[Federal Register Volume 61, Number 251 (Monday, December 30, 1996)]
[Rules and Regulations]
[Pages 68894-68950]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-32469]
[[Page 68893]]
_______________________________________________________________________
Part III
Department of Housing and Urban Development
_______________________________________________________________________
24 CFR Part 901
Public Housing Management Assessment Program; Interim Rule
Federal Register / Vol. 61, No. 251 / Monday, December 30, 1996 /
Rules and Regulations
[[Page 68894]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 901
[Docket No. FR-3447-I-03]
RIN 2577-AA89
Public Housing Management Assessment Program
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Interim rule.
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SUMMARY: This interim rule implements the proposed revision, published
on May 6, 1996, of the Public Housing Management Assessment Program
(PHMAP) at 24 CFR part 901. PHMAP applies to public housing agencies
(PHAs) and resident management corporations (RMCs), and any other
entities under contract to manage public housing, but does not apply to
Indian housing authorities, nor to the Family Self-Sufficiency Program
authorized under section 23. PHMAP provides policies and procedures to
identify PHA management capabilities and deficiencies, and assists HUD
State/Area Offices in accountability monitoring and risk management.
DATES: Effective Date: January 29, 1997. Assessments using the
requirements of this rule will begin with PHAs whose fiscal years end
on March 31, 1997, the final date of the quarter after this rule is
published in the Federal Register.
FOR FURTHER INFORMATION CONTACT: MaryAnn Russ, Deputy Assistant
Secretary for Public and Assisted Housing Operations, Office of Public
and Indian Housing, Department of Housing and Urban Development, 451
Seventh Street, S.W., Washington, D.C. 20410, telephone (202) 708-1380.
A telecommunications device for hearing or speech impaired persons
(TTY) is available at (202) 708-0850. (These are not toll-free
telephone numbers.)
SUPPLEMENTARY INFORMATION: On May 6, 1996, HUD published a proposed
rule (61 FR 20358) to revise the entire PHMAP at 24 CFR part 901.
Eighty-seven comments were received on the proposed rule. The public
comments on the proposed rule and the resulting changes in this rule
are discussed below in section II of this preamble.
I. Highlights of Changes From the Proposed Rule
A number of changes, more fully discussed in section II of this
preamble, below, have been made to the proposed rule by this interim
rule, including the following:
The definition for ``vacancy days: is modified to specify
that it pertains to ``dwelling'' units.
The definitions and methodologies for both the Performance
Funding System (PFS) and PHMAP should be the same as long as feasible,
and the language of the new rule reflects that.
Definitions of the terms ``effective lease date,''
``maintenance plan,'' and ``move-out date'' are added.
The definition of ``average turnaround time'' is changed
to read, ``. . . the annual average of the total number of turnaround
days between the latter of the legal expiration date of the immediate
past lease or the actual move-out date of the former tenant (whenever
that occurred, including in some previous fiscal year) and the date a
new lease takes effect.''
The threshold for progress in reducing the vacancy rate
that applies to a C grade has been changed from 30% to 15 percentage
points.
The term ``Reduced Actual Vacancy Rate in Previous 3
Years'' is clarified to include the fiscal year being assessed under
PHMAP in the 3-year period.
Dwelling units used for non-dwelling purposes with HUD
approval, employee occupied units, and vacant units approved for
demolition or disposition are not included as available units in the
determination of occupancy/vacancy rates
For purposes of indicator #2, Modernization, a minimum
time is specified between the date HUD's monitoring report or audit is
provided to the PHA and the end of the PHA's fiscal year in order to
give the PHA sufficient time to correct all findings. The Department
has revised components #3 and #4 to reflect a minimum time of 75
calendar days.
The Department agrees that emergency CGP work does not
require prior HUD approval and has revised component #5 of indicator
#2, Modernization, to specifically exclude emergency work.
The Department has added specific language to indicator
#4, Work Orders, stating that all preventive maintenance work orders
are to be tracked, as well as which type of work orders are exempted
from the calculation of this indicator.
The new resident services and community building indicator
is now subdivided into four equally weighted components, and the
indicator or the individual components are subject to exclusion based
on the particular circumstances of each PHA. The name of this indicator
has been renamed ``Resident Services and Community Building'' to place
a more accurate emphasis upon the specific role of PHAs for these
functions. PHA's with 100% elderly developments will not be assessed
under this indicator. To avoid penalizing small PHAs with active
programs, PHAs with fewer than 250 units or with 100% elderly
developments may request to be assessed under the indicator at the time
of PHMAP certification submission.
The Resident Services and Community Building indicator has
been revised in order to assess PHAs for the functions they perform in
operating resident services programs and for resident management or TOP
performance only when the PHA is the contract administrator for the
program.
The rule has been changed to state that indicator #8,
Security, does not apply to PHAs with fewer than 250 units under
management unless the PHA requests to be assessed under the indicator
at the time of the PHMAP certification submission.
Section 901.105(d)(3)(iv) has been clarified in the new
rule to state that a PHA's score for indicators #1, #4 and/or #5, after
any adjustment(s) for physical condition and/or neighborhood
environment, may not exceed the maximum potential weighted points
assigned to the respective indicator(s).
Section 901.115(e) of the proposed rule read, ``PHAs with
more than 100 units that achieve a total weighted score of less than
60% on indicator (2), modernization, shall be designated as mod-
troubled.'' The Department agrees that these ``small'' PHAs should also
be assessed on their modernization program, and has amended this
section accordingly.
The posting of PHA PHMAP scores is now required at all
offices, rather than in all developments.
The rule makes clear that PHAs are only required to post
and report out final PHMAP scores and do not have to post and report
any score that is appealed in a timely basis and is under consideration
by HUD.
The rule now specifically permits an appeal from a State/
Area Office rejection of a claim for additional scoring adjustment that
is based on the physical condition or neighborhood environment of
housing developments.
In sections 901.220(b) and 901.225, the Department has
changed the percentage in the new rule to require that 20% of the
residents at a PHA in substantial default indicate to HUD their
interest in participating in the competitive proposal process.
The period has been extended to a 60, rather than 45, day
submission period for certifications to be submitted following the end
of a PHA's fiscal year.
[[Page 68895]]
II. Discussion of Public Comments
General Comments
Comment: One comment stated that PHAs should be monitored, but the
PHMAP grading system is not the answer.
Response: Congress passed the amendments to the 1937 Act that
authorize PHMAP, and it is the clear intent and purpose of Congress to
require HUD to assess PHA management performance. The authorizing
statute provides specific statutory indicators, and permits, as HUD
deems appropriate, up to five additional ones to be used for this
purpose.
Comment: Twenty-four comments stated that a truer assessment can be
accomplished now than before; overall, the proposed rule is positive;
generally pleased with the proposed revisions that eliminate the
snapshot indicators; and the proposed rule is a vast improvement over
the current PHMAP certification. Many of the commenters commended HUD's
effort to streamline the certification process by reducing the number
of indicators from 12 to eight and by providing standard definitions
for critical terms. The first six indicators are measures of essential
property management and a marked improvement over the current system.
Response: The comments are noted by the Department.
Comment: Five comments felt that there should be a transition
period to allow adequate time to change computer programs. There should
be at least one year to sample the new indicators to see how changes
are going to affect individual PHAs. Any revision of the PHMAP should
be made effective beginning with the next fiscal year after the new
rule has been published. Two comments felt that if Congress has moved
the authorization process forward, PHA's should have an ``option year''
implementation where a PHA has a choice to use either the current PHMAP
or the new PHMAP. If the authorization process is stalled, the
Department should not implement the new rule.
Response: Most of the data elements required to determine the grade
or score for the new indicators are already being maintained by PHAs
for reporting requirements for the current PHMAP rule or for other
programs. Because of that, a long transition period is not needed.
Therefore, assessment under this rule will begin with PHAs whose fiscal
year ends the quarter after the publication of this rule (PHAs whose
fiscal year ends in the quarter immediately following publication of
this revised rule will be assessed under the ``old'' PHMAP rule). This
transition period will permit PHAs to organize their data in order to
respond to the new requirements. During the first year of
implementation of the new rule, the Department will consider
modification and exclusion requests based on special circumstances
arising from the initial implementation process. A choice of which set
of criteria to use (have PHAs choose under which PHMAP rule, old or
new, to be assessed) is not feasible because all PHA's must be assessed
using the same indicators for the same period of time (i.e., the same
calendar year) in order for the scoring to be comparable and fair. HUD
is moving forward with this rule because the implementation of the new
PHMAP is not dependant upon Congressional authorization. The new rule
is published as an interim rule to indicate HUD's intention to continue
to refine and improve PHMAP.
Comment: Three Comments requested the Department not to establish a
system which requires PHAs to retroactively retrieve information. The
Commenters stated that in areas where ``improvement over the last three
years'' is considered to calculate the grade, the information needed is
not readily available to the PHAs in the new format required by the
proposed rule. A transition process should be addressed in the new rule
to deal with this.
Response: The PHMAP new rule does not require a PHA to
retroactively retrieve information unless the PHA chooses to certify to
the percentage of improvement within the prior three year period as
permitted by some of the indicators. Since whether to make such a
certification is the decision of each PHA, a PHA should factor in the
additional time to retrieve the necessary information. A transitional
period for this reason is deemed to be unnecessary.
Comment: Three Comments felt that with fewer indicators, it will be
more difficult for small PHAs to achieve high performer status; a low
score on one indicator will have a much greater impact on the total
score.
Response: The reinvention and streamlining of the PHMAP process
seeks to focus on the most significant management aspects of PHA
management and reduce the burden of the PHMAP process while still
producing a valid and reliable assessment. However, the use of fewer
indicators does not result in a disproportionate impact from any one
indicator. The use of modification and exclusion requests allows PHAs
the opportunity to justify why they should not be penalized by a
performance that does not exactly meet the requirements of an
indicator. Even if additional, though less significant, indicators were
used in PHMAP, the weighting of indicators according to their
significance would reduce their individual impact on the score despite
the additional assessment burden that would result.
Comment: One Comment stated that HUD has attempted to add
compliance with specific directives to a program that is supposed to
rate performance, and that including them in PHMAP waters down the
focus and the results of the program. HUD should remove all non-
essential components (Section 3 program at 24 CFR part 135, energy/
utility management, etc.).
Response: HUD has attempted to limit PHMAP to examining essential
aspects of PHA management. Of these, some that deal with compliance
issues, such as the energy indicator, are essential because they are
statutory. In other indicators, such as Resident Initiatives, which
examines, among other subjects, implementation of Section 3 programs,
the degree of successful implementation is regarded as a valid measure
of a PHA's efforts to encourage partnerships with residents and the
local community that help improve management operations at the PHA.
However, compliance-related measures have been kept at a minimum in
this rule.
Comment: One Comment felt that the State/Area Offices should be
given the flexibility to correct shortcomings in the system which could
not have been foreseen in advance.
Response: This rule does provide a high degree of the requested
flexibility to State/Area Offices. The State/Area Offices assess each
PHA within their jurisdiction on an annual basis, and make
determinations for high-performing, standard, and troubled PHAs, and
troubled PHAs with respect to the program under section 14 (mod-
troubled) in accordance with a PHA's PHMAP weighted score. On-site
confirmatory reviews may be conducted by the State/Area Offices, which
may result in corrections to a PHAs total weighted score, if
appropriate. In addition, State/Area Offices make determinations for
exclusion and modification requests, perhaps the greatest area of
flexibility in the PHMAP rule. At the same time, HUD must ensure that
PHMAP is a truly nationwide assessment methodology and that comparable
performance by PHAs in different State/Area Offices is rated without
regard to the location.
Comment: One Comment stated that the Commenter has worked very hard
to achieve high performer status, but cannot achieve it, under the
proposed
[[Page 68896]]
PHMAP ratings. Surely, a rating scheme can be formulated that would be
equally fair to all PHAs, taking into consideration the huge
differences between small and large PHAs, big city and rural PHAs, and
the necessity for each to be operated differently.
Response: As indicated in the preamble of the proposed rule, the
Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1992 (92 App. Act) (approved
October 28, 1991, Pub. L. 102-139) provided that the evaluation of PHAs
must be administered flexibly to ensure that they are not penalized for
circumstances beyond their control; and that the weights assigned to
indicators must reflect the differences in management difficulty that
result from physical condition and neighborhood environment. HUD
implements this mandate, which also reflects the concerns expressed in
the comment, by permitting PHAs to submit modification and exclusion
requests, by limiting the applicability of certain indicators by PHA
size, and by assigning additional adjustments to a PHA's PHMAP score
based upon physical condition and neighborhood environment.
Comment: Two comments stated that PHMAP scores for PHAs and RMCs
should be assessed and scored separately. The purpose of the RMC is to
manage and maintain public housing units independent of the PHA. The
RMC is an independent body that neither answers to, nor is required to
follow the advice of the PHA. Resident groups are being given an
enormous amount of responsibility, without the corresponding
accountability which puts the PHA in an unfair and untenable position.
To relieve the RMC of the necessity of being accountable creates a
situation of ``smoke and mirrors.'' Don't let resident management be an
illusion; make it real. If the RMC has been deemed eligible and able to
manage, it should also be deemed eligible to handle the corresponding
success or failure. Do not combine RMC and PHA PHMAP scores.
Response: As discussed in the preamble to the proposed rule,
because an RMC enters into a contract with a PHA to perform specific
management functions on a development-by-development basis, and because
the scope of the management that is undertaken varies, not every
indicator that applies to a PHA would be applicable to each RMC. Even
if an RMC were to assume all of the management functions for a
particular development, 24 CFR 964.225(d), entitled, Management
contract, and 24 CFR 964.225(h), entitled, Prohibited activities,
provide that a PHA may enter into a management contract with a resident
management corporation, but a PHA may not contract for assumption by
the resident management corporation of the PHA's underlying
responsibilities to the Department under the ACC. In addition, 24 CFR
964.225(k) requires a PHA to review, not less than annually, an RMC's
performance to ensure that it complies with all applicable requirements
and meets agreed-upon standards of performance. The ultimate
responsibility for the management of all of its developments resides
with the PHA, whether it contracts out management or other services to
an RMC or any other contractor.
Comment: Two comments stated that the sample worksheet for
indicator #6 and the PHMAP certification form are not exactly user
friendly. One commenter suggested that HUD redesign these two forms so
that they can be readily understood and computer formatted for those
PHAs that have such capability. The other commenter stated that the new
rule should include a standard questionnaire form for PHA use.
Response: The worksheet and certification form have been
redesigned, as applicable, to make them more user friendly. HUD
welcomes additional, specific recommendations to improve these
documents further.
Comment: One comment felt that PHMAP should be aimed toward
identifying a quality and reliable service delivery. Progress of
development conditions, resident involvement in the solution of
community affairs, as well as independent achievements by the residents
should be evidence of growth and should be rewarded with high scores
and additional benefits.
Response: Even with the reduction and streamlining of PHMAP to
measure only the essential aspects of PHA management, as discussed in
previous responses, the significance of resident involvement and
achievement are recognized in this rule by maintaining resident
involvement as a separate indicator. However, this is only one factor
in a program that attempts to assess all of the significant areas of
PHA management and a PHA must perform well in each area to receive a
high score and additional benefits.
Comment: One comment maintained that the results in the quality of
work and development conditions should be evaluated in connection with
available resources versus market cost in the jurisdictions.
Response: The current PHMAP regulation contains substantial
provisions to ensure that PHAs are not penalized for conditions beyond
their control: (1) a PHA may request a modification of any indicator
and/or component to compensate for conditions beyond its control; (2) a
PHA may request the exclusion of an indicator and/or component for the
same reason; (3) without requesting a modification, the current and new
PHMAP regulations both allow PHAs to modify the scoring calculations
for certain indicators by exempting certain units; and (4) there is a
two-stage appeal process available if the PHA fails to find relief
under items one, two and three, above. As discussed previously,
exclusion and modification requests are processed by the local State/
Area Office, which would have the greatest awareness of the resources
and market conditions affecting a PHA. These procedures provide the
appropriate mechanism to address special circumstances, such as area
market costs, affecting a PHA's performance.
Comment: Two comments were concerned with revisions that would
require the collection and management of new data when that data is
needed solely for PHMAP and is not normally utilized in the management
of housing. Such changes to the data collection and processing system
are not easily accomplished.
Response: The Department's experience in implementing PHMAP so far
has resulted in some refinement in the data necessary to assess
management performance. The goal of this rule is to provide a more
valid assessment process and HUD believes the data requested will
produce this result. HUD will continue to evaluate the appropriateness
and usefulness of the information it gathers in its implementation of
this rule, and will make adjustments as warranted.
Comment: Three comments stated that the proposed rule should be
delayed until Congress has completed action concerning the management
assessment criteria of PHAs. Bills in the Senate and the House have
provisions that would affect PHMAP. The Senate bill would add two
indicators and the House bill would create an accreditation process for
PHAs. It is not clear how these provisions may be reconciled. If the
final bill contains significant changes, HUD should incorporate them
into a new proposed rule re-issued for comment.
Response: HUD believes that this rule, incorporating nearly five
years of experience and feedback on the rule first implemented in
January 1992, represents an improvement over the existing process. The
Department will
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fully implement any statutory amendments to PHMAP when they are made,
but is also continuing to go forward with this rule to avoid delay in
implementing an improved process.
Comment: One comment stated that a PHA's ability to maintain its
units will decline due to the budget cuts to all PHAs, thus affecting
the PHMAP scores. With no funds for repairs, more units will fail HQS.
How are PHAs suppose to improve and maintain housing units when funds
are reduced, and PHAs are denied modernization funds?
Response: HUD recognizes that PHAs have not been fully funded. In
FY 1996, for example, PHAs received only 89% of their funding
eligibility under the Performance Funding System (PFS). To the extent
that a PHA can demonstrate its management performance has been
adversely affected by funding shortfalls, it should do so in an
exclusion/modification request. PHAs are expected and encouraged to do
their best, but they cannot be expected to do the impossible. In
addition, alternative measures have been implemented such as minimum
rents and the new focus on mixed-income housing, which provide PHAs
with possible alternative income sources.
Comment: One comment stated that a system designed to measure
performance of PHAs nationally must be flexible and accommodate local
differences. PHMAP should give consideration to the conditions and
level of difficulty involved in owning and operating public housing in
poverty impacted and distressed urban areas.
Response: PHMAP is required by statute to take into account the
physical condition of a PHA's developments and their neighborhood
environment in assessing management. In the previous rule, PHMAP scores
could be adjusted, based upon physical condition and neighborhood, by
up to 10 points to raise a designation to the next status level. In
this rule, the overall PHMAP score of a PHA will be adjusted by adding
weighted points that reflect the differences in the difficulty of
managing developments that result from the physical condition and/or
the neighborhood environment of a PHA's developments.
Comment: Two comments felt that two indicators, Resident Services
and Security, are troubling and display a tendency toward meddling and
micromanagement. HUD has been trying to retreat from that tendency.
Plus, Congress has been cutting funding for PHAs. The commenters felt
that these indicators are non-management in nature and are not within
the control of the PHA. PHMAP should grade only those indicators which
are within the control of the management.
Response: A PHA's management efforts are directed toward
developments, which are not just properties or structures, but which
are housing: buildings that are people's homes. Because of this, there
is a strong relationship between a PHA's management efforts and quality
of life for a development's residents. While the PHA cannot mandate or
control the positive interaction or advancement of its tenants, it can
foster the environment and opportunity for such interaction and
advancement. The resident involvement indicator attempts to measure a
PHA's success in accomplishing this. On the other hand, a PHA is
obligated to manage and respond to the unlawful behavior of tenants
whose actions impede the peaceful enjoyment of other tenants. The
security indicator addresses the PHA's success in managing this
significant housing issue.
Comment: One comment supports extending coverage to alternative
management entities.
Response: The Department appreciates this concurrence in its effort
to assess and improve the management performance of every PHA.
Comment: One comment urges HUD to adopt those changes that help
streamline the process of assessment and to use the simplest methods
necessary to achieve a particular goal or outcome.
Response: As discussed above, it is HUD's intention to streamline
and improve the PHMAP process with this new rule. Further, HUD is by no
means closing the door on additional refinement, but will continue to
consider and examine additional ways of improving PHMAP. To this end,
this rule is being published as an interim rule.
Comment: One comment felt that it is equally important for PHAs to
develop strong relationships with their surroundings and their
neighbors. There should be points added or deducted to a PHA's final
score based on the role a PHA assumes and its relationship with its
surroundings.
Response: The resident involvement indicator in this rule, as did
the previous resident initiatives indicator that is being replaced,
assesses, in part, a PHA's efforts to involve residents to improve the
community in which they live. Beyond this specific aspect of community
involvement, it is likely that a well managed PHA, the general goal of
PHMAP, is a positive community asset and a good neighbor. The
recognition of outstanding individual community contributions and
achievements by PHAs is important and receives attention from HUD in
special ceremonies rather than in PHMAP, which focuses on the overall,
day-to-day management aspects of PHAs.
Comment: One comment felt that there should be a simplified list of
indicators to be used for smaller PHAs: vacancy rate; rents
uncollected; inspections; and financial management.
Response: The authorizing statute for PHMAP lists seven indicators
that must be used in assessing PHAs. This limits HUD's ability to
differentiate between large and small PHAs in the indicators used for
assessment. However, for indicators #7 and #8, PHAs with fewer than 250
units will not be assessed under these indicators unless they request
to be assessed at the time of submission of the PHMAP certification.
Comment: Three comments stated that the proposed rule is more
process-oriented and requires the tracking and/or collection of much
more data. This is more burdensome and requires additional
administrative responsibilities at a time when the level of public
housing operating subsidy is being reduced.
Response: Although the Paperwork burden estimate for this rule
exceeds the Paperwork burden estimate for the previous rule published
on January 17, 1992, a substantial part of that increase results from
HUD's recognition that a change in necessary data for assessment
purposes will initially require more effort to compile. As was the case
for the previous rule, it is expected that as the collection and
organization of the data becomes more routine following the first
submission, the associated burden will also decrease.
Comment: One comment felt that HUD should look for ways to
eliminate regulations, not just change regulations.
Response: In the past year, HUD has undertaken an extensive effort
to reinvent and streamline all of its rules, and hundreds of pages of
regulations have been eliminated. The statute authorizing PHMAP
requires its implementation by regulations, and HUD must follow this
Congressional mandate.
Comment: Two comments stated that a continuing concern is that
making the annual grade in PHMAP may become the true mission of many
PHAs.
Response: HUD does not consider the prospect of PHA's refining
their management practices to become high performers under PHMAP year
after year to be distressing. The purpose of PHMAP is to assess the
quality of PHA management, and in implementing this program, HUD
intends for the score
[[Page 68898]]
achieved to be a valid measure of performance. To address situations in
which the PHMAP score poorly corresponds to the actual conditions at a
PHA, the rule permits the State/Area Office, in exceptional
circumstances listed in the rule, to reinstate any review to address
particular deficiencies, and to deny or rescind incentives or high
performer status, even though a PHA has satisfied all of the indicators
for high or standard performer designation. The purpose of this
provision is to prevent PHMAP from being an empty, pro forma exercise.
Comment: One comment believes that PHMAP is but one way to evaluate
a PHA's management and ultimately, the quality of its stock. PHMAP is
not a comprehensive measure of PHA quality and it is too process
oriented. Greater emphasis should be placed on key results which more
accurately equate with the quality of the housing stock.
Response: The observation in this comment does not quite correspond
to the parameters and purpose of PHMAP as established under the
authorizing statute. PHMAP evaluates PHA management performance using
seven indicators that are made mandatory under the statute, which
permits the Department to use up to five additional indicators. These
requirements establish limits on what must and what may be used to
assess the quality of a PHA's management, and not the quality of its
housing stock. The statute explicitly requires HUD to take into account
the difficulty of managing developments that result from their physical
condition, indicating the Congressional determination that, to some
degree, the quality of the housing stock is independent of the PHA's
management capability. HUD is obliged to implement PHMAP in a manner
consistent with the statute, and attempts to do so in a manner that
will produce a valid and reliable result. As the Department hopes this
rule demonstrates, HUD is, and will continue to be, receptive to the
refinement of PHMAP based upon its administrative experience and the
input it receives from PHAs.
Comment: One comment encourages HUD to publish handbook guidance
well in advance of the effective date of the new rule so that PHAs may
make any planning, record keeping or operational changes required to
ensure compliance and performance.
Response: The Department anticipates the issuance of a revised
PHMAP Handbook 7460.5 and a new confirmatory review guidebook prior to
the applicability date of the new rule.
Comment: One comment stated that the term ``approved, funded, on-
schedule annual modernization program'' is defined in the rule and in
the preamble under the discussion of indicator #1. But the term is not
used in indicator #1. Is it intended that the term be applied to the
exemption for ``vacant units undergoing modernization?'' If so, it
should be made explicit. Is it intended that the term be used in
connection with indicator #2? If so, then this term is contrary to the
rule's discussion of indicator #2, which includes only CIAP and CGP.
Response: The comment is noted, and the definition for ``approved,
funded, on-schedule annual modernization program'' is superseded by the
definition for ``vacant units undergoing modernization.'' The
definition in this rule, which includes the Hope VI Program, the
Vacancy Reduction Program (VRP), lead based paint risk assessment
funding (1992-1995) and any successor program to the CGP or the CIAP,
applies to indicators #1, #4 and #5, as appropriate. In addition, the
Department intended for all modernization programs to be assessed under
indicator #2. For this reason, lead based paint risk assessment funding
will be assessed under all five components of indicator #2. However,
due to the design of the Hope VI and the VRP, these program areas
cannot be assessed under components #1 and #2 under the modernization
indicator. Therefore, in completing a PHA's assessment for indicator
#2, the State/Area Office will only examine components #3, #4 and #5
for the Hope VI and the VRP. Appropriate language has been added to
indicator #2 in the new rule. A similar comment was made with respect
to indicators #4 and #5, and this response is also applicable to those
two indicators.
Section 901.10 Indicator #1, Vacancy Rate and Unit Turnaround
Component #1, Vacancy Rate
Comment: Many comments agreed with the changes proposed for the
indicator and commended the Department for making the indicator a more
representative measure of vacancies. Six comments commended the
Department for allowing an adjusted vacancy rate to be used for grades
above a C. Seven comments stated that this is a much better way to
compare vacancy indicator grades and scores since all PHAs will be
compared on the same basis. Several comments indicated that this is a
more accurate measure of good management and concurred with the
proposed rule combining these two indicators whereas currently they are
separate. One comment stated that the changes made to indicator #1 are
much more equitable than the current indicator requirements and two
other comments indicated agreement with adjusting the vacancies by the
conditions listed in the rule and with the grading scale for the
vacancy rates. Three comments expressed strong support for the change
indicating that it will allow HUD to more accurately judge a PHA's
vacancy rate.
Response: The Department agrees that, since the adjusted vacancy
rate is derived from valid exemptions, PHAs should be able to achieve
grades above a C level based on an adjusted vacancy rate. The
Department feels that the new component #1 will provide a more
representative picture of PHA vacancies than the current indicator. The
Department also agrees with the assumption that if a PHA scores C or
above in the vacancy component it should not have a problem with
turning around vacant units, and that combining current indicators #1
and #5 into the new indicator #1 is a correct decision.
Comment: Four comments stated that the new vacancy indicator is
really a measure of the number of vacancies weighted equally to the
turnover rate. The comments indicated that the new weighting of
turnover will penalize PHAs that have successful programs for families
that move out of public housing. Two comments stated that the proposed
rule rewards process over product and activity over results, and that
the proposal is far more process-oriented and less results-oriented
than the present system for counting vacancies. The proposed rule
states that vacancy rates should have greater significance than unit
turnaround but proposes a scoring system that requires greater reliance
on unit turnaround and unit turnover than on the number of units vacant
at the end of each month. Eight comments indicated that a 12 month
average of the number of units that are vacant at the end of each month
should be used. This is normally what is expected in any rental market
and the proposed method is too complicated and requires too much staff
time to calculate. Another comment stated that the proposed method
places as much emphasis on turnaround time as on actual vacancies and
suggested using a twelve month average of the number of vacant units on
the 10th day of each month to avoid the problem.
Three comments indicated that the new vacancy indicator would not
reward actual occupancy. Instead of measuring the number of units
vacant at the end of each month, it measures the number of units leased
each month and the amount of time required to lease the
[[Page 68899]]
units to arrive at a vacancy rate which converts to an occupancy rate.
The current method is an honest way to define occupancy levels.
Computing the vacancy rate by calculating the ratio of unit vacancy
days to unit days available places greater reliance on unit turnaround.
It requires PHAs to calculate the vacancy days for all units leased in
a given month plus the vacancy days for all units remaining vacant at
the end of the month, divided by the total unit days available for
occupancy that month.
Six comments stated that this method calculates vacancy days, which
is a function of turnover, rather than the actual number of vacant
units. For example, if two PHAs have the same number of units and
turnaround time, but one has higher turnover, the latter will
automatically have more vacant days than the former. The vacancy rate
should be the average vacancy rate over the past twelve months. Three
comments indicated that the current indicator allows PHAs to answer the
question, ``What is your vacancy rate?'' The answer is, ``Our vacancy
rate is the number of units vacant at the end of the month compared
with the number of units available for occupancy.'' Two comments stated
that if a PHA has a high turnover rate because it is moving residents
out for private lease-up or home ownership, this too, should be an
allowable adjustment to the vacancy rate because PHAs with high move-
out rates are adversely affected even though they may have no control
over the reasons for the high move-out. Two comments suggested that the
snapshot picture be retained.
Three comments indicated that the proposed rule penalizes high
turnover rates and provided the following examples: PHA with a high
turnover rate but the same unit turnaround time would get a higher
vacancy rate than a PHA with lower turnover rate (same unit turnaround
time): PHA ``Y'' with 100 units, and 20 units vacated and filled during
the year (10 days average turnaround) would have a .55% vacancy rate;
and PHA ``Z'' with 100 units, and 40 units vacated and filled during
the year (10 days average turnaround) would have a 1.10% vacancy rate.
A PHA with a high turnover rate and a lower unit turnaround time could
get a higher vacancy rate than a PHA with lower turnover rate and a
higher unit turnaround time: PHA ``A'' with 100 units, and 60 units
vacated and filled during the year (20 days average turnaround) would
have a 3.2% vacancy rate and a B grade. PHA ``B'' with 100 units, and
only 30 units vacated and filled during the year (35 days average
turnaround) would have a 2.8% vacancy rate and an A grade, even though
it averaged a higher (35 vs. 20) vacancy turnaround rate. There is no
basis for rewarding or penalizing a housing authority based on a higher
or lower percentage of residents moving out during a year. Turnover
rates depend on a variety of factors, many beyond the PHA's control.
Some factors are: availability of alternative affordable housing; self-
sufficiency programs; resident demographics; eligibility screening and
lease enforcement; and HUD required transfers.
Response: The Department agrees that by using a methodology that
takes into account circumstances and actions that impact on the
occupancy/vacancy status of a unit over the entire course of the PHA's
fiscal year, PHAs with high turnover rates will have more vacancy days
than comparable PHAs with low turnover rates, assuming that the
turnaround time is the same. The Department disagrees, however, with
the conclusion that this makes the proposed methodology less useful
than one based on taking a snapshot, either on a one-time basis, as is
currently the case, or on a monthly basis over a year's time as
suggested in some comments. The ``snapshot'' approach may be easier to
implement but it grades the PHA performance based on a single-day
measurement that may or may not be representative of the PHA
performance in this area over the entire period of time being assessed.
If an average based on 12 snapshots is better than one snapshot, then
an average based on 365 snapshots will present the most accurate
picture.
It is incorrect to state that the measure of vacancies and the
measure of turnaround time have been given equal weight in the
development of this indicator. The new rule combines the vacancy
indicator and the turnaround indicator of the current Sec. 901 into one
single indicator that has two components. The first component (with a
weight of x2) measures the vacancy rate and, if applicable, the
progress a PHA has made in reducing the vacancy rate. The second
component (with a weight of x1) measures turnaround time. Because the
vacancy rate is a clear manifestation of management effort and reflects
the essence of a PHA's mission, it has been weighted more heavily than
the unit turnaround component. In addition, the proposed rule would use
the second component only when a PHA scores below a C on the first
component.
The proposed methodology provides ample opportunities for a PHA to
adjust its vacancy days for turnover of units due to reasons such as
modernization or that are due to circumstances and actions beyond the
control of the PHA, such as court-ordered or HUD-approved desegregation
efforts. A PHA also has the option of requesting a modification to the
calculation of this component that would take into account any other
special factor, such as self-sufficiency activities or security
measures implemented by the PHA, that may contribute to a higher than
normal turnover of units. The indicator should not be a deterrent or
penalty to PHAs that have successful programs that encourage residents
to move out of public housing to private market housing opportunities.
Success builds upon success and a PHA that is able to work with
residents and prepare them for home ownership or private market rental
units should not have difficulties in attracting applicants for units
that have been vacated.
The Department believes the proposed method of calculating this
component to be the most accurate measure of a PHA's performance in
this area. Also, contrary to some comments, the proposed method of
calculation is the method commonly in use in the real estate industry.
Comment: One comment stated that the proposed rule requires more
calculations than the current method and also requires tracking each
unit for potential adjustments. This will be difficult for many PHAs
and for HUD field staff to verify. The current occupancy rate
calculation method is preferred. Three comments indicated that the
indicator will take hours more in record keeping. HUD reduces PFS and
modernization monies, but expects more and more in reports and record
keeping. The proposed method is cumbersome, inconsistent with other HUD
definitions for determining vacancy, and increases the difficulty level
for calculating vacancy rates.
Two comments stated that the new method of calculating the vacancy
rate is far more process-intensive than the previous methods. PHAs
should be given the opportunity to take a simple average based upon
end-of-month vacancies rather than using the far more complex
calculation offered in the proposed rule. Two comments stated that it
is poor management practice to calculate vacancy/occupancy percentages
one way for the PFS and another way for a management assessment system.
Two comments agreed with the expansion and clarification of the units
that can be exempted from the adjusted vacancy rate and indicated that
the nine
[[Page 68900]]
exemptions should remain consistent with reporting under the PFS.
One comment indicated concern with the need to maintain data on the
cause of each vacancy, as in the examples presented in the preamble.
For large PHAs the data collection and maintenance becomes very
difficult. Maintenance of this data is doable, but HUD needs to
recognize the impact on PHA data systems if the various categories for
adjustment are revised from time to time.
Three other comments stated that this level of evaluating vacancies
would be burdensome for large PHAs. To track the actual vacancy rate
and have the ability to also accurately calculate an adjusted vacancy
rate would require significant alterations to the mainframe computer
system programs as well as to standard operating procedures, and large
PHAs need ample time to implement these changes. One comment stated
that the new component requires that PHAs analyze each vacant unit and
in the absence of readily available industry software, this process
could prove burdensome for large PHAs. Another comment stated that if
HUD retains the methodology of the proposed rule it should provide PHAs
with software that do the bulk of the calculation for them.
Response: The Department does not believe that the information
collection requirements for this indicator represent an undue burden on
PHAs. Most of the data elements required to determine the grade or
score for the two components that comprise this indicator are already
being maintained by PHAs and used in calculating operating subsidy
eligibility under the PFS or used for reporting requirements of other
programs. In fact, if PHAs have been maintaining turnaround time data
accurately under the previous interim rule, no new data collection will
be required, just a change in computation.
The Department understands that a well-run PHA should have a system
in place for monitoring occupied units and vacant units and the
duration of vacancies. Beyond simply being good business practice, PHAs
must monitor turnaround time, both to evaluate the effectiveness of
their maintenance and marketing and leasing efforts, and to develop
information for the current PHMAP indicator on vacant unit turnaround
time. This should pose no more onerous burden on large PHAs than on
smaller institutions, and in fact, would probably be even more
important to a large PHA, where remote monitoring of large-scale
activities is the norm.
In response to the suggestion that HUD should provide software for
this purpose, HUD has no plans to develop additional software at this
time. In addition, as a matter of policy, HUD cannot be in a position
of competing with private-sector software developers.
To a significant extent, the Department has also used definitions
and methodologies in this section that are the same as those used in
other programs. An example of this consistency is that the adjustment
for units vacant for circumstances and actions beyond the PHA's control
as defined in Sec. 901.1(a)(9) is the same for both PHMAP and PFS. The
Department will issue guidance to PHAs on how to use existing sources
of data to calculate each component of this indicator.
Comment: Three comments stated that if HUD wants PHAs to calculate
vacancy loss, then HUD should adjust the turnaround indicator to
reflect that goal, rather than throwing out the existing common sense
method of calculating vacancies. Three other comments indicated that
HUD's justification for the new vacancy indicator is the need to
calculate vacancy loss like the private sector does. The private sector
can estimate dollar value of vacancy loss, but PHAs cannot because PHAs
do not realize rental income until the unit is rented. The private
sector can ``go down their waiting list'' or advertise in the paper to
pick the tenant who can move in the day the unit is ready and PHAs
can't do that. The information can be useful, but the private sector
uses it to determine budgets, not to determine vacancy rate.
Response: The Department disagrees with these comments. Neither the
current vacancy indicator nor the new vacancy indicator were developed
to be a measure of rental revenue lost because of units becoming
vacant. The vacancy indicator is not a measure of financial
performance, but a measure of the ability of the PHA to maximize
occupancy and minimize turnaround time within certain constraints
recognized by the Department.
Comment: Several comments addressed the changes in the grading
scale. One comment indicated that a vacancy rate of 3% for a grade C is
too stringent. Another expressed support for the change from 1% to 3%
vacancy rate in order to achieve an A grade, indicating that it makes
sense with the national average vacancy rate of 7%. Two comments stated
that the current 99% vacancy rate for an A is valid. Another comment
expressed concern with the change indicating that a vacancy rate of 7%
would yield a C grade and still exclude the unit turnaround component
from consideration. One comment stated that it is not clear if the 3%
vacancy threshold for not having to report unit turnaround was retained
or not. Another comment stated its support for the provision that
permits PHAs to choose between adjusted and actual vacancy rate
calculation, but suggested that HUD retain the previous interim rule's
alternative grade C for a reduction in vacancies of at least 30%.
One comment expressed support for the option that allows a PHA to
achieve a C grade if it reduced its actual vacancy rate by at least 15
percentage points within the past three years and has an adjusted
vacancy rate of between four and five percent. It also indicated
support for somewhat lower grades for PHAs making slower progress.
Another comment stated that a PHA can improve by at least 15% and still
receive a lower grade by not matching the adjusted vacancy rate
requirement.
Response: The Department agrees that a vacancy rate of 3% for a
grade C is too stringent and changed that in the proposed rule. The
Department believes that the new grading scale is reasonable and takes
into account the national average vacancy rate and also takes into
account the new method of calculating the vacancy rate, which is more
representative of the true performance of PHAs in this area over the
period of time being assessed.
The Department is also proposing a different threshold for not
having to report unit turnaround. The second component, vacant unit
turnaround time, will only apply to PHAs that score below a C grade on
the first component. PHAs can achieve a C grade by meeting one of the
following conditions: the PHA has an actual vacancy rate of greater
than 5% and less than or equal to 7%; or an adjusted vacancy rate of
greater than 3% and less than or equal to 4%; or the PHA reduced its
actual vacancy rate by at least 15 percentage points within the past
three years and has an adjusted vacancy rate of greater than 4% and
less than or equal to 5%.
Regarding the threshold for progress in reducing the vacancy rate
that applies to a C grade, the Department changed it from 30% to 15
percentage points. The Department agrees that it is important to
recognize and reward significant progress. It also understands that the
grade relief should not defeat the balance of the grading scale. The
grading scale already provides for a somewhat lower grade (a D) for
PHAs with adjusted vacancy rates between four and five percent that do
not achieve the 15 percentage points decrease in the actual vacancy
rate.
Comment: One comment requested that the term ``Reduced Actual
Vacancy
[[Page 68901]]
Rate in Previous 3 Years'' be clarified in order to indicate if the
fiscal year being assessed under PHMAP is the third year of that 3-year
period or if the 3-year period is prior to the PHMAP year being
assessed.
Response: The Department agrees with the comment and the new rule
has been changed to state that the fiscal year being assessed is the
third year of that three year period. An example will be provided in
the revision to the PHMAP Handbook 7460.5.
Comment: One comment stated that the idea of measuring a PHA's
performance over the previous three years seems to be unfair and
generate inaccurate statistics because of diverse variables that would
not remain constant over the years and suggested that each year be
measured against its previous year. Another comment indicated that the
PHA does not currently have a three-year history of the daily vacancy
rate so it must have time to collect this data. It proposed to use the
average rate on the last day of each month until it can get the actual
daily and adjusted rates. One other comment indicated that it would be
extremely difficult to track vacancy days and unit days available for
the previous three years and requested that a more accurate and
equitable method of calculation be sought so that comparison statistics
can remain accurate and consistent.
Response: The Department agrees that due to the change in the
method of computation, vacancy rates generated under the two systems
cannot be compared unless an adjustment is made to the statistics for
the previous two years. Only those PHAs interested in using this
grading option (progress in reducing the vacancy rate during the
previous three-year period) will have to recompute the vacancy rate for
the two years prior to the year being assessed, using the new
methodology. Most of the data needed for this will come from the
records developed by the PHA to comply with the PHMAP reporting
requirements for the current unit turnaround indicator.
Comment: One comment suggested that the five grades be condensed
into a ``satisfactory'' rating (2% adjusted vacancy rate or below);
``adequate'' rating (2-4%); and ``unsatisfactory'' rating (over 4%);
the five grades could be used as a mechanism for setting goals for
troubled PHAs but need not be required for all PHAs.
Response: The Department has some sympathy for the suggestion that
the number of evaluation levels be reduced and simplified, but we do
not believe it appropriate to address that simplification issue at this
time. The biggest reason for maintaining the larger number of
evaluation categories is that beyond the pass/fail differentiation, the
Department expects to be able to use PHMAP scores, and to some extent,
individual indicators, to identify PHAs where performance is clearly
superior and worthy of emulation, and at the other extreme, cases where
performance indicates a need for the Department's intervention in PHA
operations. Five or six ``grades'' may or may not be the perfect model
for this kind of evaluation, but the existing structure appears to be
working to date, and in the absence of demonstrable benefits of
alternate approaches, HUD does not see a need to revisit this issue at
this time.
Comment: One comment stated that it appears to be impossible for
PHAs to obtain a grade of D or F if the adjusted vacancy rate is
greater than 6%. This is not a true grading system and makes it
impossible for PHAs with a high vacancy rate to realize any points for
improvement. It would be unfair to compare a PHA with an older housing
stock to a PHA which may have newer stock or modernized units.
Response: The comment is partially correct that under the proposed
rule an adjusted vacancy rate greater than 6% will result in a PHA
receiving a grade of F. If a PHA has an adjusted vacancy rate greater
than 6% and less than or equal to 7%, and has reduced its actual
vacancy rate by at least 5 percentage points during the past three
years, then the PHA would get an E instead of an F. The grading system
is not unfair to high vacancy PHAs because it does allow for
adjustments in recognition that some types of vacancies are beyond the
control of the PHA.
Comment: One comment stated that the actual vacancy rate does not
exempt units occupied by employees, units used for resident services
and units undergoing modernization. PHAs are penalized by an increase
in the actual vacancy rate when these units are not exempted from the
actual vacancy rate. This creates the potential for PHAs to eliminate
needed resident services by eliminating space for these services in an
effort to decrease the vacancy rate. Most PHAs will be prevented from
ever using the actual vacancy rate if these units are not exempted.
Response: The Department disagrees with the comment. The rule has
been clarified to indicate that units approved for non-dwelling use,
employee occupied units and vacant units approved for deprogramming
will be completely excluded from the computation of this indicator.
Regarding the units undergoing modernization, PHAs are not penalized
because these units can also be excluded under the adjusted vacancy
rate computation. The grading scale for the vacancy indicator allows
PHAs to get all possible grades, including an A, under the adjusted
vacancy rate option. There is no real incentive for PHAs to cut back on
resident services by eliminating space for these services in an effort
to decrease the vacancy rate.
Comment: One comment stated that the increase in difficulty for
calculating the vacancy rate will increase the cost of a PHA's annual
audit.
Response: The Department believes that the increase in scope of
work would not represent a substantial increase in the cost of the
audit and that the additional expense, if any, will represent a good
investment for the PHA. Since the Department reimburses a PHA for its
audit costs, it will reimburse a PHA for any additional audit costs
resulting from changes to any of the indicators.
Comment: One comment stated that the proposed calculation counts
vacant units both during the month and at the end of the month,
regardless of reoccupancy during the 30 days.
Response: The Department disagrees. The proposed calculation adds
the number of vacant units each day of the year (adjusting for valid
exemptions) and divides by the number of unit/days available.
Comment: Three comments proposed that PHAs should be able to choose
either the current method or the new method for computing vacancy
rates. One of the comments stated that there are currently two methods
for calculating the vacancy rate and it seems a bit arbitrary to
abolish this flexibility that PHAs utilize to reduce their paperwork
requirements. Form HUD-51234 already is a requirement that must be
submitted by PHAs and to require a duplication of effort for PHMAP
purposes is contrary to good management practices. The comments
recommend the use of form HUD-51234 or the new calculation methodology
at the discretion of the PHA. This would enable PHAs to retain
flexibility in the manner in which they choose to determine the vacancy
rate without imposing any additional paperwork burden unless the PHAs
elect to do so.
Response: While the Department favors maximum local flexibility, it
is impractical to allow PHAs to be able to pick and choose among
different methodologies for developing the data for this most important
indicator. Allowing that would make it impossible to compare the
vacancy rates for different PHAs (and even for the same
[[Page 68902]]
PHA over a period of time). The Department believes very strongly that
all program participants need to be evaluated under the same basic
procedures, especially the same definitions. To do otherwise is to
invite complaints that the process compares apples with oranges; the
process can't afford to permit the PHAs to elect whether to present
``apples or oranges'' for evaluation.
Comment: One comment stated that the Department should give
consideration to reducing the vacancy standards for a period of time
due to the One Strike policy. Improved screening standards will
increase the amount of time to process an application. If the
Department is seriously concerned about quality of life in PHAs, give
the occupancy people time to do their jobs efficiently.
Response: The Department agrees that the implementation of the
``One Strike and You're Out'' policy and stricter security measures may
temporarily increase vacancy and turnover rates at some PHAs. Adequate
planning in the implementation of the security measures should help
PHAs reduce these temporary problems. After the initial stages, these
programs will have a positive impact on the vacancy and turnover rates
of PHAs due to the increased security and stability of their public
housing communities. Because these situations will greatly vary from
PHA to PHA, it would not be proper to make any changes, even temporary
ones, to the grading standards of the vacancy indicator. Instead, PHAs
that believe that the implementation of stricter security measures
related to the ``One Strike and You're Out'' policy negatively impacted
their vacancy rate may submit a modification request along with their
PHMAP certification.
Comment: One comment stated that because of the low weight (x1) of
the turnaround component relative to the vacancy rate component, the
turnaround component is almost unnecessary since it can't change the
grade of the indicator in a significant way.
Response: The Department disagrees with the comment. Although the
component would not have a big impact in determining the final grade of
the indicator, this is in accordance with the position of the
Department regarding the interrelation and relative weight of the two
components. Because the vacancy rate is a clear manifestation of
management effort and reflects the essence of a PHA's mission, it has
been weighted more heavily than the vacant unit turnaround component.
In addition, the new rule uses the second component only when a PHA
scores below a C on the first component. The Department believes that
if vacancies are at a C level or above, the PHA does not have a problem
with turning around vacant units. It should be noted that the component
would have at least a minor impact in the final grade of the indicator
(may increase or decrease one grade level) and may add up to 6.66
points to the total PHMAP score.
Comment: One comment stated that the proposed rule requirement for
vacant units undergoing modernization is inconsistent with scheduling
adjustments that HUD permitted in the past in recognition of the
realities that some PHAs face in soliciting bids from contractors for
modernization funded work. The proposed time requirement would punish a
PHA with few vacancies that may need to ``stockpile'' vacancies to
accumulate sufficient volume of work to obtain competitive bids from
contractors. It is recommended that all vacancies covered by a funded,
on-schedule modernization program be excluded from the vacancy rate
calculation.
Response: The Department disagrees because the small purchase
procedure is a viable option for PHAs with few vacancies to accomplish
modernization costing less than $100,000 (or a lesser amount as
specified by State law). Under this method, PHAs solicit quotes from an
adequate number (normally, no less than three) of sources and can award
the contract to the offeror with the lowest quote. This method is
significantly less time consuming than the normal sealed bid procedure
where formal advertising is involved. It is also noted that contractors
can be procured for utilization on an as-needed basis, allowing them to
begin work immediately.
Comment: One comment stated that the proposed definition of and
calculations concerning a vacant unit undergoing modernization seems to
be counterproductive; a more equitable way of calculating vacant days
would be to count only those vacant days between the completion of the
modernization work and the day of tenant move-in or reoccupancy.
Response: The Department disagrees with the comment regarding the
adjustment for vacant units undergoing modernization. The adjustments
provided in the proposed rule are either activities that the Department
wishes to support, such as modernization, or represent circumstances or
actions that the Department considers to be beyond the PHA's control.
In such cases where these definitions apply to vacant units before the
units are included in a HUD-approved modernization budget, the units
may be exempted for those other reasons. If the units were vacant prior
to being included in the HUD-approved modernization budget for other
than the exempted reasons in the rule, the vacancy days accumulated
prior to the unit being included in the HUD-approved modernization
budget must be included in the vacancy rate calculation as non-exempted
vacancy days.
Comment: One comment stated that not excluding the vacancy days
that accumulated prior to a unit being included in the HUD-approved
modernization budget from the calculation of this indicator could
result in substantial dollars wasted to make vacant units temporarily
habitable until such time that a modernization plan has been approved
by HUD. Dollars invested in temporary major rehabilitation of units
located in buildings subsequently placed under modernization are lost
because major replacements cannot be salvaged during/after
modernization. In order to not provide PHAs with an unintentional PHMAP
performance measure incentive to waste limited HUD dollars, vacancy
days for units in a building included in a modernization budget which
was approved by HUD during the PHMAP assessment year should be exempt
regardless of whether or not some units in the building were vacant
prior to HUD's approval of the plan.
Another comment recommended excluding from the vacancy calculation
units that a PHA has scheduled to modernize but not yet included in the
modernization budget, as well as vacant units that have been modernized
and are scheduled to be reoccupied. These vacant units should be
excluded because the vacancies are part of the normal modernization
process and are not the result of poor performance. For example, this
PHA has completed modernization of hundreds of apartments for people
with mobility impairments, but HUD has not permitted us to rent
accessible apartments to non-disabled families. These vacancy days
should not be included in the vacancy rate calculation.
Response: The Department disagrees with the comments. The issue of
whether to expand the preferential treatment for units undergoing
modernization to include units scheduled for modernization but not yet
under a modernization budget (for example, units scheduled for
modernization in the second year of the CGP Five Year Plan) was
discussed as part of the Vacancy Rule negotiated rulemaking proceedings
but not adopted. The Department was part of
[[Page 68903]]
the consensus that developed the definition of vacant unit undergoing
modernization and believes it to be appropriate. For the same reason,
the Department does not believe that an adjustment should be given for
the time between completion of modernization work and reoccupancy. Once
a unit has been modernized, there is no reason to allow an adjustment
for the time needed to lease the unit. Marketing and leasing of units
is a normal function of a PHA.
The Department also disagrees with the second part of the comment.
HUD does not control whether or not a PHA can admit non-disabled
applicants to a unit designed for the disabled. If a PHA cannot lease
units with accessible facilities to the persons with disabilities, they
are free to lease those units to non-disabled applicants (see Handbook
7465.1 REV-2, paragraph 5-2c). The cited handbook urges that a PHA
facing such a circumstance `` * * * include a provision in the lease
requiring the family to move if someone needing that size specially
designed unit applies and there is an appropriate unit available for
the family originally admitted.''
Comment: One comment indicated that the PHA has a large number of
competing subsidized units, and certain bedroom sizes and certain
handicapped units are very difficult to rent to residents that are
actually eligible for them. Another comment stated that the indicator
does not accurately reflect the capabilities of a PHA to manage its
units; such factors as market conditions greatly impact a PHA's score
in this area. One other comment indicated that the rule does not
provide enough information on what may be acceptable under changing
market conditions and it does not define what constitutes ``aggressive
marketing and outreach measures'' or provide standards by which such
goals should be reached or judged.
Response: The Department feels that the new rule adequately
addresses the issue of marketing difficulties at Sec. 901.5 and
Sec. 901.10(b)(2)(iii). An adjustment may be made to a PHA's vacancy
days because of market conditions. In order to justify the adjustment,
the PHA will need to document the specific market conditions that exist
and document marketing and outreach efforts. The PHA will need to
describe when the downturn in market conditions occurred, the
location(s) of the unit(s) effected, the likelihood that these
circumstances will be mitigated or eliminated in the near term and why
the market conditions are such that they are preventing the PHA from
occupying, selling, demolishing, rehabilitating, reconstructing,
consolidating, or modernizing the vacant units. The Department has
provided examples of what constitutes changing market conditions in 24
CFR Sec. 990.102 and will issue further guidance to PHAs on this
circumstance in the revision of the PHMAP Handbook 7460.5.
Comment: One comment stated that the grading system for this
indicator penalizes PHAs that are actively modernizing their housing
stock. To require lower vacancy rates for PHAs actively improving their
housing stock through modernization than for PHAs not undertaking the
improvements is egregious at best. The scoring of actual and adjusted
vacancies appears to be unnecessary since the adjusted vacancy rate
only occurs for authorized reasons as defined by HUD. To allow for
adjustments to be made and then apply a different scoring criteria is
illogical and inconsistent.
Response: The Department disagrees with the comment. The proposed
methodology provides ample opportunities for a PHA to adjust its
vacancy days for turnover of units due to reasons that are accepted and
supported by the Department such as modernization or are due to
circumstances and actions beyond the control of the PHA, such as court-
ordered or HUD-approved desegregation efforts. A PHA also has the
option of requesting a modification to the calculation of this
component that would take into account some other factor that is
causing frequent turnover of units at the PHA. The Department believes
the proposed method of calculating this component to be the most
accurate measure of a PHA's performance in this area.
Exemptions
Comment: One comment stated that adjusted vacancies help a poorly
performing PHA score better under the proposed rule, but generally will
do nothing to assist high-performing PHAs because it is doing the
things necessary to prevent these types of vacancies. A high-performing
PHA with just normal vacancies is hurt by the proposed rule. Another
comment stated that the proposed scoring range is looser and,
therefore, objectionable and there are more exemptions. Vacancies have
decreased since the advent of PHMAP, just because HUD is grading PHAs
and they are concentrating on keeping vacancies low. HUD should not
reduce its standards simply to satisfy PHAs who aren't getting the job
done. There should be no changes to the current grading standards. HUD
is going in the wrong direction by making PHMAP high-performance status
so easy to attain as it compromises the credibility of the evaluation
process.
Another comment stated that if a PHA chooses an adjusted vacancy
rate, it has the potential to exempt vacancy days in nine different
categories, some of which are very broad. Under this scenario, it is
conceivable that some PHAs will assume responsibility for few vacancy
days. One other comment stated that most exemptions are easy to
determine or validate except for units uninhabitable ``for reasons
beyond the PHA's control.'' Two other comments indicated that ``reasons
beyond the PHA's control'' is vague and may indirectly be within the
control of the PHA. Because such an adjustment should be the exception
rather than the rule, it should be eliminated. Such units fall into a
murky area that some poorly run agencies may be tempted to exploit. It
may be difficult to demonstrate that the conditions leading to
condemnation by the health department were either within or outside of
a PHA's control.
Response: The Department believes that the adjustments are not a
function of whether a PHA is a high or poor performer, but a
recognition that there are some circumstances and actions that impact
on vacancies that are beyond the control of the PHA, such as a natural
disaster, or that should be supported, such as modernization. The
Department understands that there are often good reasons for unit
vacancies, and that a blanket appraisal of unit vacancies as a bad
condition glosses over some very real and explicable conditions that
affect management of low-income properties in the real world.
The Department believes that it has defined the categories of
vacancies completely enough that most of a PHA's vacancies can be
clearly identified, and that a PHA has a fair opportunity to explain
its situation. Where some number of unit vacancies cannot be adequately
explained in terms of the acceptable or allowable categories, the PHA
will be held strictly accountable, but where the unit vacancies are
within the parameters established by HUD, under the negotiated
rulemaking for the PFS vacancy rule, for example, the Department does
not believe it fair or reasonable that the PHA should be penalized. The
Department agrees that the exemption categories, as presented in the
proposed rule, need some clarification and the new rule reflects that.
The category mentioned by some of the comments is duplicated in the
proposed rule and that duplication will be eliminated in the new rule.
The exemptions will remain consistent with the nine exemption
categories used under PFS.
[[Page 68904]]
Comment: Two comments stated that the language for exemption of
units vacant for circumstances and actions beyond the PHA's control
(Sec. 901.10(9)(v)) provides that insufficient funding for otherwise
approvable applications made for CIAP funds (only PHAs with less than
250 units are eligible to apply and compete for CIAP funds) are
exempted from the calculation of this component. It further provides
that this definition will cease to be used if CIAP is replaced by a
formula grant. The comments stated that this subsection should apply to
CGP, particularly now with the budget reductions. Also, one of the
comments stated that vacant units covered in proposed unit demolition
and disposition applications should be excluded, even if the
applications have yet to be acted upon by HUD.
Response: The Department disagrees and has retained this language
in the new rule. The provisions referred to in the comments were taken
directly from the new Vacancy Rule published in the Federal Register on
February 28, 1996 (61 FR 7586). The rule incorporated recommendations
of a regulatory negotiation advisory committee. The committee did
discuss the issue of providing relief to PHAs (and RMCs) because of
insufficient funding for the CIAP and CGP programs. The relief was
limited, however, to insufficient funding for an otherwise approvable
CIAP application (or failure of a PHA to fund an otherwise approvable
RMC request for CGP funds from its PHA). The CIAP is a competitive
program with insufficient funding to cover the needs of all approvable
funding applications. When the funding program is competitive, a PHA
either gets the funding applied for, or it doesn't. However, since the
CGP is a formula grant program, with guaranteed yearly funding, a CGP
PHA is better able to plan modernization activities in advance and make
crucial repairs as necessary.
The Department does not agree with the suggestion that a PHA be
able to assume HUD approval of a pending application for demolition or
disposition, if the application has not been acted upon at the end of
the fiscal year being assessed. There are significant differences
between initiating the application process and receiving approval to
dispose or demolish.
Comment: Six comments indicated that vacancy days for units that
suffer casualty damage, especially by fire, should not be counted until
the unit is turned back over to the PHA after the contractor completes
the repairs, if applicable, instead of at the time of insurance claim
settlement. It is more logical to include casualty-damaged units in the
same exemption status as units undergoing modernization or units
documented to be uninhabitable for reasons beyond the PHA's control.
The exempted vacancy days for units that suffer casualty damage should
change to read, ``vacant units that have sustained casualty damage
until the unit is ready to be leased or 90 days, whichever is
earlier.''
Response: The Department disagrees with the comment. The indicator
retained the current provision that already allows a PHA to make an
adjustment for the period of time during which the claim is being
adjusted. Since the fire damage to the unit may be minimal or severe,
it would not be appropriate for the Department to allow an automatic
additional period of time of up to 90 days to repair the unit. PHAs may
request a modification to the calculation if they believe they have a
situation (severe damage) that warrants a special adjustment.
