[Federal Register Volume 64, Number 120 (Wednesday, June 23, 1999)]
[Notices]
[Pages 33708-33710]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15740]



[[Page 33707]]

_______________________________________________________________________

Part VIII





Department of Housing and Urban Development





_______________________________________________________________________



Public Housing Assessment System, Management Operations Scoring 
Process; Notice

  Federal Register / Vol. 64, No. 120 / Wednesday, June 23, 1999 / 
Notices  

[[Page 33708]]



DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4509-N-09]


Public Housing Assessment System, Management Operations Scoring 
Process

AGENCY: Office of the Director, Real Estate Assessment Center, HUD.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This notice provides additional information to public housing 
agencies and members of the public, regarding HUD's Management 
Operations process for issuing scores to PHAs under the Public Housing 
Assessment System (PHAS).

FOR FURTHER INFORMATION CONTACT: For further information contact Wanda 
Funk, Real Estate Assessment Center, Department of Housing and Urban 
Development, 1280 Maryland Avenue, SW, Suite 800, Washington DC, 20024; 
telephone Customer Service Center at 1-888-245-4860 (this is 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. Additional information is available from the REAC 
Internet Site, http://www.hud.gov/reac.

SUPPLEMENTARY INFORMATION:

1. Purpose of This Notice

    The purpose of this notice is to provide additional information 
about the scoring process for PHAS Indicator #3, Management Operations. 
The purpose of the Management Operations assessment is to measure 
certain key management operations and responsibilities of a PHA for the 
purpose of assessing the PHA's management operations capabilities.
    The information provided in this notice was originally published on 
May 13, 1999 (64 FR 26232). HUD is publishing this information again 
since it relates to the Public Housing Assessment System proposed rule, 
published in the Federal Register on June 23, 1999. This notice differs 
from the May 13, 1999 notice to reflect the new economic self-
sufficiency sub-indicator.

2. Changes From PHMAP to PHAS

    The PHAS assessment of a PHA's management operations utilizes six 
of the eight current PHMAP indicators:

     Vacancies;
     Capital Fund;
     Rents uncollected;
     Work orders;
     Inspection of units and systems; and
     Security/Economic Self-Sufficiency.
    The adjustment for physical condition and/or neighborhood 
environment will be made under PHAS Indicator #1, Physical Condition. 
The same definitions and exemptions that apply to the PHMAP also apply 
to the PHAS. The current PHMAP indicator for financial management is 
assessed under PHAS Indicator #2, Financial Condition; and the current 
PHMAP indicator #7 for resident services is assessed under PHAS 
Indicator #4, Resident Service and Satisfaction.
    There are certain differences between the PHMAP score and the PHAS 
score calculated for a PHA's management operations. Under the PHAS, 
modifications and exclusions no longer apply. PHAs will certify to sub-
indicator #2, Capital Fund, and all PHAs will certify to and be scored 
on sub-indicator #6, Security/Economic Self-Sufficiency, under PHAS 
Indicator #3.

3. Submission of Management Operations Certification

    Under the PHAS, a PHA is required to electronically submit 
certification on its performance under each of the management 
operations sub-indicators. If a PHA does not have this capability in-
house, the PHA should consider utilizing local resources, such as the 
library or another local government entity that has internet access. In 
the event local resources are not available, a PHA may go to the 
nearest HUD Public and Indian Housing program office and assistance 
will be given to the PHA to transmit its Management Operations 
certification. If circumstances preclude a PHA from reporting 
electronically, HUD will consider granting approval to allow a PHA to 
submit its Management Operations certification manually. A PHA that 
seeks approval to submit its certification manually must ensure that 
the REAC receives a request for manual submission in writing 60 
calendar days prior to the submission due date of its Management 
Operations certification. The written request must include the reasons 
why the PHA cannot submit its certification electronically. The REAC 
will respond to such a request and will manually forward its 
determination in writing to the PHA.

