Report on the Implementation of the Russian Officer Resettlement Certificate Program

C.
Officer Registration 
After officers were notified of their eligibility, and invited to attend the briefing, the following steps were carried out
in the process of registering officers for the Housing Certificate Program: 
Conducting Group Briefings
Interviewing Officers
Issuing Certificates and Registering Certificates with Banks
Meeting with Builders and Real Estate Brokers
Only the Group briefing was presented to all officers at the same time.  The remainder of events occurred individually
or in small groups throughout the day of  the briefing.  Depending on the number of officers attending the briefing,
all five of these steps were completed in one or two days.  Each of these steps is discussed below.
D.
Group Briefings of Officers 
The group briefing was designed to provide general information about the Housing Certificate Program and to inform
all officers of program requirements and choices they must make.  At the end of the briefing, a representative of the
bank, and prospective sellers and real estate brokers also gave short presentations to the group.
1.
During the hour prior to the briefing while the briefing room was being set up, officers signed-in and had
their pictures taken.  Officers kept their pictures with them until they received their certificate.
2.
Members of the Housing Office responsible for the briefing ensured that there was a big enough room and
there were enough chairs for the group.  Enough interviewers were assigned to complete individual
interviews for all officers attending the briefing that day.
3.
Briefings lasted approximately one to one and one-quarter hours, with a schedule as follows:
Oblast Housing Administrator
Welcoming remarks; information about the Oblast/municipalities, such as major industries,
employment opportunities, and housing availability; agenda for the day.
Representative from Abt. Associates Inc
Welcome, program overview, key rules and a brief description of the following:
-
Who is  eligible to participate.
-
List of tasks each officer must complete.
-
The roles of the Housing Department, the Seller and the Bank.
-
The value of the Certificate and how it is determined.
-
Rules about eligible homes and time limits for completing a purchase.
-
Things that must happen before the dwelling unit is purchased.
-
What happens at time of purchase (the "closing").
Slide Show
Program rules and procedures.
Introduction of and Comments from the Bank Representative
Overview of their role in the program.
Introduction of Local Builders and Realtors Offering Units for the Program
Each offeror described the units they had available and provided the address and phone number
where they could be reached.

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Questions from the Officers.
Oblast Housing Administrator
Logistics for the remainder of the day--getting picture taken, registration and eligibility verification,
availability of lunch and snacks, buses for viewing available units.
4.
The briefing day was usually scheduled as follows:
9:00 -
  9:45
-
Set up briefing room; greet arriving officers, officers sign in, pictures
taken with a Polaroid camera.
10:00 - 11:15
-
Briefing
11:30 - 15:00
-
Individual interviews lasting up to 20 minutes each; documents and
affidavits checked; eligibility verified; registration completed; picture
attached to certificate.
11:30 - 15:00
-
After verification of eligibility and certificate issuance, each officer
brought completed certificate to the bank representative to register the
Certificate and provide other required documents to the bank; copies of
papers made for officer to keep with him; bank funding letter issued for
appropriate size unit with name of officer written in.
11:30 - 15:00
-
After registration of Certificate with the bank, officers met with builders
to learn about new construction units, and with brokers to learn about
existing housing units.  Officers then set up schedules to visit units
individually or in groups.
E.
Officer Interviews 
1.
The purpose of the officer interviews are:
-
To complete and sign a formal application for the Military Housing Certificate
Program.
-
To collect all documents necessary to verify officer eligibility for the program.
-
To determine eligibility.
-
To determine family size and the dwelling size using social norms.
-
To provide an information package to the officer and review its contents.
-
To answer questions.
-
To issue certificates.
2.
The interviewer created the officer file with documentation from the Housing Department and the local
Military Committee, or from the Ministry of Defense.   All files contained an application for housing, an
extract from the officer's discharge order, and a document indicating where they lived at the time they
applied for municipal housing.

