7460.5

CHAPTER 6. INDICATORS AND COMPONENTS

6-1 OBJECTIVE. The objective of this Chapter is to provide a listing of

the indicators and components used in a PHA\'s PHMAP assessment.

6-2 STATUTORY INDICATORS (AND COMPONENTS) USED FOR THE PHMAP

ASSESSMENT. The following is a listing of the indicators required by

statute to be used to evaluate the management performance of PHAs,

with the current scoring components, weights, data source and other

explanatory matters to be considered with each. (6)(j)(1) of the

Act and 24 CFR §901.10(a)

A. Indicator #1, vacancy number and percentage. This indicator

examines the number and percentage of vacancies within an agency\'s

inventory, including the progress that an agency has made within

the previous three years to reduce such vacancies. It will be

acceptable for the PHA to use the vacancy rate or number of vacant

units using data reported on the Form HUD-51234, Report on

Occupancy, The Public and Indian Housing Occupancy Reporting

Handbook 7465.3, as revised, Appendix 1. At its option, a PHA

may construct and use an actual average vacancy rate or average

number of vacant units using rent roll records for the month

ending six months before the start of its budget year.

(6)(j)(1)(A) of the Act and 24 CFR 901.10(b)(1)

1\. Units in the following categories shall not be included in

this calculation: 24 CFR 901.10(b)(1)

a\. Vacant units in an approved demolition or disposition

program; 24 CFR 901.10(b)(1)(i)

b\. 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 901.10(b)(1)(ii)

c\. Vacant units that have sustained property/casualty damage,

but only until the insurance claim is adjusted; and 24

CFR 901.10(b)(1)(iii)

d\. Units that are occupied by employees (Form HUD-51234,

Report on Occupancy, The Public and Indian Housing

Occupancy Reporting Handbook 7465.3, as revised, Appendix

1, column 6) of the PHA and non-dwelling units that are

converted to non-dwelling

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7460.5

Chapter 6, paragraph 6-2A1d (continued)

use with HUD approval, including units that are utilized

for resident services (Form HUD-51234, Report on Occupancy,

The Public and Indian Housing Occupancy Reporting Handbook

7465.3, as revised, Appendix 1, column 7) or are under lease to

a non-dwelling tenant in the normal course of project operation.

24 CFR 901.10(b)(1)(iv)

2\. Grade A: An actual vacancy percentage of 1% or less. 24 CFR

901.10(b)(1)(v)

3\. Grade B: An actual vacancy percentage of greater than 1% and less

than or equal to 2%, or the PHA has an equivalent of three or fewer

vacant units. 24 CFR 901.10(b)(1)(vi)

4\. Grade C: The PHA is in one of the following categories: 24 CFR

901.10(b)(1)(vii)

a\. An actual vacancy percentage of greater than 2% and less than or

equal to 3%, or the PHA has an equivalent of four or five vacant

units; or 24 CFR 901.10(b)(1)(Vii)(A)

b\. An adjusted vacancy percentage of 3% or less after permitted

adjusting for funded on-schedule modernization; or 24 CFR

901.10(b)(1)(vii)(B)

c\. The PHA has reduced actual vacancies over the past three years

by at least 30%. 24 CFR 901.10(b)(1)(Vii)(C)

5\. Grade D: The PHA is in one of the following categories: 24 CFR

901.10(b)(1)(viii)

a\. An actual vacancy percentage of greater than 3% and less than or

equal to 6%; or 24 CFR 901.10(b)(1)(Viii)(A)

b\. An adjusted vacancy percentage of greater than 3% and less than

or equal to 5% after permitted adjusting for funded on-schedule

modernization; or 24 CFR 901.10(b)(1)(Viii)(B)

c\. The PHA has reduced actual vacancies over the past three years

by at least 10%. 24 CFR 901.10(b)(1)(viii)(C)

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7460.5

Chapter 6, paragraph 6-2A (continued)

6\. Grade E: The PHA is in one of the following categories: 24 CFR

901.10(b)(1)(ix)

a\. An actual vacancy percentage of greater than 6% and less than or

equal to 8%; or 24 CFR 901.10(b)(1)(ix)(A)

b\. An adjusted vacancy percentage of less than or equal to 7% after

permitted adjusting for funded on-schedule modernization; or 24

CFR 901.10(b)(1)(ix)(B)

c\. The PHA has reduced actual vacancies over the past three years

less than 10%. 24 CFR 901.10(b)(1)(ix)(C)

7\. Grade F: The PHA is in one of the following categories: 24 CFR

901.10(b)(1)(x)

a\. An actual vacancy percentage of greater than 8%; or 24 CFR

901.10(b)(1)(x)(A)

b\. An adjusted vacancy percentage of greater than 7% after

permitted adjusting for funded on-schedule modernization and the

PHA has not reduced actual vacancies over the past three years.

24 CFR 901.10(b)(1)(x)(B)

8\. This indicator has a scoring weight of x3. 24 CFR 901.10(b)(1)

9\. Indicator #1, vacancy number and percentage, requirements.

a\. A vacant unit is a dwelling unit that is not under lease to an

eligible family and has not been approved for temporary or

long-term non-dwelling use in the normal course of project

operation.

b\. The formula used to compute the actual vacancy rate is:

\(1\) The number of vacant units (less stated exemptions); divided

by;

\(2\) The total number of units available for occupancy (less

stated exemptions) and multiplied by 100.

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7460.5

Chapter 6, paragraph 6-2A9 (continued)

c\. A PHA has a choice of reporting dates to use in the calculation of

this indicator.

\(1\) The first time period is the last day of the month ending six

months after the beginning the PHA\'s immediate past fiscal

year. The data in the chart below shows the relationship

between the budget year starting date and the reporting date

when the actual day is utilized.

Report Date,

Budget Year Beginning Date As of

January 1 June 30

April 1 September 30

July 1 December 31

October 1 March 31

\(2\) As an alternative to utilizing occupancy data as of a

particular day, a PHA may construct an actual occupancy

percentage using the average from the rent roll records for

the entire month ending six months after the beginning of a

PHA\'s immediate past fiscal year. For example, a PHA with

a budget year beginning January 1, 1991, could determine its

occupancy percentage either as of June 30, 1991, or as an

average for the entire month of June 1991.

d\. Data source: a PHA shall certify to this indicator within 90

calendar days after its fiscal year begins (FYB) utilizing Form

HUD-51234, Report on Occupancy, The Public and Indian

Housing Occupancy Reporting Handbook 7465.3, as revised,

Appendix 1, or PHA rent roll data.

\(1\) Certification shall be for the average vacancy rate for the

reporting month, or a snapshot picture of the last day of the

reporting month.

\(2\) Documentation verifying this indicator shall be maintained by

the PHA for HUD post-review.

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7460.5

Chapter 6, paragraph 6-2A (continued)

10\. Indicator #1, vacancy number and percentage, guidance.

a\. The term \"insurance claim is adjusted\" means the time from when

the property/casualty damage occurred and the unit became

vacant to the time the claim check is received by the PHA.

b\. The term \"actual vacancy percentage\" means the percent or

number of vacancies after deducting units included in paragraph

6-2A1, above.

c\. The term \"adjusted vacancy percentage\" means the percent of

vacancies after deducting units included in a funded on-schedule

modernization program.

d\. The term \"funded on-schedule modernization\" means the PHA is

adhering to its approved project implementation schedule or is

meeting an approved time extension as of the end of its

immediate past fiscal year.

\(1\) A unit shall be exempted from the calculation of this

indicator only if the approved implementation schedule

includes the necessity of vacating the unit. For example:

the approved project implementation schedule includes the

replacement of roofs and it is not necessary to vacate the

units to replace the roofs; such units shall not be exempted

from the calculation of this indicator.

\(2\) A unit shall be exempted from the calculation of this

indicator only if the approved project implementation

schedule includes a relocation plan and the relocation plan

clearly states when relocation will occur.

\(3\) A unit shall be exempted from the calculation of this

indicator only if the modernization program is at a point in

the approved project implementation schedule where it is

necessary to vacate the unit. For example: a unit should

not be vacated when the architect is hired; it should be

vacated at the relocation stage of the approved project

implementation schedule.

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7460.5

Chapter 6, paragraph 6-2A10 (continued)

e\. The phrase \"progress in the previous three years\" means a

decrease in the percent of vacancies in the previous three

years, after permitted adjusting for funded on-schedule

modernization.

f\. An optional worksheet that PHA\'s may use for calculating this

indicator is included in Appendix 5 of this Handbook. A

sample worksheet showing the calculation of vacancy number and

percentage immediately follows the optional worksheet in

Appendix 5.

B. Indicator #2, modernization. This indicator examines the amount and

percentage of funds obligated to public housing agencies under 14,

which remain unexpended after three years; and the management of the

program under 14 for the modernization and rehabilitation of public

housing units and developments. (6)(j)(1)(B) of the Act and 24 CFR

901.10(b)(2)

1\. Component #1 - unexpended funds over three years old.

(6)(j)(1)(B) of the Act and 24 CFR 901.10(b)(2)(i)

a\. Grade A: The PHA has no unexpended funds over three years

old or if the PHA has unexpended funds over three years old,

the PHA can demonstrate that the approved original or revised

project implementation schedule(s) gives the PHA longer than

three years, or there are valid reasons outside of the PHA\'s

control for the unexpended funds, such as litigation, HUD or

other institutional delay, extended labor strikes or extended

material shortages. 24 CFR 901.10(b)(2)(i)(A)

b\. Grade F: The PHA has unexpended funds over three years old,

but cannot demonstrate that the approved original or revised

project implementation schedule(s) gives the PHA longer than

three years or that there are valid reasons outside of the

PHA\'s control for the unexpended funds. 24 CFR

901.10(b)(2)(i)(B)

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

weight of x2. 24 CFR 901.10(b)(2)(i)

d\. Component #1 requirement. This component assesses

unexpended funds over the preceding three Federal Fiscal Years

(FFYs), rather than the PHA\'s fiscal years.

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7460.5

Chapter 6, paragraph 6-2B1 (continued)

e\. Component #1 guidance.

\(1\) The term \"funds unexpended over three years old\" means

funds that are unspent, regardless of obligation status.

Expended funds reflect completion of planned work.

Completion of planned work is the ultimate objective of

modernization in order to improve living conditions for

residents.

\(2\) This component has exclusions which cover longer time

frames in the approved project implementation schedule, as

well as exemptions for valid delays outside of a PHA\'s

control.

\(3\) Where a PHA has unexpended funds over three years old,

but has not reached the fund expenditure deadline in the

latest approved project implementation schedule, the PHA is

not penalized for having such funds unexpended.

\(4\) Where a PHA has unexpended funds after the fund

expenditure deadline in its approved project implementation

schedule, but has yet to reach the three-year deadline for

the PHMAP, it is not penalized for having such funds

unexpended.

\(5\) It is not the intent of the Department to force the

resolution of contract disputes or for a PHA to surrender

valid claims against contractors. However, a PHA should

exert maximum effort to resolve contract disputes which can

result in delays in completing scheduled work, without

compromising its contractual rights.

2\. Component #2 - timeliness of fund obligation. 24 CFR 901.10(b)(2)

\(ii\)

a\. Grade A: For any obligation deadline dates occurring in the

preceding Federal Fiscal Year (FFY), the PHA has obligated

100% of its funds by the obligation dates in its approved original

project implementation schedule(s) or approved revised

schedule(s) where time extensions were granted for valid reasons

outside of the PHA\'s control, such as litigation, HUD or other

6-7 3/92

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7460.5

Chapter 6, paragraph 6-2B2a (continued)

institutional delay, extended labor strikes, extended material

shortages, or need to use leftover funds. 24 CFR 901.10(b)(2)

(ii)(A)

b\. Grade F: For any obligation deadline dates occurring in the

preceding Federal Fiscal Year, the PHA has obligated less than

100% of its approved funds by the obligation dates in its

approved project implementation schedule(s) or approved revised

schedule(s), or received approval for time extensions due to

reasons within the PHA\'s control, or has continued to obligate

funds after the latest approved obligation deadline date. 24 CFR

901.10(b)(2)(ii)(B)

c\. Component #2, timeliness of fund obligation, has a weight of x1.

