24 CFR Part 902

902.75 Troubled performers.
902.79 Verification and records.
902.81 Resident petitions for remedial action.
902.83 Sanctions for troubled performer
PHAs.

PARTS 900–901 [RESERVED]
PART 902—PUBLIC HOUSING
ASSESSMENT SYSTEM
Sec.
902.1
902.3
902.5
902.9
902.11
902.13

Subpart A—General Provisions

AUTHORITY: 42 U.S.C. 1437d(j), 42 U.S.C.
3535(d).

Purpose, scope, and general matters.
Definitions.
Applicability.
PHAS scoring.
PHAS performance designation.
Frequency of PHAS assessments.

SOURCE: 76 FR 10149, Feb. 23, 2011, unless
otherwise noted.

Subpart A—General Provisions

Subpart B—Physical Condition Indicator
902.20 Physical condition assessment.
902.21 Physical condition standards for public housing—decent, safe, and sanitary
housing in good repair (DSS/GR).
902.22 Physical inspection of PHA projects.
902.24 Database adjustment.
902.25 Physical
condition
scoring
and
thresholds.
902.26 Physical Inspection Report.

Subpart C—Financial Condition Indicator
902.30 Financial condition assessment.
902.33 Financial reporting requirements.
902.35 Financial condition scoring and
thresholds.

Subpart D—Management Operations
Indicator
902.40 Management operations assessment.
902.43 Management operations performance
standards.
902.44 Adjustment for physical condition
and neighborhood environment.
902.45 Management operations scoring and
thresholds.

Subpart E—Capital Fund Program Indicator
902.50 Capital Fund program assessment.
902.53 Capital Fund program scoring and
thresholds.

Subpart F—PHAS Scoring

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902.60 Data collection.
902.62 Failure to submit data.
902.64 PHAS scoring and audit reviews.
902.66 Withholding, denying, and rescinding
designation.
902.68 Technical review of results of PHAS
physical condition indicator.
902.69 PHA right of petition and appeal.

Subpart G—PHAS Incentives and
Remedies
902.71
902.73

Incentives for high performers.
PHAs with deficiencies.

§ 902.1 Purpose, scope, and general
matters.
(a) Purpose. The purpose of the Public
Housing Assessment System (PHAS) is
to improve the delivery of services in
public housing and enhance trust in
the public housing system among public housing agencies (PHAs), public
housing residents, and the general public, by providing a management tool
for effectively and fairly measuring the
performance of a PHA in essential
housing operations of projects, on a
program-wide basis and individual
project basis, and providing rewards for
high performers and remedial requirements for poor performers.
(b) Scope. PHAS is a strategic measure of the essential housing operations
of projects and PHAs. PHAS does not
evaluate the compliance of a project or
PHA with every HUD-wide or programspecific requirement or objective. Although not specifically evaluated
through PHAS, PHAs are responsible
for complying with nondiscrimination
and equal opportunity requirements,
including but not limited to those specified in 24 CFR 5.105, for affirmatively
furthering fair housing, requirements
under section 504 of the Rehabilitation
Act of 1973 (29 U.S.C. 794), and requirements of other federal programs under
which the PHA is receiving assistance.
A PHA’s adherence to these requirements will be monitored in accordance
with the applicable program regulations and the PHA’s Annual Contributions Contract (ACC).
(c) PHAS indicators. HUD will assess
and score the performance of projects
and PHAs based on the indicators,
which are more fully addressed in
§ 902.9: Physical condition, financial
condition, management operations, and
the Capital Fund program.

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§ 902.3

24 CFR Ch. IX (4–1–16 Edition)

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(d) Assessment tools. HUD will make
use of uniform and objective criteria
for the physical inspection of projects
and PHAs and the financial assessment
of projects and PHAs, and will use data
from appropriate agency data systems
to assess management operations. For
the Capital Fund program indicator,
HUD will use information provided in
the electronic Line of Credit Control
System (eLOCCS), the Public Housing
Information Center (PIC), or their successor systems. On the basis of this
data, HUD will assess and score the results, advise PHAs of their scores, and
identify low-scoring and poor-performing projects and PHAs so that
these projects and PHAs will receive
the appropriate attention and assistance.
(e) Small PHAs. A PHA with fewer
than 250 units that does not convert to
asset management will be considered
as one project by HUD.
(f) HUD’s scoring procedures will be
published from time to time in the
FEDERAL REGISTER for public comment.
§ 902.3 Definitions.
As used in this part:
Act means the U.S. Housing Act of
1937 (42 U.S.C. 1437 et seq.)
Alternative management entity (AME)
is a receiver, private contractor, private manager, or any other entity that
is under contract with a PHA, under a
management agreement with a PHA, or
that is otherwise duly appointed or
contracted (for example, by court order
or agency action), to manage all or
part of a PHA’s operations.
Assessed fiscal year is the PHA fiscal
year that has been/is being assessed
under PHAS.
Assistant Secretary means the Assistant Secretary for Public and Indian
Housing.
Capital Fund-troubled refers to a PHA
that does not meet the minimum passing score of 5 points or 50 percent under
the Capital Fund indicator.
Corrective Action Plan means a plan,
as provided in § 902.73(a), that is developed by a PHA that specifies the actions to be taken, including timetables,
that shall be required to correct deficiencies identified under any of the
PHAS indicators and subindicators,
and identified as a result of a PHAS as-

sessment, when a memorandum of
agreement (MOA) is not required.
Criticality means one of five levels
that reflect the relative importance of
the deficiencies for an inspectable
item.
(1) Based on the importance of the
deficiency, reflected in its criticality
value, points are deducted from the
score for an inspectable area.
Criticality

Level

Critical ............................................................
Very Important ...............................................
Important ........................................................
Contributes ....................................................
Slight Contribution .........................................

(2) The Item Weights and Criticality
Levels document lists all deficiencies
with their designated levels, which
vary from 1 to 5, with 5 as the most
critical, and the point values assigned
to them.
Days mean calendar days, unless otherwise specified.
Decent, safe, sanitary housing and in
good repair (DSS/GR) is HUD’s standard
for acceptable basic housing conditions
and the level to which a PHA is required to maintain its public housing.
Deficiency means any finding or determination that requires corrective
action, or any score below 60 percent of
the available points for the physical
condition, financial condition, or management operations indicators, and any
score below 50 percent for the Capital
Fund indicator. In the context of physical condition and physical inspection
in subpart B of this part, ‘‘deficiency’’
means a specific problem, as described
in the Dictionary of Deficiency Definitions, such as a hole in a wall or a damaged refrigerator in the kitchen that
can be recorded for inspectable items.
Dictionary of Deficiency Definitions
means the Dictionary of Deficiency
Definitions document that is utilized
in the PHAS Physical Condition Scoring procedure, and which contains specific definitions of each severity level
for deficiencies under this subpart.
Direct Funded RMC (DF–RMC) means
a Resident Management Corporation to
which HUD directly provides operating
and capital assistance under the provisions of 24 CFR 964.225(h).
Inspectable areas (or area) mean any
of the five major components of public

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Asst. Secry., for Public and Indian Housing, HUD
housing that are inspected, which are:
Site, building exteriors, building systems, dwelling units, and common
areas.
Inspectable item means the individual
parts, such as walls, kitchens, bathrooms, and other things, to be inspected in an inspectable area. The
number of inspectable items varies for
each area. Weights are assigned to each
item as shown in the Item Weights and
Criticality Levels document.
Item Weights and Criticality Levels document means the Item Weights and
Criticality Levels document that is
utilized in the Physical Condition scoring procedure, and which contains a
listing of the inspectable items, item
weights, observable deficiencies, criticality levels and values, and severity
levels and values that apply to this
subpart.
Memorandum of Agreement (MOA) is
defined in § 902.75(b).
Normalized weights mean weights adjusted to reflect the inspectable items
or areas that are present to be inspected.
Resident
Management
Corporation
(RMC) is defined in 24 CFR 964.7.
Score for a project under the physical
condition inspection means a number
on a scale of 0 to 100 that reflects the
physical condition of a project, inspectable area, or subarea. To record a
health or safety deficiency, a specific
designation (such as a letter—a, b, or c)
is added to the project score that highlights that a health or safety deficiency (or deficiencies) exists. If smoke
detectors are noted as inoperable or
missing, another designation (such as
an asterisk (*)) is added to the project
score. Although inoperable or missing
smoke detectors do not reduce the
score, they are fire safety hazards and
are included in the Notification of Exigent and Fire Safety Hazards Observed
Deficiency list that the inspector gives
the PHA’s project representative.
Severity under the physical condition
inspection means one of three levels,
level 1 (minor), level 2 (major), and
level 3 (severe), that reflect the extent
of the damage or problem associated
with each deficiency. The Item Weights
and Criticality Levels document shows
the severity levels for each deficiency.
Based on the severity of each defi-

§ 902.5

ciency, the score is reduced. Points deducted are calculated as the product of
the item weight and the values for
criticality and severity. For specific
definitions of each severity level, see
the Dictionary of Deficiency Definitions.
Statistically valid sample refers to a
scientific sampling performed in a rigorous, random manner.
Subarea means an inspectable area
for one building. For example, if a
project has more than one building,
each inspectable area for each building
in the project is treated as a subarea.
Unit-weighted average means the average of the PHA’s individual indicator
scores, weighted by the number of
units in each project, divided by the
total number of units in all of the
projects of the PHA. In order to compute a unit-weighted average, an individual project score for a particular indicator is multiplied by the number of
units in each project to determine a
‘‘weighted value.’’ For example, for a
PHA with two projects, one with 200
units and a score of 90, and the other
with 100 units and a score of 60, the
unit-weighted average score for the indicator would be (200 × 90 + 100 × 60)/300
= 80.
§ 902.5

Applicability.

