7460.5

CHAPTER 2. DEFINITIONS

2-1 OBJECTIVE. The objective of this Chapter is to provide definitions

for frequently used terms and procedures.

2-2 DEFINITION OF TERMS.

A. Accountability monitoring is a strategy to identify the program

participants (PHAs) that pose the greatest risk to program

missions and that are most susceptible to fraud, waste and

mismanagement. Monitoring reviews and resources are to be

adjusted through a risk analysis process that will determine what

is to be reviewed, and who is to be reviewed based on the overall

risk posed by the participants. The concept also requires the use

of administrative sanctions to protect programs from continued

noncompliance or the poor performance of participants. This

targeting is accomplished by staff identifying high risk

participants as a result of an Annual Performance Review as

defined in paragraph F, below.

B. Action taken means the issuance of a work order to correct the

problem where systems are involved. 24 CFR 901.05(a)

C. Actual vacancy rate means the percent of vacancies after excluding

the permitted exemptions, expressed as a percentage. It is the

number of vacant units divided by the total number of units

available for occupancy and multiplied by 100. 24 CFR

901.05(b)

D. Adjusted vacancy rate means the percent of vacancies after

deducting units included in a funded on-schedule modernization

program from the actual vacancy rate. 24 CFR 901.05(c)

E. Annual average means an average computation of a PHA\'s immediate

past fiscal year for applicable indicators. 24 CFR 901.05(d)

F. Annual performance review is the annual review of a PHA\'s

performance using the Performance Profile Module in the System for

Management Information Retrieval-Public Housing (SMIRPH) or Form

HUD-52413, PHA Performance Profile, and other available data in

addition to the indicators; e.g., modernization reports,

maintenance and management reviews, Office of Inspector General

audits, etc.

G. Annual vacancy rate means the percent or number of vacancies,

after deducting: 24 CFR 901.05(e)

2-1 3/92

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

7460.5

Chapter 2, paragraph 2-2G (continued)

1\. Vacant units that HUD has approved for demolition or

disposition; 24 CFR 901.05(e)(1)

2\. Vacant units in which resident property has been abandoned,

but only if State law requires the property to be left in

the unit for some period of time, and only for the period

stated in the law; 24 CFR 901.05(e) (2)

3\. Vacant units that have sustained casualty damage and are

being held off the market to allow adjustment of the

insurance claim; and 24 CFR 901.05(e)(3)

4\. Units that are occupied by employees of the PHA and

non-dwelling units that are converted to non-dwelling use

with HUD approval, including units that are utilized for

resident services or are under lease to a non-dwelling

tenant in the normal course of project operation. 24 CFR

901.05(e)(4)

H. Assistant Secretary means the Assistant Secretary for Public and

Indian Housing of the Department. 24 CFR 901.05(f)

I. Confirmatory review may be performed by a Field Office on a risk

analysis basis. It is an on-site review of the data a PHA

certified to as part of the PHMAP assessment of a PHA\'s

operation under some or all of the indicators included in PHMAP.

The confirmatory review is performed for the purposes of Field

Office verification of the data to which a PHA certified and the

accuracy of the data derived from Field Office files. 24 CFR

901.05 (g)

J. Correct means to improve performance in an indicator to a level

of grade \"C\" or better. 24 CFR 901.05(h)

K. Current dwelling rent charged refers to the resident dwelling

rent charges reflected in the monthly rent roll(s), and excludes

retroactive rent charges, maintenance charges, excess utility

charges, late charges, and any other charges not specifically

identified as dwelling rent. 24 CFR 901.05(i)

L. Cyclical work orders refers to work orders that are performed on

a seasonal basis, or in accordance with warranty requirements,

or as part of a preventive maintenance program. 24 CFR

901.05(j)

3/92 2-2

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

7460.5

Chapter 2, paragraph 2-2 (continued)

M. Deficiency means any grade below \"C\" in an indicator. 24 CFR

901.05 (k)