24 CFR 901.10(b)(2)(ii)

d\. Component #2 requirement. This component assesses obligation

deadline dates in the preceding FFY, rather than the PHA\'s fiscal

year.

e\. Component #2 guidance.

\(1\) It is the responsibility of the PHA under the Comprehensive

Improvement Assistance Program (CIAP), when it

determines that it will not be able to meet the fund

obligation deadline date in the original project

implementation schedule, to request a time extension, where

there are valid reasons outside of the PHA\'s control.

\(2\) The funds included in valid HUD extensions are factored in

as follows: all funds which are covered by the extension

would be removed from the calculation for determining

unobligated funds and therefore would not adversely impact

on the PHA\'s overall unobligated percentage.

3\. Component #3 - contract administration. 24 CFR 901.10(b)(2)

\(iii\)

a\. Grade A: Based on HUD\'s on-site physical inspection(s)

performed within the preceding 12 months or, where no on-site

physical inspection(s) were performed within the preceding 12

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7460.5

Chapter 6, paragraph 6-2B3a (continued)

months, based on HUD\'s latest on-site physical inspection, there

are no significant monitoring findings related to contract

administration. 24 CFR 901.10(b)(2)(iii)(A)

b\. Grade B: Based on HUD\'s on-site physical inspection(s)

performed within the preceding 12 months or, where no on-site

physical inspection(s) were performed within the preceding 12

months, based on HUD\'s latest on-site physical inspection, there

are no more than two significant monitoring findings related to

contract administration and the PHA has corrected or is in the

process of correcting those monitoring findings related to contract

administration. 24 CFR 901.10(b)(2)(iii)(B)

c\. Grade C: Based on HUD\'s on-site physical inspection(s)

performed within the preceding 12 months or, where no on-site

physical inspection(s) were performed within the preceding 12

months, based on HUD\'s latest on-site physical inspection, there

are no more than four significant monitoring findings related to

contract administration and the PHA has corrected or is in the

process of correcting those significant monitoring findings related

to contract administration. 24 CFR 901.10(b)(2)(iii)(C)

d\. Grade D: Based on HUD\'s on-site physical inspection(s)

performed within the preceding 12 months or, where no on-site

physical inspection(s) were performed within the preceding 12

months, based on HUD\'s latest on-site physical inspection, there

are no more than six significant monitoring findings related to

contract administration and the PHA has corrected or is in the

process of correcting those significant monitoring findings related

to contract administration. 24 CFR 901.10(b)(2)(iii)(D)

e\. Grade E: Based on HUD\'s on-site physical inspection(s)

performed within the preceding 12 months or, where no on-site

physical inspection(s) were performed within the preceding 12

months, based on HUD\'s latest on-site physical inspection, there

are more than six significant monitoring findings related to

contract administration and the PHA has corrected or in the

process of correcting those significant monitoring findings related

to contract administration. 24 CFR 901.10(b)(2)(iii)(E)

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7460.5

Chapter 6, paragraph 6-2B3 (continued)

f\. Grade F: Based on HUD\'s on-site physical inspection(s)

performed within the preceding 12 months or, where no on-site

physical inspection(s) were performed within the preceding 12

months, based on HUD\'s latest on-site physical inspection, any

actions taken to correct significant monitoring findings related

to contract administration have not resulted in progress toward

correction. 24 CFR 901.10(b)(2)(iii)(F)

g\. Component #3, contract administration, has a weight of x1. 24

CFR 901.10(b)(2)(iii)

h\. Component #3 requirement. This component assesses a PHA\'s

immediate past fiscal year.

i\. Component #3 guidance. The term \"significant monitoring

findings\" for component #3, contract administration, means

written findings based on the monitoring reviews as recorded by

the Monitoring Checklist, Sections II-IV (Appendix 18 of the

CIAP Handbook, as revised), or where an equivalent review was

conducted. Significant monitoring findings relate to any question

under Sections II - IV which received a \"No\" answer, excluding

the following:

\(1\) Section II, exclude the items related to the use of Form

HUD-51234, Report on Occupancy, The Public and Indian

Housing Occupancy Reporting Handbook 7465.3, as revised,

Appendix 1, and changing the current threshold;

\(2\) Section III, exclude the items related to changing the

current threshold; and

\(3\) Section IV, exclude the items related to changing the current

threshold, notifying the Field Office of scheduled final

inspection, and submitting required settlement documents to

the Field Office.

4\. Component #4 - quality of the physical work. 24 CFR 901.10(b)(2)

\(iv\)

a\. Grade A: Based on HUD\'s latest on-site physical inspection(s)

performed within the preceding 12 months or, where no on-site

3/92 6-10

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7460.5

Chapter 6, paragraph 6-2B4a (continued)

physical inspection(s) were performed within the preceding 12

months, based on HUD\'s latest on-site physical inspection, the

PHA is carrying out the physical work in accordance with the

HUD-approved plans and specifications or within the limits of the

HUD-established threshold for contract modifications, and there

are no significant monitoring findings related to the quality of

physical work or inspections. 24 CFR 901.10(b)(2)(iv)(A)

b\. Grade B: Based on HUD\'s latest on-site physical inspection(s)

performed within the preceding 12 months or, where no on-site

physical inspection(s) were performed within the preceding 12

months, based on HUD\'s latest on-site physical inspection, the

PHA is carrying out the physical work in accordance with the

HUD-approved plans and specifications or within the limits of the

HUD-established threshold for contract modifications, and there

are no more than two significant monitoring findings related to

the quality of physical work or inspections, and the PHA has

corrected or is in the process of correcting those significant

monitoring findings related to the quality of physical work or

inspections. 24 CFR 901.10(b)(2)(iv)(B)

c\. Grade C: Based on HUD\'s latest on-site physical inspection(s)

performed within the preceding 12 months or, where no on-site

physical inspection(s) were performed within the preceding 12

months, based on HUD\'s latest on-site physical inspection, the

PHA is carrying out the physical work in accordance with the

HUD-approved plans and specifications or within the limits of the

HUD-established threshold for contract modifications, and there

are no more than four significant monitoring findings related to

the quality of physical work or inspections, and the PHA has

corrected or is in the process of correcting those significant

monitoring findings related to the quality of physical work or

inspections. 24 CFR 901.10(b)(2)(iv)(C)

d\. Grade D: Based on HUD\'s latest on-site physical inspection(s)

performed within the preceding 12 months or, where no on-site

physical inspection(s) were performed within the preceding 12

months, based on HUD\'s latest on-site physical inspection, the

PHA is carrying out the physical work in accordance with the

HUD-approved plans and specifications or within the limits of the

HUD-established threshold for contract modifications, and there

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7460.5

Chapter 6, paragraph 6-2B4d (continued)

are no more than six significant monitoring findings related to

the quality of physical work or inspections, and the PHA has

corrected or is in the process of correcting those significant

monitoring findings related to the quality of physical work or

inspections. 24 CFR 901.10(b)(2)(iv)(D)

e\. Grade E: Based on HUD\'s latest on-site physical inspection(s)

performed within the preceding 12 months or, where no on-site

physical inspection(s) were performed within the preceding 12

months, based on HUD\'s latest on-site physical inspection, the

PHA is carrying out the physical work in accordance with the

HUD-approved plans and specifications or within the limits of the

HUD-established threshold for contract modifications, and there

are more than six significant monitoring findings related to the

quality of physical work or inspections, and the PHA has

corrected or is in the process of correcting those significant

monitoring findings related to the quality of physical work or

inspections. 24 CFR 901.10(b)(2)(iv)(E)

f\. Grade F: Based on HUD\'s latest on-site physical inspection(s)

performed within the preceding 12 months or, where no on-site

physical inspection(s) were performed within the preceding 12

months, based on HUD\'s latest on-site physical inspection, the

PHA is not carrying out the physical work in accordance with the

HUD-approved plans and specifications or within the limits of the

HUD-established threshold for contract modifications, or any

actions taken to correct significant monitoring findings related

to the quality of physical work or inspections have not resulted

in progress toward correction. 24 CFR 901.10(b)(2)(iv)(F)

g\. Component #4, quality of the physical work, has a weight of x3.

24 CFR 901.10(b)(2)(iv)

h\. Component #4 requirement. This component assesses a PHA\'s

immediate past fiscal year.

i\. Component #4 guidance.

\(1\) The term \"significant monitoring findings\" for component #4,

quality of the physical work, means written findings based on

the monitoring reviews as recorded by the Monitoring

3/92 6-12

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7460.5

Chapter 6, paragraph 6-2B4i(1) (continued)

Checklist, Sections I (Appendix 18 of the CIAP Handbook,

as revised), or where an equivalent review was conducted.

Significant monitoring 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.

\(2\) Where necessary, and on a priority, risk analysis basis, the

Field Office shall conduct monitoring of a PHA in order to

evaluate PHA performance in this area.

5\. Component #5 - budget controls. 24 CFR 901.10(b)(2)(v)

a\. Grade A: The PHA has expended modernization funds only on

work items in the latest HUD-approved budgets or within the

limits of the HUD-established threshold for budget revision, or

where the PHA has expended modernization funds on work items

other than those in the latest HUD-approved budgets or above

the limits of the HUD-established threshold for budget revision,

the PHA obtained prior HUD approval. 24 CFR 901.10(b)(2)

(v)(A)

b\. Grade F: The PHA has expended modernization funds on work

items other than those in the latest HUD-approved budgets, or

above the limits of the HUD-established threshold for budget

revision, or without getting prior HUD approval. 24 CFR

901.10(b)(2)(v)(B)

c\. Component #5, budget controls, has a weight of x1. 24 CFR

901.10(b)(2)(v)

d\. Component #5 requirement. This component assesses a PHA\'s

immediate past fiscal year.

6\. This indicator has a scoring weight of x2. 24 CFR 901.10(b)(2)(v)

7\. Indicator #2, modernization, requirements.

a\. A PHA will not be scored on this indicator if it did not receive

modernization funds in the applicable year, or if it received only

emergency funds and these were fully expended.

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7460.5

Chapter 6, paragraph 6-2B7 (continued)

b\. PHAs must have completed (all funds expended) a modernization

program within the last two fiscal years and achieve a total

weighted score of no less that 90% on this indicator in order to

qualify for incentives in the program area of modernization.

c\. Data source: Modernization Quarterly Report System (MQRS)

module, SMIRPH.

8\. Indicator #2, modernization, guidance.

a\. If a PHA wishes to expend modernization funds outside of the

latest HUD-approved budget or over the HUD-established

threshold for budget revision, the PHA should obtain prior HUD

approval. Some Field Offices approve expenditures verbally or

by letter in anticipation of a formal budget announcement; such

expenditures should not be treated as if they are outside of the

HUD-approved budget. This situation constitutes an informal

budget revision and would be excluded from the scoring.

b\. In revising the modernization indicator, the Department has

concluded that it may be necessary to conduct on-site

assessments of the indicator before applying it for the purpose

of affecting the formula allocation of modernization funds under

the Comprehensive Grant Program (CGP), due to the following

reasons:

\(1\) First, the Department is concerned that, in some cases,

Regional and Field Offices may have granted time extensions

for fund obligation (also affecting fund expenditure) for

reasons within the PHA\'s control in order to avoid the

recapture of funds. Recaptured funds are currently not

available to the Department for reuse. Reasons within the

PHA\'s control do not constitute valid reasons for delay, as

set forth in the Comprehensive Improvement Assistance

Program (CIAP) Handbook 7485.1, as revised. The issuance

of time extensions in cases of poor performance solely to

avoid fund recapture affects the accuracy of the scoring

for the revised components #1 and #2 of the modernization

indicator.

