Occupancy I Working Group Draft Report

[Group Membership and Process]{.underline}:

The Occupancy I working group consisted of the following:

  ------------ -------------- -----------------------------------------------
  **Name**                    **Organization**

  **Sinae**    **Thompson**   **HUD -- Louisville**

  James        Armstrong      PHADA

  Pris         Banks          HUD -- Headquarters

  Beth         Bentley        McKinney Housing Authority

  Sylvia       Blanco         Austin Housing Authority

  Celia        Bobisud        HUD - FHEO- Headquarters

  Jacqueline   Burger         Community Service Society

  Marsha       Cayford        Quadel Consulting

  Beverly      Childs         Dallas Housing Authority

  Ben          Gilmore        DC Housing Authority

  Amy          Glassman       Ballard Spahr Andrews and Ingersoll

  Tory         Gunsolley      Newark Housing Authority

  Arlene       Halfon         HUD - FHEO- Headquarters

  Carolyn      Johnson        Homeless Persons Representation Project

  Becky        Kruse          HUD -Fort Worth, Texas

  Paula        Rouse          HUD -- Headquarters

  William      Russell        Sarasota Housing Authority

  Linda        Scott          HUD -- Headquarters

  David        Smythe         Los Angeles Housing Authority

  Bob          Sullivan       Chesapeake Redevelopment & Housing Authority

  Debra        Wells          Grapevine Housing Authority

  Dorinda      Wider          Legal Aid Society of Minneapolis

  Shawn        Williams       Richmond Housing Authority
  ------------ -------------- -----------------------------------------------

Sinae Thomas facilitated the working group meetings, and Bob Sullivan
recorded the outcomes of our discussions. At our first meeting on July
24, after spending most of our time beginning a detailed review of
elements of the Code of Federal Regulations (CFR) of interest to us, we
agreed to a systematic review of 24 CFR parts over the subsequent 5
weeks using the following schedule:

07/31 Part 5.6

08/07 Remainder of Part 5

08/14 Part 945

08/21 Part 960, A and B

08/28 Part 960, C through G

09/04 Part 966, A and B

We chose to conduct our discussions via weekly teleconferences that we
conducted on Tuesday afternoons from 3:00 p.m. to 5:00 p.m. through the
month of August.

Although 24 CFR Part 135 is posted on the Occupancy I Working Group web
site, we did not believe that Section 3 requirements are matters of
concern to occupancy and we did not review those sections of regulation.

We completed our review of the CFR parts of concern to us one week ahead
of our schedule, and so we elected to forgo a telephone conference on
September 4. In addition, due to the change in overall schedule and
agenda, we have chosen not to gather in Washington, DC on September 12
or 13. We plan to submit a position paper for the Occupancy I Working
Group on September 12 and to gather in Washington, DC for the concluding
stakeholder meeting of the Public Housing Administrative Reform
Initiative (PHARI) on September 27.

We have elected to present recommendations in this format rather than
the format proposed by the department. We believe that many of the
issues mentioned in HUD's template formed parts of our discussion. We
also do not believe that the credibility of recommendations depends upon
our use of the template, and we believe that the department bears
responsibility for developing the kind of details included in that
document. Each of us remains interested in assisting the department to
spell out details concerning reform recommendations, but we did not
believe that responsibility rests solely with working group members.

We did not endeavor to achieve consensus on each recommendation. We
tried to listen carefully to one another and honor differences of
opinion. We hope that this position paper reflects that process and the
diversity of viewpoints present in the working group. To the extent that
members believe it important to include specific points in the position
paper that diverge from the general viewpoint expressed by this paper,
each of us had the opportunity to include written comments that are
appended anonymously to the general position paper.

[Foundation for Recommendations]{.underline}

We understand that the department has undertaken this initiative in
response to a fundamental finding of the Harvard Cost Study that reform
of the public housing regulatory environment is required for effective
implementation of asset management. Working group members want to
emphasize that their participation in this endeavor reflects their
broader view of the value of administrative reform and deregulation of
public housing despite their skepticism concerning the department's
approach to asset management. Many of us participated despite our
misgivings and remain suspicious concerning agendas that may underlie
HUD's asset management implementation.

Many of the concerns we express concerning that regulatory environment
may also apply to the asset management regulatory environment. We
believe that the process HUD has initiated would prove useful in a
non-asset management environment, and even more important in structuring
asset management implementation standards in ways that best serve local
program sponsors and the department. In general, regulations and
guidance concerning asset management did not fall within the purview of
this working group, and we have not made explicit comments concerning
asset management implementation below. The report's silence on asset
management questions should only be construed in that light. Asset
management implementing guidance would benefit from the same critical,
collaborative process as we have used in the area of occupancy.