Comment: One comment recommended substituting the word ``permits''
for ``requires'' in Sec. 901.10(a)(4) which exempts vacant units in
which resident property has been abandoned, but only if State law
requires the property to be left in the unit. The comment added that
when a resident abandons a unit, leaving their personal property
therein, many small PHAs have no other appropriate space to store such
property during the period of time specified by State law before they
can legally dispose of the abandoned property.
Response: The Department does not concur in the recommendation. The
point of this provision is to limit the period of time when a vacant
unit would be exempted from the vacancy count to the period of time
that is beyond the PHA's control. The proposed change would expand the
provision to cases in which State law ``permits'' a unit to remain
encumbered by abandoned possessions. HUD believes that the existing
language--``requires''--is more specific and more limiting, and is more
consistent with the intent of this regulation and similar recent
regulatory efforts to reduce unit vacancies.
The Department recognizes that some small PHAs might be
inconvenienced by having to store abandoned effects for some period of
time before disposition, but we are not convinced that such
inconvenience is sufficient to justify holding a residential unit off-
line. In most cases, laws on abandonment require that the landlord
secure abandoned property, not necessarily that they leave such
property in place in anticipation of the abandoning family's possible
return. If storage space is at a premium, PHAs have the option of
renting a storage locker and either deducting the cost of the rental
from the proceeds of the sale of the goods, if any, or collecting that
cost from the resident, should he/she re-appear.
Comment: One comment stated that the total available units should
not include units that are being modernized as a result of Federally
mandated work projects (such as a lead-based paint abatement project)
that require that the residents be relocated while the work is being
performed. All vacant units as a result of Federally mandated work that
requires resident relocation should be considered not available for the
period of time that the unit is vacant as a result of the required
work, including the use of the unit to relocate residents during the
course of the work. Another comment stated that the exemptions should
include a category for units held to house residents relocated due to
comprehensive modernization. When a large development undergoes
comprehensive modernization, it is difficult to quickly find units to
transfer all residents; a reasonable time limit should be included in
the exemption.
Response: The Department partially agrees with the comment. The
proposed methodology for calculating the vacancy rate component already
permits a PHA to make an adjustment to its vacancy days for units
undergoing modernization. A PHA also has the option of requesting a
modification to the calculation of this component that would take into
account any other special factors or special circumstances that are out
of the control of the PHA. The Department does not agree with the
suggestion that PHAs be allowed to adjust their vacancy days for units
that are not undergoing modernization but are being held vacant for
relocation purposes.
Comment: One comment stated that the exemption of units that are
uninhabitable is valuable because it allows troubled PHAs to work on
renovating units and getting them back into the occupied inventory
without being penalized in the vacancy rate calculations.
Response: The Department agrees that this exemption category is
valuable, but it should be noted that the category restricts the
exempted units to those uninhabitable for reasons beyond the PHA's
control. The rule further defines these reasons.
Comment: One comment suggested that the rule should be expanded to
[[Page 68905]]
specifically exempt vacant days due to transfer of residents resulting
from overhoused/underhoused conditions and when for security reasons, a
resident must be relocated under a witness protection program.
Response: The Department does not agree with the comment that the
new rule include adjustments for vacancy days associated with
relocation of residents because of over/underhoused circumstances. This
is a situation that should be dealt with by the PHA as part of its
normal operations. Adequate planning on the part of the PHA can greatly
reduce the amount of time that the units involved in the transfer
remain vacant. Vacancies arising as a result of relocation of residents
for security reasons may be dealt with under the modification
procedures.
Comment: One comment indicated that the rule should clarify whether
the PHA can exclude units used for non-dwelling purposes, for resident
services, or that are occupied by PHA employees even if HUD has not
specifically approved their conversion for non-dwelling purposes.
Response: The Department believes that the relevant rules are
sufficiently clear. PHAs may not use dwelling units for non-dwelling
purposes without explicit authorization for the conversion, and there
should be no expectation that HUD would permit exemption of vacant
units used for unauthorized purposes.
Comment: One comment indicated that it appears that
Sec. 901.10(a)(3) requires that to be exempted under this item, units
have to comply with the two conditions at the same time. The comment
added that the exemption should apply if either one of the conditions:
high/unsafe levels of toxic materials or structurally unsound, is
present.
Response: The Department agrees with the comment that the exemption
should apply when either one of the conditions is satisfied. The new
rule has been modified to conform with the Vacancy Rule and the subject
items are now covered under Secs. 901.10(b)(2)(ii) and (b)(2)(iv).
Comment: Two comments observed that there are several categories of
units exempted ``off-the-top'' when calculating adjusted vacancy rate
and turnaround time. The comments indicated that HUD should clarify if
the exemption of units vacant for circumstances beyond the PHA's
control due to changing market conditions is determined by the PHA
(self-certified) or reviewed and decided by HUD as a modification. The
comments also requested HUD to clarify the exemption of units vacant
for circumstances beyond the PHA control due to natural disasters as to
who determines or declares the natural disaster condition.
The comments suggested that, because these are excluded ``off-the-
top'' and using a PHA-certified figure, it is left entirely to the PHA
to decide if these circumstances apply, when they apply, and then to
subtract them out of the calculation. As currently structured, a PHA
could unilaterally adjust the figures they report under ``adjusted
vacancy rate'' and ``turnaround time'' because they believe that
``changing market conditions'' have caused their units to remain
vacant, or because ``insufficient CIAP funding'' prevented the PHA from
occupying the units. All market conditions are ``changing'' to some
extent, and no CIAP-funded PHA ever receives ``sufficient funding for
otherwise approvable applications'' to meet all of their needs. The
real question is, when are these circumstances sufficiently unique and
extensive to impact a PHA's ability to occupy its units?
The comments indicated that these two conditions are so subjective
and judgmental that they should be addressed through the regular PHMAP
modification process. The comments added that it is inappropriate for
an allegedly objective assessment process such as PHMAP to allow the
entity being assessed (i.e., the PHA) to exercise this degree of
unilateral control over their own assessment. This may help to improve
PHA grades, but it does nothing for the integrity of the PHMAP
assessment process. One comment requested that exemptions be clearly
defined, leaving as little subjective determination as possible to HUD
field staff. Another comment requested HUD to clarify if the PHA may
exempt the units listed when preparing the PHMAP certification or if it
should request a modification.
Response: The Department disagrees with the proposition that the
PHAs have free rein to define away unit vacancies as a function of
natural calamities and/or market circumstances beyond control. These
issues were a major source of discussion during the negotiation of the
PFS Vacancy Rule, and the language upon which the negotiated rulemaking
committee reached agreement is faithfully reproduced in this
regulation. For example, the committee deemed the term ``natural
disaster'' sufficiently precise for purposes of establishing a formula
for determining PFS eligibility.
In the case of a claim for exemption under any of these ``beyond-
the-control'' criteria, the PHAs can exclude the units when preparing
the PHMAP certification, but HUD intends that the burden of proof
should fall on the PHA to demonstrate that it has done what it can to
remedy the reason(s) for the vacancy. In the case of a ``natural
disaster'' claim, the PHA would be expected to point to a proclamation
by the President or the Governor that the county or other local area in
question has, in fact, been declared a disaster area. Where a PHA
claims extraordinary market conditions, the PHA will be expected to
document the market conditions to which it refers (the examples of
changing population base and competing projects are the simplest) and
the explicit efforts that the PHA has made to address those conditions.
The Department does not believe that it can draft a regulation that
concretely defines and delimits all the circumstances that could affect
a PHA's capacity to maintain high occupancy levels, nor does HUD deem
it advisable to attempt to do so. The PHAs and their parent State and
local governments are in the best position to recognize and appreciate
specific local circumstances. In this regulation, and in the supporting
handbook guidance, we will expect that PHAs will be able to provide
data with which to support their self-certifications, and upon which
HUD reviewers can verify such self-certifications, but HUD believes
that it would be counter-productive to attempt to define further or to
limit the scope of PHAs' capacity to describe their real-world
situations.
Comment: One comment proposes that an adjustment factor be added
for turnovers delayed because the applicant must give 30 to 60 days
notice (by lease) to their current landlord before moving.
Response: The Department does not agree with the proposed addition.
PHAs should know local conventions on requirements for notice, and plan
their own management activities accordingly, projecting expected
turnovers and providing notice to applicants that a unit is expected to
become available, for example, far enough in advance to avoid delays in
leasing. In those cases where special local circumstances make this
unfeasible, the PHA may submit a modification request to the indicator.
Comment: One comment requested guidance on HUD's interpretation of
units that are vacant ``for reasons beyond the PHA's control'' asking
whether this category includes items such as termite damage, vandalism,
or casualty loss that may not be covered by insurance if there is a
high deductible. Two other comments asked if the exemption would
include units delayed for reoccupancy as a result of heavy
[[Page 68906]]
vandalism since such vandalism is often beyond the PHA's control.
Response: The Department does not consider that the examples cited
in the comment fall under the definition of units vacant for reasons
beyond the PHA's control. Termite control is similar to other examples
of pest control and is considered part of the normal maintenance
operations of any standard performance PHA. A well managed PHA should
also have insurance coverage for casualty loss (including vandalism)
providing enough coverage to enable the PHA to repair the units in case
of casualty damage. In cases where special local circumstances may make
this unfeasible, the PHA should submit a modification request to the
indicator.
Definitions
Comment: One comment stated that the definition of ``under
construction'' as related to force account work should be changed to
indicate that force account work has started in the block (as opposed
to the specific unit).
Response: The new rule has been changed to indicate that force
account work has started either in the unit(s) or in the building(s).
Comment: One comment stated that the term ``units available for
occupancy'' needs to be clearly defined. Some troubled PHAs could argue
that a certain number of their units are not available for occupancy
because of the extremely poor condition of the units.
Another comment indicated that the term ``dwelling unit'' is not
defined in the proposed rule. It should be defined as a unit that is
either leased or available for lease to eligible low-income residents.
Another comment stated that the term ``available unit'' is defined in
the preamble and the rule but never used again. Instead, the term
``unit'' is used in connection to the terms ``vacant unit'' and
``vacancy day''. The term ``unit days available'' is used but no clear
connection is ever drawn between it and ``available units''. HUD should
clarify and substitute where necessary.
One comment stated that the term ``vacant unit'' in the rule is
different from the term as used in the preamble. The preamble indicates
that ``units under lease for non-dwelling uses should not be
included...'' In other words, these units should be excluded. The rule
definition states that units under lease for police substations, social
service providers, etc., are treated the same as units under lease to
eligible families. If an occupant vacates the unit, it is made
available to another social service provider. These units are not
available for lease to eligible low-income residents, and as such,
should not be treated the same as units which are available in this
definition. It should be clarified whether these units will be excluded
from the computation of vacant units or if they will be counted as
occupied units. Another comment stated that units used for non-dwelling
purposes and dwelling units occupied by PHA employees and units used
for resident services need to have additional parameters defined. This
adjustment may encourage some poorly run PHAs to use these loopholes to
get a better adjusted vacancy rate.
Response: The Department agrees that dwelling units used for non-
dwelling purposes with HUD approval, employee occupied units, and
vacant units approved for demolition or disposition should not be
included as available units in the determination of occupancy/vacancy
rates and the new rule reflects that change. We also agree with the
definition of a ``dwelling unit'' as a unit that is either leased or
available for lease to eligible low-income residents.
Comment: Two comments indicated that while the use of the total
unit days available as the denominator in both the actual and adjusted
vacancy rates provides a simple procedure, it tends to understate the
adjusted vacancy rate. A more accurate calculation would exclude the
adjusted vacant units from both the numerator and denominator.
Response: The calculation of the vacancy rate and the use of that
rate to determine a given grade for PHMAP purposes has been and
continues to be closely linked to the methodology and definitions used
in the PFS. Under the PFS, a PHA, when calculating occupancy or vacancy
rates, first determines the total number of dwelling units in its
inventory (the denominator portion of the rate being calculated).
Regulations then permit the PHA to exclude units that have been
approved for deprogramming (e.g., demolition or disposition) as they
become vacant and units approved for non-dwelling use. These exclusions
reflect the permanent nature of the action. Units that are undergoing
modernization or are vacant because of circumstances beyond the PHA's
control are not excluded from the denominator because these actions are
not permanent. By remaining in the denominator, they will continue to
be eligible for operating subsidy.
The inclusion of units undergoing modernization or units vacant
because of circumstances beyond the PHA's control in the denominator
does not make the calculation of the PHMAP adjusted vacancy rate either
``more'' accurate or ``less'' accurate. What is necessary is that the
two quantities that comprise the rate have a logical relationship to
each other. In this case, the relationship is between a PHA's dwelling
unit inventory and that portion of the inventory that is vacant during
the PHA's fiscal year. Under both PHMAP and PFS, there are incentives
to minimize the portion of the inventory that is vacant and both
approaches start by looking at the proportion of total vacancies to the
dwelling unit inventory. If that rate is low enough, the PHA will
maximize its PHMAP grade and its operating subsidy eligibility.
Both PHMAP and PFS also recognize that not all vacancies are
``equal.'' A PHA with a high number of vacant units may still maximize
its PHMAP grade and PFS eligibility if it can show that most of the
vacant units are undergoing modernization. When one makes an adjustment
to the total number of vacancies to exclude those that are undergoing
modernization, the PHA is not changing the fact that the unit is still
part of the PHA's dwelling unit inventory. This is why the adjustment
is only to the numerator portion of the rate and not to the
denominator.
Comment: One comment indicated that the term ``vacancy day''
definition uses the qualifying statement ``...unless the vacancy day is
exempted for an eligible reason.'' A ``vacancy day'' does not lose its
status as a ``vacancy day'' because it is exempted. It simply becomes a
``vacancy day that is exempted''. This should be clarified because
other terms (like ``actual vacancy rate'' and ``adjusted vacancy
rate'') make reference to it in their definitions. Another comment
proposed that the definition for vacancy day should be modified to
specify that it pertains to ``dwelling'' units.
Response: The Department agrees with the comments and the new rule
reflects the changes.
Comment: One comment indicated that the term ``units available for
occupancy'' is defined as the number of units identified on a PHA's ACC
times the number of days available and asked then what number should be
used for units acquired or built during the assessment year? Two
comments asked whether occupied units that have not reached Date of
Full Availability (DOFA) are counted or excluded until they reach DOFA
date.
Response: The definition of number of ``units available for
occupancy'' has been clarified to exclude three categories of units
from the number of units identified in the PHA's ACC. The units
acquired or built during an assessment year will be added on a prorated
basis based on the sum of the
[[Page 68907]]
number of days available of each individual unit added to the ACC. The
date to be used for determining days available is the date of ``End of
Initial Operating Period'' (EIOP) for the corresponding project.
COMMENT: One comment stated that the formula used for the calculation
of the actual vacancy rate is inconsistent with that used for the
completion of PHA financial information and creates the potential for
errors when preparing both the PHMAP certification and the annual
budget documents. The actual vacancy rate should be consistent
throughout all HUD requirements (i.e., form HUD-51234 and budget
forms).
Response: The Department agrees that the definitions and
methodologies for both PFS and PHMAP should be the same as long as
feasible, and the language of the new rule reflects that.
Comment: One comment recommended adding to the list of definitions
the terms ``move-out date,'' which is when the PHA regains possession
of the unit by the legal expiration of the lease; and ``effective lease
date,'' which is the date from which rent is due and payable and all
other provisions of the lease are enforceable.
Response: The Department partially agrees with the comment and the
new rule includes the definitions. The ``effective lease date'' is the
date when the executed lease contract becomes effective and rent is due
and payable and all other provisions of the lease are enforceable. On
the other hand, the ``move-out date'' is the actual date when the
resident vacates the unit, which may or may not coincide with the legal
expiration of the lease agreement.
Component #2, Unit Turnaround
Comment: Two comments stated that if the turnaround calculation is
retained, it should be kept as a separate indicator. Two comments
suggested the elimination of this component, because unit turnaround
measures efficiency of scheduling maintenance activities, which should
be covered by indicators #4 and #5.
Response: The Department disagrees with both of these suggestions.
The requirement to measure a PHA's ability to turn around its vacant
units is statutory, whether the statutory requirement is carried out by
establishing a separate indicator for unit turnaround or by including
unit turnaround as a component of a different indicator. The Department
agrees with the assumption that if vacancies are at a grade C or above,
a PHA does not have a problem with turning around vacant units. The
Department also disagrees that unit turnaround solely measures a PHA's
efficiency of scheduling maintenance activities. The calculation of
unit turnaround also includes down time, which is the time between when
the unit is vacated and a work order is issued for the repair of the
unit; and lease-up time, which is the time from when maintenance
completes the repair of the unit and a new lease takes effect.
Comment: Three comments stated that this component does not
accurately measure a PHA's performance in maintaining and leasing their
units because nothing in the component shows how many units the PHA had
to turn around during the year. These commenters believed the
percentage of units that are turned around during the year should be
included in the formula. For example, if a PHA has a turnaround time of
20 days, and turned over 45% of their units, and you multiply the
turnaround time (20 days) times the percentage of turnover (45%), it
equals 20 times 45%, or nine days. You then subtract nine days from the
20 days to equal a turnaround of 11 days. The commenters felt that this
is a more accurate measure of a PHA's ability to manage and turnaround
per unit. A PHA with a high yearly turnaround is unduly taxed under the
current formula.
Response: The Department disagrees with this suggestion because
this component is measuring the annual average of time it takes a PHA
to turn around its vacant units, rather than measuring the turnover
rate, which takes into account how many units the PHA had to turn
around during the year.
Comment: Three comments stated that the calculation of unit
turnaround includes vacancy days from prior fiscal years, offering
little incentive (scoring) under the proposed rule for re-occupying
older units. It is recommended that unit turnaround time be capped at
one year or 360 days.
Response: The Department disagrees because to do so would result in
an inaccurate assessment of a PHA's ability to turnaround all vacant
units and would provide no incentive for PHAs to ensure that long-tern
vacant units are turned around and reoccupied. In addition, if these
units are not included in the calculation of this component, it would
result in a skewed perception of a PHA's ability to manage its total
maintenance/re-leasing activities. Furthermore, ``turnaround time'' is
a term of art and means all the days that elapse between one tenancy
and the next. In the event that unusual or special circumstances
exists, a PHA may request a modification to the calculation of this
component.
Comment: Two comments feel that this component should be given the
same exemptions as in component #1.
Response: The Department agrees and stated so in both the preamble
and the regulation of the proposed rule, as well as in the new rule.
Comment: Two comments stated that unit turnaround time should
exempt seven days for each PHA-required transfer because one resident
has two units tied-up for a week and sometimes longer.
Response: The Department disagrees with this suggestion. Although
the total time it took the two units mentioned in the comment to be
turned around may have been a week or longer, each unit was turned
around on different days, with different individual total turnaround
time. The intent of this component is to measure the annual average
number of days it takes a PHA to turn around its vacant units, which
includes for each vacant unit a total of down time, make ready time,
and lease up time.
Comment: Two Comments questioned the definition which states that
units are exempted from the vacancy calculation if special conditions
exist that are beyond control of the PHA. They inquired whether this
definition includes units delayed for reoccupancy as a result of heavy
vandalism. They contend that it should because such vandalism is often
beyond the PHA's control.
Response: The Department has determined not to specifically include
heavy vandalism as part of conditions beyond a PHA's control in this
definition since circumstances for individual PHAs will differ. In such
a case, a PHA may submit a modification request to exclude such units
in the calculation of this component, accompanied by justifying
documentation.
Comment: One Comment stated that unit turnaround is assessed based
on calendar days rather than working days (25% of the time in 20
calendar days is non-working time). The Commenter contended that it
should be based on regular working days since most PHAs cannot afford
to pay overtime salary rates.
Response: The Department disagrees and will continue to use
calendar days as the standard for all of the PHMAP indicators.
Vacancies, rent collection, etc., are not based on working days, and it
would be unrealistic to do so. In addition, it is easier to calculate
calendar days, especially when using an automated system, due to the
necessity of factoring in holidays and weekends when using working
days.
[[Page 68908]]
Comment: One Comment stated that unit turnaround operates against
thorough tenant screening and compliance with city code requirements
and, therefore, against the reputation of public housing. These other
factors that affect unit turnaround should be considered, including
strict lease compliance, terminating residencies or relocating over or
underhoused families. The Commenter said that conscientious
implementation of HUD policy can create large turnovers, stress
maintenance resources and result in poor ratings, while a PHA with no
turnovers or even lack of attention to over and under-housing can
maintain an excellent rating.
Response: The Department disagrees with this statement because the
enforcement of and/or compliance with these factors is part of the
ongoing management responsibility of all PHAs. Using good management
practices, a PHA should not have a higher turnaround time due to
enforcement and/or compliance with the other factors mentioned in the
Comment. For example, a PHA that strictly enforces rent collection
procedures will typically have fewer evictions since more residents
will pay rent in a timely manner. This normally will eliminate the need
for evictions or situations where huge balances are built up and the
resident vacates as a result of not being able to pay off the
indebtedness once court action is taken. If a PHA enforces the lease
clauses regarding the upkeep of the unit by occupants through informing
the resident of the family's responsibility, providing instruction as
necessary, and through inspections, repair, and properly instituted
resident charges, units will tend to be in better condition when
vacated, thereby reducing needed repairs and subsequently reducing
vacant unit turnaround time. Additionally, a lack of attention to over
and underhoused residents will affect a PHA's turnover rate, rather
than its turnaround time.
Comment: One Comment requested that the Department consider the
implementation of an exception to the component whereby, if all but one
unit turns over in a timely manner, a PHA can request an exception for
a circumstance that was beyond its control. Even one exception can have
a big impact in a small PHA.
Response: The Department agrees, and in the event a truly unusual
or special circumstance exists, a PHA may submit a modification request
that addresses the circumstance(s) beyond its control.
Comment: One Comment stated that assessing this component based on
how the PHA fared in the first component is appropriate and the grading
is equitable.
Response: The Department agrees, and will continue to examine unit
turnaround as the second component under this indicator.
Comment: One Comment stated that if the current turnaround method
stays, it should be a measure of when the unit is ready physically for
rental and the new tenant has committed to the unit, not necessarily
when physical occupancy occurs.
Response: The Department disagrees with the Comment for several
reasons. First, there is no guarantee that maintenance staff will start
renovations as soon as possible after the unit is vacated. Secondly,
there is no guarantee that the first applicant that is offered the unit
will accept, thereby leaving the unit vacant for a longer period of
time. Thirdly, the Department believes that the definition of
turnaround time takes into account the concerns expressed in the
Department's first two reasons for disagreeing. A well managed PHA
coordinates maintenance and resident selection activities to ensure
that as many units as possible are available for occupancy as soon as
possible by planning move-ins in advance and notifying applicants as
soon as possible. Since the PHMAP assesses management performance, it
is appropriate to include the management of the total maintenance/re-
leasing activities in this component.
Comment: One Comment (1) disagrees that unit turnaround is an
unnecessary component for high performers; (2) feels that this
component should be weighted as proposed; (3) believes that an adjusted
turnaround time exceeding 30 days is unacceptable performance for any
management agency regardless of the vacancy rate; and (4) believes that
the need for a turnaround time of 50 days or less to score on this
component is a poor standard and would not show the results of what may
be clear and significant performance improvements.
Response: The Department disagrees with the first statement because
normally, a PHA (whether a standard or high performer) that achieves at
least a grade of C for component #1 does not have a problem with
turning around vacant units, i.e., unit turnaround is not a factor in a
high vacancy rate. The Department agrees with the second statement
because the vacancy rate is a clear manifestation of management effort
and embodies the essence of a PHA's mission; therefore, it is weighted
more heavily than the process-oriented unit turnaround component. It is
not clear what the Comment meant in the third statement by ``adjusted
turnaround time.'' This term was not referred to in the proposed rule,
was not included as a definition, nor was it used in the text of the
component. The Department also disagrees with the fourth statement and
believes that the range between the grades in this component is
equitable for the new rule.
Comment: One Comment stated that the proposed rule provides that
the calculation of turnaround time for newly modernized units starts
when the unit is turned over to the PHA from the contractor and ends
when the lease is effective for the new or returning resident. This
provision eliminates a level playing field for measuring the normal
turnaround time required by a PHA to restore vacant units to occupancy.
The Commenter alleges that this gives unfair advantage to PHAs that did
not need to vacate units for modernization and it doubly penalizes PHAs
that modernize units for completing modernization on large numbers of
units concurrently. The Commenter felt that this component should
measure the time it takes PHAs to restore units to occupancy when they
vacate for normal move-out reasons.
Response: The Department disagrees with this Comment and believes
that this method of calculating unit turnaround does provides a level
playing field for PHAs because it provides a standard method that will
be used by all PHAs. The Department does not believe that this method
of calculating unit turnaround gives an unfair advantage to any PHA,
regardless of the scope or type of modernization. A unit that is
modernized with the resident in place is not included in the
calculation of this indicator because it has not been vacated and
subsequently turned around; therefore, there is no advantage to be
considered. If a PHA vacates a unit to modernize, the time it took to
modernize the unit is not included in unit turnaround time regardless
of the number of units completing modernization concurrently. A PHA
should be able to plan for move-ins in advance and notify applicants in
sufficient time to coincide with the availability of units. This
component will continue to measure unit turnaround for whatever reason
the unit is vacated and turned around.
Comment: One Comment recommended that average turnaround time be
defined as, ``the annual average of the total number of turnaround days
between the legal expiration date of the immediate past lease (whenever
that occurred, including in some previous fiscal year) and the date a
new lease takes effect, that being the date from which rent is due and
payable and all
[[Page 68909]]
other provisions of the lease are enforceable.'' This allows PHAs to
take into consideration the wide variety of local ordinances and State
statues that effect the termination of a lease and date the PHA thereby
regains possession of the unit.
Response: The Department agrees, in part, with this recommendation,
and will change the definition of average turnaround time to read,
``...the annual average of the total number of turnaround days between
the latter of the legal expiration date of the immediate past lease or
the actual move-out date of the former tenant (whenever that occurred,
including in some previous fiscal year) and the date a new lease takes
effect.'' This change will take into consideration the wide variety of
State and local laws that effect the termination of a lease. By
retaining the actual move-out date of the former tenant in the
definition, a PHA is not penalized for doing evictions, since in such
cases, the resident usually vacates after the legal expiration date of
the lease. It should be noted that in the rare case where an applicant
executes a lease and moves into the unit prior to the completion of
minor repairs, the calculation of turnaround time continues until the
repairs to the unit have been completed by the PHA.
Indicator #2, Modernization--Sec. 901.15
The weight for this indicator has been increased to x1.5 in the new
rule to reflect the importance of planning for and allocating scarce
modernization funding.
Comment: Ten Comments supported the greater emphasis being given to
obligation of funds in relation to expenditure of funds for components
#1 and #2.
Response: The Department concurs that by assigning more weight to
fund obligation, and less to fund expenditure, the rule largely removes
the disincentive for PHAs to accept inferior work products from
contractors.
Comment: Two comments recommended that there should be intermediate
grades for components #1 and #2 that allow for varying times beyond the
required deadlines (e.g., within one year after deadline = C, two years
= D, etc.). Interim grades should be adopted to recognize that
capacities vary between PHAs and the size of their modernization
programs. One method would be: A for 100%, B for 90-99.9%, C for 80-
89.9%, D for 70-79.9%, and F for below 70%. If the Department remains
adamant that these are too many grades, then at least a grade of C
should be available for > 80% but < 100%.="" another="" comment="" suggested="" that="" components="" #1="" and="" #2="" should="" have="" more="" grades="" (a-f)="" to="" allow="" small="" amounts="" of="" funds="" to="" be="" expended/obligated="" without="" scoring="" an="" f.="" for="" example,="" 99%="" of="" funds="" obligated/expended="" would="" receive="" a="" score="" of="" b,="" and="" 95%="" of="" funds="" obligated/expended="" would="" receive="" a="" score="" of="" c.="" another="" comment="" recommended="" that="" all="" components="" should="" have="" grades="" a-f;="" larger="" phas="" may="" have="" multiple="" modernization="" projects="" being="" run="" simultaneously.="" a="" problem="" with="" just="" one="" such="" project="" should="" not="" be="" the="" cause="" of="" a="" failing="" grade.="" in="" addition,="" another="" comment="" recommended="" that="" an="" intermediate="" grade="" of="" c="" should="" be="" created="" for="" components="" #1="" and="" #2="" for="" phas="" that,="" for="" example,="" are="" one="" year="" behind="" the="" expenditure="" or="" obligation="" time.="" some="" phas="" may="" need="" to="" accumulate="" funds="" over="" several="" years="" in="" order="" to="" fully="" carry="" out="" their="" strategic="" plans.="" another="" comment="" recommended="" that="" large="" phas="" that="" administer="" complex,="" multi-year="" programs="" that="" exceed="" $100="" million="" in="" a="" single="" year,="" be="" given="" more="" flexible="" standards="" than="" are="" proposed="" for="" components="" #1="" and="" #2.="" the="" proposed="" rule="" refers="" to="" the="" hud-approved="" original="" implementation="" schedule,="" and="" the="" previous="" interim="" rule="" refers="" to="" the="" hud-approved="" revised="" schedule.="" hud="" should="" allow="" a="" grade="" of="" a="" for="" these="" two="" components="" where="" the="" hud-approved="" original="" or="" revised="" implementation="" schedule="" allows="" longer="" than="" three="" years="" to="" expend="" all="" funds,="" and="" the="" pha="" is="" either="" in="" compliance="" with="" that="" schedule="" or="" has="" timely="" self-="" executed="" an="" extension="" of="" the="" hud-approved="" deadline="" for="" valid="" reasons="" beyond="" its="" control.="" response:="" the="" department="" does="" not="" agree="" with="" these="" comments="" since="" components="" #1="" and="" #2="" adequately="" take="" into="" account="" situations="" where="" longer="" times="" are="" appropriate="" in="" the="" original="" implementation="" schedule="" or="" are="" necessary="" in="" the="" revised="" implementation="" schedule="" due="" to="" reasons="" outside="" of="" the="" pha's="" control.="" the="" department="" believes="" that="" it="" is="" appropriate="" to="" distinguish="" between="" time="" extensions="" due="" to="" reasons="" outside="" of="" the="" pha's="" control="" (which="" have="" no="" adverse="" impact="" on="" the="" pha's="" score="" on="" components="" #1="" and="" #2)="" and="" time="" extensions="" due="" to="" reasons="" within="" the="" pha's="" control="" (which="" avoid="" fund="" recapture,="" but="" have="" an="" adverse="" impact="" on="" the="" pha's="" score="" on="" components="" #1="" and="" #2).="" the="" department="" notes="" that="" the="" need="" to="" use="" leftover="" funds="" is="" a="" reason="" for="" a="" time="" extension="" outside="" of="" the="" pha's="" control.="" in="" addition,="" the="" department="" notes="" that="" while="" larger="" phas="" have="" more="" funds="" to="" obligate="" and="" expend,="" such="" phas="" also="" have="" greater="" resources="" and="" capacity="" to="" implement="" their="" programs;="" therefore,="" size="" of="" program="" is="" not="" appropriate="" in="" measuring="" fund="" obligation="" and="" expenditure="" performance.="" comment:="" six="" comments="" expressed="" concern="" about="" how="" hud="" will="" define="" ``significant="" findings''="" for="" components="" #3="" and="" #4="" in="" the="" new="" rule.="" this="" is="" a="" very="" critical="" issue="" since="" hud="" staff="" judgments="" vary="" widely="" from="" city="" to="" city.="" significant="" findings="" should="" be="" really="" significant.="" phas="" should="" have="" the="" opportunity="" to="" see="" and="" comment="" on="" the="" definition.="" response:="" the="" department="" has="" revised="" components="" #3="" and="" #4="" to="" include="" a="" definition="" of="" ``findings.''="" the="" department="" has="" eliminated="" the="" term="" ``significant''="" since,="" by="" definition,="" all="" findings="" made="" in="" connection="" with="" hud="" monitoring="" or="" an="" audit="" are="" significant.="" items="" that="" are="" not="" significant="" are="" considered="" to="" be="" observations="" and="" are="" not="" designated="" as="" findings.="" comment:="" two="" comments="" disagreed="" that="" obligation="" of="" funds="" should="" be="" weighted="" higher="" than="" expenditure="" of="" funds.="" often="" it="" is="" easier="" to="" enter="" into="" a="" contract="" than="" it="" is="" to="" complete="" one.="" emphasis="" should="" be="" on="" a="" pha's="" planning="" efforts="" and="" its="" record="" of="" delivering="" promised="" work.="" response:="" the="" department="" does="" not="" agree="" with="" this="" comment.="" the="" department="" believes="" that="" the="" more="" time-consuming="" part="" of="" implementation="" involves="" the="" design="" work,="" the="" bid="" process,="" and="" the="" award="" of="" contract.="" in="" the="" overwhelming="" majority="" of="" cases,="" fund="" expenditure="" occurs="" routinely="" after="" fund="" obligation,="" in="" accordance="" with="" the="" schedule="" for="" periodic="" payments.="" comment:="" two="" comments="" were="" unclear="" about="" the="" reporting="" requirements="" for="" a="" self-executed="" time="" extension="" for="" obligation="" of="" funds="" and="" suggested="" that="" the="" department="" provide="" a="" short="" list="" of="" examples="" of="" the="" types="" of="" circumstances="" ``out="" of="" the="" control="" of="" the="" pha''="" which="" would="" warrant="" a="" self-executing="" extension.="" response:="" the="" department="" has="" revised="" components="" #1="" and="" #2="" to="" provide="" additional="" examples="" which="" are:="" unforeseen="" delays="" in="" contracting="" or="" contract="" administration;="" and="" need="" to="" use="" left-over="" funds="" from="" a="" completed="" modernization="" program="" for="" additional="" work.="" additional="" examples="" will="" be="" provided="" in="" the="" revised="" phmap="" handbook="" 7460.5.="" comment:="" one="" comment="" stated="" that="" it="" was="" not="" clear="" what="" data="" were="" being="" used="" to="" score="" components="" #1,="" #2="" and="" #5,="" and="" suggested="" that="" hud="" needs="" to="" develop="" a="" procedure="" reflecting="" pha="" performance="" in="" the="" same="" fiscal="" year="" as="" other="" phmap="" grades.="" [[page="" 68910]]="" response:="" the="" department="" scores="" components="" #1="" and="" #2="" on="" the="" basis="" of="" federal="" fiscal="" year="" (ffy),="" not="" pha="" fiscal="" year,="" in="" order="" to="" provide="" a="" uniform="" measurement="" for="" all="" phas,="" without="" regard="" to="" the="" relationship="" between="" the="" construction="" season="" and="" pha="" fiscal="" year.="" the="" department="" scores="" components="" #3,="" #4,="" and="" #5="" based="" on="" the="" status="" of="" the="" pha's="" modernization="" program(s)="" as="" of="" the="" pha's="" fiscal="" year="" end.="" the="" department="" intends="" to="" continue="" these="" bases="" for="" scoring.="" comment:="" one="" comment="" noted="" that="" the="" components="" are="" well="" described="" and="" the="" grading="" is="" equitable.="" response:="" the="" comment="" is="" noted="" by="" the="" department.="" comment:="" one="" comment="" recommended="" that="" only="" fund="" obligation="" should="" be="" measured="" since="" in="" fact="" this="" is="" the="" only="" activity="" really="" under="" a="" pha's="" control,="" with="" expenditures="" affected="" by="" contractor="" progress,="" litigation,="" and="" other="" outside="" factors.="" response:="" fund="" expenditure="" is="" a="" performance="" measure="" mandated="" by="" the="" 1992="" appropriations="" act="" and,="" therefore,="" must="" be="" included.="" comment:="" one="" comment="" recommended="" that="" the="" modernization="" indicator="" be="" changed="" for="" the="" assessment="" of="" the="" cgp.="" requirements="" for="" measurements="" should="" be="" in="" large="" percentages="" rather="" than="" items="" of="" work="" (i.e.,="" 33%="" of="" all="" funds="" three="" years="" old="" or="" less="" should="" be="" obligated).="" further="" detail="" should="" not="" be="" required.="" hud="" should="" model="" these="" reporting="" requirements="" on="" those="" of="" the="" cdbg="" program.="" there="" should="" be="" flexibility="" for="" expenditure="" rate="" requirements="" based="" on="" circumstances="" beyond="" pha="" control,="" such="" as="" contractor="" default,="" the="" discovery="" of="" hidden="" conditions,="" etc.="" response:="" the="" department="" believes="" that="" the="" component="" on="" fund="" obligation="" appropriately="" assesses="" performance="" under="" the="" cgp.="" the="" cgp="" provides="" annual="" formula="" funding="" for="" modernization.="" accordingly,="" such="" stable="" and="" predictable="" funding="" should="" enable="" cgp="" phas="" to="" plan="" and="" implement="" their="" modernization="" programs="" in="" an="" expeditious="" manner.="" the="" department="" strongly="" believes="" that="" two="" years="" is="" adequate="" time="" for="" most="" phas="" to="" obligate="" all="" funds,="" but="" provides="" for="" a="" longer="" time="" period="" where="" appropriate.="" comment:="" one="" comment="" recommended="" that="" fund="" obligation="" be="" extended="" to="" three="" years="" rather="" than="" the="" two="" proposed.="" response:="" the="" department="" believes="" that="" two="" years="" is="" a="" more="" appropriate="" measure="" of="" performance.="" however,="" the="" department="" notes="" that="" the="" pha="" may="" propose,="" and="" hud="" may="" approve,="" implementation="" schedules="" with="" fund="" obligation="" deadlines="" of="" longer="" than="" two="" years="" due="" to="" local="" differences="" in="" work="" scope="" and="" complexity,="" construction="" seasons,="" material="" or="" equipment="" supply,="" or="" state/local="" contracting="" requirements.="" comment:="" one="" comment="" questioned="" how="" hud="" will="" know="" whether="" the="" pha="" extended="" the="" target="" date="" within="" 30="" calendar="" days="" after="" the="" deadline="" and="" whether="" such="" extensions="" were="" for="" reasons="" outside="" of="" the="" pha's="" control.="" these="" components="" are="" not="" certified="" by="" the="" pha,="" but="" are="" graded="" by="" hud="" based="" on="" hud="" in-house="" information.="" hud="" will="" only="" know="" what="" it="" can="" gather="" from="" loccs="" and="" from="" on-site="" reviews.="" assessments="" will="" be="" very="" inconsistent="" and="" of="" questionable="" accuracy.="" response:="" a="" pha="" is="" currently="" required="" to="" inform="" hud="" if="" it="" has="" extended="" the="" target="" date="" for="" fund="" obligation="" so="" that="" hud="" may="" enter="" the="" revised="" date="" into="" the="" line="" of="" credit="" control="" system="" (loccs).="" a="" pha="" also="" is="" currently="" required="" to="" report="" on="" all="" time="" extensions="" that="" it="" issued="" and="" the="" reasons="" for="" those="" extensions="" in="" its="" annual="" cgp="" performance="" and="" evaluation="" report="" for="" the="" program="" year="" ending="" june="" 30.="" if="" a="" pha="" issues="" a="" time="" extension="" between="" june="" 30="" and="" september="" 30,="" it="" will="" be="" required="" to="" inform="" hud="" so="" that="" components="" #1="" and="" #2="" may="" be="" scored="" correctly.="" if="" the="" state/area="" office="" fails="" to="" take="" into="" account="" a="" time="" extension="" made="" by="" the="" pha,="" the="" pha="" may="" appeal="" its="" score="" to="" the="" state/area="" office="" so="" that="" the="" corrected="" information="" may="" be="" used="" in="" rescoring.="" comment:="" one="" comment="" stated="" that="" component="" #1="" is="" an="" example="" of="" excessive="" flexibility,="" in="" that="" a="" pha="" can="" miss="" the="" performance="" target="" but="" still="" receive="" a="" grade="" a="" by="" executing="" a="" self-imposed="" time="" extension="" within="" 30="" calendar="" days="" after="" the="" expenditure="" deadline="" so="" long="" as="" the="" extension="" is="" for="" conditions="" which="" the="" pha="" determines="" is="" beyond="" its="" control.="" a="" pha="" also="" can="" manage="" this="" requirement="" by="" simply="" including="" in="" its="" original="" implementation="" schedule,="" a="" time="" period="" longer="" than="" three="" years="" to="" expend="" its="" modernization="" funds.="" the="" same="" options="" are="" available="" in="" connection="" with="" component="" #2.="" response:="" the="" department="" believes="" that="" pha="" flexibility="" to="" issue="" time="" extensions="" for="" reasons="" outside="" of="" the="" pha's="" control="" is="" critical="" to="" streamlining="" program="" requirements="" and="" is="" an="" important="" tool="" in="" expediting="" program="" implementation.="" hud="" still="" approves="" the="" original="" implementation="" schedule="" and="" may="" require="" a="" shorter="" time="" period="" if="" a="" pha="" proposes="" a="" time="" period="" that="" is="" too="" long.="" also,="" hud="" reviews="" the="" basis="" on="" which="" the="" pha="" issues="" a="" time="" extension="" and,="" if="" inappropriate,="" may="" withdraw="" the="" pha's="" authority="" to="" do="" so,="" thereby="" requiring="" that="" all="" future="" time="" extensions="" be="" submitted="" for="" prior="" hud="" approval.="" comment:="" one="" comment="" questioned="" the="" term="" ``modernization''="" as="" used="" in="" components="" #1="" and="" #2.="" does="" it="" mean="" ciap/cgp="" only,="" or="" the="" larger="" definition="" of="" ``modernization''="" found="" in="" the="" term="" ``approved="" funded,="" on-schedule="" annual="" modernization="" program?''="" the="" comment="" contended="" that="" the="" rule="" uses="" two="" different="" definitions="" of="" the="" term="" ``modernization'':="" one="" that="" is="" ciap/cgp="" only;="" and="" one="" that="" includes="" more="" than="" just="" ciap/="" cgp.="" response:="" all="" components="" apply="" to="" both="" the="" cgp,="" the="" ciap="" and="" lead="" based="" paint="" risk="" assessment="" (1992-1995).="" only="" components="" #3,="" #4="" and="" #5="" apply="" to="" funding="" under="" the="" hope="" vi="" program="" and="" the="" vacancy="" reduction="" program="" for="" the="" assessment="" of="" this="" indicator.="" the="" new="" rule="" has="" been="" revised="" to="" include="" this="" language.="" comment:="" one="" comment="" recommended="" that="" hud="" decouple="" the="" fund="" obligation="" deadline="" from="" specific="" modernization="" projects.="" this="" is="" in="" keeping="" with="" hud's="" approach="" in="" the="" community="" development="" program="" arena="" where="" hud="" tracks="" a="" specified="" amount="" of="" funds="" obligated="" each="" year="" regardless="" of="" the="" year="" in="" which="" hud="" allocated="" the="" funds="" to="" a="" locality.="" response:="" the="" department="" does="" not="" agree="" with="" this="" comment="" since="" each="" annual="" grant="" must="" be="" individually="" tracked="" and="" closed="" out.="" comment:="" one="" comment="" stated="" that="" components="" #1="" and="" #2="" do="" not="" measure="" the="" adequacy="" of="" modernization="" efforts="" or="" address="" the="" adequacy="" of="" the="" overall="" maintenance="" program="" of="" the="" pha.="" response:="" the="" department="" points="" out="" that="" both="" components="" are="" mandated="" by="" statute.="" the="" department="" believes="" that="" component="" #2,="" fund="" obligation,="" is="" a="" critical="" indicator="" of="" modernization="" performance.="" neither="" component="" is="" intended="" to="" address="" the="" adequacy="" of="" the="" pha's="" overall="" maintenance="" program.="" comment:="" one="" comment="" stated="" that="" a="" pha's="" potential="" score="" for="" components="" #3="" and="" #4="" seems="" to="" be="" subject="" to="" the="" timing="" of="" a="" hud="" monitoring="" visit.="" a="" pha="" should="" not="" be="" graded="" on="" these="" components="" unless="" at="" least="" three="" months="" have="" elapsed="" between="" the="" date="" of="" hud's="" monitoring="" report="" to="" the="" pha="" and="" the="" end="" of="" the="" pha's="" fiscal="" year;="" also,="" the="" time="" frame="" for="" hud="" reviews="" should="" be="" clarified.="" response:="" the="" department="" agrees="" that="" a="" minimum="" time="" should="" be="" specified="" between="" the="" date="" of="" hud's="" monitoring="" report="" or="" audit="" is="" provided="" to="" the="" pha="" and="" the="" end="" of="" the="" pha's="" fiscal="" year="" in="" order="" to="" give="" the="" pha="" sufficient="" time="" to="" correct="" all="" findings.="" accordingly,="" the="" department="" has="" revised="" components="" #3="" [[page="" 68911]]="" and="" #4="" to="" reflect="" a="" minimum="" time="" of="" 75="" calendar="" days.="" comment:="" one="" comment="" stated="" that="" a="" clearer="" distinction="" should="" be="" established="" between="" an="" ``a''="" and="" a="" ``c''="" grade="" for="" components="" #3="" and="" #4;="" i.e.,="" that="" a="" pha="" must="" ``have="" corrected''="" all="" findings="" versus="" ``be="" in="" the="" process="" of="" correcting''="" all="" findings.="" response:="" the="" phrase="" the="" ``pha="" has="" corrected''="" all="" findings="" means="" that="" hud="" concurs="" in="" the="" pha's="" determination="" that="" the="" violation="" no="" longer="" exists="" and="" that="" hud="" is="" ready="" to="" close="" the="" finding="" or="" has="" already="" closed="" it.="" the="" phrase="" the="" ``pha="" is="" in="" the="" process="" of="" correcting''="" all="" findings="" means="" that="" the="" violation="" still="" exists="" and="" the="" finding="" is="" not="" yet="" ready="" to="" be="" closed.="" comment:="" one="" comment="" supports="" an="" appeal="" process="" in="" the="" event="" a="" pha="" and="" hud="" differ="" on="" what="" constitutes="" ``significant="" findings.''="" response:="" as="" stated,="" above,="" this="" language="" has="" been="" changed="" and="" the="" term="" ``significant''="" has="" been="" eliminated.="" in="" addition,="" the="" phmap="" rule="" at="" sec.="" 901.125="" sets="" forth="" the="" pha's="" right="" of="" appeal.="" comment:="" one="" comment="" recommended="" that="" hud="" use="" qualified="" building="" inspection="" firms="" or="" inspectors,="" in="" combination="" with="" qualified="" hud="" engineers="" as="" they="" are="" available="" to="" inspect="" the="" physical="" work="" that="" is="" completed="" rather="" than="" the="" corps="" of="" engineers.="" response:="" the="" department="" intends="" to="" use="" all="" resources="" available="" to="" it,="" including="" the="" u.s.="" army="" corps="" of="" engineers,="" for="" inspection="" of="" approved="" modernization="" programs.="" comment:="" one="" comment="" recommended="" that="" component="" #5="" be="" covered="" under="" indicator="" #6,="" financial="" management,="" since="" financial="" management="" of="" the="" modernization="" program="" is="" part="" of="" the="" overall="" financial="" management="" of="" the="" pha's="" programs.="" response:="" the="" department="" rejects="" this="" comment="" since="" the="" modernization="" budget="" controls="" are="" so="" integral="" to="" implementation="" performance="" by="" a="" pha.="" comment:="" one="" comment="" supported="" the="" change="" to="" component="" #5="" that="" reflects="" the="" flexibility="" recently="" provided="" to="" cgp="" phas="" to="" move="" work="" items="" between="" approved="" annual="" statements="" and="" the="" five-year="" action="" plan="" and="" to="" address="" emergency="" items="" not="" reflected="" in="" either="" document.="" another="" comment="" noted="" that="" emergency="" cgp="" work="" does="" not="" require="" prior="" hud="" approval.="" response:="" the="" department="" agrees="" that="" emergency="" cgp="" work="" does="" not="" require="" prior="" hud="" approval="" and="" has="" revised="" component="" #5="" to="" specifically="" exclude="" emergency="" work.="" comment:="" one="" comment="" proposed="" a="" new="" component="" related="" to="" the="" incorporation="" of="" work="" orders,="" which="" are="" identified="" by="" yearly="" inspections="" of="" systems="" and="" units="" and="" deferred="" for="" modernization,="" in="" the="" modernization="" plan.="" response:="" the="" department="" does="" not="" agree="" with="" this="" comment="" because="" all="" work="" orders="" are="" tracked="" under="" indicator="" #4="" in="" the="" new="" rule.="" a="" work="" order="" deferred="" for="" modernization="" is="" any="" work="" order="" that="" is="" combined="" with="" similar="" work="" items="" as="" defined="" in="" sec.="" 901.5.="" indicator="" #3="" rents="" uncollected--sec.="" 901.20="" comment:="" ten="" comments="" supported="" the="" simplification="" of="" the="" indicator="" and="" the="" grading="" method,="" without="" further="" comment.="" response:="" the="" comments="" are="" noted="" by="" the="" department.="" comment:="" ten="" comments="" sought="" a="" variety="" of="" additional="" exclusions="" from="" ``dwelling="" rent''="" such="" as="" charges="" for="" amounts="" that="" cannot="" be="" collected="" by="" the="" pha="" without="" stopping="" the="" eviction="" process,="" amounts="" owed="" by="" tenants="" no="" longer="" in="" possession,="" disputed="" amounts,="" amounts="" written="" off,="" or="" amounts="" abated.="" one="" pha="" thought="" that="" the="" indicator="" was="" inconsistent="" with="" the="" one="" strike="" policy="" in="" indicator="" #8="" because="" a="" resident="" evicted="" for="" selling="" drugs="" would="" be="" charged="" dwelling="" rent="" that="" could="" not="" be="" collected="" during="" the="" eviction="" process.="" response:="" the="" department="" does="" not="" agree.="" the="" reasons="" for="" nonpayment="" of="" rent="" are="" varied="" and="" the="" specific="" conditions="" mentioned="" are="" not="" unique.="" the="" purpose="" of="" the="" indicator="" is="" to="" assess="" a="" pha's="" ability="" to="" deal="" with="" conditions="" for="" nonpayment="" effectively="" to="" collect="" the="" rent="" due;="" excluding="" the="" charges="" related="" to="" all="" possible="" reasons="" for="" noncollection="" would="" defeat="" the="" purpose="" of="" the="" indicator.="" a="" pha="" may="" request="" a="" modification="" or="" exclusion="" to="" this="" indicator="" due="" to="" highly="" unusual="" or="" unique="" circumstances.="" comment:="" five="" comments="" pointed="" out="" inconsistencies="" in="" terminology="" in="" the="" indicator="" that="" they="" believed="" made="" the="" indicator="" unclear.="" one="" comment="" stated="" that="" the="" terminology="" in="" sec.="" 901.20="" doesn't="" have="" the="" same="" specificity="" as="" the="" summary.="" the="" language="" in="" sec.="" 901.20="" needs="" to="" be="" revised="" to="" conform="" with="" the="" summary="" and="" the="" definitions.="" there="" were="" four="" comments="" regarding="" the="" definition="" of="" the="" terms="" ``current="" dwelling="" rent="" billed,''="" ``current="" dwelling="" rent="" uncollected,''="" ``percent="" of="" current="" dwelling="" rent,''="" and="" ``rents="" uncollected.''="" response:="" the="" terminology="" referred="" to="" in="" the="" comments="" has="" been="" changed="" in="" the="" new="" rule="" to="" be="" consistent.="" comment:="" four="" comments="" stated="" that="" uncollected="" rent="" of="" 2%="" or="" less="" for="" a="" grade="" of="" a="" was="" unduly="" restrictive="" and="" not="" in="" line="" with="" the="" private="" market="" standard.="" the="" comments="" requested="" that="" the="" 2%="" be="" changed="" to="" 5%="" to="" conform="" to="" industry="" standards.="" response:="" the="" department="" believes="" that="" the="" percentage="" for="" grade="" a="" is="" fair="" since="" this="" grade="" represents="" the="" truly="" outstanding="" pha,="" rather="" than="" the="" industry="" standard.="" the="" industry="" standard="" of="" 5%="" is="" reflected="" in="" grade="" c="" of="" this="" indicator,="" and="" denotes="" standard="" performance.="" comment:="" two="" comments="" noted="" that="" the="" indicator="" is="" not="" as="" simple="" as="" it="" seems="" since="" data="" required="" by="" the="" indicator="" is="" not="" readily="" available="" in="" the="" accounting="" system.="" one="" comment="" stated="" that="" the="" method="" should="" not="" be="" changed="" from="" the="" interim="" method.="" response:="" the="" department="" recognizes="" that="" accounting="" systems="" do="" not="" usually="" collect="" or="" compile="" the="" specific="" tenant="" accounts="" receivable="" information="" required="" for="" indicator="" #3="" as="" proposed;="" therefore,="" the="" proposed="" indicator="" has="" been="" changed="" to="" incorporate="" information="" that="" is="" collected="" by="" phas="" to="" compile="" other="" tenant="" accounts="" receivable="" and="" financial="" reports.="" the="" major="" change="" between="" the="" new="" indicator="" and="" the="" current="" method="" is="" that="" the="" new="" indicator="" includes="" only="" information="" for="" tenants="" in="" residence="" during="" the="" assessed="" fiscal="" year.="" comment:="" one="" pha="" commented="" that="" rent="" collections="" are="" so="" important="" that="" the="" indicator="" should="" have="" a="" weight="" of="" x3.="" response:="" the="" department="" agrees="" that="" rent="" collections="" are="" important="" to="" the="" financial="" health="" of="" the="" pha,="" and="" it="" has="" the="" second="" highest="" weight="" of="" all="" the="" indicators.="" the="" weighting="" has="" been="" simplified="" to="" a="" ten="" point="" scale,="" with="" only="" indicator="" #1,="" vacancy="" rate="" and="" unit="" turnaround,="" having="" a="" weight="" of="" x2.="" indicator="" #4,="" work="" orders="" sec.="" 901.25="" general="" comments="" comment:="" many="" comments="" received="" were="" generally="" supportive="" of="" the="" revised="" requirements="" of="" this="" indicator.="" most="" indicated="" that="" the="" changes="" made="" to="" this="" indicator="" will="" create="" a="" management="" tool="" that="" is="" more="" equitable="" and="" provide="" a="" more="" accurate="" measurement="" of="" work="" order="" completion.="" response:="" the="" comments="" are="" noted="" by="" the="" department.="" comment:="" four="" comments="" stated="" that="" recording="" the="" time="" for="" completing="" emergency="" and="" non-emergency="" work="" orders="" is="" unnecessary="" and="" unproductive.