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7460.5

Chapter 6, paragraph 6-2B8b (continued)

\(2\) Second, some Field Offices may not have adequate

documentation of PHA performance in the areas of

contract administration and quality of physical work.

This lack of adequate documentation affects the accuracy

of the scoring for the revised components #3 and #4 of

the modernization indicator.

\(3\) Accordingly, the inadequate or inaccurate data in the

Field Offices may result in artificially high scores for

certain PHAs on the modernization indicator; the lack of

uniform application of the time extension policy and the

monitoring requirements by Field Offices may result in

artificially high or low scores for other PHAs.

Therefore, if risk analysis indicates that there is a

potential problem at a PHA, the Field Office shall

conduct an on-site assessment of that PHA before scoring

and rating it on the modernization indicator. If risk

analysis indicates that there is not a potential problem

at a PHA, the Field Office shall score and rate the PHA

on the modernization indicator without conducting an

on-site assessment of the PHA. In the first year of the

CGP, which is FFY 1992, no PHA participating in the CGP

will be initially designated as mod-troubled for FFY

1992 and have its formula funding limited.

\(4\) As previously stated, the Department intends to use the

first year of the PHMAP (FFY 1992) to conduct any

necessary on-site assessments of PHAs participating in

the CGP in FFY 1992. This will enable the Department to

have accurate and sufficient information regarding the

PHA\'s contract administration and quality of work under

the CIAP. In addition, the Department intends to work

closely with Field and Regional Offices on appropriate

application of the time extension policy, as set forth

in the CIAP Handbook. Mod-troubled designation will not

affect a PHA\'s formula funding amount until FFY 1993.

C. Indicator #3, rents uncollected. This indicator examines the balance

of rents uncollected as a percentage of total rents to be collected.

(6)(j)(1) (C) of the Act and 24 CFR 901.10(b)(3)

6-15 3/92

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7460.5

Chapter 6, paragraph 6-2C (continued)

1\. Grade A: The balance of rents uncollected in the immediate past

fiscal year is less than or equal to 2% of total rents to be

collected. 24 CFR 901.10(b)(3)(i)

2\. Grade B: The balance of rents uncollected in the immediate past

fiscal year is greater than 2% and less than or equal to 4% of the

total rents to be collected. 24 CFR 901.10(b)(3)(ii)

3\. Grade C: The balance of rents uncollected in the immediate past

fiscal year is greater than 4% and less than or equal to 6% of the

total rents to be collected. 24 CFR 901.10(b)(3)(iii)

4\. Grade D: The balance of rents uncollected in the immediate past

fiscal year is greater than 6% and less than or equal to 8% of the

total rents to be collected. 24 CFR 901.10(b)(3)(iv)

5\. Grade E: The balance of rents uncollected in the immediate past

fiscal year is greater than 8% and less than or equal to 10% of the

total rents to be collected. 24 CFR 901.10(b)(3)(v)

6\. Grade F: The balance of rents uncollected in the immediate past

fiscal year is greater than 10% of the total rents to be collected.

24 CFR 901.10(b)(3)(vi)

7\. This indicator has a scoring weight of x3. 24 CFR 901.10(b)(3)

8\. Indicator #3, rents uncollected, requirements. Data source: a PHA

shall certify to this indicator within 90 calendar days after its

fiscal year begins (FYB).

a\. Certification shall be for the immediate past fiscal year.

b\. Documentation verifying this indicator shall be maintained by

the PHA for HUD post-review.

9\. Indicator #3, rents uncollected, guidance.

a\. The term \"rents uncollected\" means unpaid dwelling rent for

residents in possession. Any dwelling rent which was due and

payable by a resident in possession while that resident was in

possession, is included in the calculation of this indicator.

If a

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7460.5

Chapter 6, paragraph 6-2C9a (continued)

resident subsequently vacated the unit and is no longer in

possession, the dwelling rent which they owed and did not pay

while in possession is still counted until collected or

written off. Rents that were previously reported uncollected

and subsequently received through collection procedures are

included in the calculation of this indicator.

b\. This indicator compares the rents uncollected at the end of

the reporting period to the sum of the current dwelling rent

charged for the reporting period plus the total amount of

rents uncollected as of the end of the prior reporting

period.

c\. The term, \"current dwelling rent charged\" refers to the

resident dwelling rent charges reflected in the monthly rent

roll(s), and excludes retroactive rent charges (including

those identified through the Tenant Integrity Program),

maintenance charges, excess utility charges, late charges,

and any other charges not specifically identified as dwelling

rent.

d\. In the calculation of this indicator, the term \"current

fiscal year\" refers to the year being measured. The term

\"prior fiscal year\" refers to the fiscal year preceding the

immediate past fiscal year.

e\. A PHA should make every effort to collect dwelling rent owed

by both residents in possession and by residents not in

possession in accordance with the Financial Management

Handbook 7475.1, as revised. Where every avenue of

collecting rents owed to a PHA have been exhausted, regular

and timely write-offs are important. Any charges not written

off will continue to be counted as rents uncollected.

f\. An optional worksheet that PHAs may use for calculating this

indicator is included in Appendix 5 of this Handbook. A

sample worksheet showing the calculation of annual average

percentage of rents uncollected immediately follows the

optional worksheet in Appendix 5.

D. Indicator #4, energy consumption. This indicator examines the annual

energy consumption. (6)(j)(1)(D) of the Act and 24 CFR

901.10(b)(4)

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7460.5

Chapter 6, paragraph 6-2D (continued)

1\. Grade A: Annual energy consumption, as compared to the average of

the three years\' rolling base consumption, that has been adjusted for

variances in heating degree days (HDD) has not increased. 24 CFR

901.10(b)(4)(i)

2\. Grade B: Annual energy consumption, as compared to the average of

the three years\' rolling base consumption, that has been adjusted for

variance in HDD has not increased by more than 3%. 24 CFR

901.10(b)(4)(ii)

3\. Grade C: Annual energy consumption, as compared to the average of

the three years\' rolling base consumption, that has been adjusted for

variance in HDD has increased by greater than 3% and less than or

equal to 5%. 24 CFR 901.10(b)(4)(iii)

4\. Grade D: Annual energy consumption, as compared to the average of

the three years\' rolling base consumption, that has been adjusted for

variance in HDD has increased by greater than 5% and less than or

equal to 7%. 24 CFR 901.10(b)(4)(iv)

5\. Grade E: Annual energy consumption, as compared to the average of

the three years\' rolling base consumption, that has been adjusted for

variance in HDD has increased by greater than 7% and less than or

equal to 9%. 24 CFR 901.10(b)(4)(v)

6\. Grade F: Annual energy consumption, as compared to the average of

the three years\' rolling base consumption, that has been adjusted for

variances in HDD has increased by more than 9%. 24 CFR 901.10

(b)(4)(vi)

7\. This indicator has a scoring weight of x1. 24 CFR 901.10(b)(4)

8\. Indicator #4, energy consumption, requirements.

a\. A PHA that does not require/receive operating subsidy will

receive an automatic grade of \"A\" on this indicator. Such a PHA

is not dependent on Federal subsidy to pay for the energy it

consumes.

b\. PFS adjustments shall be submitted 30 calendar days after receipt

of the HDD factor from HUD. The HDD factors are available

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7460.5

Chapter 6, paragraph 6-2D8b (continued)

90 calendar days after the end of each fiscal quarter. A PHA

shall receive a presumptive score for this indicator that does not

include the HDD adjustment. Field Offices shall complete the

determination for this indicator after PHAs submit their year-end

adjustments.

c\. In the initial year of PHMAP implementation and for the

purposes of the CGP, Field Offices shall complete this indicator

after PFS HDD data is available; e.g., during the time frame

when a PHA appeals may be submitted. A PHA shall receive a

presumptive score for this indicator that does not include the

HDD adjustment. However, before a final determination is made

in regards to the CGP Comprehensive Plan, Field Offices will

have sufficient time to complete the determination for this

indicator.

d\. Data source: Form HUD-52722B, Adjustment for Utility

Consumption and Rates, Performance Funding System (PFS)

Handbook 7475.13, as revised, Appendix VII,

9\. Indicator #4, energy consumption, guidance.

a\. The HDD includes appropriate adjustments to reflect different

Regions.

b\. The Performance Funding System (PFS) forms are based on

utility consumption which includes office space, maintenance

buildings, etc., and not only the buildings or units occupied by

residents. A PHA should be able to establish controls to conserve

energy over space under its control such as office space or

maintenance buildings, The only consumption for projects with

resident-supplied utilities to be added by the PHA will be for

vacant units.

c\. An adjustment for cooling degree days (CDD) will be included in

this indicator once the CDD is included in the Performance

Funding System regulations in accordance with 508 of the

NAHA.

d\. A PHA is not required to certify to the response to this indicator.

However, an optional worksheet that PHAs may use for

6-19 3/92

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7460.5

Chapter 6, paragraph 6-2D9d (continued)

calculating this indicator is included in Appendix 5 of this

Handbook. A sample worksheet showing the calculation of

energy consumption immediately follows the optional worksheet

in Appendix 5.

E. Indicator #5, unit turnaround. This indicator examines the average

period of time that an agency requires to repair and turnaround vacant

units. (6)(j)(1)(E) of the Act and 24 CFR 901.10(b)(5)

1\. Vacant units in the following categories should not be included in

this calculation: 24 CFR 901.10(b)(5)

a\. Units in funded on-schedule CIAP (only) programs; 24 CFR

901.10(b)(5)(i)

b\. Units that HUD has approved for demolition or disposition; 24

CFR 901.10(b)(5)(ii)

c\. 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; and 24 CFR 901.10(b)(5)(iii)

d\. Units that have sustained casualty damage, but only until the

insurance claim is adjusted. 24 CFR 901.10(b)(5)(iv)

2\. Grade A: The PHA has established a system to track the duration

of vacancies; and the average number of calendar days for vacant

units to be prepared for re-rental and for a new lease to take

effect during the PHA\'s immediate past fiscal year, is less than

or equal to 20 calendar days. 24 CFR 901.10(b)(5)(v)

3\. Grade B: The PHA has established a system to track the duration

of vacancies; and the average number of calendar days for vacant

units to be prepared for re-rental and for a new lease to take

effect during the PHA\'s immediate past fiscal year, is greater

than 20 calendar days and less than or equal to 25 calendar days.

24 CFR 901.10(b)(5)(vi)

4\. Grade C: The PHA has established a system to track the duration

of vacancies; and the average number of calendar days for vacant

units to be prepared for re-rental and for a new lease to take

effect during the

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7460.5

Chapter 6, paragraph 6-2E4 (continued)

PHA\'s immediate past fiscal year, is greater than 25 calendar days and

less than or equal to 30 calendar days. 24 CFR 901.10(b)(5)(vii)

5\. Grade D: The PHA has established a system to track the duration of

vacancies; and the average number of calendar days for vacant units to

be prepared for re-rental and for a new lease to take effect during the

PHA\'s immediate past fiscal year, is greater than 30 calendar days and

less than or equal to 40 calendar days. 24 CFR 901.10(b)(5)(Viii)

6\. Grade E: The PHA has established a system to track the duration of

vacancies; and the average number of calendar days for vacant units to

be prepared for re-rental and for a new lease to take effect during the

PHA\'s immediate past fiscal year, is greater than 40 calendar days and

less than or equal to 50 calendar days. 24 CFR 901.10(b)(5)(ix)

7\. Grade F: The PHA has not established a system to track the duration

of vacancies; or the average number of calendar days for vacant units

to be prepared for re-rental and for a new lease to take effect during

the PHA\'s immediate past fiscal year, is more than 50 calendar days.

