Insite Online - MAY/JUNE 2009
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Success Story

Julie Leddy wondered: Was that commercial correct? Do you really never get a second chance to make a good first impression?

“We had just signed on with HAI Group for December 1, 2008,” the Coventry, Rhode Island Executive Director said. “We had never been with your company in my 12 years here. Finally, we took that leap of faith.

“On Jan. 4, a car jumped a bank and went right into a unit’s bathroom. There were no injuries but there was a humongous hole in our building. My first question was, ‘I wonder if I had paid the first premium?’”

Fortunately, Housing Authority Insurance Group made a great first impression on Leddy.

After she secured the unit and turned off the water, Leddy had to call in the claim. No one likes that job, especially one month after establishing coverage.

“I called (Marketing Representative) Greg Shpak, my only contact, and there was no question in his mind that we were covered,” Leddy said. “He said, ‘Here's what we do,’ and led me through the entire process. Then, I spoke with (Property Claims Manager) Mike Pepe, who set up the claim and got an adjuster out to me the same day.  Every person I spoke with was great to me.”

The reassurance and approach to customer service were exactly what she needed.

“I told them ‘I hope you're OK with what I’ve done’ and they said, ‘Of course, you have to do those things.’” Leddy said. “That same day, the adjuster came out and gave recommendations on how to proceed and we get in touch with a contractor. We agreed on a sum, the work started immediately, and the family was back in the unit in less than 30 days.”

Be it a friend, spouse, pizza place, or insurance company, one can’t be sure about a relationship’s stability until crisis strikes. And, given that Coventry is a smaller housing authority with 195 public housing units, 278 housing choice voucher properties, and 32 tax credit units, Leddy admitted she wasn’t sure if her housing authority would be treated like a “big” client.

HAI Group passed the test.

“It’s easy when you have a long-term relationship,” she said. “But when you are brand new with a company, you wonder how it's going to work. It was flawless.

“I'd had two similar dollar values claims experiences. One went OK, one did not. This one was over and above. I felt like I was that long-term client that had been with them for 30 years, not 30 days.”

Risk Corner

A New Pandemic Threat: Swine Flu

Avian flu, also known as bird flu, made big headlines a few years ago. Experts proclaimed an influenza outbreak was imminent and predicted it would be bird flu.

Is swine flu that epidemic?

Time will tell. But, as it is with any potentially-harmful situation, housing professionals must consider the risks to their operation and plan accordingly. Pull out and dust off plans your operation made for bird flu. They also will address swine flu since the exposure to your authority from either is almost identical.

Reviewing those plans is in everyone’s best interest. Areas of potential serious consequence when key employees are absent include: security, emergency maintenance, completion of work orders, financial duties like bill-paying, payroll, and accounts receivable, and missing frontline positions attending to day-to-day services to residents or managers.

If you haven’t made plans, consider the following before the flu spreads and affects your operation. Some resources are listed at the end of this article.

Take steps to prevent flu spread.

Provide antiseptic hand lotion at locations throughout the authority. Make sure bathrooms have hand soap and ask employees to wash hands for at least 20 seconds. Ask employees with flu-like symptoms to stay home. Send those with symptoms home. Enforce this rule vigorously.

For employees who must work, provide gloves, masks, hygienic wipes, and other supplies to prevent infection. Depending on whether the flu epidemic becomes serious, it may make sense to place people on shifts to avoid interaction and possible contamination.

Employees who get the flu may be out for an extended period of time.

Under the bird flu scenario, it was expected there would be extended absences and deaths. So far, the death toll has been small in the U.S. but higher in Mexico.

What must be considered, however, is the length of any potential absence. You must consider how absences will affect your employees given the current personnel policies. Does staff have enough sick time? If not, how will they be paid? Will there need to be use of vacation? What happens when vacation time and sick time run out?

Also, how will absences affect your operation? Can employees be cross-trained? Who can work at home? Don’t forget children who may need to stay home rather than attend school or daycare. Absenteeism will be a big problem. How will work get done? What is critical to the day-to-day operation? What can be delayed or put off until you are fully staffed?

Employees of supplier and vendor organizations

Even if you take precaution and keep the flu out of your operation you may be affected by suppliers and vendors. They may not deliver services such as Meals on Wheels, maintenance services, etc. What can you do to make sure critical services provided by others continue? Do those vendors have a plan? Are you on their priority list for services in case of an emergency?

As it now stands, the flu is not yet widespread. However, now is the time to plan and prepare. Below are some resources to get that accomplished. A Web search will provide many other resources regarding pandemic planning, the flu, and related topics.