="" the="" extra="" administrative="" expense="" to="" record="" the="" time="" of="" processing="" work="" orders="" is="" not="" justified.="" one="" comment="" stated="" that="" this="" change="" will="" put="" an="" excessive="" burden="" on="" small="" phas="" in="" tracking="" the="" time="" involved="" on="" routine="" [[page="" 68912]]="" (non-emergency)="" work="" orders="" due="" to="" the="" many="" factors="" which="" can="" effect="" how="" long="" it="" takes="" to="" do="" a="" work="" order.="" response:="" the="" department="" does="" not="" agree="" with="" this="" statement.="" this="" indicator="" is="" a="" statutory="" requirement="" under="" the="" phmap.="" the="" preamble="" to="" the="" phmap="" rule="" and="" the="" new="" rule="" state="" that="" ``implicit="" in="" this="" indicator="" is="" the="" adequacy="" of="" the="" pha's="" work="" order="" system="" in="" terms="" of="" how="" a="" pha="" accounts="" for="" and="" controls="" its="" work="" orders,="" and="" its="" timeliness="" in="" preparing/issuing="" work="" orders.''="" therefore,="" there="" should="" not="" be="" substantial="" additional="" administrative="" expense="" since="" an="" adequate="" work="" order="" system="" must="" be="" able="" to="" track="" and="" control="" work="" orders="" from="" the="" dates/times="" of="" when="" the="" work="" orders="" were="" initiated="" to="" the="" dates/times="" when="" they="" were="" completed.="" comment:="" two="" comments="" stated="" that="" emergency="" work="" orders="" should="" be="" at="" least="" equal="" in="" weight="" to="" non-emergency="" work="" orders.="" response:="" the="" department="" believes="" that="" since="" emergency="" conditions="" must="" be="" abated="" immediately="" or="" no="" longer="" than="" 24="" hours="" from="" when="" first="" reported,="" the="" tracking="" and="" controlling="" of="" non-emergency="" work="" orders="" would="" provide="" more="" accurate="" information="" of="" pha="" work="" order="" performance.="" hence,="" more="" weight="" is="" given="" to="" the="" phas'="" non-emergency="" work="" order="" activities.="" however,="" the="" weight="" of="" the="" total="" indicator="" in="" the="" new="" rule="" is="" x1.="" comment:="" two="" comments="" stated="" that="" the="" definitions="" for="" cyclical="" work="" orders="" and="" preventive="" maintenance="" are="" very="" similar,="" which="" is="" especially="" distressing="" because="" the="" proposed="" rule="" is="" very="" clear="" in="" its="" requirement="" that="" the="" two="" not="" be="" confused.="" response:="" the="" department="" agrees="" that="" there="" are="" many="" instances="" in="" which="" phas="" might="" not="" use="" the="" work="" order="" process="" to="" do="" general="" cleaning="" activities,="" pick="" up="" trash="" or="" change="" light="" bulbs.="" when="" they="" do,="" these="" work="" orders="" are="" classified="" as="" cyclical="" work="" orders="" and="" are="" excluded="" from="" component="" #2,="" non-emergency="" work="" order,="" calculation.="" other="" examples="" of="" cyclical="" work="" orders="" might="" be="" work="" orders="" that="" are="" routinely="" written="" each="" year="" to="" replace="" furnace="" filters,="" clean="" out="" site="" and="" roof="" storm="" drains="" or="" raking="" leaves="" in="" the="" fall.="" preventive="" maintenance="" work="" orders="" are="" usually="" generated="" from="" preventive="" maintenance="" inspections.="" they="" are="" primarily="" related="" to="" the="" modification="" or="" repair="" of="" physical="" systems="" of="" units,="" buildings="" and="" grounds.="" the="" department="" will="" include="" examples="" of="" cyclical="" and="" preventive="" work="" orders="" in="" the="" revision="" of="" the="" phmap="" handbook="" 7460.5.="" comment:="" two="" comments="" stated="" that="" for="" work="" orders="" done="" by="" outside="" contractors,="" which="" may="" take="" longer="" to="" complete="" or="" that="" require="" special="" parts,="" if="" a="" vendor="" has="" difficulty="" in="" securing="" a="" part,="" the="" pha="" would="" be="" penalized="" even="" though="" the="" living="" conditions="" in="" the="" unit="" aren't="" compromised.="" response:="" the="" department="" does="" not="" agree="" with="" this="" comment.="" the="" department="" has="" provided="" up="" to="" 25="" days="" for="" the="" average="" time="" to="" complete="" non-emergency="" work="" orders="" in="" order="" for="" a="" pha="" to="" achieve="" a="" grade="" a="" for="" this="" component.="" this="" is="" quite="" liberal="" as="" compared="" to="" the="" private="" sector.="" the="" few="" cases="" that="" might="" exceed="" the="" 25="" day="" period,="" due="" to="" a="" wait="" on="" a="" special="" part,="" should="" not="" significantly="" impact="" a="" final="" phmap="" score.="" in="" regards="" to="" emergency="" work="" orders,="" if="" the="" emergency="" condition="" in="" a="" particular="" unit="" cannot="" be="" corrected="" or="" abated="" within="" the="" 24="" hour="" time="" frame,="" the="" resident(s)="" could="" be="" moved="" out="" of="" the="" unit,="" which="" would="" abate="" the="" emergency="" situation.="" comment:="" two="" comments="" wants="" to="" know="" if="" the="" reduction="" of="" days="" needed="" to="" complete="" work="" orders="" affect="" grades="" a="" and="" b,="" or="" is="" it="" only="" taken="" into="" consideration="" when="" the="" grade="" is="" c="" or="" less.="" under="" what="" conditions="" may="" a="" pha="" make="" such="" an="" election?="" to="" this,="" the="" rule="" appears="" to="" be="" silent.="" response:="" the="" reduction="" of="" days="" needed="" to="" complete="" non-emergency="" work="" orders="" is="" only="" taken="" into="" consideration="" when="" the="" grade="" is="" c="" or="" less.="" the="" department="" has="" revised="" the="" reduction="" of="" days="" needed="" to="" complete="" non-emergency="" work="" orders="" during="" the="" preceding="" three="" years="" to="" conform="" with="" other="" changes="" in="" the="" new="" rule.="" comment:="" one="" comment="" stated="" that="" this="" indicator="" is="" poorly="" written="" and="" needs="" additional="" clarification.="" response:="" the="" comment="" is="" not="" specific="" as="" to="" where="" the="" clarifications="" are="" needed.="" the="" department="" wants="" a="" new="" phmap="" rule="" that="" is="" clear,="" concise="" and="" easy="" to="" understand,="" and="" welcomes="" any="" and="" all="" suggestions="" on="" how="" it="" can="" achieve="" that="" goal.="" if="" some="" areas="" of="" the="" rule="" are="" unclear="" to="" a="" reader,="" or="" needs="" further="" interpretation,="" he/she="" can="" contact="" the="" local="" state/area="" office="" for="" assistance.="" comment:="" one="" comment="" stated="" that="" phas="" may="" need="" technical="" assistance="" to="" construct="" an="" effective="" tracking="" system="" without="" spending="" scarce="" funds="" on="" additional="" software="" or="" special="" tracking="" systems.="" response:="" the="" department="" agrees="" with="" this="" comment="" and="" maintains="" that="" phas="" must="" have="" in="" place="" an="" adequate="" work="" order="" system="" that="" tracks="" and="" controls="" work="" orders="" from="" the="" dates="" that="" they="" were="" initially="" entered="" into="" the="" system="" to="" the="" dates="" when="" they="" were="" completed.="" the="" necessary="" information="" to="" grade="" emergency="" and="" non-emergency="" work="" orders="" should="" be="" readily="" accessible="" from="" the="" data="" in="" the="" pha's="" work="" order="" system.="" however,="" if="" the="" pha's="" existing="" system="" cannot="" perform="" the="" necessary="" tracking="" function,="" it="" should="" be="" a="" priority="" of="" the="" pha="" to="" up-="" date="" the="" existing="" system="" or="" replace="" it="" with="" one="" that="" can.="" to="" that="" end,="" hud="" is="" always="" available="" to="" provide="" appropriate="" technical="" assistance.="" comment:="" one="" comment="" stated="" that="" there="" should="" be="" a="" one="" year="" delay="" in="" implementation.="" response:="" the="" department="" has="" determined="" that="" the="" revisions="" in="" the="" new="" phmap="" rule="" will="" apply="" to="" phas="" with="" fiscal="" years="" ending="" the="" quarter="" after="" the="" new="" phmap="" rule="" is="" published="" in="" the="" federal="" register.="" comment:="" one="" comment="" stated="" that="" this="" indicator="" does="" not="" provide="" any="" means="" for="" measuring="" the="" effectiveness="" of="" a="" pha's="" response="" to="" deficiencies="" identified="" in="" inspections.="" response:="" the="" department="" agrees.="" measuring="" the="" effectiveness="" of="" pha="" response="" to="" deficiencies="" is="" too="" subjective="" and="" would="" not="" necessarily="" be="" the="" same="" from="" pha="" to="" pha;="" phmap="" measures="" performance.="" comment:="" one="" comment="" stated="" that="" a="" confirmatory="" review="" should="" be="" required="" each="" year="" by="" qualified="" hud="" staff="" or="" building="" inspection="" firms.="" response:="" the="" department="" disagrees="" due="" to="" the="" lack="" of="" resources.="" risk="" management="" is="" used="" to="" determine="" where="" confirmatory="" reviews="" are="" most="" needed.="" component="" #1,="" emergency="" work="" orders="" comment:="" one="" comment="" stated="" that="" the="" evaluation="" for="" grading="" emergency="" work="" orders="" under="" component="" #1,="" is="" too="" tight,="" i.e.,="" 99%="" of="" the="" emergency="" work="" orders="" completed="" or="" abated="" within="" 24="" hours="" for="" a="" grade="" a="" and="" down="" to="" 95%="" completed="" or="" abated="" for="" a="" grade="" f.="" response:="" the="" department="" does="" not="" agree.="" the="" department="" defines="" emergency="" as="" physical="" work="" items="" that="" pose="" an="" immediate="" threat="" to="" the="" life,="" health="" and="" safety="" of="" residents="" or="" that="" are="" related="" to="" fire="" safety.="" if="" emergency="" work="" items="" cannot="" be="" completed="" or="" abated="" within="" 24="" hours,="" the="" pha="" could="" move="" the="" resident="" out="" of="" the="" unit="" until="" the="" emergency="" work="" is="" completed="" or="" abated.="" the="" removal="" of="" the="" resident(s)="" from="" the="" emergency="" condition="" is="" considered="" abatement.="" therefore,="" correcting="" or="" abating="" an="" emergency="" situation="" should="" never="" exceed="" 24="" hours.="" comment:="" one="" comment="" stated="" that="" a="" more="" specific="" definition="" of="" emergency="" work="" orders="" should="" be="" given,="" possibly="" including="" examples.="" response:="" emergency="" means="" physical="" work="" items="" that="" pose="" an="" immediate="" [[page="" 68913]]="" threat="" to="" life,="" health,="" safety,="" or="" property,="" or="" that="" are="" related="" to="" fire="" safety.="" some="" of="" the="" more="" easily="" definable="" emergency="" situations="" would="" be:="" (1)="" an="" unhealthy="" or="" undrinkable="" water="" supply;="" (2)="" a="" gas="" leak;="" (3)="" a="" broken="" sanitary="" sewer="" line="" where="" sewage="" is="" ponding="" on="" the="" surface="" of="" the="" ground;="" (4)="" failed="" heating="" systems="" in="" colder="" winter="" climates;="" (5)="" hazardous="" electrical="" systems;="" non-working="" smoke="" detector="" or="" fire="" alarm="" system;="" and="" (7)="" toxic="" material="" situations="" such="" as="" exposure="" to="" asbestos="" or="" defective="" lead-based="" paint.="" situations="" such="" as="" leaky="" roofs,="" broken="" windows="" or="" stairways="" might="" be="" classified="" as="" an="" emergency="" depending="" on="" specific="" circumstances="" and="" the="" degree="" to="" which="" the="" situation="" is="" an="" immediate="" threat="" to="" tenant="" health,="" safety="" or="" to="" property.="" temporarily="" covering="" a="" hole="" in="" the="" roof="" or="" broken="" window,="" or="" closing="" off="" a="" stairwell="" until="" the="" condition="" can="" be="" corrected="" would="" be="" considered="" emergency="" abatement="" and="" would="" change="" these="" types="" of="" work="" orders="" from="" emergency="" to="" regular="" (non-emergency)="" work="" orders.="" the="" department="" will="" include="" examples="" of="" emergency="" and="" non-emergency="" work="" orders="" in="" the="" revision="" of="" the="" phmap="" handbook="" 7460.5.="" component="" #2,="" non-emergency="" work="" orders="" comment:="" two="" comments="" stated="" that="" excluding="" cyclical="" work="" orders="" from="" the="" calculation="" of="" this="" indicator="" serves="" to="" create="" what="" must="" be="" an="" unintentional="" disincentive="" to="" devote="" staff="" resource="" time="" to="" routine="" daily="" maintenance="" work.="" the="" pha="" that="" devotes="" all="" of="" its="" maintenance="" resources="" to="" competing="" phmap="" measured="" work="" orders="" while="" ignoring="" trash="" on="" the="" grounds="" and="" in="" the="" hallways="" will="" score="" higher="" than="" a="" pha="" that="" devotes="" its="" resources="" to="" daily="" maintenance="" as="" well="" as="" inspection="" and="" resident="" initiated="" work="" orders.="" unless="" the="" phmap="" rule="" intends="" to="" cause="" phas="" to="" place="" a="" very="" low="" priority="" on="" the="" completion="" of="" daily="" maintenance="" work="" orders,="" work="" orders="" generated="" to="" accomplish="" this="" work="" should="" not="" be="" excluded="" from="" the="" calculation="" of="" this="" indicator.="" response:="" the="" department="" disagrees="" with="" this="" suggestion="" since="" this="" component="" was="" designed="" to="" only="" measure="" pha="" performance="" in="" completing="" work="" orders="" and="" was="" never="" intended="" to="" place="" daily="" maintenance="" work="" at="" a="" low="" priority="" or="" ignore="" trash="" on="" the="" grounds="" and="" in="" the="" hallways.="" normally,="" tasks="" such="" as="" picking="" up="" trash,="" etc.,="" are="" performed="" by="" laborers="" and="" would="" not="" be="" covered="" by="" a="" work="" order.="" work="" orders="" exempted="" for="" modernization,="" issued="" to="" prepare="" a="" vacant="" unit="" for="" re-rental,="" or="" issued="" for="" the="" performance="" of="" cyclical="" maintenance="" are="" not="" necessarily="" the="" same="" from="" pha="" to="" pha="" and="" consequently,="" would="" tend="" to="" skew="" the="" performance="" grade="" results="" from="" pha="" to="" pha="" if="" they="" were="" not="" exempted.="" comment:="" one="" comment="" stated="" that="" preventive="" maintenance="" work="" orders="" are="" not="" exempted="" from="" the="" calculation="" of="" this="" component="" and="" should="" be.="" this="" pha="" issues="" over="" 3,000="" work="" orders="" for="" preventive="" maintenance="" to="" be="" performed="" on="" the="" heating="" systems="" over="" the="" period="" of="" the="" three="" to="" four="" month="" non-heating="" season.="" if="" these="" are="" included="" in="" the="" count,="" there="" is="" no="" possible="" way="" for="" this="" pha="" to="" obtain="" a="" high="" score="" for="" this="" component="" since="" the="" work="" could="" never="" be="" completed="" in="" 25="" days="" or="" less.="" response:="" it="" appears="" that="" the="" work="" orders="" described="" above="" should="" be="" classified="" as="" cyclical="" work="" orders,="" which="" are="" excluded="" from="" the="" non-="" emergency="" calculation.="" if="" this="" is="" not="" the="" case,="" the="" pha="" does="" have="" the="" option="" to="" request="" hud's="" approval="" of="" either="" a="" modification="" or="" exclusion="" of="" this="" indicator.="" comment:="" one="" comment="" stated="" that="" to="" divide="" work="" orders="" among="" routine="" and="" emergency,="" then="" determine="" average="" number="" of="" days="" it="" took="" to="" complete="" them="" assumes="" that="" only="" closed="" work="" orders="" will="" be="" counted="" under="" this="" indicator,="" and="" any="" work="" order="" that="" is="" not="" closed="" will="" be="" counted="" against="" the="" following="" fiscal="" year="" as="" we="" currently="" do="" with="" vacant="" units.="" please="" clarify.="" response:="" the="" calculation="" of="" this="" indicator="" includes:="" the="" number="" of="" days="" in="" the="" assessed="" fiscal="" year="" it="" takes="" to="" close="" active="" non-emergency="" work="" orders="" carried="" over="" from="" the="" previous="" fiscal="" year;="" the="" number="" of="" days="" it="" takes="" to="" complete="" non-emergency="" work="" orders="" issued="" and="" closed="" during="" the="" assessed="" fiscal="" year;="" and="" the="" number="" of="" days="" all="" active="" non-="" emergency="" work="" orders="" are="" open="" in="" the="" assessed="" fiscal="" year,="" but="" not="" completed.="" the="" new="" rule="" includes="" a="" definition="" of="" the="" average="" number="" of="" days="" for="" non-emergency="" work="" orders="" to="" be="" completed.="" comment:="" one="" comment="" stated="" that="" this="" indicator="" should="" specifically="" state="" that="" hud="" wants="" all="" preventive="" maintenance="" work="" orders="" tracked="" rather="" than="" focusing="" on="" exclusions="" and="" thus,="" place="" proper="" emphasis="" on="" preventive="" maintenance.="" response:="" the="" department="" agrees="" and="" has="" added="" specific="" language="" to="" the="" new="" rule="" stating="" that="" all="" preventive="" maintenance="" work="" orders="" are="" to="" be="" tracked,="" as="" well="" as="" which="" type="" of="" work="" orders="" are="" exempted="" from="" the="" calculation="" of="" this="" indicator.="" section="" 901.30="" indicator="" #5,="" annual="" inspection="" of="" units="" and="" systems="" general="" comments="" comment:="" three="" comments="" support="" the="" improvements="" in="" this="" indicator,="" particularly="" reducing="" the="" components="" from="" four="" to="" two="" and="" eliminating="" redundancies.="" response:="" hud="" agrees="" that="" it="" is="" more="" appropriate="" to="" track="" all="" work="" orders,="" including="" inspection="" generated="" work="" orders,="" under="" indicator="" #4.="" indicator="" #5="" now="" focuses="" more="" on="" a="" pha's="" ability="" to="" determine="" short-="" term="" maintenance="" needs="" and="" long-term="" modernization="" needs.="" comment:="" three="" comments="" expressed="" concern="" about="" the="" possible="" subjective="" interpretation="" of="" the="" adequacy="" of="" a="" pha's="" inspection="" system="" by="" hud="" field="" staff.="" a="" clear="" and="" reasonable="" description="" of="" an="" adequate="" inspection="" system="" should="" be="" included="" in="" the="" rule.="" response:="" the="" preamble="" to="" the="" proposed="" rule="" stated="" that="" the="" adequacy="" of="" a="" pha's="" inspection="" program="" will="" be="" part="" of="" the="" confirmatory="" review="" in="" terms="" of="" the="" quality="" of="" a="" pha's="" inspections,="" and="" how="" a="" pha="" tracks="" both="" inspections="" and="" needed="" repair,="" and="" the="" adequacy="" of="" a="" pha's="" inspection="" system="" is="" also="" included="" in="" the="" new="" rule.="" the="" department="" recognizes="" that="" what="" is="" adequate="" for="" one="" pha="" may="" not="" be="" adequate="" for="" another="" pha,="" thereby="" making="" this="" term="" general="" in="" concept.="" examples="" of="" inspection="" systems="" will="" be="" included="" in="" a="" guidebook="" on="" the="" conduct="" of="" confirmatory="" reviews="" and="" in="" the="" revised="" phmap="" handbook="" 7560.5.="" comment:="" two="" comments="" stated="" that="" the="" two="" components="" are="" well="" described="" and="" are="" graded="" equitably.="" however,="" it="" should="" be="" clarified="" if="" damages="" caused="" by="" residents="" that="" are="" not="" reported="" to="" maintenance="" for="" prompt="" repair="" could="" be="" exempted="" and="" considered="" as="" repairs="" for="" code="" compliance.="" response:="" if="" a="" unique="" or="" unusual="" circumstance="" were="" to="" occur,="" a="" pha="" could="" request="" a="" modification="" to="" this="" indicator="" to="" avoid="" being="" penalized="" for="" circumstances="" beyond="" its="" control.="" however,="" one="" of="" the="" purposes="" of="" an="" annual="" unit="" inspection="" is="" for="" a="" pha="" to="" be="" able="" to="" identify,="" at="" least="" annually,="" the="" condition="" of="" its="" housing="" stock.="" since="" this="" indicator="" no="" longer="" measures="" the="" amount="" of="" time="" it="" takes="" to="" correct="" unit/system="" deficiencies,="" the="" annual="" inspection="" would="" simply="" initiate="" corrective="" action.="" comment:="" one="" comment="" stated="" that="" this="" indicator="" is="" poorly="" written="" and="" needs="" additional="" clarification.="" response:="" the="" comment="" is="" not="" specific="" as="" to="" where="" the="" clarifications="" are="" needed.="" the="" department="" wants="" a="" [[page="" 68914]]="" new="" phmap="" rule="" that="" is="" clear,="" concise="" and="" easy="" to="" understand,="" and="" welcomes="" any="" and="" all="" suggestions="" on="" how="" it="" can="" achieve="" that="" goal.="" if="" some="" areas="" of="" the="" rule="" are="" unclear="" to="" a="" reader,="" or="" needs="" further="" interpretation,="" he/she="" may="" contact="" the="" local="" state/area="" office="" for="" assistance.="" comment:="" one="" comment="" stated="" that="" phas="" must="" have="" adequate="" time="" to="" change="" the="" manner="" in="" which="" they="" track="" annual="" inspections="" and="" needed="" repairs.="" response:="" the="" department="" agrees,="" and="" the="" new="" rule="" will="" apply="" to="" phas="" whose="" fiscal="" year="" ends="" the="" quarter="" after="" the="" publication="" of="" this="" rule="" in="" the="" federal="" register.="" comment:="" one="" comment="" recommended="" that="" a="" confirmatory="" review="" of="" this="" indicator="" be="" required="" each="" year="" by="" hud="" or="" qualified="" building="" inspection="" firms="" that="" would="" track="" whether="" each="" item="" was="" completed="" or="" whether="" it="" was="" referred="" to="" a="" work="" order="" and="" when="" the="" work="" order="" was="" completed.="" response:="" the="" department="" disagrees="" because="" these="" issues="" are="" more="" properly="" examined="" under="" indicator="" #4,="" work="" orders.="" also,="" due="" to="" the="" lack="" of="" resources,="" risk="" management="" is="" used="" to="" determine="" where="" confirmatory="" reviews="" are="" most="" needed.="" however,="" when="" hud="" conducts="" a="" confirmatory="" review="" of="" indicator="" #4,="" the="" items="" mentioned="" in="" the="" comment="" are="" verified="" and="" confirmed.="" comment:="" one="" comment="" stated="" that="" component="" #2="" should="" have="" a="" higher="" weight.="" the="" commenter="" suggested="" that="" there="" should="" be="" a="" new="" component="" that="" requires="" a="" monthly="" walk="" through="" of="" the="" common="" areas,="" with="" the="" results="" of="" these="" inspection="" being="" available="" for="" hud="" monitoring.="" response:="" the="" department="" disagrees="" with="" both="" parts="" of="" the="" comment.="" hud="" believes="" that="" the="" inspection="" of="" units="" and="" the="" inspection="" of="" systems="" are="" equally="" important="" to="" the="" quality="" of="" a="" pha's="" housing="" stock="" and,="" therefore,="" each="" component="" is="" weighted="" equally.="" the="" department="" believes="" that="" adding="" a="" new="" component="" that="" requires="" a="" monthly="" walk="" through="" of="" the="" common="" areas="" would="" result="" in="" the="" micromanagement="" of="" phas.="" comment:="" one="" comment="" asked="" why="" the="" proposed="" certification="" form="" asks="" the="" question,="" ``percent="" of="" units="" meeting="" hqs.''="" response:="" this="" question="" has="" always="" been="" on="" the="" certification="" form.="" the="" department="" requests="" this="" information="" for="" trending="" and="" statistical="" purposes.="" comment:="" one="" comment="" felt="" that="" this="" indicator="" has="" been="" severely="" weakened.="" poor="" property="" management="" may="" be="" rewarded="" simply="" because="" inspections="" have="" been="" conducted.="" the="" necessary="" follow-up="" to="" correct="" identified="" deficiencies="" is="" not="" addressed="" in="" the="" proposed="" rule.="" response:="" the="" department="" disagrees="" with="" this="" comment="" because="" inspection="" generated="" repair="" items="" are="" tracked="" under="" indicator="" #4,="" work="" orders.="" comment:="" one="" comment="" suggested="" that="" units="" under="" proposed="" demolition="" and="" disposition="" applications="" that="" are="" vacant="" should="" be="" excluded="" from="" this="" indicator.="" response:="" the="" department="" does="" not="" agree="" with="" this="" comment.="" there="" have="" been="" and="" will="" continue="" to="" be="" significant="" differences="" between="" initiating="" the="" application="" process="" and="" receiving="" approval="" to="" dispose="" or="" demolish.="" comment:="" one="" comment="" does="" not="" agree="" with="" the="" exemption="" of="" occupied="" units="" that="" the="" pha="" has="" made="" two="" documented="" attempts="" to="" inspect="" because="" this="" could="" become="" an="" excuse="" for="" phas="" with="" poor="" inspection="" programs.="" response:="" the="" department="" disagrees="" that="" such="" a="" situation="" is="" likely="" to="" happen="" because="" the="" language="" of="" the="" exemption="" goes="" on="" to="" state="" that="" phas="" may="" claim="" this="" exemption="" only="" if="" it="" can="" document="" that="" appropriate="" legal="" action="" (up="" to="" and="" including="" eviction="" of="" the="" legal="" or="" illegal="" occupant(s)),="" has="" been="" taken="" under="" the="" provisions="" of="" the="" lease="" to="" ensure="" that="" the="" unit="" can="" be="" subsequently="" inspected.="" comment:="" one="" comment="" observed="" that="" the="" expanded="" definition="" of="" what="" units="" are="" excluded="" from="" the="" calculations="" are="" an="" improvement.="" it="" seems="" logical="" to="" exclude="" units="" in="" the="" same="" category="" as="" in="" the="" vacancy="" indicator.="" however,="" there="" is="" concern="" about="" the="" exclusion="" of="" ``units="" vacant="" for="" circumstances="" and="" actions="" beyond="" the="" pha's="" control.''="" the="" concept="" is="" too="" vague.="" there="" will="" be="" situations="" cited="" that="" may="" arguably="" be="" within="" an="" agency's="" control.="" hud="" should,="" minimally,="" identify="" a="" short="" list="" of="" examples="" as="" a="" guide="" to="" phas="" and="" hud="" state/area="" offices.="" response:="" the="" department="" agrees="" and="" this="" rule="" has="" been="" revised="" to="" specifically="" state="" the="" allowable="" exemptions="" for="" indicator="" #5.="" comment:="" one="" comment="" agrees="" with="" excluding="" units="" documented="" as="" uninhabitable,="" but="" feels="" the="" term="" should="" be="" defined="" (e.g.,="" condemned="" by="" local="" health="" department).="" in="" addition,="" phas="" with="" uninhabitable="" units="" should="" indicate="" what="" plans="" they="" have="" to="" demolish="" and="" dispose="" of="" such="" units.="" response:="" the="" language="" for="" this="" indicator="" already="" states="" that="" units="" that="" are="" documented="" to="" be="" uninhabitable="" by="" order="" of="" the="" local="" health="" department="" may="" be="" exempted.="" to="" further="" enumerate="" all="" of="" the="" possible="" federal,="" state="" or="" local="" agencies="" that="" could="" be="" involved="" in="" such="" a="" process="" is="" unnecessary="" since="" situations="" differ="" from="" pha="" to="" pha.="" however,="" if="" units="" have="" been="" determined="" to="" be="" in="" such="" a="" state="" as="" to="" be="" designated="" uninhabitable,="" hud="" strongly="" recommends="" that="" phas="" at="" least="" inspect="" these="" units="" annually="" to="" verify="" the="" structural="" integrity="" of="" the="" building.="" this="" is="" particularly="" important="" for="" scattered="" site="" units="" and="" long-term="" vacant="" buildings.="" in="" addition,="" a="" cgp="" pha="" has="" to="" address="" the="" physical="" needs="" of="" all="" of="" its="" developments="" in="" its="" comprehensive="" plan.="" component="" #1,="" annual="" inspection="" of="" units="" comment:="" three="" comments="" stated="" that="" hqs="" should="" remain="" as="" the="" standard,="" with="" the="" pha="" expanding="" on="" the="" hqs="" requirements="" to="" include="" local="" code="" items.="" otherwise,="" hud="" would="" need="" knowledge="" of="" many="" different="" local="" codes="" to="" properly="" assess="" pha="" actions.="" the="" commenters="" added="" that="" it="" would="" be="" necessary="" to="" adapt="" hqs="" at="" the="" highest="" local="" standard="" or="" a="" pha="" would="" have="" to="" modify="" inspection="" standards="" based="" on="" where="" the="" unit="" was="" located.="" response:="" the="" department="" requires="" that="" hqs="" be="" used="" as="" the="" inspection="" criteria="" for="" phas="" only="" if="" there="" are="" no="" local="" occupancy="" and/="" or="" housing="" codes="" that="" cover="" a="" pha's="" jurisdiction.="" the="" phmap="" handbook="" 7460.5="" requires="" that="" a="" pha="" comply="" with="" local="" occupancy="" and/or="" housing="" codes.="" rather="" than="" expand="" on="" the="" hqs="" requirements="" to="" include="" local="" code="" items,="" a="" pha="" should="" expand="" upon="" local="" code="" requirements="" to="" include="" omitted="" hqs="" items.="" if="" a="" pha="" is="" dealing="" with="" more="" than="" one="" local="" occupancy/housing="" code="" within="" its="" jurisdiction,="" the="" pha="" should="" incorporate="" hqs="" items="" into="" the="" local="" occupancy/housing="" inspection="" forms="" for="" each="" locality.="" comment:="" two="" comments="" stated="" that="" incorporating="" maintenance="" long-="" term="" planning="" into="" annual="" inspections="" would="" greatly="" compromise="" the="" ability="" of="" a="" pha="" to="" abate="" common="" problems.="" in="" addition,="" it="" is="" difficult="" to="" determine="" if="" completion="" of="" long-term="" preventive="" maintenance="" functions="" (exterior="" painting,="" etc.)="" would="" be="" included.="" response:="" the="" department="" disagrees="" with="" this="" comment="" and="" believes="" that="" just="" the="" opposite="" is="" likely="" to="" occur.="" a="" pha's="" ability="" to="" abate="" common="" problems="" should="" be="" greater="" when="" a="" pha="" is="" able="" to="" plan="" for="" short-="" term="" maintenance="" needs="" and="" long-term="" modernization="" needs.="" such="" planning="" will="" allow="" a="" pha="" to="" budget="" appropriate="" expenditures="" from="" its="" operating="" budget="" and="" modernization="" program,="" thereby="" avoiding="" possible="" budget="" short="" falls.="" with="" such="" planning="" done="" on="" an="" on-going="" basis,="" a="" pha="" can="" focus="" more="" resources="" on="" day-to-day="" operations="" and="" the="" abatement="" of="" [[page="" 68915]]="" common="" problems.="" in="" addition,="" the="" completion="" of="" long-term="" preventive="" maintenance="" items="" are="" included="" at="" the="" discretion="" of="" each="" pha.="" a="" pha="" may="" decide="" to="" fund="" all="" exterior="" painting="" out="" of="" its="" operating="" budget,="" painting="" ``x''="" amount="" of="" units/buildings="" each="" year="" on="" a="" rotating="" basis.="" or,="" a="" pha="" may="" decide="" to="" include="" 50%="" of="" its="" exterior="" painting="" under="" its="" modernization="" program,="" and="" fund="" the="" exterior="" painting="" of="" the="" remaining="" units="" out="" of="" its="" operating="" budget.="" comment:="" one="" comment="" felt="" that="" the="" proposed="" indicator="" does="" not="" exempt="" occupied="" units="" scheduled="" for="" modernization="" this="" year="" or="" the="" next.="" inspection="" of="" occupied="" units="" scheduled="" for="" imminent="" modernization="" should="" be="" limited="" to="" an="" inspection="" of="" emergency="" conditions="" only.="" it="" seems="" wasteful="" to="" take="" the="" time="" to="" write="" up="" deficiencies="" on="" a="" unit="" when="" specifications="" have="" been="" developed="" and="" possibly="" even="" bid="" for="" the="" modernization="" of="" the="" unit.="" one="" comment="" stated="" that="" the="" term="" ``referred="" the="" deficiency="" to="" the="" current="" year's="" or="" next="" year's="" modernization="" program''="" is="" an="" incredible="" loophole="" simply="" permitting="" the="" existence="" of="" non-compliant="" conditions.="" response:="" this="" indicator="" does="" exempt="" a="" vacant="" unit="" undergoing="" modernization="" as="" stated="" in="" the="" preamble="" language="" and="" the="" proposed="" rule.="" the="" department="" has="" added="" new="" language="" to="" the="" new="" rule="" in="" order="" to="" clarify="" the="" circumstances="" under="" which="" work="" orders="" can="" be="" deferred="" to="" modernization.="" as="" stated="" in="" the="" definition="" for="" this="" term,="" only="" similar="" items="" can="" be="" deferred="" by="" a="" pha="" to="" be="" completed="" in="" the="" current="" year's="" modernization="" program,="" or="" to="" be="" completed="" in="" next="" year's="" modernization="" program="" if="" there="" are="" less="" than="" three="" months="" remaining="" before="" the="" end="" of="" the="" pha="" fiscal="" year="" when="" the="" work="" order="" was="" generated.="" however,="" before="" an="" item="" is="" deferred="" to="" modernization,="" it="" should="" be="" (1)="" similar="" to="" a="" work="" item="" that="" is="" in="" the="" current="" year's="" modernization="" program,="" (2)="" similar="" to="" a="" work="" item="" that="" is="" in="" next="" year's="" modernization="" program,="" or="" (3)="" similar="" to="" deficiencies="" noted="" in="" other="" units/buildings="" and="" the="" correction="" of="" such="" deficiencies="" has="" not="" been="" included="" in="" the="" current="" or="" next="" year's="" modernization="" program,="" but="" the="" current="" or="" next="" year's="" annual="" statement="" is="" revised="" to="" include="" the="" new="" work="" item.="" if="" the="" similar="" deficiency="" that="" was="" deferred="" for="" modernization="" is="" not="" corrected="" in="" the="" current="" or="" next="" year's="" modernization="" program,="" the="" work="" item="" may="" no="" longer="" be="" exempted="" from="" the="" calculation="" of="" this="" indicator="" and="" the="" deficiency="" reverts="" back="" to="" being="" tracked="" through="" the="" work="" order="" system.="" occupied="" units="" shall="" be="" inspected,="" particularly="" for="" detection="" and="" repair="" of="" emergency="" conditions,="" as="" long="" as="" they="" remain="" occupied.="" non-="" emergency="" work="" orders="" generated="" during="" inspection="" of="" occupied="" units="" scheduled="" for="" imminent="" modernization="" (this="" year="" or="" the="" next)="" should="" be="" classified="" as="" deferred="" for="" modernization="" and="" not="" included="" in="" the="" computation="" of="" this="" indicator="" as="" long="" as="" the="" identified="" deficiencies="" are="" part="" of="" the="" work="" items="" included="" in="" the="" modernization="" project.="" comment:="" one="" comment="" stated="" that="" it="" is="" not="" clear="" whether="" preventive="" maintenance="" items,="" such="" as="" repairs="" to="" stoves="" and="" plumbing,="" etc.,="" would="" be="" recorded="" or="" tracked.="" how="" are="" they="" recorded="" if="" completed="" during="" the="" inspection?="" response:="" all="" preventive="" maintenance="" items="" should="" be="" recorded="" and="" tracked="" through="" the="" work="" order="" tracking="" system.="" this="" information="" will="" enable="" a="" pha="" to="" plan="" for="" short-="" and="" long-term="" maintenance="" needs.="" if="" a="" minor="" deficiency="" is="" corrected="" during="" an="" inspection,="" the="" pha="" should="" not="" retroactively="" issue="" a="" work="" order="" for="" that="" work="" item.="" a="" minor="" deficiency="" that="" is="" corrected="" during="" the="" inspection="" is="" no="" longer="" a="" deficiency,="" and="" there="" is="" no="" need="" to="" issue="" a="" work="" order.="" however,="" any="" parts="" used="" to="" complete="" minor="" repairs="" made="" during="" the="" course="" of="" an="" annual="" inspection="" should="" be="" tracked="" through="" inventory="" control.="" comment:="" one="" comment="" was="" concerned="" that="" many="" phas="" may="" misinterpret="" the="" indicator="" as="" suggesting="" that="" a="" pha="" must="" use="" only="" local="" housing/="" occupancy="" code="" or="" hqs,="" and="" nothing="" else.="" response:="" a="" pha="" should="" use="" local="" housing="" and/or="" occupancy="" codes,="" and="" should="" expand="" upon="" local="" code="" requirements="" to="" include="" omitted="" hqs="" items,="" when="" applicable.="" in="" cases="" where="" there="" is="" no="" local="" occupancy="" and/="" or="" housing="" code="" or="" the="" local="" code="" is="" less="" stringent="" than="" hqs,="" the="" pha="" should="" use="" hqs.="" component="" #2,="" annual="" inspection="" of="" systems="" comment:="" one="" comment="" stated="" that="" there="" is="" no="" definition="" provided="" for="" the="" term="" ``maintenance="" plan''="" and="" yet="" it="" is="" used="" as="" a="" factor="" of="" measure="" for="" indicator="" #5,="" component="" #2.="" the="" use="" of="" this="" term="" appears="" to="" be="" with="" an="" appropriate="" intent="" to="" allow="" for="" the="" fact="" that="" a="" major="" system="" that="" has="" been="" inspected="" and="" documented="" to="" be="" in="" good="" repair="" does="" not="" require="" another="" inspection="" in="" the="" following="" year.="" an="" effective="" pha="" systems="" maintenance="" plan="" could="" appropriately="" reschedule="" the="" system="" for="" inspection="" three="" years="" later.="" if="" the="" system="" is="" new,="" after="" the="" first="" year="" of="" operation,="" testing="" it="" might="" not="" need="" to="" be="" rescheduled="" until="" five="" years="" later.="" a="" maintenance="" plan="" would="" document="" the="" performance="" of="" appropriately="" scheduled="" preventive="" maintenance="" on="" systems.="" only="" safety="" systems="" and="" those="" required="" to="" be="" inspected="" and="" certified="" annually="" by="" state="" law="" for="" safety="" reasons="" should="" require="" annual="" inspection.="" if="" the="" intent="" of="" this="" provision="" is="" the="" use="" of="" the="" term="" ``maintenance="" plan''="" is="" to="" allow="" for="" this="" fact,="" it="" should="" be="" clearly="" stated="" as="" such.="" otherwise,="" different="" field="" offices="" will="" be="" left="" to="" subjectively="" interpret="" the="" meaning="" of="" this="" term="" and="" its="" applicability="" in="" the="" determination="" of="" pha="" performance="" under="" indicator="" #5.="" response:="" the="" department="" agrees="" that="" the="" term="" ``maintenance="" plan''="" should="" be="" defined.="" it="" is="" defined="" in="" the="" rule="" as="" a="" comprehensive="" annual="" plan="" of="" a="" pha's="" maintenance="" operation="" by="" providing="" the="" total="" year's="" estimated="" work="" schedule="" supported="" by="" a="" staffing="" plan,="" contract="" schedule,="" materials="" and="" procurement="" plan,="" training,="" and="" approved="" budget.="" the="" plan="" should="" establish="" a="" strategy="" for="" meeting="" the="" goals="" and="" time="" frames="" of="" the="" facilities="" management="" planning="" and="" execution,="" capital="" improvements,="" utilities,="" and="" energy="" conservation="" activities.="" the="" department="" disagrees="" with="" the="" rest="" of="" the="" comment="" because="" this="" component="" examines="" whether="" a="" pha="" inspects="" all="" of="" its="" systems="" at="" least="" annually="" to="" ensure="" the="" viability="" of="" the="" units/buildings="" and="" the="" provision="" of="" safe,="" sanitary="" and="" decent="" housing.="" section="" 901.35="" indicator="" #6,="" financial="" management="" component="" #1,="" cash="" available="" comment:="" eight="" comments="" specifically="" approved="" of="" combining="" the="" cash="" and="" energy/utility="" consumption="" components;="" three="" more="" comments="" specifically="" approved="" of="" the="" cash="" available="" component.="" response:="" the="" comments="" are="" noted="" by="" the="" department.="" comment:="" three="" comments="" objected="" to="" the="" combination="" of="" cash="" available="" with="" energy/utility="" consumption="" and/or="" to="" the="" use="" of="" one="" or="" the="" other="" as="" a="" measure="" of="" financial="" management.="" commenters="" stated="" that="" energy="" is="" not="" a="" measure="" of="" financial="" management="" and="" that="" available="" cash="" is="" not="" a="" measure="" of="" energy="" management.="" response:="" the="" department="" disagrees.="" although="" the="" amount="" of="" cash="" on="" hand="" is="" not="" by="" itself="" a="" measure="" of="" energy="" management,="" efficiencies="" in="" operation="" and="" in="" energy/utility="" consumption="" will="" reduce="" expenditures="" and="" thereby="" affect="" cash="" available.="" [[page="" 68916]]="" comment:="" nine="" comments="" stated="" that="" the="" indicator="" should="" include="" other="" factors="" such="" as="" ratio="" of="" reserves="" to="" expenses="" over="" a="" period="" of="" time,="" an="" assessment="" of="" audit="" findings,="" average="" monthly="" cash="" reserves="" instead="" of="" a="" ``snapshot''="" of="" cash="" available="" at="" fiscal="" year="" end,="" ability="" to="" maintain="" expenses="" within="" budget,="" ability="" to="" maintain="" an="" adequate="" reserve="" level="" for="" contingencies,="" or="" that="" the="" existing="" interim="" indicators="" should="" be="" retained.="" response:="" the="" department="" does="" not="" disagree="" that="" there="" are="" a="" number="" of="" additional="" factors="" that="" could="" be="" measured="" as="" an="" indication="" of="" good="" financial="" management.="" however,="" the="" review="" of="" existing="" phmap="" procedures="" was="" done="" with="" the="" intent="" of="" streamlining="" and="" of="" limiting="" the="" number="" and="" content="" of="" the="" indicators="" to="" the="" basic="" information="" that="" could="" be="" used="" for="" performance="" measurement.="" this="" review="" process="" intentionally="" resulted="" in="" fewer,="" not="" more,="" indicator="" measurements.="" maintaining="" a="" minimum="" level="" of="" liquidity="" was="" determined="" to="" be="" a="" basic="" requirement="" for="" financial="" management="" that="" should="" be="" an="" essential="" part="" of="" performance="" measurement.="" comment:="" nine="" comments="" expressed="" concern="" that="" the="" terms="" ``cash="" available,''="" ``cash="" reserves,''="" and="" ``routine="" operating="" expenses''="" were="" not="" adequately="" defined="" and="" would="" lead="" to="" inconsistent="" reporting="" on="" the="" part="" of="" phas.="" one="" comment="" stated="" that="" the="" sample="" worksheet="" should="" be="" revised="" to="" be="" computer="" friendly.="" one="" comment="" stated="" that="" the="" ``analysis="" of="" general="" fund="" cash="" balance''="" should="" be="" used="" in="" lieu="" of="" the="" sample="" worksheet.="" one="" comment="" stated="" that="" the="" sample="" worksheet="" should="" match="" the="" information="" on="" form="" hud-52595,="" balance="" sheet,="" because="" it="" would="" be="" difficult="" for="" small="" phas="" to="" identify="" accounts="" receivable/payable="" that="" would="" be="" active="" within="" 30="" days.="" response:="" the="" department="" notes="" that="" the="" sample="" worksheet="" is="" intended="" as="" guidance="" to="" the="" pha="" in="" determining="" the="" cash="" available="" to="" meet="" routine="" operating="" expenditures,="" but="" its="" use="" is="" optional.="" ``routine="" operating="" expenses''="" are="" identified="" on="" the="" worksheet="" as="" being="" those="" reported="" on="" form="" hud-52599,="" statement="" of="" operating="" receipts="" and="" expenditures,="" line="" 520,="" total="" routine="" expense.="" if="" a="" pha="" experiences="" one-time="" expenditures="" in="" a="" given="" year="" that="" would="" distort="" the="" use="" of="" line="" 520="" information="" for="" the="" indicator,="" the="" pha="" may="" request="" a="" modification.="" if="" phas="" follow="" the="" practice="" of="" aging="" their="" accounts="" receivable/payable,="" determining="" those="" that="" would="" be="" active="" within="" 30="" days="" should="" not="" be="" a="" problem,="" and="" if="" the="" accrual="" information="" is="" immaterial="" to="" the="" computation,="" it="" need="" not="" be="" included.="" the="" use="" of="" information="" directly="" from="" form="" hud-52595,="" balance="" sheet,="" would="" be="" possible="" only="" in="" the="" case="" of="" a="" pha="" with="" no="" programs="" other="" than="" the="" management="" of="" pha-owned="" rental.="" for="" the="" same="" reason,="" the="" department="" does="" not="" think="" that="" the="" ``analysis="" of="" general="" fund="" cash="" balance,''="" which="" is="" based="" on="" form="" hud-52595,="" is="" a="" substitution="" for="" the="" sample="" worksheet="" since="" the="" analysis="" does="" not,="" without="" further="" calculation,="" provide="" the="" user="" with="" the="" amount="" of="" cash="" specifically="" available="" for="" pha-owned="" rental="" operations.="" in="" any="" case,="" the="" sample="" worksheet="" is="" optional="" and="" a="" pha="" may="" choose="" to="" develop="" its="" own="" format="" and="" procedures,="" as="" long="" as="" its="" results="" are="" the="" same="" as="" would="" be="" derived="" by="" utilizing="" the="" optional="" worksheet.="" comment:="" five="" comments="" stated="" that="" the="" indicator="" penalizes="" phas="" for="" using="" reserve="" dollars="" to="" operate,="" and="" two="" comments="" expressed="" concern="" that="" small="" phas="" will="" never="" be="" able="" to="" accumulate="" sufficient="" cash="" to="" score="" well="" on="" the="" indicator.="" response:="" the="" department="" recognizes="" that="" phas="" must="" make="" choices="" in="" the="" use="" of="" funds="" and="" that="" there="" are="" circumstances="" that="" may="" make="" it="" difficult="" to="" achieve="" or="" to="" sustain="" a="" given="" level="" of="" cash,="" or="" that="" may="" reduce="" available="" cash="" on="" a="" short="" term="" basis.="" however,="" hud="" also="" recognizes="" that="" in="" order="" to="" function="" in="" a="" financially="" responsible="" manner="" a="" pha="" must="" have="" a="" minimum="" amount="" of="" cash="" on="" hand="" to="" cover="" day-="" to-day="" routine="" expenditures.="" available="" cash="" to="" cover="" one="" month's="" routine="" expenditures="" would="" be="" 8.33%="" of="" total="" routine="" expenditures;="" a="" pha="" does="" not="" fail="" this="" indicator="" unless="" the="" percentage="" is="" less="" than="" 5%.="" in="" order="" to="" meet="" its="" monitoring="" responsibilities,="" it="" is="" important="" that="" the="" department="" take="" note="" of="" such="" phas="" and="" of="" the="" circumstances="" that="" are="" affecting="" their="" cash="" flow="" situation.="" comment:="" three="" comments="" asked="" if="" the="" cash="" available="" calculation="" was="" to="" be="" adjusted="" for="" subsidy="" proration="" or="" year="" end="" adjustments="" for="" subsidy.="" response:="" the="" sample="" worksheet="" for="" indicator="" #6="" has="" provision="" for="" including="" year="" end="" adjustments="" for="" subsidy="" in="" determining="" cash="" availability.="" the="" difference="" between="" subsidy="" eligibility="" and="" the="" prorated="" subsidy="" amount="" is="" not="" included="" because="" the="" amount="" of="" the="" difference="" will="" not="" be="" realized="" in="" cash="" payments.="" comment:="" one="" comment="" stated="" that="" percentages="" should="" be="" applied="" to="" phas="" of="" all="" sizes="" since="" $3="" million="" in="" cash="" for="" a="" large="" pha="" might="" not="" be="" enough="" to="" cover="" unexpected="" financial="" difficulties.="" one="" comment="" stated="" that="" dollars,="" not="" percentages,="" should="" be="" applied="" to="" all="" phas.="" response:="" the="" indicator="" measures="" cash="" available="" to="" cover="" routine="" expenditures,="" not="" unexpected="" cash="" needs="" for="" emergencies.="" the="" new="" indicator="" is="" measured="" in="" percentages="" because="" a="" percent="" gives="" a="" more="" flexible="" basis="" for="" evaluation="" than="" a="" flat="" dollar="" amount.="" comment:="" one="" comment="" expressed="" concern="" that="" the="" indicator="" would="" encourage="" phas="" to="" exercise="" poor="" financial="" judgment="" by="" deferring="" needed="" maintenance="" expenditures="" in="" order="" to="" maintain="" a="" large="" cash="" balance="" and="" score="" well="" on="" indicator="" #6.="" response:="" the="" department="" disagrees.="" indicator="" #6="" is="" but="" one="" indicator="" in="" a="" group="" of="" indicators="" intended="" to="" measure="" pha="" performance;="" two="" other="" indicators="" (#4="" and="" #5)="" measure="" the="" pha's="" performance="" in="" the="" area="" of="" maintenance.="" comment:="" one="" comment="" stated="" that="" the="" available="" cash="" should="" take="" into="" consideration="" funds="" that="" might="" be="" available="" from="" local="" government="" to="" help="" the="" pha.="" response:="" the="" department="" disagrees="" that="" the="" pha="" potential="" to="" tap="" the="" local="" government="" for="" funds="" should="" be="" automatically="" included="" in="" determining="" the="" amount="" of="" cash="" available.="" unless="" the="" local="" government="" is="" legally="" required="" to="" subsidize="" the="" operation="" of="" the="" pha,="" there="" is="" no="" assurance="" that="" the="" local="" government's="" willingness="" or="" ability="" to="" provide="" funds="" to="" the="" pha="" will="" continue="" in="" the="" future.="" component="" #2,="" energy="" consumption="" in="" the="" proposed="" rule,="" the="" department="" indicated="" particular="" interest="" in="" receiving="" comments="" from="" phas="" as="" to="" whether="" they="" preferred="" option="" a,="" option="" b="" or="" the="" choice="" of="" being="" able="" to="" use="" either="" option="" for="" their="" phmap="" certification="" and="" assessment.="" option="" a="" compares="" energy/utility="" consumption="" expenses="" to="" the="" average="" of="" those="" computed="" on="" a="" three="" year="" rolling="" base="" and="" option="" b="" measures="" whether="" or="" not="" a="" pha="" has="" conducted="" an="" energy="" audit="" and="" implemented="" the="" improvements="" recommended="" as="" a="" result="" of="" the="" energy="" audit.="" comment:="" nine="" comments="" preferred="" a="" choice="" of="" either="" option="" a="" or="" option="" b.="" four="" comments="" stated="" a="" preference="" for="" option="" b.="" response:="" the="" department="" adopts="" the="" preferred="" approach="" of="" the="" majority="" of="" comments,="" which="" offers="" phas="" required="" to="" be="" assessed="" on="" this="" component="" a="" choice="" of="" either="" option="" a="" or="" option="" b.="" comment:="" five="" comments="" stated="" that="" the="" energy/utilities="" component,="" option="" a,="" should="" be="" based="" on="" consumption="" instead="" of="" dollars="" expended="" since="" phas="" don't="" have="" any="" control="" over="" the="" utility="" rate="" charged="" by="" local="" utility="" companies.="" [[page="" 68917]]="" response:="" the="" department="" agrees="" and="" the="" proposed="" phmap="" energy/="" utilities="" component,="" option="" a,="" does="" measure="" energy/utilities="" consumption="" rather="" than="" dollars.="" the="" sample="" worksheet="" for="" computing="" option="" a="" compares="" a="" pha's="" current="" consumption="" to="" its="" rolling="" base="" period="" consumption.="" in="" comparing="" line="" 17="" to="" line="" 13="" of="" form="" hud-52722b,="" adjustment="" for="" utilities="" consumption="" and="" rates,="" the="" rolling="" base="" period="" consumption="" is="" adjusted="" prior="" to="" the="" comparison="" with="" the="" current="" year="" to="" reflect="" the="" current="" year's="" rates.="" since="" the="" same="" rates="" are="" used,="" the="" only="" difference="" in="" the="" amounts="" compared="" is="" due="" to="" consumption.="" the="" wording="" of="" the="" proposed="" rule="" regarding="" option="" a="" in="" the="" preamble="" may="" have="" been="" confusing="" in="" this="" regard="" and="" this="" option="" has="" been="" revised="" to="" refer="" to="" energy/utility="" consumption="" expenses.="" comment:="" three="" comments="" stated="" that="" the="" upgrading="" of="" equipment,="" e.g.,="" the="" addition="" of="" security="" lighting,="" affects="" consumption="" and="" that="" phas="" should="" not="" be="" penalized.="" one="" comment="" stated="" that="" phas="" should="" not="" be="" penalized="" for="" positive="" initiatives,="" such="" as="" increased="" utilization="" by="" resident="" initiatives="" and="" family="" self-sufficiency="" participants,="" that="" result="" in="" increased="" consumption="" for="" office="" buildings.="" response:="" the="" department="" agrees="" that="" a="" pha="" should="" not="" be="" penalized="" for="" increased="" energy/utility="" consumption="" due="" to="" upgrades="" of="" equipment="" such="" as="" adding="" security="" lighting="" for="" safety,="" etc.,="" and="" resident="" initiatives="" programs.="" therefore,="" with="" sufficient="" supporting="" documentation,="" a="" pha="" may="" request="" a="" modification="" to="" exempt="" the="" excess="" energy/utility="" consumption="" from="" the="" calculation="" of="" the="" energy/utility="" component,="" option="" a.="" the="" department="" anticipates="" the="" issuance="" of="" a="" revised="" phmap="" handbook="" 7460.5="" subsequent="" to="" the="" effective="" date="" of="" the="" new="" rule.="" examples="" of="" eligible="" modification="" requests="" and="" required="" supporting="" documentation="" will="" be="" included="" in="" the="" handbook.="" comment:="" one="" comment="" stated="" that="" the="" component="" should="" be="" named="" ``utility="" consumption''="" rather="" than="" ``energy="" consumption''="" since="" water="" and="" sewer="" charges="" are="" a="" utility="" expense="" for="" phas,="" not="" an="" energy="" source.="" response:="" the="" name="" of="" the="" component="" was,="" in="" fact,="" changed="" from="" ``energy''="" to="" ``energy/utility''="" in="" the="" proposed="" rule="" to="" reflect="" the="" fact="" that="" water="" and="" sewer="" charges,="" which="" are="" now="" included="" in="" the="" consumption="" measurement,="" are,="" as="" the="" comment="" states,="" a="" utility="" expense="" for="" phas,="" not="" an="" energy="" source.="" this="" component="" is="" referred="" to="" as="" ``energy="" consumption''="" in="" the="" new="" rule,="" with="" option="" a="" referred="" to="" as="" ``energy/utility="" consumption="" expenses.''="" comment:="" one="" comment="" stated="" that="" the="" cost="" of="" utilities,="" in="" comparison="" with="" other="" operating="" expenses,="" is="" not="" sufficient="" to="" justify="" a="" phmap="" indicator="" when="" other="" expenses="" are="" not="" measured="" at="" all="" under="" the="" phmap.="" response:="" the="" department="" disagrees.="" currently,="" pha="" utility="" expenses="" exceed="" $1="" billion="" annually="" and="" represent="" over="" one-quarter="" of="" pha="" operating="" expenses.="" it="" is="" clear="" that="" the="" cost="" of="" utilities="" is="" a="" major="" operating="" expense="" that="" must="" be="" addressed="" on="" an="" on-going="" basis="" by="" management.="" congress="" recognized="" the="" importance="" of="" this="" issue="" by="" including="" it="" in="" the="" statute="" as="" one="" of="" the="" mandatory="" indicators.="" therefore,="" the="" cost="" of="" utilities="" must="" be="" included="" in="" the="" phmap="" assessment.="" comment:="" one="" comment="" supported="" the="" elimination="" of="" measuring="" energy/="" utility="" consumption="" for="" those="" phas="" scoring="" c="" or="" higher="" for="" component="" #1,="" but="" stated="" that="" the="" energy="" audit="" rule="" at="" sec.="" 905.302="" should="" be="" revised="" to="" require="" an="" audit="" every="" five="" years="" only="" for="" phas="" that="" score="" lower="" than="" c.="" otherwise,="" the="" comment="" states,="" comparing="" energy="" and="" utility="" cost="" to="" the="" average="" of="" a="" three="" year="" rolling="" base="" should="" be="" eliminated="" as="" unnecessary.="" response:="" the="" department="" disagrees.="" the="" department="" addressed="" this="" concern="" regarding="" audits="" for="" standard="" and="" high="" performers="" at="" the="" time="" it="" issued="" the="" final="" rule="" at="" 24="" cfr="" part="" 965="" earlier="" this="" year.="" at="" that="" time,="" it="" was="" noted="" that="" pha="" utility="" expenses="" exceed="" $1="" billion="" annually,="" and="" the="" appropriation="" for="" operating="" subsidy="" for="" fiscal="" years="" 1994="" and="" 1995="" was="" sufficient="" to="" fund="" phas="" at="" 95%="" and="" 96%,="" respectively.="" in="" fiscal="" year="" 1996,="" the="" appropriation="" for="" operating="" subsidy="" was="" only="" sufficient="" to="" fund="" phas="" at="" 89%.="" it="" is="" not="" guaranteed="" that="" future="" appropriations="" will="" result="" in="" a="" higher="" percentage="" of="" funding.="" hence,="" the="" department="" must="" ensure="" that="" phas="" conduct="" audits="" as="" one="" means="" of="" holding="" down="" operating="" costs,="" including="" the="" cost="" of="" utilities,="" and="" ensuring="" that="" the="" limited="" funds="" available="" for="" operations="" are="" used="" as="" efficiently="" as="" possible.="" hud's="" office="" of="" inspector="" general="" (oig)="" recently="" completed="" an="" audit="" report="" entitled="" ``review="" of="" opportunities="" to="" reduce="" utility="" costs="" at="" public="" housing="" authorities.''="" the="" oig="" report="" was="" based="" on="" visits="" to="" approximately="" 63="" phas="" that="" manage="" 41%="" of="" the="" 1.3="" million="" public="" housing="" units="" nationally.="" the="" oig="" indicated="" that,="" despite="" past="" efforts,="" opportunities="" for="" reducing="" utility="" costs="" continue="" to="" exist="" and="" are="" cost="" effective="" in="" many="" instances="" due="" to="" ongoing="" improvements="" in="" technology.="" pha="" managers="" need="" to="" be="" aware="" of,="" evaluate,="" and="" give="" maximum="" consideration="" to="" these="" ongoing="" and="" new="" opportunities="" when="" managing="" their="" utility="" costs.="" the="" oig="" further="" states,="" that,="" because="" of="" improvements="" in="" technology,="" managing="" utilities="" is="" a="" continuous="" process="" that="" requires="" an="" ongoing="" energy="" management="" program.="" comment:="" one="" comment="" stated="" that="" the="" rule="" needs="" a="" definition="" of="" ``energy="" audit''="" and="" ``cost="" effective''="" so="" that="" phas="" know="" how="" to="" determine="" what="" is="" ``cost="" effective''="" and="" what="" is="" not.="" in="" addition,="" the="" comment="" stated="" that="" the="" rule="" should="" also="" cross-reference="" the="" location="" of="" any="" applicable="" hud="" guidance="" on="" the="" matter.="" response:="" the="" terms="" referenced="" by="" the="" commenter="" have="" previously="" been="" defined="" at="" 24="" cfr="" 965.303,="" pha-owned="" or="" leased="" projects-="" maintenance="" and="" operation.="" however,="" as="" a="" result="" of="" president="" clinton's="" regulatory="" reinvention="" efforts="" and="" executive="" order="" 12866,="" regulatory="" planning="" and="" review,="" issued="" by="" president="" clinton="" on="" september="" 30,="" 1993,="" hud="" commenced="" a="" comprehensive="" review="" of="" all="" of="" its="" regulations="" to="" determine="" which="" regulations="" could="" be="" eliminated="" and="" streamlined.="" one="" such="" review="" was="" with="" respect="" to="" 24="" cfr="" part="" 965.="" the="" department="" favored="" providing="" phas="" with="" more="" flexibility="" to="" meet="" local="" custom="" and="" eliminated="" those="" definitions.="" the="" department="" still="" believes="" that="" those="" definitions="" still="" represent="" a="" reasonable="" description="" for="" those="" terms="" and="" may="" be="" used="" by="" phas.="" the="" revised="" phmap="" handbook="" 7460.5="" will="" include="" cross-references="" to="" applicable="" hud="" issuances="" as="" appropriate.="" comment:="" one="" comment="" stated="" that="" the="" energy/utility="" component="" could="" be="" greatly="" improved="" by="" lowering="" the="" standards="" and="" recommended="" adopting="" a="" standard="" of="" a="" 10%="" increase="" for="" a="" grade="" c="" level="" performance="" and="" a="" 4%-="" 5%="" increase="" for="" a="" grade="" a.="" response:="" the="" department="" believes="" that="" the="" current="" percentage="" ranges="" are="" equitable="" and="" that="" a="" choice="" of="" using="" option="" a="" or="" option="" b,="" which="" the="" department="" has="" decided="" to="" adopt,="" offers="" phas="" much="" greater="" latitude="" with="" regard="" to="" the="" energy/utilities="" component.="" comment:="" one="" comment="" stated="" a="" preference="" to="" let="" option="" a="" stand="" as="" a="" separate="" indicator="" as="" it="" does="" now="" since="" option="" b="" (energy="" audits)="" is="" not="" funded="" by="" the="" department.