(a) PHAs, RMCs, AMEs. This part applies to PHAs, Resident Management
Corporations (RMCs), and AMEs. This
part is also applicable to RMCs that receive direct funding from HUD in accordance with section 20 of the 1937 Act
(DF–RMCs).
(1) Scoring of RMCs and AMEs. (i)
RMCs and DF–RMCs will be assessed
and issued their own numeric scores
under PHAS based on the public housing or portions of public housing that
they manage and the responsibilities
they assume that can be scored under
PHAS. References in this part to PHAs
include RMCs, unless stated otherwise.
References in this part to RMCs include DF–RMCs, unless stated otherwise.
(ii) AMEs are not issued PHAS
scores. The performance of the AME
contributes to the PHAS score of the
project(s)/PHA(s) for which they assumed management responsibilities.

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§ 902.9

24 CFR Ch. IX (4–1–16 Edition)

(2) ACC. The ACC makes a PHA legally responsible for all public housing
operations, except where DF–RMC assumes management operations.
(i) Because the PHA and not the RMC
or AME is ultimately responsible to
HUD under the ACC, the PHAS score of
a PHA will be based on all of the
projects covered by the ACC, including
those with management operations assumed by an RMC or AME (including a
court-ordered or administrative receivership agreement, if applicable).
(ii) A PHA’s PHAS score will not be
based on projects managed by a DF–
RMC.
(3) This part does not apply to Moving-to-Work (MTW) agencies that are
specifically exempted in their grant
agreement.
(b) Implementation of PHAS. The regulations in this part are applicable to
PHAs beginning with the first fiscal
year end date after the effective date of
this rule, and thereafter.

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§ 902.9

PHAS scoring.

(a) Indicators and subindicators. Each
PHA will receive an overall PHAS
score, rounded to the nearest whole
number, based on the four indicators:
Physical condition, financial condition, management operations, and the
Capital Fund program. Each of these
indicators contains subindicators, and
the scores for the subindicators are
used to determine a single score for
each of these PHAS indicators. Individual project scores are used to determine a single score for the physical
condition, financial condition, and
management operations indicators.
The Capital Fund program indicator
score is entity-wide.
(b) Overall PHAS score and indicators.
The overall PHAS score is derived from
a weighted average of score values for
the four indicators, as follows:
(1) The physical condition indicator
is weighted 40 percent (40 points) of the
overall PHAS score. The score for this
indicator is obtained as indicated in
subpart B of this part.
(2) The financial condition indicator
is weighted 25 percent (25 points) of the
overall PHAS score. The score for this
indicator is obtained as indicated in
subpart C of this part.

(3) The management operations indicator is weighted 25 percent (25 points)
of the overall PHAS score. The score
for this indicator is obtained as indicated in subpart D of this part.
(4) The Capital Fund program indicator is weighted 10 percent (10 points)
of the overall PHAS score for all Capital Fund program grants for which
fund balances remain during the assessed fiscal year. The score for this indicator is obtained as indicated in subpart E of this part.
§ 902.11 PHAS performance designation.
All PHAs that receive a PHAS assessment shall receive a performance designation. The performance designation
is based on the overall PHAS score and
the four indicator scores, as set forth
below.
(a) High performer. (1) A PHA that
achieves a score of at least 60 percent
of the points available under the financial condition, physical condition, and
management operations indicators and
at least 50 percent of the points available under the Capital Fund indicator,
and achieves an overall PHAS score of
90 percent or greater of the total available points under PHAS shall be designated a high performer. A PHA shall
not be designated a high performer if it
scores below the threshold established
for any indicator.
(2) High performers will be afforded
incentives that include relief from reporting and other requirements, as described in § 902.71.
(b) Standard performer. (1) A PHA that
is not a high performer shall be designated a standard performer if the
PHA achieves an overall PHAS score of
at least 60 percent, and at least 60 percent of the available points for the
physical condition, financial condition,
and management operations indicators,
and at least 50 percent of the available
points for the Capital Fund indicator.
(2) At HUD’s discretion, a standard
performer may be required by the field
office to submit and operate under a
Corrective Action Plan.
(c) Substandard performer. A PHA
shall be designated a substandard performer if the PHA achieves a total
PHAS score of at least 60 percent and
achieves a score of less than 60 percent

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under one or more of the physical condition, financial condition, or management operations indicators. The PHA
shall be designated as substandard
physical, substandard financial, or substandard management, respectively.
The HUD office with jurisdiction over
the PHA shall require a Corrective Action Plan if the deficiencies have not
already been addressed in a current
Corrective Action Plan.
(d) Troubled performer. (1) A PHA that
achieves an overall PHAS score of less
than 60 percent shall be designated as a
troubled performer.
(2) In accordance with section
6(j)(2)(A)(i) of the Act (42 U.S.C.
1437d(j)(2)(A)(i)), a PHA that receives
less than 50 percent under the Capital
Fund program indicator under subpart
E of this part will be designated as a
troubled performer and subject to the
sanctions provided in section 6(j)(4) of
the Act (42 U.S.C. 1437(d)(j)(4)).
§ 902.13 Frequency of PHAS assessments.
The frequency of a PHA’s PHAS assessments is determined by the size of
the PHA’s Low-Rent program and its
PHAS designation. HUD may, due to
unforeseen circumstances or other
cause as determined by HUD, extend
the time between assessments by direct
notice to the PHA and relevant resident organization or resident management entity, and any other general notice that HUD deems appropriate.
(a) Small PHAs. HUD will assess and
score the performance of a PHA with
fewer than 250 public housing units, as
follows:
(1) A small PHA that is a high performer may receive a PHAS assessment
every 3 years;
(2) A small PHA that is a standard or
substandard performer may receive a
PHAS assessment every other year;
and
(3) All other small PHAs may receive
a PHAS assessment every year, including a PHA that is designated as troubled or Capital Fund-troubled in accordance with § 902.75.
(b) Frequency of scoring for PHAs with
250 units or more. (1) All PHAs, other
than stated in paragraph (a) of this section, may be assessed on an annual
basis.

§ 902.20

(2) The physical condition score for
each project will determine the frequency of inspections of each project.
For projects with a physical condition
score of 90 points or higher, physical
inspections will be conducted every 3
years at the project. For projects with
a physical condition score of less than
90 points but at least 80 points, physical inspection will be conducted every
2 years at the project. The physical
condition score of 80 points or higher
will be carried over to the next assessment period and averaged with the
other
project
physical
condition
score(s) for the next assessment year
for an overall PHAS physical condition
indicator score. For projects whose
physical condition score for a project is
less than 80 points, physical inspections will be conducted annually at the
project.
(3) If a PHA is designated as a troubled performer, all projects will receive
a physical condition inspection regardless of the individual project physical
condition score.
(4) In the baseline year, every PHA
will receive an overall PHAS score and
in all four of the PHAS indicators:
Physical condition; financial condition; management operations; and Capital Fund program. This will allow a
baseline for the physical condition inspections and the 3–2–1 inspection
schedule, as well as a baseline year for
the small deregulated PHAs.
(c) Financial submissions. HUD shall
not issue a PHAS score for the
unaudited and audited financial information in the years that a PHA is not
being assessed under PHAS. Although
HUD shall not issue a PHAS score
under such circumstances, a PHA shall
comply with the requirements for submission of annual unaudited and audited financial statements in accordance with subpart C of this part and 24
CFR 5.801.

Subpart B—Physical Condition
Indicator
§ 902.20 Physical
ment.

condition

(a) Objective. The objective of the
physical condition indicator is to determine whether a PHA is meeting the

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§ 902.21

24 CFR Ch. IX (4–1–16 Edition)

standard of decent, safe, sanitary housing in good repair (DSS/GR), as this
standard is defined in 24 CFR 5.703.
(b) Method of assessment. The physical
condition assessment is based on an
independent physical inspection of a
PHA’s projects provided by HUD and
performed by contract inspectors, and
conducted using HUD’s Uniform Physical Condition Standards (UPCS) under
24 CFR part 5, subpart G.
(c) Method of transmission. After the
inspection is completed, the inspector
transmits the results to HUD, where
the results are verified for accuracy
and then scored in accordance with the
procedures in this subpart B.
(d) PHA physical inspection requirements. The physical inspections conducted under this part do not relieve
the PHA of the responsibility to inspect public housing units, as provided
in section 6(f)(3) of the Act (42 U.S.C.
1437d(f)(3)).
(e) Compliance with state and local
codes. The physical condition standards
in this part do not supersede or preempt state and local building and
maintenance codes with which the
PHA’s public housing must comply.
PHAs must continue to adhere to these
codes.
(f) HUD access to PHA projects. All
PHAs are required by the ACC to provide HUD or its representative with
full and free access to all facilities in
its projects. All PHAs are required to
provide HUD or its representative with
access to its projects and to all units
and appurtenances in order to permit
physical inspections, monitoring reviews, and quality assurance reviews
under this part. Access to the units
shall be provided whether or not the
resident is home or has installed additional locks for which the PHA did not
obtain keys. In the event that the PHA
fails to provide access as required by
HUD or its representative, the PHA
shall be given a physical condition
score of zero for the project or projects
involved. This score of zero shall be
used to calculate the physical condition indicator score and the overall
PHAS score.

