[Federal Register Volume 64, Number 32 (Thursday, February 18, 1999)]
[Rules and Regulations]
[Pages 8170-8185]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-3651]
[[Page 8169]]
_______________________________________________________________________
Part II
Department of Housing and Urban Development
_______________________________________________________________________
24 CFR Part 903
Public Housing Agency Plans; Interim Rule
Federal Register / Vol. 64, No. 32 / Thursday, February 18, 1999 /
Rules and Regulations
[[Page 8170]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 903
[Docket No. FR-4420-I-01]
RIN 2577-AB89
Public Housing Agency Plans
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Interim rule.
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SUMMARY: This interim rule implements an important new component of
public housing and tenant-based assistance operations--the public
housing agency plans. Through these plans--a 5-year plan and an annual
plan--a public housing agency (PHA) will advise HUD, its residents and
members of the public of the PHA's mission for serving the needs of
low-income and very low-income families, and the PHA's strategy for
addressing those needs. The public housing agency plans constitute one
of several public housing reforms made by the Quality Housing and Work
Responsibility Act of 1998. This rule establishes initial procedures
and requirements for development, submission and implementation of the
plans.
DATES: Effective Date: March 22, 1999.
Comment Due Date: April 19, 1999.
ADDRESSES: Interested persons are invited to submit comments regarding
this interim rule to the Regulations Division, Office of General
Counsel, Room 10276, Department of Housing and Urban Development, 451
Seventh Street, SW, Washington, DC 20410. Communications should refer
to the above docket number and title. Facsimile (FAX) comments are not
acceptable. A copy of each communication submitted will be available
for public inspection and copying between 7:30 a.m. and 5:30 p.m.
weekdays at the above address.
FOR FURTHER INFORMATION CONTACT: For further information contact Rod
Solomon, Senior Director for Policy and Legislation, Office of Policy,
Program and Legislative Initiatives, Office of Public and Indian
Housing, Department of Housing and Urban Development, 451 Seventh
Street, SW, Room 4116, Washington, DC 20410; telephone (202) 708-0730
(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:
I. This Rulemaking
Section 511 of the Quality Housing and Work Responsibility Act of
1998 (Pub. L. 105-276, 112 Stat. 2461, approved October 21, 1998)
(QHWRA) requires that not later than 120 days after the date of
enactment of the QHWRA HUD shall issue an interim rule to require the
submission of an interim public housing agency plan. This interim rule
is issued in accordance with section 511.
Section 511, which added section 5A to the United States Housing
Act of 1937 (USHA), (42 U.S.C. 1437 et seq.) also requires that before
the final rule is issued, HUD will seek the recommendations on
implementation of the public housing plans from organizations
representing (1) State or local public housing agencies; (2) residents,
including resident management corporations; and (3) other appropriate
parties. Section 511 also requires HUD to convene not less than two
public forums at which the persons or organizations making
recommendations may express their views concerning the proposed
disposition of their recommendations.
In addition to the general solicitation of public comments on this
interim rule, HUD specifically seeks through this rulemaking
recommendations on implementation of the public housing agency plans
from the three groups mentioned above: (1) State or local public
housing agencies; (2) residents, including resident management
corporations; and (3) other appropriate parties. HUD believes that
other appropriate parties should include representatives of affected
communities. HUD will notify the public of the dates, times and
locations of the public forums. HUD therefore expects that this rule
will be clarified and improved as the rulemaking process progresses.
With the publication of this rule, however, PHAs should begin
preparing their plans for Fiscal Year 2000 (PHA fiscal years commencing
January 1, 2000 and thereafter).
II. Background
A. The Need for and Benefits of Comprehensive Planning by PHAs
The recently enacted QHWRA makes important changes to the
operations and programs of public housing and tenant-based assistance.
These changes are designed to revitalize and improve HUD's public
housing and tenant-based assistance programs. One of the most important
changes made by the QHWRA is the introduction of the public housing
agency plans--a 5-year plan and an annual plan. The 5-year plan
describes the mission of the PHA and the PHA's long range goals and
objectives for achieving its mission over the subsequent 5 years. The
annual plan provides details about the PHA's immediate operations,
program participants, programs and services, and the PHA's strategy for
handling operational concerns, residents' concerns and needs, programs
and services for the upcoming fiscal year. Both planning mechanisms
(the 5-year plan and the annual plan) require PHAs to examine their
existing operations and needs, and to design long-range and short-range
strategies to address those needs. Through this planning mechanism,
PHAs will make more efficient use of Federal assistance, more
effectively operate their programs, and better serve their residents.
Secretary Andrew Cuomo has long believed that greater efficiency
and effectiveness in the use of HUD assistance can be achieved by HUD
program participants when the participants engage in comprehensive
planning activities that allow them to examine the needs of the
individuals they serve, consult with interested and affected parties,
and design strategies to address those needs. In 1994, Secretary Cuomo,
then the Assistant Secretary for Community Planning and Development,
established the consolidated plan for community planning and
development programs (the ``Consolidated Plan'' was established by
final rule published on January 5, 1995, 60 FR 1878). The Consolidated
Plan combined the planning, application and reporting requirements of
several HUD community planning and development programs. Through the
Consolidated Plan, States and localities examine their needs and design
their own strategies to address those needs. This planning process
includes (1) the involvement of citizen participation in the planning
process, (2) the creation of an action plan that provides the basis for
the program participant to assess its performance; and (3) the
consultation with public and private agencies, including those outside
a single jurisdiction, to identify shared needs and solutions. (Note
that the Consolidated Plan includes an Analysis of Impediments to Fair
Housing Choice.) The Consolidated Plan establishes renewed partnerships
among HUD, State and local governments, public and private agencies,
tribal governments, and communities by empowering the entities and
individuals to work with one another, to work with HUD field staff, and
with other entities, to fashion
[[Page 8171]]
creative solutions to community problems.
The public housing agency plans embody, in many respects, the
concepts of HUD's Consolidated Plan. Like the Consolidated Plan for CPD
Programs, the public housing agency plans provide a planning mechanism
by which a PHA can examine its long-range needs and its short-range
needs, specifically the needs of the families that it serves, and
design both long-term strategies and short-term strategies for
addressing those needs. Like the Consolidated Plan, the public housing
agency plans involve consultation with affected groups in the
development of the plan.
The Consolidated Plan has been a highly successful mechanism for
comprehensive planning for community needs. HUD believes that the
public housing agency plans also will prove to be a successful
mechanism for comprehensive planning for the needs of those served by
PHAs.
B. Increased Flexibility, Local Accountability, Reduction in
Submissions
While the QHWRA contemplates a comprehensive planning process for
public housing and tenant-based assistance, and while the elements
listed for inclusion in the annual plan are extensive, the purposes of
the QHWRA emphasize deregulation, consolidation and flexibility for
PHAs. The QHWRA also authorizes HUD to allow submission of streamlined
plans by high-performing PHAs and small PHAs that are not designated as
troubled. The challenge for HUD and PHAs is how to fulfill these
purposes and still assure adequate local accountability by the PHA.
HUD's response to this challenge is that PHAs which are permitted to
submit streamlined plans must provide a reasonable means by which the
public can obtain any basic information that is not included in the
plans. For PHAs that are not eligible to submit streamlined plans, HUD
has strived in this first rule to keep the plan submission requirements
complete but simple. HUD is accepting references to any plan materials
that are already in existence and which already have been submitted to
HUD rather than require resubmissions of these materials to HUD. HUD,
however, also requires that while these materials need not be
resubmitted to HUD, PHAs must ensure local availability of the required
Plan components to their residents and members of the public.
In addition to moving toward increased flexibility and local
accountability, one of the goals of the PHA annual plan is to reduce
the number of PHA submissions to HUD. To the extent practicable, the
PHA annual plan will eventually consolidate all PHA information that is
required to be submitted under existing HUD planning and reporting
requirements into one document. The objective is for the PHA annual
plan to eventually supersede submission requirements currently imposed
on PHAs under various HUD programs. The elimination of all other
currently required submissions cannot be accomplished with this interim
rule. HUD is working, however, to phase out other submissions and
consolidate them as part of the annual plan, and certain submissions
will soon be folded into the annual plan submission, as described
below.
For example, HUD intends that the planning submissions required
under HUD's modernization program will be superseded by this new PHA
planning process commencing with modernization funds made available by
Congress for Federal Fiscal Year 2000. HUD will issue a separate notice
that provides PHAs with more information about how the modernization
program submissions are superseded by this new PHA planning process.
Another change brought about by the annual plan is in the submissions
and approval process for site-based waiting lists. As further discussed
below, PHAs will not need prior HUD approval to implement site-based
waiting lists, other than the approval provided under the annual plan.
Other submissions required of PHAs, for example those required under
HUD's Drug Elimination Program, are expected to be folded into the PHA
annual plan submission. Existing planning and reporting submissions
remain applicable, however, until HUD notifies PHAs (through this
interim rule or other means) that they have become part of the PHA
annual plan, and HUD establishes the new submission procedures.
In addition to consolidating other required submissions in the PHA
annual plan, HUD intends that the new public housing agency planning
process, to the extent practicable, will allow for a PHA to plan for
all of its program needs based on the PHA's fiscal year. Allowing a PHA
to plan for all of its programs based on a PHA's fiscal year will
assist PHAs in planning in a comprehensive manner and will expedite the
release of public housing funds. As discussed further below, HUD will
require the PHA annual plan to be submitted 75 days in advance of a
PHA's fiscal year. Since the first PHA fiscal years that will be funded
with Federal Fiscal Year (FFY) 2000 funds begin on January 1, 2000, the
first PHA annual plan (and 5-Year Plan) will be due 75 days before
January 1, 2000. PHA plans will be due thereafter to match the
commencement of PHA fiscal years, which are staggered on a quarterly
basis. In addition to the benefits to PHAs of this scheduling, receipt
of PHA plans on a quarterly schedule will assist HUD with its review
process, and allow HUD the opportunity to provide better feedback to a
PHA on its plan where such feedback is necessary.
HUD intends for the planning currently required under the
modernization program and Drug Elimination Grant Program to be placed
on the submission schedule for the PHA plans. Funding for these
programs will be provided by formula in the future. The QHWRA requires
all capital funds to be distributed by formula. This formula funding is
being developed through negotiated rulemaking. The QHWRA allows formula
funding for drug elimination funds. (Note that elsewhere in today's
Federal Register, HUD is publishing an Advance Notice of Proposed
Rulemaking on HUD's proposal to provide formula funding for Drug
Elimination Program grant funds.) To assure that capital funds are made
available to PHAs in a timely fashion, PHAs that are scheduled to
submit PHA plans in the second half of the Federal Fiscal Year (i.e.,
in April and July) may receive access to funds midway through the
Federal Fiscal Year for which funds are being distributed. PHAs may
receive access to these funds as long as they have submitted as part of
the previous year's Annual Plan a multi-year capital plan covering
activities to be undertaken in the coming year. To accommodate the
expedited schedule for release of capital funds, once the new capital
formula is established, HUD expects to determine formula shares based
on formula characteristics of a PHA 90 days earlier than has been the
case in the past (June 30 rather than September 30 of the preceding
fiscal year).
