7460.5

CHAPTER 10. IMPROVEMENT PLAN (IP)

10-1 PURPOSE. The purpose of this Chapter is to provide guidance in

addressing PHAs that have not been designated troubled or

mod-troubled, but which have major problems in key management

performance areas.

10-2 IMPROVEMENT PLAN (IP)-REQUIREMENT.

A. After receipt of the Field Office notification letter in

accordance with § 901.120(b) or receipt of a final resolution

of an appeal in accordance with 901.130, a PHA shall, to the

extent possible, correct any deficiency indicated in its

management assessment within 90 calendar days. If deficiencies

are corrected within 90 calendar days after receipt of the Field

Office notification letter or receipt of a final resolution of

an appeal, it is not necessary for a PHA to submit an IP. 24

CFR 901.145(a)

B. A PHA shall notify the Field Office of actions taken to correct

a deficiency and submit new performance data for the respective

indicator(s). 24 CFR 901.145(b)

C. If the Field Office determines that a PHA has not corrected a

deficiency as required, the Field Office may require a PHA to

prepare and submit to the Field Office an IP within 90 calendar

days after receipt of the Field Office notification letter in

accordance with or receipt of a final resolution of an appeal.

A PHA may be able to correct most deficiencies within this time

frame. A PHA will be aware of most deficiencies at the time it

performs its own assessment and submits its certification. The

correction of deficiencies should begin immediately after

identification and continue through the Field Office assessment

process and appeals process, if any. At a minimum, a PHA has

270 calendar days after its fiscal year begins to correct a

deficiency before an IP may be requested. 24 CFR 901.145(c)

1\. The Field Office shall require a PHA to submit an IP, which

includes the information stated in D, below, for each

indicator that a PHA scored a grade \"F\" and the

deficiencies have not been corrected. 24 CFR

901.145(c)(1)

2\. The Field Office may require, on a risk analysis basis, a

PHA to submit an IP, which includes the information stated

in D, below, for each indicator that a PHA scored a grade

\"D\" or \"E\" and the deficiencies have not been corrected.

24 CFR 901.145(c)(2)

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7460.5

Chapter 10, paragraph 10-2 (continued)

D. An IP shall: 24 CFR 901.145(d)

1\. Identify each uncorrected deficiency indicated in a PHA\'s

management assessment; 24 CFR 901.145(d)(1)

2\. Describe the procedures that will be followed to correct

each deficiency; and 24 CFR 901.145(d)(2)

3\. Provide a timetable for the correction of each deficiency.

24 CFR 901.145(d)(3)

E. The Field Office will approve or deny an IP, and notify the PHA,

in writing, of its decision within 30 calendar days of receipt

of the IP. 24 CFR 901.145 (e)

F. An IP that is not approved will be returned to the PHA with

written recommendations from the Field Office for revising the

IP to obtain approval. 24 CFR 901.145(f)

G. A revised IP shall be resubmitted by the PHA within 30 calendar

days of its receipt of the Field Office recommendations. 24

CFR 901.145(f)

H. If a PHA fails to submit an acceptable IP, or to correct

deficiencies within the time specified in an IP or such

extensions as may be granted by HUD, the Field Office will

notify the PHA, in writing, of its noncompliance. 24 CFR

901.145(g)

1\. The PHA will provide HUD its reasons, in writing, for lack

of progress in submitting or carrying out the IP within 30

calendar days of its receipt of the noncompliance

notification. 24 CFR 901.145(g)

2\. HUD will advise the PHA, in writing, as to the

acceptability of its reasons for lack of progress and, if

unacceptable, will notify the PHA that it will be subject

to sanctions provided for in the ACC and applicable

regulations, including but not limited to, 24 CFR 24 or

24 CFR 901, subpart C. 24 CFR 24 and 901.145(g)

a\. 24 CFR 24 includes limited denial of participation,

suspension and debarment.

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7460.5

Chapter 10, paragraph 10-2H2 (continued)

b\. Other sanctions include the substantial default by a

PHA in accordance with 24 CFR 24 , which states that

upon the occurrence of events or conditions that

constitute a substantial default by a PHA with respect

to the covenants or conditions to which the PHA is

subject; and The Field Office Monitoring of Public

Housing Agencies (PHAs) Handbook 7460.7, as revised.