§ 902.21 Physical condition standards
for public housing—decent, safe,
and sanitary housing in good repair
(DSS/GR).
(a) General. Public housing must be
maintained in a manner that meets the
physical condition standards set forth
in this part in order to be considered
DSS/GR (standards that constitute acceptable basic housing conditions).
These standards address the major
physical areas of public housing: Site,
building exterior, building systems,
dwelling units, and common areas (see
paragraph (b) of this section). These
standards also identify health and safety considerations (see paragraph (c) of
this section). These standards address
acceptable basic housing conditions,
not the adornment, de´cor, or other cosmetic appearance of the housing.
(b) Major inspectable areas. (1) Site.
The site includes the components and
must meet the requirements of 24 CFR
5.703(a).
(2) Building exterior. The building exterior includes the components and
must meet the standards stated in 24
CFR 5.703(b).
(3) Building systems. The building’s
systems include components such as
domestic water, electrical system, elevators, emergency power, fire protection,
heating/ventilation/air
conditioning (HVAC), and sanitary system.
Each building’s systems must meet the
standards of 24 CFR 5.703(c).
(4) Dwelling units. Each dwelling unit
within a building must meet the standards of 24 CFR 5.703(d).
(5) Common areas. Each common area
must meet the standards of 24 CFR
5.703(e).
(c) Health and safety concerns. All
areas and components of the housing
must be free of health and safety hazards, as provided in 24 CFR 5.703(f).
§ 902.22 Physical inspection of PHA
projects.
(a) The inspection, generally. The
PHA’s score for the physical condition
indicator is based on an independent
physical
inspection
of
a
PHA’s
project(s) provided by HUD and using
HUD’s Uniform Physical Condition
Standard (UPCS) inspection protocols
to ensure projects meet DSS/GR standards that constitute acceptable basic

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Asst. Secry., for Public and Indian Housing, HUD
housing
conditions.
Mixed-finance
projects will be subject to the physical
condition inspections.
(b) Pursuant to § 902.13(a), PHAs with
less than 250 public housing units will
receive a PHAS assessment, based on
their PHAS designation, as follows:
(1) A small PHA that is a high performer will receive a PHAS assessment
every 3 years;
(2) A small PHA that is a standard or
substandard performer will receive a
PHAS assessment every other year;
and
(3) All other small PHAs will receive
a PHAS assessment every year, including a PHA that is designated as troubled or Capital Fund-troubled in accordance with § 902.75.
(c) In the baseline year, every PHA
will receive an overall PHAS score and
in all four of the PHAS indicators:
Physical condition; financial condition; management operations; and Capital Fund program. This will allow a
baseline score to be established for the
physical condition inspections and the
3–2–1 inspection schedule, as well as a
baseline year for the small deregulated
PHAs.
(d) Physical inspection under the PHAS
physical condition indicator. (1) To
achieve the objective of paragraph (a)
of this section, HUD will provide for an
independent physical inspection of a
PHA’s project(s) that includes, at a
minimum, a statistically valid sample
of the units in the PHA’s projects, to
determine the extent of compliance
with the DSS/GR standard.
(2) Only occupied units will be inspected as dwelling units (except units
approved by HUD for nondwelling purposes, e.g., daycare or meeting rooms,
which are inspected as common areas).
Vacant units that are not under lease
at the time of the physical inspection
will not be inspected. The categories of
vacant units not under lease that are
exempted from physical inspection are
as follows:
(i) Units undergoing vacant unit
turnaround—vacant units that are in
the routine process of turnover; i.e.,
the period between which one resident
has vacated a unit and a new lease
takes effect;
(ii) Units undergoing rehabilitation—
vacant units that have substantial re-

§ 902.22

habilitation needs already identified,
and there is an approved implementation plan to address the identified rehabilitation needs and the plan is fully
funded;
(iii) Offline units—vacant units that
have repair requirements such that the
units cannot be occupied in a normal
period of time (considered to be between 5 and 7 days) and which are not
included under an approved rehabilitation plan.
(e) Observed deficiencies. During the
physical inspection of a project, an inspector looks for deficiencies for each
inspectable item within the inspectable
areas, such as holes (deficiencies) in
the walls (item) of a dwelling unit
(area). The dwelling units inspected in
a project are a randomly selected, statistically valid sample of the units in
the project, excluding vacant units not
under lease at the time of the physical
inspection, as provided in paragraph
(d)(2) of this section.
(f) Exigent health and safety (EHS) deficiencies and health and safety (H&S)
deficiencies. (1) EHS deficiencies. To ensure prompt correction of EHS deficiencies, before leaving the site the inspector gives the project representative a Notification of Exigent and Fire
Safety Hazards Observed form that
calls for immediate attention or remedy. The project representative acknowledges receipt of the deficiency
report by signature. The project or
PHA shall correct, remedy, or act to
abate all EHS deficiencies cited in the
deficiency report within 24 contiguous
hours of the project representative’s
receipt of the Notification of Exigent
and Fire Safety Hazards Observed
form. In addition, the project or PHA
must certify to HUD within 3 business
days of the project representative’s receipt of the Notification of Exigent and
Fire Safety Hazards Observed form
that all EHS deficiencies were corrected, remedied, or acted upon to
abate within 24 continuous hours.
(2) H&S deficiencies. The project or
the PHA, or both, as appropriate, is required to expeditiously correct, remedy, or act to abate all H&S deficiencies after receipt of the Physical
Inspection Report.
(g) Compliance with civil rights/nondiscrimination requirements. Elements

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§ 902.24

24 CFR Ch. IX (4–1–16 Edition)

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related to accessibility will be reviewed during the physical inspection
to determine possible indications of
noncompliance with the Fair Housing
Act (42 U.S.C. 3601–3619) and section 504
of the Rehabilitation Act of 1973 (29
U.S.C. 794). A PHA will not be scored
on those elements. Any indication of
possible noncompliance will be referred
to HUD’s Office of Fair Housing and
Equal Opportunity.
§ 902.24 Database adjustment.
(a) Adjustments for factors not reflected
or inappropriately reflected in physical
condition score. Under circumstances
described in this section, HUD may determine it is appropriate to review the
results of a project’s physical inspection that are unusual or incorrect due
to facts and circumstances affecting
the PHA’s project that are not reflected in the inspection or that are reflected inappropriately in the inspection.
(1) The circumstances described in
this section are not the circumstances
that may be addressed by the technical
review process described in § 902.68. The
circumstances addressed in this paragraph (a)(1) of this section may include
inconsistencies between local code requirements and the HUD physical inspection protocol; conditions that are
permitted by local variance or license
or which are preexisting physical features that do not conform to, or are inconsistent with, HUD’s physical condition protocol; or the project or PHA
having been scored for elements (e.g.,
roads, sidewalks, mail boxes, residentowned appliances, etc.) that it does not
own and is not responsible for maintaining. To qualify for an adjustment
on this basis, the project or PHA must
have notified the proper authorities regarding the deficient element.
(2) An adjustment due to these circumstances may be initiated by a
project or PHA’s notification to the applicable HUD field office, and such notification shall include appropriate
proof of the reasons for the unusual or
incorrect result. Projects and PHAs
may submit the request for this adjustment either prior to or after the physical inspection has been concluded. If
the request is made after the conclusion of the physical inspection, the re-

quest must be made within 45 days of
issuance of the project’s or PHA’s
physical condition score. Based on the
recommendation of the applicable HUD
office following its review of the
project evidence or documentation submitted by the project or PHA, HUD
may determine that a reinspection and/
or rescoring of the project or PHA is
necessary.
(b) Adjustments for adverse conditions
beyond the control of the PHA. Under
certain circumstances, HUD may determine that certain deficiencies that adversely and significantly affect the
physical condition score of the project
were caused by circumstances beyond
the control of the PHA. The correction
of these conditions, however, remains
the responsibility of the PHA.
(1) The circumstances addressed by
this paragraph (b)(1) may include, but
are not limited to, damage caused by
third parties (such as a private entity
or public entity undertaking work near
a public housing project that results in
damage to the project) or natural disasters. The circumstances addressed in
this paragraph (b)(1) are not those addressed by the technical review process
in § 902.68.
(2) To adjust a physical condition
score based on circumstances addressed
in this paragraph, the PHA must submit a request to the applicable HUD
field office requesting a reinspection or
rescoring of the PHA’s project(s) dependent on the severity of the deficiency. The request must be submitted
within 45 days of the issuance of the
physical condition score to the PHA. If
the PHA is requesting a reinspection,
the request must be accompanied by a
certification that all deficiencies identified in the original report have been
corrected. Based on the recommendation of the applicable HUD office following its review of the project’s or
PHA’s evidence or documentation,
HUD may determine that a reinspection and rescoring of the PHA’s
project(s) is necessary.
(c) Adjustments for modernization work
in progress. HUD may determine that
occupied dwelling units or other areas
of a PHA’s project, which are subject

