[Federal Register Volume 63, Number 251 (Thursday, December 31, 1998)]
[Notices]
[Pages 72319-72320]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34667]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-4280-N-04]
Real Estate Assessment Center; Notice of Issuance of Advisory
Scores Under the Public Housing Assessment System
AGENCY: Office of the Director of the Real Estate Assessment Center,
HUD.
ACTION: Notice.
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SUMMARY: This notice advises public housing agencies, as well as
members of the public, that HUD's Real Estate Assessment Center intends
to issue advisory scores to public housing agencies under the new
Public Housing Assessment System, established by final rule published
on September 1, 1998. The schedule for issuance of advisory scores by
the Real Estate Assessment Center accompanies this notice.
FOR FURTHER INFORMATION CONTACT: For further information contact the
Real Estate Assessment Center, Attention William Hill, Department of
Housing and Urban Development, Suite 800, 1280 Maryland Ave, SW,
Washington, DC 20024-2135; telephone (202) 708-4932 (this is not a
toll-free number). Persons with hearing or speech impairments may
access that number via TTY by calling the Federal Information Relay
Service at (800) 877-8339.
SUPPLEMENTARY INFORMATION: HUD developed the new Public Housing
Assessment System (PHAS) to replace the existing Public Housing
Management Assessment Program (PHMAP) and provide for a more
comprehensive monitoring system of public housing operations. The PHAS
final rule was published on September 1, 1998, and is codified at 24
CFR part 902. The PHAS uses four (4) indicators to assess a PHA's
housing operations and determine a PHA's performance in delivering HUD
programs and services. These indicators are: (1) the physical condition
of the PHA's properties; (2) the financial condition of the PHA; (3)
the management operations of the PHA; and (4) the resident services
provided by the PHA and the residents' satisfaction with these
services. On the basis of these four indicators, HUD's Real Estate
Assessment Center (REAC) calculates a composite PHAS score for each
PHA.
The PHAS composite score represents a single score or grade for a
PHA's entire operation. The PHAS score is derived from the scores
calculated for each of the four indicators. Each of the four indicators
is assigned a maximum value as follows:
(1) Physical condition--maximum 30 points;
(2) Financial condition--maximum 30 points;
(3) Management operations--maximum 30 points; and
(4) Resident service and satisfaction--maximum 10 points.
The PHAS composite score will determine whether a PHA is performing
well or is not performing well. Under the PHAS, a PHA that receives an
official composite PHAS score below 60 points, or achieves a score of
less than 60 percent of the points available under PHAS Indicators 1,
2, or 3, will be designated as troubled and will be referred to HUD's
Office of Troubled Agency Recovery for oversight and remedial action.
In the PHAS final rule, HUD stated that it may issue advisory
scores to PHAs before the PHAS becomes fully operational (see 63 FR
46601). The advisory score will provide a PHA with a reasonable
facsimile of the score that the PHA would receive if the PHAS was fully
operational now. The advisory score also will provide a PHA with the
opportunity to evaluate its standing in comparison to the present day
PHMAP process and to prepare for full implementation of the new PHAS.
The PHAS becomes effective for all PHAs with fiscal years ending on and
after September 30, 1999.
The REAC intends to provide every PHA with an advisory score before
the PHA receives its official PHAS score. The REAC, however, will issue
advisory PHAS scores only after it has a complete set of data for all
four indicators. With respect to Indicator 1 (Physical Condition), the
REAC is responsible for assessing the physical condition of PHA
properties and therefore receives this indicator information firsthand.
Information regarding the other indicators is provided to the REAC by
the PHAs (as for example, the PHA annual financial reports). If the PHA
fails to timely submit this information to the REAC, then issuance of
the PHAS advisory score will be delayed until the REAC receives the
necessary information. A significant delay by the PHA in submitting the
necessary information may result in the REAC being unable to issue any
advisory score.
To assure an accurate official PHAS score, the REAC will continue
to confirm and corroborate the results of the advisory scores. Toward
this end, the REAC welcomes feedback from PHAs as they receive and
review their advisory scores. Since the advisory scores, however, are
based on data that
[[Page 72320]]
is similar but not identical to the official PHAS data, there will be
variances that cannot be removed from the calculations. For example,
the PHAS advisory score will be based on financial information that was
not prepared in accordance with generally accepted accounting
principles (GAAP). The official PHAS score will be based on financial
information prepared in accordance with GAAP, as required by the new
PHAS.
