Frequently Asked Questions General Portfolio and Asset Management When does the Portfolio and Asset Management Program begin?
Portfolio and Asset Management activities generally begin within 90 days prior to transaction closing with the Orientation Site Visit. However, asset managers and Installation personnel may attend training sessions and workshops before then.
What do I need to do to prepare myself to work with these projects after the transactions are finalized? Attend the AF Portfolio Management Training Class and do some research to understand your individual project. When the deal does close, take some time to make sure your staff understands the key legal documents and management plans that will govern the project.
How do I coordinate with the new Property Management Office?
Immediately following the transaction closing and/or before if possible, it is a good idea to schedule regular weekly or bi-weekly meetings to discuss issues and stay in close contact. You will need to spend time with them to coordinate information flow from both parties so that you are all receiving the information you need.
Whom do I contact when project issues arise?
Each Project will be assigned an AF Portfolio Manager and Portfolio Advisor who will remain in contact with the Projects and are available to assist with any transitional issues. You will be introduced to these individuals during the Start-Up visits. The AF Portfolio Management Office is a key source of programmatic knowledge and can provide best practices insight when issues arise and they should be utilized in addition to coordination from the MAJCOM.
What are the major Portfolio Management Visits to an Installation?
AF Portfolio Management will visit the Installation three times during the initial start-up period (Orientation Site Visit, Asset Management Start-Up Visit and Roles & Responsibilities Visit). Following these initial visits, Portfolio Management will do a series of visits during the initial development period, as well as Annual Site Visits and any other visits necessary to deal with issues that arise.
AFPACES Where can I find project information and reports?
These can be found on AFPACES, our online portal used to hold all legal documents and ongoing financial and status reports on the project. Installation and MAJCOM personnel will be given user information and an initial training session on usage during the Portfolio Management "Start-Up" visits.
How do I obtain access to other project information?
Access to project-specific information is limited to the stakeholders involved in the project. Asset Managers are encouraged to share experiences and best practices through the Lessons Learned database, interaction with peers at training and the Air Force Housing Privatization Workshop and interaction with Portfolio Project Managers. For additional information on trends and activities in the portfolio, individuals should contact the AF Portfolio Manager.
Asset Manager's Toolbox What is contained in the Asset Manager's Toolbox?
The Asset Manager's Toolbox is to provide Asset Managers and other stakeholders with useful project information about the Portfolio and Asset Management Program. It details information such as AFPACES, transaction documents, utility information, fire & police services, construction surveillance and reporting and can be accessed via the AFCEE website here.
What measurements are used to track the success and financial health of privatized housing projects?
Portfolio Management completes project quarterly reports on each project that measure occupancy, property management and maintenance functions, construction schedule and financial health to get an in depth look at each project. Projects are given ratings for specific categories that are used to benchmark progress. Additionally, compliance testing and lockbox review reports are completely on a quarterly basis as well.
Construction/Development What is my role in overseeing and coordinating with construction resources within the project?
Similar to other Asset Management roles, involvement with construction is as a secondary oversight role to be sure the Developer is constructing and renovating the project site according to design drawings, applicable environmental law and safety programs. The Air Force will have quality assurance personnel responsible for this oversight. As Asset Manager, you will need to manage the construction surveillance personnel and work to resolve issues at a local level. You also must coordinate with the Project Owner and Installation leadership to facilitate any "Design Criteria Exception Notices," "Notices to Proceed" and "Certificates of Occupancy". Asset Managers utilize periodic recurring meetings and spot checks to facilitate issue resolution and ensure compliance with project designs and safety programs.
Finance How is financial health evaluated?
Financial health is evaluated based upon both short- and long-term performance. In the short-term, the project's ability to repay debts and fund all expenses are analyzed. In the long-term, the project's ability to generate revenue for reinvestment is assessed. During the entire term of the project, financial performance is compared to pro forma projections to determine if the project is operating as anticipated at the time of closing.