Resources

OSHA guide to pandemic planning:
http://www.osha.gov/Publications/OSHA3327pandemic.pdf 

CDC information on the swine flu:
http://www.cdc.gov/swineflu

Risk and Insurance Management Society guide on flu pandemic:
http://www.rms.com/Publications/Influenza_Pandemic_Risk.pdf

Note: Watch a quick program about Swine Flu on HTVN (Housing TeleVideo Network). Stay tuned - a more in-depth program on how PHAs can prepare for flu pandemics will be available on HTVN in mid-May. Look for announcements on the HAI Group Web site and in our email communications.

Accessible Guidelines for Play Areas

What is an accessible playground?

An accessible playground offers a range of play experiences to children of varying abilities. This does not mean that every feature or event must be usable by every child.

For example, a playground offering swinging, sliding, climbing, and manipulative or interactive experiences must provide comparable experiences for all. But, if it has several slides and two or more swings, it is considered accessible if children with disabilities can use one of the slides and one of the swings.

Start your design with an accessible path.

In designing a playground, your first step is to provide an accessible route of travel to the play area. This should include an accessible protective surface to each structure or freestanding event that is intended to be used by children with disabilities.

Combining loose and synthetic surfaces is a common solution. If you choose this approach, be aware of potential trip hazards where the wood fiber, sand or other loose material meets the unitary surface. Also, take steps to prevent wheelchairs from dropping off the access path’s edge and tipping over. (The transition edge is a common solution. It is gradually sloping at a pitch of 30 degrees or less.) If possible, use loose materials along only one side of the unitary surface to further minimize risk.

Your access route should be at least 5 feet wide to allow two wheelchairs to pass. In addition, a turnaround/parking space at least 5 feet in diameter should be provided next to any play structure that requires transferring from a wheelchair onto the structure.

Plan for age-appropriate transfer points.

The act of transferring onto a play structure is similar to transferring onto a toilet or perhaps a bed. Physical therapists estimate that 40 to 60 percent of wheelchair users can and will transfer out of their chairs onto a play structure. Some children may need help initially. Depending on age, children in wheelchairs need a transfer point between 11 and 18 inches in height to make this transfer by themselves. Grab bars or other devices should be provided.

Once these children are on the play structure, steps no higher than 8 inches will let them move about and play with their peers. Such steps should be at least 14 inches deep and 24 inches wide to accommodate children of various ages and sizes.

Give careful thought to ramp design.

Ramps provide another way for children to access an elevated deck. Ramps should be at least 36 inches wide and no more than a 1:12 slope, and they must have handrails and curbs. To reduce circulation conflicts and abuse, ramps should be no more than 12 feet long between level landings. Landings should be at least 5 feet in diameter to let two wheelchairs pass and to allow a child in a wheelchair to turn around. Accessing the structure from an earth beam with a ramp can minimize the number of ramps and landings as well as the space and amount of surfacing needed to gain height. The accessible route of travel can begin outside the play area and continue up the beam at no more than a 1:20 slope and finish with a short ramp or bridge to the play structure. This design approach is less expensive and more attractive than a network of ramps and landings.

Provide sufficient deck space on the play structure.

If children can roll their wheelchairs onto an elevated deck, the deck must be at least 5 feet in diameter so the wheelchairs can turn around. If a transfer point is available on the deck, provide a space of at least 30 by 48 inches beyond the turning space for parking. However, leaving an unoccupied wheelchair on an elevated deck is a potential hazard to other users and is not recommended except in special supervised areas.

Examine costs early to avoid common mistakes.

The cost of building an accessible playground varies substantially according to the design approach and the materials used. Finding the right balance between accessibility goals and your budget should be considered early in the planning process to avoid shortcuts that can lead to expensive mistakes later on. Many “accessible” playgrounds fail to meet accessibility standards. Some reasons for this include:

• Users with disabilities were not involved in the design process.
• No accessible route of travel to the play area.
• Transfer points that are too high for the children using the playground. (As stated earlier, an appropriate height for a transfer point is 11 to 18 inches, depending on the age of the user.)
• No means of returning to the transfer deck after descending a slide. To avoid this situation for children with limited lower-body mobility, steps of an age-appropriate height (8” maximum), and size (24” wide, 14” deep) should be located in close proximity to the slide exit and be available at ground level.
• The playground focuses only on wheelchair access, ignoring users with impaired vision, hearing loss, developmental disabilities and other physical or mental challenges.