10-3 SCOPE OF AN IP.

A. The scope of the IP may vary depending upon the extent of the

problems present in the PHA, but shall include the elements

listed below.

1\. A description of the involvement, if any, of local public

and private entities in carrying out the IP and rectifying

the PHA\'s problems.

2\. Baseline data, which may be the PHA\'s score in each of the

indicators identified as a problem.

3\. Annual and quarterly performance targets shall be in

accordance with paragraph 10-5D, below, which may be the

attainment of a higher performance level within an

indicator that is a problem, or the description of a

proposed action to be taken (e.g., the reduction of rents

uncollected to 3% or less by the end of the IP annual

period).

a\. To the extent possible, annual and quarterly

performance targets shall be quantified.

b\. If not possible, a description of the proposed action

may serve as the performance target (e.g., the

development and implementation of a PHA preventive

maintenance program by a specific date).

4\. Major strategies to be used by the PHA in achieving the

performance targets within the time period of the IP.

5\. The PHA\'s commitment to take all actions within its control

to achieve the targets.

B. A PHA shall have primary responsibility for obtaining active

local public and private entity participation in assisting PHA

improvement efforts, Local public and private entity

participation should be premised upon:

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7460.5

Chapter 10, paragraph 10-3B (continued)

1\. The participant\'s knowledge of the PHA,

2\. The ability to contribute technical expertise with regard to

the PHA\'s specific problem areas; and

3\. The authority to make preliminary/tentative commitments of

support, financial or otherwise.

C. A PHA\'s operating budget must support all performance targets

contained in the IP.

10-4 IP DEVELOPMENT. The development of the IP requires extremely close

communication and coordination between all parties involved. This is

particularly true regarding local government and private sector

involvement.

A. PHA responsibility. The PHA shall have primary responsibility

for obtaining active local government and private sector

participation in assisting PHA improvement efforts.

1\. Private sector and local government involvement should be

encouraged in the IP negotiations.

2\. This participation should include active involvement in the

establishment of performance targets and identification of

strategies to attain the targets.

3\. To the extent it is determined that improvement in specific

areas is dependent upon other than local resources (e.g.,

HUD) consideration shall be given to HUD resources,

including but not limited to technical assistance which may

be available, as well as applicable constraints.

B. The available resources and capabilities.

1\. One of the primary purposes of the development of the IP is

to arrive at preliminary agreements among the participants

as to available resources and capabilities.

2\. Resources and capabilities relate to the:

a\. PHA\'s management capability;

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7460.5

Chapter 10, paragraph 10-4B2 (continued)

b\. PHA\'s financial resources;

c\. Local government\'s willingness to provide technical or

financial assistance in making on-going improvements;

and

d\. Degree and type of private sector assistance which can

be obtained.

C. Participants. The participants in IP development should include

representatives of the entities listed below.

1\. Field Office representative, on a risk analysis basis, if

appropriate.

2\. PHA staff.

3\. Board Chairperson and/or members.

4\. Resident representative.

a\. It is expected that the resident representative would

be selected by the city-wide resident organization

where one exists.

b\. Otherwise, the most equitable and representative

process possible shall be used.

c\. The resident representative shall not be a signatory

to the IP, but is expected to play a role in follow-up

monitoring of IP performance.

5\. Local government and private sector representatives shall

be included as determined appropriate and based on their

willingness to participate.

6\. The Regional Office may be involved on a case-by-case basis

as circumstances may warrant.

D. On-Site Meeting. The team participants, depending on the

severity of the situation, may meet at the PHA as soon as

possible following the Field Office request to a PHA for the

submission of an IP.

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7460.5

Chapter 10, paragraph 10-4D (continued)

1\. This effort shall be coordinated by the Executive Director

or his/her designee.

2\. The intent of an IP is to assist a PHA in improving its

management capabilities. The PHA as an entity, comprised

of the Board of Commissioners and all PHA personnel, rather

than a single individual, is accountable and responsible

for improving its management capabilities. Therefore, the

development and execution of an IP shall not be delayed due

to changing circumstances at the PHA. Such changes

include, but are not limited to:

a\. Change in the Executive Director;

b\. Change in executive staff;

c\. Change in Board composition; or

d\. Change in the Chief Executive of local government.