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to physical inspection under this subpart, and which are undergoing modernization work, require an adjustment
to the physical condition score.
(1) An occupied dwelling unit or
other areas of a PHA’s project undergoing modernization are subject to
physical inspection; the unit(s) and
other areas of the PHA’s project are
not exempt from physical inspection.
All elements of the unit or of the other
areas of the PHA’s project that are
subject to inspection and are not undergoing modernization at the time of
the inspection (even if modernization
is planned) will be subject to HUD’s
physical inspection protocol without
adjustment. For those elements of the
unit or of the project that are undergoing modernization, deficiencies will
be noted in accordance with HUD’s
physical inspection protocol, but the
project or PHA may request adjustment of the physical condition score as
a result of modernization work in
progress.
(2) An adjustment due to modernization work in progress may be initiated
by a project’s or PHA’s notification to
the applicable HUD field office, and the
notification shall include supporting
documentation of the modernization
work under way at the time of the
physical inspection. A project or PHA
may submit the request for this adjustment either prior to or after the physical inspection has been concluded. If
the request is made after the conclusion of the physical inspection, the request must be made within 45 days of
issuance of the physical condition
score. Based on the recommendation of
the applicable HUD office, HUD may
determine that a reinspection and rescoring of the PHA’s project(s) are necessary.
§ 902.25 Physical condition scoring
and thresholds.
(a) Scoring. Under the physical condition indicator, a score will be calculated for individual projects, as well
as for the overall condition of a PHA’s
public housing portfolio.
(b) Overall PHA physical condition indicator score. The overall physical condition indicator score is a unit-weighted average of project scores. The sum
of the unit-weighted values is divided

§ 902.26

by the total number of units in the
PHA’s portfolio to derive the overall
physical condition indicator score.
(c) Thresholds. (1) The project or
projects’ 100-point physical condition
score is converted to a 40-point basis
for the overall physical condition indicator score. The project scores on the
100-point basis are multiplied by .40 in
order to derive a 40-point equivalent
score to compute the overall physical
condition score and overall PHAS
score.
(2) In order to receive a passing score
under the physical condition indicator,
the PHA must achieve a score of at
least 24 points, or 60 percent.
(3) A PHA that receives fewer than 24
points will be categorized as a substandard physical condition agency.
§ 902.26 Physical Inspection Report.
(a) Following the physical inspection
of each project and the computation of
the score(s) under this subpart, the
PHA receives a Physical Inspection Report. The Physical Inspection Report
allows the PHA to see the points lost
by inspectable area, and the impact on
the score of the H&S and EHS deficiencies.
(1) If EHS items are identified in the
report, the PHA shall have the opportunity to correct, remedy, or act to
abate all EHS deficiencies and may request a reinspection.
(2) The request for reinspection must
be made within 45 days of the PHA’s receipt of the Physical Inspection Report. The request for reinspection must
be accompanied by the PHA’s identification of the EHS deficiencies that
have been corrected, remedied, or acted
upon to abate and by the PHA’s certification that all such deficiencies identified in the report have been corrected,
remedied, or acted upon to abate.
(3) If HUD determines that a reinspection is appropriate, it will arrange
for a complete reinspection of the
project(s) in question, not just the deficiencies previously identified. The reinspection will constitute the final
physical inspection for the project, and
HUD will issue a new inspection report
(the final inspection report).
(4) If any of the previously identified
EHS deficiencies that the PHA certified were corrected, remedied, or

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§ 902.30

24 CFR Ch. IX (4–1–16 Edition)

acted upon to abate are found during
the reinspection not to have been corrected, remedied, or acted upon to
abate, the score in the final inspection
report will reflect a point deduction of
triple the value of the original deduction, up to the maximum possible
points for the unit or area, and the
PHA must reimburse HUD for the cost
of the reinspection.
(5) If a request for reinspection is not
made within 45 days after the date that
the PHA receives the Physical Inspection Report, the Physical Inspection
Report issued to the PHA will be the
final Physical Inspection Report.
(b) A Physical Inspection Report includes the following items:
(1) Normalized weights as the ‘‘possible points’’ by area;
(2) The area scores, taking into account the points deducted for observed
deficiencies;
(3) The H&S (nonlife threatening) and
EHS (life threatening) deductions for
each of the five inspectable areas; a
listing of all observed smoke detector
deficiencies; and a projection of the
total number of H&S and EHS problems that the inspector potentially
would see in an inspection of all buildings and all units; and
(4) The overall project score.

Subpart C—Financial Condition
Indicator

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§ 902.30 Financial
ment.

condition

assess-

(a) Objective. The objective of the financial condition indicator is to measure the financial condition of each public housing project within a PHA’s public housing portfolio for the purpose of
evaluating whether there are sufficient
financial resources to support the provision of housing that is DSS/GR. Individual project scores for financial condition, as well as overall financial condition scores, will be issued.
(b) Financial reporting standards. A
PHA’s financial condition will be assessed under this indicator by measuring the combined performance of all
public housing projects in each of the
subindicators listed in § 902.35, on the
basis of the annual financial report
provided in accordance with § 902.33.

(c) Exclusions. Mixed-finance projects
are excluded from the financial condition indicator.
§ 902.33 Financial
ments.

reporting

(a) Annual financial report. All PHAs
must submit their unaudited and audited financial data to HUD on an annual basis. The financial information
must be:
(1) Prepared in accordance with Generally Accepted Accounting Principles
(GAAP), as further defined by HUD in
supplementary guidance; and
(2) Submitted electronically in the
format prescribed by HUD using the Financial Data Schedule (FDS).
(b) Annual unaudited financial information report filing dates. The unaudited
financial information to be submitted
to HUD in accordance with paragraph
(a) of this section must be submitted to
HUD annually, no later than 2 months
after the PHA’s fiscal year end, with no
penalty applying until the 16th day of
the 3rd month after the PHA’s fiscal
year end, in accordance with § 902.62.
(c) Annual audited financial information compliance dates. Audited financial
statements will be required no later
than 9 months after the PHA’s fiscal
year end, in accordance with the Single
Audit Act and 2 CFR part 200, subpart
F.
(d) Year-end audited financial information. All PHAs that meet the federal assistance threshold stated in the Single
Audit Act and 2 CFR part 200, subpart
F, must also submit year-end audited
financial information.
(e) Submission of information. In addition to the submission of information
required by paragraph (a) of this section, a PHA shall provide one copy of
the completed audit report package
and the Management Letter issued by
the Independent Auditor to the local
HUD field office having jurisdiction
over the PHA.
[76 FR 10149, Feb. 23, 2011, as amended at 80
FR 75941, Dec. 7, 2015]

§ 902.35 Financial condition
and thresholds.

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(a) Scoring. (1) Under the financial
condition indicator, a score will be calculated for each project based on the

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Asst. Secry., for Public and Indian Housing, HUD
values of financial condition subindicators and an overall financial condition
score, as well as audit and internal
control flags. Each financial condition
subindicator has several levels of performance, with different point values
for each level.
(2) The financial condition score for
projects will be based on the annual financial condition information submitted to HUD for each project under
24 CFR 990.280 and 990.285. The financial
condition score for PHAs will be based
on a unit-weighted average of project
scores.
(b) Subindicators of the financial condition indicator. The subindicators of financial condition indicator are:
(1) Quick Ratio (QR). The QR compares quick assets to current liabilities. Quick assets are cash and assets
that are easily convertible to cash and
do not include inventory. Current liabilities are those liabilities that are
due within the next 12 months. A QR of
less than one indicates that the
project’s ability to make payments on
a timely basis may be at risk.
(2) Months Expendable Net Assets Ratio
(MENAR). The MENAR measures a
project’s ability to operate using its
net available, unrestricted resources
without relying on additional funding.
This ratio compares the adjusted net
available unrestricted resources to the
average monthly operating expenses.
The result of this calculation shows
how many months of operating expenses can be covered with currently
available, unrestricted resources.
(3) Debt Service Coverage Ratio (DSCR).
The DSCR is the ratio of net operating
income available to make debt payments, to the amount of the debt payments. This subindicator is used if the
PHA has taken on long-term obligations. A DSCR of less than one would
indicate that the project would have
difficulty generating sufficient cash
flow to cover both its expenses and its
debt obligations.
(c) Overall PHA financial condition indicator score. The overall financial condition indicator score is a unit-weighted average of project scores. The sum
of the weighted values is then divided
by the total number of units in the
PHA’s portfolio to derive the overall financial condition indicator score.

§ 902.43

(d) Thresholds. (1) The PHA’s financial condition score is based on a maximum of 25 points.
(2) In order for a PHA to receive a
passing score under the financial condition indicator, the PHA must achieve a
score of at least 15 points, or 60 percent
of the available points under this indicator.
(3) A PHA that receives fewer than 15
points available under this indicator
will be categorized as a substandard financial condition agency.

Subpart D—Management
Operations Indicator
§ 902.40 Management operations assessment.
(a) Objective. The objective of the
management operations indicator is to
measure the PHA’s performance of
management operations through the
management performance of each
project.
(b) Exclusions. Mixed-finance projects
are excluded from the management operations indicator.
§ 902.43 Management operations performance standards.
(a) Management operations subindicators. The following subindicators listed
in this section will be used to assess
the management operations of projects
and PHAs, consistent with section
6(j)(1) of the Act (42 U.S.C. 1437d(j)(1)).
Individual project scores for management operations, as well as overall
PHA management operations scores,
will be issued.
(1) Occupancy. This subindicator
measures the occupancy for the
project’s fiscal year, adjusted for allowable vacancies.
(2) Tenant accounts receivable. This
subindicator measures the tenant accounts receivable of a project against
the tenant charges for the project’s fiscal year.
(3) Accounts payable. This subindicator measures the money that a
project owes to vendors at the end of
the project’s fiscal year for products
and services purchased on credit
against total operating expenses.
(b) Assessment under the Management
Operations Indicator. Projects will be
assessed under this indicator through

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§ 902.44

24 CFR Ch. IX (4–1–16 Edition)

information that is electronically submitted to HUD through the FDS.

culated by HUD and applied to all eligible projects.