4. Elements of Scoring

    The Management Operations Indicator score provides an assessment of 
each PHA's management effectiveness. The computation of the score under 
this PHAS Indicator utilizes data that was submitted for PHMAP and 
requires three main calculations, which are:

     Scores are first calculated for all of the components 
that have been submitted by the PHA;
     Based upon the component scores, a score is then 
calculated for each sub-indicator; and
     From the six sub-indicator scores, an indicator score 
is then calculated.
    The three calculations are performed on the basis of the 
following:
     The weights of the six sub-indicators and/or 
components, which are listed in Table 1; and
     The grades assigned under PHMAP for each sub-indicator 
and/or component.

  Table 1.--Management Operations Sub-Indicators and Components Weights
------------------------------------------------------------------------
                                   Sub-
        Sub-indicator           indicator      Component      Component
                                  weight                        weight
------------------------------------------------------------------------
Vacancy Rate/Progress to               8.0  Vacancy Rate...          4.0
 Reduce (PHMAP Indicator #1).
                                            Unit Turnaround          4.0
                                             Time.
Capital Fund (PHMAP Indicator          6.0  Unexpended               1.0
 #2).                                        Funds.
                                            Timeliness of            1.5
                                             Fund
                                             Obligation.
                                            Contract                 1.0
                                             Administration.
                                            Quality of               2.0
                                             Physical Work.
                                            Budget Controls          0.5
Rents Uncollected (PHMAP               4.0
 Indicator #3).
Work Orders (PHMAP Indicator           4.0  Emergency Work           2.0
 #4).                                        Orders.
                                            Non-Emergency            2.0
                                             Work Orders.
Inspections of Units and               4.0  Inspection of            2.0
 Systems (PHMAP Indicator #5).               Units.
                                            Inspections of           2.0
                                             Systems.

[[Page 33709]]

 
Security/Economic Self-                4.0  Tracking/                1.0
 Sufficiency (PHMAP Indicator                Reporting
 #8).                                        Crime-Related
                                             Problems.
                                            Screening of             1.0
                                             Applicants.
                                            Lease                    1.0
                                             Enforcement.
                                            Grant Program            1.0
                                             Goals.
------------------------------------------------------------------------

    If the PHAS Capital Fund sub-indicator (PHMAP Indicator #2) is not 
applicable, then the 6 points for that sub-indicator are redistributed 
among the other five sub-indicators. This is accomplished by 
multiplication of 30/24 or 1.25, which is 125 percent of the original 
weights. The new weight for the sub-indicator ``Vacancy Rate/Progress 
to Reduce'' would be 10.0, and the new weight for the other four sub-
indicators would be 5.0.
    The PHMAP grades for each sub-indicator/component are assigned 
values to indicate the percentage of the sub-indicator/component weight 
that will be awarded in the calculations. The assigned values for the 
PHMAP grades, which are listed in Table 2, are the same for each sub-
indicator/component that is being assessed. For example, a PHA with an 
E for the component ``Inspection of Units and Systems'' would receive 
30% of the component weight of 2, for a score of 0.6 for the component.

                        Table 2.--Possible Grades
------------------------------------------------------------------------
                           Grades                               Value
------------------------------------------------------------------------
A..........................................................         1.00
B..........................................................         0.85
C..........................................................         0.70
D..........................................................         0.50
E..........................................................         0.30
F..........................................................         0.00
NA--Data not submitted.....................................          \1\
------------------------------------------------------------------------
\1\ NA--No value assigned.

