How does conversion relate to “Asset Management”? Will it change how PHAs manage their properties?
For the past five years, PHAs have been transitioning to asset management, with a focus on project-based budgeting, accounting, management, etc. Any property that converts under PETRA will complete the transition to “asset management” by virtue of the fact that the owner of the property will enter into a property-based contract. In other words, not only will the owner budget and manage and operate and account for the property on an asset basis, but it will receive subsidy funding on an asset basis. This environment is better for the owner, because the subsidy will no longer be based on formula, and it is also better for HUD, because HUD will no longer have to create regulatory controls on specific cost centers. PHAs will have the ability and the responsibility to manage their converted properties as local conditions demand.