Safety shouldn’t be compromised for accessibility. For instance, tactile warnings in loose protective surfacing or guide rails within the use zone may help the visually impaired, but will be a hazard to the majority of users. There are other ways of orienting a visually impaired child to playground activities. Much of this orientation responsibility lies with the caregiver.

It’s important to note that many amenities intended for users with disabilities will contribute to an overall improvement in safety and “user-friendly” design. Ramps, shorter step heights, roomier decks, hand rails and grab bars can enrich the play experience for children of all ages and abilities.

The 2007 Pool & Spa Safety Act

Swimming pool and spa accidents have caused over 2,000 serious injuries and over 300 deaths to children under age five in this country. The US Congress passed The Virginia Graeme Baker Pool and Spa Safety Act of 2007, which took effect Dec 19, 2008. The legislation’s purpose was to encourage states to regulate the safety of public swimming pools and spas. The Act covers only limited aspects of pool safety, but will prevent some tragic accidents at public pools.

When the pool’s recirculation pump cleans, filters, and sanitizes the water, the force of the pump can cause children and adults to be sucked under and held below water level. In some instances, it was a game or playful children feeling the rushing force of the water that led them to play near suction lines. In other cases, it was a tragic accident that occurred so quickly that the bather had no opportunity to react or free themselves from the force of the recirculation pump. The force needed to escape can be in excess of several hundred pounds.

Another safety concern involves entrapment of long hair or bathing suit material on the drain and suction covers of the pool. Hair entrapment occurs when a bather's hair becomes entangled in a suction fitting drain cover as the water and hair are drawn powerfully through the drain. In several incidents, children were playing a "hold your breath the longest" game, even leaning forward in the water and permitting their long hair to be sucked into the drain.

Although the Act regulates only public swimming pools and the manufacturers of drain covers for pools, it will have a significant impact on the number of entrapped bathers in public and private pools if private owners replace drain covers or purchase a pool after December 19, 2008.

How will the Act prevent entrapment and submersion accidents? Each state has passed legislation to cover elements of the federal Act to prevent injury from entrapment and reduce the potential of a submersion injury caused by the suction produced by the pools recirculation system.

The main elements of the Act include the following:

• Safety Drain Covers: Swimming pool or spa drain covers manufactured, distributed, or entered into commerce in the United States must conform to the American National Standard ASME A112.19.8 - 2007 Suction Fittings for Use in Swimming Pools, Wading Pools, Spas, and Hot Tubs published by the American Society of Mechanical Engineers (ASME).
• Public Pool Drain Covers: All public pools and spas both new and existing must be equipped with drain covers conforming to the ASME/ANSI A112.19.8 - 2007 Standard described above.
• Public Pool Drain Systems: All public pool and spa recirculation pumps with a single main drain, other than an unblockable drain, must be equipped with one or more additional devices or systems designed to prevent suction entrapment that meet the requirements of any applicable ASME/ANSI Standard or applicable consumer product safety rule. In addition to a compliant drain cover, such additional devices or systems may include a safety vacuum release system (SVRS), a suction limiting vent system, a gravity drainage system, an automatic pump shutoff system, a drain disablement, or other system determined by the CPSC to be equally effective in preventing suction entrapment.

These rules will apply primarily to public pools. However, only drain covers which meet the ASME standards are available for the upcoming swimming season and can go a long way toward preventing injury. The safety vacuum release system required on public pools may not be incorporated in the backyard pools of the future. However, many systems have already incorporated double drains in new pools to reduce the forces of the pool suction lines. A heightened awareness of the causes of such injuries can help pool owners educate their families and guests on the hazards of the suction lines used in a pool’s filter system.

Legislative Affairs

Energy-Greening Symposium Planned

HAI and its industry group partners, PHADA, CLPHA, and NAHRO, have met several times to discuss plans for convening a Symposium focusing on Energy and Greening in Public Housing. HAI will participate and assist in the funding of the Symposium, which is expected to be held in mid- to late-fall.

This continues the effort begun last year at the Summit on the Future of Public Housing and is one of three major areas set forth in the policy framework paper on The Future of Public Housing. The full text may be viewed at http://www.housingcenter.com/LegislativeAffairs/default.aspx.

The stakeholders at the Summit contributed in an important way to the successful inclusion in the Stimulus Bill of $4 billion dollars for Public Housing capital improvements. The first $3 billion gave great emphasis to preserving units as well as energy conservation. On the $1 billion portion being distributed competitively, there is a very strong emphasis on energy and greening.