="" response:="" the="" department="" disagrees="" with="" this="" rationale="" on="" the="" basis="" of="" its="" belief="" that="" a="" sound="" energy="" management="" program="" is="" fundamental="" to="" good="" property="" management="" and="" that="" energy="" audits="" are="" a="" cost="" of="" doing="" business="" that="" should="" be="" included="" as="" a="" part="" of="" an="" agency's="" budget.="" [[page="" 68918]]="" comment:="" one="" comment="" stated="" that,="" for="" purposes="" of="" phmap,="" option="" a="" should="" be="" modified="" to="" reinstate="" the="" hdd="" factor.="" one="" comment="" stated="" that="" if="" hdds="" are="" not="" considered="" for="" phmap,="" the="" rolling="" base="" period="" should="" be="" extended="" so="" as="" not="" to="" distort="" energy="" expenditure="" trend="" data="" due="" to="" abnormal="" weather.="" one="" comment="" stated="" that="" the="" elimination="" of="" the="" hdd="" factor="" no="" longer="" offers="" adjustments="" for="" unusually="" harsh="" winters.="" response:="" the="" department="" agrees="" that="" hdds="" should="" be="" considered="" for="" purposes="" of="" phmap="" if="" an="" hdd="" adjustment="" would="" significantly="" affect="" a="" pha's="" assessment.="" for="" purposes="" of="" phmap,="" therefore,="" a="" pha="" may="" request="" a="" modification="" to="" adjust="" consumption="" using="" an="" hdd="" adjustment="" for="" space="" heating="" utilities="" provided="" that="" the="" same="" data="" source="" is="" used="" for="" the="" current="" year="" as="" well="" as="" the="" three="" year="" rolling="" base="" period.="" the="" hdd="" factors="" used="" by="" a="" pha="" are="" subject="" to="" hud="" state/area="" office="" approval.="" comment:="" one="" comment="" recommended="" the="" elimination="" of="" option="" a="" due="" to="" conditions="" beyond="" the="" control="" of="" the="" pha="" (e.g.,="" rate="" increases)="" or="" positive="" initiatives="" (e.g.,="" increased="" resident="" programs="" that="" have="" resulted="" in="" increased="" consumption="" to="" provide="" facilities="" for="" these="" activities).="" response:="" as="" previously="" discussed,="" option="" a="" measures="" only="" consumption,="" not="" rate,="" increases="" and="" increased="" consumption="" due="" to="" special="" circumstances,="" e.g.,="" resident="" initiatives="" programs,="" will="" be="" addressed="" in="" a="" revised="" phmap="" handbook="" 7460.5.="" comment:="" one="" comment="" proposed="" that="" option="" b="" be="" modified="" to="" permit="" a="" passing="" grade="" for="" phas="" that="" have="" conducted="" an="" energy="" audit="" and="" have="" an="" implementation="" plan="" for="" all="" items="" in="" the="" audit="" in="" that="" it="" may="" not="" be="" feasible="" to="" implement="" all="" recommendations="" given="" insufficient="" funding="" and="" other="" priorities="" relating="" to="" health="" and="" safety.="" response:="" the="" department="" agrees.="" a="" pha="" may="" achieve="" a="" grade="" c="" under="" option="" b="" if="" it="" has="" completed="" the="" energy="" audit,="" developed="" an="" implementation="" plan="" and="" is="" on="" schedule="" with="" its="" implementation="" schedule,="" based="" on="" available="" funds.="" the="" implementation="" plan="" should="" identify="" at="" least="" the="" items="" from="" the="" audit,="" the="" estimated="" cost,="" the="" planned="" funding="" source="" (e.g.,="" funds="" from="" 1998="" operating="" budget,="" 1998="" cgp,="" etc.)="" and="" the="" anticipated="" date="" of="" completion="" for="" each="" item.="" the="" department="" has="" changed="" the="" language="" in="" the="" new="" rule="" to="" reflect="" this="" comment.="" comment:="" one="" comment="" expresses="" concern="" that="" at="" the="" time="" of="" a="" phmap="" self-certification,="" an="" audit="" report="" may="" have="" just="" been="" issued="" or="" may="" be="" five="" years="" old.="" the="" comment="" states="" that="" this="" would="" give="" some="" phas="" an="" advantage="" and="" force="" others="" into="" an="" f="" grade.="" the="" comment="" also="" questions="" whether="" a="" pha="" should="" implement="" all="" cost="" effective="" recommendations,="" e.g.,="" it="" may="" be="" cost-effective="" to="" use="" gas="" appliances="" rather="" than="" electric,="" but="" could="" create="" a="" carbon="" monoxide="" danger="" in="" units="" of="" a="" certain="" design.="" other="" recommendations="" may="" be="" cost-effective="" over="" a="" very="" long="" payback="" period="" but="" there="" may="" be="" higher="" priority="" needs.="" the="" comment="" recommends="" that="" option="" b="" refer="" to="" an="" energy="" audit="" completed="" at="" least="" two="" years="" earlier="" and="" implementation="" of="" all="" recommendations="" with="" a="" payback="" period="" of="" five="" years="" or="" less="" unless="" the="" pha="" has="" established="" good="" cause="" for="" not="" implementing="" them.="" response:="" the="" comment="" lacks="" specificity="" as="" to="" exactly="" how="" the="" commenter="" believes="" that="" the="" existence="" of="" an="" audit="" just="" issued="" or="" which="" may="" be="" five="" years="" old="" will="" give="" any="" pha="" an="" advantage.="" not="" all="" phas="" are="" going="" to="" do="" audits="" at="" the="" same="" time,="" nor="" would="" the="" department="" expect="" them="" to.="" as="" such,="" some="" phas="" will="" be="" completing="" work="" from="" a="" previous="" audit="" while="" other="" phas="" are="" planning="" new="" work="" from="" a="" recently="" completed="" audit.="" the="" department="" does="" not="" have="" a="" problem="" with="" this="" sequence="" as="" it="" expects="" energy="" management="" to="" be="" a="" constant,="" ongoing="" and="" evolutionary="" process.="" therefore,="" hud="" has="" determined="" not="" to="" revise="" option="" b="" to="" refer="" to="" an="" energy="" audit="" completed="" at="" least="" two="" years="" earlier,="" and="" not="" to="" adopt="" the="" suggestion="" that="" phas="" implement="" all="" recommendations="" with="" a="" payback="" period="" of="" five="" years="" or="" less="" unless="" the="" pha="" has="" established="" good="" cause="" for="" not="" implementing="" them.="" the="" department="" has="" no="" problem="" with="" eliminating="" an="" otherwise="" cost="" effective="" energy="" conservation="" measure="" (ecm)="" if="" the="" existing="" design="" would="" render="" the="" measure="" hazardous.="" issues="" such="" as="" this="" should="" be="" a="" consideration="" during="" the="" development="" of="" the="" audit="" itself.="" at="" that="" point,="" consideration="" would="" have="" to="" be="" given="" to="" the="" cost="" of="" work="" necessary="" to="" make="" the="" ecm="" safe.="" if="" all="" costs="" are="" considered,="" including="" the="" additional="" hazard,="" the="" ecm="" would="" likely="" not="" be="" cost="" effective.="" the="" department="" believes="" that="" a="" two="" year="" audit="" period="" is="" excessively="" short="" and="" unnecessarily="" burdensome="" on="" phas,="" and="" has="" included="" in="" this="" component="" the="" existing="" five="" year="" frequency="" contained="" in="" 24="" cfr="" part="" 965.="" as="" noted="" above,="" during="" hud's="" streamlining="" process="" of="" 24="" cfr="" part="" 965,="" the="" definition="" of="" cost="" effective="" (a="" pay="" back="" period="" of="" 15="" years="" or="" less)="" was="" eliminated.="" hud="" favors="" giving="" phas="" the="" flexibility="" to="" determine="" what="" is="" cost="" effective.="" therefore,="" hud="" will="" not="" adopt="" the="" recommendation="" of="" requiring="" incorporation="" of="" emcs="" with="" a="" five="" year="" payback.="" the="" revised="" phmap="" handbook="" 7460.5="" will="" include="" cross-="" references="" to="" applicable="" hud="" issuances,="" as="" appropriate.="" indicator="" #7,="" resident="" services="" and="" community="" building--section="" 901.40="" general="" comments="" comment:="" one="" comment="" stated="" that="" this="" indicator="" combines="" several="" distinct="" elements="" with="" the="" grading="" system,="" requiring="" a="" pha="" to="" score="" an="" a="" on="" each="" element="" in="" order="" to="" score="" an="" a="" on="" the="" indicator.="" the="" comment="" added="" that="" these="" elements="" should="" be="" reorganized="" as="" separate="" components="" within="" the="" indicator="" and="" the="" indicator="" grade="" should="" be="" a="" composite="" of="" the="" component="" scores,="" as="" is="" the="" pattern="" in="" the="" other="" phmap="" indicators.="" response:="" the="" department="" agrees="" with="" the="" comment="" and="" the="" new="" rule="" reflects="" the="" changes.="" the="" new="" resident="" services="" and="" community="" building="" indicator="" is="" now="" subdivided="" into="" four="" equally="" weighted="" components,="" and="" the="" indicator="" or="" the="" individual="" components="" are="" subject="" to="" exclusion="" based="" on="" the="" particular="" circumstances="" of="" each="" pha.="" the="" name="" of="" this="" indicator="" has="" been="" renamed="" ``resident="" services="" and="" community="" building''="" to="" place="" a="" more="" accurate="" emphasis="" upon="" the="" specific="" role="" of="" phas="" for="" these="" functions.="" comment:="" one="" comment="" suggested="" that="" the="" criteria="" for="" this="" indicator="" should="" recognize="" innovations="" in="" program="" design="" or="" implementation="" beyond="" the="" traditional="" grant="" programs="" that="" often="" require="" considerable="" effort="" and="" resourcefulness.="" response:="" the="" department="" agrees="" that="" phas="" should="" promote="" innovation="" in="" the="" implementation="" of="" resident="" programs,="" especially="" if="" this="" results="" in="" linkages="" to="" additional="" resources="" and="" measurable="" results.="" the="" subdivision="" of="" the="" indicator="" into="" four="" components="" will="" provide="" more="" flexibility="" to="" recognize="" this="" type="" of="" innovation="" when="" assessing="" the="" indicator.="" the="" department="" will="" provide="" further="" guidance,="" in="" the="" form="" of="" examples="" of="" activities="" that="" phas="" could="" get="" credit="" under="" each="" one="" of="" the="" components,="" in="" the="" revision="" of="" the="" phmap="" handbook="" 7460.5.="" comment:="" one="" comment="" indicated="" agreement="" with="" the="" reduction="" of="" weight="" factor="" from="" triple="" weight="" but="" suggested="" that="" a="" reduction="" to="" a="" weight="" of="" x1.5="" would="" be="" more="" appropriate.="" response:="" the="" department="" disagrees="" with="" the="" comment.="" a="" weight="" of="" x1="" in="" the="" new="" 100="" point="" system="" represents="" 10%="" of="" the="" score.="" a="" weight="" of="" x3="" in="" the="" current="" 220="" point="" system="" represents="" 13.6%="" of="" [[page="" 68919]]="" the="" score.="" it="" should="" also="" be="" considered="" that="" some="" elements="" of="" the="" current="" resident="" initiatives="" indicator="" are="" now="" covered="" in="" the="" new="" security="" indicator.="" the="" department="" feels="" that="" the="" weight="" assigned="" to="" the="" new="" resident="" services="" and="" community="" building="" indicator="" is="" adequate.="" comment:="" one="" comment="" stated="" support="" for="" a="" phmap="" indicator="" measuring="" resident="" involvement,="" but="" expressed="" disappointment="" with="" the="" language="" of="" the="" proposed="" rule="" and="" indicated="" that="" the="" current="" rule="" gives="" more="" flexibility="" and="" offers="" a="" broader="" base="" for="" resident="" participation.="" another="" comment="" stated="" that="" the="" proposed="" scoring="" aspects="" of="" the="" indicator="" appear="" unrealistic.="" both="" comments="" suggested="" hud="" retain="" the="" current="" indicator.="" response:="" the="" department="" disagrees="" that="" the="" current="" resident="" initiatives="" indicator="" should="" be="" retained,="" without="" changes,="" in="" the="" new="" rule.="" the="" department="" agrees="" that="" the="" indicator="" required="" some="" clarification="" in="" order="" to="" make="" it="" easier="" to="" assess="" and="" score="" and="" the="" new="" rule="" reflects="" those="" changes.="" comment:="" two="" comments="" requested="" that="" the="" term="" ``on-going="" management="" issues''="" be="" defined.="" the="" comments="" argued="" that="" this="" is="" a="" very="" broad="" term="" and="" could="" create="" problems="" if="" phas="" are="" required="" to="" pass="" all="" on-going="" management="" issues="" by="" the="" residents="" because="" business="" delays="" would="" be="" very="" costly.="" the="" comments="" stated="" that="" this="" is="" not="" a="" practical="" requirement="" and="" that="" the="" term="" ``ample="" opportunity''="" is="" too="" vague.="" another="" comment="" requested="" that="" the="" terms:="" ``section="" 3="" program,''="" ``monitors="" progress,''="" ``issues="" reports,''="" ``encouraged="" the="" formation="" of="" a="" resident="" council,''="" ``mechanisms="" to="" ensure="" residents="" have="" ample="" opportunity="" for="" input,''="" and="" ``percent="" of="" goals="" met="" under="" implementation="" plan''="" be="" defined="" in="" the="" rule.="" response:="" many="" of="" these="" terms="" have="" either="" been="" revised,="" or="" the="" term="" is="" defined="" elsewhere="" in="" the="" code="" of="" federal="" regulations.="" the="" department="" will="" add="" any="" applicable="" guidance="" regarding="" such="" terms="" in="" the="" revised="" phmap="" handbook="" 7460.5.="" comment:="" the="" department="" received="" several="" comments="" regarding="" applicability="" of="" this="" indicator="" to="" small="" phas.="" one="" comment="" stated="" that="" it="" is="" impossible="" for="" small="" phas="" to="" organize="" a="" workable="" resident="" initiatives="" program="" with="" part-time="" staff="" and="" that="" the="" indicator="" imposes="" too="" much="" extra="" work="" and="" is="" an="" administrative="" burden="" for="" small="" phas.="" another="" comment="" indicated="" that="" small="" phas="" don't="" have="" the="" resources="" to="" handle="" this="" workload="" and="" residents="" don't="" have="" the="" interest.="" five="" comments="" proposed="" that="" phas="" with="" 100="" units="" or="" less="" be="" exempted="" from="" this="" indicator="" and="" that="" only="" large="" phas="" be="" assessed="" under="" it.="" three="" comments="" suggested="" that="" the="" indicator="" be="" removed="" for="" all="" housing="" authorities,="" or="" revised="" to="" consider="" only="" phas="" of="" 250="" or="" more="" units.="" the="" comments="" proposed="" that="" as="" a="" minimum,="" phas="" with="" 249="" or="" less="" units="" should="" be="" exempted.="" the="" comments="" argued="" that="" hud="" has="" used="" 249="" or="" less="" units="" as="" criterion="" for="" ``small="" housing="" authorities''="" for="" nearly="" all="" aspects="" of="" funding="" such="" as="" ciap="" vs.="" cgp,="" youth="" build="" grants,="" vacancy="" reduction="" grants,="" or="" tenant="" opportunity="" program="" grants.="" another="" comment="" indicated="" that="" maybe="" this="" indicator="" exclusion="" should="" be="" for="" all="" phas="" with="" less="" than="" 500="" units.="" one="" comment="" stated="" that="" small="" phas="" should="" be="" assessed="" under="" the="" indicator="" because="" residents="" of="" these="" phas="" also="" have="" a="" right="" to="" involvement="" in="" pha="" management.="" one="" comment="" indicated="" that="" under="" the="" proposed="" changes,="" hud="" has="" the="" appearance="" that="" it="" no="" longer="" cares="" what="" these="" smaller="" phas="" are="" doing.="" another="" comment="" added="" that="" all="" phas="" should="" be="" assessed="" under="" the="" indicator="" in="" order="" to="" ensure="" that="" they="" are="" informed="" of="" the="" programs="" available="" and="" are="" conforming,="" to="" the="" best="" of="" their="" ability,="" to="" the="" section="" 3="" program.="" one="" other="" comment="" stated="" that="" since="" many="" phas="" over="" the="" past="" three="" years="" have="" gotten="" extensively="" involved="" in="" aspects="" of="" resident="" initiatives,="" it="" seems="" unfair="" to="" automatically="" exclude="" the="" efforts="" of="" those="" who="" have="" performed="" and="" earned="" merit.="" another="" comment="" suggested="" that="" phas="" with="" 100%="" elderly="" units="" be="" excluded="" from="" this="" indicator.="" response:="" the="" department="" agrees="" that="" since="" it="" has="" used="" fewer="" than="" 250="" units="" as="" a="" threshold="" for="" ``small="" housing="" authorities''="" for="" nearly="" all="" aspects="" of="" funding,="" the="" same="" criterion="" should="" and="" is="" being="" used="" for="" applicability="" of="" this="" indicator.="" this="" policy="" is="" consistent="" with="" the="" tenant="" participation="" and="" tenant="" opportunities="" regulation="" (24="" cfr="" part="" 964)="" which="" has="" a="" participating="" threshold="" of="" 250="" units,="" and="" it="" is="" also="" utilized="" in="" the="" cgp.="" in="" addition,="" pha's="" with="" 100%="" elderly="" developments="" will="" not="" be="" assessed="" under="" this="" indicator.="" to="" avoid="" penalizing="" small="" phas="" with="" active="" programs,="" phas="" with="" fewer="" than="" 250="" units="" or="" with="" 100%="" elderly="" developments="" may="" request="" to="" be="" assessed="" under="" the="" indicator="" at="" the="" time="" of="" phmap="" certification="" submission.="" comment:="" two="" comments="" indicated="" that="" what="" this="" indicator="" measures="" is="" not="" a="" property="" management="" issue,="" but="" a="" social="" issue="" related="" to="" phas.="" the="" provision="" of="" social="" service="" support="" is="" not="" a="" function="" of="" pha="" management="" any="" more="" than="" it="" is="" a="" function="" of="" privately="" owned="" or="" section="" 8="" residential="" property="" management.="" response:="" the="" department="" understands="" that="" active="" resident="" participation="" and="" involvement="" have="" a="" direct="" affect="" on="" property="" management="" and="" are="" a="" key="" element="" to="" a="" successful,="" well="" managed="" public="" housing="" community.="" the="" department="" provided="" a="" separate="" resident="" initiatives="" indicator="" and="" component="" on="" resident="" involvement="" in="" phmap="" because="" there="" is="" considerable="" evidence="" that="" resident="" services="" programs="" can="" help="" to="" promote="" and="" sustain="" housing="" authority="" management="" successes.="" various="" tenant="" participation="" initiatives="" (patrols,="" neighborhood="" clean-="" ups,="" etc.)="" can="" reduce="" vandalism="" and="" project="" maintenance.="" resident="" employment="" initiatives="" get="" residents="" involved="" in="" positive="" pursuits="" and="" employed="" residents="" can="" act="" as="" role="" models="" for="" others.="" overall,="" involving="" residents="" in="" the="" various="" facets="" of="" property="" management--as="" trainees="" in="" a="" landscaping="" project="" or="" as="" participants="" in="" screening="" prospective="" residents--can="" showcase="" self-improvement="" and="" individual="" responsibility="" and="" contribute="" substantially="" to="" building="" positive="" and="" strong="" public="" housing="" communities.="" comment:="" two="" comments="" requested="" hud="" to="" clarify="" if="" the="" indicator="" intends="" to="" ``examine="" efforts''="" or="" to="" ``require="" efforts''="" and="" argued="" that="" it="" seems="" that="" it="" has="" been="" prescribed="" to="" require="" phas="" to="" develop="" and="" administer="" programs="" that="" at="" times="" are="" not="" funded="" by="" hud,="" are="" not="" long-term="" commitments="" by="" hud,="" and="" in="" most="" cases,="" the="" results="" of="" performance="" are="" predicated="" on="" the="" residents'="" willingness="" to="" participate.="" it="" is="" not="" equitable="" to="" score="" a="" pha="" on="" items="" that="" are="" beyond="" the="" pha's="" control.="" it="" is="" equitable="" to="" request="" phas="" to="" adopt="" resolutions="" encouraging="" participation.="" another="" comment="" indicated="" that="" this="" is="" an="" unfunded="" mandate.="" one="" comment="" stated="" that="" the="" performance="" message="" has="" now="" been="" confused="" with="" compliance="" items.="" another="" comment="" indicated="" that="" phmap="" is="" intended="" to="" be="" a="" performance-based="" assessment="" system="" in="" which="" indicators="" must="" be="" written="" so="" that="" standards="" and="" criteria="" are="" clear,="" measurable,="" and="" capable="" of="" being="" duplicated="" from="" one="" pha="" to="" another.="" the="" comment="" added="" that="" too="" much="" of="" this="" indicator="" is="" process-oriented,="" not="" performance-based="" and="" that="" adopting="" programs="" and="" ``mechanisms''="" is="" administrative="" process="" and="" offers="" no="" guarantee="" or="" measure="" of="" results.="" one="" other="" comment="" stated="" that="" the="" indicator,="" as="" currently="" structured,="" will="" be="" very="" difficult="" to="" grade="" and="" will="" produce="" very="" inconsistent="" results.="" three="" comments="" recommended="" that="" this="" indicator="" be="" [[page="" 68920]]="" deleted="" entirely="" because="" it="" measures="" process="" and="" not="" outcomes.="" response:="" this="" indicator="" has="" been="" revised="" to="" hold="" phas="" accountable="" only="" for="" the="" functions="" they="" perform="" in="" operating="" resident="" services="" programs.="" the="" indicator="" has="" been="" subdivided="" into="" four="" separate="" components="" to="" make="" it="" easier="" to="" assess="" and="" grade:="" economic="" uplift="" and="" self-improvement;="" resident="" organization,="" resident="" involvement;="" and="" resident="" programs="" management.="" each="" has="" been="" reshaped="" to="" address="" the="" public="" comments,="" especially="" to="" focus="" solely="" on="" the="" pha's="" responsibilities="" for="" resident="" services.="" the="" indicator="" has="" been="" renamed="" ``resident="" services="" and="" community="" building''="" to="" place="" a="" more="" accurate="" emphasis="" upon="" the="" specific="" roles="" of="" phas="" for="" these="" functions.="" in="" response="" to="" concerns="" about="" short-term="" resident="" initiatives="" funding,="" it="" should="" be="" emphasized="" that="" phas="" would="" only="" be="" assessed="" for="" programs="" for="" which="" it="" has="" been="" funded.="" phas="" could="" also="" get="" credit="" for="" programs="" implemented="" through="" a="" partnership,="" for="" which="" the="" funding="" was="" made="" available="" through="" another="" of="" the="" partners.="" component="" #1,="" economic="" uplift="" and="" self-improvement="" comment:="" one="" comment="" stated="" that="" under="" the="" proposed="" changes,="" hud="" adds="" a="" section="" 3="" requirement="" that="" has="" mixed="" adherence="" throughout="" the="" country.="" another="" comment="" indicated="" that="" in="" small="" communities="" there="" are="" very="" few="" section="" 3="" programs="" and="" if="" there="" is="" one="" and="" the="" contractor's="" contract="" calls="" for="" them="" to="" hire="" section="" 3="" people,="" all="" a="" pha="" can="" do="" is="" inform="" the="" residents="" that="" they="" may="" apply.="" one="" other="" comment="" argued="" that="" the="" implementation="" of="" section="" 3="" programs="" and="" the="" number="" of="" residents="" hired="" by="" the="" pha="" is="" not="" a="" measure="" of="" its="" management.="" the="" comment="" concluded="" that="" resident="" self-sufficiency="" and="" related="" programs="" don't="" have="" any="" place="" in="" a="" management="" assessment="" program.="" one="" comment="" indicated="" that="" to="" implement="" section="" 3="" training,="" you="" must="" have="" residents="" willing="" to="" participate.="" it="" stated="" that="" most="" of="" their="" residents="" are="" elderly,="" handicapped="" or="" have="" very="" small="" children="" and="" many="" are="" not="" able="" to="" work.="" another="" comment="" stated="" that="" the="" section="" 3="" program="" may="" be="" disadvantageous="" to="" large="" municipalities="" facing="" a="" hiring="" freeze.="" another="" comment="" stated="" that="" section="" 3="" is="" a="" mandate="" for="" any="" department="" using="" federal="" funds,="" and="" should="" not="" be="" a="" centralized="" program,="" as="" indicator="" #7="" seems="" to="" require.="" it="" added="" that="" there="" seems="" to="" be="" no="" final="" rule="" for="" section="" 3="" in="" public="" housing="" (24="" cfr="" part="" 135)="" and="" its="" status="" seems="" in="" doubt.="" one="" comment="" mentioned="" that="" it="" does="" not="" have="" a="" concern="" with="" the="" section="" 3="" program="" emphasis="" because="" it="" has="" a="" great="" program="" now,="" but="" it="" is="" concerned="" with="" future="" funding="" and="" the="" impact="" if="" no="" new="" funding="" is="" available="" to="" continue="" the="" program.="" one="" comment="" agreed="" with="" the="" department's="" efforts="" to="" emphasize="" the="" section="" 3="" program="" and="" another="" comment="" recommended="" that="" phas="" be="" required="" to="" show="" results="" in="" employment="" efforts="" in="" subsequent="" years="" to="" add="" to="" the="" results="" oriented="" focus.="" one="" other="" comment="" stated="" that="" it="" is="" difficult="" to="" be="" consistently="" abreast="" of="" a="" pha="" performance="" under="" section="" 3="" and="" resident="" employment="" and="" suggested="" that="" it="" must="" be="" a="" pha="" requirement="" to="" report="" resident="" employment="" to="" the="" hud="" office="" in="" order="" to="" assess="" this="" criteria.="" another="" comment="" stated="" that="" section="" 3="" is="" already="" a="" requirement="" and="" argued="" that="" phas="" should="" not="" get="" credit="" for="" something="" they="" are="" already="" required="" to="" implement.="" it="" further="" suggested="" that="" credit="" be="" given="" only="" for="" those="" things="" that="" phas="" do="" that="" are="" over="" and="" above="" hud="" requirements="" such="" as="" internship="" programs="" or="" on="" the="" job="" training="" plans="" and="" also="" for="" using="" cgp="" funds="" to="" assist="" resident="" groups="" and="" develop="" security="" measures.="" response:="" the="" inclusion="" of="" an="" employment-related="" subcomponent="" in="" the="" resident="" initiatives="" indicator="" reflects="" the="" department's="" emphasis="" on="" economic="" uplift="" as="" a="" proactive="" means="" to="" reducing="" dependency,="" and="" as="" mandated="" by="" the="" recent="" welfare="" reform="" legislation.="" the="" department="" understands="" that="" there="" is="" considerable="" evidence="" that="" the="" increase="" in="" working="" families="" is="" very="" beneficial="" to="" property="" management.="" because="" of="" the="" importance="" of="" this="" area,="" the="" department="" wishes="" to="" give="" phas="" credit="" for="" the="" leadership="" role="" they="" can="" perform="" in="" employment-related="" initiatives.="" the="" department="" has="" expanded="" the="" definition="" to="" include="" all="" employment-related="" initiatives,="" not="" just="" section="" 3="" or="" those="" in="" the="" public="" sector.="" section="" 3="" is="" effective="" as="" an="" interim="" rule="" and="" should="" be="" viewed="" as="" one="" tool="" in="" employment="" related="" initiatives.="" in="" response="" to="" comments="" that="" the="" indicator="" be="" strengthened,="" language="" has="" been="" added="" to="" the="" indicator="" to="" require="" the="" pha="" to="" provide="" evidence="" that="" they="" have="" one="" or="" more="" economic="" uplift="" and="" self-="" improvement="" programs="" and="" partnerships="" for="" economic="" uplift,="" including="" but="" not="" limited="" to,="" section="" 3="" initiatives.="" such="" opportunities="" can="" be="" provided="" either="" directly="" or="" through="" non-pha="" partners.="" the="" department="" believes="" it="" is="" important="" for="" phas="" to="" get="" credit="" for="" their="" initiatives="" in="" promoting="" employment="" opportunities="" for="" residents.="" it="" is="" expected="" that="" phas="" will="" provide="" data="" on="" the="" number="" of="" residents="" by="" development="" in="" employment-related="" programs="" as="" well="" as="" evidence="" of="" the="" number="" of="" residents="" obtaining="" employment.="" phas="" can="" use="" multifamily="" tenant="" characteristics="" system="" information="" to="" measure="" employment.="" while="" the="" department="" is="" supportive="" of="" phas="" efforts="" to="" measure="" employment,="" the="" indicator="" only="" requires="" that="" phas="" implement="" programs="" (hud="" funded="" or="" non-hud="" funded="" through="" partnerships)="" in="" its="" family="" occupied="" developments="" and="" set="" up="" and="" implement="" a="" system="" for="" measuring="" progress.="" the="" department="" is="" not="" trying="" to="" dictate="" specific="" numeric="" employment="" goals="" but="" rather="" emphasizing="" activities="" that="" help="" measure="" pha="" effort="" in="" implementing="" these="" programs.="" component="" #2,="" resident="" organization="" comment:="" one="" comment="" stated="" that="" hud's="" encouragement="" of="" a="" resident="" council="" at="" each="" family="" development="" site="" assumes="" that="" resident="" councils="" are="" an="" absolute="" for="" every="" family="" development,="" regardless="" of="" the="" size="" of="" the="" development.="" resident="" councils="" for="" some="" small="" developments="" are="" not="" only="" not="" necessary,="" but="" impractical.="" another="" comment="" indicated="" that="" family="" developments="" are="" often="" built="" on="" scattered="" sites="" throughout="" a="" wide="" geographical="" area.="" the="" comment="" added="" that="" it="" is="" next="" to="" impossible="" to="" establish="" a="" resident="" council="" under="" these="" conditions="" and="" that="" this="" goal="" should="" be="" voluntary="" in="" these="" situations.="" response:="" current="" hud="" requirements="" give="" phas="" and="" resident="" communities="" the="" flexibility="" to="" determine="" how="" resident="" councils="" are="" organized.="" there="" is="" no="" specific="" requirement="" for="" a="" resident="" council="" at="" each="" development.="" the="" local="" public="" housing="" community="" should="" determine="" what="" kind="" of="" representation="" system="" suits="" its="" needs="" and="" makes="" the="" most="" sense.="" in="" larger="" developments,="" a="" separate="" resident="" council="" is="" merited.="" in="" smaller="" phas,="" a="" city-wide="" council="" may="" be="" more="" appropriate.="" comment:="" one="" comment="" stated="" that="" the="" current="" rule="" is="" supportive="" of="" resident="" councils="" and="" other="" resident="" groups="" while="" the="" proposed="" rule="" is="" too="" restrictive="" because="" it="" only="" makes="" reference="" to="" resident="" councils.="" the="" comment="" added="" that,="" while="" highly="" desirable,="" it="" is="" not="" always="" possible="" to="" organize="" and="" conduct="" development-wide="" elections="" and="" it="" urged="" the="" department="" to="" reinstate="" the="" ``or="" other="" resident="" groups''="" language="" of="" the="" current="" rule.="" three="" comments="" suggested="" that="" the="" indicator="" reference="" to="" resident="" councils="" at="" each="" pha="" family="" development="" should="" be="" changed="" to="" specify="" ``hud="" recognized="" resident="" councils.''="" response:="" hud="" is="" supportive="" of="" all="" resident="" organizations="" that="" work="" to="" benefit="" the="" residents,="" but="" the="" indicator="" [[page="" 68921]]="" does="" not="" pretend="" to="" cover="" all="" possible="" forms="" of="" resident="" organization.="" the="" department="" considers="" that="" resident="" councils,="" as="" official="" vehicles="" of="" resident="" representation,="" should="" be="" encouraged="" and="" the="" indicator="" measures="" pha="" efforts="" to="" promote="" this="" goal.="" in="" regards="" to="" the="" issue="" of="" ``hud-recognized="" resident="" councils,''="" the="" department="" understand="" that="" it="" is="" not="" hud's="" role="" to="" certify="" resident="" councils="" and="" that="" it="" is="" the="" pha's="" responsibility="" to="" certify="" if="" such="" organizations="" have="" been="" formed="" in="" compliance="" with="" approved="" regulations,="" policies="" and="" procedures.="" component="" #3,="" resident="" involvement="" comment:="" four="" comments="" stated="" that="" phas="" should="" not="" be="" penalized="" for="" lack="" of="" participation="" by="" the="" residents="" provided="" the="" pha="" promotes="" self-="" sufficiency="" programs="" and="" community="" involvement.="" the="" comments="" indicated="" that="" phas="" may="" offer="" a="" variety="" of="" programs="" and="" training="" for="" residents,="" but="" they="" cannot="" make="" residents="" attend="" and="" participate.="" another="" two="" comments="" recommended="" that="" an="" exclusion="" of="" the="" indicator="" be="" permitted="" in="" such="" cases="" where="" a="" pha="" can="" show="" that="" the="" residents="" are="" not="" interested="" in="" forming="" a="" resident="" council="" and="" do="" not="" want="" to="" be="" involved="" in="" any="" of="" the="" programs="" covered="" by="" this="" indicator.="" one="" other="" comment="" also="" recommended="" to="" make="" each="" component="" potentially="" able="" to="" be="" excluded,="" based="" upon="" pha's="" situation.="" two="" comments="" stated="" that="" this="" indicator="" cannot="" accurately="" establish="" levels="" of="" participation,="" interest,="" etc.,="" of="" the="" residents,="" it="" only="" measures="" the="" level="" of="" opportunities="" the="" pha="" makes="" available="" to="" its="" residents.="" therefore,="" it="" cannot="" measure="" performance.="" response:="" the="" department="" agrees="" that="" phas="" cannot="" be="" made="" responsible="" for="" lack="" of="" interest="" by="" residents="" in="" organizing="" resident="" councils,="" but="" phas="" can="" be="" assessed="" on="" their="" efforts="" to="" promote="" and="" facilitate="" the="" organization="" of="" resident="" councils="" by="" activities="" such="" as:="" facilitating="" space="" for="" meetings,="" providing="" training,="" access="" to="" bulletin="" boards,="" helping="" to="" schedule="" and="" promote="" meetings,="" approving="" board="" policies="" and="" developing="" pha="" procedures="" for="" certifying="" resident="" councils.="" in="" response="" to="" some="" of="" the="" concerns="" expressed="" in="" the="" comments,="" the="" department="" changed="" the="" indicator="" to="" subdivide="" it="" into="" four="" components.="" this="" component="" measures="" pha="" efforts="" regarding="" resident="" councils,="" and="" pha="" collaboration="" and="" support="" to="" existing="" resident="" councils="" or="" to="" those="" that="" are="" in="" the="" process="" of="" being="" organized.="" a="" pha="" is="" not="" responsible="" for="" the="" formation="" or="" continuation="" of="" resident="" councils="" as="" these="" functions="" are="" the="" responsibility="" of="" the="" resident="" councils.="" the="" department="" is="" making="" the="" indicator="" and="" each="" of="" its="" components="" subject="" to="" exclusion.="" this="" would="" certainly="" apply="" to="" cases="" where="" the="" pha="" can="" show="" evidence="" that="" it="" has="" predominately="" scattered="" site="" units="" and="" that="" residents="" are="" not="" interested="" in="" these="" programs.="" the="" department="" will="" provide="" additional="" guidance="" to="" phas="" on="" this="" issue="" in="" the="" revision="" of="" the="" phmap="" handbook="" 7460.5.="" comment:="" three="" comments="" indicated="" that="" resident="" involvement="" is="" simply="" not="" an="" appropriate="" measure="" of="" a="" pha's="" management="" capability.="" response:="" the="" department="" disagrees="" and="" as="" mentioned="" earlier,="" believes="" that="" active="" resident="" participation="" and="" involvement="" have="" a="" direct="" affect="" on="" property="" management="" and="" are="" key="" elements="" to="" a="" successful,="" well="" managed="" pha.="" in="" addition,="" there="" is="" considerable="" evidence="" that="" resident="" involvement="" and="" resident="" services="" programs="" can="" help="" to="" promote="" and="" sustain="" housing="" authority="" management="" successes.="" resident="" surveys="" comment:="" one="" comment="" stated="" that="" resident="" surveys="" would="" be="" time="" consuming,="" but="" may="" be="" helpful.="" another="" comment="" suggested="" that="" phas="" should="" be="" required="" to="" complete="" a="" resident="" survey="" on="" the="" fear="" of="" crime="" and="" the="" measure="" of="" disorder="" in="" each="" community="" once="" a="" year.="" two="" comments="" stated="" that="" resident="" surveys="" are="" most="" important="" in="" order="" to="" establish="" programs="" in="" which="" the="" residents="" are="" interested="" and="" suggested="" that="" phas="" be="" required="" to="" report="" on="" whether="" they="" conduct="" resident="" surveys="" for="" modernization="" or="" whether="" the="" pha="" attempts="" to="" conduct="" resident="" surveys="" or="" communicates="" with="" newsletters.="" five="" other="" comments="" expressed="" support="" for="" resident="" surveys,="" with="" one="" proposing="" an="" annual="" standardized="" survey="" used="" as="" a="" learning="" tool="" by="" phas="" and="" another="" three="" arguing="" that="" standardized="" surveys="" should="" only="" be="" used="" as="" models="" for="" phas="" to="" develop="" locally="" oriented="" surveys.="" one="" comment="" suggested="" that="" resident="" surveys="" be="" optional="" for="" well="" managed="" phas="" and="" required="" under="" the="" moa="" for="" troubled="" phas.="" another="" comment="" stated="" that="" conducting="" resident="" surveys="" is="" a="" good="" idea,="" but="" hud="" should="" allow="" phas="" to="" complete="" regular="" surveys="" in="" lieu="" of="" hud's="" mandated="" ideas="" of="" what="" resident="" involvement="" means.="" two="" comments="" indicated="" that="" phas="" should="" be="" encouraged,="" but="" not="" required,="" to="" conduct="" such="" surveys,="" with="" hud="" assisting="" in="" the="" development="" of="" survey="" formats="" and="" data="" analysis="" models="" that="" phas="" may="" use="" for="" this="" purpose.="" the="" comments="" argued="" that="" if="" hud="" wishes="" to="" use="" customer="" satisfaction="" as="" the="" basis="" for="" the="" phmap="" score,="" then="" hud="" should="" conduct="" the="" survey="" itself="" using="" some="" type="" of="" sampling="" technique="" that="" employs="" consistent="" and="" statistically="" reliable="" methods.="" another="" comment="" expressed="" concern="" with="" the="" feasibility="" of="" implementing="" this="" measure="" in="" small="" phas="" with="" a="" majority="" of="" elderly="" and="" residents="" with="" disabilities.="" another="" comment="" stated="" that="" consumer="" satisfaction="" is="" critical="" in="" public="" housing="" and="" a="" survey="" of="" residents="" may="" be="" a="" way="" to="" gauge="" satisfaction.="" surveys="" should="" not="" be="" conducted="" by="" phas;="" that="" would="" add="" too="" much="" paperwork="" and="" residents="" would="" feel="" inhibited="" to="" express="" their="" true="" feelings.="" surveys="" should="" be="" conducted="" by="" private="" contractors,="" using="" a="" standardized="" form="" on="" a="" statistically="" significant="" sample="" of="" residents="" (using="" mtcs="" data="" to="" assure="" a="" diverse="" and="" representative="" group)="" from="" each="" pha.="" the="" results="" would="" be="" shared="" with="" hud="" and="" the="" pha.="" ten="" comments="" stated="" that="" resident="" surveys="" as="" suggested="" would="" only="" amount="" to="" more="" paperwork="" with="" few,="" if="" any,="" tangible="" results.="" a="" survey="" completed="" by="" the="" resident="" council="" or="" advisory="" board="" would="" be="" more="" accurate="" and="" more="" useful.="" another="" three="" comments="" stated="" that="" the="" present="" contact="" with="" residents="" is="" sufficient="" to="" adequately="" assess="" their="" level="" of="" satisfaction.="" one="" comment="" indicated="" that="" no="" new="" unfunded="" tasks="" should="" be="" imposed="" on="" phas="" through="" phmap.="" four="" comments="" indicated="" that="" surveys,="" by="" their="" nature,="" are="" subjective="" in="" orientation="" and="" often="" reflect="" the="" goals="" of="" the="" entity="" doing="" the="" survey.="" there="" are="" too="" many="" variables="" which="" would="" affect="" the="" responses.="" to="" direct="" phas="" to="" design="" and="" implement="" their="" own="" surveys="" would="" be="" a="" self-serving="" exercise="" of="" little="" real="" value.="" for="" hud="" to="" develop="" a="" standard="" survey="" to="" be="" used="" by="" every="" pha,="" each="" with="" its="" own="" set="" of="" problems="" and="" capabilities,="" would="" result="" in="" a="" document="" devoid="" of="" any="" real="" meaning.="" another="" two="" comments="" stated="" that="" surveys="" are="" complex="" to="" develop="" and="" can="" be="" resented="" or="" distrusted="" by="" residents.="" four="" comments="" expressed="" concern="" with="" the="" cost="" to="" phas="" of="" implementing="" resident="" surveys="" and="" indicated="" that="" a="" national="" format="" is="" not="" a="" good="" idea="" because="" of="" the="" special="" local="" conditions.="" another="" comment="" stated="" that="" phas="" shouldn't="" be="" penalized="" for="" lack="" of="" resident="" response="" to="" these="" surveys.="" two="" other="" comments="" argued="" that="" total="" consumer="" satisfaction="" is="" impossible="" to="" achieve="" and="" even="" more="" difficult="" to="" measure.="" requiring="" phas="" to="" conduct="" periodic="" surveys="" for="" this="" purpose="" is="" an="" undue="" burden,="" especially="" on="" large="" phas="" [[page="" 68922]]="" where="" housing="" projects="" are="" distant="" from="" one="" another="" and="" from="" the="" pha.="" one="" comment="" recommended="" that="" this="" be="" a="" voluntary="" activity="" and="" that="" it="" not="" be="" included="" in="" performance="" measurements.="" another="" comment="" requested="" hud="" to="" provide="" technical="" assistance="" in="" the="" area="" of="" assessing="" consumer="" satisfaction,="" but="" discouraged="" the="" creation="" of="" a="" new="" reporting="" requirement.="" hud="" could="" distribute="" information="" to="" phas="" on="" how="" to="" design,="" develop="" and="" implement="" resident="" satisfaction="" surveys.="" it="" is="" unrealistic="" to="" expect="" that="" a="" single="" resident="" survey="" instrument="" will="" necessarily="" be="" meaningful="" to="" every="" pha="" and="" every="" resident="" population.="" in="" times="" of="" diminishing="" operating="" subsidies,="" hud="" should="" not="" force="" phas="" to="" conduct="" such="" surveys="" only="" for="" the="" sake="" of="" phmap.="" response:="" in="" response="" to="" the="" comments,="" the="" department="" decided="" not="" to="" require="" the="" implementation="" of="" resident="" surveys="" as="" part="" of="" the="" phmap="" process.="" although="" it="" is="" not="" required,="" phas="" may="" consider="" the="" voluntary="" use="" of="" this="" optional="" tool="" to="" obtain="" resident="" input="" and="" to="" measure="" resident="" involvement="" and="" satisfaction.="" the="" tenant="" participation="" and="" tenant="" opportunities="" regulation="" (24="" cfr="" sec.="" 964)="" stipulates="" that="" phas="" shall="" encourage="" full="" resident="" participation="" and="" partnership="" with="" the="" pha.="" the="" department="" does="" not="" want="" to="" provide="" overly="" specific="" instructions="" to="" phas,="" but="" instead="" wants="" to="" offer="" options="" for="" alternative="" approaches="" for="" promoting="" constructive="" resident="" participation="" and="" customer="" satisfaction.="" therefore,="" the="" component="" on="" resident="" participation="" has="" been="" changed="" to="" require="" a="" pha="" to="" provide="" evidence="" that="" the="" pha="" is="" providing="" meaningful="" ways="" to="" communicate="" and="" partner="" with="" residents="" concerning="" the="" quality="" of="" life="" and="" housing="" management="" services="" (such="" as="" screening,="" relocation,="" capital="" improvements),="" but="" is="" not="" prescribing="" the="" specific="" method(s).="" possible="" methods="" used="" by="" phas="" would="" include,="" but="" not="" be="" limited="" to:="" resident="" membership="" on="" the="" pha="" board="" of="" commissioners="" or="" on="" specific="" policy="" committees="" that="" contribute="" substantially="" in="" planning="" and="" implementing="" pha="" programs;="" regular="" resident="" consultation="" through="" ongoing,="" scheduled="" meetings="" with="" the="" pha-certified="" duly-elected="" resident="" councils;="" regular="" communication="" mechanisms="" with="" residents,="" such="" as="" a="" newsletter,="" as="" well="" as="" other="" means="" such="" as="" customer="" surveys="" and="" focus="" groups.="" component="" #4,="" resident="" programs="" management="" comment:="" several="" comments="" stated="" that="" pha="" performance="" should="" not="" be="" assessed="" based="" on="" grants="" and="" activities="" that="" are="" not="" under="" the="" control="" of="" the="" pha.="" sixteen="" comments="" indicated="" that="" top="" and="" tag="" are="" controlled="" by="" the="" resident="" organization="" and="" not="" by="" the="" phas="" and="" that="" it="" would="" be="" unfair="" of="" hud="" to="" hold="" phas="" accountable="" for="" tenant="" organization="" grants="" that="" are="" not="" under="" the="" pha's="" control.="" one="" of="" the="" comments="" suggested="" that="" hud="" eliminate="" this="" component.="" another="" comment="" asked="" if="" a="" pha="" would="" get="" credit="" if="" its="" resident="" organization="" implements="" a="" top="" grant="" training.="" response:="" the="" department="" agrees="" that="" phas="" should="" not="" be="" held="" responsible="" for="" resident="" activities="" or="" grants="" that="" are="" not="" under="" their="" control="" and="" the="" new="" rule="" reflects="" these="" changes.="" the="" indicator="" has="" been="" revised="" in="" order="" to="" assess="" phas="" for="" the="" functions="" they="" perform="" in="" operating="" resident="" services="" programs="" and="" for="" resident="" management="" or="" top="" performance="" only="" when="" the="" pha="" is="" the="" contract="" administrator="" for="" the="" program.="" comment:="" one="" comment="" stated="" that="" in="" order="" to="" meet="" 90%="" of="" the="" goals="" as="" defined="" in="" the="" grants,="" a="" pha="" would="" need="" to="" adjust="" those="" goals="" under="" various="" circumstances,="" i.e.,="" numbers="" versus="" percentages;="" either="" the="" grant="" plan="" should="" allow="" for="" a="" percentage="" versus="" an="" exact="" number="" to="" be="" included,="" or="" the="" goal="" must="" be="" flexible="" enough="" to="" change="" when="" circumstances="" dictate.="" another="" two="" comments="" indicated="" that="" this="" indicator="" requires="" the="" documentation="" of="" achievement="" of="" a="" certain="" percentage="" of="" goals="" under="" resident="" initiative="" programs,="" but="" goals="" tend="" to="" be="" few="" and="" somewhat="" unquantifiable;="" such="" program="" goals="" should="" not="" be="" measured="" by="" phmap="" unless="" the="" goals="" had="" been="" articulated="" with="" the="" understanding="" that="" they="" were="" to="" be="" quantifiable="" and="" achievable="" within="" the="" grant="" term;="" progress="" is="" often="" in="" the="" hands="" of="" the="" tenants="" and="" tenant="" leaders.="" two="" comments="" stated="" that="" there="" is="" general="" concern="" that="" measuring="" performance="" in="" meeting="" grant="" goals="" may="" be="" difficult="" to="" evaluate="" and="" may="" not="" be="" representative="" of="" performance.="" there="" is="" a="" clear="" incentive="" for="" phas="" to="" establish="" easily="" attainable="" goals="" to="" protect="" a="" good="" phmap="" score.="" we="" believe="" the="" goals="" for="" such="" programs="" should="" be="" set="" as="" high="" as="" possible="" and="" used="" as="" targets="" for="" achievement.="" some="" other="" system="" of="" measurement="" should="" be="" found.="" this="" should="" be="" measured="" in="" the="" criteria="" used="" to="" determine="" management="" capability="" in="" the="" competition="" to="" receive="" grants.="" one="" comment="" argued="" that="" hud="" shouldn't="" ask="" phas="" to="" document="" goals="" met="" under="" resident="" initiatives="" programs.="" those="" programs="" already="" have="" exhaustive="" reporting="" requirements.="" one="" comment="" stated="" that="" the="" standard="" defined="" as="" 90%="" and="" 60%="" of="" goal="" attainment="" under="" the="" implementation="" plan="" for="" any="" and="" all="" of="" the="" grant="" programs="" are="" too="" stringent="" and="" perhaps="" inappropriate="" to="" the="" goals="" being="" measured.="" the="" measure="" of="" goal="" attainment="" based="" on="" implementation="" strategies="" is="" at="" best="" subjective="" and="" at="" times="" affected="" by="" conditions="" beyond="" the="" control="" of="" the="" pha.="" one="" comment="" indicated="" concern="" with="" the="" indicator="" measuring="" resident="" involvement="" via="" any="" resident="" related="" grants="" received="" by="" the="" agency.="" the="" comment="" argued="" that="" hud="" would="" do="" better="" to="" leave="" grant="" measurements="" with="" the="" specific="" grant="" processes="" and="" perhaps="" rate="" phas="" on="" whether="" they="" have="" a="" system="" to="" become="" informed="" about="" resident="" related="" grant="" opportunities="" or="" if="" they="" have="" applied,="" assuming="" they="" have="" resources="" to="" do="" so.="" another="" comment="" indicated="" that="" sec.="" 901.40(a)(4)="" attempts="" to="" measure="" compliance="" in="" many="" categorical="" funding="" programs="" in="" which="" phas="" are="" voluntary="" participants="" and="" that="" have="" their="" own="" contractual="" requirements="" and="" enforcement="" mechanisms.="" if="" hud="" were="" to="" grade="" compliance="" with="" these="" contracts="" under="" phmap,="" hud="" would="" be="" unilaterally="" imposing="" new="" contractual="" provisions="" that="" substantially="" alter="" the="" consequences="" of="" performance="" or="" non-performance.="" provisions="" of="" this="" nature="" should="" not="" take="" effect="" unless="" and="" until="" they="" are="" subject="" to="" negotiation="" between="" the="" contracting="" parties.="" one="" comment="" stated="" that="" applying="" for="" social="" service="" grants="" is="" a="" pha="" option,="" not="" a="" requirement.="" phas="" that="" do="" not="" elect="" to="" apply="" are="" appropriately="" not="" penalized.="" how="" can="" evaluation="" of="" a="" pha's="" performance="" of="" optional="" activities="" be="" used="" as="" a="" basis="" to="" rate="" the="" pha's="" management="" performance?="" response:="" the="" department="" included="" resident="" grant="" progress="" as="" a="" component="" of="" the="" resident="" initiatives="" indicator="" because="" it="" is="" critical="" that="" any="" available="" categorical="" grant="" funding="" be="" utilized="" effectively="" to="" meet="" the="" defined="" work="" plan="" objectives="" of="" the="" specific="" programs.="" this="" component="" would="" only="" apply="" if="" the="" pha="" has="" responsibility="" for="" administering="" one="" or="" more="" grant="" programs.="" by="" applying="" to="" these="" programs,="" a="" participating="" pha="" accepts="" implementation="" requirements="" attached="" to="" them.="" goals="" for="" these="" programs="" are="" developed="" by="" the="" pha="" and="" should="" reflect="" realistic="" expectations="" of="" what="" the="" [[page="" 68923]]="" pha="" proposes="" to="" accomplish.="" the="" rule="" reflects="" some="" margin="" of="" flexibility="" in="" grading="" the="" percentage="" of="" goals="" achieved.="" assessing="" phas="" on="" performance="" in="" managing="" grant="" programs="" is="" not="" new="" to="" phmap.="" phas="" are="" assessed="" under="" other="" areas="" of="" their="" management,="" including="" performance="" in="" managing="" grant="" programs="" (competitive="" or="" formula)="" such="" as="" modernization.="" in="" addition,="" the="" department="" has="" revised="" the="" regulation="" to="" eliminate="" assessment="" of="" the="" resident="" management="" or="" top="" unless="" the="" pha="" acts="" as="" the="" contract="" administrator="" for="" the="" resident="" grantee.="" section="" 901.45="" indicator="" #8,="" security="" general="" comments="" comment:="" there="" were="" fifteen="" comments="" recommending="" that="" indicator="" #8="" not="" apply="" to="" smaller="" phas,="" described="" variously="" as="" those="" phas="" with="" fewer="" than="" 500="" units,="" fewer="" than="" 250="" units,="" and="" fewer="" than="" 100="" units.="" one="" comment="" felt="" that="" all="" phas,="" regardless="" of="" size,="" should="" be="" assessed="" under="" this="" indicator="" because="" crime="" and="" drugs="" exists="" everywhere.="" response:="" in="" response="" to="" the="" comments="" received,="" the="" department="" has="" determined="" that="" indicator="" #8="" will="" apply="" to="" phas="" with="" 250="" or="" more="" units="" under="" management.="" to="" avoid="" penalizing="" small="" phas="" with="" active="" programs,="" phas="" with="" fewer="" than="" 250="" units="" can="" request="" to="" be="" assessed="" under="" the="" indicator="" at="" the="" time="" of="" the="" phmap="" certification="" submission.="" however,="" phas="" with="" fewer="" than="" 250="" units="" should="" be="" keeping="" records="" of="" crime,="" reporting="" it="" to="" local="" law="" enforcement,="" administering="" rigorous="" screening="" criteria,="" evicting="" residents="" who="" engage="" in="" criminal="" activity,="" and="" meeting="" the="" goals="" specified="" by="" categorical="" grants="" as="" good="" management="" practices,="" even="" though="" they="" are="" not="" required="" to="" be="" measured="" on="" this="" activity.="" comment:="" there="" were="" two="" comments="" specifically="" supporting="" ``one="" strike="" and="" you're="" out''="" and="" screening="" and="" eviction="" policies="" through="" indicator="" #8.="" two="" commenters="" mentioned="" that="" constraints="" in="" existing="" state="" law="" or="" the="" local="" court="" system="" have="" made="" it="" difficult="" to="" comply="" with="" the="" intent="" of="" the="" one="" strike="" policy.="" two="" other="" commenters="" indicated="" that="" phas="" should="" be="" required="" to="" submit="" evidence="" that="" they="" have="" implemented="" eviction="" policies="" that="" could="" be="" monitored="" through="" tracking="" systems.="" response:="" the="" department="" is="" pleased="" that="" there="" is="" a="" positive="" response="" to="" its="" one="" strike="" policies="" which="" are="" established="" pursuant="" to="" the="" ``housing="" opportunity="" program="" extension="" act="" of="" 1996''="" and="" pih="" implementing="" guidance="" (notice="" pih="" 96-27),="" which="" provided="" additional="" guidance="" to="" phas="" in="" the="" areas="" of="" screening,="" lease="" enforcement="" and="" eviction="" in="" order="" to="" help="" phas="" fight="" crime.="" the="" one="" strike="" policy="" must="" be="" implemented="" within="" the="" context="" of="" the="" applicable="" state="" laws="" and="" court="" systems.="" phas="" will="" not="" be="" required="" to="" submit="" documentation="" at="" the="" time="" of="" certification;="" rather,="" phas="" are="" required="" to="" maintain="" supporting="" documentation="" for="" all="" of="" the="" indicators="" it="" certifies="" to="" for="" hud="" post="" review.="" to="" assist="" phas="" in="" setting="" up="" and="" operating="" successful="" programs,="" the="" department="" will="" provide="" examples="" of="" best="" practices="" in="" the="" forthcoming="" revised="" phmap="" handbook="" 7460.5.="" comment:="" there="" were="" four="" comments="" that="" felt="" that="" this="" indicator="" would="" place="" unnecessary="" administrative="" burdens="" on="" a="" small="" pha="" that="" does="" not="" have="" a="" crime="" problem="" and="" is="" already="" cooperating="" with="" the="" local="" police="" department.="" in="" addition,="" small="" phas="" do="" not="" have="" the="" resources="" (funds="" and="" personnel)="" to="" perform="" the="" security="" measures="" required="" by="" this="" indicator.="" response:="" current="" practices="" by="" phas="" show="" that="" the="" cooperation="" of="" phas="" and="" local="" law="" enforcement="" for="" the="" collection="" and="" reporting="" of="" pha="" crime="" information="" is="" not="" always="" a="" cost="" issue.="" please="" note="" that="" the="" extension="" act="" permits="" phas="" to="" request="" criminal="" conviction="" records="" of="" adult="" applicants="" from="" the="" national="" crime="" information="" center="" (ncic),="" police="" departments="" and="" other="" law="" enforcement="" agencies.="" the="" public="" housing="" drug="" elimination="" technical="" assistance="" program="" can="" be="" used="" to="" assist="" phas="" in="" developing="" appropriate="" collection="" systems="" and="" data="" bases.="" the="" department="" anticipates="" that="" the="" use="" of="" ncic="" and="" other="" data="" sources="" in="" addition="" to="" the="" technical="" assistance="" from="" hud="" will="" enable="" phas="" to="" obtain="" necessary="" information="" in="" a="" timely="" manner.="" comment:="" three="" comments="" felt="" that="" there="" should="" be="" a="" policy="" designed="" for="" small="" phas="" and="" one="" for="" large="" phas.="" it="" will="" be="" very="" difficult="" for="" a="" small="" pha="" with="" no="" security="" problem="" and="" no="" resident="" involvement="" to="" make="" a="" passing="" grade="" in="" this="" indicator.="" response:="" rather="" than="" have="" a="" separate="" security="" indicator="" for="" small="" and="" large="" phas,="" the="" department="" has="" determined="" that="" phas="" with="" fewer="" than="" 250="" units="" shall="" be="" exempted="" from="" this="" indicator="" unless="" the="" pha="" requests="" to="" be="" assessed="" under="" the="" indicator="" at="" the="" time="" of="" the="" phmap="" certification="" submission.="" comment:="" three="" comments="" stated="" that="" the="" criteria="" listed="" for="" this="" indicator="" are="" measures="" of="" process="" and="" not="" necessarily="" results.="" a="" more="" appropriate="" measure="" would="" include="" actual="" crime="" data.="" also,="" indicators="" of="" vacancy="" percentage="" and="" financial="" management="" are="" directly="" related="" to="" the="" degree="" of="" security="" in="" the="" developments.="" response:="" this="" indicator="" has="" been="" revised="" to="" reflect="" the="" comments="" received="" and="" its="" components="" now="" more="" accurately="" measure="" results.="" the="" department="" agrees="" that="" vacancies="" and="" financial="" management="" are="" directly="" related="" to="" security="" in="" the="" developments,="" but="" performance="" in="" these="" areas="" are="" measured="" under="" indicators="" #1="" and="" #6.="" comment:="" one="" comment="" suggested="" that="" this="" indicator="" shouldn't="" apply="" until="" adequate="" time="" is="" provided="" for="" phas="" to="" establish="" the="" proper="" documentation,="" reporting,="" and="" tracking="" criteria="" to="" successfully="" score="" in="" this="" indicator.="" another="" comment="" strongly="" requested="" that="" hud="" require="" data="" be="" provided="" beginning="" with="" the="" next="" fiscal="" year="" after="" the="" effective="" date="" of="" the="" provisions="" of="" this="" indicator="" because="" it="" would="" be="" very="" difficult="" to="" secure="" data="" from="" january="" 1,="" 1996,="" to="" the="" present.="" response:="" the="" department="" has="" determined="" that="" the="" new="" rule="" will="" apply="" to="" phas="" with="" fiscal="" years="" ending="" the="" quarter="" after="" the="" new="" rule="" is="" published="" in="" the="" federal="" register.="" comment:="" one="" comment="" stated="" that="" this="" indicator="" combines="" several="" distinct="" elements="" with="" the="" grading="" system,="" requiring="" a="" pha="" to="" score="" an="" a="" on="" each="" element="" to="" score="" an="" a="" on="" the="" indicator.="" these="" elements="" should="" be="" reorganized="" as="" separate="" components="" within="" the="" indicator="" and="" the="" indicator="" grade="" should="" be="" a="" composite="" of="" the="" component="" scores,="" as="" is="" the="" pattern="" in="" the="" other="" phmap="" indicators.="" response:="" the="" department="" will="" grade="" this="" indicator="" as="" a="" composite="" of="" the="" sub-component="" scores,="" as="" is="" the="" pattern="" in="" other="" phmap="" indicators.="" comment:="" one="" comment="" felt="" that="" security="" is="" not="" a="" property="" management="" issue,="" but="" a="" social="" issue="" related="" to="" phas,="" and="" was="" outside="" of="" the="" pha's="" control.="" another="" comment="" stated="" that="" reducing="" crime="" and="" drugs="" was="" an="" appropriate="" property="" management="" issue.="" response:="" in="" both="" public="" and="" private="" property="" management,="" crime="" and="" drug="" problems="" have="" a="" direct="" affect="" on="" property="" management.="" because="" of="" this,="" the="" department="" has="" determined="" it="" is="" critical="" that="" this="" indicator="" apply="" to="" all="" phas="" with="" 250="" units="" or="" more="" under="" management.