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8
3.
The officer completed an Application for Participation in the Military Housing Certificate Program and
signed the application.  This application form included a statement that officers and their families who are
currently residing in Latvia or Estonia will exit the Baltics if they obtain a house under this program.
4.
The officer provided properly stamped documentation of the following:
a.
Copy of Original Discharge Order with appropriate official stamp, indicating date, place
and nature of discharge;
b.
Original Official Russian Passport;
c.
Official Verification of Family Size and Composition (for all family members that will be
living in the home);
d.
Official Verification of Current Residence in the Baltics (or elsewhere); 
e.
Sworn affidavit stating that...
1.
Upon obtaining housing under this program, the officer and his/her family  will
vacate their present dwelling(s) in the Baltic States and will not seek permanent
residency in any of the Baltic Republics, and will from then on enter the Baltic
Republics only as foreign guests.
2.
 (1) The officer will neither own nor will privatize or sell, any dwellings in the
Baltics; and (2) has not received, nor will receive, any payments in connection
with vacating any dwelling.
3.
The officer and his/her family do not currently own housing in Russia.
4.
The officer and his/her family have not made any payments to anyone to gain
access to this program or to be placed on lists of people entitled to benefit from
the program.
5.
All information that is required for participation in this program and that is
presented either orally or by signed documents, will be accurate, truthful and
complete to the best of the officer's ability; with the further understanding that
any false information will mean my exclusion from the Program and its benefits.
6.
The officer understands that if he/she is found to be eligible to participate in the
Program and if all Program terms and conditions are met, he/she will receive
financial assistance for the purchase of a housing unit.
7.
Officer is  participating voluntarily in the Program, and understands that if
he/she is currently on a municipal waiting list for housing and does not obtain a
dwelling unit under this program, he/she will retain his/her place on the that
waiting list.
5.
The interviewer then reviewed the documents, determined whether the officer was eligible, and what social
housing norm should be used (i.e. number of rooms to which officer and his/her family are entitled).  He/she
also determined the bank funding values for the three months following the date of Certificate issuance,
using a reference table.  These determinations were entered on a form to be attached to the officer's file and
sent to supervisory staff for approval.

2
 
See Appendix
3
 See Appendix
February 8, 1996
9
6.
If the officer was found eligible, the interviewer then gave the officer an Information Packet and explained
its contents.  The Information Packet included the following material:
-
Sample Presales Agreement.
-
List of available homes for sale and names of sellers.
-
List of housing brokers.
-
"Tips for Success."  Advice to the officer on how to find and buy a home.
-
Guide to Program Procedures
2
-
Bank Fact Sheet.  Bank name, address and contact person.
-
Extra copies of two-page program description to provide to sellers.
3
7.
Certificates were issued by the supervisor at the end of the officer interview, after eligibility had been
verified.  If eligibility could not be determined from the documents submitted, issuance was postponed
(until the proper documentation was provided) or denied (if there was obvious fraud).  The officer then took
his/her file to the Housing Office supervisor to be reviewed and approved, so that a certificate could be
issued.
8.
An Abt Associates Inc. staff was available at each briefing to assist in the determination of eligibility and
unit size.
F.
Certificate Issuance 
1.
Upon receiving the officer's file from an interviewer, the supervisor reviewed the recommendation for
eligibility, dwelling unit size as determined by the standard social housing norms and certificate value
prepared by the interviewer.  If the supervisor did not agree with the recommendation, he/she then made
appropriate changes and reviewed the changes with the interviewer and the officer.
2.
The supervisor then prepared one original Certificate for the officer, completing all blanks, signing the back
of the officer's photograph and attaching the photograph to the certificate.  He/she also recorded the
certificate number in the Certificate Log and entered the funding values for new and existing housing.
3.
The officer then delivered the Certificate and the Bank Funding Form  (along with copies of the other
documents) to the bank representative.
4.
Upon Issuance of each Certificate, the Housing Department did the following:
-
Entered Certificate number, officer name, date Certificate issued, dwelling unit size and
the bank funding values for the first three months to the Certificate Log.
-
Transmitted an original of the Certificate Log to the bank at the end of the day of each
briefing.

