[Federal Register Volume 65, Number 125 (Wednesday, June 28, 2000)]
[Notices]
[Pages 40024-40026]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-16155]



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Part V





Department of Housing and Urban Development





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Public Housing Assessment System Management Operations Scoring Process 
for Fiscal Years Ending September 30, 1999, and December 31, 1999, 
PHAs; Notice

  Federal Register / Vol. 65, No. 125 / Wednesday, June 28, 2000 / 
Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4509-N-14]


Public Housing Assessment System Management Operations Scoring 
Process for Fiscal Years Ending September 30, 1999, and December 31, 
1999, PHAs

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

ACTION: Notice.

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SUMMARY: This notice provides additional information to public housing 
agencies and members of the public, regarding HUD's process for issuing 
Management Operations scores to PHAs under the Public Housing 
Assessment System (PHAS).
    This notice is an update of the Management Operations Indicator 
scoring notice that was published on June 23, 1999, and takes into 
consideration public comment received on the June 23, 1999 notice, and 
provides the basis for scoring public housing agencies on their 
management operations as provided in the PHAS Transition Notice 
published on October 21, 1999. The Notice also reflects the differences 
in scoring between advisory scores and actual Management Operations 
scores. This notice is applicable only to PHAs with fiscal years ending 
September 30, 1999, or December 31, 1999. For PHAs with fiscal years 
ending on or after March 31, 2000, a separate Management Scoring Notice 
is published elsewhere in this Federal Register. The changes made to 
this notice are discussed in the Supplementary Information section of 
this notice.

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 Technical Assistance 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), and republished on June 23, 1999 (64 FR 
33708). HUD solicited public comment on both the May 13, 1999, and June 
23, 1999, notices. This Management Operations Scoring Process notice, 
published in this edition of the Federal Register, has been revised, to 
reflect the public comments received on the previous notices and to 
provide the basis for scoring PHAs on their management operations as 
provided in the PHAS Transition Notice published on October 21, 1999 
(64 FR 56676). This Management Operations Scoring Notice is applicable 
only to PHAs with fiscal years ending September 30, 1999, or December 
31, 1999. For PHAs with fiscal years ending on or after March 31, 2000, 
a separate Management Operations Scoring Notice is published elsewhere 
in this Federal Register.
    Additionally, this notice differs from the June 23, 1999, notice to 
reflect the difference in scoring between advisory scores and actual 
Management Operations scores. Eliminated from the notice published on 
June 23, 1999, are the last row and footnote in Table 2, Possible 
Grades; and the third paragraph under Sub-indicator Score. These two 
items only applied to PHAS advisory scores for fiscal year end 
September 30, 1998, December 31, 1998, March 30, 1999, and June 30, 
1999, PHAs.

2. Changes From PHMAP To PHAS

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

 Vacancy rate and vacant unit turnaround time;
 Capital Fund;
 Rents uncollected;
 Work orders;
 PHA annual 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, except as noted in 24 CFR 902, subpart D. The PHMAP 
indicator for financial management is assessed under PHAS Indicator #2, 
Financial Condition; and 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, PHA 
requested modifications and exclusions no longer apply. Under the PHAS, 
a PHA will not be assessed under a sub-indicator and/or component if 
the PHA does not receive funding for that program, i.e., Capital Fund. 
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 circumstances preclude a PHA from 
reporting electronically, HUD will consider granting short-term 
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 point value of the six sub-indicators and/or 
components, which are listed in Table 1; and
 The point equivalent to the grades assigned under PHMAP for 
each sub-indicator and/or component.