="" comment:="" one="" comment="" stated="" that="" this="" indicator="" will="" be="" very="" difficult="" to="" grade="" objectively="" and="" consistently.="" the="" terms="" ``mechanism="" to="" track="" crime-related="" problems''="" and="" ``system="" for="" taking="" action''="" are="" vague="" and="" undefined="" and="" need="" clarification.="" two="" comments="" questioned="" the="" meaning="" of="" ``document="" results="" in="" screening="" out''="" various="" applicants.="" one="" comment="" felt="" the="" proposed="" measure="" of="" pha="" actions="" to="" appropriately="" screen="" out="" applicants="" and="" [[page="" 68924]]="" evict="" residents="" who="" engage="" in="" criminal="" activity="" is="" the="" only="" appropriate="" measure="" of="" pha="" management="" performance="" under="" this="" indicator.="" response:="" the="" department="" has="" rephrased="" this="" component="" and="" the="" first="" two="" phrases="" mentioned="" are="" no="" longer="" included="" in="" the="" new="" rule.="" the="" third="" phrase="" commented="" on="" has="" been="" revised="" to="" say,="" ``can="" document="" that="" it="" successfully="" screens="" out="" and="" denies="" admission="" to="" a="" public="" housing="" applicant="" who="" *="" *="" *''="" and="" ``can="" document="" that="" it="" successfully="" evicts="" a="" public="" housing="" resident="" who="" *="" *="" *''="" this="" new="" language="" more="" clearly="" embodies="" the="" intent="" of="" the="" one="" strike="" policy.="" the="" department="" agrees="" with="" the="" last="" comment.="" comment:="" one="" comment="" felt="" that="" the="" term="" ``crime''="" should="" be="" defined="" to="" avoid="" wasting="" time="" on="" crimes="" that="" do="" not="" affect="" the="" safety/security="" of="" residents.="" response:="" the="" department="" has="" not="" established="" one="" uniform="" national="" definition="" of="" crime,="" since="" different="" types="" of="" crime="" represent="" different="" threats,="" and="" vary="" among="" communities.="" hud="" believes="" each="" pha="" should="" decide="" what="" constitutes="" criminal="" violations="" that="" are="" unacceptable="" to="" the="" local="" community.="" in="" general,="" the="" crimes="" against="" which="" phas="" should="" screen="" applicants="" are="" those="" that="" would="" pose="" a="" threat="" to="" the="" health="" or="" safety="" of="" other="" residents="" or="" pha="" staff,="" or="" a="" financial="" risk="" to="" the="" pha.="" these="" crimes="" would="" be="" lease="" violations.="" these="" are="" the="" crimes="" against="" which="" applicants="" should="" be="" screened="" and="" for="" which="" violators="" be="" evicted.="" comment:="" one="" comment="" stated="" that="" sec.="" 901.110(e)="" should="" state="" that="" indicator="" #8="" should="" be="" excluded="" automatically="" for="" phas="" with="" 100="" or="" fewer="" units.="" response:="" the="" department="" agrees="" with="" this="" comment="" and="" the="" rule="" has="" been="" changed="" to="" state="" that="" this="" indicator="" does="" not="" apply="" to="" phas="" with="" fewer="" than="" 250="" units="" under="" management="" unless="" the="" pha="" requests="" to="" be="" assessed="" under="" the="" indicator="" at="" the="" time="" of="" the="" phmap="" certification="" submission.="" comment:="" one="" comment="" reflected="" that="" criteria="" #2="" and="" #3="" deal="" with="" screening="" and="" evictions.="" if="" hud="" is="" to="" allow="" a="" pha="" to="" self-certify="" on="" this="" indicator,="" the="" pha="" should="" be="" required="" to="" submit="" evidence="" of="" policies="" and="" leases="" to="" support="" the="" certification.="" response:="" the="" department="" disagrees="" and="" is="" requiring="" that="" a="" pha="" maintain="" supporting="" documentation="" for="" all="" of="" the="" indicators="" it="" certifies="" to="" for="" post="" review="" by="" hud="" or="" the="" independent="" auditor="" rather="" than="" submit="" additional="" documentation="" at="" the="" time="" of="" certification.="" comment:="" one="" comment="" felt="" that="" too="" many="" communities="" already="" have="" police="" departments="" that="" avoid="" their="" responsibilities="" in="" public="" housing="" ``projects''="" for="" reasons="" that="" include="" the="" perception="" that="" public="" housing="" is="" a="" federal="" rather="" than="" local="" responsibility.="" this="" indicator="" plays="" into="" that="" mind="" set,="" and="" therefore,="" hurts="" the="" crime="" fighting="" goals="" phas="" and="" hud="" share.="" response:="" the="" department="" believes="" that="" the="" establishment="" of="" one="" strike="" leasing,="" eviction="" and="" related="" processes="" have="" already="" proven="" to="" be="" effective="" in="" crime/drug="" reduction.="" this="" indicator="" has="" been="" designed="" to="" measure="" the="" implementation="" of="" mechanisms="" that="" many="" phas="" have="" already="" used="" successfully="" in="" developing="" safe="" and="" secure="" environments="" for="" public="" housing="" residents.="" comment:="" one="" comment="" believes="" that="" this="" is="" the="" most="" important="" indicator="" for="" large="" phas="" where="" crime="" is="" a="" critical="" problem,="" and="" should="" have="" a="" greater="" weight="" than="" x1.="" response:="" the="" department="" agrees="" that="" this="" is="" a="" very="" important="" indictor.="" this="" indicator="" and="" indicator="" #7,="" resident="" involvement,="" have="" a="" combined="" total="" of="" 20="" points="" in="" a="" 100="" point="" scale.="" the="" department="" feels="" that="" this="" is="" an="" equitable="" distribution="" when="" the="" importance="" of="" all="" of="" the="" indicators="" are="" considered="" as="" a="" whole.="" comment:="" one="" comment="" thought="" that="" phas="" should="" request="" help="" from="" the="" hud="" state="" coordinator="" in="" getting="" assistance="" from="" law="" enforcement="" agencies.="" response:="" the="" department="" recommends="" that="" a="" pha="" first="" contact="" its="" state/area="" office="" for="" technical="" assistance="" in="" obtaining="" assistance="" from="" law="" enforcement="" agencies,="" and="" to="" explore="" alternative="" solutions.="" hud="" agrees="" that="" the="" state="" coordinator="" and="" the="" area="" representative="" should="" be="" advised="" of="" unresolved="" difficulties="" in="" implementing="" the="" one="" strike="" policy.="" the="" department="" will="" provide="" assistance,="" as="" appropriate,="" to="" further="" the="" implementation="" of="" the="" one="" strike="" policy.="" comment:="" one="" comment="" suggested="" that="" additional="" criteria="" should="" be="" considered="" that="" would="" give="" recognition="" to="" phas="" that="" have="" made="" tremendous="" progress="" in="" arresting="" crime="" and/or="" have="" established="" resident="" patrols="" to="" assist="" in="" crime="" reduction.="" response:="" the="" department="" appreciates="" the="" suggestion,="" but="" feels="" that="" the="" appropriate="" vehicle="" for="" such="" recognition="" is="" its="" performance="" awards="" ceremony.="" comment:="" one="" comment="" suggested="" there="" be="" a="" criterion="" that="" measures="" a="" pha's="" efforts="" to="" get="" resident="" involvement="" in="" citizen="" patrols.="" response:="" the="" department="" agrees="" that="" citizen="" patrols="" are="" very="" effective="" in="" helping="" to="" reduce="" incidence="" of="" crime="" in="" a="" community,="" and="" this="" criterion="" is="" indirectly="" measured="" under="" components="" #1="" and/or="" #4="" of="" this="" indicator.="" component="" #1,="" tracking="" and="" reporting="" crime="" related="" problems="" comment:="" thirty="" comments="" felt="" that="" phas="" should="" not="" be="" held="" accountable="" under="" indicator="" #8="" for="" cooperation="" with="" local="" police="" departments="" and="" other="" community="" agencies,="" as="" this="" partnership="" was="" beyond="" their="" control.="" at="" least="" one="" commenter="" expressed="" concern="" about="" being="" able="" to="" access="" criminal="" data.="" another="" commenter="" indicated="" that="" phas="" do="" not="" have="" the="" authority="" to="" address="" crime="" problems.="" response:="" as="" a="" result="" of="" these="" concerns,="" the="" department="" has="" determined="" that="" phas="" will="" not="" be="" assessed="" for="" partnerships="" with="" the="" local="" police="" departments="" and="" other="" local="" agencies,="" with="" the="" exception="" of="" grade="" a.="" grade="" a="" of="" this="" component="" has="" been="" revised="" to="" assess="" a="" pha's="" cooperative="" system="" for="" tracking="" and="" reporting="" incidents="" of="" crime="" to="" local="" police="" authorities.="" grades="" below="" an="" a="" assess="" only="" the="" reporting="" of="" incidents="" of="" crime="" to="" local="" police="" authorities.="" although="" phas="" will="" not="" be="" measured="" under="" this="" criterion="" for="" grades="" below="" an="" a,="" it="" is="" essential="" for="" phas="" to="" work="" closely="" with="" local="" and="" state="" agencies="" in="" order="" to="" operate="" effective="" crime="" and="" drug="" prevention="" programs.="" also,="" while="" phas="" do="" not="" specifically="" have="" the="" authority="" for="" arrests,="" they="" can="" utilize="" one="" strike="" to="" deny="" admission="" or="" evict="" known="" criminal="" violators.="" comment:="" five="" comments="" thought="" that="" documentation="" from="" local="" law="" enforcement="" agencies="" might="" be="" a="" method="" of="" reporting="" crime="" in="" small="" housing="" authorities.="" response:="" the="" department="" couldn't="" agree="" more.="" all="" phas="" are="" encouraged="" to="" develop="" partnership="" relationships="" with="" local="" law="" enforcement="" entities,="" and="" all="" phas="" should="" be="" keeping="" records="" of="" crime,="" reporting="" it="" to="" local="" law="" enforcement,="" administering="" rigorous="" screening="" criteria,="" and="" evicting="" residents="" who="" engage="" in="" criminal="" activity.="" comment:="" one="" comment="" stated="" that="" hud="" shouldn't="" ask="" phas="" to="" try="" to="" require="" their="" municipal="" police="" departments="" to="" act="" beyond="" the="" scope="" of="" the="" cooperation="" agreement.="" response:="" it="" is="" not="" intended="" that="" tracking="" and="" reporting="" crime-="" related="" problems="" would="" in="" any="" way="" mandate="" phas="" to="" require="" their="" municipal="" police="" departments="" to="" act="" beyond="" the="" scope="" of="" the="" cooperation="" agreement.="" a="" pha="" should="" always="" act="" within="" the="" scope="" of="" the="" cooperation="" agreement="" and="" should="" never="" require="" another="" agency="" to="" act="" beyond="" the="" scope="" of="" the="" agreement.="" [[page="" 68925]]="" comment:="" one="" comment="" stated="" that="" phas="" that="" complain="" that="" they="" cannot="" negotiate="" obtaining="" monthly="" calls="" for="" service="" confirm="" that="" they="" have="" poor="" relations="" with="" their="" local="" police="" departments.="" response:="" although="" this="" may="" be="" true,="" it="" is="" not="" necessarily="" through="" lack="" of="" trying.="" a="" pha="" should="" continue="" to="" negotiate="" working="" relationships="" with="" local="" law="" enforcement="" entities.="" component="" #4,="" grant="" program="" goals="" comment:="" five="" comments="" reflected="" that="" this="" indicator="" requires="" the="" documentation="" of="" achievement="" of="" a="" certain="" percentage="" of="" goals="" under="" resident="" initiative="" programs,="" but="" goals="" tend="" to="" be="" few="" and="" somewhat="" unquantifiable.="" such="" program="" goals="" should="" not="" be="" measured="" by="" phmap="" unless="" the="" goals="" had="" been="" articulated="" with="" the="" understanding="" that="" they="" were="" to="" be="" quantifiable="" and="" achievable="" within="" the="" grant="" term.="" there="" is="" general="" concern="" that="" measuring="" performance="" in="" meeting="" grant="" goals="" may="" be="" difficult="" to="" evaluate="" and="" may="" not="" be="" representative="" of="" performance.="" there="" is="" a="" clear="" incentive="" for="" phas="" to="" establish="" easily="" attainable="" goals="" to="" protect="" a="" good="" phmap="" score.="" four="" of="" these="" commenters="" felt="" that="" some="" other="" system="" of="" measurement="" should="" be="" found,="" or="" the="" indicator="" eliminated.="" one="" commenter="" proposed="" that="" the="" goals="" be="" set="" as="" high="" as="" possible="" and="" used="" as="" a="" target="" for="" achievement.="" seven="" commenters="" indicated="" that="" phas="" should="" not="" be="" rated="" on="" this="" indicator="" unless="" there="" was="" specific="" funding="" for="" all="" phas,="" and="" therefore,="" this="" program="" area="" was="" an="" unfunded="" mandate.="" one="" commenter="" stated="" that="" phas="" should="" only="" be="" rated="" on="" resident="" initiatives,="" not="" security.="" one="" commenter="" questioned="" why="" the="" goal="" did="" not="" track="" progress="" in="" goal="" achievement="" under="" the="" drug="" elimination="" program.="" response:="" the="" department="" believes="" that="" the="" establishment="" of="" one="" strike="" leasing,="" eviction="" and="" related="" processes="" have="" already="" proven="" to="" be="" effective="" in="" crime/drug="" reduction.="" this="" indicator="" has="" been="" designed="" to="" measure="" the="" implementation="" of="" mechanisms="" that="" many="" phas="" have="" already="" used="" successfully="" in="" developing="" safe="" and="" secure="" environments="" for="" public="" housing="" residents.="" grant="" goals="" are="" part="" of="" the="" overall="" evaluation="" of="" an="" application="" for="" funding.="" if="" a="" pha="" has="" unrealistic="" goals,="" they="" are="" either="" renegotiated,="" or="" the="" pha="" does="" not="" receive="" funding.="" the="" department="" has="" determined="" that="" security="" will="" continue="" to="" be="" a="" separate="" indicator="" because="" it="" is="" integral="" to="" good="" management="" and="" can="" be="" accomplished="" without="" additional="" funding,="" or="" with="" operating="" subsidy="" and="" comprehensive="" grant="" funds.="" phas="" should="" make="" use="" of="" these="" or="" other="" allowable="" funding="" sources="" to="" address="" crime="" and="" security="" problems.="" the="" department="" cannot="" restrict="" factors="" to="" those="" in="" the="" drug="" elimination="" program="" since="" crime="" problems="" affect="" all="" phas,="" not="" only="" those="" that="" have="" successfully="" competed="" for="" drug="" elimination="" grants.="" comment:="" one="" comment="" stated="" that="" goal="" achievement="" should="" be="" measured="" in="" terms="" of="" program="" implementation="" (which="" it="" is="" within="" the="" power="" of="" the="" pha),="" not="" impact="" on="" crime="" (which="" is="" beyond="" the="" control="" of="" the="" pha).="" a="" range="" from="" 85%="" to="" 100%="" should="" be="" establish="" for="" achieving="" an="" a="" grade.="" response:="" the="" department="" has="" determined="" that="" a="" pha="" will="" achieve="" a="" grade="" a="" for="" this="" indicator="" if="" it="" is="" meeting="" at="" least="" 90%="" of="" its="" goals="" under="" the="" implementation="" plan="" for="" any="" and="" all="" of="" these="" programs.="" data="" collection--sec.="" 901.100="" comment:="" thirty="" comments="" stated="" that="" 45="" days="" to="" submit="" the="" certification="" is="" a="" concern="" because="" phas="" are="" busy="" completing="" their="" year="" end="" work.="" it="" would="" cause="" a="" problem="" for="" small="" phas="" that="" have="" limited="" human="" resources="" to="" complete="" all="" other="" fiscal="" year="" end="" reports="" required.="" the="" time="" to="" submit="" should="" remain="" 90="" days.="" two="" comments="" stated="" that="" 45="" days="" to="" submit="" its="" certification="" would="" be="" sufficient="" time="" as="" long="" as="" there="" was="" a="" quorum="" for="" the="" board="" meeting,="" and="" as="" long="" as="" the="" process="" works="" smoothly.="" seven="" comments="" recommended="" that="" certifications="" should="" be="" submitted="" 60="" days="" following="" the="" end="" of="" a="" pha's="" fiscal="" year.="" response:="" hud="" is="" attempting="" to="" balance="" the="" need="" to="" make="" the="" phmap="" scoring="" as="" quick="" and="" timely="" as="" possible,="" so="" that="" it="" more="" accurately="" reflects="" a="" pha's="" current="" status,="" with="" the="" additional="" year="" end="" burden="" it="" represents="" to="" both="" phas="" and="" hud="" itself.="" in="" light="" of="" the="" above="" comments,="" the="" department="" has="" determined="" that="" a="" better="" balance="" is="" achieved="" with="" a="" 60,="" rather="" than="" 45,="" day="" submission="" period,="" and="" the="" rule="" is="" amended="" accordingly.="" comment:="" two="" comments="" pointed="" out="" that="" phas="" that="" request="" and="" receive="" an="" extension="" to="" submit="" their="" fiscal="" year="" end="" financial="" reports="" should="" also="" be="" granted="" an="" extension="" to="" file="" their="" phmap="" certification.="" large="" pha's="" must="" routinely="" ask="" for="" extensions="" to="" submit="" their="" year="" end="" financial="" statements.="" response:="" the="" department="" agrees="" with="" the="" comment.="" to="" satisfy="" administrative="" requirements,="" phas="" must="" submit="" extension="" requests="" or="" waiver="" requests="" for="" both="" their="" fiscal="" year="" end="" financial="" reports="" and="" their="" phmap="" certification.="" however,="" a="" state/area="" office="" may="" grant="" an="" extension="" for="" the="" submission="" of="" year="" end="" financial="" statements="" for="" a="" period="" of="" no="" more="" than="" 90="" calendar="" days.="" requests="" for="" extensions="" for="" more="" than="" 90="" calendar="" days,="" or="" requests="" for="" extensions="" in="" addition="" to="" the="" initial="" 90="" calendar="" days,="" shall="" be="" approved="" by="" the="" assistant="" secretary,="" as="" well="" as="" waivers="" for="" the="" submission="" of="" a="" pha's="" phmap="" certification.="" comment:="" two="" comments="" felt="" that="" phmap="" should="" be="" more="" flexible="" so="" as="" not="" to="" discourage="" otherwise="" outstanding="" performance="" due="" to="" late="" submission="" of="" required="" reports="" or="" a="" pha's="" inability="" to="" review="" and="" approve="" submissions="" more="" quickly.="" lateness="" should="" not="" have="" the="" effect="" of="" decimating="" the="" performance="" ratings="" in="" all="" areas="" rated="" by="" phmap.="" response:="" the="" department="" disagrees="" with="" this="" comment,="" and="" will="" retain="" the="" option="" which="" permits="" state/area="" offices="" to="" award="" a="" presumptive="" rating="" of="" failure="" in="" all="" of="" the="" phmap="" indicators="" if="" required="" reports="" have="" not="" been="" submitted="" to="" hud="" in="" a="" timely="" manner.="" hud="" believes="" that="" outstanding="" performance="" includes="" a="" pha's="" ability="" to="" submit="" in="" a="" timely="" manner="" required="" reports="" that="" are="" used="" to="" calculate="" the="" pha's="" phmap="" score.="" comment:="" two="" comments="" felt="" that="" the="" revisions="" to="" the="" rule="" may="" require="" major="" changes="" in="" the="" systems="" used="" to="" maintain="" records="" related="" to="" phmap.="" changes="" in="" a="" pha's="" information="" systems="" will="" be="" both="" costly="" and="" burdensome.="" it="" will="" require="" phas="" to="" focus="" important="" resources="" on="" administrative="" areas="" that="" will="" not="" improve="" the="" manner="" in="" which="" quality="" housing="" is="" provided="" to="" low-income="" families.="" response:="" hud="" recognizes="" that,="" at="" least="" initially,="" the="" changes="" made="" by="" this="" rule="" to="" improve="" phmap="" will="" impose="" a="" burden="" on="" phas="" who="" will="" have="" to="" make="" necessary="" adjustments="" in="" their="" information="" systems.="" as="" was="" the="" case="" for="" the="" previous="" rule,="" it="" is="" expected="" that="" as="" the="" collection="" and="" organization="" of="" the="" data="" will="" become="" more="" routine="" following="" the="" first="" submission,="" the="" associated="" burden="" will="" also="" decrease.="" comment:="" one="" comment="" felt="" that="" the="" time="" frame="" for="" submission="" should="" relate="" to="" the="" size="" of="" the="" pha.="" response:="" hud="" disagrees="" with="" this="" comment.="" the="" department="" has="" received="" comments="" from="" small="" phas="" citing="" small="" staffs="" and="" from="" large="" phas="" citing="" large="" administrative="" burdens="" to="" justify="" changes="" in="" the="" time="" frame="" for="" submission.="" the="" department="" has="" concluded="" that,="" until="" experience="" demonstrates="" otherwise,="" the="" same="" time="" frame="" for="" submissions="" should="" apply="" to="" all="" phas.="" [[page="" 68926]]="" comment:="" one="" comment="" felt="" that="" the="" certification="" form="" is="" cumbersome="" and="" includes="" requests="" for="" information="" currently="" available="" to="" hud,="" specifically="" financial="" data="" required="" to="" be="" provided="" to="" hud="" by="" all="" phas,="" or="" more="" information="" than="" currently="" required.="" it="" appears="" to="" require="" inclusion="" of="" data="" necessary="" for="" hud="" to="" perform="" or="" confirm="" the="" calculations="" made="" by="" the="" pha,="" and="" this="" is="" repetitive="" since="" pha="" audits="" ensure="" accuracy="" in="" reporting.="" this="" is="" contrary="" to="" hud's="" intent="" to="" require="" phas="" to="" certify="" to="" information="" otherwise="" not="" available.="" response:="" the="" worksheet="" and="" certification="" form="" have="" been="" redesigned="" to="" make="" them="" more="" user="" friendly,="" as="" applicable.="" hud="" welcomes="" additional,="" specific="" recommendations="" to="" improve="" these="" documents="" further.="" the="" department="" disagrees="" that="" the="" certification="" form="" requests="" information="" currently="" available="" to="" hud.="" for="" example,="" the="" new="" certification="" form="" financial="" management="" question="" for="" indicator="" #6="" requests="" the="" dollar="" amount="" of="" a="" pha's="" cash="" reserve="" available="" for="" operations.="" the="" requested="" financial="" information="" is="" not="" reported="" on="" any="" other="" required="" reporting="" submission.="" the="" department="" cannot="" rely="" totally="" on="" audit="" report="" confirmation="" because="" audit="" reports="" are="" not="" normally="" available="" until="" after="" the="" phmap="" process="" has="" been="" completed="" for="" the="" assessed="" fiscal="" year.="" the="" certification="" form="" requires="" a="" pha="" to="" state="" the="" raw="" data="" that="" are="" used="" to="" calculate="" the="" score="" of="" specific="" indicators="" to="" ensure="" accurate="" calculation.="" comment:="" one="" comment="" stated="" that="" if="" the="" purpose="" is="" to="" shorten="" the="" time="" it="" takes="" for="" a="" pha="" to="" learn="" its="" status/score,="" it="" may="" be="" more="" appropriate="" to="" reduce="" the="" amount="" of="" time="" that="" hud="" has="" to="" respond.="" it="" should="" not="" take="" any="" more="" than="" two="" weeks="" to="" review="" the="" pha="" submission="" (one="" page)="" and="" to="" perform="" any="" analysis="" or="" calculations="" for="" indicators="" that="" hud="" scores.="" response:="" hud="" is="" attempting="" to="" balance="" the="" need="" to="" make="" the="" phmap="" scoring="" as="" quick="" and="" timely="" as="" possible,="" so="" that="" it="" more="" accurately="" reflects="" a="" pha's="" current="" status,="" with="" the="" additional="" year="" end="" burden="" it="" represents="" to="" both="" phas="" and="" hud="" itself.="" in="" light="" of="" the="" above="" comments,="" the="" department="" has="" determined="" that="" a="" better="" balance="" is="" achieved="" with="" a="" 60,="" rather="" than="" 45,="" day="" submission="" period.="" state/area="" offices="" monitor="" other="" program="" areas="" in="" addition="" to="" the="" phmap,="" which="" is="" just="" one="" facet="" of="" the="" department's="" overall="" affordable="" rental="" housing="" efforts.="" in="" addition="" to="" the="" section="" 8="" program,="" state/area="" offices="" must="" administer="" such="" efforts="" as="" modernization="" programs,="" resident="" initiative="" programs,="" and="" drug="" elimination="" programs.="" the="" department="" feels="" that="" 60="" days="" for="" state/area="" offices="" to="" complete="" a="" phmap="" assessment="" is="" equitable="" in="" view="" of="" other="" workload="" requirements.="" comment:="" one="" comment="" reflected="" that="" in="" the="" preamble="" to="" the="" proposed="" rule,="" hud="" states="" that="" it="" will="" require="" state/area="" offices="" to="" give="" phas="" their="" phmap="" scores="" within="" 45="" days="" from="" certification,="" but="" the="" proposed="" rule's="" text="" does="" not="" contain="" that="" requirement.="" the="" commenter="" suggests="" that="" hud="" include="" that="" requirement="" in="" the="" text.="" response:="" state/area="" offices="" will="" be="" required="" to="" meet="" the="" 60="" day="" notification="" period="" by="" an="" internal="" directive="" that="" will="" be="" as="" binding="" upon="" them="" as="" a="" regulatory="" requirement.="" comment:="" one="" comment="" observed="" that="" sec.="" 901.100(b)(5)="" stipulates="" that="" a="" pha's="" certification="" will="" be="" post-reviewed="" by="" hud="" during="" the="" next="" on-site="" review,="" but="" is="" subject="" to="" verification="" at="" any="" time.="" what="" does="" this="" mean?="" it="" suggests="" that="" verification="" could="" be="" accomplished="" by="" some="" means="" other="" than="" on-site="" review.="" it="" is="" critical="" to="" clearly="" stipulate="" in="" the="" rule="" a="" standard="" and="" consistent="" approach="" that="" must="" be="" followed="" by="" all="" hud="" state/area="" offices="" in="" order="" to="" validate,="" document="" and="" justify="" a="" conclusion="" that="" a="" phmap="" score="" certified="" by="" a="" pha="" should="" be="" changed.="" response:="" on-site="" reviews="" are="" usually="" conducted="" pursuant="" to="" risk="" management,="" and="" sec.="" 901.100(b)(9)="" simply="" provides="" that="" certification="" verification="" can="" take="" place="" at="" any="" time="" notwithstanding="" the="" regularly="" scheduled="" on-site="" reviews.="" in="" addition,="" the="" rule="" does="" clearly="" stipulate="" a="" standard="" and="" consistent="" approach="" to="" validate,="" document="" and="" justify="" a="" conclusion="" that="" a="" phmap="" score="" certified="" by="" a="" pha="" should="" be="" changed.="" the="" verification="" language="" in="" sec.="" 901.100(b)(9)="" is="" related="" to="" the="" provision="" at="" sec.="" 901.115(k),="" that="" permits,="" in="" exceptional="" circumstances="" that="" constitute="" a="" standard="" and="" consistent="" approach,="" a="" state/area="" office="" to="" reinstate="" any="" review="" as="" necessary="" to="" address="" particular="" deficiencies,="" or="" deny="" or="" rescind="" incentives="" or="" high="" performer="" status,="" even="" though="" a="" pha="" has="" satisfied="" all="" of="" the="" indicators="" for="" high="" or="" standard="" performer="" designation.="" comment:="" one="" comment="" asked="" exactly="" what="" information="" does="" hud="" expect="" to="" derive="" from="" ``existing="" reporting="" and="" data="" forms?''="" as="" written,="" only="" indicator="" #2="" can="" be="" scored="" by="" hud="" without="" complete="" and="" total="" reliance="" on="" pha="" self-certified="" data.="" this="" is="" an="" enormous="" flaw="" in="" any="" allegedly="" objective="" assessment="" process,="" including="" phmap.="" response:="" the="" assessment="" process="" is="" the="" result="" of="" balancing="" the="" two="" objectives="" of="" maximizing="" reliability="" and="" minimizing="" the="" administrative="" burden.="" the="" department="" realizes="" that="" the="" extensive="" demands="" upon="" both="" its="" own="" and="" phas'="" resources="" limit="" what="" may="" be="" appropriately="" imposed="" upon="" phas="" and="" adequately="" monitored="" by="" the="" department.="" hud's="" reliance="" upon="" pha-certified="" data="" is="" backed="" up="" by="" the="" admittedly="" small="" number="" of="" on-site="" reviews="" hud="" is="" able="" to="" conduct,="" but="" these="" reviews="" do="" indicate="" substantial,="" good="" faith="" compliance.="" hud="" attempts="" to="" target="" its="" monitoring="" resources="" as="" efficiently="" as="" possible="" by="" focusing="" on="" troubled="" or="" near="" troubled="" phas="" or="" phas="" in="" which="" the="" factors="" identified="" in="" sec.="" 901.115(k)="" of="" the="" rule="" are="" present.="" the="" required="" supplement="" to="" the="" independent="" audit="" requires="" a="" pha's="" independent="" audit="" to="" ascertain="" whether="" the="" pha="" maintains="" the="" data="" necessary="" to="" support="" its="" phmap="" certification="" and="" whether="" the="" phmap="" data="" are="" consistent="" with="" the="" pha's="" other="" records.="" hud="" will="" continue="" to="" consider="" ways="" in="" which="" the="" reliability="" of="" phmap="" may="" be="" improved.="" in="" addition,="" the="" new="" rule="" has="" been="" revised="" to="" state="" that="" a="" pha="" may="" not="" appeal="" its="" phmap="" score="" to="" the="" state/area="" office="" if="" the="" reason="" the="" pha="" received="" a="" failing="" in="" any="" indicator="" or="" component="" was="" due="" to="" the="" fact="" that="" the="" pha="" did="" not="" provide="" justifying="" documentation="" to="" the="" independent="" auditor="" for="" the="" indicator(s)="" the="" pha="" certified="" to.="" comment:="" one="" comment="" stated="" that="" the="" clause="" that="" allows="" phas="" to="" include="" in="" their="" phmap="" certifications="" ``any="" information="" bearing="" on="" the="" accuracy="" or="" completeness="" of="" the="" data="" being="" used="" by="" hud="" in="" grading="" an="" indicator''="" is="" confusing.="" a="" pha="" should="" certify="" to="" the="" correct="" data="" in="" exactly="" the="" manner="" prescribed="" by="" the="" phmap="" process.="" if="" a="" pha="" believes="" that="" the="" data="" does="" not="" fairly="" represent="" its="" performance,="" it="" should="" submit="" a="" ``modification''="" request,="" but="" the="" data="" in="" the="" certification="" shouldn't="" be="" changed.="" response:="" the="" rule,="" at="" sec.="" 901.100(b)(3),="" provides="" that="" a="" pha="" may="" include="" such="" information="" in="" its="" certification,="" rather="" than="" through="" an="" exclusion="" or="" modification="" request,="" and="" that="" hud="" will="" consider="" the="" information="" in="" grading="" the="" affected="" indicator.="" the="" intent="" is="" not="" to="" encourage="" a="" result="" that="" the="" certified="" information="" would="" be="" changed,="" but="" to="" encourage="" a="" pha="" to="" submit="" corrected="" data,="" late="" reports,="" or="" previously="" omitted="" required="" data="" at="" the="" time="" it="" submits="" its="" phmap="" certification.="" this="" provision="" allows="" more="" flexibility="" in="" the="" phmap="" process,="" and="" helps="" ensure="" that="" the="" most="" recent="" data="" is="" available="" to="" use="" in="" completing="" the="" phmap="" assessment.="" comment:="" one="" comment="" felt="" that="" the="" provision="" that="" suggests="" a="" pha="" could="" get="" [[page="" 68927]]="" a="" presumptive="" f="" in="" all="" phmap="" indicators="" if="" the="" certification="" is="" not="" submitted="" on="" time="" should="" be="" clarified.="" does="" this="" mean="" all="" indicators="" or="" only="" those="" which="" rely="" on="" the="" certification?="" response:="" the="" language="" states="" all="" indicators.="" this="" provision="" at="" sec.="" 901.100="" (b)(4)="" gives="" hud="" a="" direct="" and="" timely="" way="" of="" enforcing="" the="" certification="" requirement.="" although="" compliance="" with="" phmap="" is="" the="" norm="" among="" phas,="" if="" failure="" to="" provide="" the="" certification="" would="" only="" result="" in="" failing="" grades="" for="" the="" indicators="" subject="" to="" certification,="" a="" pha="" may="" decide="" to="" forgo="" submitting="" the="" certification="" when="" a="" passing="" grade="" could="" be="" achieved="" without="" it.="" this="" would="" defeat="" the="" purpose="" of="" phmap="" to="" assess="" the="" performance="" of="" a="" pha="" on="" all="" of="" the="" indicators.="" computing="" assessment="" score--sec.="" 901.105="" comment:="" two="" comments="" agree="" that="" the="" establishment="" of="" clear-cut="" adjustment="" guidelines="" is="" a="" good="" addition="" to="" phmap.="" response:="" the="" comment="" is="" noted="" by="" the="" department.="" comment:="" one="" comment="" stated="" that="" the="" physical="" condition="" of="" a="" project="" reflects="" not="" only="" the="" care="" and="" maintenance="" provided="" by="" the="" pha,="" it="" also="" reflects="" the="" attitudes="" and="" behavior="" of="" residents="" in="" some="" communities.="" those="" cases="" where="" the="" physical="" condition="" of="" the="" project="" does="" not="" improve="" regardless="" of="" a="" pha's="" efforts="" to="" improve="" and="" maintain="" the="" project="" in="" safe="" and="" sanitary="" condition="" should="" be="" considered="" as="" a="" condition="" beyond="" the="" pha's="" control,="" and="" a="" modification="" or="" exclusion="" should="" be="" allowed="" for="" this="" reason.="" response:="" the="" department="" disagrees="" with="" this="" comment.="" if="" a="" resident's="" attitudes="" and="" behavior="" cause="" maintenance="" or="" other="" physical="" problems,="" it="" then="" becomes="" a="" lease="" enforcement="" issue="" rather="" than="" automatic="" grounds="" for="" a="" modification="" or="" exclusion="" request="" due="" to="" conditions="" beyond="" a="" pha's="" control.="" however,="" hud="" considers="" modification="" and="" exclusion="" requests="" individually,="" and="" on="" a="" case="" by="" case="" basis,="" and="" grants="" or="" denies="" them="" as="" appropriate.="" comment:="" one="" comment="" stated="" that="" the="" definition="" of="" neighborhood="" is="" based="" on="" census="" tract="" and="" proposed="" that="" hud="" permits="" also="" the="" option="" of="" census="" block="" groups.="" census="" blocks="" allows="" for="" more="" specific="" definition="" of="" demographic="" characteristics.="" response:="" the="" department="" agrees="" that="" phas="" may="" use="" census="" blocks="" as="" well="" as="" census="" track="" data,="" as="" appropriate.="" comment:="" one="" comment="" stated="" that="" the="" proposed="" rule="" excludes="" developments="" that="" received="" comprehensive="" modernization="" within="" the="" past="" ten="" years="" from="" receiving="" additional="" weight="" for="" the="" physical="" condition="" factor.="" some="" phas="" receive="" comprehensive="" modernization="" for="" a="" portion="" of="" a="" larger="" community.="" when="" that="" happens,="" some="" proportional="" additional="" weight="" should="" be="" allowed="" for="" the="" physical="" condition="" factor.="" response:="" the="" department="" has="" determined="" that="" if="" only="" certain="" units="" or="" developments="" received="" substantial="" rehabilitation,="" the="" additional="" weight="" would="" be="" prorated="" to="" exclude="" the="" units="" or="" developments="" with="" substantial="" rehabilitation.="" the="" revision="" to="" the="" phmap="" handbook="" 7460.5="" will="" include="" examples="" of="" proration.="" comment:="" one="" comment="" suggested="" that="" an="" alternative="" for="" weighting="" could="" be="" to="" provide="" extra="" credit="" for="" phas="" that,="" because="" of="" aggressive="" efforts="" to="" develop="" joint="" programs,="" are="" able="" to="" mitigate="" the="" adverse="" conditions="" in="" the="" general="" vicinity="" of="" the="" developments="" as="" well="" as="" within="" them.="" response:="" the="" department="" may="" not="" provide="" an="" alternative="" to="" the="" physical="" condition="" and="" neighborhood="" environment="" factors="" because="" they="" are="" statutory.="" a="" pha's="" efforts="" to="" mitigate="" the="" adverse="" conditions="" in="" the="" general="" vicinity="" of="" the="" developments="" will="" be="" recognized="" by="" the="" resident="" involvement="" indicator="" to="" the="" extent="" the="" pha="" involves="" residents="" in="" such="" efforts.="" in="" general,="" it="" is="" expected="" that="" a="" well-managed="" pha="" would="" have="" a="" positive="" influence="" on="" the="" adverse="" conditions="" in="" its="" general="" vicinity,="" but="" the="" pha's="" primary="" responsibility="" is="" to="" conditions="" within="" its="" developments,="" and="" this="" remains="" the="" focus="" of="" phmap.="" comment:="" one="" comment="" felt="" that="" adjustments="" for="" physical="" condition="" and="" neighborhood="" environment="" are="" too="" liberal="" and="" can="" result="" in="" artificially="" inflated="" scores.="" response:="" the="" department="" disagrees="" with="" this="" comment,="" since="" the="" adjustments="" for="" physical="" condition="" and/or="" their="" neighborhood="" environment="" apply="" to="" the="" following="" three="" indicators="" only:="" indicator="" #1,="" vacancy="" percentage="" and="" unit="" turnaround;="" indicator="" #4,="" work="" orders;="" and="" indicator="" #5,="" annual="" inspection="" and="" condition="" of="" units="" and="" systems.="" comment:="" one="" comment="" reflected="" that="" sec.="" 901.105(d)(3)(ii)="" states="" that="" developments="" that="" have="" received="" comprehensive="" modernization="" within="" the="" past="" ten="" years="" are="" not="" eligible="" for="" a="" weighted="" score="" for="" the="" physical="" condition="" factor.="" are="" these="" developments="" eligible="" for="" the="" neighborhood="" factor?="" response:="" yes,="" these="" developments="" are="" eligible="" for="" the="" neighborhood="" environment="" factor.="" comment:="" one="" comment="" reflected="" that="" sec.="" 901.105(d)(3)(iii)="" states="" that="" a="" pha="" that="" receives="" a="" grade="" of="" a="" under="" indicators="" #4="" and="" #5="" may="" not="" claim="" the="" additional="" weight="" for="" indicator="" #1="" since="" the="" physical="" condition="" of="" its="" developments="" is="" not="" applicable.="" is="" a="" pha="" eligible="" for="" the="" additional="" weight="" for="" indicator="" #1="" using="" the="" neighborhood="" environment="" factor?="" response:="" yes,="" such="" a="" pha="" is="" eligible="" for="" the="" neighborhood="" environment="" factor.="" comment:="" one="" comment="" disagreed="" that="" a="" pha="" that="" receives="" a="" grade="" of="" a="" under="" indicators="" #4="" and="" #5="" may="" not="" claim="" the="" additional="" weight="" for="" indicator="" #1="" since="" the="" physical="" condition="" of="" its="" developments="" is="" not="" applicable.="" the="" ability="" of="" management="" to="" lease="" a="" vacant="" unit="" bears="" a="" direct="" relationship="" to="" its="" age="" and="" neighborhood="" environment.="" a="" pha's="" ability="" to="" market="" a="" unit="" and="" a="" housing="" applicant's="" decision="" to="" rent="" a="" unit="" is="" influenced="" by="" the="" neighborhood="" conditions="" and="" environment="" in="" which="" the="" development="" is="" located.="" accordingly,="" the="" additional="" weight="" for="" indicator="" #1="" should="" be="" permitted.="" another="" comment="" stated="" that="" a="" pha="" could="" be="" doing="" a="" good="" job="" of="" inspecting="" units="" and="" responding="" to="" work="" orders="" and="" still="" have="" a="" high="" vacancy="" rate="" at="" one="" or="" more="" of="" its="" developments="" due="" to="" neighborhood="" environment="" (if="" not="" also="" physical="" condition).="" a="" pha="" has="" the="" right="" to="" qualify="" under="" either="" one="" or="" both.="" response:="" the="" department="" disagrees="" with="" this="" comment,="" and="" maintains="" that="" if="" a="" unit="" is="" in="" good="" physical="" condition,="" the="" age="" of="" the="" unit="" has="" little="" bearing="" on="" the="" ability="" to="" rent="" the="" unit.="" hud="" believes="" that="" well="" maintained="" units,="" as="" evidenced="" by="" an="" outstanding="" rating="" in="" the="" areas="" of="" work="" orders="" and="" the="" condition="" of="" units="" and="" systems,="" are="" not="" eligible="" for="" the="" additional="" weight="" for="" physical="" condition,="" since="" indicators="" #4="" and="" #5="" account="" for="" the="" physical="" condition="" of="" a="" pha's="" units.="" the="" additional="" weight="" based="" upon="" neighborhood="" environment="" for="" indicator="" #1="" is="" permitted="" in="" such="" a="" case.="" comment:="" one="" comment="" stated="" that="" since="" phas="" already="" have="" the="" right="" to="" seek="" modifications="" or="" exclusions,="" rewarding="" phas="" with="" bonus="" points="" seems="" ludicrous.="" response:="" the="" additional="" weight="" given="" the="" factors="" of="" physical="" condition="" and="" neighborhood="" environment="" represents="" the="" department's="" implementation="" of="" the="" statutory="" mandate="" to="" have="" the="" weights="" assigned="" to="" various="" indicators="" reflect="" these="" factors.="" the="" use="" of="" exclusion="" and="" modification="" [[page="" 68928]]="" requests="" implements="" the="" statutory="" mandate="" that="" phas="" not="" be="" penalized="" as="" a="" result="" of="" circumstances="" beyond="" their="" control.="" comment:="" one="" comment="" stated="" that="" the="" additional="" points="" made="" available="" to="" phas="" that="" demonstrate="" a="" significant="" number="" of="" units="" subject="" to="" adverse="" physical="" conditions="" or="" neighborhood="" environment,="" seem="" significant.="" if="" over="" 50%="" of="" a="" pha's="" units="" are="" subject="" to="" such="" conditions,="" a="" pha="" may="" get="" no="" more="" than="" one="" additional="" point="" for="" each="" of="" the="" three="" indicators="" that="" can="" be="" adjusted="" under="" the="" rule.="" response:="" this="" comment="" is="" correct,="" and="" the="" department="" believes="" that="" this="" represents="" a="" fair="" and="" equitable="" adjustment="" for="" the="" physical="" condition="" and="" neighborhood="" environment="" of="" a="" pha's="" developments.="" comment:="" one="" comment="" stated="" that="" the="" proposed="" rule="" also="" excludes="" ``developments="" that="" have="" received="" comprehensive="" modernization="" funds="" within="" the="" past="" ten="" year''="" from="" eligibility="" for="" the="" adjustment="" based="" on="" physical="" condition.="" this="" should="" be="" revised="" to="" make="" it="" clear="" that="" ``comprehensive="" modernization''="" does="" not="" simply="" mean="" the="" use="" of="" any="" cgp="" money,="" but="" contemplates,="" for="" example,="" ``significant="" capital="" investments="" that="" addresses="" more="" than="" 80%="" of="" a="" development's="" assessed="" capital="" need.''="" response:="" the="" department="" has="" defined="" modernization="" to="" include="" not="" only="" the="" ciap="" and="" cgp,="" but="" also="" the="" vacancy="" reduction="" program,="" hope="" vi="" program,="" and="" any="" successor="" program(s)="" to="" the="" cgp="" or="" the="" ciap.="" for="" indicator="" #2,="" modernization,="" all="" components="" apply="" to="" both="" the="" cgp="" and="" the="" ciap.="" only="" components="" #3,="" #4="" and="" #5="" apply="" to="" funding="" under="" the="" hope="" vi="" program="" and="" the="" vacancy="" reduction="" program="" for="" the="" assessment="" of="" indicator="" #2.="" comment:="" one="" comment="" thought="" this="" section="" should="" be="" more="" explicit="" in="" order="" to="" allow="" anyone="" to="" actually="" compute="" a="" pha's="" score="" following="" the="" instructions,="" and="" examples="" should="" be="" provided.="" response:="" the="" department="" agrees,="" and="" examples="" of="" how="" to="" compute="" a="" pha's="" score="" will="" be="" included="" in="" the="" revision="" to="" the="" phmap="" handbook="" 7460.5.="" comment:="" one="" comment="" stated="" that="" the="" provision="" for="" ``adjustment="" for="" physical="" condition="" and="" neighborhood="" environment''="" makes="" reference="" to="" units="" located="" in="" developments="" over="" 10="" years="" old="" that="" require="" major="" capital="" investment.="" hud="" needs="" to="" clarify="" how="" that="" applies="" to="" scattered-="" site="" projects="" where="" the="" age="" of="" the="" units="" and="" buildings="" will="" vary="" greatly.="" response:="" for="" scattered="" site="" projects,="" where="" the="" age="" of="" the="" units="" and="" buildings="" vary,="" the="" date="" of="" full="" availability="" (dofa)="" should="" be="" applied.="" normally,="" when="" a="" pha="" purchases="" scattered="" site="" units,="" they="" are="" rehabilitated="" prior="" to="" occupancy.="" dofa="" also="" applies="" in="" cases="" where="" scattered="" site="" units="" are="" built="" under="" new="" construction.="" comment:="" one="" comment="" pointed="" out="" that="" hud="" needs="" to="" define="" how="" to="" compute="" the="" 5%="" (of="" the="" units)="" to="" which="" the="" limiting="" conditions="" apply="" for="" the="" ``adjustment="" for="" physical="" condition="" and="" neighborhood="" environment.''="" is="" it="" individually="" computed="" or="" cumulative="" (i.e.,="" 5%="" of="" physical="" condition="" vs.="" 3%="" of="" physical="" condition="" plus="" 2%="" of="" neighborhood="" environment="" condition).="" response:="" the="" percent="" of="" units="" to="" which="" the="" limiting="" conditions="" apply="" is="" computed="" as="" the="" total="" number="" for="" physical="" condition="" (pc)="" and="" neighborhood="" environment="" (ne)="" with="" each="" unit="" counted="" only="" once="" if="" both="" apply="" to="" it="" (so="" that="" a="" pha="" with="" 10="" units="" both="" pc="" and="" ne="" +="" 5="" units="" pc="" only="" +="" 5="" units="" ne="" only="" would="" have="" 20="" eligible="" units="" that="" would="" be="" used="" for="" purposes="" of="" computing="" the="" percent="" applicable="" to="" indicators="" #1,="" #4="" and="" #5;="" unless="" the="" pha="" received="" a="" grade="" of="" a="" in="" indicators="" #4="" and="" #5,="" then="" indicators="" #4="" and="" #5="" would="" have="" zero="" eligible="" units,="" and="" indicator="" #="" 1="" would="" have="" 15="" eligible="" units="" for="" purposes="" of="" computing="" the="" percent).="" this="" procedure="" of="" adding="" the="" number="" of="" units="" to="" which="" both="" conditions="" apply="" to="" the="" number="" of="" units="" to="" which="" only="" one="" condition="" applies="" is="" followed="" because="" the="" rule="" reads,="" ``any="" pha="" with="" 5%="" or="" more="" of="" its="" units="" subject="" to="" either="" or="" both="" of="" the="" above="" conditions="" shall,="" if="" they="" so="" choose,="" be="" issued="" a="" weighted="" phmap="" score="" in="" addition="" to="" the="" regular="" score="" based="" solely="" upon="" the="" certification="" of="" the="" pha.''="" comment:="" one="" comment="" stated="" that="" the="" provision="" for="" ``adjustment="" for="" physical="" condition="" and="" neighborhood="" environment''="" states="" that="" phas="" will="" certify="" to="" ``which="" of="" the="" indicators="" the="" extra="" scoring="" will="" be="" added.''="" how="" is="" the="" pha="" to="" make="" this="" determination?="" what="" would="" preclude="" the="" pha="" to="" add="" the="" points="" to="" all="" three="" indicators?="" the="" sample="" certification="" form="" offers="" no="" clarification="" of="" this="" issue,="" nor="" does="" the="" rule.="" the="" pha="" should="" be="" required="" to="" certify="" the="" data="" used="" to="" claim="" the="" ``adjustment.''="" response:="" a="" pha="" does="" certify="" to="" the="" adjustment="" for="" physical="" condition="" (pc)="" and="" neighborhood="" environment="" (ne).="" it="" could="" and="" should="" add="" the="" points="" to="" each="" of="" the="" three="" indicators="" to="" which="" the="" weights="" apply.="" example:="" a="" 100="" unit="" (scattered="" site)="" pha="" has="" 10="" units="" both="" pc="" and="" ne="" +="" 10="" units="" pc="" only="" +="" 10="" units="" ne="" only.="" in="" this="" case="" .8="" is="" added="" to="" indicators="" #1,="" #4="" and="" #5="" (because="" both="" or="" either="" conditions="" apply="" to="" at="" least="" 30%="" but="" less="" than="" 40%="" of="" the="" units,="" and="" .8="" is="" the="" weight="" added="" for="" this="" percentage="" range),="" except="" if="" indicators="" #4="" and="" #5="" get="" grades="" of="" a,="" zero="" is="" added="" to="" indicators="" #4="" and="" #5,="" and="" .7="" is="" added="" to="" indicator="" #1="" (because="" pc="" does="" not="" apply="" for="" purposes="" of="" indicator="" #1="" when="" indicators="" #4="" and="" #5="" get="" grades="" of="" a,="" and="" so="" the="" 10="" units="" would="" not="" be="" counted="" for="" indicator="" #1,="" leaving="" 20="" eligible="" units,="" 20%="" of="" the="" total,="" for="" which="" .7="" is="" the="" added="" weight).="" comment:="" one="" comment="" suggested="" that="" sec.="" 901.105(d)(3)(ii)="" should="" read:="" units="" in="" developments="" that="" have="" received="" comprehensive="" modernization="" within="" the="" past="" ten="" years="" are="" not="" eligible="" to="" be="" included="" in="" the="" calculation="" of="" total="" pha="" units="" subject="" to="" ``management="" difficulties''="" due="" to="" physical="" condition="" only.="" response:="" the="" department="" agrees="" and="" has="" rephrased="" that="" section="" to="" read:="" units="" in="" developments="" that="" have="" received="" substantial="" rehabilitation="" within="" the="" past="" ten="" years="" are="" not="" eligible="" to="" be="" included="" in="" the="" calculation="" of="" total="" pha="" units="" due="" to="" physical="" condition="" only.="" comment:="" one="" comment="" felt="" that="" sec.="" 901.105(d)(3)(iv)="" should="" be="" clarified="" since="" it="" is="" confusing.="" response:="" the="" department="" agrees,="" and="" this="" has="" been="" clarified="" in="" the="" new="" rule="" to="" state="" that="" a="" pha's="" score="" for="" indicators="" #1,="" #4="" and/or="" #5,="" after="" any="" adjustment(s)="" for="" physical="" condition="" and/or="" neighborhood="" environment,="" may="" not="" exceed="" the="" maximum="" potential="" weighted="" points="" assigned="" to="" the="" respective="" indicator(s).="" pha="" request="" for="" exclusion="" or="" modification--sec.="" 901.110="" comment:="" two="" comments="" stated="" that="" the="" previous="" interim="" rule="" permits="" a="" pha="" to="" submit="" a="" request="" if="" the="" pha="" were="" to="" discover="" and="" demonstrate="" ``highly="" unusual="" circumstances.''="" the="" commenters="" urge="" hud="" to="" retain="" this="" mechanism="" to="" permit="" consideration="" of="" first-time="" exclusion/="" modification="" requests="" at="" the="" appellate="" level.="" it="" is="" recognized="" and="" expected="" that="" hud="" would="" subject="" such="" requests="" to="" strict="" scrutiny,="" but="" there="" is="" no="" reason="" why="" such="" matters="" cannot="" be="" solved="" by="" state/area="" office="" directors="" of="" public="" housing="" as="" part="" of="" the="" appellate="" process="" rather="" than="" at="" the="" assistant="" secretary="" level.="" response:="" this="" stipulation="" was="" eliminated="" because="" it="" restricted="" the="" grounds="" for="" appeal.="" comment:="" one="" comment="" reflected="" that="" this="" section="" requires="" that="" a="" request="" for="" an="" exclusion="" or="" modification="" be="" submitted="" at="" the="" time="" of="" certification.="" there="" has="" been="" no="" understanding="" from="" hud="" on="" how="" it="" grades="" certain="" items="" or="" [[page="" 68929]]="" what="" time="" periods="" are="" considered="" for="" the="" indicators="" that="" hud="" grades.="" phas="" should="" have="" the="" right="" to="" request="" an="" exclusion="" or="" modification="" on="" the="" hud-graded="" indicators="" after="" hud="" has="" announced="" the="" preliminary="" grades="" on="" them.="" response:="" the="" indicators="" scored="" by="" hud="" are="" based="" on="" information="" that="" a="" pha="" submits="" to="" hud="" on="" other="" reports.="" therefore,="" a="" pha="" should="" know="" what="" its="" hud="" graded="" scores="" are="" based="" on.="" the="" interim="" and="" proposed="" rules="" clearly="" state="" ``annual''="" and="" ``immediate="" past="" fiscal="" year,''="" except="" for="" components="" #2-1="" and="" #2-2,="" where="" they="" clearly="" state="" federal="" fiscal="" year.="" pha="" score="" and="" status--sec.="" 901.115="" comment:="" seventeen="" comments="" felt="" that="" denying="" high="" performer="" status="" to="" a="" pha="" if="" it="" scores="" below="" a="" c="" on="" any="" indicator="" is="" not="" a="" good="" change.="" it="" does="" not="" make="" sense="" to="" punish="" a="" pha="" for="" only="" one="" low="" score;="" the="" total="" numerical="" rating="" should="" be="" the="" only="" determination="" in="" high/="" standard/troubled="" performer.="" the="" commenters="" noted="" that="" under="" the="" proposed="" rule,="" phas="" with="" the="" same="" overall="" score="" could="" receive="" different="" ratings;="" this="" does="" not="" seem="" equitable.="" the="" overall="" performance="" of="" the="" pha="" operation="" is="" being="" graded,="" not="" an="" indicator.="" denying="" high="" performer="" status="" to="" a="" pha="" that="" gets="" less="" than="" a="" c="" in="" any="" indicator="" should="" be="" dropped="" from="" the="" rule.="" two="" other="" comments="" felt="" that="" a="" system="" that="" really="" identifies="" and="" rewards="" outstanding="" performance="" is="" much="" more="" desirable.="" response:="" the="" department="" believes="" that="" high="" performer="" designation="" should="" identify="" outstanding="" management="" performance,="" and="" thus="" stipulates="" that="" a="" pha="" shall="" not="" be="" designated="" as="" a="" high="" performer="" if="" it="" receives="" less="" than="" a="" c="" for="" any="" indicator.="" the="" intent="" in="" not="" to="" punish="" a="" pha,="" but="" rather="" to="" recognize="" phas="" for="" outstanding="" management="" performance.="" it="" has="" always="" been="" possible="" for="" phas="" to="" have="" the="" same="" score,="" but="" a="" different="" designation,="" when="" high="" performer="" designation="" was="" awarded="" or="" when="" troubled="" designation="" was="" withheld.="" comment:="" one="" comment="" notes="" that="" sec.="" 901.115(g)(1)="" stipulates="" that="" phmap="" incentives="" or="" high="" performer="" status="" could="" be="" rescinded="" in="" the="" case="" of="" a="" pha="" that="" is="" operating="" under="" a="" special="" agreement="" with="" hud.="" the="" commenter="" asks="" what="" a="" special="" agreement="" is="" and="" how="" does="" it="" bear="" on="" a="" pha's="" actual="" performance="" rating="" under="" phmap?="" three="" additional="" comments="" strongly="" opposes="" sections="" 901.115(g)(2)="" and="" (3),="" which="" would="" allow="" the="" state/area="" hud="" office="" to="" deny="" or="" rescind="" incentives="" or="" high="" performer="" status="" for="" phas="" either="" involved="" in="" litigation="" that="" bears="" directly="" upon="" the="" management="" of="" phas="" or="" are="" operating="" under="" a="" court="" order.="" hud="" should="" require="" that="" the="" ``specific="" explanation''="" referred="" to="" in="" sec.="" 901.115(g)="" include,="" at="" least,="" a="" summary="" of="" proven="" fraud,="" misconduct,="" or="" substantial="" noncompliance.="" phas="" that="" can="" achieve="" high="" performer="" status="" while="" operating="" under="" these="" conditions="" should="" not="" be="" penalized="" by="" hud="" for="" continuing="" to="" manage="" operations="" efficiently="" and="" demonstrate="" positive="" effort="" to="" eliminate="" obstacles="" while="" improving="" housing="" conditions="" for="" families.="" response:="" section="" 901.115(k)="" only="" delineates="" the="" exceptional="" circumstances="" under="" which="" state/area="" offices="" may="" deny="" or="" rescind="" initiatives="" or="" high="" performer="" status.="" such="" actions="" are="" not="" automatic="" when="" these="" exceptional="" circumstances="" are="" present,="" but="" are="" determined="" on="" a="" case="" by="" case="" basis="" with="" consideration="" of="" the="" specific="" circumstances="" involved.="" in="" addition,="" these="" determinations="" may="" be="" appealed="" to="" the="" assistant="" secretary,="" providing="" an="" additional="" safeguard="" that="" they="" will="" not="" be="" made="" without="" due="" deliberation.="" comment:="" one="" comment="" suggested="" that="" hud="" should="" submit="" a="" written="" explanation="" of="" any="" phmap="" score="" of="" c="" or="" below="" on="" any="" indicator="" not="" directly="" certified="" by="" the="" pha="" because="" phas="" are="" required="" to="" submit="" an="" improvement="" plan="" for="" indicators="" with="" grades="" under="" c.="" response:="" the="" indicators="" scored="" by="" hud="" are="" based="" on="" information="" that="" a="" pha="" submits="" to="" hud="" on="" other="" reports.="" therefore,="" a="" pha="" should="" know="" on="" what="" its="" hud="" graded="" scores="" are="" based.="" improvement="" plans="" are="" only="" required="" for="" a="" grade="" of="" f="" and="" a="" state/area="" office="" may="" require="" it="" for="" every="" indicator="" with="" a="" grade="" of="" d="" or="" e.="" comment:="" one="" comment="" observed="" that="" in="" the="" preamble="" to="" the="" previous="" interim="" rule,="" hud="" stated="" that="" it="" would="" address="" how="" the="" state/area="" offices="" will="" determine="" at="" which="" phas="" it="" would="" conduct="" confirmatory="" reviews="" in="" handbook="" guidance.="" hud="" should="" at="" least="" provide="" handbook="" guidance="" on="" the="" factors="" that="" the="" state/area="" office="" will="" consider="" to="" select="" a="" pha="" for="" a="" confirmatory="" review.="" response:="" the="" department="" has="" provided="" such="" guidance="" in="" the="" field="" office="" monitoring="" of="" public="" housing="" agencies="" (phas)="" handbook="" 7460.7="" rev-2.="" comment:="" one="" comment="" stated="" that="" sec.="" 901.115(e)="" suggests="" that="" a="" ``small''="" pha="" (100="" units="" or="" less)="" will="" not="" be="" designated="" as="" mod-="" troubled,="" no="" matter="" how="" bad="" their="" program="" is.="" this="" is="" not="" reasonable.="" response:="" section="" 901.115(e)="" of="" the="" proposed="" rule="" reads,="" ``phas="" with="" more="" than="" 100="" units="" that="" achieve="" a="" total="" weighted="" score="" of="" less="" than="" 60%="" on="" indicator="" (2),="" modernization,="" shall="" be="" designated="" as="" mod-="" troubled.''="" the="" department="" agrees="" that="" these="" ``small''="" phas="" should="" also="" be="" assessed="" on="" their="" modernization="" program,="" and="" will="" amend="" this="" section="" accordingly.="" comment:="" one="" comment="" stated="" that="" in="" sec.="" 901.115(h),="" the="" reference="" to="" ``paragraph="" (e)''="" should="" be="" a="" reference="" to="" ``paragraph="" (g).''="" response:="" hud="" agrees="" and="" has="" amended="" sec.="" 901.115(l)="" to="" reference="" sec.="" 901.115(k).="" posting="" of="" pha="" phmap="" scores="" comment:="" four="" comments="" felt="" that="" the="" posting="" of="" pha="" phmap="" scores="" should="" be="" required="" at="" all="" offices,="" rather="" than="" in="" all="" developments,="" since="" many="" developments="" are="" too="" small="" to="" have="" an="" office="" or="" any="" other="" building="" where="" such="" notice="" could="" be="" posted,="" and="" it="" is="" virtually="" impossible="" to="" do="" with="" scattered="" site="" projects.="" notice="" can="" be="" mailed="" to="" residents="" where="" it="" is="" impractical="" or="" inappropriate="" to="" post="" the="" notice.="" response:="" the="" department="" agrees="" and="" has="" amended="" this="" section="" accordingly.="" comment:="" three="" comments="" felt="" that="" it="" was="" not="" clear="" why="" the="" posting="" of="" phmap="" scores="" is="" necessary,="" or="" why="" are="" phas="" being="" singled="" out="" when="" reviews="" of="" other="" public="" entities="" are="" not="" held="" up="" for="" public="" scrutiny.="" to="" post="" a="" score="" with="" no="" explanation="" is="" silly="" and="" there="" would="" be="" no="" way="" to="" post="" an="" explanation.="" by="" the="" same="" token,="" to="" publish="" in="" the="" federal="" register="" is="" not="" really="" fair="" without="" offering="" a="" pha="" an="" opportunity="" to="" explain="" why="" they="" may="" have="" scored="" poorly="" in="" a="" particular="" area.="" response:="" this="" provision="" was="" recommended="" by="" the="" office="" of="" management="" and="" budget="" in="" the="" course="" of="" its="" review="" of="" the="" proposed="" rule="" in="" accordance="" with="" executive="" order="" 12866.="" these="" requirements="" are="" intended="" to="" make="" the="" community,="" and="" tenants="" in="" particular,="" aware="" of="" their="" pha's="" management="" score="" and="" to="" encourage="" dialogue="" among="" the="" pha,="" residents="" and="" the="" community.