In addition to moving toward a reduction in administrative burden
through the consolidation of PHA required submissions in the PHA plan,
HUD, as part of the HUD 2020 Management Reform effort, is moving toward
electronic reporting for all required submissions under its programs.
HUD is aware that automated systems are being used more and more
extensively nationwide, including more extensive use by PHAs and other
entities that participate in HUD programs. Vice President Gore's Report
of the National Performance Review has,
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as a stated objective, the expanded use of new technologies and
telecommunications to create an electronic government (September 7,
1993, Report of the Vice President's National Performance Review, pp.
113-117, Reg. 2) To meet the Vice President's objective and HUD's own
objective to keep in step with modern technology, HUD already has
converted several required reporting submissions in both its public
housing programs and in its multifamily programs to electronic
submission. In addition to making submissions easier for its program
participants (paper reduction), electronic data assists HUD and its
program partners to exchange information more easily and to monitor
activity, note trends in programs and the performance of the program
participants (weaknesses and strengths) and better serve the families
and communities that HUD programs are designed to serve.
HUD specifically invites comments from PHAs on suggestions to
streamline or merge current information requirements already reported
electronically to HUD with the additional requirements listed in this
rule.
For these two new plans required by QHWRA, HUD is developing as
expeditiously as possible software that will allow for, and eventually
require, electronic submission of the PHA annual plan and 5-year plan.
This software will not be solely directed at facilitating electronic
submissions, through the internet or other means, but is anticipated to
provide recommended uniform formats and layouts for the submission of
information required by the 5-year plan and annual plan. The uniformity
of formats should make for easier reading by HUD, the PHAs, and most
importantly the public housing residents and the public, generally.
Until this software is developed and ready for use, PHAs should follow
the guidance for submission of plan information as provided in this
rule and through any additional guidance documents that HUD may issue.
As stated earlier, HUD's objective is that the planning process
contemplated by this new statutory requirement to develop Annual Plans
and 5-Year Plans will prove to be as successful a planning mechanism as
the Consolidated Plan. In this regard, HUD specifically solicits
comments from PHAs on the feasibility and importance of additional
steps to coordinate the 5-Year Plan and/or Annual Plan with the
submission of the Consolidated Plan either in whole or in part.
III. The Public Housing Agency Plans
Section 511 of the QHWRA provides for two types of plans to be
submitted by a PHA--a long range 5-year plan (5-Year Plan) that
describes the mission of the PHA and the PHA's goals and objectives for
achieving its mission over the next 5 years, and an annual plan (Annual
Plan) that provides more details about the PHA's current policies,
operations, programs and services.
As will be discussed further below, one of HUD's primary goals for
public housing and tenant-based assistance is ensuring compliance with
all applicable nondiscrimination requirements, such as the Fair Housing
Act, title VI of the Civil Rights Act of 1964, section 504 of the
Rehabilitation Act of 1937, and title II of the Americans with
Disabilities Act, as well as affirmatively furthering fair housing.
This goal remains and is more clearly specified by the QHWRA's PHA plan
requirements as well as by other amendments made by the QHWRA to the
USHA.
A. The 5-Year Plan
1. What the QHWRA Requires
Section 511 of the QHWRA requires that a PHA must submit to HUD a
5-year plan that provides a statement of:
--The PHA's mission for serving the needs of low-income and very low-
income families in the PHA's jurisdiction during the next 5 fiscal
years; and
--The PHA's goals and objectives that will enable the PHA to serve the
needs of the low-income and very low-income families as identified by
the PHA for the next 5 fiscal years.
Section 511 provides that the 5-Year Plan must cover a period of 5
PHA fiscal years that follow the date that the PHA submits its 5-Year
Plan to HUD. For example, if a PHA's fiscal year runs January 1st to
December 31st, the due date for the submissions of the plans by the PHA
is no later than 75 days before January 1st. For a PHA with a fiscal
year beginning January 1st, the 5 years covered by the 5-Year Plan will
be the 5 fiscal years beginning January 1, 2000, January 1, 2001,
January 1, 2002, January 1, 2003, and January 1, 2004.
The first 5-Year Plan will be due at the same time as the first PHA
Annual Plan. Subsequent 5-Year Plans will be due to HUD once every 5
years. PHAs will not be required to submit an annual update to the 5-
Year Plan, but PHAs will be required to explain any substantial
deviations from the 5-Year Plan in their Annual Plans. After submission
of the first 5-Year Plan, PHAs in their succeeding 5-Year Plans, in
addition to addressing their mission, goals and objectives for the next
5 years, must address the progress made by the PHA in meeting its goals
and objectives described in the previous 5-Year Plan.
With respect to substantial deviations, HUD believes that this
refers to a change in a PHA's mission or change in a goal or objective
to meet that mission. HUD specifically solicits comment on how
``substantial deviations'' should be defined.
2. An Acceptable 5-Year Plan
In reviewing a PHA's 5-Year Plans, HUD believes that a PHA's
mission, goals and objectives should be consistent with and contribute
to HUD's mission and goals and objectives, which also overlay almost
all HUD programs. HUD's mission is to promote adequate and affordable
housing, economic opportunity, and a suitable living environment
without discrimination. HUD's strategic goals that are applicable to
PHAs are (1) increasing the availability of decent, safe and affordable
housing in American communities; (2) ensuring equal opportunity in
housing for all Americans; (3) promoting self-sufficiency and asset
development of families and individuals; and (4) improving community
quality of life and economic vitality.
In establishing goals and objectives, PHAs must set quantifiable
ones, where possible. For example, a goal of providing decent, safe and
sanitary housing can be measured partly by a PHA's physical inspection
score under the Public Housing Assessment System. The goal of promoting
economic self-sufficiency can be measured by PHA residents that no
longer require assistance because of welfare-to-work or similar
initiatives. Additional examples of quantifiable measures and more
information on HUD's mission, goals and objectives can be found in HUD
Fiscal Year 2000 Annual Performance Plan, located at HUD's web site
(http//www.hud.gov).
HUD specifically seeks comments on what constitutes an acceptable
5-Year Plan.
B. The Annual Plan Pertaining to Section 8 Assistance, Capital Funds,
and Annual Contributions for Operation of Lower Income Housing Projects
The second plan required by Section 511 of the QHWRA is an Annual
Plan that the PHA must submit for each year for which the PHA receives
assistance under section 8(o) or section 9 of the USHA. Section 511
provides for 18 components of the Annual Plan. The content of each
component and HUD's
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permitted form of submission of each component is discussed in Section
IV of this preamble, which follows.
IV. The Annual Plan
A. Statutory Contents of the Annual Plan, Generally, and HUD Guidance
on Submissions
Section 511 specifies the information that must be included in the
Annual Plan for the fiscal year for which the PHA receives assistance
under section 8(o) or section 9 of the USHA. The statutory components
of the Annual Plan are fully provided in the regulatory text of this
interim rule. This section of the preamble does not repeat the complete
statutory language or the regulatory text language, but rather provides
a brief summary of the statutorily required contents for each
component. Therefore, it is important for the reader to review the
regulatory text, as well as this preamble, for a full description of
what is required for the Annual Plan. It is also important for the
reader to note that the information that the PHA must submit for HUD
approval under the Annual Plan are the discretionary policies of the
various plan components or elements (for example, selection policies)
and not the statutory or regulatory requirements that govern these
components.
This section of the preamble also includes HUD guidance on how the
information for Annual Plan components may be compiled and submitted.
HUD guidance includes using or referencing materials that PHAs already
may have compiled or are in the process of compiling under current
program planning and reporting requirements. Where these materials are
used or referenced, the PHA must clearly identify the source of the
materials, and must clearly identify for the public where these
materials can be obtained or inspected. The submission guidance
provided in this rulemaking is primarily for the first Annual Plan
submission or at most for the first two years. HUD anticipates that the
comments submitted on this rule, and the recommendations made at the
public forums, will assist HUD in developing more long-term guidance on
submissions to be made under the Annual Plan. At the final rule stage
or in a future rulemaking, HUD may not only provide guidance but may
prescribe the information that must be submitted to satisfy the
statutory and regulatory requirements and may prescribe the format of
submission. Before taking this action, HUD wants the benefit of public
comment and the recommendations from the three groups identified in
section 511 of the QHWRA.
HUD specifically invites comment on the manner of submission of the
information required under the Annual Plan.
For those components of the Annual Plan for which the PHA has no
submission (for example, if the PHA has no projects targeted for
demolition or disposition), the PHA must state in its Annual Plan the
reason that this component is not addressed (again, in the example
provided, a simple statement that no projects are targeted for
demolition/disposition). Each component of the Annual Plan that is
required to be addressed must be addressed in some fashion.
Additionally, HUD points out that certain PHA activities, such as
demolition, disposition, conversion to vouchers, designation, and
public housing homeownership programs, have separate submission and
approval processes as well as specific HUD review and approval periods.
These processes remain in place and are not superseded by the Annual
Plan. As noted earlier, however, PHAs may submit relevant approval
documents and other materials relating to these separate processes
along with the Annual Plan if these materials are clearly identified as
being part of one of these separate processes.
In providing an overview of the statutory components of the Annual
Plan as well as HUD's submission guidance in this section of the
preamble, the reader should note that the components of the Annual Plan
apply to both public housing and Section 8 tenant-based assistance,
except where specifically stated otherwise.
1. Housing Needs. What the QHWRA Requires. A statement of the
housing needs of the low-income and very-low income families (including
elderly families and families with disabilities) in the jurisdiction
served by the PHA and on the PHA's waiting list.
HUD notes that it has specified two categories of families--
extremely low-income families (i.e., families with incomes below 30
percent of the area median) and households of various races and ethnic
groups--within categories of families listed by the QHWRA. (Please see
Sec. 903.7(a)(1) of regulatory text.) HUD added the extremely low-
income family category because (1) the needs of extremely low-income
families are specifically addressed in the local consolidated plans
with which PHA plans (5-Year and Annual) must be in compliance; and (2)
the QHWRA targets housing assistance to extremely low-income families.
HUD added the breakdown by racial and ethic groups because such
breakdown is consistent with a PHA's civil rights obligations under
section 511.
Submission Guidance. PHAs may obtain this information from the
Consolidated Plan for their jurisdiction if the Consolidated Plan
accurately describes their housing needs. Rather than restate the
Consolidated Plan's housing needs statement, the PHA may submit any
applicable portions of the Consolidated Plan. The information about
needs of families on waiting lists must of course come from the PHA's
analysis of the waiting list.
PHAs which are not in a city or county with its own Consolidated
Plan may include in their submissions any applicable portions of the
Consolidated Plan for the State. PHAs whose jurisdictions encompass
more than one Consolidated Plan jurisdiction may include portions of
all applicable Consolidated Plans. These PHAs also will need to examine
their waiting lists to specify the housing needs arising from families
on the waiting list.
Whether or not a PHA includes an applicable portion of a
Consolidated Plan for this component of the Annual Plan, the PHA's
statement of housing needs must be consistent with the needs described
in the Consolidated Plan for the jurisdictions served by the PHA. The
statute requires consistency with the Consolidated Plan.
2. Financial Resources. What the QHWRA Requires. A statement of the
financial resources available to the PHA and the planned uses of those
resources.