N. Demonstrates progress means that the time required to complete

all work orders has been reduced during the most recent

three-year period. 24 CFR 901.05(l)

O. Department or HUD means the U.S. Department of Housing and Urban

Development. 24 CFR 901.05(m)

P. Emergency means physical work items that pose an immediate threat

to the life, health and safety of residents, or that are related

to fire safety. 24 CFR 901.05(n)

Q. Emergency status abated means the emergency situation was abated

within 24 hours with completion of needed repairs and/or

replacements made at a later time. 24 CFR 901.05(o)

R. Exclusion of an indicator or component means that the indicator

or component is entirely excluded from a PHA\'s PHMAP assessment.

S. Formal up-to-date repayment agreement means a signed agreement

between a PHA and a resident stating the terms and amounts that a

resident is repaying to a PHA, and the resident is in compliance

and current with the terms of the repayment agreement; i.e., the

resident is remitting a specified amount on specific dates with

no lapse in remittance. 24 CFR 901.05(p)

T. Grade is one of up to six levels a PHA may obtain for each

indicator and component during a PHMAP assessment. The grading

system includes grades \"A\" through \"F\" in some cases, grades \"A\",

\"C\" and \"F\" in some cases, and grades \"A\" and \"F\" in some cases.

U. HQS means Housing Quality Standards as set forth at 24 CFR

882.109 and amended by the Lead Based Paint regulation at 24

CFR 35. 24 CFR 901.05(q)

V. Improvement plan (IP) is a document developed by the PHA,

specifying the actions to be taken, including timetables, to

correct deficiencies of failed indicators identified as a result

of the PHMAP assessment when an MOA is not required.

2-3 3/92

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

7460.5

Chapter 2, paragraph 2-2 (continued)

W. Indicators means the major categories of PHA management functions

that are examined under the PHMAP for assessment purposes. The

NAHA provides seven specific indicators to be used to assess the

overall management performance of PHAs and to designate troubled

and mod-troubled PHAs. The NAHA also permits the use of \"an

additional five\" indicators as HUD deems appropriate, and HUD has

identified five other indicators that are used for management

assessment. The terms \"indicators\" and \"factors\" are used

interchangeably in this Handbook to denote measures of PHA

performance. Strictly speaking in the terminology of the NAHA,

however, \"indicators\" refers to the seven statutory or required

measures of performance listed in the NAHA and \"factors\" refers

to the additional measures of performance or indicators that HUD

uses for management assessment. Three of the indicators consist

of components. The PHMAP indicators and components are as

follows: (6)(j)(1)(A), (B), (C), (D), (E), (F), (G) and (H) of

the Act and 24 CFR 901.05(r)

1\. Indicator #1, vacancy number and percentage; (6)(j)(1)(A)

of the Act and 24 CFR 901.05(r) and 901.10(b)(1)

2\. Indicator #2, modernization; (6)(j)(1)(B) of the Act and

24 CFR 901.05(r) and 901.10(b)(2)

a\. Component #1, unexpended funds over three years old;

(6)(j) (1)(B) of the Act and 24 CFR 901.05(r) and

901.10(b)(2)(i)

b\. Component #2, timeliness of fund obligation;

(6)(j)(1)(B) of the Act and 24 CFR 901.05(r) and

901.10(b)(2)(ii)

c\. Component #3, contract administration; (6)(j)(1)(B) of

the Act and 24 CFR 901.05(r) and 901.10(b)(2)(iii)

d\. Component #4, quality of the physical work;

(6)(j)(1)(B) of the Act and 24 CFR 901.05(r) and

901.10(b)(2)(iv)

e\. Component #5, budget controls; (6)(j)(1)(B) of the Act

and 24 CFR 901.05(r) and 901.10(b)(2)(v)

3\. Indicator #3, rents uncollected; (6)(j)(1)(C) of the Act

and 24 CFR 901.05(r) and 901.10(b)(3)

3/92 2-4

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

7460.5

Chapter 2, paragraph 2-2W (continued)