="" comment:="" one="" comment="" felt="" that="" the="" rule="" should="" make="" clear="" that="" phas="" are="" only="" required="" to="" post="" and="" report="" out="" final="" phmap="" scores="" and="" do="" not="" have="" to="" post="" and="" report="" any="" score="" that="" is="" appealed="" in="" a="" timely="" basis="" and="" is="" under="" consideration="" by="" hud.="" response:="" the="" department="" agrees="" and="" has="" amended="" this="" section="" accordingly.="" comment:="" one="" comment="" observed="" that="" sec.="" 901.120(b)="" references="" a="" ``handicapped''="" score.="" this="" term="" is="" not="" used="" elsewhere="" in="" the="" rule.="" it="" should="" be="" changed="" to="" ``adjustment="" for="" physical="" [[page="" 68930]]="" condition="" and="" neighborhood="" environment''.="" response:="" the="" department="" agrees="" and="" will="" amend="" this="" section="" accordingly.="" comment:="" one="" comment="" stated="" that="" sec.="" 901.120(c)="" should="" explicitly="" state="" that="" a="" normal="" ``confirmatory="" review''="" is="" to="" be="" conducted="" prior="" to="" the="" issuance="" of="" the="" initial="" notification="" letter.="" this="" way,="" the="" statement="" in="" paragraph="" (c)(1)="" about="" ``exceptional="" circumstance''="" will="" make="" sense.="" response:="" the="" department="" agrees="" and="" has="" added="" appropriate="" language="" to="" the="" rule.="" comment:="" one="" comment="" reflects="" that="" sec.="" 901.120(c)(1)="" states="" that="" the="" results="" of="" a="" confirmatory="" review="" should="" be="" explained="" in="" writing="" if="" the="" review="" is="" conducted="" after="" the="" issuance="" of="" the="" initial="" notification="" letter.="" the="" results="" of="" confirmatory="" reviews="" should="" always="" be="" explained="" in="" writing="" to="" the="" pha,="" regardless="" of="" when="" conducted.="" response:="" the="" department="" agrees="" and="" has="" added="" appropriate="" language="" to="" the="" rule.="" making="" the="" right="" decision="" the="" department="" specifically="" expressed="" its="" interest="" in="" receiving="" comments="" concerning="" ways="" in="" which="" phas="" can="" receive="" positive="" recognition="" within="" the="" context="" of="" this="" regulation="" for="" making="" the="" right="" decision.="" comment:="" one="" comment="" stated="" that="" it="" is="" unreasonable="" to="" put="" forth="" an="" assessment="" system="" which="" rewards="" highly="" graded="" performance="" and="" not="" expect="" actions="" to="" be="" guided="" by="" that="" system.="" response:="" the="" department="" recognizes="" that="" phmap="" scores="" should="" not="" be="" interpreted="" as="" the="" sole="" determinant="" of="" a="" pha's="" performance,="" nor="" should="" actions="" be="" solely="" guided="" by="" the="" phmap.="" good="" management="" recognizes="" and="" balances="" all="" variables="" in="" the="" day-to-day="" operations="" of="" a="" pha.="" comment:="" one="" comment="" agrees="" with="" a="" pha="" doing="" the="" right="" thing.="" if="" doing="" the="" right="" thing="" is="" important="" for="" the="" pha,="" then="" hud="" should="" also="" do="" the="" right="" thing.="" hud="" should="" ensure="" that="" phmap="" scores="" can="" be="" adjusted="" appropriately="" for="" any="" situation="" that="" results="" in="" lower="" grading="" of="" any="" indicator="" that="" occurs="" while="" doing="" the="" right="" thing.="" recognition="" is="" nice,="" but="" phmap="" should="" be="" designed="" in="" such="" a="" way="" as="" to="" actually="" reward="" phas="" for="" right="" decisions,="" not="" simply="" recognize="" them="" outside="" the="" program="" structure.="" response:="" the="" department="" believes="" that="" the="" ability="" to="" request="" a="" modification="" or="" exclusion="" of="" any="" indicator="" will="" usually="" result="" in="" the="" appropriate="" adjustments="" for="" making="" the="" right="" decision.="" the="" department="" will="" continue="" to="" explore="" ways="" to="" provide="" incentives="" to="" phas="" for="" making="" the="" right="" decisions="" that="" result="" in="" the="" long-term="" improvement="" of="" overall="" pha="" operations="" and="" of="" a="" pha's="" housing="" stock.="" in="" addition,="" the="" department="" will="" recognize="" such="" phas="" at="" the="" performance="" awards="" ceremony.="" state/area="" office="" functions--sec.="" 901.120="" comment:="" one="" comment="" reflected="" that="" sec.="" 901.120(2)(c)="" states="" the="" purpose="" of="" on-site="" confirmatory="" reviews="" but="" does="" not="" provide="" a="" standard="" applied="" circumstance="" under="" which="" or="" manner="" in="" which="" they="" will="" be="" carried="" out.="" the="" new="" rule="" should="" stipulate="" that="" an="" on-site="" confirmatory="" review="" is="" required="" before="" a="" state/area="" office="" can="" decide="" to="" change="" the="" phmap="" score="" certified="" by="" a="" pha,="" and="" should="" include="" specifically="" what="" documentation="" state/area="" offices="" must="" review="" as="" a="" basis="" for="" determining="" the="" validity="" of="" pha="" performance="" certifications.="" the="" confirmatory="" review="" documentation="" requirements="" should="" be="" adequate="" to="" meet="" hud's="" verification="" needs="" while="" at="" the="" same="" time="" comply="" with="" the="" paperwork="" reduction="" act.="" response:="" state/area="" offices="" conduct="" confirmatory="" reviews="" on="" a="" risk="" management="" basis,="" as="" discussed="" in="" the="" field="" office="" monitoring="" of="" public="" housing="" agencies="" (phas)="" handbook="" 7460.7="" rev-2.="" the="" confirmatory="" review="" guidebook="" and="" the="" revised="" phmap="" handbook,="" which="" will="" be="" issued="" subsequent="" to="" the="" publication="" of="" the="" new="" rule,="" will="" include="" appropriate="" guidance="" regarding="" the="" conduct="" of="" confirmatory="" reviews.="" the="" rule="" requires="" confirmatory="" reviews="" of="" phas="" with="" 100="" or="" more="" units="" before="" removing="" a="" designation="" of="" troubled="" or="" mod-troubled.="" in="" addition,="" the="" rule="" requires="" a="" confirmatory="" review="" of="" any="" pha="" that="" scores="" less="" than="" 60%="" for="" its="" total="" weighted="" score,="" or="" less="" than="" 60%="" on="" indicator="" #2,="" modernization,="" before="" the="" designation="" of="" a="" pha="" as="" troubled="" or="" mod-="" troubled.="" although="" troubled="" or="" mod-troubled="" pre-designation="" confirmatory="" reviews="" were="" not="" previously="" mandatory,="" the="" department="" has="" determined="" that="" such="" reviews="" can="" be="" significant="" elements="" of="" its="" risk="" management="" approach="" to="" phmap="" and="" can="" maximize="" the="" efficient="" use="" of="" its="" limited="" resources.="" appeals--sec.="" 901.125="" comment:="" one="" comment="" urged="" hud="" to="" extend="" the="" deadline="" for="" appeals="" to="" the="" state/area="" to="" the="" 30th="" calendar="" day="" after="" the="" phmap="" initial="" notification="" letter="" is="" received.="" the="" deadline="" in="" the="" proposed="" rule="" of="" 15="" days="" after="" mailing="" is="" not="" sufficient="" time="" to="" file="" a="" carefully="" crafted="" appeal,="" nor="" should="" the="" time="" to="" appeal="" be="" measured="" from="" the="" date="" of="" mailing.="" the="" losing="" party="" in="" a="" federal="" lawsuit="" has="" 30="" days="" to="" appeal.="" hud="" should="" provide="" no="" less="" time="" to="" a="" pha="" that="" contends="" it="" has="" not="" been="" fairly="" or="" accurately="" assessed.="" response:="" the="" department="" has="" determined="" not="" to="" change="" the="" time="" frame="" for="" a="" pha="" to="" submit="" an="" appeal.="" the="" experience="" of="" hud="" has="" been="" that="" appeals="" received="" in="" headquarters="" are="" well="" thought="" out="" and="" presented.="" a="" pha="" that="" submits="" an="" appeal="" should="" not="" have="" to="" go="" through="" a="" lengthy="" process="" in="" order="" to="" appeal;="" the="" documentation="" and="" information="" should="" be="" readily="" available="" since="" the="" pha="" would="" have="" researched="" the="" information="" in="" order="" to="" submit="" its="" certification.="" comment:="" one="" comment="" stated="" that="" the="" proposed="" rule="" does="" not="" specifically="" permit="" an="" appeal="" from="" a="" state/area="" office="" rejection="" of="" a="" claim="" for="" additional="" scoring="" adjustment="" that="" is="" based="" on="" the="" physical="" condition="" or="" neighborhood="" environment="" of="" housing="" developments.="" although="" the="" proposed="" rule="" appears="" to="" cover="" disputes="" over="" the="" analysis="" or="" accuracy="" of="" data="" submitted="" in="" support="" of="" the="" claim,="" it="" would="" not="" cover="" disputes="" over="" whether="" a="" pha="" maintained="" adequate="" documentation="" to="" support="" its="" claim.="" the="" proposed="" rule="" covers="" this="" type="" of="" dispute="" as="" it="" relates="" to="" denials="" of="" exclusion="" or="" modification="" requests="" but="" does="" not="" extend="" to="" a="" dispute="" over="" weighted="" scoring.="" this="" appears="" to="" be="" an="" unintended="" oversight="" and="" should="" be="" corrected.="" response:="" hud="" agrees="" and="" has="" amended="" this="" section="" accordingly.="" comment:="" one="" comment="" urges="" hud="" to="" reconsider="" the="" amorphous="" term="" ``data="" errors''="" that="" the="" proposed="" rule="" would="" carry="" over="" from="" the="" previous="" interim="" rule="" or="" in="" the="" phmap="" handbook="" 7460.5.="" hud's="" failure="" to="" explain="" the="" meaning="" of="" this="" term="" could="" result="" in="" ad="" hoc,="" overly="" narrow="" interpretations="" by="" state/area="" offices="" in="" individual="" ratings.="" hud="" should="" revise="" this="" ground="" for="" appeal="" to="" encompass="" any="" dispute="" over="" the="" accuracy,="" calculation,="" or="" interpretation="" of="" data="" employed="" in="" the="" grading="" process="" that,="" if="" resolved="" in="" the="" pha's="" favor,="" would="" affect="" its="" regular="" or="" weighted="" score.="" response:="" the="" department="" has="" changed="" the="" language="" to="" read,="" ``any="" dispute="" over="" the="" accuracy,="" calculation,="" or="" interpretation="" of="" data="" employed="" in="" the="" grading="" process="" that="" would="" affect="" a="" pha's="" phmap="" score.''="" comment:="" one="" comment="" stated="" that="" according="" to="" sec.="" 901.125(a),="" a="" pha="" could="" appeal="" the="" denial="" of="" an="" exclusion/modification="" request="" if="" that="" denial="" has="" any="" effect="" on="" their="" total="" score.="" this="" is="" different="" from="" the="" 5%="" threshold="" in="" the="" current="" rule.="" if="" this="" is="" the="" intent,="" it="" should="" be="" explicitly="" stated.="" [[page="" 68931]]="" response:="" the="" department="" believes="" that="" it="" is="" stated="" explicitly:="" ``a="" pha="" may="" appeal...the="" denial="" of="" exclusion="" or="" modification="" requests="" when="" their="" denial="" affects="" a="" pha's="" total="" weighted="" score,="" *="" *="" *''="" as="" stated="" previously,="" a="" pha="" should="" have="" the="" right="" to="" appeal="" its="" phmap="" score="" with="" as="" few="" restrictions="" as="" possible.="" comment:="" one="" comment="" thought="" sec.="" 901.125(a)(3)="" should="" specify="" how="" long="" the="" state/field="" offices="" have="" to="" rule="" on="" an="" appeal.="" response:="" state/area="" offices="" will="" be="" required="" to="" meet="" the="" 30="" day="" period="" for="" responding="" to="" appeals="" by="" an="" internal="" directive="" that="" will="" be="" as="" binding="" upon="" them="" as="" a="" regulatory="" requirement.="" comment:="" one="" comment="" stated="" that="" sec.="" 901.125(a)(5)="" is="" duplicative="" of="" paragraph="" (a)(1)(ii).="" response:="" the="" department="" agrees="" and="" has="" deleted="" sec.="" 901.125(a)(5)="" from="" the="" new="" rule.="" incentives--sec.="" 901.130="" comment:="" five="" comments="" stated="" that="" hud="" should="" specify="" the="" actual="" hud="" requirements="" that="" it="" intends="" to="" waive="" for="" high="" and="" standard="" performers="" and="" supports="" the="" extension="" of="" any="" such="" incentives="" to="" standard="" performers,="" as="" the="" proposed="" rule="" accomplishes.="" the="" proposed="" rule="" falls="" short="" of="" offering="" any="" true="" incentives="" that="" would="" encourage="" more="" phas="" to="" improve="" their="" performance.="" besides="" a="" certificate,="" the="" only="" other="" incentives="" mentioned="" are="" being="" relieved="" from="" unspecified="" procedural="" requirements.="" but="" the="" rule="" also="" states="" that="" the="" state/area="" office="" has="" the="" discretion="" to="" continue="" to="" hold="" phas="" accountable="" for="" those="" same="" requirements.="" hud="" must="" grant="" additional="" flexibility,="" on="" the="" record,="" to="" standard="" and="" high="" performing="" agencies.="" in="" the="" past,="" there="" seems="" to="" have="" been="" recognition,="" but="" little="" or="" no="" actual="" relief="" from="" administrative="" burdens.="" response:="" the="" department="" will="" cite="" specific="" incentives="" for="" high="" and="" standard="" performers="" in="" the="" revision="" of="" the="" phmap="" handbook="" 7460.5.="" incentives="" are="" presented="" in="" the="" handbook="" rather="" than="" the="" regulation="" to="" enable="" the="" department="" to="" revise="" the="" incentives="" more="" quickly="" as="" conditions="" and="" circumstances="" warrant.="" comment:="" one="" comment="" felt="" that="" the="" administrative="" burden="" on="" phas="" is="" growing="" and="" requested="" hud="" to="" consider="" measurable="" relief="" such="" as="" the="" elimination="" of="" davis-bacon="" or="" project-based="" accounting="" for="" well-managed="" phas.="" response:="" the="" department="" cannot="" eliminate="" administrative="" burdens="" that="" are="" separate="" statutory="" requirements,="" such="" as="" davis-bacon="" and="" project-based="" accounting="" (applicable="" to="" phas="" with="" 500="" or="" more="" units).="" however,="" the="" department's="" labor="" relations="" office="" is="" intending="" to="" implement="" a="" provision="" that="" will="" allow="" phas="" to="" obtain="" only="" one="" hud-="" determined="" wage="" rate="" determination="" for="" a="" pha's="" entire="" fiscal="" year.="" comment:="" one="" comment="" suggested="" that="" hud="" exempt="" phas="" with="" three="" consecutive="" years="" of="" standard="" or="" high="" performing="" determinations="" from="" having="" to="" calculate="" and="" certify="" their="" phmap="" indicators.="" rather,="" the="" indicators="" could="" be="" subject="" to="" the="" independent="" public="" audit="" (ipa).="" if,="" and="" when,="" the="" ipa="" indicates="" that="" a="" pha="" is="" experiencing="" significant="" management="" problems,="" it="" could="" again="" be="" subject="" to="" yearly="" certifications.="" response:="" the="" department="" disagrees="" with="" this="" suggestion="" because="" the="" independent="" audit="" only="" checks="" the="" existence="" and="" consistency="" of="" a="" pha's="" phmap="" documentation;="" it="" does="" not="" award="" a="" score.="" in="" addition,="" a="" well="" managed="" pha="" should="" have="" little="" or="" no="" troubled="" certifying="" on="" an="" annual="" basis.="" comment:="" one="" comment="" proposes="" that="" phas="" designated="" as="" high="" performers="" for="" a="" minimum="" of="" three="" consecutive="" years="" be="" required="" to="" certify="" to="" phmap="" only="" every="" other="" year="" unless="" and="" until="" they="" are="" designated="" as="" something="" less="" than="" high="" performers.="" in="" the="" event="" that="" their="" phmap="" score="" slips="" to="" standard="" performer="" or="" below,="" phas="" would="" revert="" to="" annual="" certifications="" until="" they,="" once="" again,="" have="" established="" themselves="" as="" high="" performers="" for="" three="" consecutive="" years.="" this="" would="" not="" only="" be="" a="" good="" incentive="" for="" phas,="" but="" also="" would="" reduce="" workload="" of="" the="" hud="" offices.="" response:="" as="" stated,="" above,="" a="" well="" managed="" pha="" should="" have="" little="" or="" no="" troubled="" certifying="" on="" an="" annual="" basis.="" comment:="" one="" comment="" feels="" that="" hud's="" proposal="" that="" representatives="" of="" high-performing="" phas="" may="" be="" requested="" to="" serve="" on="" a="" departmental="" group="" working="" with="" troubled="" phas="" is="" not="" of="" sufficient="" benefit="" to="" most="" phas.="" hud="" must="" be="" willing="" to="" provide="" real="" cash="" incentive="" to="" the="" phas="" that="" perform="" well,="" not="" just="" pat="" them="" on="" the="" back.="" for="" instance,="" if="" high-performing="" phas="" are="" able="" to="" enter="" into="" ventures="" that="" provide="" monies="" in="" excess="" of="" 100%="" pfs="" subsidy,="" they="" should="" be="" able="" to="" keep="" most,="" if="" not="" all,="" of="" it.="" the="" ability="" of="" high-performing="" phas="" to="" generate="" revenue="" should="" not="" be="" used="" to="" reward="" low-performing="" phas.="" response:="" the="" department="" already="" permits="" the="" retention="" of="" ``other="" income,''="" as="" stipulated="" in="" notice="" pih="" 96-24,="" performance="" funding="" system="" policy="" revision="" to="" encourage="" public="" and="" indian="" housing="" authorities="" to="" facilitate="" resident="" employment="" and="" undertake="" entrepreneurial="" initiatives,="" issued="" april="" 3,="" 1996.="" comment:="" one="" comment="" stated="" that="" the="" proposed="" rule="" limits="" incentives="" to="" mod="" high="" performers="" that="" are="" also="" overall="" high="" performers.="" this="" appears="" to="" be="" a="" change="" from="" the="" previous="" interim="" rule,="" and="" is="" unfair.="" mod="" high="" performers="" that="" are="" overall="" standard="" performers="" should="" be="" able="" to="" benefit="" from="" mod="" incentives.="" response:="" the="" department="" disagrees="" with="" this="" comment="" and="" believes="" that="" only="" outstanding="" performance="" overall="" and="" in="" modernization="" warrants="" the="" high="" performer="" designation.="" comment:="" one="" comment="" encourages="" hud="" to="" permit="" the="" state/area="" offices="" to="" add="" incentives="" to="" the="" extent="" practical="" and="" as="" deemed="" appropriate.="" response:="" the="" department="" agrees="" and="" has="" amended="" the="" new="" rule="" to="" permit="" state/area="" offices="" to="" add="" incentives="" to="" the="" extent="" practical="" and="" as="" deemed="" appropriate,="" with="" prior="" concurrence="" of="" such="" action="" by="" the="" assistant="" secretary.="" comment:="" one="" comment="" stated="" that="" sec.="" 901.130(g)="" of="" the="" proposed="" rule="" states="" that="" the="" state/area="" office="" will="" have="" discretion="" to="" subject="" a="" pha="" to="" any="" requirement="" that="" would="" otherwise="" be="" omitted="" under="" the="" specified="" relief="" in="" accordance="" with="" sec.="" 901.115.="" what="" does="" this="" mean?="" it="" reads="" like="" an="" attempt="" to="" catch="" anything="" that="" the="" rule="" makers="" forgot="" without="" specifying="" what.="" anything="" significant="" that="" might="" be="" recognized="" at="" some="" later="" date="" as="" omitted="" should="" be="" addressed="" as="" an="" amendment="" to="" the="" rule="" for="" consistent="" application="" nationwide.="" response:="" this="" section="" refers="" to="" cases="" where="" the="" specified="" unusual="" circumstances="" listed="" in="" sec.="" 901.115="" exist="" at="" a="" pha="" and="" the="" state/area="" office="" determines="" the="" necessity="" of="" reinstating="" any="" review="" or="" requirement.="" comment:="" one="" comment="" stated="" that="" according="" to="" sec.="" 901.130(a),="" both="" high="" performers="" and="" standard="" performers="" will="" receive="" incentives.="" if="" so,="" will="" these="" incentives="" be="" different="" for="" each="" group?="" if="" not,="" what="" is="" the="" advantage="" of="" achieving="" high="" performer="" status?="" response:="" the="" department="" agrees,="" and="" will="" provide="" separate="" incentives="" for="" both="" standard="" and="" high="" performers.="" memorandum="" of="" agreement--sec.="" 901.135="" comment:="" one="" comment="" stated="" that="" an="" independent="" assessment="" team="" is="" not="" discussed="" or="" defined="" anywhere="" else="" in="" the="" rule.="" what="" is="" it?="" what="" are="" its="" functions?="" how="" is="" it="" assembled?="" the="" requirement="" for="" an="" ``independent="" assessment''="" prior="" to="" ``troubled''="" designation="" should="" be="" thoroughly="" discussed="" somewhere="" in="" the="" rule.="" [[page="" 68932]]="" response:="" the="" department="" went="" through="" the="" procurement="" process="" to="" contract="" with="" the="" two="" consultants="" that="" conduct="" the="" independent="" assessments.="" the="" function="" of="" the="" two="" consultants="" is="" to="" conduct="" an="" assessment="" of="" problem="" areas="" independent="" of="" hud,="" issue="" a="" report="" of="" findings,="" and="" perhaps="" participate="" in="" moa="" negotiations.="" since="" the="" independent="" assessment="" is="" separate="" from="" the="" phmap="" scoring="" process,="" the="" independent="" assessment="" is="" addressed="" only="" in="" sec.="" 901.135,="" memorandum="" of="" agreement,="" in="" the="" new="" rule.="" improvement="" plan--sec.="" 901.145="" comment:="" one="" comment="" stated="" that="" the="" phrase,="" ``="" *="" *="" *="" as="" well="" as="" other="" performance="" and/or="" compliance="" deficiencies="" as="" may="" be="" identified="" as="" a="" result="" of="" an="" on-site="" review="" of="" the="" pha's="" operations="" *="" *="" *,="" is="" too="" broad="" and="" loose.="" the="" improvement="" plan="" shouldn't="" try="" to="" cover="" everything;="" this="" muddies="" the="" improvement="" plan="" and="" the="" phmap="" process.="" this="" section="" should="" specify="" that="" additional="" issues="" may="" be="" added="" to="" the="" improvement="" plan="" only="" if="" hud="" and="" the="" pha="" agree="" that="" they="" are="" directly="" related="" to="" pha="" non-performance="" in="" the="" phmap="" deficiencies.="" response:="" the="" department="" disagrees="" with="" this="" suggestion="" and="" believes="" that="" the="" rule="" should="" provide="" the="" flexibility="" to="" permit="" identified="" deficiencies="" to="" be="" addressed="" as="" soon="" as="" possible,="" whether="" they="" are="" related="" to="" phmap="" or="" not.="" this="" provision="" allows="" all="" identified="" deficiencies="" to="" be="" addressed="" in="" one="" document.="" phmap="" public="" record--sec.="" 901.155="" comment:="" one="" comment="" raised="" several="" questions,="" such="" as:="" how="" do="" foia="" requirements="" apply="" to="" phmap="" records,="" if="" at="" all;="" how="" do="" these="" requirements="" complement="" each="" other;="" are="" all="" internal="" hud="" records="" on="" the="" phmap="" assessment="" included="" in="" the="" ``open="" public="" record,''="" including="" those="" that="" would="" be="" excluded="" from="" the="" normal="" foia="" request?="" this="" should="" be="" clarified.="" response:="" the="" foia="" does="" apply="" to="" phmap.="" the="" items="" listed="" in="" sec.="" 901.155="" (``certifications,="" the="" records="" of="" exclusion="" and="" modification="" requests,="" appeals,="" and="" designations="" of="" status="" based="" on="" physical="" condition="" and="" neighborhood="" environment'')="" are="" all="" public="" records,="" and="" do="" not="" make="" an="" exclusive="" or="" exhaustive="" list.="" also="" included="" would="" be="" such="" items="" as="" the="" notification="" to="" the="" pha,="" and="" the="" state/area="" office="" scoring="" sheet.="" exemptions="" authorized="" under="" foia="" by="" 5="" u.s.c.="" 552(b)="" would="" still="" apply.="" this="" section="" is="" clarified="" to="" read,="" ``...as="" open="" records,="" available="" for="" public="" inspection="" for="" three="" years="" consistent="" with="" the="" freedom="" of="" information="" act="" (5="" u.s.c.="" 552)="" and="" in="" accordance="" with="" any="" procedures="" established="" by="" the="" state/area="" office="" to="" minimize="" disruption="" of="" normal="" office="" operations.''="" substantial="" default--sec.="" 901.200="" comment:="" one="" comment="" observed="" that="" sec.="" 901.200="" requires="" hud="" to="" determine="" a="" pha="" in="" ``substantial="" default''="" if="" that="" pha="" has="" been="" designated="" as="" troubled="" and="" does="" not="" show="" significant="" improvement="" (i.e.,="" 10="" point="" increase)="" in="" its="" phmap="" score="" within="" one="" year.="" the="" preamble="" notes="" that="" the="" rationale="" for="" this="" is="" that="" ``troubled="" phas="" have="" already="" had="" more="" than="" adequate="" time="" to="" implement="" corrective="" action,="" or="" will="" have="" at="" least="" one="" year="" from="" the="" time="" of="" its="" initial="" troubled="" designation.''="" this="" is="" not="" correct.="" because="" of="" the="" phmap="" score="" notification="" process,="" a="" pha="" would="" have="" less="" than="" a="" year="" to="" correct="" deficiencies="" once="" it="" is="" notified="" and="" before="" the="" next="" assessment.="" the="" time="" frame="" established="" for="" improvement="" is="" arbitrary="" and="" too="" short="" for="" real="" improvement="" to="" take="" place.="" it="" may="" be="" reasonable="" for="" some="" phas="" but="" not="" for="" others.="" improvement="" in="" performance="" is="" the="" function="" of="" many="" factors.="" this="" time="" frame="" should="" be="" changed.="" response:="" the="" rule="" is="" modified="" to="" stipulate="" one="" year="" after="" final="" notification.="" notice="" and="" response--sec.="" 901.205="" comment:="" one="" comment="" stated="" that="" section="" (a)="" stipulates="" that="" if="" information="" from="" any="" other="" credible="" source="" indicates="" that="" there="" may="" exist="" events="" or="" conditions="" constituting="" a="" substantial="" breach="" or="" default,="" hud="" shall="" advise="" a="" pha="" of="" such="" information.="" before="" taking="" further="" action,="" except="" in="" cases="" of="" apparent="" fraud="" or="" criminality,="" and/="" or="" if="" emergency="" conditions="" exist="" posing="" an="" imminent="" threat="" to="" the="" life,="" health="" or="" safety="" of="" residents,="" hud="" shall="" afford="" the="" pha="" a="" timely="" opportunity="" to="" initiate="" corrective="" action.="" this="" provision="" lends="" itself="" to="" unintentional="" abuse.="" the="" use="" of="" unidentified="" credible="" sources="" as="" the="" basis="" for="" action="" on="" unverified="" conditions="" could="" leave="" phas="" vulnerable="" to="" becoming="" the="" victims="" of="" political="" witch="" hunts.="" even="" emergency="" conditions="" allow="" 24="" hours="" for="" corrective="" action.="" at="" minimum,="" a="" pha="" should="" be="" afforded="" 24="" hours="" for="" emergencies="" and="" longer="" as="" appropriate="" for="" non-emergency="" conditions="" to="" respond="" with="" verification="" that="" the="" condition="" does="" or="" does="" not="" exist.="" this="" provision="" should="" be="" modified="" accordingly.="" response:="" ``timely="" opportunity''="" varies="" due="" to="" possible="" individual="" situations="" and="" the="" department="" will="" provide="" for="" a="" reasonable="" amount="" of="" time="" for="" a="" pha="" to="" initiate="" corrective="" action.="" the="" department="" will="" consider="" each="" situation="" individually,="" and="" on="" a="" case="" by="" case="" basis,="" as="" appropriate.="" resident="" participation="" in="" competitive="" proposals--sec.="" 901.220="" and="" resident="" petitions="" for="" remedial="" action--sec.="" 901.225="" comment:="" one="" comment="" stated="" that="" sec.="" 901.220(b)="" and="" sec.="" 901.225="" require="" at="" least="" 5%="" of="" the="" residents="" at="" a="" pha="" in="" substantial="" default="" to="" indicate="" to="" hud="" their="" interest="" in="" participating="" in="" the="" competitive="" proposal="" process.="" this="" percentage="" is="" unreasonably="" low.="" there="" isn't="" a="" pha="" in="" the="" country="" that="" doesn't="" have="" at="" least="" five="" people="" out="" of="" 100="" eager="" to="" get="" rid="" of="" the="" current="" pha="" management.="" this="" doesn't="" necessarily="" mean="" that="" they="" know="" what="" they="" are="" talking="" about="" or="" are="" right.="" the="" department="" needs="" to="" seriously="" consider="" a="" threshold="" of="" interest="" that="" is="" high="" enough="" to="" ensure="" true="" interest="" by="" the="" resident="" population,="" not="" just="" a="" handful="" of="" disgruntled="" residents.="" response:="" the="" department="" agrees,="" and="" has="" changed="" the="" percentage="" in="" the="" new="" rule="" to="" require="" that="" 20%="" of="" the="" residents="" at="" a="" pha="" in="" substantial="" default="" indicate="" to="" hud="" their="" interest="" in="" participating="" in="" the="" competitive="" proposal="" process.="" technical="" assistance--sec.="" 901.235="" comment:="" one="" comment="" felt="" that="" this="" section="" is="" confusing="" and="" gives="" the="" impression="" that="" it="" is="" designed="" to="" limit="" hud's="" ability="" to="" offer="" technical="" assistance="" and="" should="" be="" clarified.="" response:="" the="" department="" disagrees="" and="" thinks="" this="" section="" very="" specifically="" states="" and="" authorizes="" under="" what="" circumstances="" hud="" may="" provide="" technical="" assistance="" to="" troubled="" or="" near="" troubled="" phas.="" iii.="" findings="" and="" certifications="" justification="" for="" interim="" rulemaking="" although="" this="" rule="" could="" have="" been="" published="" as="" a="" final="" rule="" because="" it="" was="" first="" published="" as="" a="" proposed="" rule="" for="" prior="" notice="" and="" comment="" on="" may="" 6,="" 1996="" (61="" fr="" 20358),="" it="" is="" being="" published="" as="" an="" interim="" rule="" to="" communicate="" hud's="" intention="" to="" continue="" to="" revise="" and="" improve="" the="" rule.="" following="" a="" period="" of="" implementation="" and="" experience="" with="" this="" rule,="" hud="" will="" again="" solicit="" public="" comment="" to="" further="" refine="" the="" phmap="" process.="" paperwork="" reduction="" act="" the="" information="" collection="" requirements="" for="" the="" public="" housing="" management="" assessment="" program="" have="" been="" approved="" by="" the="" office="" of="" management="" and="" budget="" in="" accordance="" [[page="" 68933]]="" with="" the="" paperwork="" reduction="" act="" of="" 1995="" (44="" u.s.c.="" 3501-3520),="" and="" assigned="" omb="" control="" number="" 2577-0156.="" an="" agency="" may="" not="" conduct="" or="" sponsor,="" and="" a="" person="" is="" not="" required="" to="" respond="" to,="" a="" collection="" of="" information="" unless="" the="" collection="" displays="" a="" valid="" control="" number.="" unfunded="" mandates="" reform="" act="" title="" ii="" of="" the="" unfunded="" mandates="" reform="" act="" of="" 1995="" establishes="" requirements="" for="" federal="" agencies="" to="" assess="" the="" effects="" of="" their="" regulatory="" actions="" on="" state,="" local,="" local="" and="" tribal="" governments="" and="" the="" private="" sector.="" this="" rule="" does="" not="" impose="" any="" federal="" mandates="" on="" any="" state,="" local="" or="" tribal="" governments="" or="" the="" private="" sector="" within="" the="" meaning="" of="" the="" unfunded="" mandates="" reform="" act="" of="" 1995.="" environmental="" review="" a="" finding="" of="" no="" significant="" impact="" with="" respect="" to="" the="" environment,="" in="" accordance="" with="" hud="" regulations="" at="" 24="" cfr="" part="" 50,="" which="" implements="" sec.="" 102(2)(c)="" of="" the="" national="" environmental="" policy="" act="" of="" 1969,="" was="" prepared="" for="" the="" proposed="" rule="" and="" remains="" applicable.="" the="" finding="" of="" no="" significant="" impact="" is="" available="" for="" public="" inspection="" between="" 7:30="" a.m.="" and="" 5:30="" p.m.="" weekdays="" in="" the="" office="" of="" the="" rules="" docket="" clerk.="" impact="" on="" small="" entities="" the="" secretary,="" in="" accordance="" with="" the="" regulatory="" flexibility="" act="" (5="" u.s.c.="" 605(b))="" has="" reviewed="" and="" approved="" this="" rule,="" and="" in="" so="" doing="" certifies="" that="" this="" rule="" will="" not="" have="" a="" significant="" economic="" impact="" on="" a="" substantial="" number="" of="" small="" entities,="" since="" the="" rule="" only="" establishes="" management="" assessment="" criteria="" which="" will="" be="" utilized="" by="" state/area="" offices="" for="" monitoring="" purposes="" and="" the="" provision="" of="" technical="" assistance="" to="" phas.="" federalism="" the="" general="" counsel,="" as="" the="" designated="" official="" under="" executive="" order="" 12612,="" federalism,="" has="" determined="" that="" the="" policies="" contained="" in="" this="" rule="" will="" not="" have="" substantial="" direct="" effects="" on="" states="" or="" their="" political="" subdivisions,="" or="" the="" relationship="" between="" the="" federal="" government="" and="" the="" states,="" or="" on="" the="" distribution="" of="" power="" and="" responsibilities="" among="" the="" various="" levels="" of="" government.="" the="" rule="" is="" intended="" to="" promote="" good="" management="" practices="" by="" including,="" in="" hud's="" relationship="" with="" phas,="" continuing="" review="" of="" phas'="" compliance="" with="" already="" existing="" requirements.="" in="" addition,="" the="" rule="" carries="" out,="" as="" unobtrusively="" as="" possible,="" a="" federal="" statutory="" mandate.="" the="" rule="" does="" not="" create="" any="" new="" significant="" requirements="" of="" its="" own.="" as="" a="" result,="" the="" rule="" is="" not="" subject="" to="" review="" under="" the="" order.="" family="" impact.="" the="" general="" counsel,="" as="" the="" designated="" official="" under="" executive="" order="" 12606,="" the="" family,="" has="" determined="" that="" this="" rule="" does="" not="" have="" potential="" for="" significant="" impact="" on="" family="" formation,="" maintenance,="" and="" general="" well-being,="" and,="" thus,="" is="" not="" subject="" to="" review="" under="" the="" order.="" the="" rule="" involves="" requirements="" for="" management="" assessment="" of="" phas.="" any="" effect="" on="" the="" family="" would="" be="" indirect.="" to="" the="" extent="" families="" in="" public="" housing="" will="" be="" affected,="" the="" impact="" of="" the="" rule's="" requirements="" is="" expected="" to="" be="" a="" positive="" one.="" list="" of="" subjects="" in="" 24="" cfr="" part="" 901="" public="" housing,="" reporting="" and="" recordkeeping="" requirements.="" accordingly,="" part="" 901="" of="" title="" 24="" of="" the="" code="" of="" federal="" regulations="" is="" revised="" to="" read="" as="" follows:="" part="" 901--public="" housing="" management="" assessment="" program="" sec.="" 901.1="" purpose,="" program="" scope="" and="" applicability.="" 901.5="" definitions.="" 901.10="" indicator="" #1,="" vacancy="" rate="" and="" unit="" turnaround="" time.="" 901.15="" indicator="" #2,="" modernization.="" 901.20="" indicator="" #3,="" rents="" uncollected.="" 901.25="" indicator="" #4,="" work="" orders.="" 901.30="" indicator="" #5,="" annual="" inspection="" of="" units="" and="" systems.="" 901.35="" indicator="" #6,="" financial="" management.="" 901.40="" indicator="" #7,="" resident="" services="" and="" community="" building.="" 901.45="" indicator="" #8,="" security.="" 901.100="" data="" collection.="" 901.105="" computing="" assessment="" score.="" 901.110="" pha="" request="" for="" exclusion="" or="" modification="" of="" an="" indicator="" or="" component.="" 901.115="" pha="" score="" and="" status.="" 901.120="" state/area="" office="" functions.="" 901.125="" pha="" right="" of="" appeal.="" 901.130="" incentives.="" 901.135="" memorandum="" of="" agreement.="" 901.140="" removal="" from="" troubled="" status="" and="" mod-troubled="" status.="" 901.145="" improvement="" plan.="" 901.150="" phas="" troubled="" with="" respect="" to="" the="" program="" under="" section="" 14="" (mod-troubled="" phas).="" 901.155="" phmap="" public="" record.="" 901.200="" events="" or="" conditions="" that="" constitute="" substantial="" default.="" 901.205="" notice="" and="" response.="" 901.210="" interventions.="" 901.215="" contracting="" and="" funding.="" 901.220="" resident="" participation="" in="" competitive="" proposals="" to="" manage="" the="" housing="" of="" a="" pha.="" 901.225="" resident="" petitions="" for="" remedial="" action.="" 901.230="" receivership.="" 901.235="" technical="" assistance.="" authority:="" 42="" u.s.c.="" 1437d(j);="" 42="" u.s.c.="" 3535(d).="" sec.="" 901.1="" purpose,="" program="" scope="" and="" applicability.="" (a)="" purpose.="" this="" part="" establishes="" the="" public="" housing="" management="" assessment="" program="" (phmap)="" to="" implement="" and="" augment="" section="" 6(j)="" of="" the="" 1937="" act.="" phmap="" provides="" policies="" and="" procedures="" to="" identify="" public="" housing="" agency="" (pha),="" resident="" management="" corporation="" (rmc),="" and="" alternative="" management="" entity="" (ame)="" management="" capabilities="" and="" deficiencies,="" recognize="" high-performing="" phas,="" designate="" criteria="" for="" defining="" troubled="" phas="" and="" phas="" that="" are="" troubled="" with="" respect="" to="" the="" program="" under="" section="" 14="" (public="" housing="" modernization="" program),="" and="" improve="" the="" management="" practices="" of="" troubled="" phas="" and="" mod-troubled="" phas.="" (b)="" program="" scope.="" the="" phmap="" reflects="" only="" one="" aspect="" of="" pha="" operations,="" i.e.,="" the="" results="" of="" its="" management="" performance="" in="" specific="" program="" areas.="" the="" phmap="" should="" not="" be="" viewed="" by="" phas,="" the="" department="" or="" other="" interested="" parties="" as="" an="" all-inclusive="" and="" encompassing="" view="" of="" overall="" pha="" operations.="" when="" viewing="" overall="" pha="" operations,="" other="" criteria,="" including="" but="" not="" limited="" to,="" the="" quality="" of="" a="" pha's="" housing="" stock,="" compliance="" issues,="" fair="" housing="" and="" equal="" opportunity="" issues,="" board="" knowledge="" and="" oversight="" of="" pha="" operation,="" etc.,="" even="" though="" not="" covered="" under="" the="" phmap,="" are="" necessary="" in="" order="" to="" determine="" the="" adequacy="" of="" overall="" pha="" operations.="" the="" phmap="" can="" never="" be="" designed="" to="" be="" the="" sole="" method="" of="" viewing="" a="" pha's="" overall="" operations.="" a="" pha="" should="" not="" manipulate="" the="" phmap="" system="" in="" the="" short-term="" in="" order="" to="" achieve="" a="" higher="" phmap="" score,="" thereby="" delaying="" or="" negating="" long-term="" improvement.="" making="" a="" correct="" and="" viable="" long-term="" decision="" (doing="" the="" right="" thing)="" may="" hurt="" a="" pha="" in="" the="" short-term="" (i.e.,="" lower="" phmap="" score),="" but="" will="" result="" in="" improved="" housing="" stock="" and="" better="" overall="" management="" of="" a="" pha="" over="" the="" long-term="" and="" a="" higher="" sustainable="" phmap="" score.="" (c)="" applicability.="" (1)="" the="" provisions="" of="" this="" part="" apply="" to="" phas="" and="" rmc/ames="" as="" noted="" in="" the="" sections="" of="" this="" part.="" the="" management="" assessment="" of="" an="" rmc/ame="" differs="" from="" that="" of="" a="" pha.="" because="" an="" rmc/ame="" enters="" into="" a="" contract="" with="" a="" pha="" to="" perform="" specific="" management="" functions="" on="" a="" development-by-development="" or="" program="" basis,="" and="" because="" the="" scope="" of="" the="" management="" that="" is="" undertaken="" [[page="" 68934]]="" varies,="" not="" every="" indicator="" that="" applies="" to="" a="" pha="" would="" be="" applicable="" to="" each="" rmc/ame.="" (2)="" due="" to="" the="" fact="" that="" the="" pha="" and="" not="" the="" rmc/ame="" is="" ultimately="" responsible="" to="" the="" department="" under="" the="" acc,="" a="" pha's="" score="" will="" be="" based="" on="" all="" of="" the="" developments="" covered="" by="" the="" acc,="" including="" those="" with="" management="" functions="" assumed="" by="" an="" rmc="" or="" ame="" (pursuant="" to="" a="" court="" ordered="" receivership="" agreement,="" if="" applicable).="" this="" is="" necessary="" because="" of="" the="" limited="" nature="" of="" an="" rmc/ame's="" management="" functions="" and="" the="" regulatory="" and="" contractual="" relationships="" among="" the="" department,="" phas="" and="" rmc/ames.="" (3)="" a="" significant="" feature="" of="" rmc="" management="" is="" that="" 24="" cfr="" secs.="" 964.225="" (d)="" and="" (h)="" provide="" that="" a="" pha="" may="" enter="" into="" a="" management="" contract="" with="" an="" rmc,="" but="" a="" pha="" may="" not="" contract="" for="" assumption="" by="" the="" rmc="" of="" the="" pha's="" underlying="" responsibilities="" to="" the="" department="" under="" the="" annual="" contributions="" contract="" (acc).="" (4)="" when="" a="" pha's="" management="" functions="" have="" been="" assumed="" by="" an="" ame:="" (i)="" if="" the="" ame="" assumes="" only="" a="" portion="" of="" the="" pha's="" management="" functions,="" the="" provisions="" of="" this="" part="" that="" apply="" to="" rmcs="" apply="" to="" the="" ame="" (pursuant="" to="" a="" court="" ordered="" receivership="" agreement,="" if="" applicable);="" or="" (ii)="" if="" the="" ame="" assumes="" all,="" or="" substantially="" all,="" of="" the="" pha's="" management="" functions,="" the="" provisions="" of="" this="" part="" that="" apply="" to="" phas="" apply="" to="" the="" ame="" (pursuant="" to="" a="" court="" ordered="" receivership="" agreement,="" if="" applicable).="" (5)="" to="" ensure="" quality="" management="" results="" from="" a="" contract="" between="" an="" ame="" and="" a="" pha,="" or="" between="" an="" ame="" and="" hud,="" minimum="" performance="" criteria="" that="" relate="" to="" the="" phmap="" indicators,="" as="" applicable,="" should="" be="" included="" in="" such="" contract.="" failure="" to="" meet="" the="" performance="" criteria="" would="" be="" a="" basis="" for="" termination="" of="" the="" contract.="" however,="" even="" in="" the="" absence="" of="" explicit="" contractual="" provisions,="" this="" part="" applies="" to="" ames="" in="" accordance="" with="" paragraph="" (b)(4)="" of="" this="" section,="" above.="" sec.="" 901.5="" definitions.="" actual="" vacancy="" rate="" is="" the="" vacancy="" rate="" calculated="" by="" dividing="" the="" total="" number="" of="" vacancy="" days="" in="" the="" fiscal="" year="" by="" the="" total="" number="" of="" unit="" days="" available="" in="" the="" fiscal="" year.="" adjusted="" vacancy="" rate="" is="" the="" vacancy="" rate="" calculated="" after="" excluding="" the="" vacancy="" days="" that="" are="" exempted="" for="" any="" of="" the="" eligible="" reasons.="" it="" is="" calculated="" by="" dividing="" the="" total="" number="" of="" adjusted="" vacancy="" days="" in="" the="" fiscal="" year="" by="" the="" total="" number="" of="" unit="" days="" available="" in="" the="" fiscal="" year.="" alternative="" management="" entity="" (ame)="" is="" a="" receiver,="" private="" contractor,="" private="" manager,="" or="" any="" other="" entity="" that="" is="" under="" contract="" with="" a="" pha,="" or="" that="" is="" otherwise="" duly="" appointed="" or="" contracted="" (for="" example,="" by="" court="" order,="" pursuant="" to="" a="" court="" ordered="" receivership="" agreement,="" if="" applicable,="" or="" agency="" action),="" to="" manage="" all="" or="" part="" of="" a="" pha's="" operations.="" depending="" upon="" the="" scope="" of="" pha="" management="" functions="" assumed="" by="" the="" ame,="" in="" accordance="" with="" sec.="" 901.1(b)(2),="" the="" ame="" is="" treated="" as="" a="" pha="" or="" an="" rmc="" for="" purposes="" of="" this="" part="" and,="" as="" appropriate,="" the="" terms="" pha="" and="" rmc="" include="" ame.="" assessed="" fiscal="" year="" is="" the="" pha="" fiscal="" year="" that="" has="" been="" reviewed="" for="" management="" performance="" using="" the="" phmap="" indicators.="" unless="" otherwise="" indicated,="" the="" assessed="" fiscal="" year="" is="" the="" immediate="" past="" fiscal="" year="" of="" a="" pha.="" assistant="" secretary="" means="" the="" assistant="" secretary="" for="" public="" and="" indian="" housing="" of="" the="" department.="" available="" units="" are="" dwelling="" units,="" (occupied="" or="" vacant)="" under="" a="" pha's="" annual="" contributions="" contract,="" that="" are="" available="" for="" occupancy,="" after="" excluding="" or="" adjusting="" for="" units="" approved="" for="" non-dwelling="" use,="" employee-occupied="" units,="" and="" vacant="" units="" approved="" for="" deprogramming="" (units="" approved="" for="" demolition,="" disposition="" or="" units="" that="" have="" been="" combined).="" average="" number="" of="" days="" for="" non-emergency="" work="" orders="" to="" be="" completed="" is="" calculated="" by="" dividing="" the="" total="" of="" the:="" (1)="" number="" of="" days="" in="" the="" assessed="" fiscal="" year="" it="" takes="" to="" close="" active="" non-emergency="" work="" orders="" carried="" over="" from="" the="" previous="" fiscal="" year;="" (2)="" the="" number="" of="" days="" it="" takes="" to="" complete="" non-emergency="" work="" orders="" issued="" and="" closed="" during="" the="" assessed="" fiscal="" year;="" and="" (3)="" the="" number="" of="" days="" all="" active="" non-emergency="" work="" orders="" are="" open="" in="" the="" assessed="" fiscal="" year,="" but="" not="" completed,="" by="" the="" total="" number="" of="" non-emergency="" work="" orders="" used="" in="" the="" calculation="" of="" paragraphs="" (1),="" (2)="" and="" (3),="" of="" this="" definition.="" average="" turnaround="" time="" is="" the="" annual="" average="" of="" the="" total="" number="" of="" turnaround="" days="" between="" the="" latter="" of="" the="" legal="" expiration="" date="" of="" the="" immediate="" past="" lease="" or="" the="" actual="" move-out="" date="" of="" the="" former="" tenant="" (whenever="" that="" occurred,="" including="" in="" some="" previous="" fiscal="" year)="" and="" the="" date="" a="" new="" lease="" takes="" effect.="" each="" time="" an="" individual="" unit="" is="" re-occupied="" (turned="" around)="" during="" the="" fiscal="" year,="" the="" turnaround="" days="" for="" that="" unit="" shall="" be="" counted="" in="" the="" turnaround="" time.="" average="" turnaround="" time="" is="" calculated="" by="" dividing="" the="" total="" turnaround="" days="" for="" all="" units="" re-occupied="" during="" the="" assessed="" fiscal="" year="" by="" the="" total="" number="" of="" units="" re-occupied="" during="" the="" assessed="" fiscal="" year.="" cash="" reserve="" is="" the="" amount="" of="" cash="" available="" for="" operations="" at="" the="" end="" of="" an="" annual="" reporting="" period="" after="" all="" necessary="" expenses="" of="" a="" pha="" or="" development="" have="" been="" paid="" or="" funds="" have="" been="" set-aside="" for="" such="" payment.="" the="" cash="" reserve="" computation="" takes="" into="" consideration="" both="" short-term="" accounts="" receivable="" and="" accounts="" payable.="" confirmatory="" review="" is="" an="" on-site="" review="" for="" the="" purposes="" of="" state/="" area="" office="" verification="" of="" the="" performance="" level="" of="" a="" pha,="" the="" accuracy="" of="" the="" data="" certified="" to="" by="" a="" pha,="" and="" the="" accuracy="" of="" the="" data="" derived="" from="" state/area="" office="" files.="" correct="" means="" to="" improve="" performance="" in="" an="" indicator="" to="" a="" level="" of="" grade="" c="" or="" better.="" cyclical="" work="" orders="" are="" work="" orders="" issued="" for="" the="" performance="" of="" routine="" maintenance="" work="" that="" is="" done="" in="" the="" same="" way="" at="" regular="" intervals.="" examples="" of="" cyclical="" work="" include,="" but="" are="" not="" limited="" to,="" mopping="" hallways;="" picking="" up="" litter;="" cleaning="" a="" trash="" compactor;="" changing="" light="" bulbs="" in="" an="" entryway;="" etc.="" (cyclical="" work="" orders="" should="" not="" be="" confused="" with="" preventive="" maintenance="" work="" orders.)="" deficiency="" means="" any="" grade="" below="" c="" in="" an="" indicator="" or="" component.="" down="" time="" is="" the="" number="" of="" calendar="" days="" a="" unit="" is="" vacant="" between="" the="" later="" of="" the="" legal="" expiration="" date="" of="" the="" immediate="" past="" lease="" or="" the="" actual="" move-out="" date="" of="" the="" former="" resident,="" and="" the="" date="" the="" work="" order="" is="" issued="" to="" maintenance.="" dwelling="" rent="" refers="" to="" the="" resident="" dwelling="" rent="" charges="" reflected="" in="" the="" monthly="" rent="" roll(s)="" and="" excludes="" utility="" reimbursements,="" retroactive="" rent="" charges,="" and="" any="" other="" charges="" not="" specifically="" identified="" as="" dwelling="" rent,="" such="" as="" maintenance="" charges,="" excess="" utility="" charges="" and="" late="" charges.="" dwelling="" rent="" to="" be="" collected="" means="" dwelling="" rent="" owed="" by="" residents="" in="" possession="" at="" the="" beginning="" of="" the="" assessed="" fiscal="" year,="" plus="" dwelling="" rent="" charged="" to="" residents="" during="" the="" assessed="" fiscal="" year.="" dwelling="" rent="" uncollected="" means="" unpaid="" resident="" dwelling="" rent="" owed="" by="" any="" resident="" in="" possession="" during="" the="" assessed="" fiscal="" year,="" but="" not="" collected="" by="" the="" last="" day="" of="" the="" assessed="" fiscal="" year.="" dwelling="" unit="" is="" a="" unit="" that="" is="" either="" leased="" or="" available="" for="" lease="" to="" eligible="" low-income="" residents.="" effective="" lease="" date="" is="" the="" date="" when="" the="" executed="" lease="" contract="" becomes="" effective="" and="" rent="" is="" due="" and="" payable="" and="" all="" other="" provisions="" of="" the="" lease="" are="" enforceable.="" [[page="" 68935]]="" emergency="" means="" physical="" work="" items="" that="" pose="" an="" immediate="" threat="" to="" life,="" health,="" safety,="" or="" property,="" or="" that="" are="" related="" to="" fire="" safety.="" emergency="" status="" abated="" means="" that="" an="" emergency="" work="" order="" is="" either="" fully="" completed,="" or="" the="" emergency="" condition="" is="" temporarily="" eliminated="" and="" no="" longer="" poses="" an="" immediate="" threat.="" if="" the="" work="" cannot="" be="" completed,="" emergency="" status="" can="" be="" abated="" by="" transferring="" the="" resident="" away="" from="" the="" emergency="" situation.="" emergency="" work="" order="" is="" a="" work="" order,="" from="" any="" source,="" that="" involves="" a="" circumstance="" that="" poses="" an="" immediate="" threat="" to="" life,="" health,="" safety="" or="" property,="" or="" that="" is="" related="" to="" fire="" safety.="" employee="" occupied="" units="" refers="" to="" units="" that="" are="" occupied="" by="" employees="" who="" are="" required="" to="" live="" in="" public="" housing="" as="" a="" condition="" of="" their="" job,="" rather="" than="" the="" occupancy="" being="" subject="" to="" the="" normal="" resident="" selection="" process.="" hqs="" means="" housing="" quality="" standards="" as="" set="" forth="" at="" 24="" cfr="" sec.="" 882.109="" and="" amended="" by="" the="" lead-based="" paint="" regulation="" at="" 24="" cfr="" sec.="" 35.="" improvement="" plan="" is="" a="" document="" developed="" by="" a="" pha,="" specifying="" the="" actions="" to="" be="" taken,="" including="" timetables,="" that="" may="" be="" required="" to="" correct="" deficiencies="" where="" the="" grade="" for="" an="" indicator="" is="" a="" grade="" d="" or="" e,="" and="" shall="" be="" required="" to="" correct="" deficiencies="" of="" failed="" indicators,="" identified="" as="" a="" result="" of="" the="" phmap="" assessment="" when="" an="" moa="" is="" not="" required.="" indicators="" means="" the="" major="" categories="" of="" pha="" management="" functions="" that="" are="" examined="" under="" this="" program="" for="" assessment="" purposes.="" the="" list="" of="" individual="" indicators="" and="" the="" way="" they="" are="" graded="" is="" provided="" in="" sec.="" 901.10="" through="" sec.="" 901.45.="" lease="" up="" time="" is="" the="" number="" of="" calendar="" days="" between="" the="" time="" the="" repair="" of="" a="" unit="" is="" completed="" and="" a="" new="" lease="" takes="" effect.="" local="" occupancy/housing="" codes="" are="" the="" minimum="" standards="" for="" human="" occupancy,="" if="" any,="" as="" defined="" by="" the="" local="" ordinance(s)="" of="" the="" jurisdiction="" in="" which="" the="" housing="" is="" located.="" maintenance="" plan="" is="" a="" comprehensive="" annual="" plan="" of="" a="" pha's="" maintenance="" operation="" that="" contains="" the="" fiscal="" year's="" estimated="" work="" schedule="" and="" which="" is="" supported="" by="" a="" staffing="" plan,="" contract="" schedule,="" materials="" and="" procurement="" plan,="" training,="" and="" approved="" budget.="" the="" plan="" should="" establish="" a="" strategy="" for="" meeting="" the="" goals="" and="" time="" frames="" of="" the="" facilities="" management="" planning="" and="" execution,="" capital="" improvements,="" utilities,="" and="" energy="" conservation="" activities.="" major="" systems="" include,="" but="" are="" not="" limited="" to,="" structural/building="" envelopes="" which="" include="" roofing,="" walls,="" windows,="" hardware,="" flashing="" and="" caulking;="" mechanical="" systems="" which="" include="" heating,="" ventilation,="" air="" conditioning,="" plumbing,="" drainage,="" underground="" utilities="" (gas,="" electrical="" and="" water),="" and="" fuel="" storage="" tanks;="" electrical="" systems="" which="" include="" underground="" systems,="" above="" ground="" systems,="" elevators,="" emergency="" generators,="" door="" bells,="" electronic="" security="" devices,="" fire="" alarms,="" smoke="" alarms,="" outdoor="" lighting,="" and="" indoor="" lighting="" (halls,="" stairwells,="" public="" areas="" and="" exit="" signs);="" and="" transformers.="" make="" ready="" time="" is="" the="" number="" of="" calendar="" days="" between="" the="" date="" the="" unit="" is="" referred="" to="" maintenance="" for="" repair="" by="" a="" work="" order="" and="" occupancy="" is="" notified="" that="" the="" unit="" is="" ready="" for="" re-occupancy.="" memorandum="" of="" agreement="" (moa)="" is="" a="" binding="" contractual="" agreement="" between="" a="" pha="" and="" hud="" that="" is="" required="" for="" each="" pha="" designated="" as="" troubled="" and/or="" mod-troubled.="" the="" moa="" sets="" forth="" target="" dates,="" strategies="" and="" incentives="" for="" improving="" management="" performance;="" and="" provides="" sanctions="" if="" performance="" does="" not="" result.="" move-out="" date="" is="" the="" actual="" date="" when="" the="" resident="" vacates="" the="" unit,="" which="" may="" or="" may="" not="" coincide="" with="" the="" legal="" expiration="" of="" the="" lease="" agreement.="" non-emergency="" work="" order="" is="" any="" work="" order="" that="" covers="" a="" situation="" that="" is="" not="" an="" immediate="" threat="" to="" life,="" health,="" safety,="" or="" property,="" or="" that="" is="" unrelated="" to="" fire="" safety.="" percent="" of="" dwelling="" rent="" uncollected="" is="" calculated="" by="" dividing="" the="" amount="" of="" dwelling="" rent="" uncollected="" by="" the="" total="" dwelling="" rent="" to="" be="" collected.="" pha="" means="" a="" public="" housing="" agency.="" as="" appropriate="" in="" accordance="" with="" sec.="" 901.1(b)(2),="" pha="" also="" includes="" ame.="" percentage="" of="" emergency="" work="" orders="" completed="" within="" 24="" hours="" is="" the="" ratio="" of="" emergency="" work="" orders="" completed="" in="" 24="" hours="" to="" the="" total="" number="" of="" emergency="" work="" orders.="" the="" formula="" for="" calculating="" this="" ratio="" is:="" total="" emergency="" work="" orders="" completed="" (or="" emergency="" status="" abated)="" in="" 24="" hours="" or="" less,="" divided="" by="" the="" total="" number="" of="" emergency="" work="" orders.="" pha-generated="" work="" order="" is="" any="" work="" order="" that="" is="" issued="" in="" response="" to="" a="" request="" from="" within="" the="" pha="" administration.="" preventive="" maintenance="" program="" is="" a="" program="" under="" which="" certain="" maintenance="" procedures="" are="" systematically="" performed="" at="" regular="" intervals="" to="" prevent="" premature="" deterioration="" of="" buildings="" and="" systems.="" the="" program="" is="" developed="" and="" regularly="" updated="" by="" the="" pha,="" and="" fully="" documents="" what="" work="" is="" to="" be="" performed="" and="" at="" what="" intervals.="" the="" program="" includes="" a="" system="" for="" tracking="" the="" performance="" of="" preventive="" maintenance="" work.="" preventive="" maintenance="" work="" order="" is="" any="" work="" done="" on="" a="" regularly="" scheduled="" basis="" in="" order="" to="" prevent="" deterioration="" or="" breakdowns="" in="" individual="" units="" or="" major="" systems.="" reduced="" actual="" vacancy="" rate="" within="" the="" previous="" three="" years="" is="" a="" comparison="" of="" the="" vacancy="" rate="" in="" the="" phmap="" assessment="" year="" (the="" immediate="" past="" fiscal="" year)="" with="" the="" vacancy="" rate="" of="" that="" fiscal="" year="" which="" is="" two="" years="" previous="" to="" the="" assessment="" year.="" it="" is="" calculated="" by="" subtracting="" the="" vacancy="" rate="" in="" the="" assessment="" year="" from="" the="" vacancy="" rate="" in="" the="" earlier="" year.="" if="" a="" pha="" elects="" to="" certify="" to="" the="" reduction="" of="" the="" vacancy="" rate="" within="" the="" previous="" three="" years,="" the="" pha="" shall="" retain="" justifying="" documentation="" to="" support="" its="" certification="" for="" hud="" post="" review.="" reduced="" the="" average="" time="" it="" took="" to="" complete="" non-emergency="" work="" orders="" during="" the="" previous="" three="" years="" is="" a="" comparison="" of="" the="" average="" time="" it="" took="" to="" complete="" non-emergency="" work="" orders="" in="" the="" phmap="" assessment="" year="" (the="" immediate="" past="" fiscal="" year)="" with="" the="" average="" time="" it="" took="" to="" complete="" non-emergency="" work="" orders="" of="" that="" fiscal="" year="" which="" is="" two="" years="" previous="" to="" the="" assessment="" year.="" it="" is="" calculated="" by="" subtracting="" the="" average="" time="" it="" took="" to="" complete="" non-emergency="" work="" orders="" in="" the="" phmap="" assessment="" year="" from="" the="" average="" time="" it="" took="" to="" complete="" non-emergency="" work="" orders="" in="" the="" earlier="" year.="" if="" a="" pha="" elects="" to="" certify="" to="" the="" reduction="" of="" the="" average="" time="" it="" took="" to="" complete="" non-emergency="" work="" orders="" during="" the="" previous="" three="" years,="" the="" pha="" shall="" retain="" justifying="" documentation="" to="" support="" its="" certification="" for="" hud="" post="" review.="" resident-generated="" work="" order="" is="" a="" work="" order="" issued="" by="" a="" pha="" in="" response="" to="" a="" request="" from="" a="" lease="" holder="" or="" family="" member="" of="" a="" lease="" holder.="" resident="" management="" corporation="" (rmc)="" means="" the="" entity="" that="" proposes="" to="" enter="" into,="" or="" that="" enters="" into,="" a="" management="" contract="" with="" a="" pha="" in="" accordance="" with="" 24="" cfr="" 964.120.="" as="" appropriate="" in="" accordance="" with="" sec.="" 901.1(b)(2),="" rmc="" also="" includes="" ame.="" routine="" operating="" expenses="" are="" all="" expenses="" which="" are="" normal,="" recurring="" fiscal="" year="" expenditures.="" routine="" expenses="" exclude="" those="" expenditures="" that="" are="" not="" normal="" fiscal="" year="" expenditures="" and="" those="" that="" clearly="" represent="" work="" of="" such="" a="" substantial="" nature="" that="" the="" expense="" is="" clearly="" not="" a="" routine="" occurrence.="" standards="" equivalent="" to="" hqs="" are="" housing/occupancy="" inspection="" standards="" that="" are="" equal="" to="" hud's="" section="" 8="" hqs.="" [[page="" 68936]]="" substantial="" default="" means="" a="" pha="" is="" determined="" by="" the="" department="" to="" be="" in="" violation="" of="" statutory,="" regulatory="" or="" contractual="" provisions="" or="" requirements,="" whether="" or="" not="" these="" violations="" would="" constitute="" a="" substantial="" default="" or="" a="" substantial="" breach="" under="" explicit="" provisions="" of="" the="" relevant="" annual="" contributions="" contract="" (acc)="" or="" a="" memorandum="" of="" agreement.="" unit="" days="" available="" are="" the="" number="" of="" days="" that="" the="" available="" units="" were="" available="" for="" occupancy="" in="" a="" pha="" fiscal="" year.