Submission Guidance. PHAs should provide a statement of: (a) The
estimated financial resources available for the support of the Federal
public housing and tenant-based assistance programs administered by the
PHA during the plan year; and (b) the planned use of available
resources in support of these programs. The statement of resources
available should include the sources of funds supporting each federal
program, including current federal grants, prior year grant funds,
dwelling rental income, any other sources of non-grant income
(including donations, leveraged funds, entrepreneurial, program, or
investment income), and reserves. The planned uses of these resources
should be displayed by major category of activity including: public
housing operations, public housing modernization and/or development,
section 8 payments to owners, anti-crime and security activities;
services to assisted families; and program administration.
[[Page 8174]]
3. Policies Governing Eligibility, Selection, Admissions. What the
QHWRA Requires. A statement of: (a) the PHA's policies governing
eligibility, selection and admission (including any admission
preferences), assignment, and occupancy policies with respect to public
housing and Section 8 tenant-based assistance, as applicable, and (b)
procedures for maintaining waiting lists, including the public housing
admissions policy for deconcentration of lower-income families and any
public housing site-based waiting list procedures.
Submission Guidance. PHA admissions policies, occupancy policies,
and waiting lists policies are currently required by existing
regulations and the requirements to adopt and maintain these policies
have not been repealed. With respect to the information required by
this component of the Annual Plan, PHAs need not submit these policies
with their Annual Plan if they already have been submitted and approved
by HUD (for example, the Tenant Selection and Assignment Plan). In this
case, however, PHAs must identify in the Annual Plan the policies that
have been submitted and approved. Additionally, if there have been any
changes or additions to these policies since HUD approval of these
policies, the PHA must submit the changes or additions. Where the
changed or additional policies are contained in existing PHA documents,
the PHA may excerpt and include relevant portions of those documents as
part of this component. For tenant-based assistance, PHAs must include
those applicable portions of the Section 8 Administrative Plan. Please
see discussion in Section IV.C of this preamble for submission guidance
regarding admissions policies related to deconcentration of poverty and
site-based waiting lists.
Applicability. The policies governing eligibility, selection and
admissions and waiting list administration is applicable to public
housing and tenant-based assistance, except for the information
requested on site-based waiting lists and deconcentration. This
information is applicable only to public housing.
4. Rent Determination. What the QHWRA Requires. A statement of the
discretionary policies of the PHA that govern rents charged for public
housing units, including flat rents, and rental contributions of
families assisted under section 8(o) of the USHA.
Submission Guidance. For this component of the Annual Plan, PHAs
should submit the listing of minimum rents, flat rents and any
discretionary rent policies not mandated by statute. For tenant-based
assistance, PHAs should submit minimum rent and payment standard
policies.
5. Operation and Management. What the QHWRA Requires. A statement
of the PHA's rules, standards, and policies governing maintenance and
management of the housing owned, assisted, or operated by the PHA, and
management of the agency and programs of the agency.
Submission Guidance. PHAs should submit a list of their basic
rules, standards and policies governing maintenance and management of
public housing, and management of the PHA and the programs administered
by the PHA. PHAs also should identify where the rules, standards and
policies are maintained and may be reviewed, specifically including
measures necessary for the prevention or eradication of pest
infestation. With respect to tenant-based assistance programs, PHAs
should list the programs, the number of households assisted, and the
estimated number of units becoming available annually.
Applicability. The list of PHA rules, standards and policies
regarding management and maintenance of housing applies only to public
housing. Information about PHA management, standards and policies, and
the programs administered by the agency, however, applies to public
housing and tenant-based assistance.
6. Grievance Procedures. What the QHWRA Requires. A statement of
the grievance procedures that the PHA makes available to their
residents.
Submission Guidance. PHA grievance procedures and informal review
and hearing procedures for tenant-based assistance are currently
required by existing regulations and the regulatory requirements to
provide these policies have not been repealed. Submission of these
procedures (including any procedures affecting public housing and
tenant-based assistance applicants) satisfies this component of the
Annual Plan.
7. Capital Improvements. What the QHWRA Requires. With respect to
public housing projects owned, assisted, or operated by the PHA, the
PHA's plan describing the capital improvements necessary to ensure
long-term physical and social viability of the projects.
Submission Guidance. PHAs should submit a list of its capital
projects and the estimates of costs. Alternatively, in at least the
first year of implementation, an update of the Comprehensive Grant Plan
forms will satisfy this component of the Annual Plan. With respect to
the capital improvement plans, PHAs may submit 5-Year Plans and update
them annually. This is good management practice and this will allow
PHAs to have HUD-approved spending items for future years, as is the
case now under the annual statements for the Comprehensive Grant
Program.
Applicability. This section is applicable only to public housing.
8. Demolition and/or Disposition. What the QHWRA Requires. A
description of any public housing project owned by the PHA for which
the PHA will apply for demolition and/or disposition approval and the
timetable for demolition and/or disposition.
Submission Guidance. PHAs that already have submitted or have
prepared demolition or disposition requests in accordance with the
applicable law, regulations or notices may submit these requests, if
not already submitted, or may reference a request already submitted. If
already submitted, the PHA should advise of the date of submission. If
no request has been prepared or submitted, the PHA should identify any
project or portion of a project targeted for demolition/disposition and
the PHA's estimated timetable for this activity. The description of
targeted demolition/disposition in the Annual Plan should include the
timetable for submission of the demolition/disposition application.
Applicability. This section is applicable only to public housing.
9. Designation of Public Housing for Elderly Families or Families
with Disabilities or Elderly Families and Families with Disabilities.
What the QHWRA Requires. Identification of any public housing projects
owned, assisted, or operated by the PHA, or any portion of these
projects, that the PHA has designated, or plans to designate, for
occupancy only by elderly families, or only by families with
disabilities, or for elderly families and families with disabilities.
Submission Guidance. The option to designate public housing for
elderly families, or families with disabilities, or for elderly
families and families with disabilities was authorized by section
622(a) of the Housing and Community Development Act of 1992 (Pub. L.
102-550, approved October 28, 1992, 106 Stat. 3672, 3813), which
amended section 7 of the USHA. Section 7 was amended a second time by
section 10 of the Housing Opportunity Program Extension Act of 1996
(Pub. L. 104-120, approved March 28, 1996), and this more recent
statute establishes the current requirements for designation. These
requirements are provided in PIH Notice 98-24.
For this component of the Annual Plan, the PHA should follow the
same
[[Page 8175]]
submission procedure allowed for the demolition/disposition component
of the Annual Plan. PHAs that already have submitted or have prepared
designation plans in accordance with current HUD procedures, may submit
their designations plans, if not already submitted, or may reference a
plan already submitted. If a designation plan already has been
submitted, the PHA should advise of the date of submission. If no
designation plan has been prepared or submitted, the PHA should
identify any project or portion of a project targeted for designation
and the PHA's estimated timetable for this activity.
Applicability. This section is only applicable to public housing.
10. Conversion of Public Housing. What the QHWRA Requires. A
description of any building or buildings that the PHA is required to
convert, or voluntarily plans to convert to tenant-based assistance,
and both an analysis of the projects or buildings required to be
converted and a statement of the amount of assistance received that is
to be used for rental assistance or other housing assistance in
connection with the conversion.
Submission Guidance. HUD will be issuing a rule in the near future
on voluntary conversions. Until that rule has been issued for effect,
PHAs are not required to address the subject of voluntary conversions.
For mandatory conversions, until a rule is issued on changes under the
QHWRA, PHAs should submit a list of projects or portions of projects
identified by the PHA or HUD as covered by section 202 of the FY 1996
HUD Appropriations Act (42 U.S.C. 14371 note) and the status of such
projects or portions of projects covered by section 202.
Applicability. This section is applicable to public housing and
only that tenant-based assistance which is to be included in a
conversion plan.
11. Homeownership. What the QHWRA Requires. A description of any
homeownership programs administered by the PHA under section 8(y) of
the USHA, or any homeownership programs for which the PHA has applied
or will apply to administer under new section 32 of the USHA (added by
section 536 of the QHWRA), once that section is implemented.
Submission Guidance. PHAs should describe any homeownership
programs previously approved or proposed for approval under the Public
Housing 5(h) Ownership program, or the HOPE I Homeownership Program, or
section 32, or which they will administer under the section 8(y)
voucher homeownership program and should describe the basic elements of
these homeownership programs.
12. Community Service and Self-Sufficiency. What the QHWRA
Requires. A description of any community service and self-sufficiency
programs of the PHA, any policies or programs for the enhancement of
economic and social self-sufficiency of assisted families, and how the
PHA will comply with the requirements of section 12(c) and (d) of the
USHA, as added by the QHWRA.
Submission Guidance. PHAs should list and briefly describe any
programs coordinated, promoted, or provided, including program size and
means of allocating assistance to households. This includes any
activities under programs such as Family Self-Sufficiency (including
required and actual program size), Section 3 (Section 3 of the Housing
and Urban Development Act of 1968), activities funded by HUD under the
Economic Development Supportive Services Program (EDSS) and other
similar programs. In addition, PHAs must address how they will comply
with section 12(d) of the USHA which addresses treatment of income
changes resulting from welfare program requirements. Until rulemaking
is completed for section 12(c) the USHA (which relates to community
service), PHAs are not required to address this aspect of the community
service and self-sufficiency component.
Applicability. This section is applicable to both public housing
and tenant-based assistance except that the information regarding the
PHA's compliance with the community service requirement applies only to
public housing.
13. Safety and Crime Prevention. What the QHWRA Requires. The PHA's
plan for safety and crime prevention to ensure the safety of the
residents that it serves, that is developed in consultation with local
law enforcement.
Submission Guidance. For this component, PHAs may describe any
plans or measures directed toward safety and crime prevention of a
PHA's residents as required by the QHWRA, and include any materials
required to be included for participation in the Public Housing Drug
Elimination Program (once new regulations for the program are issued).
Please see Section IV.F. of this preamble for further discussion about
forthcoming HUD regulations to implement section 586 of the QHWRA which
makes changes to HUD's Public Housing Drug Elimination Program.
Applicability. This section only applies to public housing.
14. Ownership of Pets in Public Housing. What the QHWRA Requires. A
statement of the PHA's policies and requirements pertaining to the
ownership of pets in public housing issued in accordance with section
31 of the USHA.
Submission Guidance. HUD's regulations in 24 CFR part 5, subpart C,
specify the current statutory requirements governing household pets in
public and assisted housing for elderly families and families with
disabilities, and allow PHAs to establish rules governing the keeping
of household pets in these projects. The existing statute and
regulations, however, are limited to projects for elderly families and
families with disabilities. Additionally, the existing regulations are
not applicable to animals that are used to assist persons with
disabilities.
Section 526 of the QHWRA amends the USHA to add a new section 31
that provides conditions for ownership of household pets in public
housing projects other than those for elderly families and families
with disabilities. Section 526, however, requires HUD to implement this
new section through proposed and final rulemaking. Until HUD issues
these new regulations for effect, PHAs are not required to submit this
component of the Annual Plan.
Applicability. This section only applies to public housing.
15. Civil Rights Certification. What the QHWRA requires. A
certification by the PHA that it will carry out its plan in conformity
with all applicable civil rights requirements and will affirmatively
further fair housing.