24 CFR 901.10(b)(5)(x)

8\. This indicator has a scoring weight of x2. 24 CFR 901.10(b)(5)

9\. Indicator #5, unit turnaround, requirements.

a\. A vacant unit is a dwelling unit that is not under lease to an

eligible family and has not been approved for temporary or

long-term non-dwelling use in the normal course of project

operation.

b\. Data source: a PHA shall certify to this indicator within 90

calendar days after its fiscal year begins (FYB).

\(1\) Certification shall be for the immediate past fiscal year.

\(2\) Documentation verifying this indicator shall be maintained by

the PHA for HUD post-review.

10\. Indicator #5, unit turnaround, guidance.

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7460.5

Chapter 6, paragraph 6-2E10 (continued)

a\. The term \"insurance claim is adjusted\" means the time from when

the property/casualty damage occurred and the unit became

vacant to the time the claim check is received by the PHA.

b\. The term \"turnaround\" means the annual average number of

calendar days for vacant units to be prepared for re-rental and for

a new lease to take effect. A PHA should include all units that

were vacant until a new lease was in effect, deducting those types

of units in accordance with paragraph 6-2E1, above. Turnaround

time includes all of the time a unit has been vacant until a new

lease is in effect. For example:

\(1\) A PHA is certifying to its immediate past fiscal year which

ended 12-31-91, and if a unit became vacant on 06-01-90 and

a new lease went into effect on 06-30-91, the PHA would

include the number of days vacant from 06-01-90 through

06-30-91; or

\(2\) A PHA is certifying to its immediate past fiscal year which

ended 12-31-91, and if a unit became vacant on 11-01-91 and

a new lease went into effect on 12-01-91, the PHA would

include the number of days vacant from 11-01-91 through

12-01-91.

c\. A PHA shall not include in the calculation of this indicator units

that were vacant in its immediate past fiscal year which do not

have a new lease in effect. Such units shall be included in a

PHA\'s subsequent year certification.

d\. The term \"funded on-schedule CIAP program\" means the PHA is

adhering to its approved project implementation schedule or is

meeting an approved time extension as of the end of its

immediate past fiscal year.

\(1\) A unit shall be exempted from the calculation of this

indicator only if the approved implementation schedule

includes the necessity of vacating the unit. For example:

the approved project implementation schedule includes the

replacement of roofs and it is not necessary to vacate the

units to replace the roofs; such units shall not be exempted

from the calculation of this indicator.

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7460.5

Chapter 6, paragraph 6-2E10d (continued)

\(2\) A unit shall be exempted from the calculation of this

indicator only if the approved project implementation

schedule includes a relocation plan and the relocation

plan clearly states when relocation win occur.

\(3\) A unit shall be exempted from the calculation of this

indicator only if the modernization program is at a point

in the approved project implementation schedule where it

is necessary to vacate the unit. For example: a unit

should not be vacated when the architect is hired; it

should be vacated at the relocation stage of the approved

project implementation schedule.

e\. The term \"an approved demolition/disposition application\" means

that a PHA has received notification from HUD of approval.

f\. A PHA should plan move-ins in advance and notify the potential

resident(s).

g\. An optional worksheet that PHA\'s may use for calculating this

indicator is included in Appendix 5 of this Handbook.

Instructions for this work sheet will state that a PHA will

include in this calculation all units that were vacant during

the PHA\'s immediate past fiscal year. An example worksheet

showing the calculation of unit turnaround immediately follows

the optional worksheet in Appendix 5.

F. Indicator #6, outstanding work orders. This indicator examines the

proportion of maintenance work orders outstanding, including any

progress that an agency has made during the preceding three years to

reduce the period of time required to complete maintenance work orders.

(6)(j)(1)(F) of the Act and 24 CFR 901.10(b)(6)

1\. Grade A: At least 99% of emergency items were corrected within 24

hours or emergency status was abated, and the number of

non-emergency work orders outstanding at the end of the PHA\'s

immediate past fiscal year does not exceed 4% of the total number

of work orders received during the immediate past fiscal year,

excluding cyclical work orders. 24 CFR 901.10(b)(6)(i)

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7460.5

Chapter 6, paragraph 6-2F (continued)

2\. Grade B: At least 97% of emergency items were corrected within 24

hours or emergency status was abated, and the number of

non-emergency work orders outstanding at the end of the PHA\'s

immediate past fiscal year is greater than 4% and less than or equal

to 6% of the total number of work orders received during the immediate

past fiscal year, excluding cyclical work orders. 24 CFR

901.10(b)(6)(ii)

3\. Grade C: The PHA is in one of the following categories: 24 CFR

901.10(b)(6)(iii)

a\. At least 95% of emergency items were corrected within 24 hours

or emergency status was abated, and the number of

non-emergency work orders outstanding at the end of the PHA\'s

immediate past fiscal year is greater than 6% and less than or

equal to 8% of the total number of work orders received during

the immediate past fiscal year, excluding cyclical work orders; or

24 CFR 901.10 (b)(6)(iii)(A)

b\. At least 95% of emergency items were corrected within 24 hours

or emergency status was abated, and the number of

non-emergency work orders outstanding at the end of the PHA\'s

immediate past fiscal year is greater than 8% and less than or

equal to 10% of the total number of work orders received during

the immediate past fiscal year, excluding cyclical work orders,

and the PHA demonstrates progress over the most recent three-year

period in which the time required to complete maintenance work

orders has been reduced. 24 CFR 901.10(b)(6)(iii)(B)

4\. Grade D: The PHA is in one of the following categories: 24 CFR

901.10(b)(6)(iv)

a\. At least 95% of emergency items were corrected within 24 hours

or emergency status was abated, and the number of

non-emergency work orders outstanding at the end of the PHA\'s

immediate past fiscal year is greater than 8% and less than or

equal to 10% of the total number of work orders received during

the immediate past fiscal year, excluding cyclical work orders; or

24 CFR 901.10(b)(6)(iv)(A)

b\. At least 95% of emergency items were corrected within 24 hours

or emergency status was abated, and the number of

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7460.5

Chapter 6, paragraph 6-2F4b (continued)

non-emergency work orders outstanding at the end of the PHA\'s

immediate past fiscal year is greater than 10% and less than or

equal to 12% of the total number of work orders received during

the immediate past fiscal year, excluding cyclical work orders, and

the PHA demonstrates progress over the most recent three-year

period in which the time required to complete maintenance work

orders has been reduced. 24 CFR 901.10(b)(6)(iv)(B)

5\. Grade E: The PHA is in one of the following categories: 24 CFR

901.10(b)(6)(v)

a\. At least 95% of emergency items were corrected within 24 hours

or emergency status was abated, and the number of

non-emergency work orders outstanding at the end of the PHA\'s

immediate past fiscal year is greater than 10% and less than or

equal to 12% of the total number of work orders received during

the immediate past fiscal year, excluding cyclical work orders; or

24 CFR 901.10(b)(6)(v)(A)

b\. At least 95% of emergency items were corrected within 24 hours

or emergency status was abated, and the number of

non-emergency work orders outstanding at the end of the PHA\'s

immediate past fiscal year exceeds 12% of the total number of

work orders received during the immediate past fiscal year,

excluding cyclical work orders, and the PHA demonstrates

progress over the most recent three-year period in which the time

required to complete maintenance work orders has been reduced.

24 CFR 901.10(b)(6)(v)(B)

6\. Grade F: Less than 95% of emergency items were corrected within 24

hours or emergency status was not abated, or the number of

non-emergency work orders outstanding at the end of the PHA\'s immediate

past fiscal year exceeds 12% of the total number of work orders

received during the immediate past fiscal year, excluding cyclical work

orders, or the PHA has not demonstrated progress over the most

recent three-year period in which the time required to complete

maintenance work orders has been reduced. 24 CFR 901.10(b)(6)

\(vi\)

7\. This indicator has a scoring weight of x1. 24 CFR 901.10(b)(6)

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7460.5

Chapter 6, paragraph 6-2F (continued)

8\. Indicator #6, outstanding work orders, requirements.

a\. If a PHA corrects 99% of emergency work items within 24 hours,

but the PHA has more than 4% of non-emergency work orders

outstanding at the end of its immediate past fiscal year, the PHA

achieves the grade which reflects the PHA\'s percentage of

non-emergency work orders outstanding at the end of its immediate

past fiscal year.

b\. Data source: a PHA shall certify to this indicator within 90

calendar days after its fiscal year begins (FYB).

\(1\) Certification shall be for the immediate past fiscal year.

\(2\) Documentation verifying this indicator shall be maintained by

the PHA for HUD post-review.

9\. Indicator #6, outstanding work orders, guidance.

a\. The term \"cyclical work orders\" refers to work orders which are

performed on a seasonal basis, in accordance with warranty

requirements, or as part of a preventive maintenance program.

For example: furnaces may be checked, cleaned and repaired

during the late summer in preparation for winter usage; or

vehicles may be serviced on a predetermined basis to keep

warranties in effect.

b\. The term \"demonstrate(s) progress\" means that the time required

to complete work orders has been reduced during the most recent

three-year period.

c\. The term \"emergency\" refers to physical work items that pose an

immediate threat to the life, health and/or safety of residents or

that are related to fire safety.

d\. The phrase \"emergency items were corrected within 24 hours or

emergency status abated\" means that repairs and/or replacements

were completed for emergency items within 24 hours or the

emergency situation was abated within 24 hours with completion

of needed repairs and/or replacements made at a later time. For

example:

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7460.5

Chapter 6, paragraph 6-2F9d (continued)

\(1\) A gas leak located within a unit\'s wall is detected over

the weekend; the PHA corrects the gas leak within 24 hours

but repairs the wall on Monday; or

\(2\) A unit has a stopped up toilet which results in a flood in

the bathroom; the PHA corrects the problem with the toilet

within 24 hours and replasters the ceiling beneath the

bathroom within one week.

e\. In cases when an emergency cannot be corrected with 24 hours

and, if appropriate, residents are relocated from the unit in

order to remove them from exposure, the relocation of residents

could constitute the abatement of the emergency.

f\. This indicator does not make an adjustment for work orders of

low priority because of lack of consensus and difficulty in

determining \"low priority.\" Nor is special consideration given

for work orders waiting on parts because this is not a normally

recurring or usual occurrence that would have a substantial

impact on the score of this indicator in a well-managed PHA.

This indicator only excludes cyclical work orders from

consideration in calculating outstanding work orders. A PHA

should have replacement parts in its inventory, and since this

indicator is assessing the number of non-emergency work orders

outstanding during a PHA\'s immediate past fiscal year, a wait

for parts should not materially impact on this indicator.

g\. Optional worksheets that PHA\'s may use for calculating this

indicator are included in Appendix 5 of this Handbook. Sample

worksheets showing the calculation of outstanding work orders

immediately follows the optional worksheets in Appendix 5.