3\. One of the primary purposes of the on-site work is to

arrive at preliminary agreements among the participants as

to the IP.

4\. The end product resulting from the on-site work should be a

draft IP.

E. Organizational Review. The team participants shall be

responsible for the concurrent review of the draft IP by their

organizations, i.e., PHA Board of Commissioners and Executive

Director, resident representative and Field Office

representative, if appropriate.

1\. It is extremely important at this juncture that all parties

to the impending IP work together in a spirit of mutual

cooperation in order to resolve any differences.

2\. It is anticipated that the team participants will converse

via telephone, conference calls and local meetings.

F. Primary Responsibility. The Executive Director shall be the

primary party responsible for following up with residents, local

government and the private sector to ensure to the maximum

extent possible that any differences of approach or opinion on

the draft IP are resolved and, if not, raised to the attention

of the Field Office.

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7460.5

Chapter 10, paragraph 10-4 (continued)

G. Final Negotiations/Execution of IP.

1\. PHA responsibility. The PHA shall have the lead

responsibility in coordinating with all other IP

participants to schedule the on-site gathering of all key

parties for the purpose of signing the IP, as well as to

negotiate any remaining points which could not otherwise be

resolved.

a\. The key participants may meet on site at the PHA or

such other local site as is deemed appropriate.

b\. The PHA shall be responsible for working to ensure

that public awareness and attention are focused on the

participants\' mutual, cooperative efforts to bring

about improvement in the local PHA\'s condition. Media

(newspaper, television, etc.) coverage should be

pursued as one means of accomplishing this end.

2\. Key participants. The primary signatories to an IP shall

be in accordance with paragraph 10-5F, below.

10-5 SPECIFIC REQUIREMENTS OF AN IP.

A. The IP shall set forth the targets agreed upon, and the PHA\'s

commitment to taking all actions within its control to achieve

the targets.

B. Part A, Participants, of the IP shall include pertinent

information regarding the PHA and a listing of the name, agency,

title and phone number of IP participants.

C. Part B, Public and Private Entity Involvement, of the IP shall

include information regarding the types and monetary value of

assistance provided to the PHA by the local government and

private entities in carrying out the IP and rectifying the PHA\'s

problems.

D. Part C, Performance Targets, of the IP shall include the

indicators failed, baseline data for each failed indicator, the

IP annual performance goal, and quarterly targets for

improvement of performance indicators.

1\. The annual and quarterly performance targets shall span a

maximum period of five years, or a lesser period in which

the PHA is

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7460.5

Chapter 10, paragraph 10-5D1 (continued)

determined to be performing at an acceptable level by the

Field Office in accordance with paragraph 10-3A3 of this

Handbook.

2\. Performance targets shall be accomplished through PHA

strategies, as described in paragraph 10-5E, below.

E. Part D. Strategies, of the IP shall include a listing of those

major strategies to be used by the PHA in achieving the annual

and quarterly performance targets within the time period of the

IP in accordance with Part C.

1\. The strategy portion of Part D is prepared by the PHA and

documents how it proposes to achieve the annual and

quarterly performance targets.

2\. It is expected that these major strategies will have

evolved from the assessment process and the on-site

confirmatory review, if any, and shall be subject to

revision by the PHA, on a yearly basis, to ensure the

achievement of the annual and quarterly performance targets

in Part C.

3\. The development of strategies is the sole responsibility of

the PHA as to content and implementation. However, PHA

strategies to achieve the annual and quarterly performance

targets are expected to be realistic and achievable within

the respective time frame, and to be directly related to

the accomplishment of the stated goals.

F. Part E, Signatories and PHA Assurances of the IP shall provide

for the signatures of the executing parties as stated below, and

the PHA\'s assurances of its commitment to take all actions

within its control to achieve the annual and quarterly

performance targets. PHA assurances shall be included in the

Board resolution executing the IP and the assurances shall

precede the signatures of the PHA Chairperson and Executive

Director in Part E.

1\. The Chairperson of the Board; and

2\. The Executive Director.

3\. The IP shall be ratified by Board resolution, including the

assurances.