Our discussion began by taking comments of the Assistant Secretary for
Public and Indian Housing to heart. That is, we considered whether
elements of the regulations we reviewed were required by statute. If
they were not, we generally recommended that such rules be removed from
the CFR and included as non-binding guidance in less constraining HUD
documents such as handbooks, notices, letters and guidebooks. In our
discussion, we concluded that HUD's Public Housing Occupancy Guidebook
offered Housing Authorities very useful guidance for operating the
public housing program. Generally, the guidebook does an excellent job
in distinguishing between those things that represent requirements of
statutes or judicial determinations and those things that, although they
may represent best practices or excellent suggestions, don't rise to the
level of requirements with the force of federal law. Unfortunately,
several working group members reported that staffs of housing
authorities and advocacy organizations are much more familiar with the
existence and the content of this guidebook than HUD staff.

Working group members understand that a reorganization of regulations
along these lines will require a significant shift in the culture of HUD
and in the culture of local housing authorities. At HUD there must be a
deeper and broader understanding of the relationship between the
department and the organizations implementing its programs. The
department is responsible for delineating those things required in
program implementation by federal policy makers. The department can also
act as a collaborator with local program implementors by providing
guidance on effective program administration for local sponsors. HUD
will have to grow beyond its current inclination to make best program
practices requirements on the theory that this behavior promises to
optimize program implementation and program outcomes. Optimal
implementation, effectiveness and outcomes are a mixture of local
decisions and federal regulations, and HUD must take steps to assure
housing authorities the flexibility they need to meet local as well as
national policy priorities. Given that, for some years, housing
authorities have not received the amount of federal funds that HUD has
deemed necessary to operate decent, safe and sanitary housing, this
collaboration and flexibility are even more important.

With this in mind, we hope that HUD will reconsider past policies on
guidance. With increasing frequency, we have seen binding program
requirements buried in layers of publicly posted documents including
expired forms and appendices to supplements to expired handbooks
although HUD lacks authority to make such guidance binding. These
requirements may supersede or contradict published regulations and
confuse the operating environment for housing authorities where program
requirements are conflated with suggestions, guidance and best
practices. This multi-layered scheme of promulgating HUD requirements
can also lead to wasteful uses of federal resources, as when agencies
must accommodate Office of the Inspector General audits and prepare
responses to those audits. We believe that the OIG and Field Office
staffs are similarly confused about the standards with which housing
authorities [must]{.underline} comply and the suggestions with which
they [may]{.underline} comply.

HUD has imposed clear rulemaking standards for itself in 24 C.F.R. Part
10, and those rules generally require rulemaking with public notice and
comment whenever the department promulgates rules designed to implement
or interpret law or prescribe policy. Public notice and comment is
cumbersome but it can lead to better outcomes. HUD's recent proposed
rule on capital and operating fund financing transactions for the first
time begins the process of formally codifying guidance that has been
used informally since QHWRA passed in 1998. The department has also
demonstrated its understanding of the value of engaging stakeholders as
it develops rules and guidance, as it did while developing the Affiliate
Notice (PIH 2007-15) and while developing the Moving to Work Bridge
Agreement. The regulatory climate will improve if
[requirements]{.underline} are in regulations and [advice]{.underline}
and [best practices]{.underline} are maintained in coherent guidance
materials.

Many housing authorities may also face a significant change in their
views of their relationships with HUD. Responsibility for local
effective program implementation ends with the housing authority, and
that organization is responsible for managing the interface between
needs of their local communities for effective housing assistance and
the constraints of national housing policy. Often, these organizations
look to HUD and to HUD's regulatory regime for explicit, detailed
directions for implementing the public housing program. Deregulation and
administrative reform will tend to place them under additional local
accountability for program implementation and policy outcomes -- an
accountability they may not desire.

These changes in organizational culture will not be easy or swift, but
in our conversations the working group seemed satisfied to encourage
both of these changes. We also believed that the department bears some
responsibility for easing agencies through these changes by, for
example, preparing, publicizing and broadly disseminating guidance
documents that are as sensitive to these issues as the Public Housing
Occupancy Guidebook

[Recommendations]{.underline}

The following recommendations concern detailed provisions of 24 CFR Part
5, Part 945, Part 960 and Part 966. Within these regulatory parts,
recommendations are listed in their general order of importance to the
working group.