="" unit="" days="" available="" are="" calculated="" by="" adding="" the="" number="" of="" days="" that="" each="" unit="" was="" available="" for="" occupancy="" in="" the="" year.="" units="" approved="" for="" non-dwelling="" use="" refers="" to="" units="" approved="" for="" non-dwelling="" status="" for="" use="" in="" the="" provision="" of="" social="" services,="" charitable="" purposes,="" public="" safety="" activities="" and="" resident="" services,="" or="" used="" in="" the="" support="" of="" economic="" self-sufficiency="" and="" anti-drug="" activities.="" units="" vacant="" due="" to="" circumstances="" and="" actions="" beyond="" the="" pha's="" control="" are="" dwelling="" units="" that="" are="" vacant="" due="" to="" circumstances="" and="" actions="" that="" prohibit="" the="" pha="" from="" occupying,="" selling,="" demolishing,="" rehabilitating,="" reconstructing,="" consolidating="" or="" modernizing="" the="" units.="" for="" purposes="" of="" this="" definition,="" circumstances="" and="" actions="" beyond="" the="" pha's="" control="" are="" limited="" to:="" (1)="" litigation.="" the="" effect="" of="" court="" litigation="" such="" as="" a="" court="" order="" or="" settlement="" agreement="" that="" is="" legally="" enforceable.="" an="" example="" would="" be="" units="" that="" are="" required="" to="" remain="" vacant="" because="" of="" fire/="" police="" investigations,="" coroner's="" seal,="" or="" as="" part="" of="" a="" court-ordered="" or="" hud-approved="" desegregation="" effort.="" (2)="" laws.="" federal="" or="" state="" laws="" of="" general="" applicability,="" or="" their="" implementing="" regulations.="" this="" category="" does="" not="" include="" units="" vacant="" only="" because="" they="" do="" not="" meet="" minimum="" housing="" and="" building="" code="" standards="" pertaining="" to="" construction="" or="" habitability="" under="" federal,="" state,="" or="" local="" laws="" or="" regulations,="" except="" when="" these="" code="" violations="" are="" caused="" for="" reasons="" beyond="" the="" control="" of="" the="" pha,="" rather="" than="" as="" a="" result="" of="" management="" and/or="" maintenance="" failures="" by="" the="" pha.="" examples="" of="" exempted="" units="" under="" this="" category="" are:="" vacant="" units="" that="" are="" documented="" to="" be="" uninhabitable="" for="" reasons="" beyond="" the="" pha's="" control="" due="" to="" high/unsafe="" levels="" of="" hazardous/toxic="" materials="" (e.g.,="" lead-based="" paint="" or="" asbestos),="" by="" order="" of="" the="" local="" health="" department="" or="" directive="" of="" the="" environmental="" protection="" agency,="" where="" the="" conditions="" causing="" the="" order="" are="" beyond="" the="" control="" of="" the="" pha,="" and="" units="" kept="" vacant="" because="" they="" became="" structurally="" unsound="" (e.g.,="" buildings="" damaged="" by="" shrinking/swelling="" subsoil="" or="" similar="" situations).="" other="" examples="" are="" vacant="" units="" in="" which="" resident="" property="" has="" been="" abandoned,="" but="" only="" if="" state="" law="" requires="" the="" property="" to="" be="" left="" in="" the="" unit="" for="" some="" period="" of="" time,="" and="" only="" for="" the="" period="" stated="" in="" the="" law="" and="" vacant="" units="" required="" to="" remain="" vacant="" because="" of="" fire/police="" investigations,="" coroner's="" seal,="" or="" court="" order.="" (3)="" changing="" market="" conditions.="" example="" of="" units="" in="" this="" category="" are="" small="" phas="" that="" are="" located="" in="" areas="" experiencing="" population="" loss="" or="" economic="" dislocations="" that="" face="" a="" lack="" of="" demand="" in="" the="" foreseeable="" future,="" even="" after="" the="" pha="" has="" taken="" aggressive="" marketing="" and="" outreach="" measures.="" where="" a="" pha="" claims="" extraordinary="" market="" conditions,="" the="" pha="" will="" be="" expected="" to="" document="" the="" market="" conditions="" to="" which="" it="" refers="" (the="" examples="" of="" changing="" population="" base="" and="" competing="" projects="" are="" the="" simplest),="" the="" explicit="" efforts="" that="" the="" pha="" has="" made="" to="" address="" those="" conditions,="" the="" likelihood="" that="" those="" conditions="" will="" be="" mitigated="" or="" eliminated="" in="" the="" near="" term,="" and="" why="" the="" market="" conditions="" are="" such="" that="" the="" pha="" is="" prevented="" from="" occupying,="" selling,="" demolishing,="" rehabilitating,="" reconstructing,="" consolidating="" or="" modernizing="" the="" vacant="" units.="" in="" order="" to="" justify="" the="" adjustment,="" the="" pha="" will="" need="" to="" document="" the="" specific="" market="" conditions="" that="" exist="" and="" document="" marketing="" and="" outreach="" efforts.="" the="" pha="" will="" need="" to="" describe="" when="" the="" downturn="" in="" market="" conditions="" occurred,="" the="" location(s)="" of="" the="" unit(s)="" effected,="" the="" likelihood="" that="" these="" circumstances="" will="" be="" mitigated="" or="" eliminated="" in="" the="" near="" term="" and="" why="" the="" market="" conditions="" are="" such="" that="" they="" are="" preventing="" the="" pha="" from="" occupying,="" selling,="" demolishing,="" rehabilitating,="" reconstructing,="" consolidating,="" or="" modernizing="" the="" vacant="" units.="" (4)="" natural="" disasters.="" these="" are="" vacant="" units="" that="" are="" documented="" to="" be="" uninhabitable="" because="" of="" damaged="" suffered="" as="" a="" result="" of="" natural="" disasters="" such="" as="" floods,="" earthquakes,="" hurricanes,="" tornadoes,="" etc.="" in="" the="" case="" of="" a="" ``natural="" disaster''="" claim,="" the="" pha="" would="" be="" expected="" to="" point="" to="" a="" proclamation="" by="" the="" president="" or="" the="" governor="" that="" the="" county="" or="" other="" local="" area="" in="" question="" has,="" in="" fact,="" been="" declared="" a="" disaster="" area.="" (5)="" insufficient="" funding.="" lack="" of="" funding="" for="" otherwise="" approvable="" applications="" made="" for="" comprehensive="" improvement="" assistance="" program="" (ciap)="" funds="" (only="" phas="" with="" less="" than="" 250="" units="" are="" eligible="" to="" apply="" and="" compete="" for="" ciap="" funds).="" this="" definition="" will="" cease="" to="" be="" used="" if="" ciap="" is="" replaced="" by="" a="" formula="" grant.="" (6)="" casualty="" losses.="" vacant="" units="" that="" have="" sustained="" casualty="" damage="" and="" are="" pending="" resolution="" of="" insurance="" claims="" or="" settlements,="" but="" only="" until="" the="" insurance="" claim="" is="" adjusted,="" i.e.,="" funds="" to="" repair="" the="" unit="" are="" received.="" the="" vacancy="" days="" exempted="" are="" those="" included="" in="" the="" period="" of="" time="" between="" the="" casualty="" loss="" and="" the="" receipt="" of="" funds="" from="" the="" insurer="" to="" cover="" the="" loss="" in="" whole="" or="" in="" part.="" vacancy="" day="" is="" a="" day="" when="" an="" available="" unit="" is="" not="" under="" lease="" by="" an="" eligible="" low-income="" resident.="" the="" maximum="" number="" of="" vacancy="" days="" for="" any="" unit="" is="" the="" number="" of="" days="" in="" the="" year,="" regardless="" of="" the="" total="" amount="" of="" time="" the="" unit="" has="" been="" vacant.="" vacancy="" days="" are="" calculated="" by="" adding="" the="" total="" number="" of="" days="" vacant="" from="" all="" available="" units="" that="" were="" vacant="" for="" any="" reason="" during="" the="" pha's="" fiscal="" year.="" vacant="" unit="" is="" an="" available="" unit="" that="" is="" not="" under="" lease="" to="" an="" eligible="" low-income="" family.="" vacant="" unit="" turnaround="" work="" order="" is="" a="" work="" order="" issued="" that="" directs="" a="" vacant="" unit="" to="" be="" made="" ready="" to="" lease="" to="" a="" new="" resident="" and="" reflects="" all="" work="" items="" to="" prepare="" the="" unit="" for="" occupancy.="" vacant="" unit="" undergoing="" modernization="" as="" defined="" in="" 24="" cfr="" sec.="" 990.102.="" in="" addition,="" the="" following="" apply="" when="" computing="" time="" periods="" for="" a="" vacant="" unit="" undergoing="" modernization:="" (1)="" if="" a="" unit="" is="" vacant="" prior="" to="" being="" included="" in="" a="" hud-approved="" modernization="" budget,="" those="" vacancy="" days="" that="" had="" accumulated="" prior="" to="" the="" unit="" being="" included="" in="" the="" modernization="" budget="" must="" be="" included="" as="" non-exempted="" vacancy="" days="" in="" the="" calculation.="" (2)="" the="" calculation="" of="" turnaround="" time="" for="" newly="" modernized="" units="" starts="" when="" the="" unit="" in="" turned="" over="" to="" the="" pha="" from="" the="" contractor="" and="" ends="" when="" the="" lease="" is="" effective="" for="" the="" new="" or="" returning="" resident.="" thus,="" the="" total="" turnaround="" time="" would="" be="" the="" sum="" of="" the="" pre-="" modernization="" vacancy="" time,="" and="" the="" post-modernization="" vacancy="" time.="" (3)="" unit-by-unit="" documentation,="" showing="" when="" a="" vacant="" unit="" was="" included="" in="" a="" hud-approved="" modernization="" budget,="" when="" it="" was="" released="" to="" the="" pha="" by="" the="" contractor,="" and="" when="" a="" new="" lease="" is="" effective="" for="" the="" new="" or="" returning="" resident,="" must="" be="" maintained="" by="" the="" pha.="" (4)="" units="" remaining="" vacant="" more="" than="" two="" ffys="" after="" the="" ffy="" in="" which="" the="" modernization="" funds="" are="" approved,="" may="" no="" longer="" be="" exempted="" from="" the="" [[page="" 68937]]="" calculation="" of="" the="" adjusted="" vacancy="" rate="" if="" the="" construction="" contract="" has="" not="" been="" let.="" these="" units="" may="" be="" exempted="" again,="" but="" only="" after="" a="" contract="" is="" let.="" vacant="" units="" approved="" for="" deprogramming="" exist="" when="" a="" pha's="" application="" for="" the="" demolition="" and/or="" disposition="" of="" public="" housing="" units="" has="" received="" written="" approval="" from="" hud;="" or="" when="" a="" pha's="" application="" to="" combine/convert="" has="" received="" written="" approval="" from="" hud.="" work="" order="" is="" a="" directive,="" containing="" one="" or="" more="" tasks="" issued="" to="" a="" pha="" employee="" or="" contractor="" to="" perform="" one="" or="" more="" tasks="" on="" pha="" property.="" this="" directive="" describes="" the="" location="" and="" the="" type="" of="" work="" to="" be="" performed;="" the="" date="" and="" time="" of="" receipt;="" date="" and="" time="" issued="" to="" the="" person="" or="" entity="" performing="" the="" work;="" the="" date="" and="" time="" the="" work="" is="" satisfactorily="" completed;="" the="" parts="" used="" to="" complete="" the="" repairs="" and="" the="" cost="" of="" the="" parts;="" whether="" the="" damage="" was="" caused="" by="" the="" resident;="" and="" the="" charges="" to="" the="" resident="" for="" resident-caused="" damage.="" the="" work="" order="" is="" entered="" into="" a="" log="" which="" indicates="" at="" all="" times="" the="" status="" of="" all="" work="" orders="" as="" to="" type="" (emergency,="" non-emergency),="" when="" issued,="" and="" when="" completed.="" work="" order="" completed="" during="" the="" immediate="" past="" fiscal="" year="" is="" any="" work="" order="" that="" is="" completed="" during="" the="" pha's="" fiscal="" year="" regardless="" of="" when="" it="" may="" have="" been="" received.="" work="" order="" deferred="" for="" modernization="" is="" any="" work="" order="" that="" is="" combined="" with="" similar="" work="" items="" and="" completed="" within="" the="" current="" phmap="" assessment="" year,="" or="" will="" be="" completed="" in="" the="" following="" year="" if="" there="" are="" less="" than="" three="" months="" remaining="" before="" the="" end="" of="" the="" pha="" fiscal="" year="" when="" the="" work="" order="" was="" generated,="" under="" the="" pha's="" modernization="" program="" or="" other="" pha="" capital="" improvements="" program.="" sec.="" 901.10="" indicator="" #1,="" vacancy="" rate="" and="" unit="" turnaround="" time.="" this="" indicator="" examines="" the="" vacancy="" rate,="" a="" pha's="" progress="" in="" reducing="" vacancies,="" and="" unit="" turnaround="" time.="" implicit="" in="" this="" indicator="" is="" the="" adequacy="" of="" the="" pha's="" system="" to="" track="" the="" duration="" of="" vacancies="" and="" unit="" turnaround,="" including="" down="" time,="" make="" ready="" time,="" and="" lease="" up="" time.="" this="" indicator="" has="" a="" weight="" of="" x2.="" (a)="" for="" the="" calculation="" of="" the="" actual="" and="" adjusted="" vacancy="" rate="" (and,="" if="" applicable,="" unit="" turnaround="" time),="" the="" following="" three="" categories="" of="" units="" (as="" defined="" in="" the="" rule="" at="" sec.="" 901.5),="" that="" are="" not="" considered="" available="" for="" occupancy,="" will="" be="" completely="" excluded="" from="" the="" computation:="" (1)="" units="" approved="" for="" non-dwelling="" use.="" (2)="" employee="" occupied="" units.="" (3)="" vacant="" units="" approved="" for="" deprogramming="" (i.e.,="" demolition,="" disposition="" or="" units="" that="" have="" been="" combined).="" (b)="" for="" the="" calculation="" of="" the="" adjusted="" vacancy="" rate="" and="" turnaround="" time,="" the="" vacancy="" days="" for="" units="" in="" the="" following="" categories="" (fully="" defined="" in="" the="" rule="" at="" sec.="" 901.5)="" shall="" be="" exempted:="" (1)="" vacant="" units="" undergoing="" modernization="" as="" defined="" in="" sec.="" 901.5.="" (i)="" only="" vacancy="" days="" associated="" with="" a="" vacant="" unit="" that="" meets="" the="" conditions="" of="" being="" a="" unit="" undergoing="" modernization="" will="" be="" exempted="" when="" calculating="" the="" adjusted="" vacancy="" rate="" or,="" if="" necessary,="" the="" unit="" turnaround="" time.="" neither="" vacancy="" days="" associated="" with="" a="" vacant="" unit="" prior="" to="" that="" unit="" meeting="" the="" conditions="" of="" being="" a="" unit="" undergoing="" modernization="" nor="" vacancy="" days="" associated="" with="" a="" vacant="" unit="" after="" construction="" work="" has="" been="" completed="" or="" after="" the="" time="" period="" for="" placing="" the="" vacant="" unit="" under="" construction="" has="" expired="" shall="" be="" exempted.="" (ii)="" a="" pha="" must="" maintain="" the="" following="" documentation="" to="" support="" its="" determination="" of="" vacancy="" days="" associated="" with="" a="" vacant="" unit="" that="" meets="" the="" conditions="" of="" being="" a="" unit="" undergoing="" modernization:="" (a)="" the="" date="" on="" which="" the="" unit="" met="" the="" conditions="" of="" being="" a="" vacant="" unit="" undergoing="" modernization:="" and="" (b)="" the="" date="" on="" which="" construction="" work="" was="" completed="" or="" the="" time="" period="" for="" placing="" the="" vacant="" unit="" under="" construction="" expired.="" (2)="" units="" vacant="" due="" to="" circumstances="" and="" actions="" beyond="" the="" pha's="" control="" as="" defined="" in="" sec.="" 901.5.="" such="" circumstances="" and="" actions="" may="" include:="" (i)="" litigation,="" such="" as="" a="" court="" order="" or="" settlement="" agreement="" that="" is="" legally="" enforceable.="" (ii)="" federal="" or,="" when="" not="" preempted="" by="" federal="" requirements,="" state="" law="" of="" general="" applicability="" or="" their="" implementing="" regulations.="" (iii)="" changing="" market="" conditions.="" (iv)="" natural="" disasters.="" (v)="" insufficient="" funding="" for="" otherwise="" approvable="" applications="" made="" for="" ciap="" funds.="" this="" definition="" will="" cease="" to="" be="" used="" if="" ciap="" is="" replaced="" by="" a="" formula="" grant.="" (vi)="" vacant="" units="" that="" have="" sustained="" casualty="" damage="" and="" are="" pending="" resolution="" of="" insurance="" claims="" or="" settlements,="" but="" only="" until="" the="" insurance="" claim="" is="" adjusted.="" a="" pha="" must="" maintain="" at="" least="" the="" following="" documentation="" to="" support="" its="" determination="" of="" vacancy="" days="" associated="" with="" units="" vacant="" due="" to="" circumstances="" and="" actions="" beyond="" the="" pha's="" control:="" (a)="" the="" date="" on="" which="" the="" unit="" met="" the="" conditions="" of="" being="" a="" unit="" vacant="" due="" to="" circumstances="" and="" actions="" beyond="" the="" pha's="" control;="" (b)="" documentation="" identifying="" the="" specific="" conditions="" that="" distinguish="" the="" unit="" as="" a="" unit="" vacant="" due="" to="" circumstances="" and="" actions="" beyond="" the="" pha's="" control="" as="" defined="" in="" sec.="" 901.5;="" (c)="" the="" actions="" taken="" by="" the="" pha="" to="" eliminate="" or="" mitigate="" these="" conditions;="" and="" (d)="" the="" date="" on="" which="" the="" unit="" ceased="" to="" meet="" such="" conditions="" and="" became="" an="" available="" unit.="" (e)="" this="" supporting="" documentation="" is="" subject="" to="" review="" and="" may="" be="" requested="" for="" verification="" purposes="" at="" any="" time="" by="" hud.="" (c)="" component="" #1,="" vacancy="" percentage="" and="" progress="" in="" reducing="" vacancies.="" a="" pha="" may="" choose="" whether="" to="" use="" the="" actual="" vacancy="" rate,="" the="" adjusted="" vacancy="" rate="" or="" a="" reduction="" in="" the="" actual="" vacancy="" rate="" within="" the="" past="" three="" years.="" this="" component="" has="" a="" weight="" of="" x2.="" (1)="" grade="" a:="" the="" pha="" is="" in="" one="" of="" the="" following="" categories:="" (i)="" an="" actual="" vacancy="" rate="" of="" 3%="" or="" less;="" or="" (ii)="" an="" adjusted="" vacancy="" rate="" of="" 2%="" or="" less.="" (2)="" grade="" b:="" the="" pha="" is="" in="" one="" of="" the="" following="" categories:="" (i)="" an="" actual="" vacancy="" rate="" of="" greater="" than="" 3%="" and="" less="" than="" or="" equal="" to="" 5%;="" or="" (ii)="" an="" adjusted="" vacancy="" rate="" of="" greater="" than="" 2%="" and="" less="" than="" or="" equal="" to="" 3%.="" (3)="" grade="" c:="" the="" pha="" is="" in="" one="" of="" the="" following="" categories:="" (i)="" an="" actual="" vacancy="" rate="" of="" greater="" than="" 5%="" and="" less="" than="" or="" equal="" to="" 7%;="" or="" (ii)="" an="" adjusted="" vacancy="" rate="" of="" greater="" than="" 3%="" and="" less="" than="" or="" equal="" to="" 4%;="" or="" (iii)="" the="" pha="" has="" reduced="" its="" actual="" vacancy="" rate="" by="" at="" least="" 15="" percentage="" points="" within="" the="" past="" three="" years="" and="" has="" an="" adjusted="" vacancy="" rate="" of="" greater="" than="" 4%="" and="" less="" than="" or="" equal="" to="" 5%.="" (4)="" grade="" d:="" the="" pha="" is="" in="" one="" of="" the="" following="" categories:="" (i)="" an="" actual="" vacancy="" rate="" of="" greater="" than="" 7%="" and="" less="" than="" or="" equal="" to="" 9%;="" or="" (ii)="" an="" adjusted="" vacancy="" rate="" of="" greater="" than="" 4%="" and="" less="" than="" or="" equal="" to="" 5%;="" or="" (iii)="" the="" pha="" has="" reduced="" its="" actual="" vacancy="" rate="" by="" at="" least="" 10="" percentage="" points="" within="" the="" past="" three="" years="" and="" has="" an="" adjusted="" vacancy="" rate="" of="" greater="" than="" 5%="" and="" less="" than="" or="" equal="" to="" 6%.="" (5)="" grade="" e:="" the="" pha="" is="" in="" one="" of="" the="" following="" categories:="" [[page="" 68938]]="" (i)="" an="" actual="" vacancy="" rate="" of="" greater="" than="" 9%="" and="" less="" than="" or="" equal="" to="" 10%;="" or="" (ii)="" an="" adjusted="" vacancy="" rate="" of="" greater="" than="" 5%="" and="" less="" than="" or="" equal="" to="" 6%;="" or="" (iii)="" the="" pha="" has="" reduced="" its="" actual="" vacancy="" rate="" by="" at="" least="" five="" percentage="" points="" within="" the="" past="" three="" years="" and="" has="" an="" adjusted="" vacancy="" rate="" of="" greater="" than="" 6%="" and="" less="" than="" or="" equal="" to="" 7%.="" (6)="" grade="" f:="" the="" pha="" is="" in="" one="" of="" the="" following="" categories:="" (i)="" an="" actual="" vacancy="" rate="" greater="" than="" 10%;="" or="" (ii)="" an="" adjusted="" vacancy="" rate="" greater="" than="" 7%;="" or="" (iii)="" an="" adjusted="" vacancy="" rate="" of="" greater="" than="" 6%="" and="" less="" than="" or="" equal="" to="" 7%="" and="" the="" pha="" has="" not="" reduced="" its="" actual="" vacancy="" rate="" by="" at="" least="" five="" percentage="" points="" within="" the="" past="" three="" years.="" (d)="" component="" #2,="" unit="" turnaround="" time.="" this="" component="" is="" to="" be="" completed="" only="" by="" phas="" scoring="" below="" a="" grade="" c="" on="" component="" #1.="" this="" component="" has="" a="" weight="" of="" x1.="" (1)="" grade="" a:="" the="" average="" number="" of="" calendar="" days="" between="" the="" time="" when="" a="" unit="" is="" vacated="" and="" a="" new="" lease="" takes="" effect="" for="" units="" re-="" occupied="" during="" the="" pha's="" assessed="" fiscal="" year,="" is="" less="" than="" or="" equal="" to="" 20="" calendar="" days.="" (2)="" grade="" b:="" the="" average="" number="" of="" calendar="" days="" between="" the="" time="" when="" a="" unit="" is="" vacated="" and="" a="" new="" lease="" takes="" effect="" for="" units="" re-="" occupied="" during="" the="" pha's="" assessed="" fiscal="" year,="" is="" greater="" than="" 20="" calendar="" days="" and="" less="" than="" or="" equal="" to="" 25="" calendar="" days.="" (3)="" grade="" c:="" the="" average="" number="" of="" calendar="" days="" between="" the="" time="" when="" a="" unit="" is="" vacated="" and="" a="" new="" lease="" takes="" effect="" for="" units="" re-="" occupied="" during="" the="" pha's="" assessed="" fiscal="" year,="" is="" greater="" than="" 25="" calendar="" days="" and="" less="" than="" or="" equal="" to="" 30="" calendar="" days.="" (4)="" grade="" d:="" the="" average="" number="" of="" calendar="" days="" between="" the="" time="" when="" a="" unit="" is="" vacated="" and="" a="" new="" lease="" takes="" effect="" for="" units="" re-="" occupied="" during="" the="" pha's="" assessed="" fiscal="" year,="" is="" greater="" than="" 30="" calendar="" days="" and="" less="" than="" or="" equal="" to="" 40="" calendar="" days.="" (5)="" grade="" e:="" the="" average="" number="" of="" calendar="" days="" between="" the="" time="" when="" a="" unit="" is="" vacated="" and="" a="" new="" lease="" takes="" effect="" for="" units="" re-="" occupied="" during="" the="" pha's="" assessed="" fiscal="" year,="" is="" greater="" than="" 40="" calendar="" days="" and="" less="" than="" or="" equal="" to="" 50="" calendar="" days.="" (6)="" grade="" f:="" the="" average="" number="" of="" calendar="" days="" between="" the="" time="" when="" a="" unit="" is="" vacated="" and="" a="" new="" lease="" takes="" effect="" for="" units="" re-="" occupied="" during="" the="" pha's="" assessed="" fiscal="" year,="" is="" greater="" than="" 50="" calendar="" days.="" sec.="" 901.15="" indicator="" #2,="" modernization.="" this="" indicator="" is="" automatically="" excluded="" if="" a="" pha="" does="" not="" have="" a="" modernization="" program.="" this="" indicator="" examines="" the="" amount="" of="" unexpended="" funds="" over="" three="" federal="" fiscal="" years="" (ffy)="" old,="" the="" timeliness="" of="" fund="" obligation,="" the="" adequacy="" of="" contract="" administration,="" the="" quality="" of="" the="" physical="" work,="" and="" the="" adequacy="" of="" budget="" controls.="" all="" components="" apply="" to="" both="" the="" comprehensive="" grant="" program="" (cgp),="" the="" comprehensive="" improvement="" assistance="" program="" (ciap)="" and="" lead="" based="" paint="" risk="" assessment="" funding="" (1992-1995),="" and="" any="" successor="" program(s)="" to="" the="" cgp="" or="" the="" ciap.="" only="" components="" #3,="" #4="" and="" #5="" apply="" to="" funding="" under="" the="" hope="" vi="" program="" and="" the="" vacancy="" reduction="" program="" for="" the="" assessment="" of="" this="" indicator.="" this="" indicator="" has="" a="" weight="" of="" x1.5.="" (a)="" component="" #1,="" unexpended="" funds="" over="" three="" federal="" fiscal="" years="" (ffys)="" old.="" this="" component="" has="" a="" weight="" of="" x1.="" (1)="" grade="" a:="" the="" pha="" has="" no="" unexpended="" funds="" over="" three="" ffys="" old="" or="" is="" able="" to="" demonstrate="" one="" of="" the="" following:="" (i)="" the="" unexpended="" funds="" are="" leftover="" funds="" and="" will="" be="" recaptured="" after="" audit;="" (ii)="" there="" are="" no="" unexpended="" funds="" past="" the="" original="" hud-approved="" implementation="" schedule="" deadline="" that="" allowed="" longer="" than="" three="" ffys;="" or="" (iii)="" the="" pha="" has="" extended="" the="" time="" within="" 30="" calendar="" days="" after="" the="" expenditure="" deadline="" and="" the="" time="" extension="" is="" based="" on="" reasons="" outside="" of="" the="" pha's="" control,="" such="" as="" need="" to="" use="" leftover="" funds,="" unforeseen="" delays="" in="" contracting="" or="" contract="" administration,="" litigation,="" material="" shortages,="" or="" other="" non-pha="" institutional="" delay.="" (2)="" grade="" f:="" the="" pha="" has="" unexpended="" funds="" over="" three="" ffys="" old="" and="" is="" unable="" to="" demonstrate="" any="" of="" the="" above="" three="" conditions;="" or="" the="" pha="" requests="" hud="" approval="" of="" a="" time="" extension="" based="" on="" reasons="" within="" the="" pha's="" control.="" (b)="" component="" #2,="" timeliness="" of="" fund="" obligation.="" this="" component="" has="" a="" weight="" of="" x2.="" (1)="" grade="" a:="" the="" pha="" has="" no="" unobligated="" funds="" over="" two="" ffys="" old="" or="" is="" able="" to="" demonstrate="" one="" of="" the="" following:="" (i)="" there="" are="" no="" unobligated="" funds="" past="" the="" original="" hud-approved="" implementation="" schedule="" deadline="" that="" allowed="" longer="" than="" two="" ffys;="" or="" (ii)="" the="" pha="" has="" extended="" the="" time="" within="" 30="" calendar="" days="" after="" the="" obligation="" deadline="" and="" the="" time="" extension="" is="" based="" on="" reasons="" outside="" of="" the="" pha's="" control,="" such="" as="" need="" to="" use="" leftover="" funds,="" unforeseen="" delays="" in="" contracting="" or="" contract="" administration,="" litigation,="" material="" shortages,="" or="" other="" non-pha="" institutional="" delay.="" (2)="" grade="" f:="" the="" pha="" has="" unobligated="" funds="" over="" two="" ffys="" old="" and="" is="" unable="" to="" demonstrate="" any="" of="" the="" above="" two="" conditions;="" or="" the="" pha="" requests="" hud="" approval="" of="" a="" time="" extension="" based="" on="" reasons="" within="" the="" pha's="" control.="" (c)="" component="" #3,="" adequacy="" of="" contract="" administration.="" for="" the="" purposes="" of="" this="" component,="" the="" term="" ``findings''="" means="" a="" violation="" of="" a="" statute,="" regulation,="" annual="" contributions="" contract="" or="" other="" hud="" requirement="" in="" the="" area="" of="" contract="" administration.="" this="" component="" has="" a="" weight="" of="" x1.5.="" (1)="" grade="" a:="" based="" on="" hud's="" latest="" on-site="" inspection="" and/or="" audit,="" where="" a="" written="" report="" was="" provided="" to="" the="" pha="" at="" least="" 75="" calendar="" days="" before="" the="" end="" of="" the="" pha's="" fiscal="" year,="" there="" were="" no="" findings="" related="" to="" contract="" administration="" or="" the="" pha="" has="" corrected="" all="" such="" findings.="" (2)="" grade="" c:="" based="" on="" hud's="" latest="" on-site="" inspection="" and/or="" audit,="" where="" a="" written="" report="" was="" provided="" to="" the="" pha="" at="" least="" 75="" calendar="" days="" before="" the="" end="" of="" the="" pha's="" fiscal="" year,="" there="" were="" findings="" related="" to="" contract="" administration="" and="" the="" pha="" is="" in="" the="" process="" of="" correcting="" all="" such="" findings.="" (3)="" grade="" f:="" based="" on="" hud's="" latest="" on-site="" inspection="" and/or="" audit,="" where="" a="" written="" report="" was="" provided="" to="" the="" pha="" at="" least="" 75="" calendar="" days="" before="" the="" end="" of="" the="" pha's="" fiscal="" year,="" there="" were="" findings="" related="" to="" contract="" administration="" and="" the="" pha="" has="" failed="" to="" initiate="" corrective="" actions="" for="" all="" such="" findings="" or="" those="" actions="" which="" have="" been="" initiated="" have="" not="" resulted="" in="" progress="" toward="" remedying="" all="" of="" the="" findings.="" (d)="" component="" #4,="" quality="" of="" the="" physical="" work.="" for="" the="" purposes="" of="" this="" component,="" the="" term="" ``findings''="" means="" a="" violation="" of="" a="" statute,="" regulation,="" annual="" contributions="" contract="" or="" other="" hud="" requirement="" in="" the="" area="" of="" physical="" work="" quality.="" this="" component="" has="" a="" weight="" of="" x3.="" (1)="" grade="" a:="" based="" on="" hud's="" latest="" on-site="" inspection,="" where="" a="" written="" report="" was="" provided="" to="" the="" pha="" at="" least="" 75="" calendar="" days="" before="" the="" end="" of="" the="" pha's="" fiscal="" year,="" there="" were="" no="" findings="" related="" to="" the="" quality="" of="" the="" physical="" work="" or="" the="" pha="" has="" corrected="" all="" such="" findings.="" (2)="" grade="" c:="" based="" on="" hud's="" latest="" on-site="" inspection,="" where="" a="" written="" report="" was="" provided="" to="" the="" pha="" at="" least="" 75="" calendar="" days="" before="" the="" end="" of="" the="" pha's="" fiscal="" year,="" there="" were="" findings="" related="" to="" the="" quality="" of="" the="" physical="" [[page="" 68939]]="" work="" and="" the="" pha="" is="" in="" the="" process="" of="" correcting="" all="" such="" findings.="" (3)="" grade="" f:="" based="" on="" hud's="" latest="" on-site="" inspection,="" where="" a="" written="" report="" was="" provided="" to="" the="" pha="" at="" least="" 75="" calendar="" days="" before="" the="" end="" of="" the="" pha's="" fiscal="" year,="" there="" were="" findings="" related="" to="" the="" quality="" of="" the="" physical="" work="" and="" the="" pha="" has="" failed="" to="" initiate="" corrective="" actions="" for="" all="" such="" findings="" or="" those="" actions="" which="" have="" been="" initiated="" have="" not="" resulted="" in="" progress="" toward="" remedying="" all="" of="" the="" findings.="" (e)="" component="" #5,="" adequacy="" of="" budget="" controls.="" this="" component="" has="" a="" weight="" of="" x1.="" (1)="" grade="" a:="" the="" cgp="" pha="" has="" expended="" modernization="" funds="" only="" on="" work="" in="" hud-approved="" cgp="" annual="" statements,="" cgp="" five-year="" action="" plan,="" excluding="" emergencies,="" or="" ciap="" budgets,="" or="" has="" obtained="" prior="" hud="" approval="" for="" required="" budget="" revisions.="" the="" ciap="" pha="" has="" expended="" modernization="" funds="" only="" on="" work="" in="" hud-approved="" ciap="" budgets="" or="" related="" to="" originally="" approved="" work="" or="" has="" obtained="" prior="" hud="" approval="" for="" required="" budget="" revisions.="" (2)="" grade="" f:="" the="" cgp="" pha="" has="" expended="" modernization="" funds="" on="" work="" that="" was="" not="" in="" hud-approved="" cgp="" annual="" statements,="" cgp="" five-year="" action="" plan,="" excluding="" emergencies,="" or="" ciap="" budgets,="" and="" did="" not="" obtain="" prior="" hud="" approval="" for="" required="" budget="" revisions.="" the="" ciap="" pha="" has="" expended="" modernization="" funds="" on="" work="" that="" was="" not="" in="" hud-approved="" ciap="" budgets="" or="" was="" unrelated="" to="" originally="" approved="" work="" and="" did="" not="" obtain="" prior="" hud="" approval="" for="" required="" budget="" revisions.="" sec.="" 901.20="" indicator="" #3,="" rents="" uncollected.="" this="" indicator="" examines="" the="" pha's="" ability="" to="" collect="" dwelling="" rent="" owed="" by="" residents="" in="" possession="" during="" the="" immediate="" past="" fiscal="" year="" by="" measuring="" the="" balance="" of="" dwelling="" rents="" uncollected="" as="" a="" percentage="" of="" total="" dwelling="" rents="" to="" be="" collected.="" this="" indicator="" has="" a="" weight="" of="" x1.5.="" (a)="" grade="" a:="" the="" percent="" of="" dwelling="" rent="" uncollected="" in="" the="" immediate="" past="" fiscal="" year="" is="" less="" than="" or="" equal="" to="" 2%="" of="" total="" dwelling="" rent="" to="" be="" collected.="" (b)="" grade="" b:="" the="" percent="" of="" dwelling="" rent="" uncollected="" in="" the="" immediate="" past="" fiscal="" year="" is="" greater="" than="" 2%="" and="" less="" than="" or="" equal="" to="" 4%="" of="" total="" dwelling="" rent="" to="" be="" collected.="" (c)="" grade="" c:="" the="" percent="" of="" dwelling="" rent="" uncollected="" in="" the="" immediate="" past="" fiscal="" year="" is="" greater="" than="" 4%="" and="" less="" than="" or="" equal="" to="" 6%="" of="" total="" dwelling="" rent="" to="" be="" collected.="" (d)="" grade="" d:="" the="" percent="" of="" dwelling="" rent="" uncollected="" in="" the="" immediate="" past="" fiscal="" year="" is="" greater="" than="" 6%="" and="" less="" than="" or="" equal="" to="" 8%="" of="" total="" dwelling="" rent="" to="" be="" collected.="" (e)="" grade="" e:="" the="" percent="" of="" dwelling="" rent="" uncollected="" in="" the="" immediate="" past="" fiscal="" year="" is="" greater="" than="" 8%="" and="" less="" than="" or="" equal="" to="" 10%="" of="" total="" dwelling="" rent="" to="" be="" collected.="" (f)="" grade="" f:="" the="" percent="" of="" dwelling="" rent="" uncollected="" in="" the="" immediate="" past="" fiscal="" year="" is="" greater="" than="" 10%="" of="" total="" dwelling="" rent="" to="" be="" collected.="" sec.="" 901.25="" indicator="" #4,="" work="" orders.="" this="" indicator="" examines="" the="" average="" number="" of="" days="" it="" takes="" for="" a="" work="" order="" to="" be="" completed,="" and="" any="" progress="" a="" pha="" has="" made="" during="" the="" preceding="" three="" years="" to="" reduce="" the="" period="" of="" time="" required="" to="" complete="" maintenance="" work="" orders.="" implicit="" in="" this="" indicator="" is="" the="" adequacy="" of="" the="" pha's="" work="" order="" system="" in="" terms="" of="" how="" a="" pha="" accounts="" for="" and="" controls="" its="" work="" orders,="" and="" its="" timeliness="" in="" preparing/issuing="" work="" orders.="" this="" indicator="" has="" a="" weight="" of="" x1.="" (a)="" component="" #1,="" emergency="" work="" orders="" completed="" within="" 24="" hours="" or="" less.="" all="" emergency="" work="" orders="" should="" be="" tracked.="" this="" component="" has="" a="" weight="" of="" x1.="" (1)="" grade="" a:="" at="" least="" 99%="" of="" emergency="" work="" orders="" were="" completed="" or="" the="" emergency="" was="" abated="" within="" 24="" hours="" or="" less="" during="" the="" pha's="" immediate="" past="" fiscal="" year.="" (2)="" grade="" b:="" at="" least="" 98%="" of="" emergency="" work="" orders="" were="" completed="" or="" the="" emergency="" was="" abated="" within="" 24="" hours="" or="" less="" during="" the="" pha's="" immediate="" past="" fiscal="" year.="" (3)="" grade="" c:="" at="" least="" 97%="" of="" emergency="" work="" orders="" were="" completed="" or="" the="" emergency="" was="" abated="" within="" 24="" hours="" or="" less="" during="" the="" pha's="" immediate="" past="" fiscal="" year.="" (4)="" grade="" d:="" at="" least="" 96%="" of="" emergency="" work="" orders="" were="" completed="" or="" the="" emergency="" was="" abated="" within="" 24="" hours="" or="" less="" during="" the="" pha's="" immediate="" past="" fiscal="" year.="" (5)="" grade="" e:="" at="" least="" 95%="" of="" emergency="" work="" orders="" were="" completed="" or="" the="" emergency="" was="" abated="" within="" 24="" hours="" or="" less="" during="" the="" pha's="" immediate="" past="" fiscal="" year.="" (6)="" grade="" f:="" less="" than="" 95%="" of="" emergency="" work="" orders="" were="" completed="" or="" the="" emergency="" was="" abated="" within="" 24="" hours="" or="" less="" during="" the="" pha's="" immediate="" past="" fiscal="" year.="" (b)="" component="" #2,="" average="" number="" of="" days="" for="" non-emergency="" work="" orders="" to="" be="" completed.="" all="" non-emergency="" work="" orders="" that="" were="" active="" during="" the="" assessed="" fiscal="" year="" should="" be="" tracked="" (including="" preventive="" maintenance="" work="" orders),="" except="" non-emergency="" work="" orders="" from="" the="" date="" they="" are="" deferred="" for="" modernization,="" issued="" to="" prepare="" a="" vacant="" unit="" for="" re-rental,="" or="" issued="" for="" the="" performance="" of="" cyclical="" maintenance.="" this="" component="" has="" a="" weight="" of="" x2.="" (1)="" grade="" a:="" all="" non-emergency="" work="" orders="" are="" completed="" within="" an="" average="" of="" 25="" calendar="" days.="" (2)="" grade="" b:="" all="" non-emergency="" work="" orders="" are="" completed="" within="" an="" average="" of="" greater="" than="" 25="" calendar="" days="" and="" less="" than="" or="" equal="" to="" 30="" calendar="" days.="" (3)="" grade="" c:="" the="" pha="" is="" in="" one="" of="" the="" following="" categories:="" (i)="" all="" non-emergency="" work="" orders="" are="" completed="" within="" an="" average="" of="" greater="" than="" 30="" calendar="" days="" and="" less="" than="" or="" equal="" to="" 40="" calendar="" days;="" or="" (ii)="" the="" pha="" has="" reduced="" the="" average="" time="" it="" takes="" to="" complete="" non-="" emergency="" work="" orders="" by="" at="" least="" 15="" days="" during="" the="" past="" three="" years.="" (4)="" grade="" d:="" the="" pha="" is="" in="" one="" of="" the="" following="" categories:="" (i)="" all="" non-emergency="" work="" orders="" are="" completed="" within="" an="" average="" of="" greater="" than="" 40="" calendar="" days="" and="" less="" than="" or="" equal="" to="" 50="" calendar="" days;="" or="" (ii)="" the="" pha="" has="" reduced="" the="" average="" time="" it="" takes="" to="" complete="" non="" emergency="" work="" orders="" by="" at="" least="" 10="" days="" during="" the="" past="" three="" years.="" (5)="" grade="" e:="" the="" pha="" is="" in="" one="" of="" the="" following="" categories:="" (i)="" all="" non-emergency="" work="" orders="" are="" completed="" within="" an="" average="" of="" greater="" than="" 50="" calendar="" days="" and="" less="" than="" or="" equal="" to="" 60="" calendar="" days;="" or="" (ii)="" the="" pha="" has="" reduced="" the="" average="" time="" it="" takes="" to="" complete="" non-="" emergency="" work="" orders="" by="" at="" least="" 5="" days="" during="" the="" past="" three="" years.="" (6)="" grade="" f:="" the="" pha="" is="" in="" one="" of="" the="" following="" categories:="" (i)="" all="" non-emergency="" work="" orders="" are="" completed="" within="" an="" average="" of="" greater="" than="" 60="" calendar="" days;="" or="" (ii)="" the="" pha="" has="" not="" reduced="" the="" average="" time="" it="" takes="" to="" complete="" non-emergency="" work="" orders="" by="" at="" least="" 5="" days="" during="" the="" past="" three="" years.="" sec.="" 901.30="" indicator="" #5,="" annual="" inspection="" of="" units="" and="" systems.="" this="" indicator="" examines="" the="" percentage="" of="" units="" that="" a="" pha="" inspects="" on="" an="" annual="" basis="" in="" order="" to="" determine="" short-term="" maintenance="" needs="" and="" long-term="" modernization="" needs.="" implicit="" in="" this="" indicator="" is="" the="" adequacy="" of="" the="" pha's="" inspection="" program="" in="" terms="" of="" the="" quality="" of="" a="" pha's="" inspections,="" and="" how="" a="" pha="" tracks="" both="" inspections="" and="" needed="" repairs.="" all="" occupied="" units="" are="" required="" to="" be="" inspected.="" this="" indicator="" has="" a="" weight="" of="" x1.="" (a)="" units="" in="" the="" following="" categories="" are="" exempted="" and="" not="" included="" in="" the="" calculation="" of="" the="" total="" number="" of="" units,="" [[page="" 68940]]="" and="" the="" number="" and="" percentage="" of="" units="" inspected.="" systems="" that="" are="" a="" part="" of="" individual="" dwelling="" units="" that="" are="" exempted,="" or="" a="" part="" of="" a="" building="" where="" all="" of="" the="" dwelling="" units="" in="" the="" building="" are="" exempted,="" are="" also="" exempted="" from="" the="" calculation="" of="" this="" indicator:="" (1)="" occupied="" units="" where="" the="" pha="" has="" made="" two="" documented="" attempts="" to="" inspect,="" but="" only="" if="" the="" pha="" can="" document="" that="" appropriate="" legal="" action="" (up="" to="" and="" including="" eviction="" of="" the="" legal="" or="" illegal="" occupant(s)),="" has="" been="" taken="" under="" provisions="" of="" the="" lease="" to="" ensure="" that="" the="" unit="" can="" be="" subsequently="" inspected.="" (2)="" units="" vacant="" for="" the="" full="" immediate="" past="" fiscal="" year="" for="" the="" following="" reasons,="" as="" defined="" at="" sec.="" 901.5:="" (i)="" vacant="" units="" undergoing="" modernization;="" and="" (ii)="" vacant="" units="" that="" are="" documented="" to="" be="" uninhabitable="" for="" reasons="" beyond="" a="" pha's="" control="" due="" to:="" (a)="" high/unsafe="" levels="" of="" hazardous/toxic="" materials;="" (b)="" by="" order="" of="" the="" local="" health="" department="" or="" a="" directive="" of="" the="" environmental="" protection="" agency;="" (c)="" natural="" disasters;="" and="" (d)="" units="" kept="" vacant="" because="" they="" became="" structurally="" unsound.="" (b)="" component="" #1,="" annual="" inspection="" of="" units.="" this="" component="" refers="" to="" an="" inspection="" using="" either="" the="" local="" housing="" and/or="" occupancy="" code,="" or="" hud="" hqs="" if="" there="" is="" no="" local="" code="" or="" the="" local="" code="" is="" less="" stringent="" that="" hqs.="" this="" component="" has="" a="" weight="" of="" x1.="" (1)="" grade="" a:="" the="" pha="" inspected="" 100%="" of="" its="" units="" and,="" if="" repairs="" were="" necessary="" for="" local="" code="" or="" hqs="" compliance,="" either="" completed="" the="" repairs="" during="" the="" inspection;="" issued="" work="" orders="" for="" the="" repairs;="" or="" referred="" similar="" work="" items="" to="" the="" current="" year's="" modernization="" program,="" or="" to="" next="" year's="" modernization="" program="" if="" there="" are="" less="" than="" three="" months="" remaining="" before="" the="" end="" of="" the="" pha="" fiscal="" year="" when="" the="" inspection="" was="" completed.="" (2)="" grade="" b:="" the="" pha="" inspected="" less="" than="" 100%="" but="" at="" least="" 97%="" of="" its="" units="" and,="" if="" repairs="" were="" necessary="" for="" local="" code="" or="" hqs="" compliance,="" either="" completed="" the="" repairs="" during="" the="" inspection;="" issued="" work="" orders="" for="" the="" repairs;="" or="" referred="" similar="" work="" items="" to="" the="" current="" year's="" modernization="" program,="" or="" to="" next="" year's="" modernization="" program="" if="" there="" are="" less="" than="" three="" months="" remaining="" before="" the="" end="" of="" the="" pha="" fiscal="" year="" when="" the="" inspection="" was="" completed.="" (3)="" grade="" c:="" the="" pha="" inspected="" less="" than="" 97%="" but="" at="" least="" 95%="" of="" its="" units="" and,="" if="" repairs="" were="" necessary="" for="" local="" code="" or="" hqs="" compliance,="" either="" completed="" the="" repairs="" during="" the="" inspection;="" issued="" work="" orders="" for="" the="" repairs;="" or="" referred="" similar="" work="" items="" to="" the="" current="" year's="" modernization="" program,="" or="" to="" next="" year's="" modernization="" program="" if="" there="" are="" less="" than="" three="" months="" remaining="" before="" the="" end="" of="" the="" pha="" fiscal="" year="" when="" the="" inspection="" was="" completed.="" (4)="" grade="" d:="" the="" pha="" inspected="" less="" than="" 95%="" but="" at="" least="" 93%="" of="" its="" units="" and,="" if="" repairs="" were="" necessary="" for="" local="" code="" or="" hqs="" compliance,="" either="" completed="" the="" repairs="" during="" the="" inspection;="" issued="" work="" orders="" for="" the="" repairs;="" or="" referred="" similar="" work="" items="" to="" the="" current="" year's="" modernization="" program,="" or="" to="" next="" year's="" modernization="" program="" if="" there="" are="" less="" than="" three="" months="" remaining="" before="" the="" end="" of="" the="" pha="" fiscal="" year="" when="" the="" inspection="" was="" completed.="" (5)="" grade="" e:="" the="" pha="" inspected="" less="" than="" 93%="" but="" at="" least="" 90%="" of="" its="" units="" and,="" if="" repairs="" were="" necessary="" for="" local="" code="" or="" hqs="" compliance,="" either="" completed="" the="" repairs="" during="" the="" inspection;="" issued="" work="" orders="" for="" the="" repairs;="" or="" referred="" similar="" work="" items="" to="" the="" current="" year's="" modernization="" program,="" or="" to="" next="" year's="" modernization="" program="" if="" there="" are="" less="" than="" three="" months="" remaining="" before="" the="" end="" of="" the="" pha="" fiscal="" year="" when="" the="" inspection="" was="" completed.="" (6)="" grade="" f:="" the="" pha="" has="" failed="" to="" inspect="" at="" least="" 90%="" of="" its="" units;="" or="" failed="" to="" correct="" deficiencies="" during="" the="" inspection="" or="" issue="" work="" orders="" for="" the="" repairs;="" or="" failed="" to="" refer="" similar="" work="" items="" to="" the="" current="" year's="" modernization="" program,="" or="" to="" next="" year's="" modernization="" program="" if="" there="" are="" less="" than="" three="" months="" remaining="" before="" the="" end="" of="" the="" pha="" fiscal="" year="" when="" the="" inspection="" was="" completed.="" (c)="" component="" #2,="" annual="" inspection="" of="" systems.="" this="" component="" examines="" the="" inspection="" of="" buildings="" and="" sites="" according="" to="" the="" pha's="" maintenance="" plan,="" including="" performing="" the="" required="" maintenance="" on="" structures="" and="" systems="" in="" accordance="" with="" manufacturer's="" specifications="" and="" established="" local/pha="" standards,="" or="" issuing="" work="" orders="" for="" maintenance/repairs,="" or="" including="" identified="" deficiencies="" in="" this="" year's="" modernization="" program,="" or="" in="" next="" year's="" modernization="" program="" if="" there="" are="" less="" than="" three="" months="" remaining="" before="" the="" end="" of="" the="" pha="" fiscal="" year="" when="" the="" inspection="" was="" performed.="" this="" component="" has="" a="" weight="" of="" x1.="" (1)="" grade="" a:="" the="" pha="" inspected="" all="" major="" systems="" at="" 100%="" of="" its="" buildings="" and="" sites,="" according="" to="" its="" maintenance="" plan.="" the="" inspection="" included="" performing="" the="" required="" maintenance="" on="" structures="" and="" systems="" in="" accordance="" with="" manufacturer's="" specifications="" and="" established="" local/="" pha="" standards,="" or="" issuing="" work="" orders="" for="" maintenance/repairs,="" or="" including="" identified="" deficiencies="" in="" the="" current="" year's="" modernization="" program,="" or="" in="" next="" year's="" modernization="" program="" if="" there="" are="" less="" than="" three="" months="" remaining="" before="" the="" end="" of="" the="" pha="" fiscal="" year="" when="" the="" inspection="" was="" performed.="" (2)="" grade="" b:="" the="" pha="" inspected="" all="" major="" systems="" of="" at="" least="" a="" minimum="" of="" 90%="" but="" less="" than="" 100%="" of="" its="" buildings="" and="" sites,="" according="" to="" its="" maintenance="" plan.="" the="" inspection="" included="" performing="" the="" required="" maintenance="" on="" structures="" and="" systems="" in="" accordance="" with="" manufacturer's="" specifications="" and="" established="" local/pha="" standards,="" or="" issuing="" work="" orders="" for="" maintenance/="" repairs,="" or="" including="" identified="" deficiencies="" in="" the="" current="" year's="" modernization="" program,="" or="" in="" next="" year's="" modernization="" program="" if="" there="" are="" less="" than="" three="" months="" remaining="" before="" the="" end="" of="" the="" pha="" fiscal="" year="" when="" the="" inspection="" was="" performed.="" (3)="" grade="" c:="" the="" pha="" inspected="" all="" major="" systems="" of="" at="" least="" a="" minimum="" of="" 80%="" but="" less="" than="" 90%="" of="" its="" buildings="" and="" sites,="" according="" to="" its="" maintenance="" plan.="" the="" inspection="" included="" performing="" the="" required="" maintenance="" on="" structures="" and="" systems="" in="" accordance="" with="" manufacturer's="" specifications="" and="" established="" local/pha="" standards,="" or="" issuing="" work="" orders="" for="" maintenance/="" repairs,="" or="" including="" identified="" deficiencies="" in="" the="" current="" year's="" modernization="" program,="" or="" in="" next="" year's="" modernization="" program="" if="" there="" are="" less="" than="" three="" months="" remaining="" before="" the="" end="" of="" the="" pha="" fiscal="" year="" when="" the="" inspection="" was="" performed.="" (4)="" grade="" d:="" the="" pha="" inspected="" all="" major="" systems="" of="" at="" least="" a="" minimum="" of="" 70%="" but="" less="" than="" 80%="" of="" its="" buildings="" and="" sites,="" according="" to="" its="" maintenance="" plan.="" the="" inspection="" included="" performing="" the="" required="" maintenance="" on="" structures="" and="" systems="" in="" accordance="" with="" manufacturer's="" specifications="" and="" established="" local/pha="" standards,="" or="" issuing="" work="" orders="" for="" maintenance/="" repairs,="" or="" including="" identified="" deficiencies="" in="" the="" current="" year's="" modernization="" program,="" or="" in="" next="" year's="" modernization="" program="" if="" there="" are="" less="" than="" three="" months="" remaining="" before="" the="" end="" of="" the="" pha="" fiscal="" year="" when="" the="" inspection="" was="" performed.="" (5)="" grade="" e:="" the="" pha="" inspected="" all="" major="" systems="" of="" at="" least="" a="" minimum="" of="" 60%="" but="" less="" than="" 70%="" of="" its="" buildings="" and="" sites,="" according="" to="" its="" maintenance="" plan.="" the="" inspection="" included="" performing="" the="" required="" maintenance="" on="" structures="" and="" systems="" in="" accordance="" with="" manufacturer's="" specifications="" and="" established="" local/pha="" standards,="" or="" [[page="" 68941]]="" issuing="" work="" orders="" for="" maintenance/="" repairs,="" or="" including="" identified="" deficiencies="" in="" the="" current="" year's="" modernization="" program,="" or="" in="" next="" year's="" modernization="" program="" if="" there="" are="" less="" than="" three="" months="" remaining="" before="" the="" end="" of="" the="" pha="" fiscal="" year="" when="" the="" inspection="" was="" performed.="" (6)="" grade="" f:="" the="" pha="" failed="" to="" inspect="" all="" major="" systems="" of="" at="" least="" 60%="" of="" its="" buildings="" and="" sites="" and="" perform="" the="" required="" maintenance="" on="" these="" systems="" in="" accordance="" with="" manufacturers="" specifications="" and="" established="" local/pha="" standards,="" or="" did="" not="" issue="" work="" orders="" for="" maintenance/repairs,="" or="" did="" not="" include="" identified="" deficiencies="" in="" the="" current="" year's="" modernization="" program,="" or="" in="" next="" year's="" modernization="" program="" if="" there="" are="" less="" than="" three="" months="" remaining="" before="" the="" end="" of="" the="" pha="" fiscal="" year="" when="" the="" inspection="" was="" performed.="" sec.="" 901.35="" indicator="" #6,="" financial="" management.="" this="" indicator="" examines="" the="" amount="" of="" cash="" reserves="" available="" for="" operations="" and,="" for="" phas="" scoring="" below="" a="" grade="" c="" on="" cash="" reserves,="" energy/="" utility="" consumption="" expenses.="" this="" indicator="" has="" a="" weight="" of="" x1.="" (a)="" component="" #1,="" cash="" reserves.="" this="" component="" has="" a="" weight="" of="" x2.="" (a)="" grade="" a:="" cash="" reserves="" available="" for="" operations="" are="" greater="" than="" or="" equal="" to="" 15%="" of="" total="" actual="" routine="" expenditures,="" or="" the="" pha="" has="" cash="" reserves="" of="" $3="" million="" or="" more.="" (2)="" grade="" b:="" cash="" reserves="" available="" for="" operations="" are="" greater="" than="" or="" equal="" to="" 12.5%,="" but="" less="" than="" 15%="" of="" total="" actual="" routine="" expenditures.="" (3)="" grade="" c:="" cash="" reserves="" available="" for="" operations="" are="" greater="" than="" or="" equal="" to="" 10%,="" but="" less="" than="" 12.5%="" of="" total="" actual="" routine="" expenditures.="" (4)="" grade="" d:="" cash="" reserves="" available="" for="" operations="" are="" greater="" than="" or="" equal="" to="" 7.5%,="" but="" less="" than="" 10%="" of="" total="" actual="" routine="" expenditures.="" (5)="" grade="" e:="" cash="" reserves="" are="" greater="" than="" or="" equal="" to="" 5%,="" but="" less="" than="" 7.5%="" of="" total="" actual="" routine="" expenditures.="" (6)="" grade="" f:="" cash="" reserves="" available="" for="" operations="" are="" less="" than="" 5%="" of="" total="" actual="" routine="" expenditures.="" (b)="" component="" #2,="" energy="" consumption.="" either="" option="" a="" or="" option="" b="" of="" this="" component="" is="" to="" be="" completed="" only="" by="" phas="" that="" score="" below="" a="" grade="" c="" on="" component="" #1.="" regardless="" of="" a="" pha's="" score="" on="" component="" #1,="" it="" will="" not="" be="" scored="" on="" component="" #2="" if="" all="" its="" units="" have="" tenant="" paid="" utilities.="" annual="" energy/utility="" consumption="" expenses="" includes="" water="" and="" sewage="" usage.="" this="" component="" has="" a="" weight="" of="" x1.="" (1)="" option="" a,="" annual="" energy/utility="" consumption="" expenses.="" (i)="" grade="" a:="" annual="" energy/utility="" consumption="" expenses,="" as="" compared="" to="" the="" average="" of="" the="" three="" years'="" rolling="" base="" consumption="" expenses,="" have="" not="" increased.="" (ii)="" grade="" b:="" annual="" energy/utility="" consumption="" expenses,="" as="" compared="" to="" the="" average="" of="" the="" three="" years'="" rolling="" base="" consumption="" expenses,="" have="" not="" increased="" by="" more="" than="" 3%.="" (iii)="" grade="" c:="" annual="" energy/utility="" consumption="" expenses,="" as="" compared="" to="" the="" average="" of="" the="" three="" years'="" rolling="" base="" consumption="" expenses,="" have="" increased="" by="" more="" than="" 3%="" and="" less="" than="" or="" equal="" to="" 5%.="" (iv)="" grade="" d:="" annual="" energy/utility="" consumption="" expenses,="" as="" compared="" to="" the="" average="" of="" the="" three="" years'="" rolling="" base="" consumption="" expenses,="" have="" increased="" by="" more="" than="" 5%="" and="" less="" than="" or="" equal="" to="" 7%.="" (v)="" grade="" e:="" annual="" energy/utility="" consumption="" expenses,="" as="" compared="" to="" the="" average="" of="" the="" three="" years'="" rolling="" base="" consumption="" expenses,="" have="" increased="" by="" more="" than="" 7%="" and="" less="" than="" or="" equal="" to="" 9%.="" (vi)="" grade="" f:="" annual="" energy/utility="" consumption="" expenses,="" as="" compared="" to="" the="" average="" of="" the="" three="" years'="" rolling="" base="" consumption="" expenses,="" have="" increased="" by="" more="" than="" 9%.="" (2)="" option="" b,="" energy="" audit.="" (i)="" grade="" a:="" the="" pha="" has="" completed="" or="" updated="" its="" energy="" audit="" within="" the="" past="" five="" years="" and="" has="" implemented="" all="" of="" the="" recommendations="" that="" were="" cost="" effective.="" (ii)="" grade="" c:="" the="" pha="" has="" completed="" or="" updated="" its="" energy="" audit="" within="" the="" past="" five="" years,="" has="" developed="" an="" implementation="" plan="" and="" is="" on="" schedule="" with="" the="" implementation="" plan,="" based="" on="" available="" funds.="" the="" implementation="" plan="" identifies="" at="" a="" minimum,="" the="" items="" from="" the="" audit,="" the="" estimated="" cost,="" the="" planned="" funding="" source,="" and="" the="" anticipated="" date="" of="" completion="" for="" each="" item.="" (iii)="" grade="" f:="" the="" pha="" has="" not="" completed="" or="" updated="" its="" energy="" audit="" within="" the="" past="" five="" years,="" or="" has="" not="" developed="" an="" implementation="" plan="" or="" is="" not="" on="" schedule="" with="" its="" implementation="" plan,="" or="" has="" not="" implemented="" all="" of="" the="" recommendations="" that="" were="" cost="" effective,="" based="" on="" available="" funds.="" sec.="" 901.40="" indicator="" #7,="" resident="" services="" and="" community="" building.="" this="" indicator="" examines="" the="" pha's="" efforts="" to="" deliver="" quality="" customer="" services="" and="" to="" encourage="" partnerships="" with="" residents,="" resident="" organizations,="" and="" the="" local="" community,="" including="" non-pha="" service="" providers,="" that="" help="" improve="" management="" operations="" at="" the="" pha;="" and="" to="" encourage="" programs="" that="" promote="" individual="" responsibility,="" self="" improvement="" and="" community="" involvement="" among="" residents="" and="" assist="" them="" to="" achieve="" economic="" uplift="" and="" develop="" self-sufficiency.="" also,="" if="" applicable,="" this="" indicator="" examines="" pha="" performance="" under="" any="" special="" hud="" grant(s)="" administered="" by="" the="" pha.="" phas="" can="" get="" credit="" for="" performance="" under="" non-hud="" funded="" programs="" if="" they="" choose="" to="" be="" assessed="" for="" these="" programs.="" phas="" with="" fewer="" than="" 250="" units="" or="" with="" 100%="" elderly="" developments="" will="" not="" be="" assessed="" under="" this="" indicator="" unless="" they="" request="" to="" be="" assessed="" at="" the="" time="" of="" phmap="" certification="" submission.="" this="" indicator="" has="" a="" weight="" of="" x1.="" (a)="" component="" #1,="" economic="" uplift="" and="" self-improvement.="" phas="" will="" be="" assessed="" for="" all="" the="" programs="" that="" the="" pha="" has="" hud="" funding="" to="" implement.="" also,="" phas="" can="" get="" credit="" for="" implementation="" of="" programs="" through="" partnerships="" with="" non-pha="" providers,="" even="" if="" the="" programs="" are="" not="" funded="" by="" hud="" or="" the="" pha,="" if="" they="" choose="" to="" be="" assessed="" for="" them.="" phas="" must="" select="" either="" to="" be="" assessed="" for="" all="" or="" none="" of="" the="" non-hud="" funded="" programs.="" this="" component="" has="" a="" weight="" of="" x1.="" (1)="" grade="" a:="" the="" pha="" board="" of="" commissioners,="" by="" resolution,="" has="" adopted="" one="" or="" more="" economic="" uplift="" and="" self-improvement="" programs,="" examples="" include="" but="" are="" not="" limited="" to,="" the="" section="" 3="" program,="" homeownership,="" pha="" support="" for="" resident="" education,="" training,="" child-="" care,="" job-placement="" programs,="" head="" start,="" etc.,="" and="" the="" pha="" can="" document="" that="" it="" has="" implemented="" these="" programs="" in="" developments="" covering="" at="" least="" 90%="" of="" its="" family="" occupied="" units,="" either="" directly="" or="" through="" partnerships="" with="" non-pha="" providers,="" and="" the="" pha="" monitors="" performance="" under="" the="" programs="" and="" issues="" reports="" concerning="" progress,="" including="" residents="" receiving="" services="" and="" residents="" employed,="" under="" these="" programs.="" (2)="" grade="" c:="" the="" pha="" board="" of="" commissioners,="" by="" resolution,="" has="" adopted="" one="" or="" more="" economic="" uplift="" and="" self-improvement="" programs,="" including="" but="" not="" limited="" to,="" the="" programs="" described="" in="" grade="" a,="" above,="" and="" the="" pha="" can="" document="" that="" it="" has="" implemented="" these="" programs="" in="" developments="" covering="" at="" least="" 60%="" of="" its="" family="" occupied="" units,="" either="" directly="" or="" through="" partnerships="" with="" non-pha="" providers,="" and="" the="" pha="" staff="" monitors="" performance="" under="" the="" programs="" and="" issues="" reports="" to="" the="" board="" concerning="" progress,="" including="" residents="" receiving="" [[page="" 68942]]="" services="" and="" residents="" employed,="" under="" these="" programs.="" (3)="" grade="" f:="" the="" pha="" board="" of="" commissioners,="" by="" resolution,="" has="" not="" adopted="" one="" or="" more="" economic="" uplift="" and="" self-improvement="" programs,="" including="" but="" not="" limited="" to,="" the="" programs="" described="" in="" grade="" a,="" above,="" or="" the="" pha="" has="" not="" implemented="" these="" programs="" in="" developments="" covering="" at="" least="" 60%="" of="" its="" family="" occupied="" units,="" either="" directly="" or="" through="" partnerships="" with="" non-pha="" providers.="" (b)="" component="">#2, resident organization. This component has a
weight of x1.