    Calculations under the PHAS Management Operations Indicator are 
performed as follows:
    Component Score. The component score equals its weight multiplied 
by the value of the grade for the PHA, unless no data exists for an 
assessment of the PHA for the component. For example, a PHA with an E 
for the component Inspection of Units and Systems would receive 30% of 
the component weight of 2, for a score of 0.6 for the component.
    Sub-indicator Score. The sub-indicator score is the sum of the 
component scores with the weight of non-assessed (NA) sub-indicators 
being proportionately redistributed across sub-indicators that have 
been assessed.
    If the Capital Fund sub-indicator (PHMAP indicator #2) is not 
applicable (the PHA does not have a Capital Fund Program), then the 6 
points for that sub-indicator are redistributed among the other five 
sub-indicators in the calculation of the indicator score.
    If no data was submitted for an assessment of the entire sub-
indicator (excluding the Capital Fund sub-indicator), then for PHAS 
scores, the sub-indicator score is equal to the appropriate sub-
indicator weight with an asterisk appended to it. The asterisk 
indicates the score is not a true assessment of the PHA's effectiveness 
for the sub-indicator.
    Indicator Score. The Indicator score equals the sum of the sub-
indicator scores. If the PHA does not have a Capital Fund Program, the 
indicator score equals the sum of the five other sub-indicator scores 
multiplied times 30/24 or 1.25, which is 125 percent of the original 
weight.

5. Examples of Score Computations

    An Example of Computing a Sub-Indicator Score With a Non-Assessed 
Component. The following provides an example for the calculation of a 
Capital Fund sub-indicator score and its component scores, when the 
Quality of Physical Work component has not been assessed. For this 
example, Table 3 provides the necessary information, which is:

     The weight of the Capital Fund sub-indicator components 
from Table 1;
     The sample grade for each component;
     The value of each grade from Table 2;
     The calculations for the component score; and
     The component scores.

    The component score is calculated in this table by multiplying the 
weights by the values in Table 3. These scores are included in the PHAS 
Report. Note that for reporting purposes, all scores are rounded to one 
decimal place.

                         Table 3.--Example Assessment of the Capital Fund Sub-Indicator
----------------------------------------------------------------------------------------------------------------
               Component                 Weight         Grade         Value          Calculations         Score
----------------------------------------------------------------------------------------------------------------
#1 Unexpended Funds...................      1.0  A                       1.0  (1.0) times (1.0) = 1.0..      1.0
#2 Timeliness of Fund Obligation......      1.5  A                       1.0  (1.5) times (1.0) = 1.5..      1.5
#3 Contract Administration............      1.0  C                       0.7  (1.0) times (0.7) = 0.7..      0.7
#4 Quality of Physical Work...........      2.0  NA                       NA  NA.......................       NA
#5 Budget Controls....................      0.5  F                       0.0  (0.5) times (0.0) = 0.0..      0.0
----------------------------------------------------------------------------------------------------------------

    In this example, the 4th component has not been assessed for PHMAP 
indicator #2. Consequently, the weight of the non-assessed component 
needs to be redistributed proportionately across assessed components in 
order to calculate the Capital Fund sub-indicator score. This 
redistribution is accomplished by multiplying the sum of the component 
scores by 6 (the weight of the sub-indicator) and dividing this result 
by the sum of the weights of the components that have been assessed. 
This calculation for the Capital Fund sub-indicator score is provided 
below:

[[Page 33710]]

[GRAPHIC] [TIFF OMITTED] TN23JN99.068


    An Example of Computing the Indicator Score for a PHA Without a 
Capital Fund Program and That Has Less Than 250 Units. For this 
example, the PHA's sub-indicator scores are:

     The Vacancy Rate/Progress to Reduce score equals 6.8;
     The Capital Fund sub-indicator was not assessed (NA);
     The Rents Uncollected score equals 4.0;
     The Work Orders score equals 2.8;
     The Inspection of Units and Systems score equals 3.7; 
and
     The Security/Economic Self-Sufficiency score equals 
4.0*.

    For this PHA, the Indicator score is calculated by the following 
formula;
[GRAPHIC] [TIFF OMITTED] TN23JN99.069

    Dated: June 14, 1999.
Donald J. LaVoy,
Acting Director, Real Estate Assessment Center.
[FR Doc. 99-15740 Filed 6-22-99; 8:45 am]
BILLING CODE 4210-32-P