During the period in which the REAC is calculating and issuing PHAS
advisory scores, the REAC will solicit comments and recommendations
from PHAs that will assist HUD and the REAC in identifying any
necessary technical adjustments that may need to be made to the new
PHAS before it becomes fully operational in Federal fiscal year 2000.
REAC plans to distribute additional information and details about PHAS
advisory scores to PHAs within the next several weeks.
Dated: December 24, 1998.
Barbara L. Burkhalter,
Deputy Director, Real Estate Assessment Center
Public Housing Assessment System Advisory Score Schedule
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PHA regular Field office
submission Field office submission REAC advisory REAC unaudited REAC audited
dates to field regular date to REAC scpre date\4\ official score official score
office process date \3\ date date
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FIRST QUARTER (9-30-98 YEAR ENDS):
PHYSICAL \1\............................................ N/A N/A N/A 12/31/98 12/31/99 7/31/2000
FINANCIAL \5\........................................... 11-15-98 1/31/99 11/30/98 12/31/98 12/31/99 7/31/2000
MANAGEMENT.............................................. 11-30-98 1/31/99 12/7/98 12/31/98 12/31/99 7/31/2000
RESIDENT \2\............................................ 11-30-98 1/31/99 12/7/98 12/31/98 12/31/99 7/31/2000
SECOND QUARTER (12-31-98 YEAR ENDS):
PHYSICAL \1\............................................ N/A N/A N/A 3-31-99 3-31-2000 10-31-2000
FINANCIAL \5\........................................... 2-15-99 4-30-99 2-28-99 3-31-99 3-31-2000 10-31-2000
MANAGEMENT.............................................. 3-1-99 4-30-99 3-15-99 3-31-99 3-31-2000 10-31-2000
RESIDENT \2\............................................ 3-1-99 4-30-99 3-15-99 3-31-99 3-31-2000 10-31-2000
THIRD QUARTER (3-31-99 YEAR ENDS):
PHYSICAL \1\............................................ N/A N/A N/A 6-30-99 6-30-2000 1-31-2001
FINANCIAL \5\........................................... 5-15-99 7-31-99 5-30-99 6-30-99 6-30-2000 1-31-2001
MANAGEMENT.............................................. 5-31-99 7-31-99 6-14-99 6-30-99 6-30-2000 1-31-2001
RESIDENT \2\............................................ 5-31-99 7-31-99 6-14-99 6-30-99 6-30-2000 1-31-2001
FOURTH QUARTER (6-30-99 YEAR ENDS):
PHYSICAL \1\............................................ N/A N/A N/A 9-30-99 9-30-2000 4-31-2001
FINANCIAL \5\........................................... 8-14-99 10-31-99 8-30-99 9-30-99 9-30-2000 4-31-2001
MANAGEMENT.............................................. 8-29-99 10-31-99 9-13-99 9-30-99 9-30-2000 4-31-2001
RESIDENT \2\............................................ 8-29-99 10-31-99 9-13-99 9-30-99 9-30-2000 4-31-2001
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Notes:
\1\ Physical inspections are performed by the REAC; no PHA or field office submissions are required. Weather conditions in the second quarter could
delay inspections.
\2\ Resident satisfaction advisory scores are based on the resident indicator in PHMAP. Official scores will be based on resident surveys.
\3\ Field office processing dates have been accelerated in order to meet the requirement to produce advisory score due dates.
\4\ REAC will produce advisory scores by these due dates to the extent data is received from the PHAs and forwarded to the REAC by the due dates in note
3 above. To the extent data is received after the due date, REAC will produce advisory scores periodically thereafter (generally in two week
increments after the original advisory score due dates).
\5\ Financial advisory scores will be based on the current HUD accounting standards; whereas the official scores will be based on GAAP accounting
standards because PHAs do not report GAAP based information to HUD until 9-30-99 fiscal year ends. Financial advisory scores will be based on the low
rent program only; whereas the official scores will be based on a PHA entity-wide financial assessment because PHAs do not submit entity-wide
financial reports to HUD. Financial advisory scores will be based on unaudited data because audits are not due until 13 months (9 months beginning
with June 30, 1999 year-end) after year end.
[FR Doc. 98-34667 Filed 12-30-98; 8:45 am]
BILLING CODE 4210-32-P
