[Federal Register Volume 66, Number 104 (Wednesday, May 30, 2001)]
[Notices]
[Pages 29342-29343]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-13487]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4687-N-01]
RIN 2577-AC08


Public Housing Assessment System (PHAS); Revised Timetable for 
Issuance of Management Operations Official Scores and PHAS Advisory 
Scores; and Notice of Intent To Commence Informal Meetings on 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 revised timetable for issuance of management 
operations official scores and PHAS advisory scores and intent to 
commence informal meetings on PHAS.

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SUMMARY: This document advises that the Management Operations indicator 
under the Public Housing Assessment System (PHAS) will continue to be 
the official assessment for public housing agencies (PHAs) with fiscal 
years ending on June 30, 2000, through June 30, 2001. Accordingly, HUD 
will issue these management scores and PHAS advisory scores as provided 
in the Supplementary Information section of this document. Further, 
this document notifies the public of the intent of the Department to 
conduct informal consultations with PHAs, public housing residents, 
representatives of PHAs and residents, housing advocacy 
representatives, governmental representatives, and such other groups 
that HUD may identify regarding ways to improve HUD's on-going 
procedures for assessing the performance of public housing agencies. It 
is expected that these informal consultations will commence within the 
near future and occur periodically through November, 2001, and 
thereafter as necessary on dates and at locations provided by the 
Department.

FOR FURTHER INFORMATION CONTACT: For further information contact the 
Office of Public and Indian Housing, Office of Troubled Agency Recovery 
Attention: Judy Wojciechowski, Director of PHAS Operations, U. S. 
Department of Housing and Urban Development, 451 Seventh Street, SW, 
Room 4112, Washington, D.C. 20410 or 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.

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 final rule provided a one year delayed implementation 
date.
    On January 11, 2000 (65 FR 1712), HUD issued an amended PHAS rule. 
The amendments were prompted by both statutory and administrative 
changes to the PHAS and comments from interested parties. The amended 
rule deferred full implementation of PHAS for PHAs with fiscal year end 
dates of September 30, 1999, and December 31, 1999. The January 11, 
2000 rule provided that these PHAs would receive an assessment score 
based only on the Management Operations indicator (MASS).
    On June 6, 2000 (65 FR 36042), HUD issued a technical correction to 
the January 11, 2000, final rule and one of the corrections further 
deferred full implementation of PHAS for PHAs with fiscal years ending 
on and after June 30, 2000.
    The Conference Report 106-988 for the Department's Fiscal Year 2001 
Appropriations Act (Pub L. 106-377, approved October 27, 2000), 
directed the Department to, among other things, continue to assess the 
accuracy and effectiveness of the PHAS system, perform a statistically 
valid test of PHAS, conduct a thorough analysis of the results, and 
have the methodology and results reviewed by an independent expert 
before taking any adverse action against a PHA based solely on its PHAS 
score. A report addressing these issues was provided to HUD's Committee 
on Appropriations on March 1, 2001.
    Consistent with the direction of the conferees, HUD issued a PIH 
notice (Notice PIH 2001-5), issued January 19, 2001, that provided 
prior to March 1, 2001, HUD would not take adverse action against PHAs 
solely on the basis of the PHAS scores. ``Adverse action'' was defined 
as troubled designations based upon the official PHAS composite score. 
In accordance with the PIH notice, all official troubled/substandard 
designations (with the exception of substandard management operations 
indicator designations), beginning with PHAs with June 30, 2000, fiscal 
year end dates, were held in abeyance prior to HUD's March 1, 2001, 
submission date.
    Given these recent events, HUD has determined that full 
implementation of PHAS should be further deferred until after June 30, 
2001. Accordingly, PHAs with fiscal years ending June 30, 2000, through 
June 30, 2001, will receive an assessment solely 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 regulations (PHAS Indicator #3, 
Management Operations), as amended by the January 11, 2000, final rule, 
and corrected by the June 6, 2000, PHAS Technical Correction.
    Further, it is the Department's intent to meet with public housing 
stakeholders (such as PHAs, representatives of PHAs, public housing 
residents, representatives of PHAs and residents, housing advocacy 
representatives, governmental representatives and other groups HUD may 
identify) and seek their input to identify any necessary modifications 
to the rule and to publish, if appropriate, a new amended PHAS rule to 
address changes. Through these meetings, HUD is not seeking consensus 
advice, but only feedback on experiences with the PHAS, identification 
of problems and recommendations for modifications. In the interim, 
modified PHAS scores, as established by appropriate procedures and 
notification, may be issued to PHAs with fiscal years ending on 
September 30, 2001, December 31, 2001, March 31, 2002, and June 30, 
2002. The following sets out the timetable for issuance of PHAS 
advisory scores and official MASS scores.

Revised Timetable

PHAs With Fiscal Years Ending 6/30/00, 9/30/00, 12/31/00, 3/31/01 and 
6/30/01

    For PHAs with fiscal years ending June 30, 2000, September 30, 
2000, December 31, 2000, March 31, 2001, and June 30, 2001, 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:
    Management Assessment Score. PHAs with a fiscal year ending June 
30, 2000, September 30, 2000, December 31, 2000, March 31, 2001, or 
June 30, 2001, will receive an official assessment score on the basis 
of HUD's assessment of the PHA's management operations in accordance 
with 24 CFR part 902,

[[Page 29343]]

subpart D of the PHAS regulation (PHAS Indicator #3, Management 
Operations).
    1. A PHA may be designated troubled (substandard management) as a 
result of the management operations assessment score.
    2. A PHA may appeal its management operations score in accordance 
with 24 CFR 902.69.
    PHAS Advisory Score. PHAs with a fiscal year ending June 30, 2000, 
September 30, 2000, December 31, 2000, March 31, 2001, or June 30, 
2001, 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 
Condition Standards inspection protocol. However, PHAs with an overall 
score in the PHAS Physical Condition indicator of at least 80 percent 
of the 30 available points (or 24 points) will not be inspected this 
fiscal year. The physical inspection scores from last year will be 
utilized to calculate the PHAS advisory scores for these PHAs.
    2. All PHAs are required to document the correction or abatement of 
exigent health and safety hazards in accordance with PHAS requirements 
and should provide Field Offices with certification of such action(s).
    3. PHAs must comply with the reporting requirements of PHAS, and be 
assessed by HUD under the PHAS on an advisory basis.
    4. PHAs may not appeal advisory scores, but are encouraged to take 
advantage of the technical review process for the Physical Condition 
indicator and the Resident Service and Satisfaction indicator (24 CFR 
part 902.68). Also available under the Physical Condition indicator is 
the database adjustment (24 CFR part 902.25).
    5. Notwithstanding the automatic designations generated by the 
Department's technological systems, all designations other than MASS 
troubled (substandard management) will be held in abeyance, as well as 
any incentives that are awarded for such designations.

PHAs With Fiscal Years Ending After
6/30/01

    Since it is the intent of the Department to conduct informal 
consultations with PHAs, residents, and others interested in public 
housing, on ways to improve HUD's on-going methodology and procedures 
for assessing the performance of public housing agencies, and these 
informal consultations are expected to commence within the near future 
and continue periodically throughNovember 2001; PHAs with fiscal years 
ending after June 30, 2001 through June 30, 2002, may be issued 
modified PHAS scores as established by appropriate procedures and 
notification.

    Dated: May 22, 2001.
Gloria Cousar,
Acting General Deputy Assistant Secretary for Public and Indian 
Housing.
Barbara Burkhalter,
Deputy Director, Real Estate Assessment Center.
[FR Doc. 01-13487 Filed 5-29-01; 8:45 am]
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