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7460.5

Chapter 10 (continued)

10.6 PUBLIC AND PRIVATE SECTOR INVOLVEMENT. PHAs are encouraged on

an ongoing basis to aggressively pursue obtaining local assistance

(refer to paragraph 10-3B, above). Involvement of outside

organizations, public and private, will be necessary if a PHA is to

attract the resources necessary to assist it in bringing about

substantial improvements.

A. Failure to initiate such outreach may severely limit a PHA\'s

ability to bring about significant changes in its public housing

condition.

B. Many PHAs have been successful in receiving Community

Development Block Grant funding, additional police support,

etc., from their cities. Private enterprise has provided

expertise in such areas as data processing, fiscal management,

etc., at little or no cost to some PHAs. However, attracting

such assistance requires that the PHA aggressively promote its

role as a vital part of the community.

C. The Field Office Manager shall support, as much as possible, PHA

attempts to enlist the assistance of local government, the

community and the private business sector.

D. Attempts should be made to seek local press coverage regarding

City, private sector, HUD and PHA cooperative efforts to improve

the local public housing program (refer to paragraph 10-4Gb,

above).

10-7 ONGOING PHA COMMITMENT TO APPROVED IP. Once approved by a

PHA, a PHA shall be bound by the terms of its IP, as ratified to by

the Board resolution which approved the IP.

A. Subsequent changes in the membership of a PHA\'s Board do not

entitle the new Board to disregard the provisions of the IP

adopted by the previous Board.

B. Should a new Board approve actions inconsistent with the PHA\'s

obligations under the previously adopted IP, HUD may proceed to

impose those sanctions which may be appropriate.

10-8 REMOTE MONITORING. HUD and the PHA shall monitor IP

implementation to ensure that annual and quarterly performance

targets are met in terms of quantity, timeliness and quality.

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7460.5

Chapter 10, paragraph 10-8 (continued)

A. IP Quarterly Performance Target Progress Report (IPQPTPR). A

PHA\'s progress subsequent to IP approval will be monitored

through the IPQPTPR. The IPQPTPR shall be prepared by the Field

Office on the basis of information provided by the PHA. The PHA

shall provide the resident representative with like information.

B. The IPQPTPR will be incorporated as soon as possible.

C. Letter to the Board Chairperson and local government.

Concurrent with the Field Office\'s preparation of the IPQPTPR,

it should be determined whether the PHA\'s performance should be

brought to the attention of the PHA Board Chairperson and its

Chief Executive of local government.

1\. At a minimum, this action should be taken at the time of

the Annual Performance Review.

2\. Copies of the letters shall be forwarded to the Regional

Administrator.

10-9 ANNUAL IP NEGOTIATIONS.

A. A new IP shall be negotiated if warranted in accordance with

paragraph 10-2, above, or

B. The PHA shall repeat the IP development process described in

paragraph 10-4, above, if the first-year performance target(s)

did not correct the deficient indicator(s).

1\. The content of the new IP shall rely heavily upon the PHA\'s

past performance.

2\. As a result of the PHA\'s past performance, the IP may need:

a\. A heavier infusion of local government support and

involvement;

b\. A revision of the projected rate at which annual and

quarterly performance targets are anticipated to

improve;

c\. A substantial revision of the strategies to be relied

upon; or

d\. A heavier reliance on sanctions.

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7460.5

Chapter 10, paragraph 10-9B (continued)

3\. It is at the point of negotiation of the new IP that HUD

shall normally make a final determination regarding the PHA\'s

compliance with the previous IP and whether it is appropriate

to proceed with the enforcement of sanctions.

10-10 ACC REQUIREMENT. An IP does not supersede, modify or amend a

PHA\'s ACC or in any way excuse a PHA from complying fully with

its ACC. In particular, the Department does not waive its rights

under Part II 501 and 502 of the ACC. A PHA\'s satisfaction

of, or failure to meet, the goals set forth in an IP does not

limit, modify or preclude the Department\'s right to take any

remedial action allowed by the ACC or any provision of the Act or

the regulations thereunder. Therefore, the Department has the

right to declare a substantial default or a substantial breach of

a PHA under the terms of the PHA\'s ACC at any time for sufficient

cause regardless of the terms of an IP.

10-11 RECOMMENDATION. A recommendation for PHA-wide accountability is

set forth in Chapter 3, paragraph 3-6, of this Handbook.

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