Submission Guidance. The civil rights certification of the QHWRA is
a critical component of the Annual Plan and must be submitted. The
certification is twofold: that the PHA will carry out its plan in
compliance with all applicable civil rights requirements and that the
PHA will affirmatively further fair housing. Additionally, the
certification is not only applicable to a PHA's Annual Plan but also to
its 5-Year Plan.
16. Most Recent Fiscal Year Audit. What the QHWRA Requires. The
results of the most recent fiscal year audit of the PHA conducted under
section 5(h)(2) of the USHA.
Submission Guidance. This information will be obtained by HUD's
Real Estate Assessment Center (REAC) beginning June 30, 2000 (for PHAs
with fiscal years ending September 30, 1999 and after) through its
financial assessment subsystem (FASS). For audits prior to June 30,
2000, HUD Field Offices will either have a copy of a PHA's most recent
audit, or will obtain a copy from the OMB Clearinghouse. Accordingly,
since this information is
[[Page 8176]]
already in HUD's possession, PHAs are not required to make a separate
submission of this component of the Annual Plan. As with any other
Annual Plan component for which information is in the possession of the
PHA (as well as HUD) but which is not required to be submitted to HUD
as part of the Annual Plan, PHAs must provide a reasonable means by
which the public may obtain or review this information.
17. Asset Management. What the QHWRA Requires. A statement of how
the PHA will carry out its asset management functions with respect to
the PHA's public housing inventory, including how the PHA will plan for
long-term operating, capital investment, rehabilitation, modernization,
disposition and other needs for such inventory. This statement also
should address the PHA's strategy for managing its assets with respect
to tenant-based assistance.
Submission Guidance. PHAs should submit a general statement
explaining how they will deploy physical, financial and other assets to
fulfill their mission, goals and objectives, to the extent that this
information is not already addressed in other components of the Annual
or 5-Year Plan.
18. Other Information--Table of Contents, Executive Summary and
Progress Report. The QHWRA authorizes HUD to require submission of any
other relevant information. The rule provides for three specific
submissions.
First, a table of contents that corresponds to the Annual Plan's
components in the order listed in the rule must be submitted. The table
of contents also must identify the location of any materials that are
not being submitted with the Annual Plan (for example, if REAC has the
financial information required, the table of contents would note this
and the date submitted to REAC.)
Second, an executive summary must be submitted which provides a
brief overview of the information that the PHA is submitting in its
Annual Plan and relates the Annual Plan programs and activities to the
PHA's mission and the goals, as described in the 5-Year Plan. The
executive summary also must explain any substantial deviation of these
activities from the 5-Year Plan.
Third, for all Annual Plans following submission of the first
Annual Plan, a brief summary must be included of the PHA's progress in
meeting the mission and goals described in the 5-Year Plan.
HUD specifically solicits comments on these items that HUD has
added to the Annual Plan submission and seeks recommendations on any
other items that should be included.
B. What Constitute Acceptable Plans
An acceptable and approvable Annual Plan or 5-Year Plan is one that
addresses all subjects required to be addressed by the statute and
regulations, and contains all required information and meets the
applicable statutory and regulatory requirements. Failure to submit a
plan by the deadline, failure to submit information required by the
plan, or failure of the information provided to meet the Plan
requirements may result in HUD's disapproval of plan, in whole or in
part, and may result in action by HUD that it determines to be an
appropriate response to the PHA's failure to submit the plan or
information required by the plan. This action may include withholding
of funding.
C. Certain Components of the Admissions Policy Submission
1. Deconcentration of Poverty and Income-Mixing in Public Housing
Section 513 of the QHWRA makes several amendments to section 16
with respect to deconcentration of poverty and income targeting,
effective immediately. HUD's Notice of Initial Guidance on the QHWRA,
published elsewhere in today's Federal Register, and which addresses
those provisions of the QHWRA which are effective immediately, provides
further guidance on the initial requirements for the new
deconcentration provisions.
The Annual Plan's required submission on the PHA's policies
governing eligibility, selection and admissions includes the PHA's
description of its admissions policy. This admissions policy must be
designed to provide for deconcentration of poverty and income-mixing by
bringing higher income tenants into lower income projects and lower
income tenants into higher income projects.
A PHA may offer incentives to eligible families that would help
accomplish the deconcentration and income-mixing objectives. In
addition, skipping of a family on a waiting list specifically to reach
another family with a lower or higher income is permissible, provided
that such skipping is uniformly applied. Skipping families is
consistent with site-based waiting lists. Such skipping must be adopted
by a PHA if necessary to implement an admissions policy that
effectively meets the statute's requirements. Admissions policies
relating to deconcentration do not impose specific quotas. In adopting
deconcentration and income-targeting provisions, Congress recognized
that significant income disparities may occur both in the income levels
of public housing developments and in the income levels of the
neighborhoods in which the public housing developments are located
(income levels for neighborhoods are approximate income levels based on
census tract information).
To effectively develop an admissions policy that encourages
deconcentration of poverty and income-mixing, PHAs should analyze
expeditiously their public housing stock and tenant incomes. PHAs must:
(1) determine and compare the relative tenant incomes of each
development and the incomes of census tracts in which the developments
are located, and (2) consider what policies, measures or incentives are
necessary to bring higher income families into lower income
developments (or, if appropriate to achieve the deconcentration of
poverty, into developments in lower income census tracts) and lower-
income families into higher-income projects (or if appropriate to
achieve the deconcentration of poverty, into developments in higher
income census tracts). PHA policies must devote appropriate attention
to both of these goals.
PHAs may consider a number of approaches as they examine designing
an admissions policy to achieve the goals of deconcentration and
income-mixing, such as the use of skipping over certain families on
waiting lists based on incomes; the establishment of certain
preferences such as worker preferences; appropriate affirmative
marketing efforts; additional applicant consultation and information;
provision of additional supportive services and amenities; and rent
incentives authorized by the QHWRA. PHAs with relatively few units or
projects should comply with deconcentration and income-mixing
requirements by adopting any necessary changes in their admissions
policies based on their circumstances, taking into account current
tenant populations, applicant populations and housing resources. Of
course, PHA policies must be in writing and followed consistently, and
must affirmatively further fair housing. It is not permissible to
achieve deconcentration and income-mixing for developments as a whole,
but with unacceptable disparities between areas or buildings within
developments.
2. Site-Based Waiting Lists
This interim rule implements the QHWRA's authorization for PHAs to
adopt and implement site-based waiting
[[Page 8177]]
lists under certain conditions (as specified in section 525 of the
QHWRA) and the statute's directive that PHAs can do this
notwithstanding any law, regulation, notice or handbook to the
contrary, except that applicable civil rights laws apply. In addition,
the QHWRA states that each applicant shall benefit from full disclosure
by the PHA of any options available to the applicant with respect to
the selection of developments.
The Senate Committee Report on the QHWRA, which provides, with
respect to legislative history, the most detailed statement on site-
based waiting lists, cites several of the possible benefits of site-
based waiting lists, but also acknowledges that past HUD limitations on
site-based waiting lists were based on concern about racial steering
and a desire to prevent housing discrimination. The Senate Committee
anticipated that PHAs will assure that all applicants are aware of
their rights under fair housing and civil rights laws, and encouraged
HUD to monitor implementation so that steering does not occur.
HUD interprets this legislative history to mean that PHAs should be
allowed to implement site-based waiting lists once PHA Annual Plans
proposing site-based lists are approved by HUD, and that every
reasonable action should be taken by PHAs to assure that applicants can
make informed choices and that the programs are carefully monitored.
This interim rule allows for implementation of site-based waiting lists
in this fashion and specifies the necessary protections. All PHAs that
request a site-based waiting list as part of their PHA Plan admissions
policies (including those PHAs presently using site-based waiting lists
and which wish to continue to do so) must meet the thresholds described
in the regulation. To ensure that a plan proposing a site-based waiting
list is consistent with the civil rights laws, regulations and
certifications, HUD will determine whether any significant changes in
the levels of racial and ethnic composition occur as a result of the
implementation of the site-based waiting list, and whether any pattern
or practice of discrimination exists.
Some PHAs may wish to implement site-based waiting lists before
approval of their initial PHA Annual Plans, as an integral part of the
implementation of admissions policies to promote deconcentration of
poverty in public housing or to achieve other plan objectives. If so,
PHAs may follow current procedures for requesting HUD approval. HUD
will take into account the standards established by this interim rule
when reviewing any such request for approval.
3. Admissions Policy and Civil Rights Requirements
The QHWRA includes a statutory requirement that PHA annual plans
include civil rights certifications and these responsibilities are a
fundamental objective of the annual plan. To do so, PHAs should develop
admissions policies to achieve greater housing choice and opportunity
on a non-discriminatory basis at each of their sites, for both tenants
and applicants, and annually conduct the analysis to satisfy the
elements of their civil rights certifications.
D. Additional Plan Information for Troubled PHAs and PHAs at Risk of
Being Designated Troubled
Section 511 of the QHWRA provides that the Secretary may require
any additional information in the PHA's Annual Plan that the Secretary
determines to be appropriate for each PHA that (1) is at risk of being
designated as troubled under section 6(j)(2) of the USHA, or (2) is
designated as troubled under section 6(j)(2). To these categories, HUD
includes a PHA that is at risk of being designated as troubled or is
designated as troubled under HUD's new Public Housing Assessment System
(24 CFR part 901).
Certain additional information that is important to the PHA's
progress in recovery from troubled status or near-troubled status will
be available through HUD's Troubled Agency Recovery Center (TARC). The
TARCs, part of the HUD 2020 Management Reform effort, were established
to assist PHAs designated as troubled to reach improved performance
through the development and implementation of sustainable solutions.
The TARC works with a PHA to develop and implement an intervention
strategy to help raise the PHA's level of performance. The PHA reports
to the TARC and the TARC monitors the PHA's performance. To the extent
that HUD can obtain additional information on troubled PHAs through the
TARC it will do so to reduce duplication of submissions. HUD, however,
retains the authority provided by the QHWRA to request any additional
information from a troubled PHA for the PHA Annual Plan that HUD
determines is appropriate, and may not be available at the TARC. A
troubled PHA must make available locally (to its residents and members
of the public) its memorandum of agreement and operating budgets in
addition to other materials required by this interim rule. For PHAs at
risk of being designated troubled and that are not being monitored by
the TARC, HUD may request additional information for the PHA Annual
Plan similar to that information which is required of troubled PHAs by
the TARC.
E. Streamlined Annual Plan for Certain PHAs
Section 511 also provides that the Secretary may establish a
streamlined plan for:
--PHAs that are determined to be high performing PHAs;
--PHAs with less than 250 public housing units (small PHAs) and that
have not been designated as troubled under section 6(j)(2) of the USHA;
and
--PHAs that only administer tenant-based assistance and that do not own
or operate public housing.
