abatement:
USTU strives to create a lead-safe environment for residents and visitors. Inspections conducted in 1996 and 2012 identified the presence of lead. To achieve a lead-safe environment, USTU will priortize lead abatement in units where children live or visit. A more specific plan will be formulated to achieve this goal.
VII. Energy Conservation
The following strategies have been implemented to save energy:
Units have low flow fixtures for toilet, shower, tub, sinks
Units have weather stripping at hall doors
Buildings have attic insulation
Solar hot water is scheduled to be installed in 2012
Many units have grey water systems from their sinks and/or tubs to the gardens
Many tenants follow the motto: if it’s yellow, let it mellow; if it’s brown, flush it down.
Many tenants minimize water usage in taking showers either by reducing their time, or shutting off the water when not rinsing.
Laundry conservation:
Tenants can use an outdoor clothes line to dry clothes
Tenants can use only cold water to wash clothes
Machines are energy star equipment
Tenants shall be encouraged in their commitment to more ecological living patterns, including energy and water conservation, through the resident orientation and ongoing communication described below:
A community electronic mailing list is used to convey the latest information available on energy conservation as it applies to the USTU buildings.
Announcements are made in weekly community meetings regarding important conservation information.
VIII. Security and Emergency Planning
Fire and Earthquake Safety:
The 117 Bimini building has prominent exit signs per LAFD requirements and seven ground floor exits to the outdoors. Bimini Terrace units exit directly to the outside.
There are no window bars on the 117 Bimini building, so lst floor units are easy to evacuate.
Every tenant has an emergency phone number to call in another state to report on their whereabouts and condition. They have been instructed to share that phone number with their loved ones.
The glass boxes containing fire extinguishers act as a fire alarm when broken.
Cut off/on and location of water valve, gas and electricity:
The 117 Bimini building’s water valve is located in front of the front entrance to the building. The Bimini Terrace water valve is located _________. At any given time, there will be at least six residents trained in how to shut them off. The master metered gas valve to the 117 Bimini building is located outside in the northwest corner of the building. It is an automatic shut off valve per current regulation. The gas valve to the Bimini Terrace is located ____. At any given time, there will be at least six residents trained in how to manually shut them off. The master metered electricity center for the 117 Bimini building is in the basement in the northwest corner of the building. The Bimini Terrace electrical boxes are located _____. At any given time, there will be at least six residents trained in how to shut the buildings’ electricity off.
Location of Fire Department, Hospital and Emergency services:
Nearest Fire Department: 326 N. Virgil Ave., Los Angeles 90004
Nearest Emergency services: Good Samaritan Hospital, 1225 Wilshire Blvd, Los Angeles 90017
Emergency Equipment:
Emergency equipment includes fire extinguishers throughout the 117 Bimini building per LAFD regulations. For the Bimini Terrace building, ____________. Equipment is serviced annually.
In addition, there is an unlocked closet of emergency medical supplies on the lst floor north of the 117 Bimini building.
An emergency water supply of 30 five gallon jugs is located outside the southwest exit to the 117 Bimini building.
Training:
At any given time, the Resident Manager and five other residents will be trained in earthquake preparedness, fire safety, CPR, first aid and emergency procedures.
We aim to have annual emergency preparedness trainings in August in memory of the Katrina disaster in 2005.
LAFD seven week trainings are offered to USTU residents each year.
Information/Education provided to residents:
Residents receive an orientation to the building and safety and emergency procedures prior to moving in.
Residents have the option of attending the free LAFD trainings each year.
IX. Finances and Accounting
Accounting Staffing and Practices:
Accounting for the USTU income and expenses is handled by a contracted Accountant. Records are kept on an accrual basis and comply with generally accepted accounting practices. In addition, the CPA is responsible for preparing the required IRS tax returns and documents for USTU. The source records for development income and expenses will come from USTU’s ledgers and journals. It is the responsibility of the Treasurer and the other members of the Finance Management Committee to ensure the ledgers and journals are maintained.
The Resident Manager, the Treasurer, and other members of the Finance Management Committee will be expected to obtain financial literacy training relating to the tasks of the Committee if they do not already possess these skills.
Financing Plan
The Finance Management Committee will develop a Financing Plan requiring approval of the Board on an annual basis. This Financing Plan addresses the following: 1) what are our needs for cash in the next year; 2) what are our sources of cash to meet those needs in the next year; 3) what are the strengths and weaknesses of USTU’s overall long-term financial position, including an assessment of assets and short-term and long-term financial obligations; 4) recommendations for action in the next year to improve the long-term financial health of the organization.
Check Issuance and Approval for Expenses:
All purchases and payments for development expenses are made by written check online check or other online payment, debit card or credit card. Expenses will be paid primarily by the Resident Manager, who must track all expenditures, including but not limited to those which are caused by a resident’s breach of lease, neglect, or willful misconduct.#
If necessary, the Resident Manager is authorized to exceed the approved amount in each line of the Monthly Budget by as much as a 10% variance but must seek approval from the Treasurer or other members of the Finance Management Committee if a single expense exceeds $500 and pushes the total spending for a budget line item within a given month beyond a 10% variance.
The Resident Manager is also required to seek approval from the Treasurer or other members of the Finance Management Committee for all single expenditures, budgeted or non-budgeted above $X. (Note: Specific Payment Safeguard Policy will be developed in consultation with finance/bookkeeping consultant.)
Operating and Replacement reserve expenditures that have not been approved in the annual budget require approval by the USTU Board. All reserve expenditures are subject to regulatory provisions of and restricted to those uses described in the mortgage documents.