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-
Put the copy of each officer's Certificate and other documents retained by the
Municipality in the officer's file.
G.
Pricing of Certificates 
1.
Bank Funding Values were stated in U.S. dollars and did not exceed $25,000.  A pricing methodology was
developed for calculating Bank Funding values for different unit sizes and types (new or existing).  The
Oblast gathered required data for new and existing housing and supplied them  to Abt Associates Inc., who
then gave the calculated funding values to the Municipal Housing Department and the bank.
2.
Certificate pricing periods ran from the first day of the month to the last day of the month.
3.
When the officer received his/her Certificate, he/she also received a Bank Funding Information Form with
values on it for the first month (or partial month) the officer was in the program, plus values for the second
and third months for both new construction and existing housing.  Each month's value represented the
amount the bank would pay if a sales transaction took place in that month.
4.
Although the maximum funding value was $ 25,000, the exact certificate value depended upon the cost of
housing in the Oblast and the size of the flat the officer was entitled to, based upon Russian social norms. 
If the certificate value was not enough to pay the price he/she agreed to in the presales agreement, the
officer had to be prepared to pay the difference.
5.
At the end of each month after the first whole or partial month, the Abt Associates Inc. completed pricing
calculations for the next months.  These were completed no later than the last working day of each month
and no sooner than the 25th calendar day.
6.
The amount of funding the bank provided was based on the date of sale, and the Bank Funding document
showed the  values for only three months for new housing and for existing housing.
H.
Termination of Certificates 
1.
If an officer did not returned a signed presales agreement to the bank within one month of Certificate
issuance, the Certificate expired.  The expiration date was the same day of the month on which the
Certificate was issued, one month later.   Extensions were granted if the officer requested one.  Under such
circumstances, the bank would write a letter requesting a first month extension to Abt Associates Inc.  The
request for extension would then be forwarded to USAID, and the extension would be granted with the
approval of USAID.  However, the first month extension would still require the officer to complete the sales
transaction within four months of the certificate issuance date.
Four-Month Termination
2.
If an officer was able to execute a presales agreement within one month, he/she had to complete the sale
within a four-month period.  The four-month date of Certificate expiration was the same day of the month in
which the Certificate was issued, four months later.
3.
If a failure to purchase the dwelling unit which was under presales agreement was due to the officer's failure
to adhere to the agreement, then the officer's certificate would  be terminated with a notification letter.  If
failure to complete sale was due to the seller's failure to adhere to the purchase agreement (e.g. construction
delays), then the officer would be granted a certificate extension.  The extension would be granted after the
bank's request for an extension was approved by USAID.

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I.
Record Keeping And Program Review 
1.
Abt Associates Inc. contracted with a program reviewer, PW,  to:
a)
evaluate each officer/seller sales transaction for conformance to program requirements,
and
b)
conduct an overall review of the results of the Housing Certificate Program.
2.
The banks were responsible for maintaining records of each officer/seller sales transaction, including use of
all funds received from USAID to redeem officer Certificates.

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Financial Systems Overview
Financial Systems Design Objective 
The design of the financial systems used to carry out the objectives of the Housing Certificate Program was largely
conceived to place ultimate financial risk on the Russian Federation as set forth in the Program Agreement while
creating a mechanism to directly provide program funds exactly when the local administrative unit requires it.
Integration of Administrative and Financial Management 
Consideration for financial system design integrated the key responsibilities of the local administrating units which
are similar to those identified in the work performed under the Pilot Project by Urban Institute and can be summarized
in a few steps:
A.
Upon issuance of a Housing Certificate, and when the officer presented his/her certificate, the bank opened
a case file and issued the officer a bank funding letter, which stated the amount of funding the officer would 
be entitled to if he/she followed the program's terms and conditions.  The banks were made responsible for
updating funding values when Abt Associates Inc. announced new values each month.
B.
The bank reviewed the officer's proposed presales agreement and inspected the unit to determine its
condition and its likelihood of being completed on schedule.
C.
When the unit was ready to be sold, the bank helped the officer prepare for closing and submitted
supporting documentation to the program reviewer, who in turn advised the bank whether or not the case
had been approved.
D.
At the closing, the bank disbursed funds to the seller and ensured that all necessary paperwork was
properly executed, and that all required fees and taxes were paid by the appropriate parties.
E.
The bank provided on a weekly basis to Abt Associates Inc. and to the program reviewer, PW the status of
all housing voucher certificates processed.
The purpose of the Bank Manual was to specify how the bank should conduct each of these tasks.  The financial
system was designed to coordinate the cash flow while each transaction was simultaneously being processed in
accordance with the administrative procedures of the Bank Manual.
Goals of the Financial System 
The goal of the financial system was to ensure that Federal funds remain in any one account for the shortest
possible time, however, in the event that Federal funds were not immediately required, the funds remained in an
account in the Cambridge headquarters and were transferred only after an approval was received from the program
reviewer, PW,  that a certificate could be redeemed in a participating Oblast.  The initial request for funds was
submitted at the conclusion of a briefing where the Oblast and municipal officials distributed certificates.
How the System Worked 
1.
Request for Advance Funds to USAID - Moscow.
Abt Moscow submitted an advance request at the conclusion of each briefing.  The request specified the
name of the officer, Oblast, certificate number and estimated certificate amount.  The wire transfers were
handled initially via Electronic Funds Transfer (EFT) and than later by Automated Cash Handling (ACH). 

