[Federal Register Volume 64, Number 203 (Thursday, October 21, 1999)]
[Rules and Regulations]
[Pages 56676-56677]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-27457]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 902

[Docket No. FR-4497-N-02]
RIN 2577-AC08


Public Housing Assessment System (PHAS); Transition to the PHAS

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, and Office of the Director of the Real Estate Assessment 
Center, HUD.

ACTION: Notice of delayed implementation.

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[[Page 56677]]

SUMMARY: This document advises of transition assistance that will be 
provided in connection with implementation of the Public Housing 
Assessment System (PHAS) for public housing agencies (PHAs) with fiscal 
years ending on September 30, 1999, and December 31, 1999. HUD also 
gives notice that it will issue PHAS Advisory Scores and Management 
Assessment Scores as provided in the SUPPLEMENTARY INFORMATION of this 
document.

FOR FURTHER INFORMATION CONTACT: For further information contact the 
Real Estate Assessment Center (REAC), Attention: Wanda Funk, U.S. 
Department of Housing and Urban Development, 1280 Maryland Avenue, SW, 
Suite 800, Washington DC, 20024; telephone Customer Service Center at 
(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. Persons with hearing or speech impairments may access 
that number via TTY by calling the Federal Information Relay Service at 
(800) 877-8339.

SUPPLEMENTARY INFORMATION: HUD's rule implementing the PHAS was 
published on September 1, 1998 (64 FR 46596), and became effective 
October 1, 1998. Although the PHAS regulation became effective October 
1, 1998, the September 1, 1998 final rule provided PHAs with a delayed 
implementation date for the PHAS. The final rule took into 
consideration the time that was needed by PHAs to make the transition 
to the new assessment system. As provided by the September 1, 1998 
final rule, the PHAS was scheduled to be implemented for PHAs with 
fiscal years ending on and after September 30, 1999.
    On June 22, 1999 (64 FR 33348), HUD published a proposed rule to 
amend certain provisions of the PHAS regulation, codified at 24 CFR 
part 902. The Quality Housing and Work Responsibility Act of 1998 
(Pub.L. 105-276, approved October 21, 1998) (commonly referred to as 
the ``Public Housing Reform Act'') made certain changes to the 
statutory basis for the PHAS, which needed to be reflected in the 
regulation. Additionally, during the scheduled PHAS transition year 
(September 1998 to September 1999), HUD gained experience and valuable 
information from its physical inspection of PHA properties, testing the 
PHAS systems, and talking to PHAs about the PHAS. As a result of the 
experience and information gained, HUD determined that certain changes 
should be made to the PHAS regulation. These changes were described in 
the preamble to the June 22, 1999, proposed rule.
    HUD's public comment period on the June 22, 1999, proposed rule 
closed August 23, 1999. Many of the PHAs who commented on this rule 
have fiscal years ending September 30, 1999, and December 31, 1999, 
making them the first PHAs to be issued PHAS scores under the September 
1, 1998 rule. These PHAs requested additional time to prepare for 
compliance with the PHAS requirements, and HUD will grant them 
additional time as provided in this notice.

PHAs With Fiscal Years Ending 9/30/99 and 12/31/99

    For PHAs with fiscal years ending September 30, 1999, or December 
31, 1999, HUD will not issue PHAS scores for the fiscal years ending on 
these dates. For these PHAs, in lieu of a PHAS score, HUD will issue 
the following:
    PHAS Advisory Score. A PHA with a fiscal year ending September 30, 
1999, or December 31, 1999, will be issued a PHAS advisory score. The 
PHA must comply with the requirements of 24 CFR part 902 (the PHAS 
regulation) so that HUD may issue the advisory score.
    1. Physical inspections will continue to be performed by HUD, as 
part of the PHAS advisory score process, using HUD's uniform physical 
inspection protocols. In the event, however, that changes are made to 
HUD's Dictionary of Deficiencies, PHAS advisory scores will be revised 
and reissued to reflect these changes.
    2. For these PHAs to successfully make the transition to the PHAS, 
they must comply with the requirements of PHAS, and be assessed by HUD 
under the PHAS, if only on an advisory basis.
    Management Assessment Score. A PHA with a fiscal year ending 
September 30, 1999, or December 31, 1999, will receive an assessment 
score on the basis of HUD's assessment of the PHA's management 
operations in accordance with 24 CFR part 902, subpart D of the PHAS 
regulation (PHAS Indicator #3, Management Operations).

PHAs With Fiscal Years Ending After 12/31/99

    PHAs with fiscal years ending after December 31, 1999 will be 
issued PHAS scores.
    HUD is completing work on its final rule to follow the June 22, 
1999 proposed rule. HUD will issue a consensus-based final rule that 
will reflect the provisions of this Notice, address the public 
comments, and describe all changes to the PHAS regulation made as a 
result of the public comment and review process.

    Dated: October 15, 1999.
Deborah Vincent,
General Deputy Assistant Secretary for Public and Indian Housing.
Donald J. LaVoy,
Acting Director, Real Estate Assessment Center.
[FR Doc. 99-27457 Filed 10-20-99; 8:45 am]
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