4\. Indicator #4, energy consumption; (6)(i)(1)(D) of the Act

and 24 CFR 901.05(r) and 901.10(b)(4)

5\. Indicator #5, unit turnaround; (6)(j)(1)(E) of the Act

and 24 CFR 901.05(r) and 901.10(b)(5)

6\. Indicator #6, outstanding work orders; (6)(j)(1)(F) of

the Act and 24 CFR 901.05(r) and 901.10(b)(6)

7\. Indicator #7, annual inspection and condition of units and

systems; (6)(j)(1)(G) of the Act and 24 CFR 901.05(r)

and 901.10(b)(7)

a\. Component #1, system to track inspection and repair of

units and systems; (6)(j)(1)(G) of the Act and 24

CFR 901.05(r) and 901.10(b)(7)(i)

b\. Component #2, annual inspection of units;

(6)(j)(1)(G) of the Act and 24 CFR 901.05(r) and

901.10(b)(7)(ii)

c\. Component #3, correction of unit deficiencies;

(6)(j)(1)(G) of the Act and 24 CFR 901.05(r) and

901.10(b)(7)(iii)

d\. Component #4, inspection and repair of systems;

(6)(j)(1)(G) of the Act and 24 CFR 901.05(r) and

901.10(b)(7)(iv)

8\. Indicator #8, tenants accounts receivable; (6)(j)(1)(H)

of the Act and 24 CFR 901.05(r) and 901.10(b)(8)

9\. Indicator #9, operating reserves; (6)(j)(1)(H) of the Act

and 24 CFR 901.05(r) and 901.10(b)(9)

10\. Indicator #10, routine operating expenses; (6)(j)(1)(H)

of the Act and 24 CFR 901.05(r) and 901.10(b)(10))

11\. Indicator #11, resident initiatives; (6)(j)(1)(H) of the

Act and 24 CFR 901.05(r) and 901.10(b)(11)

12\. Indicator #12, development; (6)(j)(1)(H) of the Act and

24 CFR 901.05(r) and 901.10(b)(12)

2-5 3/92

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

7460.5

Chapter 2, paragraph 2-2W12 (continued)

a\. Component #1, quality of contract administration;

(6)(j)(1) (H) of the Act and 24 CFR 901.05(r) and

901.10(b)(12)(i)

b\. Component #2, timeliness of development;

(6)(j)(1)(H) of the Act and 24 CFR 901.05(r) and

901.10(b)(12)(ii)

c\. Component #3, quality of the physical work; and

(6)(j)(1)(H) of the Act and 24 CFR 901.05(r) and

901.10(b)(12)(iii)

d\. Component #4, budget controls. (6)(j)(1)(H) of the

Act and 24 CFR 901.05(r) and 901.10(b)(12)(iv)

X. Memorandum of Agreement (MOA) is a binding contractual

agreement between HUD and a troubled or mod-troubled PHA

designed to bring about significant, expeditious and

long-lasting improvements in the PHA\'s management of its

PHA-owned units. An MOA is required for each PHA designated as

troubled and/or mod-troubled. (6)(j)(1)(B) of the Act and 24

CFR 901.140

Y. Modification of an indicator or component modifies the

expectation of an indicator or component to take into

consideration a PHA\'s unique and unusual circumstances.

Z. Mod-troubled PHA is a PHA which receives a total weighted PHMAP

modernization score on indicator #2 (modernization) of less

than 60% and is designated as troubled with respect to the

program under 14 (Public Housing Modernization Program).

(6)(j)(2)(A)(i) of the Act and 24 CFR 901.115(d) and

901.150

AA. Monitoring findings mean findings that were determined as a

result of an on-site HUD review and/or physical inspection and

transmitted in writing by HUD to the PHA. 24 CFR 901.05(s)

BB. Performance targets are targets to be achieved by a PHA

following the identification of deficiencies within the PHA\'s

operation. They are set forth in the Improvement Plan (IP) and

Memorandum of Agreement (MOA), as appropriate.