USTU has four separate bank accounts:
General Operating: Account for paying day-to-day and week-to-week expenses and for deposit of rent, assessment, laundry and miscellaneous income. (checking account)
Security Deposits: Account for holding all security deposits paid by residents. Cannot be used for any other purposes. (interest-bearing savings account)
Replacement Reserves: Account for long-term savings to pay for major upgrades and repairs that need to be done every 5 years or more (e.g. roof repair, exterior paint). This account will also hold share payments for USTU owner-members in the start-up period of USTU until a separate account for share payments is established. (interest-bearing savings account)
Operating Reserves: A savings account to hold funds for large semi-annual or annual expected expenditures, e.g. insurance and property taxes. Payments from this account will be made via transfer to the General Operating Account. (interest-bearing savings).
Statements for these accounts are to be reconciled monthly by the Treasurer or Accountant. Rent, Assessment, and Laundry income is deposited to the operating account on a monthly basis. All accounts are to be managed in accordance with Financing Plan requirements. The Resident Manager, the Treasurer, and an alternate designated by the Treasurer will be only people authorized to expend or transfer funds to or from any of these accounts.
Deposits to the replacement reserve account are made monthly, at 1/12 of the required annual deposit amount, pursuant to the amounts specified in the approved operating budget as set forth in the Financing Plan. Deposits to the operating reserve account are made monthly according to the cash flow budget approved by the Finance Management Committee. The Resident Manager will transfer required funds monthly from the operating account into the operating and replacement reserve accounts, pursuant to all lender requirements.
The Resident Manager will transfer funds into and out of the “Security Deposit Account” as necessary. After a resident moves from USTU, there is a move-out inspection. A “Security Deposit Disposition Worksheet” or appropriate form and letter from the required software is prepared by the Resident Manager. The inspection form and statement will identify costs which will be charged to the resident’s security deposit. The Resident Manager will send a copy of it to the departed resident. Depending on the amount of deductions, a full security deposit refund, a partial refund or no refund is sent to the departed resident. The worksheet will document actual costs, if any, which were deducted from the security deposit. A copy of the worksheet and a refund check, if there is one, must be sent to the departed resident within 21 days of the date of move out. It shall be sent to the departed resident’s forwarding address that the departed resident has provided to the Resident Manager.
The procedures for withdrawing funds from the replacement reserves account are as follows:
The Resident Manager notifies the Treasurer that funds are needed, and provides information regarding: a) the amount of funds needed; b) the scope of the maintenance and repair work to be performed; c) an explanation for any work to be done which sunusual or is premature as determined by the maintenance benchmarks.
The Treasurer will provide approval, or obtain the appropriate approval from the USTU Board if the expense falls outside of approved policies and budgets or under special circumstances as determined by the Treasurer.
The Treasurer will transfer the funds to the operating account and will notify the Resident Manager of the transfer.
The procedures for withdrawing funds from the operating reserves account are as follows:
The Resident Manager notifies the Treasurer that funds are needed, and provides information regarding: a) the amount of funds needed; b) an explanation regarding the inability of the general operating account to cover the expenditure; c) an explanation for any work to be done which is unusual or is premature as determined by the maintenance benchmarks, and cannot be paid out of replacement reserves.
The Treasurer will provide approval, or obtain the appropriate approval from the USTU Board if the expense falls outside of approved policies and budgets or under special circumstances as determined by the Treasurer.
The Treasurer will transfer the funds to the operating account and will notify the Resident Manager of the transfer.
Budgets:
Annual Budgets: USTU’s fiscal year begins on January 1st and ends on December 31st. Before November 1, prior to the beginning of each new fiscal year, the Resident Manager and Finance Management Committee will develop a proposed annual operating budget which estimates the next fiscal year’s operating income and expenses and any recommendations for rent or fee increases.
The USTU Board shall accept or reject the proposed Annual Budget within thirty (30) days after receipt. If the USTU Board rejects any proposed annual budget submitted by the Finance Management Committee as provided above, the Finance Management Committee shall submit to the USTU Board for approval a new proposed annual budget satisfying the Board’s objections within thirty (30) days after the date of rejection. If the proposed annual budget is not approved before the start of the new fiscal year, the Resident Manager shall operate, to the extent possible, under the previous year’s annual budget.
Monthly Budgeting: An itemized Monthly Budget will be created at the beginning of each year based on the approved annual budget. The Finance Management Committee will approve the Monthly Budget each month based on monthly income-expense reports and budget variance reports. The Finance Management Committee shall carefully review these monthly reports and address any problems indicated by significant variances (net cumulative change of 10% in operating income or expenses) from budgeted income or expenses at its monthly meetings with the Resident Manager. The Finance Management Committee will also present these reports to the Board each month.
Budget Adjustments: If a mid-year amendment to the annual budget appears to be necessary (e.g. if the overall annual expenses are projected to exceed the budget, or if there are projected variances above 10% on any given line item for the year), the Finance Management Committee shall bring this before the Board for their approval.
Reports:
The Finance Management Committee is responsible for preparing or causing to be prepared reports for the USTU Board.
These include:
By the 25th of the following month an income and expense statement; cash flow report; monthly budget variance report; a report of rent delinquencies, vacancy losses and turnover rates; a disbursements summary; a status report of all development accounts which shall be reconciled monthly; bank statements; and a reserve tracking report for all required reserve accounts.
Quarterly trial balance sheets which must be submitted to the Finance Management Committee within thirty days after end of each calendar quarter.
Periodic reports as required by the City of Los Angeles will be submitted to comply with stipulations of the Regulatory Agreement between the LAHD and USTU. The Annual Report will include information regarding each unit, the rental rate, and the income and family size of the occupants. The income information will be supplied by the tenant in a certified statement.