In this interim rule, HUD exercises this authority to allow
streamlined plans for high performing PHAs, nontroubled small PHAs, and
PHAs that only administer Section 8 tenant-based assistance. HUD
generally will exempt these categories of PHAs from submitting elements
of the Annual Plan which (1) simply reflect good management practice,
or compliance with regulatory requirements and therefore not
discretionary policies (for example, operation and management
practices; grievance procedures); (2) are inapplicable to a PHA's
operations (notably with respect to a PHA's administration of Section 8
tenant-based assistance); or (3) require HUD approval before the PHA
may take action and also require Board of Commissioners approval (for
example, designation plans, public housing homeownership programs, and
conversion to vouchers). As noted above, PHAs are urged to fully inform
their assistance recipients and the public generally, of PHA policies
that exist but are exempt from submission, and must indicate how the
public may receive more information about these policies in a
reasonable fashion.
F. Interim Plan for Demolition/Disposition
Interim Plan for Demolition/Disposition. Before submission of the
first Annual Plan, PHAs may submit an interim PHA Annual Plan solely
with respect to demolition/disposition. The interim plan must provide
the required description of the action to be taken, include a
certification of consistency with the Consolidated Plan, and confirm
that a public hearing was held on the proposed action and that the
resident advisory board was consulted. If a resident advisory board has
not yet been
[[Page 8178]]
formed, the PHA may seek a waiver of the requirement to consult with
the resident advisory board on the grounds that organizations that
adequately represent residents for this purpose were consulted. The
actual application for demolition or disposition could be submitted at
the same time or at a later date.
G. The Resident Advisory Board: Establishment and Consultation
To assist PHAs in the development of their annual plans, section
511 of the QHWRA provides for the establishment of a Resident Advisory
Board. The QHWRA provides that each PHA must establish one or more
Resident Advisory Boards, and the membership on the board or boards
must adequately reflect and represent the residents assisted by the
PHA.
The purpose of the Resident Advisory Board is to assist the PHA and
make recommendations regarding the development of the Annual Plan. The
PHA must consider the recommendations of the Resident Advisory Board or
Boards in preparing the final Annual Plan, and, in submitting the final
plan to HUD for approval, the PHA must include a copy of the
recommendations made by the Resident Advisory Board or Boards and a
description of the manner in which the PHA addressed these
recommendations.
HUD specifically will require PHAs to appoint as Resident Advisory
Boards jurisdiction-wide resident councils where they exist, or local
resident councils, that are in compliance with tenant participation
regulations (see 24 CFR part 964). PHAs will be required to encourage
tenants that are not represented by such resident councils to seek
representation on these councils in accordance with any applicable
tenant participation regulations. Section 8 tenant-based assistance
recipients also must be represented on resident councils because their
interests may be very different from those of public housing residents.
Although the QHWRA allows HUD to waive the resident advisory board
requirement where current organizations adequately represent residents,
HUD's strong preference is that PHAs appoint those organizations as
Resident Advisory Boards rather than seek waivers.
H. Consistency With the Consolidated Plan
Section 511 of the QHWRA provides that the PHA must ensure that its
Annual Plan is consistent with the Consolidated Plan for the
jurisdiction in which the PHA is located. PHAs whose jurisdictions
encompass more than one Consolidated Plan jurisdiction must ensure
consistency with any applicable Consolidated Plans. The Annual Plan
must contain a certification by the appropriate State or local
officials that the plan is consistent with the Consolidated Plan and
provide a description of the manner in which the applicable contents of
the Annual Plan are consistent with the Consolidated Plan. This
consistency requirement is applicable to both the 5-Year Plan and the
Annual Plan.
As part of fulfilling this requirement, the Annual Plan should also
be consistent with the local jurisdiction's Analysis of Impediments to
Fair Housing Choice (AI), which describes barriers to fair housing
choice and opportunity that affect, among others, public housing and
Section 8 tenants and applicants, and outlines actions to be taken to
address the impediments. Where impediments have been identified
relating to the administration of public housing and Section 8 tenant-
based assistance programs, the impediments must be addressed in the
PHA's Annual Plan, including any appropriate actions to be taken to
remove them.
V. Adoption, Submission, Amendments, and Review of the Plans
A. Public Information and Notice About the Plans
Section 511 of the QHWRA requires the board of directors or similar
governing body of the PHA to conduct a public hearing to discuss the
PHA plans and to invite public comment regarding the plans. The hearing
is to be conducted at a location that is convenient to the residents
served by the PHA. Section 511 also requires that not later than 45
days before the public hearing is to take place, the PHA must:
--Make the proposed PHA plan (either the 5-Year Plan or Annual Plan, or
both, as applicable) and all information relevant to the public hearing
to be conducted, available for inspection by the public at the
principal office of the PHA during normal business hours; and
--Publish a notice informing the public that the information is
available for review and inspection, and that a public hearing will
take place on the plan, and the date, time and location of the hearing.
Where practical, a PHA notice to the public should include
electronic posting on the internet. A PHA also should contact all
organizations and groups that the PHA believes are interested in the
operations, programs and services of the PHA (for example,
organizations that the PHA is aware have previously expressed interest)
and specifically seek their comments and recommendations on the Annual
Plan or 5-Year Plan or both, as applicable.
B. When 5-Year Plan and/or Annual Plan Are Ready for Submission to HUD
Section 511 of the QHWRA provides that a PHA may adopt its 5-Year
Plan and Annual Plan and submit the plans to HUD only after:
--The PHA has conducted the public hearing;
--The PHA has considered all public comments received on the plans;
--The PHA has made any changes to the plans, based on comments, in
consultation with the Resident Advisory Board or other resident
organization.
C. Submission of the 5-Year Plan and Annual Plan to HUD
Section 511 of the QHWRA provides that the first 5-Year Plan and
Annual Plan are to be submitted by the PHA beginning with the PHA
fiscal year in which the PHA first will receive Federal fiscal year
2000 funding under sections 8(o) or 9 of the USHA. After the first
Annual Plan is submitted, section 511 requires that not later than 75
days before the start of each succeeding fiscal year of the PHA, the
PHA shall annually submit to HUD a plan which may be an update,
including any amendments or modifications to any previous year's Annual
Plan.
D. Amendments and Modifications to the 5-Year Plan and Annual Plan
Section 511 of the QHWRA also provides that a PHA, after submitting
its 5-Year Plan or Annual Plan to HUD, may amend or modify any PHA
policy, rule, regulation or other aspect of the plans but provides that
significant amendments or modifications:
--May not be adopted until the PHA has duly called a meeting of its
board of directors (or similar governing body), the meeting is open to
the public, and the plan is adopted at the meeting; and
--May not be implemented until notification of the amendment or
modification is provided to HUD and approved by HUD in accordance with
HUD's plan review procedures, discussed in Section E below.
With respect to the 5-Year Plan, HUD believes that significant
amendments or modifications are those that make a change to the PHA's
mission, or the goals and objectives to enable the PHA to meet the
needs of the families that it
[[Page 8179]]
serves, or both. With respect to the Annual Plan, HUD believes that
significant amendments or modifications are those that make significant
changes to information provided by the PHA in its Annual Plan. For
example, the PHA's housing needs or its strategies for meeting those
needs has changed substantially, or the PHA has made substantial
changes to its planned use of financial resources.
HUD specifically seeks comments on what should constitute
``significant'' amendments or modifications to either the 5-Year Plan
or Annual Plan.
E. HUD's Review of the 5-Year Plan and Annual Plan, Determination of
Compliance and Approval and Disapproval
Review of the Plans. Upon submission by the PHA to HUD of the PHA's
plans, and any amendment or modification to the plans, HUD shall review
the plans and determine whether the contents of the plan:
--Provide the information that is required to be included;
--Are consistent with the information and data available to HUD and
with the Consolidated Plan for the jurisdiction in which the PHA is
located; and
--Are not prohibited by or inconsistent with the USHA or any other
applicable Federal law.
Disapproval. HUD may disapprove a PHA plan (5-Year Plan or Annual
Plan), in its entirety or in part, or may disapprove any amendment or
modification to the plan, only if HUD determines that the plan, or any
amendment or modification to the plan:
--Does not provide all the information that is required to be included
in the plan;
--Is not consistent with the information and data available to HUD or
with any applicable Consolidated Plan for the jurisdiction in which the
PHA is located; and
--Is not consistent with the USHA or other applicable Federal law.
Not later than 75 days after the date on which the PHA submits its
plan, or the date on which the PHA submits its amendment or
modification to the plan, HUD shall issue written notice to the PHA if
the plan or any part of the plan has been disapproved. The notice must
state with specificity the reasons for the disapproval. If HUD fails to
issue the notice of disapproval on or before the 75th day after the PHA
submits the plan, HUD shall be considered to have determined that all
components of the plan required to be submitted and that were
submitted, and reviewed by HUD were in compliance with applicable
requirements and the plan has been approved.
Public Availability of the Approved Plan. Once a PHA's plan has
been approved, a PHA must make its approved plan available for review
and inspection, at the principal office of the PHA during normal
business hours.
HUD specifically seeks comments on whether the final rule should
provide that a PHA must post notice in the developments owned, operated
or administered by the PHA that the plan has been approved and
information on where the plan may be inspected, and also whether the
PHA should post notice in a newspaper of general circulation that the
plan has been approved and information about where it may be inspected.
F. PHA's Compliance With the Plan
A PHA must comply with the policies, rules, and standards adopted
in the plan as approved by HUD. To ensure that a PHA is in compliance
with its plan, HUD shall respond appropriately to any complaint
concerning PHA noncompliance with its plan. HUD also may be informed of
a PHA's compliance with its plan through PHA reports on progress,
results of audits, performance evaluation scores and other means. If
HUD determines that a PHA is not in compliance with its plan, HUD will
take necessary and appropriate action to ensure compliance by the PHA.
G. The PHA Annual Plan as It Relates to Existing Regulations and the
Necessity for Conforming Regulatory Amendments
HUD also is aware that conforming amendments must be made to
existing regulations as a result of the changes made to the USHA by the
requirements of the PHA Plans as well as changes made to the USHA by
other QHWRA amendments. HUD anticipates making these conforming changes
at the final rule stage or through other rulemakings. HUD also may
decide that matters now covered by this preamble should be part of the
regulatory text. For example, an item that HUD recommended should be
submitted in the preamble submission guidance provided for a particular
component may be a required submission item at the final rule stage.
With this in mind, HUD specifically welcomes comments on whether
various described items in the submission guidance provided should or
should not be required submission items at the final rule stage.
VI. Issues on Which HUD Specifically Seeks Comment
HUD seeks comments on all aspects of this rulemaking. However,
throughout this preamble, HUD has specifically requested comment on
certain issues and questions. For the convenience of the reader, the
following restates those issues and questions, and adds an additional
question on the rule's organization.
1. The feasibility of combining the 5-Year Plan and/or Annual Plan
with the submission of the Consolidated Plan either in whole or in
part.
2. Ways to streamline or merge current information requirements
already reported electronically by PHAs to HUD with the additional
requirements listed in this rule.
3. How should the term ``substantial deviation'' be defined.
4. What constitutes an acceptable 5-Year Plan?
5. The manner of submission of the information required under the
Annual Plan.
6. HUD's addition of items to the Annual Plan submission and
whether commenters recommend any other items for inclusion.
7. What should constitute ``significant'' amendments or
modifications to either the 5-Year Plan or Annual Plan?
8. What methods should HUD use to encourage PHAs to utilize
metropolitan-wide strategies to increase the success of deconcentration
approaches.