§ 902.44 Adjustment for physical condition and neighborhood environment.

§ 902.45 Management operations scoring and thresholds.

(a) General. In accordance with section 6(j)(1)(I)(2) of the Act (42 U.S.C.
1437d(j)(1)(I)(2)), the overall management operations score for a project will
be adjusted upward to the extent that
negative conditions are caused by situations outside the control of the
project. These situations are related to
the poor physical condition of the
project or the overall depressed condition of the major census tract in which
a project is located. The intent of this
adjustment is to avoid penalizing such
projects, through appropriate application of the adjustment.
(b) Definitions. Definitions and application of physical condition and neighborhood environment factors are:
(1) Physical condition adjustment applies to projects at least 28 years old,
based on the unit-weighted average
Date of Full Availability (DOFA) date.
(2) Neighborhood environment adjustment applies to projects located in
census tracts where at least 40 percent
of the families have an income below
the poverty rate, as documented by the
most recent census data. If a project is
located in more than one census tract,
the census data for the census tract
where the majority of the project’s
units are located shall be used.
(c) Adjustment for physical condition
and neighborhood environment. HUD will
adjust the management operations
score of a project, subject to one or
both of the physical condition and
neighborhood environment conditions.
The adjustments will be made to the
overall management operations score
for each project so as to reflect the difficulty in managing the projects. In
each instance where the actual management operations score is rated
below the maximum score of 25 points,
one point each will be added for physical condition and neighborhood environment, but not to exceed the maximum number of 25 points available for
the management operations indicator.
(d) Application of adjustment. The adjustment for physical condition and
neighborhood environment will be cal-

(a) Scoring. Under the management
operations indicator, HUD will calculate a score for each project, as well
as for the overall management operations of a PHA, that reflects weights
based on the relative importance of the
individual management subindicators.
(b) Overall PHA management operations indicator score. The overall management operations indicator score is a
unit-weighted
average
of
project
scores. The sum of the weighted values
is divided by the total number of units
in the PHA’s portfolio to derive the
overall management operations indicator score.
(c) Thresholds. (1) The PHA’s management operations score is based on a
maximum of 25 points.
(2) In order to receive a passing score
under the management operations indicator, a PHA must achieve a score of at
least 15 points or 60 percent.
(3) A PHA that receives fewer than 15
points will be categorized as a substandard management operations agency.

Subpart E—Capital Fund Program
Indicator
§ 902.50 Capital Fund program assessment.
(a) Objective. The Capital Fund program indicator examines the period of
time taken by a PHA to obligate funds
and occupy units in relation to statutory deadlines for obligation for all
Capital Fund program grants for which
fund balances remain during the assessed fiscal year. Funds from the Capital Fund program under section 9(d) of
the Act (42 U.S.C. 1437g(d)) do not include HOPE VI program funds.
(b) Applicability. This indicator is applicable on a PHA-wide basis, and not
to individual projects. This indicator is
not applicable to PHAs that choose not
to participate in the Capital Fund program under section 9(d) of the Act.
(c) Capital Fund subindicators. The
subindicators pursuant to section 9(d)
of the Act are:

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Asst. Secry., for Public and Indian Housing, HUD
(1) Timeliness of fund obligation.
This subindicator examines the period
of time it takes for a PHA to obligate
funds from the Capital Fund program
under section 9(j)(1) of the 1937 Act (42
U.S.C. 1437g(9)(j)).
(2) Occupancy rate. This subindicator
measures the PHA’s occupancy rate as
of the end of the PHA’s fiscal year.
(d) Method of assessment. The assessment required under the Capital Fund
program indicator will be performed
through analysis of obligated amounts
in HUD’s eLOCCS (or its successor) for
all Capital Fund program grants that
were open during the assessed fiscal
year. This subindicator measures a
statutory requirement for the Capital
Fund program. Other aspects of the
Capital Fund program will be monitored by HUD through other types of
reviews, and in this indicator through
considering occupancy rates.
(1) PHAs are responsible to ensure
that their Capital Fund program information is submitted to eLOCCS by the
submission due date.
(2) A PHA may not appeal its PHAS
score, Capital Fund program score, or
both, based on the fact that it did not
submit its Capital Fund program information to eLOCCS and/or the PIC systems by the submission due date.
§ 902.53 Capital Fund program scoring
and thresholds.
(a) Scoring. The Capital Fund program indicator score provides an assessment of a PHA’s ability to obligate
Capital Fund program grants in a timely manner on capital and modernization needs.
(b) Thresholds. (1) The PHA’s Capital
Fund program score is based on a maximum of 10 points.
(2) In order to receive a passing score
under the Capital Fund program indicator, a PHA must achieve a score of at
least 5 points, or 50 percent.

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Subpart F—PHAS Scoring
§ 902.60 Data collection.
(a) Fiscal year reporting period—limitation on changes after PHAS effective date.
To allow for a period of consistent assessments to refine and make necessary adjustments to PHAS, a PHA is
not permitted to change its fiscal year

§ 902.60

for the first 3 full fiscal years following
the effective date of this regulation,
unless such change is approved by HUD
for good cause.
(b) Request for extension of time to submit unaudited financial information. In
the
event
of
extenuating
circumstances, a PHA may request extensions of time to submit its unaudited
financial information. To receive an
extension, a PHA must ensure that
HUD receives the extension request
electronically 15 days before the submission due date. The PHA’s electronic
extension request must include an objectively verifiable justification as to
why the PHA cannot submit the information by the submission due date.
PHAs shall submit their requests for
extensions of time for the submission
of unaudited financial information
through the FASS–PH Secure Systems
Web site. HUD shall forward its determination electronically to the requesting PHA.
(c) Request for waiver of due date for
PHA submission of audited financial information. (1) HUD, for good cause, may
grant PHAs a waiver of the due date of
the submission of audited financial information to HUD. HUD shall consider
written requests from PHAs for a waiver of the report submission due date
(established by the Single Audit Act
and 2 CFR part 200, subpart F, as no
later than 9 months after the end of
the fiscal year). The PHA’s written request for a waiver of the due date of
the submission of audited financial information must include an objectively
verifiable justification as to why the
PHA cannot submit the information by
the submission due date. A PHA shall
submit its written request for such a
waiver, 30 days prior to the submission
due date, to its local field office. HUD
shall forward its written determination
of the waiver request to the PHA and,
if appropriate, establish a new submission due date for the audited financial
information.
(2) A waiver of the due date for the
submission of audited financial information to HUD does not relieve a PHA
of its responsibility to submit its audited information to OMB’s Federal
Audit Clearinghouse no later than 9
months after the end of its fiscal year.

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§ 902.62

24 CFR Ch. IX (4–1–16 Edition)

(d) Rejected unaudited financial submissions. When HUD rejects a PHA’s
year-end unaudited financial information after the due date, a PHA shall
have 15 days from the date of the rejection to resubmit the information without a penalty being applied, in accordance with § 902.62.
(e) Late points and late presumptive
failure. Late points and late presumptive failure will only be applied to the
financial condition indicator since the
management operations information is
derived from the financial condition
submission.
(f) Score change. A management operations score can change as a result of
the audited submission since the management operations information is derived from the financial condition submission.

Lhorne on DSK30JT082PROD with CFR

[76 FR 10149, Feb. 23, 2011, as amended at 80
FR 75941, Dec. 7, 2015]

§ 902.62 Failure to submit data.
(a) Failure to submit data by due date.
(1) If a PHA without a finding of good
cause by HUD does not submit its yearend financial information, required by
this part, or submits its unaudited
year-end financial information more
than 15 days past the due date, appropriate sanctions may be imposed, including a reduction of one point in the
total PHAS score for each 15-day period past the due date.
(2) If the unaudited year-end financial information is not received within
3 months past the due date, or extended due date, the PHA will receive a
presumptive rating of failure for its
unaudited information and shall receive zero points for its unaudited financial information and the final financial condition indicator score. The
subsequent timely submission of audited information does not negate the
score of zero received for the unaudited
year-end financial information submission.
(3) The PHA’s audited financial statement must be received no later than 9
months after the PHA’s fiscal year-end,
in accordance with the Single Audit
Act and 2 CFR part 200, subpart F. If
the audited financial statement is not
received by that date, the PHA will receive a presumptive rating of failure
for the financial condition indicator.