Part 5:

+-----------+--------------+---------------------+--------------------+
| Section   | Subject      | Recommendation      | Rationale          |
+-----------+--------------+---------------------+--------------------+
| 5.        | Income       | Income received     | The rule would     |
| 609(a)(2) | definition   | from a source       | provide HAs        |
|           |              | outside the family  | flexibility to     |
|           |              | during **a PHA      | determine income   |
|           |              | defined 12-month    | accurately without |
|           |              | period** reasonably | a prescriptive     |
|           |              | related to the      | national period.   |
|           |              | admission or annual |                    |
|           |              | reexamination       | The June 19, 2007  |
|           |              | effective date.     | proposed rule,     |
|           |              |                     | Refinement of      |
|           |              |                     | Income and Rent    |
|           |              |                     | Determination      |
|           |              |                     | Requirements in    |
|           |              |                     | Public and         |
|           |              |                     | Assisted Housing   |
|           |              |                     | Programs, states   |
|           |              |                     | the following:     |
|           |              |                     | actual annual      |
|           |              |                     | income will be     |
|           |              |                     | used in            |
|           |              |                     |                    |
|           |              |                     | determining a      |
|           |              |                     | family's           |
|           |              |                     | eligibility and    |
|           |              |                     | assistance level   |
|           |              |                     | in assisted        |
|           |              |                     | programs, and will |
|           |              |                     | be based on        |
|           |              |                     | amounts received   |
|           |              |                     | from a source      |
|           |              |                     | outside the family |
|           |              |                     | during             |
|           |              |                     |                    |
|           |              |                     | the 12-month       |
|           |              |                     | period prior to    |
|           |              |                     | admission          |
|           |              |                     |                    |
|           |              |                     | or prior to the    |
|           |              |                     | effective date of  |
|           |              |                     | the annual         |
|           |              |                     | reexamination. If, |
|           |              |                     | however, the       |
|           |              |                     | processing entity  |
|           |              |                     | believes more      |
|           |              |                     | current verified   |
|           |              |                     | income data        |
|           |              |                     | exists, the entity |
|           |              |                     |                    |
|           |              |                     | must use and       |
|           |              |                     | annualize this     |
|           |              |                     | income data to     |
|           |              |                     | determine annual   |
|           |              |                     | income.            |
|           |              |                     |                    |
|           |              |                     | The group's        |
|           |              |                     | recommendation is  |
|           |              |                     | more efficient and |
|           |              |                     | simple             |
|           |              |                     | administration     |
|           |              |                     | process than the   |
|           |              |                     | proposed rule.     |
+-----------+--------------+---------------------+--------------------+
| 5.        | Income from  | Include income      | The workgroup      |
| 609(a)(4) | assets       | received from       | proposes \$100,000 |
|           |              | assets under the    | based on impact on |
|           |              | family's control    | income and rent    |
|           |              | with aggregate      | (\$5,000 income or |
|           |              | value in excess of  | \$125 rent)        |
|           |              | \$100,000.          |                    |
+-----------+--------------+---------------------+--------------------+
| 5.632     | Utility      | Eliminate           | These              |
|           | re           | requirement for     | reimbursements     |
|           | imbursements | utility             | undercut program   |
|           |              | reimbursements and  | credibility and    |
|           |              | include provisions  | represents         |
|           |              | for reasonability   | significant        |
|           |              | here and in         | administrative     |
|           |              | establishing        | overhead.          |
|           |              | utility allowances  |                    |
|           |              | in Section 965,     |                    |
|           |              | Subpart E.          |                    |
+-----------+--------------+---------------------+--------------------+
| 5.110     | Waivers      | Publish quarterly   | HUD presently only |
|           |              | notices detailing   | publishes granted  |
|           |              | waivers granted and | waivers; by        |
|           |              | denied.             | publishing denied  |
|           |              |                     | waivers, housing   |
|           |              |                     | authorities will   |
|           |              |                     | be able to         |
|           |              |                     | determine if an    |
|           |              |                     | identical waiver   |
|           |              |                     | is not in their    |
|           |              |                     | best interest to   |
|           |              |                     | request. HUD's     |
|           |              |                     | waiver authority   |
|           |              |                     | is very broad and  |
|           |              |                     | should be so       |
|           |              |                     | construed. Where   |
|           |              |                     | appropriate,       |
|           |              |                     | waivers for a      |
|           |              |                     | specific project   |
|           |              |                     | should be          |
|           |              |                     | considered blanket |
|           |              |                     | for similar or     |
|           |              |                     | identical          |
|           |              |                     | projects.          |
+-----------+--------------+---------------------+--------------------+
| 5.216     | Disclosure   | Eliminate the rule. | The combination of |
|           | and          | The combination of  | 50058 reporting,   |
|           | verification | 50058 reporting,    | cross matching and |
|           | of SSNs and  | cross matching and  | use of EIV         |
|           | EINs         | use of EIV          | accomplishes the   |
|           |              | accomplishes the    | goal.              |
|           |              | goal.               |                    |
+-----------+--------------+---------------------+--------------------+
| 5.3 et.   | Pet rule for | Eliminate the rule  | The working group  |
| seq.      | the elderly  | as duplicative of   | did not understand |
|           | and disabled | ADA and protected   | the purpose of     |
|           |              | class requirements. | these standalone   |
|           |              |                     | and redundant      |
|           |              |                     | provisions.        |
+-----------+--------------+---------------------+--------------------+
| 5.703     | Physical     | Use one standard    | The working group  |
|           | condition    | for HUD's programs  | suggests HUD use   |
|           | standards    | and grant sponsors  | HQS or UPCS, but   |