Future projects funded by this $1 billion, and those already underway, provide opportunities for the public housing industry to publicize positive things it is doing on energy conservation and the leadership role it’s playing. The Energy and Greening Symposium will be a great forum to showcase these accomplishments.

Given the emphasis being placed on energy and greening by the Obama Administration, it is anticipated that further sources of revenue in this area may become available to the industry. It is hoped that this Symposium will contribute to a continuing effort to build a broad political coalition to support further funding for Public Housing and its preservation.

Research Efforts at HAI

The research program in the Legislative Affairs department is now in full swing with the hiring of research analyst, Keely Jones Stater, PhD. Keely had been a member of the University of Georgia faculty in the Master’s in Public Administration and Policy Department. Since joining HAI in November, Keely has been working with the three industry group partners, CLPHA, PHADA, and NAHRO, to prioritize research projects and data collection efforts that will ultimately support the groups’ work in Washington.

So far, the groups have identified seven projects to be implemented over the next few years that will advance our knowledge and consequently our case for greater investment in public housing. Projects include: project expense level calculation and inflation, waiting list length and duration, mapping of public housing projects and nearby services, and energy consumption and greening practices.

Keely has been consulting the industry groups on various data matters as they dialogue with policymakers and HUD. In addition to these research needs, Keely has been working with the three groups to develop a package of data to be distributed to PHAs. These information packages will make research and analysis tools available for all PHAs, empowering them to better argue for support.

Currently, Keely is helping to collect data on energy use and greening efforts in public housing for the upcoming Greening Symposium. She is working with the three industry group partners to design a survey to be distributed to all public housing authorities.

As a short plug for the survey, we urge you to participate in this data collection effort, providing as much detail as you can about your energy consumption and greening practices. Your information is vital in demonstrating that public housing is the best investment in the administration’s greening agenda.

Moreover, the research arm at HAI is working to amass information on public housing agencies to engage in studies like the Economic Impact Study that will provide pivotal evidence for funding requests and policy initiatives. We hope to build on the relationships we establish with our members during this survey effort to provide housing authorities with ownership of this data and eliminate the current public housing data vacuum that cripples our case for Capitol Hill support.

Another current research project is a study of energy consumption in households. This study found that building characteristics, patterns of appliance use, number of people living in a household, and the number of major appliance significantly impact energy use. It also found that once these items were considered, public housing residents use no more energy on average than do households not living in public housing. In addition, Keely is working on a study of project expense level (PEL) inflation factors, considering the various inflation indices that can be used to generate the figures used to inflate PELs from year to year. Her calculations indicate that the current inflation factor is not based on the true market basket of goods housing authorities purchase to provide public housing and is underestimating the inflation in these goods by about one percent per year.

Change You Can Believe In

Changes in presidential administrations mean changes in political culture.

Connecticut housing personnel, public housing officials, and Housing Authority Insurance Group Vice President of Marketing and Agency Operations Ed Malaspina had a chance to see firsthand if the U.S. Department of Housing and Urban Development has changed since President Barack Obama took office when HUD Secretary Shaun Donovan and Senator Chris Dodd conducted a few town hall meetings in Connecticut on April 13.

Given the state of the national economy and the barrage of media reports on the mortgage crisis, most of Donovan’s official comments understandably were devoted to Obama’s plan to halt foreclosures. However, during the Q&A portion of the meeting, Malaspina was able to ask the Secretary what HUD would be doing for PHAs and their residents.

“Historically, HUD’s relationship with PHAs was one-way: HUD made the rules and regulations that PHAs had to follow,” Malaspina said. “Secretary Donovan said that HUD intends to change its ways by using PHA input and recommendations to find the best methods.”

HUD distributed $3 billion for public housing earlier this year. Another $1b is available that will go to those who can help “green” the industry.

“There’s additional dollars available to PHAs that can provide eco-friendly savings benefits,” Malaspina said. “Secretary Donovan’s overall message was that Washington is going to be a partner with housing leaders and they’ll work together to be more effective.”

That’s change everyone in the business of public housing wants to believe in.

Product Watch

HEIC – Growing Stronger Every Day

In October 2008, we shared the exciting news of our expansion of operations with Housing Enterprise Insurance Company, Inc. (HEIC). This expansion allows us to issue Commercial Property and Casualty insurance policies for affordable and mixed income housing owners and managers. In the first quarter of 2009, we began transitioning policies to this company in several states.