G. Indicator #7, annual inspection and condition of units and systems.

This indicator examines the percentage of units that an agency fails to

inspect to ascertain maintenance or modernization needs within such

period of time as the Department deems appropriate and the percentage

of systems, for the purposes of preventive maintenance, that an agency

fails to inspect on an annual basis. (6)(j)(1)(G) of the Act and 24

CFR 901.10(b)(7)

1\. Units in the following categories should not be included in the

calculation for the annual inspection of units: 24 CFR

901.10(b)(7)

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7460.5

Chapter 6, paragraph 6-2G1 (continued)

a\. Units in funded on-schedule 14 modernization programs; and

24 CFR 901.10(b)(7)

b\. Units in an approved demolition or disposition application. 24

CFR 901.10(b)(7)

2\. Component #1 - system to track inspection and repair of units and

systems. 24 CFR 901.10(b)(7)(i)

a\. Grade A: The PHA has established a system to track inspection

and repair of units and systems. 24 CFR 901.10(b)(7)(i)(A)

b\. Grade F: The PHA has not established a system to track

inspection and repair of units and systems. 24 CFR 901.10(b)

(7)(i)(B)

c\. Component #l, system to track inspection and repair of units and

systems, has a weight of x1. 24 CFR 901.10(b)(7)(i)

3\. Component #2 - annual inspection of units. 24 CFR 901.10(b)(7)

\(ii\)

a\. Grade A: The PHA inspected 100% of units in the immediate

past fiscal year, using standards that were at least equivalent to

the Housing Quality Standards (HQS). 24 CFR 901.10(b)(7)

(ii)(A)

b\. Grade B: The PHA inspected at least 97% and less than 100%

of units in the immediate past fiscal year, using standards that

were at least equivalent to HQS. 24 CFR 901.10(b)(7)(ii)(B)

c\. Grade C: The PHA inspected at least 95% and less than 97% of

units in the immediate past fiscal year, using standards that were

at least equivalent to HQS. 24 CFR 901.10(b)(7)(ii)(C)

d\. Grade D: The PHA inspected at least 93% and less than 95% of

units in the immediate past fiscal year, using standards that were

at least equivalent to HQS. 24 CFR 901.10(b)(7)(ii)(D)

3/92 6-28

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7460.5

Chapter 6, paragraph 6-2G3 (continued)

e\. Grade E: The PHA inspected at least 90% and less than 93% of

units in the immediate past fiscal year, using standards that were

at least equivalent to HQS. 24 CFR 901.10(b)(7)(ii)(E)

f\. Grade F: The PHA inspected fewer than 90% of units in the

immediate past fiscal year, using standards that were at least

equivalent to HQS. 24 CFR 901.10(b)(7)(ii)(F)

g\. Component #2 requirements.

\(1\) HUD requires PHAs to comply with local housing codes.

The HQS permits variances due to local code requirements

as long as the minimum standard(s) is met.

This component includes the inspection of non-dwelling

space, including but not limited to, office space, maintenance

buildings, etc., and not only the buildings or units occupied

by residents.

\(3\) For PHAs that utilize HQS for inspection of units, Form

HUD-52580, Section 8 Existing Housing Program Inspection

Checklist, Housing Inspection Manual, HUD-605-(H)-3,

Appendix G, or Form HUD-52580-A, Inspection Form,

Housing Inspection Manual, HUD-605-(H)-3, Appendix B,

shall be used.

\(4\) Component #2, annual inspection of units has a weight of

x1. 24 CFR 901.10(b)(7)(ii)

h\. Component #2 guidance.

\(1\) The term \"at least equivalent to HQS\" means inspection

standards that are, at a minimum, equal to and not less than

HQS. PHAs are encouraged to train their own staffs in

HQS to meet this indicator.

\(2\) The Department has extensive HQS training material

available to PHAs.

\(3\) It is at the discretion of each PHA as to when ,in annual

inspection is performed. For example, PHAs may choose to

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7460.5

Chapter 6, paragraph 6-2G3h(3) (continued)

perform this inspection at the time of the annual resident

reexamination, or may choose to include it as a component of

routine or preventive maintenance.

\(4\) An optional worksheet that PHA\'s may use for calculating

this component is included in Appendix 5 of this Handbook.

A sample worksheet showing the calculation of annual

inspection of units immediately follows the optional

worksheet in Appendix 5.

4\. Component #3 - correction of unit deficiencies. 24 CFR 901.10(b)

(7)(iii)

a\. Grade A: All units met the HQS standards at the time of

inspection, or of those units not meeting HQS or its equivalent at

the time of inspection, at least 99% of emergency items were

corrected within 24 hours or the emergency status was abated,

and all other unit deficiencies were corrected within an average

of, at most, 25 calendar days to meet inspection standards that

were at least equivalent to HQS, and the PHA is on schedule at

the end of its immediate past fiscal year, according to its

maintenance plan, in correcting specific unit deficiencies. 24

CFR 901.10(b)(7)(iii)(A)

b\. Grade B: Of those units not meeting HQS or its equivalent at

the time of the inspection, at least 97% and less than 99% of

emergency items were corrected within 24 hours or the emergency

status was abated, and all other unit deficiencies were corrected

within an average of greater than 25 calendar days and less than

or equal to 30 calendar days to meet inspection standards that

were at least equivalent to HQS, and the PHA is on schedule at

the end of its immediate past fiscal year, according to its

maintenance plan, in correcting specific unit deficiencies. 24

CFR 901.10(b)(7)(iii)(B)

c\. Grade C: Of those units not meeting HQS or its equivalent at

the time of the inspection, at least 95% and less than 97% of

emergency items were corrected within 24 hours or the emergency

status was abated, and all other unit deficiencies were corrected

within an average of greater than 30 calendar days and less than

or equal to 40 calendar days to meet inspection standards that

3/92 6-30

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7460.5

Chapter 6, paragraph 6-2G4c (continued)

were at least equivalent to HQS, and the PHA is on schedule at

the end of its immediate past fiscal year, according to its

maintenance plan, in correcting specific unit deficiencies. 24

CFR 901.10(b)(7)(iii)(C)

d\. Grade D: Of those units not meeting HQS or its equivalent at

the time of the inspection, at least 95% and less than 97% of

emergency items were corrected within 24 hours or the emergency

status was abated, and all other unit deficiencies were corrected

within an average of greater than 40 calendar days and less than

or equal to 50 calendar days to meet inspection standards that

were at least equivalent to HQS, and the PHA is on schedule at

the end of its immediate past fiscal year, according to its

maintenance plan, in correcting specific unit deficiencies. 24

CFR 901.10(b)(7)(iii)(D)

e\. Grade E: Of those units not meeting HQS or its equivalent at

the time of the inspection, at least 95% and less than 97% of

emergency items were corrected within 24 hours or the emergency

status was abated, and all maintenance deficiencies were corrected

within an average of greater than 50 calendar days and less than

or equal to 60 calendar days to meet inspection standards that

were at least equivalent to HQS, and the PHA is on schedule at

the end of its immediate past fiscal year, according to its

maintenance plan, to correct unit deficiencies. 24 CFR 901.10

(b)(7)(iii)(E)

f\. Grade F: Of those units not meeting HQS or its equivalent at the

time of inspection, fewer than 95% of emergency items were

corrected within 24 hours, or emergency status was not abated, or

all maintenance deficiencies were corrected within an average of

greater than 60 calendar days to meet inspection standards that

were at least equivalent to HQS, or the PHA is not on schedule

at the end of its immediate past fiscal year, according to its

maintenance plan, to correct unit defects, or the PHA inspected

fewer than 90% of units in the immediate past fiscal year, using

standards that were at least equivalent to HQS. 24 CFR

901.10(b)(7)(iii)(F)

g\. Component #3, correction of unit deficiencies, has a weight of x3.

24 CFR 901.10(b)(7)(iii)

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7460.5

Chapter 6, paragraph 6-2G4 (continued)

h\. Component #3 requirement. This component includes the

correction of deficiencies in non-dwelling space, including but not

limited to, office space, maintenance buildings, etc., and not only

the buildings or units occupied by residents.

i\. Component #3 guidance.

\(1\) The phrase \"emergency items were corrected within 24 hours

or emergency status abated\" means that repairs and/or

replacements were completed for emergency items within 24

hours or the emergency situation was abated within 24 hours

with completion of needed repairs and/or replacements

made at a later time. Refer to paragraph 6-2F9d, above, for

examples of abatement of emergency status.

\(2\) The calculation for the non-emergency repair of units begins

on the day after the inspection is performed by which time a

work order should have been issued.

\(3\) The term \"maintenance plan\" is defined in paragraphs

6-2G8c and G8d, below.

\(4\) Optional worksheets that PHA\'s may use for calculating this

component are included in Appendix 5 of this Handbook.

Sample worksheets showing the calculation of the correction

of unit deficiencies immediately follows the optional

worksheets in Appendix 5.

5\. Component #4 - inspection and repair of systems. 24 CFR 901.10

(b)(7)(iv)

a\. Grade A: The PHA annually inspected major systems to identify

required maintenance and action was taken to correct identified

system defects within an average of at most 25 calendar days and

the PHA is on schedule at the end of the immediate past fiscal

year, according to its maintenance plan, to correct systems

defects. 24 CFR 901.10(b)(7)(iv)(A)

b\. Grade B: The PHA annually inspected major systems to identify

required maintenance and action was taken to correct identified

system defects within an average of greater than 25 calendar days

3/92 6-32

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7460.5

Chapter 6, paragraph 6-2G5b (continued)

and less than or equal to 30 calendar days, and the PHA is on

schedule at the end of the immediate past fiscal year, according to

its maintenance plan, to correct systems defects. 24 CFR

901.10(b)(7)(iv)(B)

c\. Grade C: The PHA annually inspected major systems to identify

required maintenance and action was taken to correct identified

system defects within an average of greater than 30 calendar days

and less than or equal to 40 calendar days, and the PHA is on

schedule at the end of the immediate past fiscal year, according to

its maintenance plan, to correct systems defects. 24 CFR

901.10(b)(7)(iv)(C)

d\. Grade D: The PHA annually inspected major systems to identify

required maintenance and action was taken to correct identified

system defects within an average of greater than 40 calendar days

and less than or equal to 50 calendar days, and the PHA is on

schedule at the end of the immediate past fiscal year, according to

its maintenance plan, to correct systems defects. 24 CFR

901.10(b)(7)(iv)(D)

e\. Grade E: The PHA annually inspected major systems to identify

required maintenance and action was taken to correct identified

system defects within an average of greater than 50 calendar days

and less than or equal to 60 calendar days, and the PHA is on

schedule at the end of the immediate past fiscal year, according to

its maintenance plan, to correct systems defects. 24 CFR

901.10(b)(7)(iv)(E)

f\. Grade F: The PHA did not annually inspect major systems, or

system defects were corrected within an average of greater than

60 calendar days, or the PHA is not on schedule at the end of the

immediate past fiscal year, according to its maintenance plan, to

correct systems defects. 24 CFR 901.10(b)(7)(iv)(F)

g\. Component #4, inspection and repair of systems, has a weight of

x3. 24 CFR 901.10(b)(7)(iv)

h\. Component #4 guidance.

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7460.5

Chapter 6, paragraph 6-2G5h (continued)

\(1\) The term \"action taken\" refers to the issuance of a work

order to correct the problem where systems are involved.

\(2\) A PHA can repair system defects by budgeting for

extraordinary maintenance or capital improvements, or

addressing such deficiencies in its CIAP/CGP.

\(3\) The term \"maintenance plan\" is defined in 6-2G8c and G8d,

below.

\(4\) Optional worksheets that PHA\'s may use for calculating this

indicator and a checklist for the inspection of systems are

included in Appendix 5 of this Handbook. Samples of

optional worksheets showing the calculation of the

correction of systems defects and a checklist for the

inspection of systems immediately follows the optional

worksheets in appendix 5.

6\. This indicator has a scoring weight of x3. 24 CFR 901.10(b)(7)

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

requirements. Data source: a PHA shall certify to this indicator

within 90 calendar days after its fiscal year begins (FYB).

a\. Certification shall be for the immediate past fiscal year.

b\. Documentation verifying this indicator shall be maintained by

the PHA for HUD post-review.

c\. \"Major systems\" include, but are not limited to, mechanical

systems, electrical systems, building envelopes, etc.

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

guidance.

a\. The term \"funded on-schedule CIAP program\" means the PHA is

adhering to its approved project implementation schedule or is

meeting an approved time extension as of the end of its

immediate past fiscal year.

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7460.5

Chapter 6, paragraph 6-2G8a (continued)

\(1\) A unit shall be exempted from the calculation of this

indicator only if the approved implementation schedule

includes the necessity of vacating the unit. For example: the

approved project implementation schedule includes the

replacement of roofs and it is not necessary to vacate the

units to replace the roofs; such units shall not be exempted

from the calculation of this indicator.