(b) Verification of information submitted. (1) A PHA’s year-end financial
information and any supporting documentation are subject to review by an
independent auditor, as authorized by
section 6(j)(6) of the Act (42 U.S.C.
1437(d)(j)(6)). Appropriate sanctions for
intentional false certification will be
imposed, including civil penalties, suspension or debarment of the signatories, the loss of high performer designation, a lower score under the financial
condition indicator, and a lower overall
PHAS score.
(2) A PHA that cannot provide justifying documentation to HUD for the
assessment under any indicator(s) or
subindicator(s) shall receive a score of
zero for the relevant indicator(s) or
subindicator(s) and its overall PHAS
score shall be lowered accordingly.
(c) Failure to submit. If a PHA does
not submit its unaudited or audited information, it will receive a zero for
management operations.
[76 FR 10149, Feb. 23, 2011, as amended at 80
FR 75941, Dec. 7, 2015]

§ 902.64 PHAS scoring and audit reviews.
(a) Adjustments to PHAS score. (1) Adjustments to the score may be made
after a PHA’s audit report for the fiscal
year being assessed is transmitted to
HUD. If significant differences are
noted between unaudited and audited
results, a PHA’s PHAS score will be adjusted in accordance with the audited
results.
(2) A PHA’s PHAS score under individual indicators or subindicators, or
its overall PHAS score, may be
changed by HUD in accordance with
data included in the audit report or obtained through such sources as HUD
project management and other reviews,
investigations by HUD’s Office of Fair
Housing and Equal Opportunity, investigations or audits by HUD’s Office of
Inspector General, or reinspection by
HUD, as applicable.
(b) Issuance of a score by HUD. (1) An
overall PHAS score will be issued for
each PHA after the later of one month
after the submission due date for financial data or one month after submission by the PHA of its financial data.
The overall PHAS score becomes the

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Asst. Secry., for Public and Indian Housing, HUD
PHA’s final PHAS score after any adjustments requested by the PHA and
determined necessary under the processes provided in §§ 902.25(d), 902.35(a),
and 902.68; any adjustments resulting
from the appeal process provided in
§ 902.69; and any adjustments determined necessary as a result of the independent public accountant (IPA) audit.
(2) Each PHA (or RMC) shall post a
notice of its final PHAS score and designation in appropriate conspicuous
and accessible locations in its offices
within 2 weeks of receipt of its final
PHAS score and designation. In addition, HUD will post every PHA’s PHAS
score and designation on HUD’s Internet site.
(c) Review of audit. (1) Quality control
review. HUD may undertake a quality
control review of the audit work papers
or as part of the Department’s ongoing
quality assurance process.
(2) Determination of deficiency. If HUD
determines that the PHA’s financial
statements, electronic financial submission, or audit are deficient, it shall
notify the PHA of such determination
in writing. The PHA will have 30 days
in which to respond to the notice of deficiency and to establish that the determination is erroneous. Following
consideration of any PHA response,
HUD will issue a final determination in
writing to the PHA.
(i) Deficient financial statements. Deficient financial statements are statements that are not presented, in some
material respect, in accordance with
accounting principles generally accepted in the United States, as set forth by
the Government Accounting Standards
Board, or if applicable, the Financial
Accounting Standards Board.
(ii) Deficient electronic submission. A
deficient electronic financial submission is a filing that was not made, in
some material respect, in accordance
with HUD requirements or attested to
in accordance with the Standards for
Attestation Engagements issued by the
American Institute of Certified Public
Accountants or Generally Accepted
Government Auditing Standards.
(iii) Deficient audit. A deficient audit
is one that was not performed, in some
material respect, in compliance with
Generally Accepted Government Auditing Standards; Generally Accepted Au-

§ 902.66

diting Standards; the Single Audit Act
and 2 CFR part 200, subpart F, when applicable; or HUD requirements.
(3) HUD actions. If HUD determines
that the financial statements, electronic financial submission, or audit
are deficient, HUD may adjust the financial indicator score to zero and/or
reduce the overall PHAS score in accordance with the provisions of this
section. Additionally, if HUD determines that the audit is deficient, HUD
may, at its discretion, elect to serve as
the audit committee for the PHA for
the next fiscal year and select the
audit firm that will perform the audit
in question.
[76 FR 10149, Feb. 23, 2011, as amended at 80
FR 75942, Dec. 7, 2015]

§ 902.66 Withholding, denying, and rescinding designation.
(a) Withholding designation. In exceptional circumstances, even though a
PHA has satisfied all of the PHAS indicators for high performer or standard
performer designation, HUD may conduct any review as it may determine
necessary, and may deny or rescind incentives or high performer designation
or standard performer designation, in
the case of a PHA that:
(1) Is operating under a special agreement with HUD (e.g., a civil rights
compliance agreement);
(2) Is involved in litigation that bears
directly upon the physical, financial,
or management performance of a PHA;
(3) Is operating under a court order;
(4) Demonstrates substantial evidence of fraud or misconduct, including
evidence that the PHA’s certifications,
submitted in accordance with this part,
are not supported by the facts, as evidenced by such sources as a HUD review, routine reports, 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 of a
PHA’s required compliance with applicable laws and regulations, including
areas not assessed under PHAS. Areas
of substantial noncompliance include,
but are not limited to, noncompliance
with civil rights, nondiscrimination
and fair housing laws and regulations,

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§ 902.68

24 CFR Ch. IX (4–1–16 Edition)

or the ACC. Substantial noncompliance
casts doubt on the capacity of a PHA
to preserve and protect its public housing projects and operate them consistent with federal laws and regulations.
(b) High performer and standard designations. If a high performer designation is denied or rescinded, the PHA
shall be designated either a standard
performer, substandard performer, or
troubled performer, depending on the
nature and seriousness of the matter or
matters constituting the basis for
HUD’s action. If a standard performer
designation is denied or rescinded, the
PHA shall be designated as a substandard performer or troubled performer.
(c) Effect on score. The denial or rescission of a designation of high performer or standard performer shall not
affect the PHA’s numerical PHAS
score, except where the denial or rescission is under paragraph (a)(4) of
this section.

Lhorne on DSK30JT082PROD with CFR

§ 902.68 Technical review of results of
PHAS physical condition indicator.
(a) Request for technical reviews. This
section describes the process for requesting and granting technical reviews of physical inspection results.
(1) For these reviews, the burden of
proof is on the PHA to show that an
error occurred.
(2) A request for technical review
must be submitted in writing to the
Real Estate Assessment Center, Attention: TAC—Technical Review, 550 12th
Street, SW., Suite 100, Washington, DC
20410 and must be received by HUD no
later than 30 days following the
issuance of the applicable results to
the PHA.
(b) Technical review of results of physical inspection results. (1) For each
project inspected, the results of the
physical inspection and a score for that
project will be provided to the PHA. If
the PHA believes that an objectively
verifiable and material error(s) occurred in the inspection of an individual project, the PHA may request a
technical review of the inspection results for that project. Material errors
are the only grounds for technical review of physical inspection results.

(2) A PHA’s request for a technical
review must be accompanied by the
PHA’s evidence that an objectively
verifiable and material error(s) has occurred. The documentation submitted
by the PHA may be photographic evidence; written material from an objective source, such as a local fire marshal
or building code official or a licensed
or registered architect or professional
engineer with the authority to sign and
seal or ‘‘stamp’’ documents, thus taking the legal responsibility for them, or
other similar evidence that is specific
to the inspectable area and item being
challenged. The evidence must be more
than a disagreement with the inspector’s observations, or the inspector’s
finding regarding the severity of the
deficiency.
(3) A technical review of a project’s
physical inspection will not be conducted based on conditions that were
corrected subsequent to the inspection,
nor will a request for a technical review be considered if the request is
based on a challenge to the inspector’s
findings as to the severity of the deficiency (i.e., minor, major, or severe).
(4) Upon receipt of a PHA’s request
for technical review of a project’s inspection results, the PHA’s file will be
reviewed, including any objectively
verifiable evidence produced by the
PHA. If HUD’s review determines that
an objectively verifiable and material
error(s) has been documented, then one
or a combination of the following actions may be taken by HUD:
(i) Undertake a new inspection;
(ii) Correct the physical inspection
report;
(iii) Issue a corrected physical condition score; and
(iv) Issue a corrected PHAS score.
(5) In determining whether a new inspection of the project is warranted
and a new PHAS score must be issued,
the PHA’s file will be reviewed, including any evidence submitted, to determine whether the evidence supports
that there may have been a material
contractor error in the inspection that
results in a significant change from the
project’s original physical condition
score and the PHAS designation assigned to the PHA (i.e., high performer,
standard performer, substandard performer, or troubled performer). If HUD

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determines that a new inspection is
warranted, and the new inspection results in a significant change from the
original physical condition score, and
from the PHA’s PHAS score and PHAS
designation, the PHA shall be issued a
new PHAS score.
(6) Material errors are those that exhibit specific characteristics and meet
specific thresholds. The three types of
material errors are:
(i) Building data error. A building data
error occurs if the inspection includes
the wrong building or a building that
was not owned by the PHA, including
common or site areas that were not a
part of the project. Incorrect building
data that does not affect the score,
such as the address, building name,
year built, etc., would not be considered material, but will nonetheless be
corrected upon notice to HUD.
(ii) Unit count error. A unit count
error occurs if the total number of public housing units considered in scoring
is incorrect. Since scoring uses total
public housing units, HUD will examine instances where the participant can
provide evidence that the total units
used is incorrect.
(iii) Nonexistent deficiency error. A
nonexistent deficiency error occurs if
the inspection cites a deficiency that
does not exist.
(7) HUD’s decision on a request for
technical review is final and may not
be further appealed under the administrative process in § 902.69.
§ 902.69 PHA right of petition and appeal.
(a) Appeal of troubled performer designation and petition for removal of troubled performer designation. A PHA may
take any of the following actions:
(1) Appeal its troubled performer designation (including Capital Fund program troubled performer designation);
(2) Appeal its final overall PHAS
score;
(3) Petition for removal of troubled
performer designation;
(4) Appeal any refusal of a petition to
remove troubled performer designation; and
(5) Appeal actions under § 902.66.
(b) Appeal of PHAS score. (1) If a PHA
believes that an objectively verifiable
and material error(s) exists in any of