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                       Table 1.--Management Operations Sub-Indicator and Component Points
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                                                   Sub-
                Sub-indicator                    indicator                 Component                  Component
                                                  points                                               points
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Vacancy Rate/Unit Turnaround Time (PHMAP               8.0   Vacancy Rate.........................          4.0
 Indicator #1).                                              Unit Turnaround Time.................          4.0
Capital Fund (PHMAP Indicator #2)............          6.0   Unexpended Funds.....................          1.0
                                                             Timeliness of Fund Obligation........          1.5
                                                             Contract Administration..............          1.0
                                                             Quality of Physical Work.............          2.0
                                                             Budget Controls......................          0.5
Rents Uncollected (PHMAP Indicator #3).......          4.0
Work Orders (PHMAP Indicator #4).............          4.0   Emergency Work Orders................          2.0
                                                             Non-Emergency Work Orders............          2.0
Inspections of Units and Systems (PHMAP                4.0   Inspection of Units..................          2.0
 Indicator #5).                                              Inspections of Systems...............          2.0
Security/Economic Self-Sufficiency (PHMAP              4.0   Tracking/Reporting Crime-Related               1.0
 Indicator #8).                                               Problems.                                     1.0
                                                             Screening of Applicants..............
                                                             Lease Enforcement....................          1.0
                                                             Grant Program Goals..................          1.0
----------------------------------------------------------------------------------------------------------------

    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 so that the total points add up to 
the 30 points for Management Operations under the PHAS. This is 
accomplished by multiplying 30/24 or 1.25 by each of the remaining sub-
indicator scores, which is 125 percent of the original points. The new 
points for the sub-indicator ``Vacancy Rate and Unit Turnaround Time'' 
would be 10.0, and the new points 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 points 
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 points of 2, for a score of 0.6 for the component.

                        Table 2.--Possible Grades
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                            Grades                               Value
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A............................................................       1.00
B............................................................       0.85
C............................................................       0.70
D............................................................       0.50
E............................................................       0.30
F............................................................       0.00
------------------------------------------------------------------------

    Calculations under the PHAS Management Operations Indicator are 
performed as follows:
    Component Score. The component score equals its points multiplied 
by the value of the grade for the PHA. For example, a PHA with an E for 
the component ``Inspection of Units and Systems'' would receive 30% of 
the component points 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 points of non-assessed components being 
proportionately redistributed across components that have been 
assessed.
    Indicator Score. The Indicator score equals the sum of the sub-
indicator scores with the points of non-assessed sub-indicators being 
proportionately redistributed across sub-indicators that have been 
assessed. The Management Operations Indicator score equals the sum of 
the five other redistributed sub-indicator scores multiplied by 30/24 
or 1.25, which is 125 percent of the original score.
    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 Management Operations 
Indicator score so that the total points add up to the 30 points for 
Management Operations under the PHAS.

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 
points 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
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          Component              Points         Grade          Value            Calculations            Score
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#1 Unexpended Funds.........          1.0  A                        1.0  (1.0)  x  (1.0) = 1.0               1.0
#2 Timeliness of Fund                 1.5  A                        1.0  (1.5)  x  (1.0) = 1.5               1.5
 Obligation.
#3 Contract Administration..          1.0  C                        0.7  (1.0)  x  (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)  x  (0.0) = 0.0               0.0
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    In this example, the 4th component has not been assessed for sub-
indicator #2, Capital Fund. Consequently, the points of the non-
assessed component need 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 points for the sub-indicator) and 
dividing this result by the sum of the points of the components that 
have been assessed (4). This calculation for the Capital Fund sub-
indicator score is provided below:
[GRAPHIC] [TIFF OMITTED] TN28JN00.056

    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/Unit Turnaround Time score equals 6.8;
     The Capital Fund sub-indicator was not assessed;
     The Rents Uncollected score equals 4.0;
     The Work Orders score equals 2.8;
     The Inspection of Units/Systems score equals 3.7; and
     The Security/Economic Self-Sufficiency score equals 
4.0.

    The Capital Fund sub-indicator has not been assessed. Consequently, 
the points for the non-assessed sub-indicator need to be redistributed 
proportionately across assessed sub-indicators in order to calculate 
the Management Operations Indicator score. This redistribution is 
accomplished by multiplying the sum of the sub-indicator scores by 30 
(the points for the Management Operations Indicator) and dividing this 
result by the sum of the points of the sub-indicators that have been 
assessed (24). The calculation for the Management Operations Indicator 
is provided below:
[GRAPHIC] [TIFF OMITTED] TN28JN00.057


    Dated: June 20, 2000.
Donald J. LaVoy,
Director Real Estate Assessment Center.
[FR Doc. 00-16155 Filed 6-27-00; 8:45 am]
BILLING CODE 4210-01-P