9. Whether the final rule should provide that a PHA must post
notice in the projects owned, operated or administered by the PHA that
the plan has been approved and provide information on where the plan
may be inspected, and also whether the PHA should post notice in a
newspaper of general circulation that the plan has been approved and
information about its availability for review.
10. Whether any items in the submission guidance provided for the
Annual Plan should or should not remain required submission items at
the final rule stage.
11. Is the rule organized in a manner that is helpful and should
the rule include a definition section?
VII. Findings and Certifications
Justification for Interim Rule
It is the general practice of HUD to publish a rule for public
comment before issuing a rule for effect, in accordance with its
regulations in 24 CFR part 10. Section 511 of the Quality Housing and
Work Responsibility Act of 1998, however, specifically directs that
[[Page 8180]]
HUD issue this regulation as an interim rule.
Paperwork Reduction Act
The information collection requirements in this interim rule have
been submitted to the Office of Management and Budget (OMB) for review,
under section 3507(d) of the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35).
In accordance with 5 CFR 1320.5(a)(1)(iv), HUD estimates the total
reporting and recordkeeping burden that will result from the PHA Plans
are as provided under the caption ``Reporting Burden.'' As the preamble
to this rule has discussed, many of the PHA Plan items represent
existing reporting and recordkeeping requirements. Therefore the
reporting burden does not an entirely new reporting burden but instead
reflects the existing reporting burden which has been modified by the
PHA Plan requirements.
Reporting Burden
----------------------------------------------------------------------------------------------------------------
Freq. of Est. time
Number of respondents response (hours) Total (hrs.)
----------------------------------------------------------------------------------------------------------------
3,400........................................................ 1 104 hrs 353,600
Total Reporting Burden: 353,600.
----------------------------------------------------------------------------------------------------------------
In accordance with 5 CFR 1320.8(d)(1), the Department is soliciting
comments from members of the public and affected agencies concerning
the collection of information to:
(1) Evaluate whether the collection of information is necessary for
the proper performance of the functions of the agency, including
whether the information will have practical utility;
(2) Evaluate the accuracy of the agency's estimate of the burden of
the collection of information;
(3) Enhance the quality, utility, and clarity of the information to
be collected; and
(4) Minimize the burden of the collection of information on those
who are to respond; including through the use of appropriate automated
collection techniques or other forms of information technology, e.g.,
permitting electronic submission of responses.
Interested persons are invited to submit comments regarding the
information collection requirements in this rule. Under the provisions
of 5 CFR part 1320, OMB is required to make a decision concerning this
collection of information between 30 and 60 days after today's
publication date. Therefore, a comment on the information collection
requirements is best assured of having its full effect if OMB receives
the comment within 30 days of today's publication. This time frame does
not affect the deadline for comments to the agency on the rule,
however. Comments must refer to the rule by name and docket number (FR-
4420) and must be sent to:
Joseph F. Lackey, Jr., HUD Desk Officer, Office of Management and
Budget, New Executive Office Building, Washington, DC 20503
and
Mildred Hamman, Reports Liaison Officer, Department of Housing & Urban
Development, Office of Public and Indian Housing, Room 4238, 451
Seventh Street, SW, Washington, DC 20410
Executive Order 12866
This interim rule was reviewed by the Office of Management and
Budget (OMB) under Executive Order 12866, Regulatory Planning and
Review. OMB determined that this interim rule is a ``significant
regulatory action,'' as defined in section 3(f) of the Order (although
not economically significant under section (3)(f)(1) of the Order). Any
changes made to the interim rule subsequent to its submission to OMB
are clearly identified in the docket file, which is available for
public inspection in the office of the Department's Rules Docket Clerk,
Room 10276, 451 Seventh Street SW, Washington DC, 20410.
Regulatory Flexibility Act
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)), has reviewed and approved this interim rule, and in so
doing certifies that this rule does not have a significant economic
impact on a substantial number of small entities. This interim rule
implements, by statutory directive, a comprehensive planning system for
public housing agencies which also provides for consolidated statement
of PHA policies on various PHA operations and also provides a
consolidated reporting mechanism. The public housing agency plans
ultimately should minimize administrative burden on all PHAs, including
small PHAs, consistent with reasonable accountability. HUD is sensitive
to the fact, however, that the uniform application of requirements on
entities of differing sizes may place a disproportionate burden on
small entities. In this regard, the interim rule provides for
submission of a streamlined plan by small entities. HUD is soliciting
additional recommendations on how small PHAs might fulfill the purposes
of the rule (and the statutory requirements) in a way that is less
burdensome to them.
Executive Order 12612, Federalism
The General Counsel, as the Designated Official under section 6(a)
of Executive Order 12612, Federalism, has determined that this interim
rule would not have substantial direct effects on States or their
political subdivisions, or the relationship between the Federal
government and the States, or on the distribution of power and
responsibilities among the various levels of government. This rule
pertains solely to Federal assistance and no programmatic or policy
changes would result from this interim rule that affect the
relationship between the Federal Government and State and local
governments.
Environmental Impact
A Finding of No Significant Impact with respect to the environment
was made in accordance with HUD regulations in 24 CFR part 50 that
implement section 102(2)(C) of the National Environmental Policy Act of
1969 (42 U.S.C. 4223). The Finding is available for public inspection
between 7:30 a.m. and 5:30 p.m. weekdays in the Office of the Rules
Docket Clerk, Office of General Counsel, Room 10276, Department of
Housing and Urban Development, 451 7th Street, SW, Washington, DC
20410.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4; approved March 22, 1995) (UMRA) establishes requirements for Federal
agencies to assess the effects of their regulatory actions on State,
local, and tribal governments, and on the private sector. This rule
does not impose any Federal mandates on any State, local, or tribal
governments, or on the private
[[Page 8181]]
sector, within the meaning of the UMRA.
List of Subjects in 24 CFR Part 903
Administrative practice and procedure, Public housing, Reporting
and recordkeeping requirements.
Accordingly, for the reasons stated in the preamble, title 24 of
the CFR is amended by adding part 903 to read as follows:
PART 903--PUBLIC HOUSING AGENCY PLANS
Sec.
903.1 What are the public housing agency plans?
903.3 When must a PHA submit the plans to HUD?
903.5 What information must a PHA provide in the 5-Year Plan?
903.7 What information must a PHA provide in the Annual Plan?
903.9 Must a troubled PHA include additional information in its
Annual Plan?
903.11 Are certain PHAs eligible to submit a streamlined Annual
Plan?
903.13 What is a Resident Advisory Board and what is its role in
development of the Annual Plan?
903.15 What is the relationship of the public housing agency plans
to the Consolidated Plan?
903.17 Must the PHA make public the contents of the plans?
903.19 When is the 5-Year Plan or Annual Plan ready for submission
to HUD?
903.21 May the PHA amend or modify a plan?
903.23 What is the process by which HUD reviews, approves, or
disapproves an Annual Plan?
903.25 How does HUD ensure PHA compliance with its plans?
Authority: 42 U.S.C. 1437c; 42 U.S.C. 3535(d).
Sec. 903.1 What are the public housing agency plans?
(a) There are two public housing agency plans. They are:
(1) The 5-year plan (the 5-Year Plan) that a public housing agency
(PHA) must submit to HUD once every 5 PHA fiscal years; and
(2) The annual plan (Annual Plan) that the PHA must submit to HUD
for each fiscal year for which the PHA receives:
(i) Section 8 tenant-based assistance (section 8(o) of the U.S.
Housing Act of 1937, 42 U.S.C. 1437f(o)) (tenant-based assistance); or
(ii) Public housing operating subsidy or capital fund (section 9 of
the U.S. Housing Act of 1937 (42 U.S.C. 1437g) (public housing)).
(b) The purpose of the plans is to provide a framework for local
accountability and an easily identifiable source by which public
housing residents, participants in the tenant-based assistance program,
and other members of the public may locate basic PHA policies, rules
and requirements concerning its operations, programs and services.
(c) HUD may prescribe the format of submission (including
electronic format submission) of the plans. PHAs will receive
appropriate notice of any prescribed format.
(d) The requirements of this part only apply to a PHA that receives
the type of assistance described in paragraph (a) of this section.
(e) In addition to the waiver authority provided in 24 CFR 5.110,
the Secretary may, subject to statutory limitations, waive any
provision of this title on a program-wide basis, and delegate this
authority in accordance with section 106 of the Department of Housing
and Urban Development Reform Act of 1989 (42 U.S.C. 3535(q)) where the
Secretary determines that such waiver is necessary for the effective
implementation of this part.
Sec. 903.3 When must a PHA submit the plans to HUD?
(a) 5-Year Plan. (1) The first PHA fiscal year that is covered by
the requirements of this part is the PHA fiscal year that begins
January 1, 2000. The first 5-Year Plan submitted by a PHA must be
submitted for the 5-year period beginning January 1, 2000. The first 5-
Year Plans will be due no later than 75 days before January 1, 2000.
For PHAs whose fiscal years begin after January 1, 2000, their 5-Year
Plans are due no later than 75 days before the commencement of their
fiscal year. For all PHAs, after submission of their first 5-Year Plan,
all subsequent 5-Year Plans must be submitted once every 5 PHA fiscal
years, no later than 75 days before the commencement of the PHA's
fiscal year.
(2) PHAs may choose to update their 5-Year Plans every year as good
management practice. PHAs must explain any substantial deviation from
their 5-Year Plans in their Annual Plans.
(b) The Annual Plan. The first Annual Plan submitted by a PHA must
be submitted 75 days in advance of the first PHA fiscal year in which
the PHA receives Federal fiscal year 2000 funds. Since the first PHA
fiscal year funded with Federal Fiscal Year 2000 funds will commence
January 1, 2000, the first Annual Plan will be due 75 days in advance
of that date or October 15, 1999. PHAs with later fiscal year
commencement dates must submit their Annual Plans 75 days in advance of
their fiscal year commencement date. Subsequent Annual Plans will be
due 75 days in advance of the commencement of a PHA's fiscal year.
Sec. 903.5 What information must a PHA provide in the 5-Year Plan?
(a) A PHA must include in its 5-Year Plan for the 5 PHA fiscal
years immediately following the date on which the 5-Year Plan is due to
HUD, a statement of:
(1) The PHA's mission for serving the needs of low-income, very
low-income and extremely low-income families in the PHA's jurisdiction;
and
(2) The PHA's goals and objectives that enable the PHA to serve the
needs of the families identified in the PHA's Annual Plan. For HUD, the
PHA and the public to better measure the success of the PHA in meeting
its goals and objectives, PHAs must adopt quantifiable goals and
objectives for serving those needs wherever possible.
(b) After submission of the first 5-Year Plan, a PHA in their
succeeding 5-Year Plans, in addition to addressing their mission, goals
and objectives for the next 5 years, must address the progress made by
the PHA in meeting its goals and objectives described in the previous
5-Year Plan.
Sec. 903.7 What information must a PHA provide in the Annual Plan?
The Annual Plan must include the information provided in this
section, except that for the first Annual Plan, the following
information need not be submitted: the information required by
paragraph (l) of this section that pertains to section 12 of the U.S.