The following is the status of our licensing and state filing efforts for HEIC to date:

HEIC Licensed (19)	Property Coverage (COP) Approved (13)	Liability Coverage Approved (12)
CO, CT, IL, MI, MN, NE, NJ, OH, OK, PA, VT, WA, WI, MS, AL, TX, OR, LA, TN	CO, IL, MI, NE, OH, OK, PA, VT, WA, WI, TX, AL, MS	AL, CO, IL, MI, NE, OH, OK, PA, VT, WA, WI, MS

Additionally, for those members who have Public Officials with Employment Practices coverage with HARRG, you will see a revised endorsement HACL 352 0709 on your Liability policy (effective with 07-01-09 renewals).

This revised form is the result of our effort to provide a more comprehensive and competitive EPLI (Employment Practices Liability Coverage form). Staff completed a review of our current form, comparing it to others in the market place. The coverage, which is an add-on to our HARRG Commercial Liability policy Public Officials coverage, Section D, provides defense coverage for claims made against an insured for those acts covered in the form.

As a result, we broadened the definition of “wrongful acts” covered under the policy. While our existing policy was fairly broad in the interpretation of a “wrongful act,” we now provide wording to clarify those acts intended to be covered. This approach mirrors the approach used by our competitors and does not affect the current pricing structure.

We also expanded the definition of “who is an insured” to read the same as that provided for under the Suspension and Debarment coverage. “A 'public official' includes current, former, retired or disabled directors, officers, officials, commissioners, or 'employees,' as well as those on leave of absence."

New Trends at HTVN

Staying ‘In the Know’

Housing TeleVideo Network is all about keeping its subscribers “in the know.”

Currently, it’s offering a $150 savings on Commissioner Development Certification (CDC) when you register between now and June 26. Additionally, students receive a free CD ROM of the class, Beyond the Stagnant Quo, presented by Leo Dauwer at PHADA’s January ’09 conference.

The certification contains a dozen 30-minute programs, an online exam, comprehensive student guide, CEUs, supporting materials, and a presentation plaque. Plus, here’s another benefit: There’s no time limit to complete the certification so Commissioners learn and earn on their schedule. It’s open to new and existing Commissioners and provides essential skills needed to be an effective advocate and leader.

Amendments to FMLA & ADA 2009

In June, HTVN will release programs on the 2009 amendments to the Americans with Disabilities Act (ADA) and the Family Medical Leave Act (FMLA). Some changes to ADA include the new definitions for ‘disability’ and the Supreme Court’s interpretation of it. In addition, new mitigating measures and the effects of the changes will be discussed. There are three sessions in the FMLA series offering explanations on eligibility, health care providers, chronic conditions, employer notice requirements, military considerations, and other clarifications.

For more information, please visit HTVN online at http://htvn.maplelearn.com/ or contact Jackie Biega at jbiega@housingcenter.com.

Message from the Chair

Staying Ahead of the Curve

By all accounts, HAI Group is doing remarkably well in these difficult times. However, we never allow ourselves to get complacent or coast, so I offer this update on some ongoing efforts.

Quite some time ago, we realized that a significant number of our members would be moving toward either building new affordable housing, acquiring existing housing in their area or raising capital to modernize some of their aging public housing stock via tax credit and other mixed-finance deals. Once there was private money in the deal, HARRG and HAPI could not insure them, so we decided to create Housing Enterprise Risk Services (HERS).

The completely fronted model that we adopted for HERS was stifling our ability to compete in a number of the markets across the country. After much deliberation, we decided that creating a licensed carrier for this purpose was the best solution and Housing Enterprise Insurance Company, Inc. (HEIC) was born. We continue to seek licenses across the country and, as of this writing, we have 19 in place. There are some who believe that this entity may eventually become the “big dog” in the HAI Group pack. Whether or not that becomes reality, there is no doubt that the affordable housing marketplace is and always will be larger than the public housing inventory and we continue our best efforts to prepare for whatever the future brings.

The market is also driving a need for HAI Group to further enhance our one-stop- shopping capability. We have committed additional resources and placed added focus on our Agency Operations function. In this “cash is king” environment, it is important that we have access to alternative markets and the capability to offer a broader range of coverages and options to our members. We have coupled this with an initiative to develop and implement a new CustomerCentric service delivery model designed to enhance our customer-specific capabilities in creating insurance packages that are tailored to the members’ needs.

I hope this finds you healthy and doing well and, as always, I encourage you to consider becoming involved in HAI Group, your insurer of choice.