\(2\) A unit shall be exempted from the calculation of this

indicator only if the approved project implementation

schedule includes a relocation plan and the relocation plan

clearly states when relocation will occur.

\(3\) A unit shall be exempted from the calculation of this

indicator only if the modernization program is at a point in

the approved project implementation schedule where it is

necessary to vacate the unit. For example: a unit should not

be vacated when the architect is hired; it should be vacated

at the relocation stage of the approved project

implementation schedule.

b\. The term \"an approved demolition/disposition application\" means

that a PHA has received notification from HUD of approval.

c\. The term \"maintenance plan\" refers to a PHA\'s own plan for

completing needed repairs, including but not limited to, the

following cases when:

\(1\) A specific part is required but not available;

\(2\) Wage rates need to be obtained;

\(3\) The PHA plans, budgets and lets contracts for the public bid

process, as long as the process is carried through until the

work is completed;

\(4\) Work items are not generated from cyclical inspections;

\(5\) The urgency of non-emergency work items and the

remaining workload are taken into consideration; and

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7460.5

Chapter 6, paragraph 6-2G8c (continued)

\(6\) The differentiation for types of work are taken into

consideration.

d\. The purpose of including items in a PHA\'s maintenance plan is

for the reason of not penalizing a PHA for factors beyond its

control. However, in order not to fail this indicator, a PHA

shall be on schedule according to its maintenance plan. The

time frames stipulated in components #3 and #4 to correct

identified unit and system deficiencies do not apply to a

PHA\'s maintenance plan. When does apply is whether or not a

PHA is on schedule according to its maintenance plan. The

Field Office shall post-review during the confirmatory review

or the next scheduled maintenance review, PHA documentation

which verifies that a PHA was on schedule according to its

maintenance plan.

6-3 ADDITIONAL INDICATORS (AND COMPONENTS) USED FOR THE

PHMAP ASSESSMENT. The following is a listing of the additional five

indicators that are deemed appropriate by HUD to evaluate the

management performance of PHAs, with the current components, weights,

data source, and other explanatory matters to be considered with each.

These indicators were deemed appropriate by HUD because they reflect

key management areas of a PHA\'s operation. Indicators #8, #9 and #10

examine a PHA\'s financial capability and management. Indicator #11

examines the quality of life a PHA provides to its residents, a PHA\'s

clients. And indicator #12 examines a PHA\'s ability to develop

additional public housing units for eligible recipients. (6)(j)

(1)(H) of the Act and 24 CFR 901.10(a)

A. Indicator #8, tenants accounts receivable (TAR). This indicator

examines the percentage of monies owed to a PHA by residents in

possession. (6)(j)(1)(H) of the Act and 24 CFR 901.10(b)(8)

1\. Grade A: Tenants accounts receivable for tenants in

possession, excluding amounts covered by formal up-to-date

repayment agreements, is 5% or less of total tenant charges

for the reporting period. 24 CFR 901.10(b)(8)(i)

2\. Grade C: Tenants accounts receivable for tenants in

possession, excluding amounts covered by formal up-to-date

repayment agreements, is greater than 5% and less than or

equal to 10% of total tenant charges for the reporting period.

24 CFR 901.10(b)(8)(ii)

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7460.5

Chapter 6, paragraph 6-3A (continued)

3\. Grade F: Tenants accounts receivable for tenants in possession,

excluding amounts covered by formal up-to-date repayment

agreements, is greater than 10% of total tenant charges for the

reporting period. 24 CFR 901.10(b)(8)(iii)

4\. This indicator has a scoring weight of x1. 24 CFR 901.10(b)(8)

5\. Indicator #8, tenants accounts receivable, requirements.

a\. PHAs will respond on the PHMAP certification, Form

HUD-50072, Public Housing Management Assessment Program

(PHMAP) Certification, Appendix 4, whether it elects to use

either the annual TAR report data or an average of both the

semi-annual and annual TAR report data for the PHMAP

assessment. After the initial year of PHMAP implementation,

high-performing PHAs, which will be relieved from submitting the

semi-annual TAR report, may elect to submit an average of both

the semi-annual and annual TAR report data for the PHMAP

assessment. The data utilized for this indicator shall be

PHA-wide.

b\. If a PHA elects to average its semi-annual and annual TAR

report, the Field Office shall average Form HUD-52295, Report

of Tenants Accounts Receivable (TARs), The Financial

Management Handbook 7475.1, as revised, Exhibit 7-5, block E5

for the calculation of this indicator.

c\. If a PHA has been required by the Field Office to submit Form

HUD-52295, Report of Tenants Accounts Receivable (TARs),

more than semi-annually and annually in accordance with The

Financial Management Handbook 7475.1, as revised, the Field

Office shall average Form HUD-52595, Report of Tenants

Accounts Receivable (TARs), The Financial Management

Handbook 7475.1, as revised, Exhibit 7-5, block E5, for all of

the TAR reports a PHA was required to submit during its

immediate past fiscal year.

d\. A PHA may exclude any charges not yet due from Form

HUD-52295, Report of Tenants Accounts Receivable (TARs).

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7460.5

Chapter 6, paragraph 6-3A5 (continued)

e\. Data source: Tenants Accounts Receivable (TAR) module,

SMIRPH.

6\. Indicator #8, tenants accounts receivable, guidance. The term

\"formal up-to-date repayment agreement\" refers to a written and

signed agreement by a resident to pay the amount of accounts

receivable due in specific amounts on a specific schedule (which

may include back rent, maintenance charges, damage charges, excess

utilities, or any other charges), 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.

a\. The agreement may be directly between the resident and the

PHA, by court order obtained against the resident, or by

resident arrangement with a third party for automatic payment

to the PHA; for example, by payroll deduction, by payment from

a social service agency, etc.

b\. Agreements signed by residents authorizing third party agency

payments on their behalf may be considered to be up-to-date

even if the agency is late making the payments or has a policy

of bi-monthly payments.

c\. Judgments (court orders) obtained against residents ordering

them to make payments are up-to-date unless/until the resident

fails to comply.

d\. In addition, a PHA may consider in the category of formal

up-to-date repayment agreements those amounts which must be

charged to a resident in continued occupancy but for which

collection by the PHA cannot be accepted for legal reasons; for

example, rent charged after a Notice to Vacate has been issued

when acceptance of a partial rent payment would, by State or

local law, invalidate or stop the eviction process.

e\. The calculation of this indicator shall be PHA-wide.

B. Indicator #9, operating reserves. This indicator examines the

percentage of operating reserves maintained by any PHA.

(6)(j)(1)(H) of the Act and 24 CFR 901.10(b)(9)

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7460.5

Chapter 6, paragraph 6-3B (continued)

1\. Grade A: Operating reserves, excluding TAR and modified for

year-end adjustments, are 40% or greater of the maximum operating

reserves. 24 CFR 901.10(b)(9)(i)

2\. Grade C: Operating reserves, excluding TAR and modified for

year-end adjustments, are less than 40% and greater than or equal to

20% of maximum operating reserves. 24 CFR 901.10(b)(9)(ii)

3\. Grade F: Operating reserves, excluding TAR and modified for

year-end adjustments, are less than 20% of maximum operating reserves.

24 CFR 901.10(b)(9)(iii)

4\. This indicator has a scoring weight of x1. 24 CFR 901.10(b)(9)

5\. Indicator #9, operating reserves, requirements.

a\. The calculation of a PHA\'s operating reserves excludes any funds

placed in reserve for the CGP. CGP funds shall be separate from

a PHA\'s operating reserves for modernization purposes.

b\. A PHA shall receive a presumptive score for this indicator that

does not include year-end adjustments. Field Offices shall

complete the determination for this indicator after PHAs submit

their year-end adjustments.

c\. In the initial year of PHMAP implementation and for the

purposes of the CGP, Field Offices shall complete this indicator

after year-end adjustments are available; e.g., during the time

frame when a PHA appeals may be submitted. A PHA shall

receive a presumptive score for this indicator that does not

include year-end adjustments. However, before a final

determination is made in regards to the CGP Comprehensive

Plan, Field Offices will have sufficient time to complete the

determination for this indicator.

d\. Data source: Financial Statistics module, SMIRPH.

6\. Indicator #9, operating reserves, guidance.

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7460.5

Chapter 6, paragraph 6-3B6 (continued)

a\. The term \"year-end adjustments\" means the adjustments made

after the end of a PHA\'s fiscal year based upon actual

experience during the year and may result in additional

operating subsidy eligibility owed to the PHA or a reduction

in eligibility and an amount owed HUD. For example:

\(1\) An increase in a PHA\'s utility rate may increase the

amount of operating subsidy a PHA receives; or

\(2\) An increase in investment income earned may result in a

decrease in the amount of operating subsidy a PHA

receives.

b\. A PHA may have emergencies or disasters that deplete reserves.

If a PHA receives CGP funding, it may reprogram funds to

address the emergency. If a PHA is not a CGP agency, it may

submit a request for emergency modernization funding. The

Field Office will consider the nature of expenditures when the

reserve level is reduced below 40% and depleted awaiting

reimbursement from modernization.

c\. A PHA is not required to certify to the response to this

indicator. However, an optional worksheet that PHAs may use

for calculating this indicator is included in Appendix 5 of

this Handbook. A sample worksheet showing the calculation of

operating reserves immediately follows the worksheet in

Appendix 5. The worksheet will include adjustments in years

when a pro-ration has occurred (years that operating subsidy

was funded at less than 100%) and year-end adjustments.

C. Indicator #10, routine operating expenses. This indicator examines an

agency\'s level of operating expenses as compared to operating income

and subsidy. (6)(j)(1)(H) of the Act and 24 CFR 901.10(b)(10)

1\. Grade A: Over the most recent three-year period, total routine

operating expenses are less than or equal to operating income and

subsidy. 24 CFR 901.10(b)(10)(i)

2\. Grade C: For two out of the past three years, total routine

operating expenses are less than or equal to operating income and

subsidy. 24 CFR 901.10(b)(10)(ii)

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7460.5

Chapter 6, paragraph 6-3C (continued)

3\. Grade F: For two out of the past three years, total routine
operating

expenses exceed operating income and subsidy. 24 CFR 901.10(b)

(10)(iii)

4\. This indicator has a scoring weight of x1. 24 CFR 901.10(b)(10)

5\. Indicator #10, routine operating expenses, requirements. Data
source:

Financial Statistics module, SMIRPH.

6\. Indicator #10, routine operating expenses, guidance.

a\. A PHA is encouraged by this indicator to maintain a consistent

level of routine expenditures, such as administrative overhead,

employee benefits, routine maintenance and supplies. However, a

PHA is not penalized if funds are needed for capital

improvements through extraordinary maintenance, equipment

addition/replacement or if a casualty loss or emergency occurs.

b\. A small PHA that has close to \$100,000 in its operating reserve at

the beginning of its fiscal year, and will exceed \$100,000 at the

end of its fiscal year, may spend the excess over \$100,000 on

capital improvements and extraordinary maintenance. In such a

case, the small PHA is not required to request a modification to

this indicator.

c\. A PHA is not required to certify to the response to this indicator.

However, an optional worksheet that PHAs may use for

calculating this indicator is included in Appendix 5 of this

Handbook. A sample worksheet showing the calculation of

routine operating expenses immediately follows the optional

worksheet in Appendix 5. The worksheet will also:

\(1\) Include adjustments in years when a pro-ration has occurred

to avoid penalizing PHAs in years that operating subsidy was

funded (pro-rated) at less than 100 percent; and

\(2\) Take into account PHAs that have been allowed to retain

residual receipts. HUD requires that residual receipts are

remitted to HUD with the year-end financial statements.

Recently, HUD has increased the maximum reserve levels to

6-41 3/92

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7460.5

Chapter 6, paragraph 6-3C6c(2) (continued)

at least \$100,000 which has significantly reduced the

number of small PHAs repaying residual receipts.