What is the annual budget process?
For the first fiscal year after project closing, the closing pro forma serves as the project budget. Thereafter, as stated in the transaction legal documents, the Project Owner submits an annual Project Operating Budget to be approved or rejected by the prescribed Installation authority. Typically, this decision is influenced by the advice of the Base Asset Manager, and the Portfolio Advisor. If the Project Operating Budget is initially disapproved, the Base Asset Manager and Portfolio Advisor will work with the Project Owner to reach an acceptable budget.
What is Lockbox Administration?
The Lockbox Administration Tool is an MS Excel based financial model that tracks the project's cash flows through prioritized accounts as established in the Lockbox Agreement. The tool allows the Air Force to verify that funds are being collected and disbursed appropriately. Lockbox Administration Reports are issued quarterly as part of Air Force Portfolio Management's Sustainment Services.
Legal How do I change the language of a legal document?
All changes to transaction legal documents must be approved at the SAF/ESG level. Any proposed changes should first be vetted by the Portfolio Management Office and HQ USAF A7CH at the Air Force Housing Privatization Center for Excellence. Please contact the AFCEE Portfolio Management Office with your recommendations.
How are disputes settled?
Specific remedies for disputes are prescribed in the transaction legal documents. Generally, disputes valued at $10,000 or less are decided by the Wing Commander, with no ability to appeal. Disputes valued at more than $10,000 are also generally decided by the Wing Commander, but can be appealed to the Secretary, whose decision can be appealed to a court of competent jurisdiction.
Lessons Learned Database I am unable to access the Lessons Learned Database. Why?
Access to the Lessons Learned Database is limited to Air Force personnel and Project Owners involved in housing privatization and requires a username and password. If you are eligible, but not a registered user, please contact us at for access. The Lessons Learned database is housed on AFPACES.
How do I add a Lesson Learned?
After signing-on to the Lessons Learned Database, click on add a lesson. Select a topic, Installation and name for your lesson. Type in your lesson (or copy and paste text from any Windows based program) and hit submit. You will have the option to view the lesson and attach any file that you think would benefit the reader of your lesson. The lesson is automatically stored in the database and will be appear on the website as soon as it is approved by the portfolio management team.
Loan Servicing What is the AFCEE Portfolio Manager's role in Loan Servicing?
The AFCEE Portfolio Manager provides oversight of the loan servicing process to include monitoring the transaction closing schedule for upcoming closing dates. These dates serve as the trigger for validating and ensuring that the project's subsidy funds are transferred and in the program account at DFAS-IN at the time of transaction closing. Additionally, upon notification of the scheduled Loan Closing date, following completion of the Initial Development Period the Portfolio Manager prepares the required financial documentation to release the direct loan disbursement (if applicable) and forwards to DFAS-IN. Preparation of the documentation requires collaboration with the developer, their banking POC's, and DFAS-IN to ensure all information provided for the disbursement is accurate. Following Loan Closing, the Portfolio Manager monitors the direct loan repayments to ensure payments are in accordance with the associated closing documents. DFAS-IN provides collection reports to the AFCEE Portfolio Manager on a quarterly basis and is maintained in an in-house based tracking system. Additionally, the Portfolio Manager performs yearly subsidy re-estimates as a result of the Credit Reform Act of 1990 to include interest rate and technical re-estimates. See the Housing Privatization Portfolio Management Financial Guide for more information.
What is the Asset Manager's role in Loan Servicing?
The Asset Manager oversees the debt servicing with the Lockbox Agent's support. The Lockbox Agent provides monthly lockbox activities reports that detail the deposits and disbursements to and from the project Lockbox accounts. As part of the compliance testing process, the Asset Manager reviews the lockbox activities reports to ensure that debt service payments are being made on time and for the correct amount. In addition, Asset Managers are responsible to raise debt service coverage issues to the attention of the Portfolio Manager.
General Portfolio and Asset Management