|           |              | discretion to use   | not both.          |
|           |              | more stringent      |                    |
|           |              | state or local      |                    |
|           |              | standards.          |                    |
+-----------+--------------+---------------------+--------------------+
| 5.705     | Uniform      | Include details in  |                    |
|           | Property     | guidance.           |                    |
|           | Standard     |                     |                    |
+-----------+--------------+---------------------+--------------------+
| 5.603     | Definitions  | Eliminate:          | Responsible        |
| (a)(2)(b) |              | disability          | entity: this       |
|           |              | assistance          | section refers to  |
|           |              | expenses, imputed   | other section of   |
|           |              | welfare income,     | CFR 5 for          |
|           |              | utility allowance,  | responsible        |
|           |              | utility             | entity.            |
|           |              | reimbursement, net  | Consolidate        |
|           |              | family assets.      | responsible entity |
|           |              | Simplify definition | into one section   |
|           |              | of "responsible     | of the CFR.        |
|           |              | entity."            |                    |
+-----------+--------------+---------------------+--------------------+
| 5.        | Definitions  | Eliminate treatment | Treatment of lump  |
| 609(b)(4) |              | of lump sum         | sums is confusing  |
|           |              | payments or amounts | and fails to       |
|           |              | for the delayed     | produce much       |
|           |              | start of an         | rental income.     |
|           |              | annuity.            |                    |
+-----------+--------------+---------------------+--------------------+
| 5.        | Treatment of | Remove from         | The Public Housing |
| 609(b)(6) | welfare      | regulation and      | Occupancy          |
|           | payments     | include in          | Guidebook is a     |
|           |              | guidance.           | more concise than  |
|           |              |                     | the regulation.    |
+-----------+--------------+---------------------+--------------------+
| 5.        | Exclusions   | Eliminate all non   |                    |
| 609(c)(4) | from income  | statutory income    |                    |
|           |              | exclusions.         |                    |
+-----------+--------------+---------------------+--------------------+
| 5.609(d)  | A            | Remove from         |                    |
|           | nnualization | regulation and      |                    |
|           | of income    | include in          |                    |
|           |              | guidance.           |                    |
+-----------+--------------+---------------------+--------------------+
| 5.613     | Cooperation  | Remove from         |                    |
|           | agreements   | regulation and      |                    |
|           | with welfare | include in          |                    |
|           | departments  | guidance.           |                    |
+-----------+--------------+---------------------+--------------------+
| 5.615     | Impact of    | Remove from         |                    |
|           | welfare      | regulation and      |                    |
|           | sanctions    | include in          |                    |
|           |              | guidance.           |                    |
+-----------+--------------+---------------------+--------------------+
| 5.617     | Self         | Remove from         |                    |
|           | sufficiency  | regulation and      |                    |
|           | for people   | include in          |                    |
|           | with         | guidance.           |                    |
|           | disabilities |                     |                    |
+-----------+--------------+---------------------+--------------------+
| 5.214     | Definition   | Include language to | Simplify the       |
|           | of           | make clear that     | following terms    |
|           | participant  | "participant"       | into one term:     |
|           |              | [may]{.underline}   | family, tenant,    |
|           |              | in some contexts    | individual,        |
|           |              | mean an individual  | homeowner, and     |
|           |              | and not the entire  | cooperative        |
|           |              | family.             | member.            |
|           |              |                     |                    |
|           |              |                     | A suggested term   |
|           |              |                     | would be head of   |
|           |              |                     | household and      |
|           |              |                     | other family       |
|           |              |                     | members.           |
+-----------+--------------+---------------------+--------------------+
| 5.218     | Penalties    | Remove from         | Penalties and      |
|           | for failing  | regulations and     | processes for      |
|           | to disclose  | include in          | failures to        |
|           | and verify   | guidance.           | disclose           |
|           | income or    |                     | information should |
|           | SSNs.        | Penalties and       | be included in HA  |
|           |              | processes for       | plans and          |
|           |              | failures to         | procedures and be  |
|           |              | disclose            |                    |
|           |              | information should  | responsive to      |
|           |              | be included in HA   | local needs, not   |
|           |              | plans and           | prescribed in      |
|           |              | procedures.         | regulations        |
+-----------+--------------+---------------------+--------------------+
| 5.230     | Consent by   | Remove from         | A revised Form HUD |
|           | applicants   | regulation. Include | 9886 incorporating |
|           | and          | guidance that       | all information    |
|           | p            | failure to provide  | sources will       |
|           | articipants. | consent may halt    | significantly      |
|           |              | eligibility         | reduce unnecessary |
|           |              | determination,      | paperwork and      |
|           |              | admission and       | overhead.          |
|           |              | ongoing assistance. |                    |
|           |              |                     |                    |
|           |              | Revise Form HUD     |                    |
|           |              | 9886 (last revised  |                    |
|           |              | in July, 1994) to   |                    |
|           |              | include EIV and     |                    |
|           |              | other sources of    |                    |
|           |              | information.        |                    |
+-----------+--------------+---------------------+--------------------+
| 5.232     | Penalties    | Remove from         | Duplicative and    |
|           | for failure  | regulation and      | redundant. See     |
|           | to sign      | include procedures  | 5.218 above.       |
|           | consents     | for such failures   |                    |
|           |              | in guidance.        |                    |
+-----------+--------------+---------------------+--------------------+
| 5.234     | Information  | Changes to Form HUD | See 5.230 above    |
|           | from SWICAs, | 9886 would          |                    |
|           | other        | eliminate the       |                    |
|           | federal      | utility of this     |                    |
|           | agencies and | rule.               |                    |
|           | restrictions |                     |                    |
|           | on its use.  |                     |                    |
+-----------+--------------+---------------------+--------------------+
| 5.236     | Procedures   | Retain reference to |                    |
|           | for adverse  | 24 CFR              |                    |
|           | actions      | 3554(c)(2)(b) and   |                    |
|           | based upon   | make reference to   |                    |
|           | SWICA or     | HUD guidance for    |                    |
|           | other        | all other           |                    |
|           | federal      | procedural          |                    |
|           | agency       | suggestions and     |                    |
|           | information  | best practices.     |                    |
+-----------+--------------+---------------------+--------------------+