Housing Act of 1937 (42 U.S.C. 1437j(c)); the information required by
paragraph (m) of this section that relates to drug elimination
policies; and the information required by paragraph (n) of this
section. Additionally, the information described in this section
applies to both public housing and tenant-based assistance, except
where specifically stated otherwise, and the information that the PHA
must submit for HUD approval under the Annual Plan are the
discretionary policies of the various plan components or elements (for
example, selection policies) and not the statutory or regulatory
requirements that govern these components.
(a) A statement of housing needs. (1) This statement must address
the housing needs of the low-income and very low-income families who
reside in the jurisdiction served by the PHA, and families who are on
the public housing and Section 8 tenant-based assistance waiting lists,
including:
[[Page 8182]]
(i) Families with incomes below 30 percent of area median
(extremely low-income families);
(ii) Elderly families and families with disabilities;
(iii) Households of various races and ethnic groups residing in the
jurisdiction or on the waiting list.
(2) The housing needs of each of these groups must be identified
separately. The identification of housing needs should address issues
of affordability, supply, quality, accessibility, size of units and
location. The statement of housing needs also must describe the ways in
which the PHA intends, to the maximum extent practicable, to address
those needs, and the PHA's reasons for choosing its strategy.
(b) A statement of financial resources. This statement must address
the financial resources that are available to the PHA for the support
of Federal public housing and tenant-based assistance programs
administered by the PHA during the plan year. The statement must
include a listing of the significant PHA operating, capital and other
proposed Federal resource commitments available to the PHA, as well as
tenant rents and other income available to support public housing or
tenant-based assistance. The statement also should include the non-
Federal sources of funds supporting each federal program. In this
statement, the PHA also must describe the planned uses for the
resources.
(c) A statement of the PHA's policies that govern eligibility,
selection, and admissions. This statement must describe the PHA's
policies governing resident or tenant eligibility, selection and
admission. This statement also must describe any PHA admission
preferences, assignment and any occupancy policies that pertain to
public housing units and housing units assisted under section 8(o) of
the U.S. Housing Act of 1937. The requirement to submit PHA policies
governing assignment only applies to public housing. This statement
also must include the following information:
(1) The PHA's procedures for maintaining waiting lists for
admission to the PHA's public housing projects. These procedures must
include any site-based waiting lists, as provided by section 6(s) of
the U.S. Housing Act of 1937. This section permits PHAs to establish a
system of site-based waiting lists that are consistent with all
applicable civil rights and fair housing laws and regulations.
Notwithstanding any other regulations, a PHA may adopt site-based
waiting lists where:
(i) The PHA regularly submits required occupancy data to HUD's
Multifamily Tenant Characteristics Systems (MTCS) in an accurate,
complete and timely manner;
(ii) The system of site-based waiting lists provides for full
disclosure to each applicant of any option available to the applicant
in the selection of the development in which to reside, including basic
information about available sites (location, occupancy, number and size
of accessible units, amenities such as day care, security,
transportation and training programs) and an estimate of the period of
time the applicant would likely have to wait to be admitted to units of
different sizes and types (e.g., regular or accessible) at each site;
(iii) Adoption of site-based waiting lists would not violate any
court order or settlement agreement, or be inconsistent with a pending
complaint brought by HUD;
(iv) The PHA includes reasonable measures to assure that such
adoption is consistent with affirmatively furthering fair housing, such
as reasonable marketing activities;
(v) The PHA provides for review of its site-based waiting list
policy to determine if it is consistent with civil rights laws and
certifications through the following steps:
(A) As part of the submission of the Annual Plan, the PHA shall
assess changes in racial, ethnic or disability-related tenant
composition at each PHA site that may have occurred during the
implementation of the site-based waiting list, based upon MTCS
occupancy data that has been confirmed to be complete and accurate by
an independent audit (which may be the annual independent audit);
(B) At least biannually use independent testers or other means
satisfactory to HUD, to assure that the site-based waiting list is not
being implemented in a discriminatory manner, and that no patterns or
practices of discrimination exist, and providing the results to HUD;
and
(C) Taking any steps necessary to remedy the problems surfaced
during the review and the steps necessary to affirmatively further fair
housing.
(2) The PHA's admissions policy with respect to deconcentration of
very low-income families and income-mixing. Deconcentration and income-
mixing is required by section 16 of the U.S. Housing Act of 1937 (42
U.S.C. 1437n). To implement the requirement, which is applicable
specifically to public housing, PHAs must:
(i) Determine and compare the relative tenant incomes of each
development, as well as the household incomes of census tracts in which
the developments are located; and
(ii) Consider what admissions policy measures or incentives, if
any, will be needed to bring higher-income families into lower-income
developments (or if appropriate to achieve deconcentration of poverty,
into developments in lower income census tracts) and lower-income
families into higher income developments (or if appropriate to achieve
deconcentration of poverty, into developments in higher income census
tracts). PHA policies must devote appropriate attention to both of
these goals. PHA policies must affirmatively further fair housing; and
(i) Make any appropriate changes in their admissions policies.
(3) The policies governing eligibility, selection and admissions
are applicable to public housing and tenant-based assistance, except
for the information requested on site-based waiting lists and
deconcentration. This information is applicable only to public housing.
(d) A statement of the PHA's rent determination policies. This
statement must describe the PHA's basic discretionary policies that
pertain to rents charged for public housing units, including applicable
flat rents, and the rental contributions of families receiving tenant-
based assistance. For tenant-based assistance, this statement shall
cover any discretionary minimum tenant rents and payment standard
policies.
(e) A statement of the PHA's operation and management. (1) This
statement must describe the PHA's rules, standards, and policies that
govern maintenance and management of housing owned, assisted, or
operated by the PHA. This statement also must include a description of
any measures necessary for the prevention or eradication of pest
infestation which includes cockroach infestation. Additionally, this
statement must include a description of PHA management organization,
and a listing of the programs administered by the PHA.
(2) The information pertaining to PHA's rules, standards and
policies regarding management and maintenance of housing applies only
to public housing. The information pertaining to program management
applies to public housing and tenant-based assistance.
(f) A statement of the PHA grievance procedures. This statement
describes the grievance and informal hearing and review procedures that
the PHA makes available to its residents and applicants. This includes
public housing grievance procedures and tenant-based assistance
informal review procedures for
[[Page 8183]]
applicants and hearing procedures for participants.
(g) A statement of capital improvements needed. With respect to
public housing only (public housing projects owned, assisted or
operated by the PHA), this statement describes the capital improvements
necessary to ensure long-term physical and social viability of the
public housing projects, including the capital improvements to be
undertaken in the year in question and their estimated costs. PHAs are
encouraged to include 5-Year Plans covering large capital items.
(h) A statement of any demolition and/or disposition. With respect
to public housing only, a description of any public housing project, or
portion of a public housing project, owned by the PHA for which the PHA
has applied or will apply for demolition and/or disposition approval
under section 18 of the U.S. Housing Act of 1937 (42 U.S.C. 1437p), and
the timetable for demolition and/or disposition.
(i) A statement of the public housing projects designated as
housing for elderly families or families with disabilities or elderly
families and families with disabilities. With respect to public housing
only, this statement identifies any public housing projects owned,
assisted, or operated by the PHA, or any portion of these projects,
that the PHA has designated for occupancy only by the elderly families
or only by families with disabilities, or by elderly families and
families with disabilities or will apply for designation for occupancy
by only elderly families or only families with disabilities, or by
elderly families and families with disabilities as provided by section
7 of the U.S. Housing Act of 1937 (42 U.S.C. 1437e).
(j) A statement of the conversion of public housing to tenant-based
assistance. (1) This statement describes any building or buildings that
the PHA is required to convert to tenant-based assistance under section
33 of the U.S. Housing Act of 1937 (42 U.S.C. 1437z-5), or that the PHA
plans to voluntarily convert under section 22 of the U.S. Housing Act
of 1937 (42 U.S.C. 1437t). The statement also must include an analysis
of the projects or buildings required to be converted under section 33,
and the amount of assistance received commencing in Federal Fiscal 1999
to be used for rental assistance or other housing assistance in
connection with such conversion.
(2) The information required under this paragraph (j) of this
section is applicable to public housing and only that tenant-based
assistance which is to be included in the conversion plan.
(k) A statement of homeownership programs administered by the PHA.
This statement describes any homeownership programs administered by the
PHA under section 8(y) of the U.S. Housing Act of 1937 (42 U.S.C.
1437f(y)), or under an approved section 5(h) homeownership program (42
U.S.C. 1437c(h)), or an approved HOPE I program (42 U.S.C. 1437aaa) or
for any homeownership programs for which the PHA has applied to
administer or will apply to administer under section 5(h), the HOPE I
program, or section 32 of the U.S. Housing Act of 1937 (42 U.S.C.
1437z-4).
(l) A statement of the PHA's community service and self-sufficiency
programs. (1) This statement describes:
(i) Any PHA programs relating to services and amenities
coordinated, promoted or provided by the PHA for assisted families,
including programs provided or offered as a result of the PHA's
partnership with other entities;
(ii) Any PHA programs coordinated, promoted or provided by the PHA
for the enhancement of the economic and social self-sufficiency of
assisted families, including programs provided or offered as a result
of the PHA's partnerships with other entities, and activities under
section 3 of the Housing and Community Development Act of 1968 and
under requirements for the Family Self-Sufficiency Program and others.
The description of programs offered shall include the program's size
(including required and actual size of the Family Self-Sufficiency
program) and means of allocating assistance to households.
(iii) How the PHA will comply with the requirements of section
12(c) and (d) of the U.S. Housing Act of 1937 (42 U.S.C. 1437j(c) and
(d)). These statutory provisions relate to community service by public
housing residents and treatment of income changes in public housing and
tenant-based assistance recipients resulting from welfare program
requirements.
(2) The information required by paragraph (l) of this section is
applicable to both public housing and tenant-based assistance except
that the information regarding the PHA's compliance with the community
service requirement applies only to public housing.
(m) A statement of the PHA's safety and crime prevention measures.
With respect to public housing only, this statement describes the PHA's
plan for safety and crime prevention to ensure the safety of the public
housing residents that it serves. The plan for safety and crime
prevention must be established in consultation with the police officer
or officers in command of the appropriate precinct or police
departments, and the plan must provide, on a project-by-project or
jurisdiction wide-basis, the measures necessary to ensure the safety of
public housing residents.
(1) The statement regarding the PHA's safety and crime prevention
plan must include the following information:
(i) A description of the need for measures to ensure the safety of
public housing residents;
(ii) A description of any crime prevention activities conducted or
to be conducted by the PHA;
(iii) A description of the coordination between the PHA and the
appropriate police precincts for carrying out crime prevention measures
and activities;
(iv) The information required to be included by the Public Housing
Drug Elimination Program regulations if the PHA expects to receive drug
elimination program grant funds.
(2) If HUD determines at any time that the security needs of a
public housing project are not being adequately addressed by the PHA's
plan, or that the local police precinct is not assisting the PHA with
compliance with its crime prevention measures as described in the
Annual Plan, HUD may mediate between the PHA and the local precinct to
resolve any issues of conflict.
(n) A statement of the PHA's policies and rules regarding ownership
of pets in public housing. This statement describes the PHA's policies
and requirements pertaining to the ownership of pets in public housing
issued in accordance with section 31 of the U.S. Housing Act of 1937
(42 U.S.C. 1437a-3).