(6)(j)(2)(B)(i) of the Act and 24 CFR 901.140(a)(2)

CC\. PHA Performance Profile module in the System for Management

Information Retrieval - Public Housing (SMIRPH), or Form

HUD-52413, PHA Performance Profile, is a document used to

record information

3/92 2-6

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

7460.5

Chapter 2, paragraph 2-2CC (continued)

regarding all of the indicators within all program areas of a

PHAs PHMAP assessment. It is updated annually within 90 calendar

days after the due date for PHA certification submission and used

in conjunction with other available data to assess the management

performance of PHAs in all major areas of management operations.

DD. Program Areas are major areas of a PHA\'s operation, such as

general management, occupancy, maintenance operations, financial

management, procurement, utilities, modernization, development or

residents\' quality of life.

EE. Public Housing Management Assessment Program (PHMAP) implements

section 502(a) of the NAHA. PHMAP sets forth policies and

procedures for the Department to assess the management

performance of PHAs in all major areas of management operations

and identify PHA management capabilities, identify

high-performing PHAs, designate criteria for defining and

improving the management operations of troubled and mod-troubled

PHAs, and impose sanctions for poor performance. (6)(j)(1) of

the Act and 24 CFR 901.01(a)

FF. Rents uncollected means unpaid resident dwelling rent for

residents in possession. 24 CFR 901.05(u)

GG. Risk analysis is a procedure to target scarce staff and travel

resources to PHAs which have the highest potential for fraud,

waste, mismanagement or poor performance. In carrying out risk

analysis, Field Offices should identify those PHAs which warrant

special attention and ensure that the depth of the review is

commensurate with the level of vulnerability.

HH. Significant finding in indicator (12), development, means

statutory, regulatory or health/safety violations. 24 CFR

901.05(v)

II\. Significant monitoring findings in indicator #2, modernization,

component #3, contract administration, means written findings

based on the monitoring reviews as recorded by the Monitoring

Checklist, set forth in Appendix 18 of the Comprehensive

Improvement Assistance Program (CIAP) Handbook 7485.1, as

revised, or other equivalent review. Significant findings relate

to any question under Sections II, III, and IV which received a

\"no\" answer, excluding the following: Section II, exclude the

items related to the use of Form HUD-51915, Monitoring Checklist,

Appendix 18 of the Comprehensive Improvement Assistance Program

(CIAP) Handbook 7485.1,

2-7 3/92

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

7460.5

Chapter 2, paragraph 2-2II (continued)

as revised, and changing the current threshold; Section III,

exclude item related to changing the current threshold; and

Section IV, exclude items related to changing the current

threshold, notifying Field Office of scheduled final

inspection, and submitting required settlement documents to

the Field Office. 24 CFR 901.05(w))

JJ. Significant monitoring finding in indicator #2, modernization,

component #4, quality of physical work, means written findings

based on the monitoring reviews as recorded by Form HUD-51915,

Monitoring Checklist, Appendix 18 of the Comprehensive

Improvement Assistance Program (CIAP) Handbook 7485.1, as

revised, or other equivalent review. Significant findings

relate to any question under Section I which received a \"no\"

answer, excluding the item relating to keeping the premises

free from accumulated waste materials caused by the

contractor. 24 CFR 901.05(x)

KK. Substantial default means a PHA is determined by the

Department to be in violation of statutory, regulatory or

contractual provisions or requirements, whether or not these

violations would constitute a substantial default or a

substantial breach under explicit provisions of the relevant

Annual Contributions Contract or a Memorandum of Agreement.

24 CFR 901.05(y)

LL. Troubled PHA is a PHA identified by the PHMAP assessment as

having problems in major areas of management operations and

achieves a total weighted PHMAP score of less than 60% and is

designated as troubled. (6)(j)(2)(A)(i) of the Act and 24

CFR 901.115(c)

2-3 STAFF RESPONSIBILITIES. The assignment of the responsibilities

covered in this Handbook shall be at the discretion of the Regional

Administrator or Field Office Manager.

3/92 2-8