§ 902.69

the scores for its PHAS indicators,
which, if corrected, will result in a significant change in the PHA’s PHAS
score and its designation (i.e., as troubled performer, substandard performer,
standard performer, or high performer),
the PHA may appeal its PHAS score in
accordance with the procedures of
paragraphs (c), (d), and (e) of this section. A significant change in a PHAS
score is a change that would cause the
PHA’s PHAS score to increase, resulting in a higher PHAS designation for
the PHA (i.e., from troubled performer
to substandard performer or standard
performer, or from standard performer
to high performer).
(2) A PHA may not appeal its PHAS
score, physical condition score, or
both, based on the subsequent correction of deficiencies identified as a result of a project’s physical inspection
or the denial of a technical review request.
(3) A PHA may not appeal its PHAS
score, Capital Fund program score, or
both, based on the fact that it did not
submit its Capital Fund program information to eLOCCS by the submission
due date.
(c) Appeal and petition procedures. (1)
To appeal a troubled performer designation or a final overall PHAS score,
a PHA must submit a request in writing to the Deputy Assistant Secretary
of the Real Estate Assessment Center,
which must be received by HUD no
later than 30 days following the
issuance of the overall PHAS score to
the PHA. To petition the removal of a
troubled performer designation, a PHA
must submit its request in writing to
the Deputy Assistant Secretary of the
Real Estate Assessment Center.
(2) To appeal the denial of a petition
to remove a troubled performer designation, a PHA must submit a written
request to the Deputy Assistant Secretary of the Real Estate Assessment
Center, which must be received by HUD
no later than 30 days after HUD’s decision to refuse to remove the PHA’s
troubled performer designation.
(3) To appeal the petition for the removal of a troubled performer designation, or appeal the denial of a petition

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§ 902.71

24 CFR Ch. IX (4–1–16 Edition)

to remove a troubled performer designation, a PHA shall submit its request in writing to the Deputy Assistant Secretary of the Real Estate Assessment Center.
(4) An appeal of a troubled performer
designation, the petition for removal of
a troubled performer designation, or
the appeal of a refusal of a petition to
remove a troubled performer designation must include the PHA’s supporting documentation and reasons for
the appeal or petition. An appeal of a
PHAS score must be accompanied by
the PHA’s evidence that a material
error occurred. An appeal or petition
submitted to HUD without supporting
documentation will not be considered
and will be returned to the PHA.
(d) Denial, withholding, or rescission. A
PHA that disagrees with the basis for
denial, withholding, or rescission of its
designation under § 902.66 may make a
written request for reinstatement
within 30 days of notification by HUD
of the denial or rescission of the designation to the Assistant Secretary,
and the request shall include reasons
for the reinstatement.
(e) Consideration of petitions and appeals. (1) Consideration of a petition or
the appeal of a final overall PHAS
score, of a troubled performer designation, or of a petition to remove troubled performer designation. Upon receipt of such an appeal or a petition
from a PHA, HUD will evaluate the appeal and its merits for purposes of determining whether a reassessment of
the PHA is warranted. HUD will review
the PHA’s file and the evidence submitted by the PHA to determine
whether an error occurred.
(2) Consideration of an appeal of refusal to remove a troubled performer
designation. Upon receipt of an appeal
of refusal to remove a troubled performer designation, HUD will evaluate
the appeal and its merits for the purposes of determining whether a reassessment of the PHA is warranted. The
HUD staff initially evaluating an appeal of refusal to remove a troubled
performer designation will not be the
same HUD staff who evaluated the
PHA’s petition to remove the troubled
performer designation. The Assistant
Secretary will render the final determination of such an appeal.

(f) Notice and finality of decisions. (1) If
HUD determines that one or more objectively verifiable and material error
has occurred, HUD will undertake a
new inspection of the project, arrange
for audit services, adjust the PHA’s
score, or perform other reexamination
of the financial, management, or Capital Fund program information, as appropriate in light of the nature of the
error that occurred. A new score will
be issued and an appropriate performance designation made by HUD. HUD’s
decision on appeal of a PHAS score,
issuance of a troubled performer designation, or refusal to remove a troubled performer designation will be final
agency action. No reconsideration will
be given by HUD of such decisions.
(2) HUD will issue a written decision
on all appeals and petitions made
under this section.

Subpart G—PHAS Incentives and
Remedies
§ 902.71 Incentives
formers.

for

high

(a) Incentives for high performer PHAs.
A PHA that is designated a high performer will be eligible for the following
incentives, and such other incentives
that HUD may determine appropriate
and permissible under program statutes or regulations.
(1) Relief from specific HUD requirements. A PHA that is designated a high
performer will be relieved of specific
HUD requirements (e.g., will receive
fewer reviews and less monitoring), effective upon notification of a high performer designation.
(2) Public recognition. High performer
PHAs and RMCs that receive a score of
at least 60 percent of the points available for the physical condition, financial condition, and management operations indicators, and at least 50 percent of the points available for the
Capital Fund indicator, and achieve an
overall PHAS score of 90 percent or
greater of the total available points
under PHAS shall be designated a high
performer and will receive a Certificate
of Commendation from HUD, as well as
special public recognition, as provided
by the field office.

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Asst. Secry., for Public and Indian Housing, HUD
(3) Bonus points in funding competitions. A high performer PHA may be eligible for bonus points in HUD’s funding competitions, where such bonus
points are not restricted by statute or
regulation governing the funding program and are provided in the relevant
notice of funding availability.
(b) Compliance with applicable federal
laws and regulations. Relief from any
standard procedural requirement that
may be provided under this section
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 performer or standard
performer may be relieved of requirements for prior HUD approval for certain types of contracts for services, the
PHA must still comply with all other
federal and state requirements that remain in effect, such as those for competitive bidding or competitive negotiation (see 2 CFR 200.319, as applicable).
(c) Audits and reviews not relieved by
designation. A PHA designated as a
high performer or standard performer
remains subject to:
(1) Regular independent auditor audits;
(2) Office of Inspector General audits
or investigations as circumstances may
warrant; and
(3) Reviews identified by the regional
or field office in its current Risk Assessment of PHAs and projects.

Lhorne on DSK30JT082PROD with CFR

[76 FR 10149, Feb. 23, 2011, as amended at 80
FR 75942, Dec. 7, 2015]

§ 902.73 PHAs with deficiencies.
(a) Oversight and action. Standard and
substandard performers will be referred
to the field office for appropriate oversight and action.
(1) A standard performer that receives a total score of at least 60 percent shall be required to correct the deficiencies in performance within the
time period for correction, as stated in
§ 902.73(c). If the PHA fails to correct
the deficiencies, HUD may either require the PHA to enter into a Corrective Action Plan, or HUD may take
other action, as appropriate.
(2) A substandard performer, i.e., a
PHA that achieves a PHAS score of at
least 60 percent and achieves a score of

§ 902.73

less than 60 percent of the total points
available under one or more of the
physical condition, management operations, or financial condition PHAS indicators, shall be required to correct
the deficiencies in performance within
the time period for correction. If the
PHA fails to correct the deficiencies,
HUD may require the PHA to enter
into a Corrective Action Plan, or take
other action, as appropriate.
(3) A PHA with a project(s) that receives less than 60 percent of the points
available for the physical condition,
management operations, or financial
condition PHAS indicators, or less
than 50 percent of the points available
for the capital fund indicator, shall be
required to correct the deficiencies in
performance within the time period for
correction, as stated in § 902.73(b). If
the PHA fails to correct the deficiencies within the time period allowed, HUD may either require the
PHA to enter into a Corrective Action
Plan, or take other action, as appropriate.
(b) Correction of deficiencies. (1) Time
period for correction. After a PHA’s (or
DF–RMC’s) receipt of its final overall
PHAS score and designation as: A
standard performer, within the range
described in § 902.73(a)(1); or substandard performer, within the range
described in § 902.73(a)(2), or, in the case
of an RMC, after notification of its
score from a PHA, a PHA or RMC shall
correct any deficiency indicated in its
assessment within 90 days, or within
such period as provided in the HUD-executed Corrective Action Plan, if required.
(2) Notification and report to regional or
field office. A PHA shall notify the regional or field office of its action to
correct a deficiency. A PHA shall also
forward to the regional or field office
an RMC’s report of its action to correct
a deficiency. A DF–RMC shall forward
directly to the regional or field office
its report of its action to correct a deficiency.
(c) Failure to correct deficiencies. (1) If
a PHA (or DF–RMC or RMC) fails to
correct deficiencies within the time period noted in paragraph (b) of this section, or to correct deficiencies within
the time specified in a Corrective Action Plan, or within such extensions as

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24 CFR Ch. IX (4–1–16 Edition)