(1) Grade A: The PHA can document formal recognition of, a system
of communication and collaboration with, and support for resident
councils where these exist, and where no resident council exists, the
PHA can document its encouragement for the formation of such councils.
(2) Grade F: The PHA cannot document formal recognition of, or a
system of communication and collaboration with, or document its support
for resident councils where these exist, or where no resident council
exists, the PHA cannot document its encouragement for the formation of
such councils.
(c) Component #3, resident involvement. Implicit in this component
is the need to ensure a PHA's delivery of quality customer services to
residents. This component has a weight of x1.
(1) Grade A: The PHA Board of Commissioners, by resolution,
provides for resident representation on the Board and committees, and
the PHA has implemented measures that ensure the opportunity for
regular resident input into plans and the evaluation for ongoing
quality of life and housing management conditions, including but not
limited to, modernization and development programs, screening and other
occupancy matters, relocation, the operating budget, resident programs,
security and maintenance programs.
(2) Grade C: The PHA Board of Commissioners, by resolution,
provides for resident representation on the Board and committees, and
the PHA has implemented measures that ensure the opportunity for
regular resident input into plans and the evaluation for ongoing
quality of life and housing management conditions in the modernization
and development programs and at least three of the remaining six areas
described in grade A, above.
(3) Grade F: The PHA Board of Commissioners, by resolution, did not
provide for resident representation on the Board and committees, or the
PHA has not implemented measures that ensure the opportunity for
regular resident input into plans and the evaluation for ongoing
quality of life and housing management conditions in the modernization
and development programs and at least three of the remaining six areas
described in grade A, above.
(d) Component #4, resident programs management. This component
examines a PHA's management of HUD funded resident programs. However,
PHAs can also get credit for performance under non-HUD funded programs
if they choose to be assessed for them. PHAs must select either to be
assessed for all or none of the non-HUD funded programs. This component
has a weight of x1.
(1) Grade A: If the PHA has any HUD funded special programs that
benefit the residents, including but not limited to, the Family
Investment Center (FIC), Youth Sports (YS), Food Banks, Health Clinics,
Youth Apprenticeship Program (YAP), Family Self-Sufficiency (FSS), or a
Resident Management (RM) or Tenant Opportunity Programs (TOP) where the
PHA is the contract administrator, the PHA can document that it is
meeting at least 90% of its goals under the implementation plan for any
and all of these programs.
(2) Grade C: If the PHA has any HUD-funded special programs that
benefit the residents, including but not limited to, the programs
described in grade A, above, the PHA can document that it is meeting at
least 60% of its goals under the implementation plan for any and all of
these programs.
(3) Grade F: If the PHA has any HUD-funded special programs that
benefit the residents, including but not limited to, the programs
described in grade A, above, the PHA cannot document that it is meeting
at least 60% of its goals under the implementation plan for all of
these programs.
Sec. 901.45 Indicator #8, security.
This indicator evaluates the PHAs performance in tracking crime
related problems in their developments, reporting incidence of crime to
local law enforcement agencies, the adoption and implementation of
tough applicant screening and resident eviction policies and
procedures, and, as applicable, PHA performance under any HUD drug
prevention or crime reduction grant(s). PHAs can get credit for
performance under non-HUD funded programs if they choose to be assessed
for these programs. PHAs with fewer than 250 units will not be assessed
under this indicator unless they request to be assessed at the time of
PHMAP certification submission. This indicator has a weight of x1.
(a) Component #1, Tracking and Reporting Crime Related Problems.
This component has a weight of x1.
(1) Grade A: The PHA Board, by resolution, has adopted policies and
the PHA has implemented procedures and can document that it (1) tracks
crime and crime-related problems in at least 90% of its developments,
and (2) has a cooperative system for tracking and reporting incidents
of crime to local police authorities to improve law enforcement and
crime prevention.
(2) Grade C: The PHA Board, by resolution, has adopted policies and
the PHA has implemented procedures and can document that it (1) tracks
crime and crime-related problems in at least 60% of its developments,
and (2) reports incidents of crime to local police authorities to
improve law enforcement and crime prevention.
(3) Grade F: The PHA Board, by resolution, has not adopted policies
and the PHA has not implemented procedures or cannot document that it
(1) tracks crime and crime-related problems in at least 60% of its
developments, or (2) reports incidents of crime to local police
authorities to improve law enforcement and crime prevention.
(b) Component #2, Screening of Applicants. This component has a
weight of x1.
(1) Grade A: The PHA Board, by resolution, has adopted policies and
the PHA has implemented procedures and can document that it
successfully screens out and denies admission to a public housing
applicant who:
(i) Has a recent history of criminal activity involving crimes to
persons or property and/or other criminal acts that would adversely
affect the health, safety or welfare of other residents or PHA
personnel;
(ii) Was evicted, because of drug-related criminal activity, from
housing assisted under the U.S. Housing Act of 1937, for a minimum of a
three year period beginning on the date of such eviction, unless the
applicant has successfully completed, since the eviction, a
rehabilitation program approved by the public housing agency;
(iii) The PHA has reasonable cause to believe is illegally using a
controlled substance; or
(iv) The PHA has reasonable cause to believe abuses alcohol in a
way that causes behavior that may interfere with the health, safety, or
right to peaceful enjoyment of the premises by other residents or PHA
personnel.
[[Page 68943]]
(2) Grade C: The PHA Board, by resolution, has adopted policies and
the PHA has implemented procedures, but cannot document results in
successfully screening out and denying admission to a public housing
applicant who meets the criteria as described in grade A, above.
(3) Grade F: The PHA has not adopted policies or has not
implemented procedures that result in screening out and denying
admission to a public housing applicant who meets the criteria as
described in grade A, above, or the screening procedures do not result
in the denial of admission to a public housing applicant who meets the
criteria as described in grade A, above.
(c) Component #3, Lease Enforcement. This component has a weight of
x1.
(1) Grade A: The PHA Board, by resolution, has adopted policies and
the PHA has implemented procedures and can document that it
appropriately evicts any public housing resident who:
(i) The PHA has reasonable cause to believe engages in any criminal
activity that threatens the health, safety, or right to peaceful
enjoyment of the premises by other residents or PHA personnel;
(ii) The PHA has reasonable cause to believe engages in any drug-
related criminal activity (as defined at section 6(l) of the 1937 Act
(42 U.S.C. 1437d(l)) on or off the PHA's property; or
(iii) The PHA has reasonable cause to believe abuses alcohol in
such a way that causes behavior that may interfere with the health,
safety, or right to peaceful enjoyment of the premises by other
residents or PHA personnel.
(2) Grade C: The PHA Board, by resolution, has adopted policies and
the PHA has implemented procedures, but cannot document results in
appropriately evicting any public housing resident who meets the
criteria as described in grade A, above.
(3) Grade F: The PHA has not adopted policies or has not
implemented procedures that document results in the eviction of any
public housing resident who meets the criteria as described in grade A,
above, or the eviction procedures do not result in the eviction of
public housing residents who meet the criteria as described in grade A,
above.
(d) Component #4, Grant Program Goals. This component examines a
PHA's management of HUD-funded drug prevention or crime reduction
programs. However, PHAs can also get credit for performance under non-
HUD funded programs if they choose to be assessed for them. PHAs must
select either to be assessed for all or none of the non-HUD funded
programs. This component has a weight of x1.
(1) Grade A: If the PHA has any special drug prevention program or
crime reduction program funded by any HUD funds, the PHA can document
that the goals are related to drug and crime rates, and it is meeting
at least 90% of its goals under the implementation plan for any and all
of these programs.
(2) Grade C: If the PHA has any special drug prevention program or
crime reduction program funded by any HUD funds, the PHA can document
that the goals are related to drug and crime rates, and it is meeting
at least 60% of its goals under the implementation plan for any and all
of these programs.
(3) Grade F: If the PHA has any special drug prevention program or
crime reduction program funded by any HUD funds, the PHA does not have
a system for documenting or cannot document that the goals are related
to drug and crime rates, or cannot document that it is meeting 60% or
more of its goals under the implementation plan for any and all of
these programs.
Sec. 901.100 Data collection.
(a) Information on some of the indicators will be derived by the
State/Area Office from existing reporting and data forms.
(b) A PHA shall provide certification as to data on indicators not
collected according to paragraph (a) of this section, by submitting a
certified questionnaire within 60 calendar days after the end of the
fiscal year covered by the certification:
(1) The certification shall be approved by PHA Board resolution,
and signed and attested to by the Executive Director.
(2) PHAs shall maintain documentation for three years verifying all
certified indicators for HUD on-site review.
(3) A PHA may include along with its certification submission,
rather than through an exclusion or modification request, any
information bearing on the accuracy or completeness of the data used by
HUD (corrected data, late reports, previously omitted required reports,
etc.) in grading an indicator. HUD will consider this assertion in
grading the affected indicator.
(4) If a PHA does not submit its certification, or submits its
certification late, appropriate sanctions may be imposed, including a
presumptive rating of failure in all of the PHMAP indicators, which may
result in troubled and mod-troubled designations.
(5) A PHA that cannot provide justifying documentation to HUD
during the conduct of a confirmatory review, or other verification
review(s), for any indicator(s) or component(s) certified to, shall
receive a failing grade in that indicator(s) or component(s), and its
overall PHMAP score shall be lowered.
(6) If the data for any indicator(s) or component(s) that a PHA
certified to cannot be verified by HUD during the conduct of a
confirmatory review, or any other verification review(s), the State/
Area Office shall change a PHA's grade for any indicator(s) or
component(s), and its overall PHMAP score, as appropriate, to reflect
the verified data obtained during the conduct of such review.
(7) A PHA that cannot provide justifying documentation to the
independent auditor for the indicator(s) or component(s) that the PHA
certified to, as reflected in the audit report, shall receive a grade
of F for that indicator(s) or component(s), and its overall PHMAP score
shall be lowered.
(8) A PHA's PHMAP score for individual indicators or components, or
its overall PHMAP score, may be changed by the State/Area Office
pursuant to the data included in the independent audit report, as
applicable.
(9) A PHA's certification and supporting documentation will be
post-reviewed by HUD during the next on-site review as determined by
risk management, but is subject to verification at any time.
Appropriate sanctions for intentional false certification will be
imposed, including suspension or debarment of the signatories, the loss
of high performer designation, a lower grade for individual indicators
and a lower PHMAP total weighted score.
(c) For those developments of a PHA where management functions have
been assumed by an RMC, the PHA's certification shall identify the
development and the management functions assumed by the RMC. The PHA
shall obtain a certified questionnaire from the RMC as to the
management functions undertaken by the RMC. The PHA shall submit the
RMC's certified questionnaire along with its own. The RMC's
certification shall be approved by its Executive Director or Chief
Executive Officer of whatever title.
Sec. 901.105 Computing assessment score.
(a) Grades within indicators and components have the following
point values:
(1) Grade A = 10.0 points;
(2) Grade B = 8.5 points;
(3) Grade C = 7.0 points;
(4) Grade D = 5.0 points;
(5) Grade E = 3.0 point; and
(6) Grade F = 0.0 points.
(b) If indicators or components are designated as having additional
weight
[[Page 68944]]
(e.g., x1.5 or x2), the points in each grade will be multiplied times
the additional weight.
(c) Indicators will be graded individually. Components within an
indicator will be graded individually, and then will be used to
determine a single grade for the indicator, by dividing the total
number of component points by the total number of component weights and
rounding off to two decimal places. The total number of component
weights for this purpose includes a one for components that are
unweighted (i.e., they are weighted x1, rather than x1.5 or x2).
(d) Adjustment for physical condition and neighborhood environment.
The overall PHMAP score will be adjusted by adding additional points
that reflect the adjustment to be given to the differences in the
difficulty of managing developments that result from physical condition
and neighborhood environment:
(1) Adjustments shall apply to the following three indicators only:
(i) Indicator #1, vacancy rate and unit turnaround;
(ii) Indicator #4, work orders; and
(iii) Indicator #5, annual inspection and condition of units and
systems.
(2) Definitions of physical condition and neighborhood environment
are:
(i) Physical condition: refers to units located in developments
over ten years old that require major capital investment in order to
meet local codes or minimum HQS standards, whichever is applicable.
This excludes developments that have been comprehensively modernized.
(ii) Neighborhood environment: refers to units located within
developments where the immediate surrounding neighborhood (that is a
majority of the census tracts or census block groups on all sides of
the development) has at least 51% of families with incomes below the
poverty rate as documented by the latest census data.
(3) Any PHA with 5% or more of its units subject to either or both
of the above conditions shall, if they so choose, be issued an adjusted
PHMAP score in addition to the regular score based solely upon the
certification of the PHA. The adjusted score shall be calculated as
follows:
------------------------------------------------------------------------
Percent of units subject to physical condition and/or Extra
neighborhood environment points
------------------------------------------------------------------------
At least 5% but less than 10%.................................. .5
At least 10% but less than 20%................................. .6
At least 20% but less than 30%................................. .7
At least 30% but less than 40%................................. .8
At least 40% but less than 50%................................. .9
At least 50%................................................... 1.0
------------------------------------------------------------------------
(i) These extra points will be added to the score (grade) of the
indicator(s) to which these conditions may apply. A PHA is required to
certify on form HUD-50072, PHMAP Certification, the extent to which the
conditions apply, and to which of the indicators the extra scoring
points should be added.
(ii) Units in developments that have received substantial
rehabilitation within the past ten years are not eligible to be
included in the calculation of total PHA units due to physical
condition only.
(iii) A PHA that receives a grade of A under indicators #4 and/or
#5 may not claim the additional adjustment for indicator #1 based on
physical condition of its developments, but may claim additional
adjustment based on neighborhood environment.
(iv) A PHA that receives the maximum potential weighted points on
indicators #1, #4 and/or #5 may not claim any additional adjustment for
physical condition and/or neighborhood environment for the respective
indicator(s).
(v) A PHA's score for indicators #1, #4 and/or #5, after any
adjustment(s) for physical condition and/or neighborhood environment,
may not exceed the maximum potential weighted points assigned to the
respective indicator(s).
(4) If only certain units or developments received substantial
rehabilitation, the additional adjustment shall be prorated to exclude
the units or developments with substantial rehabilitation.
(5) The Date of Full Availability (DOFA) shall apply to scattered
site units, where the age of units and buildings vary, to determine
whether the units have received substantial rehabilitation within the
past ten years and are eligible for a adjusted score for the physical
condition factor.
(6) PHAs shall maintain supporting documentation to show how they
arrived at the number and percentage of units out of their total
inventory that are subject to adjustment.
(i) If the basis was neighborhood environment, the PHA shall have
on file the appropriate maps showing the census tracts or census block
groups surrounding the development(s) in question with supporting
census data showing the level of poverty. Units that fall into this
category but which have already been removed from consideration for
other reasons (permitted exemptions and modifications and/or
exclusions) shall not be counted in this calculation.
(ii) For the physical condition factor, a PHA would have to
maintain documentation showing the age and condition of the units and
the record of capital improvements, indicating that these particular
units have not received modernization funds.
(iii) PHAs shall also document that in all cases, units that were
exempted for other reasons were not included in the calculation.
Sec. 901.110 PHA request for exclusion or modification of an indicator
or component.
(a) A PHA shall have the right to request the exclusion or
modification of any indicator or component in its management
assessment, thereby excluding or modifying the impact of those
indicator's or component's grades in its PHMAP total weighted score.
(b) Exclusion and modification requests shall be submitted by a PHA
at the time of its PHMAP certification submission to the State/Area
Office along with supporting documentary justification, rather than
during the appeal process.
(c) Requests for exclusions and modifications that do not include
supporting documentary justification will not be considered.
(d) Indicator #2, modernization, shall be automatically excluded by
the State/Area Office if a PHA does not have an open modernization
program.
(e) Indicator #7, resident services and community building, shall
be automatically excluded by the State/Area Office for PHAs with fewer
than 250 units, or with 100% elderly developments, unless they request
to be assessed at the time of the PHMAP certification submission.
(f) Indicator #8, security, shall be automatically excluded by the
State/Area Office for PHAs with fewer than 250 units unless they
request to be assessed at the time of the PHMAP certification
submission.
Sec. 901.115 PHA score and status.
(a) PHAs that achieve a total weighted score of 90% or greater
shall be designated high performers. A PHA shall not be designated as a
high performer if it scores below a grade of C for any indicator. High
performers will be afforded incentives that include relief from
reporting and other requirements, as described in Sec. 901.130.
(b) PHAs that achieve a total weighted score of 90% or greater on
its overall PHMAP score and on indicator #2, modernization, shall be
designated mod-high performers.
[[Page 68945]]
(c) PHAs that achieve a total weighted score of less than 90% but
not less than 60% shall be designated standard. Standard performers
will be afforded incentives that include relief from reporting and
other requirements, as described in Sec. 901.130.
(d) PHAs that achieve a total weighted score of less than 60% shall
be designated as troubled.
(e) PHAs that achieve 60% of the maximum calculation for indicator
#2, modernization, shall be designated as mod-troubled.
(f) Each PHA shall post a notice of its final PHMAP score and
status in appropriate conspicuous and accessible locations in its
offices within two weeks of receipt of its final score and status. In
addition, HUD will publish every PHA's score and status in the Federal
Register.
(g) A PHA that cannot provide justifying documentation to HUD
during the conduct of a confirmatory review, or other verification
review(s), for any indicator(s) or component(s) certified to, shall
receive a failing grade in that indicator(s) or component(s), and its
overall PHMAP score shall be lowered.
(h) If the data for any indicator(s) or component(s) that a PHA
certified to cannot be verified by HUD during the conduct of a
confirmatory review, or any other verification review(s), the State/
Area Office shall change a PHA's grade for any indicator(s) or
component(s), and its overall PHMAP score, as appropriate, to reflect
the verified data obtained during the conduct of such review.
(i) A PHA that cannot provide justifying documentation to the
independent auditor for the indicator(s) or component(s) that the PHA
certified to, as reflected in the audit report, will receive a grade of
F for that indicator(s), and its overall PHMAP score will be lowered.
(j) A PHA's PHMAP score for individual an indicator(s),
component(s) or its overall PHMAP score may be changed by the State/
Area Office pursuant to the data included in the independent audit
report, as applicable.
(k) In exceptional circumstances, even though a PHA has satisfied
all of the indicators for high or standard performer designation, the
State/Area Office may conduct any review as necessary, including a
confirmatory review, and deny or rescind incentives or high performer
status, as described in paragraphs (a) and (b) of this section in the
case of a PHA that:
(1) Is operating under a special agreement with HUD;
(2) Is involved in litigation that bears directly upon the
management of a PHA;
(3) Is operating under a court order;
(4) Demonstrates substantial evidence of fraud or misconduct,
including evidence that the PHA's certification of indicators is not
supported by the facts, resulting from such sources as a confirmatory
review, routine reports and reviews, an Office of Inspector General
investigation/audit, an independent auditor's audit or an investigation
by any appropriate legal authority; or
(5) Demonstrates substantial noncompliance in one or more areas
(including areas not assessed by the PHMAP). Areas of substantial
noncompliance include, but are not limited to, noncompliance with
statutes (e.g., Fair Housing and Equal Opportunity statutes);
regulations (e.g., 24 CFR Sec. 85); or the Annual Contributions
Contract (ACC) (e.g., the ACC, form HUD-53012A, Section 4, Mission of
the PHA). Substantial noncompliance would cast doubt on the PHA's
capacity to preserve and protect its public housing developments and
operate them consistent with Federal law and regulations.
(l) When a State/Area Office Public Housing Director acts for any
of the reasons stated in paragraph (k) of this section, the State/Area
Office will send written notification to the PHA with a specific
explanation of the reasons. An information copy will be forwarded to
the Assistant Secretary for Public and Indian Housing.
(m) A PHA may appeal denial of high performer status in accordance
with Sec. 901.125.
Sec. 901.120 State/Area Office functions.
(a) The State/Area Office will assess each PHA within its
jurisdiction on an annual basis:
(1) The State/Area Office will make determinations for high-
performing, standard, troubled PHAs and mod-troubled PHAs in accordance
with a PHA's PHMAP weighted score.
(2) The State/Area Office will also make determinations for
exclusion and modification requests.
(b) Each State/Area Office will notify each PHA of the PHA's grade
and the grade of the RMC (if any) assuming management functions at any
of the PHA's developments, in each indicator; the PHA's management
assessment total weighted score and status, and if applicable; its
adjustment for physical condition and neighborhood environment; any
determinations concerning exclusion and modification requests; and any
deadline date by which appeals must be received. PHA notification
should include offers of pertinent technical assistance in problem
areas, suggestions for means of improving problem areas, and areas of
relief and incentives as a result of high performer status. The PHA
must notify the RMC (if any) in writing, immediately upon receipt of
the State/Area Office notification, of the RMC's grades.
(c) An on-site confirmatory review may be conducted of a PHA by
HUD. The purpose of the on-site confirmatory review is to verify those
indicators for which a PHA provides certification, as well as the
accuracy of the information received in the State/Area Office
pertaining to the remaining indicators.
(1) Whenever practicable, a confirmatory review should be conducted
by HUD prior to the issuance of a PHA's initial notification letter.
The results of the confirmatory review shall be included in the PHA's
initial notification letter.
(2) If, in an exceptional circumstance, a confirmatory review is
conducted after the State/Area Office issues the initial notification
letter, the State/Area Office shall explain the results of the
confirmatory review in writing, correct the PHA's total weighted score,
as appropriate, and reissue the initial notification letter to the PHA.
(3) The State/Area Office shall conduct a confirmatory review of a
PHA with 100 or more units under management that scores less than 60%
for its total weighted score, or less than 60% on indicator #2,
modernization, before initially designating the PHA as troubled or mod-
troubled. The results of the confirmatory review shall be included in
the PHA's initial notification letter.
(4) The State/Area Office shall conduct a confirmatory review on a
yearly basis of all troubled and mod-troubled PHAs.
(5) The State/Area Office shall conduct a confirmatory review of a
PHA with 100 or more units under management prior to the removal of
troubled or mod-troubled designation.
(6) Independent confirmatory reviews (team members from other
State/ Area Offices) shall be conducted of troubled PHAs with 1250 or
more units under management prior to the removal of troubled
designation.
(d) A PHA that cannot provide justifying documentation to HUD
during the conduct of a confirmatory review, or other verification
review(s), for any indicator(s) or component(s) certified to, shall
receive a failing grade in that indicator(s) or component(s), and its
overall PHMAP score shall be lowered by the State/Area Office. The
State/Area Office shall explain to the PHA the reason(s) for the
change(s) in writing,
[[Page 68946]]
correct the PHA's grade for an individual component(s) and/or
indicator(s) and total weighted score, as appropriate, and reissue the
initial notification letter to the PHA.
(e) If the data for any indicator(s) or component(s) that a PHA
certified to cannot be verified by HUD during the conduct of a
confirmatory review, or any other verification review(s), the State/
Area Office shall change a PHA's grade for any indicator(s) or
component(s), and its overall PHMAP score, as appropriate, to reflect
the verified data obtained during the conduct of such review. The
State/Area Office shall explain to the PHA the reason(s) for the
change(s) in writing, correct the PHA's grade for an individual
component(s) and/or indicator(s) and total weighted score, as
appropriate, and reissue the initial notification letter to the PHA.
(f) A PHA that cannot provide justifying documentation to the
independent auditor for the indicator(s) or component(s) that the PHA
certified to, as reflected in the audit report, will receive a grade of
F for that indicator(s), and its overall PHMAP score will be lowered by
the State/Area Office. The State/Area Office shall explain to the PHA
the reason(s) for the change(s) in writing, correct the PHA's grade for
an individual component(s) and/or indicator(s) and total weighted
score, as appropriate, and reissue the initial notification letter to
the PHA.
(g) A PHA's PHMAP score for an individual indicator(s),
component(s) or its overall PHMAP score may be changed by the Area/
State Office pursuant to the data included in the independent audit
report, as applicable. The State/Area Office shall explain to the PHA
the reason(s) for the change(s) in writing, correct the PHA's grade for
an individual component(s) and/or indicator(s) and total weighted
score, as appropriate, and reissue the initial notification letter to
the PHA.
(h) Determinations on appeals and on petitions to remove troubled
or mod-troubled status will be made by the State/Area Office.
(i) Determinations of intentional false certifications will be made
by the State/Area Office. State/Area Offices shall consult with the
local Office of Inspector General for guidance in cases of
determinations of intentional false certification.
(j) In exceptional circumstances, the State/Area Office may deny or
rescind a PHA's status as a standard or high performer, in accordance
with Sec. 901.115(i), so that it will not be entitled to any of the
areas of relief and incentives.
(k) The State/Area Office will maintain PHMAP files for public
inspection in accordance with Sec. 901.155.
Sec. 901.125 PHA right of appeal.
(a) A PHA has the right to appeal its PHMAP score to the State/Area
Office, including a troubled designation or a mod-troubled designation.
A PHA may appeal its management assessment rating on the basis of data
errors (any dispute over the accuracy, calculation, or interpretation
of data employed in the grading process that would affect a PHA's PHMAP
score), the denial of exclusion or modification requests when their
denial affects a PHA's total weighted score, the denial of an
adjustment based on the physical condition and neighborhood environment
of a PHA's developments, or a determination of intentional false
certification:
(1) A PHA may appeal its management assessment rating to the State/
Area Office only for the reasons stated in paragraph (a) of this
section:
(i) A PHA may not appeal its PHMAP score to the State/Area Office
unless it has submitted its certification to the State/Area Office.
(ii) A PHA may not appeal its PHMAP score to the State/Area Office
if the reason the PHA received a deficient grade in any indicator or
component was due to the fact the PHA did not submit a required report
in a timely manner or without an approved time extension.
(iii) A PHA may not appeal its PHMAP score to the State/Area Office
if the reason the PHA received a failing grade in any indicator or
component was due to the fact that the PHA did not provide justifying
documentation to the independent auditor for any indicator(s) or
component(s) the PHA certified to.
(2) The appeal shall be submitted to the State/Area Office and
shall include supporting documentary justification of the reasons for
the appeal.
(3) The State/Area Office will make determinations on initial
appeals and will transmit the determination of the appeal to the PHA in
a notification letter that will also include the date and place for
submitting any further appeal.
(4) Appeals submitted to the State/Area Office without appropriate
documentation will not be considered and will be returned to the PHA.
(b) Appeals of rescission of high performer designation shall be
made directly to the Assistant Secretary for Public and Indian Housing.
(c) A PHA may appeal the denial of an initial appeal by the State/
Area Office to the Assistant Secretary for Public and Indian Housing
for the following reasons:
(1) Initial appeals denying high performer designation;
(2) Initial appeals denying the removal of troubled designation;
(3) Initial appeals denying the removal of mod-troubled
designation;
(4) The denial of an appeal of a determination of intentional false
certification;
(5) Data errors;
(6) The denial of exclusion or modification requests when their
denial affects a PHA's total weighted score;
(7) The denial of an adjustment based on the physical condition and
neighborhood environment of a PHA's developments;
(8) The refusal of a petition in accordance with Sec. 901.140 to
remove troubled or mod-troubled designations.
(d) A PHA may appeal its management assessment rating to the
Assistant Secretary for Public and Indian Housing only for the reasons
stated in paragraph (c) of this section.
(e) A PHA may not appeal its PHMAP score to the Assistant Secretary
unless it has submitted its certification to the State/Area Office.
(f) Appeals submitted to the Assistant Secretary for Public and
Indian Housing without appropriate documentation will not be considered
and will be returned to the PHA.
(g) The date and place by which any appeal must be submitted will
be specified in the letter from the State/Area Office notifying the PHA
of any determination or action. For example, the State/Area Office
initial notification letter or denial of initial appeal letter will
specify the date and place by which appeals must be received. The date
specified will be the 15th calendar day after the letter is mailed, not
counting the day the letter is mailed. If the 15th day falls on a
weekend or holiday, the date specified will be the next day that is not
on a weekend or a holiday. Any appeal not received by the specified
time and place will not be considered.
Sec. 901.130 Incentives.
(a) A PHA that is designated high performer or standard performer
will be relieved of specific HUD requirements, effective upon
notification of high or standard performer designation.
(b) A PHA shall not be designated a mod-high performer and be
entitled to the applicable incentives unless it has been designated an
overall high performer.
(c) High-performing PHAs, and RMCs that receive a grade of A on
each of the indicators for which they are assessed, will receive a
Certificate of
[[Page 68947]]
Commendation from the Department as well as special public recognition.
(d) Representatives of high-performing PHAs may be requested to
serve on Departmental working groups that will advise the Department in
such areas as troubled PHAs and performance standards for all PHAs.
(e) State/Area Offices may award incentives to PHAs on an
individual basis for a specific reason(s), such as a PHA making the
right decision that impacts long-term overall management or the quality
of a PHA's housing stock, with prior concurrence from the Assistant
Secretary.
(f) Relief from any standard procedural requirements does not mean
that a PHA is relieved from compliance with the provisions of Federal
law and regulations or other handbook requirements. For example,
although a high or standard performer may be relieved of requirements
for prior HUD approval for certain types of contracts for services, it
must still comply with all other Federal and State requirements that
remain in effect, such as those for competitive bidding or competitive
negotiation (see 24 CFR 85.36):
(1) PHAs will still be subject to regular independent auditor (IA)
audits.
(2) Office of Inspector General (OIG) audits or investigations will
continue to be conducted as circumstances may warrant.
(g) In exceptional circumstances, the State/Area Office will have
discretion to subject a PHA to any requirement that would otherwise be
omitted under the specified relief, in accordance with Sec. 901.115(i).
Sec. 901.135 Memorandum of Agreement.
(a) After consulting the independent assessment team and reviewing
the report identified in section 6(j)(2)(b) of the 1937 Act, a
Memorandum of Agreement (MOA), a binding contractual agreement between
HUD and a PHA, shall be required for each PHA designated as troubled
and/or mod-troubled. The scope of the MOA may vary depending upon the
extent of the problems present in the PHA, but shall include:
(1) Baseline data, which should be raw data but may be the PHA's
score in each of the indicators identified as a problem, or other
relevant areas identified as problematic;
(2) Annual and quarterly performance targets, which may be the
attainment of a higher grade within an indicator that is a problem, or
the description of a goal to be achieved, for example, the reduction of
rents uncollected to 6% or less by the end of the MOA annual period;
(3) Strategies to be used by the PHA in achieving the performance
targets within the time period of the MOA;
(4) Technical assistance to the PHA provided or facilitated by the
Department, for example, the training of PHA employees in specific
management areas or assistance in the resolution of outstanding HUD
monitoring findings;
(5) The PHA's commitment to take all actions within its control to
achieve the targets;
(6) Incentives for meeting such targets, such as the removal of
troubled or mod-troubled designation and Departmental recognition for
the most improved PHAs;
(7) The consequences of failing to meet the targets, including such
sanctions as the imposition of budgetary limitations, declaration of
substantial default and subsequent actions, limited denial of
participation, suspension, debarment, or the imposition of operating
funding and modernization thresholds; and
(8) A description of the involvement of local public and private
entities, including PHA resident leaders, in carrying out the agreement
and rectifying the PHA's problems. A PHA shall have primary
responsibility for obtaining active local public and private entity
participation, including the involvement of public housing resident
leaders, in assisting PHA improvement efforts. Local public and private
entity participation should be premised upon the participant's
knowledge of the PHA, ability to contribute technical expertise with
regard to the PHA's specific problem areas and authority to make
preliminary/tentative commitments of support, financial or otherwise.
(b) A MOA shall be executed by:
(1) The PHA Board Chairperson and accompanied by a Board
resolution, or a receiver (pursuant to a court ordered receivership
agreement, if applicable) or other AME acting in lieu of the PHA Board;
(2) The PHA Executive Director, or a designated receiver (pursuant
to a court ordered receivership agreement, if applicable) or other AME-
designated Chief Executive Officer;
(3) The Director, State/Area Office of Public Housing, except as
stated in (d) of this section; and
(4) The appointing authorities of the Board of Commissioners,
unless exempted by the State/Area Office.
(c) The Department encourages the inclusion of the resident
leadership in MOA negotiations and the execution of the MOA.
(d) Upon designation of a large PHA (1250 or more units under
management) as troubled, the State/Area Office shall make a referral to
HUD Headquarters for appropriate recovery intervention and the
execution of an MOA by the Assistant Secretary for Public and Indian
Housing.
(e) A PHA will monitor MOA implementation to ensure that
performance targets are met in terms of quantity, timeliness and
quality.
Sec. 901.140 Removal from troubled status and mod-troubled status.
(a) A PHA has the right to petition the State/Area Office for the
removal of a designation as troubled or mod-troubled.
(b) A PHA may appeal any refusal to remove troubled and mod-
troubled designation to the Assistant Secretary for Public and Indian
Housing in accordance with Sec. 901.125.
(c) A PHA with fewer that 1250 units under management will be
removed from troubled status by the State/Area Office upon a
determination by the State/Area Office that the PHA's assessment
reflects an improvement to a level sufficient to remove the PHA from
troubled status, or mod-troubled, i.e., a total weighted management
assessment score of 60% or more, and upon the conduct of a confirmatory
review for PHAs with 100 or more units under management.
(d) A PHA with 1250 units or more under management will be removed
from troubled status by the Assistant Secretary for Public and Indian
Housing upon a recommendation by the State/Area Office when a PHA's
assessment reflects an improvement to a level sufficient to remove the
PHA from troubled or mod-troubled status, i.e., a total weighted
management assessment score of 60% or more, and upon the conduct of an
independent confirmatory review (team members from other State/Area
Offices).
Sec. 901.145 Improvement Plan.
(a) After receipt of the State/Area Office notification letter in
accordance with Sec. 901.120(b) or receipt of a final resolution of an
appeal in accordance with Sec. 901.125 or, in the case of an RMC,
notification of its indicator grades from a PHA, a PHA or RMC shall
correct any deficiency indicated in its management assessment within 90
calendar days.
(b) A PHA shall notify the State/Area Office of its action to
correct a deficiency. A PHA shall also forward to the State/Area Office
an RMC's report of its action to correct a deficiency.
(c) If the State/Area Office determines that a PHA or RMC has not
corrected a deficiency as required within 90 calendar days after
receipt of its final
[[Page 68948]]
notification letter, the State/Area Office may require a PHA, or a RMC
through the PHA, to prepare and submit to the State/Area Office an
Improvement Plan within an additional 30 calendar days:
(1) The State/Area Office shall require a PHA or RMC to submit an
Improvement Plan, which includes the information stated in (d) of this
section, for each indicator that a PHA or RMC scored a grade of F.
(2) The State/Area Office may require, on a risk management basis,
a PHA or RMC to submit an Improvement Plan, which includes the
information stated in paragraph (d) of this section, for each indicator
that a PHA scored a grade D or E, as well as other performance and/or
compliance deficiencies as may be identified as a result of an on-site
review of the PHA's operations.
(d) An Improvement Plan shall:
(1) Identify baseline data, which should be raw data but may be the
PHA's score in each of the indicators identified as a problem in a
PHA's or RMC's management assessment, or other relevant areas
identified as problematic;
(2) Describe the procedures that will be followed to correct each
deficiency; and
(3) Provide a timetable for the correction of each deficiency.
(e) The State/Area Office will approve or deny a PHA's or RMC's
Improvement Plan, and notify the PHA of its decision. A PHA must notify
the RMC in writing, immediately upon receipt of the State/Area Office
notification, of the State/Area Office approval or denial of the RMC's
Improvement Plan.
(f) An Improvement Plan that is not approved will be returned to
the PHA with recommendations from the State/Area Office for revising
the Improvement Plan to obtain approval. A revised Improvement Plan
shall be resubmitted by the PHA or RMC within 30 calendar days of its
receipt of the State/Area Office recommendations.
(g) If a PHA or RMC fails to submit an acceptable Improvement Plan,
or to correct deficiencies within the time specified in an Improvement
Plan or such extensions as may be granted by HUD, the State/Area Office
will notify the PHA of its or the RMC's noncompliance. The PHA, or the
RMC through the PHA, will provide HUD its reasons for lack of progress
in submitting or carrying out the Improvement Plan within 30 calendar
days of its receipt of the noncompliance notification. HUD will advise
the PHA as to the acceptability of its reasons for lack of progress
and, if unacceptable, will notify the PHA that it will be subject to
sanctions provided for in the ACC and HUD regulations.
Sec. 901.150 PHAs troubled with respect to the program under section
14 (mod-troubled PHAs).
(a) PHAs that achieve a total weighted score of less than 60% on
indicator #2, modernization, may be designated as mod-troubled.
(b) PHAs designated as mod-troubled may be subject, under the
Comprehensive Grant Program, to a reduction of formula allocation or
other sanctions (24 CFR Sec. 968, Subpart C) or under the Comprehensive
Improvement Assistance Program to disapproval of new funding or other
sanctions (24 CFR Sec. 968, Subpart B).
Sec. 901.155 PHMAP public record.
The State/Area Office will maintain PHMAP files, including
certifications, the records of exclusion and modification requests,
appeals, and designations of status based on physical condition and
neighborhood environment, as open records, available for public
inspection for three years consistent with the Freedom of Information
Act (5 U.S.C. 552) and in accordance with any procedures established by
the State/Area Office to minimize disruption of normal office
operations.
Sec. 901.200 Events or conditions that constitute substantial default.
(a) The Department may determine that events have occurred or that
conditions exist that constitute a substantial default if a PHA is
determined to be in violation of Federal statutes, including but not
limited to, the 1937 Act, or in violation of regulations implementing
such statutory requirements, whether or not such violations would
constitute a substantial breach or default under provisions of the
relevant ACC.
(b) The Department may determine that a PHA's failure to satisfy
the terms of a Memorandum of Agreement entered into in accordance with
Sec. 901.135 of this part, or to make reasonable progress to meet time
frames included in a Memorandum of Agreement, are events or conditions
that constitute a substantial default.
(c) The Department shall determine that a PHA that has been
designated as troubled and does not show significant improvement (10
percentage point increase) in its PHMAP score within one year after
final notification of its PHMAP score are events or conditions that
constitute a substantial default:
(1) A PHA shall be notified of such a determination in accordance
with Sec. 901.205(c).
(2) A PHA may waive, in writing, receipt of explicit notice from
the Department as to a finding of substantial default, and voluntarily
consent to a determination of substantial default. The PHA must concur
on the existence of substantial default conditions which can be
remedied by technical assistance, and the PHA shall provide the
Department with written assurances that all deficiencies will be
addressed by the PHA. The Department will then immediately proceed with
interventions as provided in Sec. 901.210.
(d) The Department may declare a substantial breach or default
under the ACC, in accordance with its terms and conditions.
(e) The Department may determine that the events or conditions
constituting a substantial default are limited to a portion of a PHA's
public housing operations, designated either by program, by operational
area, or by development(s).
Sec. 901.205 Notice and response.
(a) If information from an annual assessment, as described in
Sec. 901.100, a management review or audit, or any other credible
source indicates that there may exist events or conditions constituting
a substantial breach or default, the Department shall advise a PHA of
such information. The Department is authorized to protect the
confidentiality of the source(s) of such information in appropriate
cases. Before taking further action, except in cases of apparent fraud
or criminality, and/or in cases where emergency conditions exist posing
an imminent threat to the life, health, or safety of residents, the
Department shall afford the PHA a timely opportunity to initiate
corrective action, including the remedies and procedures available to
PHAs designated as ``troubled PHAs,'' or to demonstrate that the
information is incorrect.
(b) In any situation determined to be an emergency, or in any case
where the events or conditions precipitating the intervention are
determined to be the result of criminal or fraudulent activity, the
Assistant Secretary is authorized to intercede to protect the
residents' and the Department's interests by causing the proposed
interventions to be implemented without further appeals or delays.
(c) Upon a determination or finding that events have occurred or
that conditions exist that constitute a substantial default, the
Assistant Secretary shall provide written notification of such
determination or finding to the affected PHA. Written notification
shall be transmitted to the Executive Director, the Chairperson of the
Board, and the appointing
[[Page 68949]]
authority(s) of the Board, and shall include, but need not necessarily
be limited to:
(1) Identification of the specific covenants, conditions, and/or
agreements under which the PHA is determined to be in noncompliance;
(2) Identification of the specific events, occurrences, or
conditions that constitute the determined noncompliance;
(3) Citation of the communications and opportunities to effect
remedies afforded pursuant to paragraph (a) of this section;
(4) Notification to the PHA of a specific time period, to be not
less than 10 calendar days, except in cases of apparent fraud or other
criminal behavior, and/or under emergency conditions as described in
paragraph (a) of this section, nor more than 30 calendar days, during
which the PHA shall be required to demonstrate that the determination
or finding is not substantively accurate; and
(5) Notification to the PHA that, absent a satisfactory response in
accordance with paragraph (d) of this section, the Department will take
control of the PHA, using any or all of the interventions specified in
Sec. 901.210, and determined to be appropriate to remedy the
noncompliance, citing Sec. 901.210, and any additional authority for
such action.
(d) Upon receipt of the notification described in paragraph (c) of
this section, the PHA must demonstrate, within the time period
permitted in the notification, factual error in the Department's
description of events, occurrences, or conditions, or show that the
events, occurrences, or conditions do not constitute noncompliance with
the statute, regulation, or covenants or conditions to which the PHA is
cited in the notification.
Sec. 901.210 Interventions.
(a) Interventions under this part (including an assumption of
operating responsibilities) may be limited to one or more of a PHA's
specific operational areas (e.g., maintenance, modernization,
occupancy, or financial management) or to a single development or a
group of developments. Under this limited intervention procedure, the
Department could select, or participate in the selection of, an AME to
assume management responsibility for a specific development, a group of
developments in a geographical area, or a specific operational area,
while permitting the PHA to retain responsibility for all programs,
operational areas, and developments not so designated.
(b) Upon determining that a substantial default exists under this
part, the Department may initiate any interventions deemed necessary to
maintain decent, safe, and sanitary dwellings for residents. Such
intervention may include:
(1) Providing technical assistance for existing PHA management
staff;
(2) Selecting or participating in the selection of an AME to
provide technical assistance or other services up to and including
contract management of all or any part of the public housing
developments administered by a PHA;
(3) Assuming possession and operational responsibility for all or
any part of the public housing administered by a PHA; and
(4) The provision of intervention and assistance necessary to
remedy emergency conditions.
(c) HUD may take the actions described in this part sequentially or
simultaneously in any combination.
Sec. 901.215 Contracting and funding.
(a) Upon a declaration of substantial default or breach, and
subsequent assumption of possession and operational responsibility, the
Department may enter into agreements, arrangements, and/or contracts
for or on behalf of a PHA, or to act as the PHA, and to expend or
authorize expenditure of PHA funds, irrespective of the source of such
funds, to remedy the events or conditions constituting the substantial
default.
(b) In entering into contracts or other agreements for or on behalf
of a PHA, the Department shall comply with requirements for competitive
procurement consistent with 24 CFR 85.36, except that, upon
determination of public exigency or emergency that will not permit a
delay, the Department can enter into contracts or agreements on a
noncompetitive basis, consistent with the standards of 24 CFR
85.36(d)(4).
Sec. 901.220 Resident participation in competitive proposals to manage
the housing of a PHA.
(a) When a competitive proposal to manage the housing of a PHA in
substantial default is solicited in a Request for Proposals (RFP)
pursuant to section 6(j)(3)(A)(i) of the 37 Act, the RFP, in addition
to publishing the selection criteria, will:
(1) Include a requirement for residents to notify the Department if
they want to be involved in the selection process; and
(2) Include a requirement for the PHA that is the subject of the
RFP to post a notice and a copy of the RFP in a prominent location on
the premises of each housing development that would be subject to the
management chosen under the RFP, for the purposes of notifying affected
residents that:
(i) Invites residents to participate in the selection process; and
(ii) Provides information, to be specified in the RFP, on how to
notify the Department of their interest.
(b) Residents must notify the Department by the RFP's application
due date of their interest in participating in the selection process.
In order to participate, the total number of residents that notify the
Department must equal at least 20 percent of the residents, or the
notification of interest must be from an organization or organizations
of residents whose membership must equal at least 20 percent of the
PHA's residents.
(c) If the required percentage of residents notify the Department,
a minimum of one resident may be invited to serve as an advisory member
on the evaluation panel that will review the applications in accordance
with applicable procurement procedures. Resident advisory members are
subject to all applicable confidentiality and disclosure restrictions.
Sec. 901.225 Resident petitions for remedial action.
The total number of residents that petition the Department to take
remedial action pursuant to sections 6(j)(3)(A)(i) through (iv) of the
1937 Act must equal at least 20 percent of the residents, or the
petition must be from an organization or organizations of residents
whose membership must equal at least 20 percent of the PHA's residents.
Sec. 901.230 Receivership.
(a) Upon a determination that a substantial default has occurred
and without regard to the availability of alternate remedies, the
Department may petition the court for the appointment of a receiver to
conduct the affairs of the PHA in a manner consistent with statutory,
regulatory, and contractual obligations of the PHA and in accordance
with such additional terms and conditions that the court may provide.
The court shall have authority to grant appropriate temporary or
preliminary relief pending final disposition of any petition by HUD.
(b) The appointment of a receiver pursuant to this section may be
terminated upon the petition to the court by the PHA, the receiver, or
the Department, and upon a finding by the court that the circumstances
or conditions that constituted substantial
[[Page 68950]]
default by the PHA no longer exist and that the operations of the PHA
will be conducted in accordance with applicable statutes and
regulations, and contractual covenants and conditions to which the PHA
and its public housing programs are subject.
Sec. 901.235 Technical assistance.
(a) The Department may provide technical assistance to a PHA that
is in substantial default.
(b) The Department may provide technical assistance to a troubled
or non-troubled PHA if the assistance will enable the PHA to achieve
satisfactory performance on any PHMAP indicator. The Department may
provide such assistance if a PHA demonstrates a commitment to undertake
improvements appropriate with the given circumstances, and executes an
Improvement Plan in accordance with Sec. 901.145.
(c) The Department may provide technical assistance to a PHA if
without abatement of prevailing or chronic conditions, the PHA can be
projected to be designated as troubled by its next PHMAP assessment.
(d) The Department may provide technical assistance to a PHA that
is in substantial default of the ACC.
(e) The Department may provide technical assistance to a PHA whose
troubled designation has been removed and where such assistance is
necessary to prevent the PHA from being designated as troubled within
the next two years.
Dated: December 10, 1996.
Kevin Emanuel Marchman,
Acting Assistant Secretary for Public and Indian Housing.
[FR Doc. 96-32469 Filed 12-27-96; 8:45 am]
BILLING CODE 4210-33-P