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Fund advances made through ACH reduced the amount of time of receipt of cash from one month or longer
to about two weeks.
2.
Program Reviewer Approval
The same day that Abt Moscow received an approval from the program reviewer that all documents had
been reviewed and approved, the Abt Moscow office requested the Finance Department of Abt
Headquarters via fax to transfer funds from the reserve of advance funds in Abt Headquarters to the U.S.
correspondent account of Tveruniversalbank.
3.
Finance Department Transfer of Funds
The transfer of funds from Abt to the U.S. correspondent account of Tveruniversalbank was made in one
lump sum usually on the next business day.
4.
Bank Transfer Information Provided to Tveruniversalbank
In Moscow, Abt faxed a letter to Tveruniversalbank in Tver city stating that it would receive a lump sum in
a specified amount and requested Tveruniversalbank to transfer the funds in the amount specified in the
letter to the US correspondent accounts of the Russian banks requiring funds.
5.
Approval to Disburse Funds
Upon receipt of the Program Reviewers approval of  a certificate, a fax was prepared usually the same
business day, providing the banks with approval that it could disburse a specified amount to a specific
individual when it receives the funds from Tveruniversalbank.
6.
Local Banks Receive Funds
Tveruniversalbank transferred the funds to the banks indicated in our letter to them the same day that it
received the funds from the U.S. as well as a complete set of instructions from the Abt Moscow office.
7.
Seller Receives Funds
The bank disbursed to the seller on behalf of the officer the money agreed upon in the presales contract
and sent the seller acknowledgment and its invoice to Abt Moscow.
8.
Abt Liquidates Funds
Abt submitted a  liquidation on SF1034 to USAID of both voucher funds and bank fees accompanied by the
seller acknowledgment and the bank invoice.
9.
Banks Receives Commissions
The banks fees were paid within a week of the receipt of a proper invoice and seller acknowledgments
which matched the amount of the approval submitted previously by the program reviewer.
Financial System Reporting and Monitoring 
Advance Request Report
Of the three reports integral to the successful monitoring of the program, this report recorded the dates and amount
of all advance requests made and received by USAID.  Since only sixteen draws were requested, it was designed as a
point of reference used to maintain an appropriate reserve for voucher payments while disbursements and
liquidations were being processed daily.
Disbursement Report
As its name indicates, this report was useful in recording disbursements on any given day to the Oblasts as well as
the associated approval amount.  The report illustrated the progress the Oblast was making in financial terms to
meeting its goal in disbursing the program funds allocated to it.   The disbursements remained constant once they

February 8, 1996
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had been made even though the approval amount was revised due to certificate cancellations or adjustments in the
voucher value.  This report measured the credits and debits of our account with each of the participating banks.
Liquidation Report    
This report recorded liquidated vouchers and bank fees and indicated the final step required under the subcontract
for the bank.  The report registered the project completion rate of the program in each of the Oblasts.

4
 For a list of International Standard Banks, see Appendix
February 8, 1996
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Site Report
The Russian Officer Resettlement Certificate Program in
Belgorod Oblast 
The Russian Officer Resettlement Certificate program in the Oblast of Belgorod started on January 13, 1995.  At the
time of the program suspension on May 31, 1995, 279 officers had received certificates.  This represents 79.7 percent
of the 350 officers who would have been housed under the terms of the MOU which was signed on December 6,
1994.