D. Indicator #11, resident initiatives. This indicator encourages a

partnership between residents and PHAs to develop and implement a

resident initiatives agenda to create self-sufficiency opportunities

and maintain viable, safe and drug-free public housing developments.

(6)(j)(1)(H) of the Act and 24 CFR 901.10(b)(11)

1\. Grade A: The PHA Board has adopted policies and implemented

procedures to support and encourage activities in the areas of

anti-drug strategy/security; resident participation/management;

homeownership opportunities; and economic development/

self-sufficiency. There is evidence of significant activity in

three areas at one or more developments (e.g., reduced drug-related

crime, established newly organized resident groups/increased

resident participation on the PHA Board; provided technical

assistance/training to resident groups; assisted first-time

resident homebuyers; provided supportive services to enhance

self-sufficiency for families; has contracted in the past year

with a resident-owned business or utilized Comprehensive Grant

Program/CIAP activities to promote resident job creation pursuant

to section 3 of the Housing and Urban Development Act of 1968, as

amended) during a PHA\'s immediate past fiscal year. 24 CFR

901.10(b)(11)(i)

2\. Grade B: The PHA Board has adopted policies and implemented

procedures to support and encourage activities in the areas of

anti-drug strategy/security; resident participation/management;

homeownership opportunities; and economic development/

self-sufficiency. There is evidence of significant activity in

two areas at one or more developments (refer to examples in grade

A above) during a PHA\'s immediate past fiscal year. 24 CFR

901.10(b)(11)(ii)

3\. Grade C: The PHA Board has adopted policies and implemented

procedures to support and encourage activities in the areas of

anti-drug strategy/security; resident participation/management;

homeownership opportunities; and economic development/

self-sufficiency. There is evidence of significant activity in

one area at one or more developments (refer to examples in grade A

above) during a PHA\'s immediate past fiscal year. 24 CFR

901.10(b)(11)(iii)

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7460.5

Chapter 6, paragraph 6-3D (continued)

4\. Grade D: The PHA Board has adopted policies and implemented

procedures to support and encourage activities in the areas of

anti-drug strategy/security; resident participation/management;

homeownership opportunities; and economic development/

self-sufficiency. There is evidence of minimal activity in one area

at one or more developments (refer to examples in grade A above)

during a PHA\'s immediate past fiscal year. 24 CFR 901.10(b)(11)(iv)

5\. Grade E: The PHA Board has adopted policies in the areas of
anti-drug

strategy/security; resident participation/management;

homeownership opportunities; and economic development/self-sufficiency.

There is no evidence of activity in any area (refer to

examples in grade A above) during a PHA\'s immediate past fiscal year.

24 CFR 901.10(b)(11)(v)

6\. Grade F: The PHA Board has not adopted policies and implemented

procedures, or has not initiated any activities in the areas of

anti-drug strategy/security; resident participation/management;

homeownership opportunities; and economic development/self-sufficiency

during a PHA\'s immediate past fiscal year. 24 CFR 901.10(b)(11)(vi)

7\. This indicator has a scoring weight of x3. 24 CFR 901.10(b)(11)

8\. Indicator #11, resident initiatives, requirements.

a\. In the initial year of PHMAP implementation, PHAs will receive

at least a grade \"C\" rating for this indicator. PHAs performing

above this presumptive level will receive a higher rating.

b\. A PHA shall certify to its actual activity under this indicator to

ensure an accurate national data base. The PHMAP module in

SMIRPH will automatically rate each PHA at least a grade \"C\".

c\. This indicator assesses whether or not a PHA has Board adopted

policies and procedures; and evidence of activity within the four

resident initiative program areas (e.g., anti-drug strategy/

security; resident participation/management; homeownership

opportunities; and economic development/self-sufficiency). The

grades within this indicator reflect the type and number of

activity within the four resident initiative program areas.

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7460.5

Chapter 6, paragraph 6-3D8 (continued)

d\. Data source: a PHA shall certify to this indicator 90 calendar

days after its fiscal year begins (FYB).

\(1\) Certification shall be for the immediate past fiscal year.

\(2\) Documentation verifying this indicator shall be maintained by

the PHA for HUD post-review.

9\. Indicator #11, resident initiatives, guidance.

a\. There is a nexus between good property management and

resident initiatives, as resident initiatives are likely to have a

positive impact on resident behavior which can help keep units in

decent, safe and sanitary condition, and reduce needs for

modernization and maintenance funding.

b\. A PHA can score above grade \"C\" in this indicator if it has

implemented effective resident programs in whatever areas meet

the local resident needs given the size of the PHA and its regional

characteristics. The following guidance is provided as flexible

benchmarks in making this determination given the diversity

among PHA communities.

c\. Ideally, PHAs should show evidence of significant resident

initiatives activities in all developments. Evidence of resident

initiatives activity should be evaluated on an on-going basis and

should be supported, where required, by PHA progress reports to

the Field Office, showing that the PHA has a role in promoting

resident initiatives. Such reports might include news reports,

minutes from resident meetings discussing Resident Initiatives

policies and implementation procedures, quarterly reports, and

statistical evidence.

d\. Public housing developments are diverse with regard to size,

resident population and regional differences. Therefore, it is

difficult to devise one measuring instrument to judge the entire

group. The following guide can be used to assess the

performances of the PHA considering the differences among

communities. It offers guidance for evaluating a PHA\'s

effectiveness at meeting each of the four resident initiatives:

resident participation/management, anti-drug strategy/security,

3/92 6-44

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7460.5

Chapter 6, paragraph 6-3D9d (continued)

economic development/self-sufficiency, and homeownership

opportunities.

e\. Resident participation and management.

\(1\) A PHA shall be able to demonstrate evidence of ongoing

and meaningful resident involvement in housing agency

planning, policy development and program implementation

in all decision making areas, like appropriate maintenance,

management, rehabilitation, security and resident

self-sufficiency programs. For example: 24 CFR 964.17 and

968.320(b)

\(a\) The encouragement of the appointment of a resident to

the Board of Commissioners;

\(b\) Participation in regular meetings with resident groups;

and

\(c\) Formal discussions of special topics with residents.

\(2\) A PHA shall be able to demonstrate evidence of good faith

negotiations with residents interested in forming Resident

Management Corporations (RMCs). For example: 24 CFR

964.27(a)

\(a\) Provide or assist in obtaining technical assistance for

training;

\(b\) Develop a Memorandum of Understanding with the

resident group; and

\(c\) Design specific training programs to develop the

capacity for residents to enter into a contract with the

PHA.

\(3\) A PHA should be able to demonstrate evidence that

sufficient financial resources are available and have been

focused oil programs to develop resident capacity. For

example:

6-45 3/92

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7460.5

Chapter 6, paragraph 6-3D9e(3) (continued)

\(a\) The residents are aware specifically of the budget

allocated for their resident self-sufficiency program;

\(b\) Full implementation of Comprehensive Grant/

Comprehensive Improvement Assistance Program; and

\(c\) Resident participation requirements and funding

opportunities.

f\. Anti-drug strategy and security.

\(1\) A PHA should be able to demonstrate evidence of adequate

efforts to secure police protection in the public housing

community. For example: a description of the level and

type of police protection the development receives with the

number of arrests, the degree of severity of the infractions

committed, and the overall criminal reputation of the area.

\(2\) A PHA shall be able to demonstrate evidence of full

participation from a resident council, RMC, or other formal

resident group in the implementation of the drug elimination

grants. For example: 24 CFR 961.3

\(a\) Local television or news stories of participating

programs;

\(b\) Notes from resident meetings where participation

and/or implementation of the drug programs are

discussed or reported; and

\(c\) Funding provided for resident security patrols,

prevention activities, etc.

\(3\) A PHA should be able to demonstrate evidence that the

PHA or its social service partners have provided effective

preventive drug education. For example: reduction in drug

related arrest, crime or vandalism; and

\(4\) A PHA should be able to demonstrate evidence that the

PHA has identified referral sources for drug treatment and

provided information on how to access these services. For

3/92 6-46

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7460.5

Chapter 6, paragraph 6-3D9f(4) (continued)

example: a list of phone numbers and addresses posted in

conspicuous places around the development.

\(5\) A PHA shall be able to demonstrate evidence that

substantiates enforcement of the lease policies regarding

drug use or trafficking and that these policies are very

stringent. For example: report on number of dismissals or

other enforcement resulting from the lease policies

regarding drug use and trafficking. 503 of the NAHA

\(6\) A PHA should be able to demonstrate evidence that it

facilitated the development of and access to youth programs

for youngsters in the public housing community. For

example:

\(a\) Report of the number of youth participating in various

recreational and academic programs. There could be

some overlap here with education programs since many

anti-drug programs involve academic components; and

\(b\) Creation of new youth sports and cultural programs.

g\. Economic development and self-sufficiency,

\(1\) A PHA should be able to demonstrate evidence that tutoring

services are in place and accessible to families. For

example:

\(a\) Cooperation with a local college, education agency, or

some volunteer public or private partnership to secure

tutoring services for the academic needs of the

residents;

\(b\) On-site or nearby learning centers that are easily

accessible in a safe environment;

\(c\) Programs that enhance school attendance and reward

academic excellence such as good report cards; and

\(d\) Intergenerational programs that involve the parents as

well as the children.

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7460.5

Chapter 6, paragraph 6-3D9g (continued)

\(2\) A PHA should be able to demonstrate evidence that access

to other educational avenues are available either on-site or

in partnership with institutions elsewhere. For example:

\(a\) Computer classes and cultural enrichment

opportunities; and

\(b\) College courses offered on-site as well as GED training

and job training with emphasis on job acquisition and

retention skills.

\(3\) A PHA shall be able to demonstrate evidence that it has, to

the extent feasible, facilitated the training and development

of and/or contracted with some resident-owned business in

the past year. For example: 24 CFR 135.1

a\. A list of training initiatives and partnerships created for

access to funds; and

b\. A list resident businesses that exist or are in the process

of being developed.

\(4\) A PHA shall be able to demonstrate, to the extent feasible,

evidence that resources are available to create jobs and train

residents. For example: a list of placement and training

activities. 24 CFR 135.1

\(5\) A PHA should be able to demonstrate evidence that

adequate affordable child care is available to residents either

formally, informally, or both. For example: a list of child

care providers and number of children served.

\(6\) A PHA may be able to demonstrate evidence of the

availability of health care and other supportive services such

as transportation, enrichment programs, personal

development and financial counseling should be in place.

For example:

\(a\) Immunization and dental checkups on-site or easily

available;

3/92 6-48

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7460.5

Chapter 6, paragraph 6-3Dg(6) (continued)

\(b\) An organized group of older residents who advise the

younger residents on child rearing;

\(c\) Wellness clinics;

\(d\) Nutrition and personal development classes; and

\(e\) Reverse commute programs.

\(7\) A PHA may be able to demonstrate evidence of providing

effective programs that serve the needs of the elderly

population. For example:

\(a\) Cultural development programs;

\(b\) Financial counseling; and

\(c\) Special geriatric programs.

h\. Homeownership opportunities.

\(1\) A PHA should be able to demonstrate evidence that the

PHA has made serious attempts to inform and explain to

residents that opportunities for purchasing housing are

available. For example:

\(a\) HOPE workshops; and

\(b\) Funds provided for resident participation in regional

and national seminars on homeownership.

\(2\) A PHA should be able to demonstrate evidence of an on-going

system set-up to answer questions and further inform

residents about homeownership options. For example:

\(a\) Frequent newsletter articles explaining the intricacies of

HOPE and/or other homeownership programs along

with phone numbers for obtaining more information;

\(b\) Posters and bulletin board presentations promoting

homeownership; and

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7460.5

Chapter 6, paragraph 6-3Dh(2) (continued)

\(c\) Minutes from resident meetings where homeownership

is discussed.