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may be granted by HUD, the field office
will notify the PHA of its noncompliance.
(2) The PHA (or DF–RMC or RMC)
will provide the field office with its
reasons for lack of progress in negotiating, executing, or carrying out the
Corrective Action Plan, within 30 days
of the PHA’s receipt of the noncompliance notification. HUD will advise the
PHA as to the acceptability of its reasons for lack of progress.
(3) If HUD finds the PHA’s (or DF–
RMC or RMC’s) reasons for lack of
progress unacceptable, HUD will notify
the PHA (or DF–RMC or RMC) that it
will take such actions as it may determine appropriate in accordance with
the provisions of the 1937 Act and other
statutes, the ACC, this part, and other
HUD regulations, including, but not
limited to, the remedies available for
substantial default.
§ 902.75 Troubled performers.
(a) General. Upon a PHA’s designation as a troubled performer, in accordance with the requirements of section
6(j)(2)(B) of the Act (42 U.S.C.
1437d(j)(2)(B)) and in accordance with
this part, HUD must notify the PHA
and shall refer each troubled performer
PHA to the PHA’s field office, or other
designated office(s) at HUD, for remedial action, oversight, and monitoring.
The actions to be taken by HUD and
the PHA will include statutorily required actions, and such other actions
as may be determined appropriate by
HUD.
(b) Memorandum of agreement (MOA).
Within 30 days of notification of a
PHA’s designation as a troubled performer, HUD will initiate activities to
negotiate and develop an MOA. An
MOA is required for a troubled performer. The final MOA is a binding
contractual agreement between HUD
and a PHA. The scope of the MOA may
vary depending upon the extent of the
problems present in the PHA. It shall
include, but not be limited to:
(1) Baseline data, which should be
data without adjustments or weighting
but may be the PHA’s score in each of
the PHAS indicators or subindicators
identified as a deficiency;
(2) Performance targets for such periods specified by HUD (e.g., annual,

semiannual,
quarterly,
monthly),
which may be the attainment of a
higher score within an indicator or
subindicator that is a problem, or the
description of a goal to be achieved;
(3) Strategies to be used by the PHA
in achieving the performance targets
within the time period of the MOA, including the identification of the party
responsible for the completion of each
task and for reporting progress;
(4) Technical assistance to the PHA
provided or facilitated by HUD; 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 a troubled
performer designation or troubled with
respect to the program for assistance
from the Capital Fund program under
section 9(d) of the Act (42 U.S.C.
1437g(d)) and HUD recognition for the
most-improved PHAs;
(7) The consequences of failing to
meet the targets, which include, but
are not limited to, the interventions
stated in 24 CFR part 907 and in section
6(j)(3) of the Act (42 U.S.C. 1437d(j)(3));
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 commitments of
support, financial or otherwise.
(c) PHA review of MOA. The PHA will
have 10 days to review the MOA. During this 10-day period, the PHA shall
resolve any claimed discrepancies in
the MOA with HUD, and discuss any
recommended changes and target dates
for improvement to be incorporated in

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Asst. Secry., for Public and Indian Housing, HUD
the final MOA. Unless the time period
is extended by HUD, the MOA is to be
executed 15 days following issuance of
the draft MOA.
(d) Maximum recovery period. (1) Expiration of the first-year improvement period. Upon the expiration of the oneyear period that started on the date on
which the PHA receives initial notice
of a troubled performer designation,
the PHA shall, by the next PHAS assessment that is at least 12 months
after the initial notice of the troubled
performer designation, improve its performance by at least 50 percent of the
difference between the initial PHAS assessment score that led to the troubled
performer status and the score necessary to remove the PHA’s designation as a troubled performer.
(2) Expiration of 2-year recovery period.
Upon the expiration of the 2-year period that started on the date on which
the PHA received the initial notice of a
troubled performer designation, the
PHA shall, by the next PHAS assessment that is at least 24 months after
the initial notice of the troubled performer designation, improve its performance and achieve an overall PHAS
score of at least 60 percent of the total
points available.
(e) Parties to the MOA. An MOA shall
be executed by:
(1) The PHA Board Chairperson (supported 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; and
(3) The field office
(f) Involvement of resident leadership in
the MOA. HUD encourages the inclusion of the resident leadership in the
execution of the MOA.
(g) Failure to execute MOA or make
substantial improvement under MOA. (1)
If a troubled performer PHA fails or refuses to execute an MOA within the period provided in paragraph (c) of this
section, or a troubled performer PHA
operating under an executed MOA does
not show a substantial improvement,
as provided in paragraph (d) of this sec-

§ 902.75

tion, toward a passing PHAS score following the issuance of the failing
PHAS score by HUD, the field office
shall refer the PHA to the Assistant
Secretary to determine such remedial
actions, consistent with the provisions
of the ACC and other HUD regulations,
including, but not limited to, remedies
available for substantial default.
(2) For purposes of paragraph (g) of
this section, substantial improvement
is defined as the improvement required
by paragraph (d) of this section. The
maximum period of time for remaining
in troubled performer status before
being referred to the Assistant Secretary is 2 years after the initial notification of the troubled performer designation. Therefore, the PHA must
make substantial improvement in each
year of this 2-year period.
(3) The following example illustrates
the provisions of paragraph (g)(1) of
this section:
Example: A PHA receives a score of 50
points on the physical condition, management operations, or financial condition
PHAS indicators; 60 points is a passing score.
Upon the expiration of the one-year period
that started on the date on which the PHA
received the initial notification of the troubled performer designation, the PHA must
achieve at least 55 points (50 percent of the
10 points necessary to achieve a passing
score of 60 points) to continue recovery efforts. In the second year, the PHA must
achieve a minimum score of 60 points (a
passing score). If, in the first year that started on the date on which the PHA received
the initial notification of the troubled designation, the PHA fails to achieve the 5point increase, or if the PHA achieves the 5
point increase within the first year that
started on the date on which the PHA received the initial notification of the troubled
designation, but fails to achieve the minimum passing score of 60 points after the second year after the initial notification, HUD
will notify the PHA that it will take such actions as it may determine appropriate in accordance with the provisions of the ACC and
other HUD regulations, including, but not
limited to, the remedies available for substantial default.

(h) Audit review. For a PHA designated as a troubled performer, HUD
may perform an audit review and may,
at its discretion, select the audit firm
that will perform the audit of the PHA;
and HUD may, at its discretion, serve
as the audit committee for the audit in
question.

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24 CFR Ch. IX (4–1–16 Edition)

(i) Continuation of services to residents.
To the extent feasible, while a PHA is
in a troubled performer status, all services to residents will continue uninterrupted.
§ 902.79 Verification and records.
All project and PHA certifications,
year-end financial information, and
supporting documentation are subject
to HUD verification at any time, including review by an independent auditor. All PHAs must retain supporting
documents for any certifications and
for asset management reviews for at
least 3 years. Failure to maintain and
provide supporting documentation for
a period of 3 years for any indicator(s),
subindicator(s), or other methods used
to assess performance shall result in a
score of zero for the indicator(s) or subindicator(s), and a lower overall PHAS
score for the applicable assessment period.

Lhorne on DSK30JT082PROD with CFR

§ 902.81 Resident petitions for remedial action.
Residents of a PHA designated as
troubled pursuant to section 6(j)(2)(A)
of the Act (42 U.S.C. 1437d(j)(2)(A)) may
petition HUD in writing to take one or
more of the actions referred to in section 6(j)(3)(A) of the Act (42 U.S.C.
1437d(j)(3)(A)). HUD will consider any
petition from a group of residents totaling at least 20 percent of the PHA’s
residents, or from an organization or
organizations of residents whose membership equals at least 20 percent of the
PHA’s residents. HUD shall respond to
such petitions in a timely manner with
a written description of the actions, if
any, HUD plans to take and, where applicable, the reasons why such actions
differ from the course proposed by the
residents. Nothing in this section shall
limit HUD’s discretion to determine
whether a substantial default has occurred or to select the appropriate
intervention upon such determination.
§ 902.83 Sanctions for troubled performer PHAs.
(a) If a troubled performer PHA fails
to make substantial improvement, as
set forth in § 902.75(d), HUD shall:
(1) In the case of a troubled performer PHA with 1,250 or more units,
declare substantial default in accord-

ance with § 907.3(b)(3) of this chapter
and petition for the appointment of a
receiver
pursuant
to
section
6(j)(3)(A)(ii) of the Act (42 U.S.C.
1437d(j)(3)(A)(ii)); or
(2) In the case of a troubled performer PHA with fewer than 1,250
units, declare substantial default in accordance with § 907.3(b)(3) of this chapter and either petition for the appointment of a receiver pursuant to section
6(j)(3)(A)(ii) of the Act (42 U.S.C.
1437d(j)(3)(A)(ii)), or take possession of
the PHA (including all or part of any
project or program of the PHA) pursuant to section 6(j)(3)(A)(iv) of the Act
(42 U.S.C. 1437d(j)(3)(A)(iv)), and appoint, on a competitive or noncompetitive basis, an individual or entity as an
administrative receiver to assume the
responsibilities of HUD for the administration of all or part of the PHA (including all or part of any project or
program of the PHA).
(3) In the case of substantial default
by a troubled performer PHA, nothing
in this section shall be construed to
limit the courses of action available to
HUD under this part, 24 CFR part 907,
or section 6(j)(3)(A) of the Act (42
U.S.C. 1437d(j)(3)(A)) for any other substantial default by a PHA.
(b) If a troubled performer PHA fails
to execute or meet the requirements of
an MOA in accordance with § 902.75,
other than as specified in paragraph (a)
of this section, the PHA may be
deemed to be in substantial default by
HUD and any remedy available therefore may be invoked in the discretion
of HUD.

PART 903—PUBLIC HOUSING
AGENCY PLANS
Sec.

Subpart A—Deconcentration of Poverty
903.1 What is the purpose of this subpart?
903.2 With respect to admissions, what must
a PHA do to deconcentrate poverty in its
developments?

Subpart B—PHA Plans and Fair Housing
Requirements
903.3 What is the purpose of this subpart?
903.4 What are the public housing agency
plans?

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