[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