\(3\) A PHA should be able to demonstrate evidence of concrete

plans to provide technical assistance to move residents

onto a homeownership tract if they wish to strive to meet

the eligibility requirements. For example:

\(a\) Counseling seminars for residents interested in

homeownership; and

\(b\) Develop financing arrangements with state and local

housing finance agencies, private entities, etc.

i\. Where PHAs score below a grade \"C\" on this indicator, the Field

Office should be proactive in encouraging the PHAs and the

residents to design and implement resident initiative programs.

j\. An optional worksheet that PHAs may use for calculating this

indicator is included in Appendix 5 of this Handbook. A sample

worksheet showing the calculation of routine operating expenses

immediately follows the optional worksheet in Appendix 5.

E. Indicator #12, development. This indicator examines an agency\'s

ability to develop additional units for occupancy by public housing

residents and/or to undertake the Major Reconstruction of Obsolete

Projects (MROP) funded since 1989. The assessment period is from

fund reservation through not more than 12 months after Actual

Development Cost Certification (ADCC) approval. (6)(j)(1)(H) of

the Act and 24 CFR 901.10(b)(12)

1\. Component #1 - Quality of contract administration. 24 CFR

901.10(b)(12)(i)

a\. Grade A: Based on HUD\'s in-office reviews of the PHA\'s

submissions, development contracting for design and/or

inspecting architects, engineering services, site options and

purchase agreements, general contractors or turnkey developers,

etc., (contracts for site options and purchase agreements, as

well as contracts with turnkey developers, do not apply to

MROPs) conform to HUD requirements concerning method of

selection (procurement), contracting, and contract

administration; there are

3/92 6-50

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7460.5

Chapter 6, paragraph 6-3E1a (continued)

no significant findings (e.g., statutory, regulatory or health and/or

safety violations) regarding a PHA\'s contracting and contract

administration. 24 CFR 901.10(b)(12)(i)(A)

b\. Grade C: Based on HUD\'s in-office reviews of the PHA\'s

submissions, development contracting and contract administration

do not always conform to HUD requirements concerning method

of selection (procurement), contracting, and contract

administration; there were no more that four significant findings

relating to contract administration and the PHA has corrected or

is in the process of correcting those monitoring findings related to

contract administration. 24 CFR 901.10(b)(12)(i)(B)

c\. Grade F: Based on HUD\'s follow-up monitoring of a PHA\'s

development contracting and contract administration, the PHA\'s

development contracting requirements do not conform to HUD

requirements, or there were more than four significant findings

relating to contract administration, or the PHA either did not

correct its inappropriate practices or it is continuing to engage in

improper contracting practices. 24 CFR 901.10(b)(12)(i)(C)

d\. Component #1 requirement. Component #1, quality of contract

administration, has a weight of x1. 24 CFR 901.10(b)(12)(i)

e\. Component #1 guidance.

\(1\) The term \"conform to HUD requirements\" (in grade \"A\")

means in compliance with 24 CFR 85 for procurement;

and the PHA utilizes the standard HUD contract forms or

guideline contracts, for contracting and contract

administration.

\(2\) The term \"do not always conform to HUD requirements\" (in

grade \"C\") means in compliance with 24 CFR 85 for

procurement; and the PHA utilizes a different contract form

without HUD authorization no more than one time, and

HUD subsequently reviews and approves the substitute

contract, for contracting and contract administration.

\(3\) The term \"do not conform to HUD requirements\" (in grade

\"F\") means not in compliance with 24 CFR 85 for

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7460.5

Chapter 6, paragraph 6-3E1e(3) (continued)

procurement; or the PHA utilizes a different contract form

without HUD authorization more than one time and HUD

does not subsequently approve the substitute contract, for

contracting and contract administration.

2\. Component #2 - Timeliness of development/MROP. This component

does not include valid delays resulting from legal action affecting a

development or MROP, or a delay as a result of HUD actions or

inaction. 24 CFR 901.10(b)(12)(ii)

a\. Grade A: Construction/rehabilitation started (or Date of Full

Availability DOFA achieved for acquisition) in no more than 21

months from the date of fund reservation, excluding any valid

reasons beyond the PHA\'s control, and contract for construction/

rehabilitation was completed in accordance with the contract time.

Projects reserved but not started have met all processing

deadlines preceding construction start or DOFA for acquisition

projects. 24 CFR 901.10(b)(12)(ii)(A)

b\. Grade C: Construction/rehabilitation started (or DOFA achieved

for acquisition) in more than 21 months, but less than or equal to

30 months from fund reservation, excluding any valid reasons

beyond the PHA\'s control, and construction/ rehabilitation was

completed in no more than 30 days past the date specified in the

contract and for which liquidated damages were assessed, if

applicable (e.g., the delay was not the responsibility of the PHA).

Projects reserved but not started have met all extended deadlines

preceding construction start or DOFA for acquisition projects.

24 CFR 901.10(b)(12)(ii)(B)

c\. Grade F: Construction/rehabilitation started (or DOFA achieved

for acquisition) more than 30 months from fund reservation,

excluding any valid reasons beyond the PHA\'s control, or contract

for construction/rehabilitation was completed in excess of 30 days

past the date specified in the contract or, if applicable,

liquidated damages were not assessed. Projects reserved but not

started failed to meet extended processing deadlines preceding

construction start or DOFA for acquisition projects. 24 CFR

901.10(b)(12)(ii)(C)

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7460.5

Chapter 6, paragraph 6-3E2 (continued)

d\. Component #2 requirement. Component #2, timeliness of

development, has a weight of x2. 24 CFR 901.10(b)(12)(ii)

e\. Component #2 guidance. Liquidated damages does not apply to

turnkey projects.

3\. Component #3 - Quality of the physical work. 24 CFR 901.10(b)

(12)(iii)

a\. Grade A: Based on HUD\'s on-site inspection(s), the physical

work is being carried out in accordance with the HUD-approved

budget, plans and specifications, CIAP standards in accordance

with Handbook 7485.2, as revised, have been met for MROP; the

work is being inspected by the PHA in accordance with

requirements and there are no significant monitoring findings

(e.g., statutory, regulatory, or health and/or safety violation)

relating to the quality of physical work or inspections, including

items of delayed completion; and all design/construction

deficiencies were corrected within two years of DOFA, or are in

the process of being corrected if DOFA was less than two years

ago. 24 CFR 901.10(b)(12)(iii)(A)

b\. Grade C: Based on HUD\'s on-site inspection(s), the physical

work is being carried out in accordance with the HUD-approved

budget, plans and specifications, CIAP standards in accordance

with Handbook 7485.2, as revised, have been met for MROP; the

work is being inspected by the PHA in accordance with

requirements; there are no more than four significant monitoring

findings ; the PHA has or is in the process of correcting those

significant findings; and all design/construction deficiencies

corrected within three years of DOFA, or are in the process of

being corrected if DOFA was less than three years ago. 24 CFR

901.10(b)(12)(iii)(B)

c\. Grade F: Based on HUD\'s on-site inspections, the physical work

is not being carried out in accordance with the HUD-approved

budget, plans and specifications, CIAP standards in accordance

with Handbook 7485.2, as revised, have not been met for MROP;

the work is not inspected by the PHA in accordance with HUD

requirements; there are more than four significant monitoring

findings; the PHA has not resolved the significant monitoring

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7460.5

Chapter 6, paragraph 6-3E3c (continued)

findings related to the quality of physical work or inspections; or

design/construction deficiencies were not identified within three

years of DOFA. 24 CFR 901.10(b)(12)(iii)(C)

d\. Component #3 requirement. Component #3, quality of the

physical work, has a weight of x3. 24 CFR 901.10(b)(12)(iii)

4\. Component #4 - Budget controls. This component has a weight of x1.

24 CFR 901.10(b)(12)(iv)

a\. Grade A: Costs do not exceed approved budgets; shifts of funds

between major accounts are fully justified and submitted in a

timely fashion; financial records are properly maintained in a

condition able to be audited; the Actual Development Cost

Certificate (ADCC) was submitted within 24 months of DOFA

unless prior written approval was granted by HUD for an

extension; excess funds were remitted within 30 days of ADCC

approval, if applicable. MROP units are clearly separated by

project number and budget from other MROP, CIAP, CGP and

development projects. 24 CFR 901.10(b)(12)(iv)(A)

b\. Grade C: For development: costs do not exceed the total

development cost approved by HUD. For MROP: the

reservation amount was between 70% and 90% of the total

development cost limitation in effect on the reservation date.

Current total costs do not exceed the amount reserved by more

than 5% and no increase in the scope of work occurred. For both

development and MROP: overruns in major accounts are in the

process of being justified and a revised budget is being submitted;

errors in financial record keeping associated with the development

or MROP that were brought to the PHA\'s attention during

processing are being corrected by the PHA; the ADCC was

submitted for approval more than 24 months after DOFA without

prior written approval from HUD for an extension; excess funds

were remitted in more than 30 days but less than or equal to 90

days of ADCC approval, if applicable. 24 CFR 901.10(b)(12)

(iv)(B)

c\. Grade F: For development: costs exceeded the total

development cost approved by HUD. For MROP: costs

exceeded the applicable cost limitation because of increased scope

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7460.5

Chapter 6, paragraph 6-3E4c (continued)

of work. For both development and MROP: overruns in major

accounts were not properly justified; or the PHA failed to

maintain project financial records in a condition able to be

audited; or the ADCC was not submitted for approval, if

applicable; or excess funds were not returned to HUD as

required, if applicable. 24 CFR 901.10(b)(12)(iv)(C)

d\. Component #4 requirement. Component #4, budget controls,

has a weight of x1. 24 CFR 901.10(b)(12)(iv)

5\. Indicator #12, development/MROP, requirements.

a\. The individual responsible for development in the Field Office

will perform an assessment, within 90 days after the due date for

PHA certification submission, for each development or MROP

project for which an Actual Development Cost Certificate

(ADCC) has not been approved, or was approved within the last

12 months.

b\. If construction deficiencies are identified after approval of the

ADCC, a supplemental evaluation will be performed noting the

deficiencies and the extent to which the deficiencies affect any of

the previous evaluations.

c\. The Mortgage Credit Branch and the Housing Programs Branch

shall review this indicator to determine the extent to which the

PHA proceeded with development within the approved budget or

incurred expenses without submitting a revised budget.

d\. Data source: Form HUD-5378, Construction Report; Form

HUD-5379, HUD Representative Trip Report; Form HUD-5370,

General Conditions; Form HUD-52554, Supplement to General

Conditions; Form HUD-53015, Turnkey Contract of Sale; Form

HUD-52423, Notice of Date of Full Availability; Form

HUD-52488, Development Cost Budget; and Form HUD-51915,

Agreement Between Owner and Architect.

e\. This indicator has a scoring weight of x1. 24 CFR 901.10(b)

\(12\)

6\. Indicator #12, development/MROP, guidance.

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7460.5

Chapter 6, paragraph 6-3E6 (continued)

a\. Development/MROP is more than bricks and mortar; it also

involves the use of appropriate procurement procedures, the

timeliness of actions taken and the attention to fiscal matters.

The quality of the design, construction materials and systems are

approved prior to the commencement of development/MROP.

This indicator measures a PHA\'s ability to ensure such quality

through the process of development/MROP.

b\. The Public Housing Development Handbook 7417.1, as revised,

requires the PHA architect/engineer to make periodic visits to the

site to determine the quality and progress of work and submit

reports to the PHA on the first and sixteenth day of each month.

It also requires a HUD representative to visit the site at least

monthly to evaluate construction/rehabilitation and PHA

administration activities. The HUD representative must submit a

trip report; a copy is provided to the PHA. The evaluation of this

indicator shall be based on the HUD inspections and a review of

the PHA architect\'s/engineer\'s reports.

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