(o) Civil rights certification. (1) The PHA must certify that it
will carry out its plan in conformity with title VI of the Civil Rights
Act of 1964 (42 U.S.C. 2000d-2000d-4), the Fair Housing Act (42 U.S.C.
3601-19), section 504 of the Rehabilitation Act of 1973 (29 U.S.C.
794), and title II of the Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.), and also certify that it will affirmatively
further fair housing. The certification is applicable to both the 5-
Year Plan and the Annual Plan.
(2) PHAs shall be considered in compliance with the obligation to
affirmatively further fair housing if they examine their programs or
proposed programs, identify any impediments to fair housing choice
within those programs, address those impediments in a reasonable
fashion in view of the resources available, and work with local
jurisdictions to implement any of the jurisdiction's initiatives to
affirmatively further fair housing that require the
[[Page 8184]]
PHA's involvement, and maintain records reflecting these analyses and
actions.
(p) Recent results of PHA's fiscal year audit. The PHA's plan must
include the results of the most recent fiscal year audit of the PHA
conducted under section 5(h)(2) of the U.S. Housing Act of 1937 (42 U
S.C. 1437c(h)).
(q) A statement of asset management. This statement describes how
the PHA will carry out its asset management functions with respect to
the PHA's public housing inventory, including how the PHA will plan for
long-term operating, capital investment, rehabilitation, modernization,
disposition, and other needs for such inventory.
(r) Additional information to be provided. PHAs also must include
in their Annual Plan:
(1) A table of contents that corresponds to the Annual Plan's
components in the order listed in this section. The table of contents
also must identify the location of any materials that are not being
submitted with the Annual Plan;
(2) An executive summary that provides a brief overview of the
information that the PHA is submitting in its Annual Plan and relates
the Annual Plan programs and activities to the PHA's mission and goals
as described in the 5-Year Plan, and explains any substantial
deviations of these activities from the 5-Year Plan; and
(3) For all Annual Plans following submission of the first Annual
Plan, a brief summary of the PHA's progress in meeting the mission and
goals described in the 5-Year Plan.
Sec. 903.9 Must a troubled PHA include additional information in its
Annual Plan?
Yes. A PHA that is at risk of being designated as troubled or is
designated as troubled under section 6(j)(2) of the U.S. Housing Act of
1937 (42 U.S.C. 1437d(j)(2)) or under the Public Housing Assessment
System (24 CFR part 901) must include its operating budget, and include
or reference any applicable memorandum of agreement with HUD or other
plan to improve performance and such other material as HUD may
prescribe.
Sec. 903.11 Are certain PHAs eligible to submit a streamlined Annual
Plan?
(a) Yes, the following PHAs may submit a streamlined Annual Plan,
as described in paragraph (b) of this section:
(1) PHAs that are determined to be high performing PHAs;
(2) PHAs with less than 250 public housing units (small PHAs) and
that have not been designated as troubled under section 6(j)(2); and
(3) PHAs that only administer tenant-based assistance and that do
not own or operate public housing.
(b) All streamlined plans must provide information on how the
public may reasonably obtain additional information on the PHA policies
contained in the standard Annual Plan, but excluded from their
streamlined submissions. A streamlined plan must included the following
information:
(1) For high-performing PHAs, the streamlined Annual Plan must
include the information required by Sec. 903.7(a), (b), (c), (d), (g),
(h), (m), (n), (o), (p) and (r). The information required by
Sec. 903.7(m) must be included only to the extent this information is
required for PHA's participation in the public housing drug elimination
program and the PHA anticipates participating in this program in the
upcoming year.
(2) For small PHAs that are not designated as troubled or that are
not at risk of being designated as troubled, the streamlined Annual
Plan must include the information required by Sec. 903.7(a), (b), (c),
(d), (g), (h), (k), (m), (n), (o), (p) and (r). The information
required by Sec. 903.7(k) must be include only to the extent that the
PHA participates in homeownership programs under section 8(y). The
information required by Sec. 903.7(m) must be included only to the
extent this information is required for the PHA's participation in the
public housing drug elimination program and the PHA anticipates
participating in this program in the upcoming year.
(3) For PHA's that administer only tenant-based assistance, the
streamlined Annual Plan must include the information required by
Sec. 903.7(a), (b), (c), (d), (f), (k), (l), (o), (p) and (r). The
information required by Sec. 903.7(b) (financial resources) can be a
statement of the programs the PHA administers and the estimated number
of new families to be assisted and total families to be assisted in
each program.
Sec. 903.13 What is a Resident Advisory Board and what is its role in
development of the Annual Plan?
(a) A Resident Advisory Board is a board whose membership is made
up of individuals who adequately reflect and represent the residents
assisted by the PHA. The role of the Resident Advisory Board (or
Resident Advisory Boards) is to participate in the PHA planning process
and to assist and make recommendations regarding the PHA plan. The PHA
shall allocate reasonable resources to assure the effective functioning
of Resident Advisory Boards.
(b) Each PHA must establish one or more Resident Advisory Boards,
and the membership on the board must adequately reflect and represent
the residents assisted by the PHA.
(1) To the extent a jurisdiction-wide resident council exists that
complies with the tenant participation regulations in 24 CFR part 964,
the PHA shall appoint the jurisdiction-wide resident council or its
representatives as a Resident Advisory Board. If a jurisdiction-wide
resident council does not exist but resident councils exist that comply
with the tenant participation regulations, the PHA shall appoint such
resident councils or their representatives to serve on Resident
Advisory Boards, provided that the PHA may require that the resident
councils choose a limited number of representatives.
(2) Where the PHA has a tenant-based assistance program of
significant size, the PHA shall assure that the Resident Advisory Board
or Boards has reasonable representation of families receiving tenant-
based assistance and that a reasonable process is undertaken to choose
this representation. Where resident councils do not exist which would
adequately reflect and represent the residents assisted by the PHA, the
PHA may appoint additional Resident Advisory Boards or Board members,
provided that the PHA shall provide reasonable notice to residents and
urge that they form resident councils that comply with the tenant
participation regulations.
(c) The PHA must consider the recommendations of the Resident
Advisory Board or Boards in preparing the final Annual Plan. In
submitting the final plan to HUD for approval, the PHA must include a
copy of the recommendations made by the Resident Advisory Board or
Boards and a description of the manner in which the PHA addressed these
recommendations. Notwithstanding the 75-day limitation on HUD review,
in response to a written request from a Resident Advisory Board
claiming that the PHA failed to provide adequate notice and opportunity
for comment, HUD may make a finding of good cause during the required
time period and require the PHA to remedy the failure before final
approval of the plan.
Sec. 903.15 What is the relationship of the public housing agency
plans to the Consolidated Plan?
The PHA must ensure that the Annual Plan is consistent with any
applicable Consolidated Plan to the jurisdiction in which the PHA is
located. The Consolidated Plan includes the Analysis
[[Page 8185]]
of Impediments to Fair Housing Choice. The PHA must submit a
certification by the appropriate State or local officials that the
Annual Plan is consistent with the Consolidated Plan and include a
description of the manner in which the applicable plan contents are
consistent with the Consolidated Plans.
Sec. 903.17 Must the PHA make public the contents of the plans?
(a) Yes. The PHA's board of directors or similar governing body
must conduct a public hearing to discuss the PHA plan (either the 5-
Year Plan or Annual Plan, or both as applicable) and invite public
comment on the plan(s). The hearing must be conducted at a location
that is convenient to the residents served by the PHA.
(b) Not later than 45 days before the public hearing is to take
place, the PHA must:
(1) Make the proposed PHA plan(s) and all information relevant to
the public hearing to be conducted, available for inspection by the
public at the principal office of the PHA during normal business hours;
and
(2) Publish a notice informing the public that the information is
available for review and inspection, and that a public hearing will
take place on the plan, and the date, time and location of the hearing.
Sec. 903.19 When is the 5-Year Plan or Annual Plan ready for
submission to HUD?
A PHA may adopt its 5-Year Plan or its Annual Plan and submit the
plan to HUD for approval only after:
(a) The PHA has conducted the public hearing;
(b) The PHA has considered all public comments received on the
plan;
(c) The PHA has made any changes to the plan, based on comments,
after consultation with the Resident Advisory Board or other resident
organization.
Sec. 903.21 May the PHA amend or modify a plan?
A PHA, after submitting its 5-Year Plan or Annual Plan to HUD, may
amend or modify any PHA policy, rule, regulation or other aspect of the
plan. If the amendment or modification is a significant amendment or
modification, the PHA:
(a) May not adopt the amendment or modification until the PHA has
duly called a meeting of its board of directors (or similar governing
body) and the meeting, at which the amendment or modification is
adopted, is open to the public; and
(b) May not implement the amendment or modification, until
notification of the amendment or modification is provided to HUD and
approved by HUD in accordance with HUD's plan review procedures, as
provided in Sec. 903.23.
Sec. 903.23 What is the process by which HUD reviews, approves, or
disapproves an Annual Plan?
(a) Review of the plan. When the PHA submits its Annual Plan to
HUD, including any amendment or modification to the plan, HUD reviews
the plan to determine whether:
(1) The plan provides all the information that is required to be
included in the plan;
(2) The plan is consistent with the information and data available
to HUD and with any applicable Consolidated Plan for the jurisdiction
in which the PHA is located; and
(3) The plan is not prohibited or inconsistent with the U.S.
Housing Act of 1937 or any other applicable Federal law.
(b) Disapproval of the plan. (1) HUD may disapprove a PHA plan, in
its entirety or with respect to any part, or disapprove any amendment
or modification to the plan, only if HUD determines that the plan, or
one of its components or elements, or any amendment or modification to
the plan:
(i) Does not provide all the information that is required to be
included in the plan;
(ii) Is not consistent with the information and data available to
HUD or with any applicable Consolidated Plan for the jurisdiction in
which the PHA is located; and
(iii) Is not consistent with all applicable laws and regulations.
(2) Not later than 75 days after the date on which the PHA submits
its plan, or the date on which the PHA submits its amendment or
modification to the plan, HUD will issue written notice to the PHA if
the plan has been disapproved. The notice that HUD issues to the PHA
must state with specificity the reasons for the disapproval. HUD may
not state as a reason for disapproval the lack of time to review the
plan.
(3) If HUD fails to issue the notice of disapproval on or before
the 75th day after the PHA submits the plan, HUD shall be considered to
have determined that all elements or components of the plan required to
be submitted and that were submitted, and reviewed by HUD were in
compliance with applicable requirements and the plan has been approved.
(d) Public availability of the approved plan. Once a PHA's plan has
been approved, a PHA must make its approved plan available for review
and inspection, at the principal office of the PHA during normal
business hours.
Sec. 903.25 How does HUD ensure PHA compliance with its plan?
A PHA must comply with the rules, standards and policies
established in the plans. To ensure that a PHA is in compliance with
all policies, rules, and standards adopted in the plan approved by HUD,
HUD shall respond appropriately to any complaint concerning PHA
noncompliance with its plan. If HUD determines that a PHA is not in
compliance with its plan, HUD will take necessary and appropriate
action to ensure compliance by the PHA.
Dated: February 1, 1999.
Harold Lucas,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 99-3651 Filed 2-17-99; 8:45 am]
BILLING CODE 4210-33-P