Part 945:

It is our understanding that Notices PIH 2005-2 and PIH 97-12 that
streamline procedures for designating elderly disabled and mixed
population housing and superseded these regulations. The state of
regulation and guidance here is emblematic of the problems caused by
publishing regulations that reach beyond statutory requirements and by
issuing notices rather than revising regulations to implement statutory
changes. The working group generally recommends that Part 945 be revised
to comport with [requirements]{.underline} of QHWRA and with the
department's current practice. Other matters currently in rules should
be placed in guidance documents.

Part 960:

+--------------+-----------+---------------------+--------------------+
| Section      | Subject   | Recommendation      | Rationale          |
+--------------+-----------+---------------------+--------------------+
| 960.101      | Appl      | Eliminate the       | Redundant          |
|              | icability | section. The title  |                    |
|              |           | of this section     |                    |
|              |           | makes clear that it |                    |
|              |           | covers Public       |                    |
|              |           | Housing             |                    |
+--------------+-----------+---------------------+--------------------+
| 960.102(b)   | De        | Revise the          | Clarify regulatory |
|              | finitions | definition of       | inconsistency      |
|              |           | residency           |                    |
|              |           | preferences to be   |                    |
|              |           | compatible with     |                    |
|              |           | 960.206 and Part    |                    |
|              |           | 982. For example,   |                    |
|              |           | *A preference for   |                    |
|              |           | admission of        |                    |
|              |           | persons who [live   |                    |
|              |           | or                  |                    |
|              |           | work]{.underline}*  |                    |
|              |           | *in a specified     |                    |
|              |           | geographical area.* |                    |
+--------------+-----------+---------------------+--------------------+
| 960.201(c)   | Reporting | Eliminate it.       | The section is     |
|              |           |                     | redundant and      |
|              |           |                     | fails to comply    |
|              |           |                     | with 42 USC        |
|              |           |                     | 1437(d)(m) "The    |
|              |           |                     | Secretary shall    |
|              |           |                     | not impose any     |
|              |           |                     | unnecessarily      |
|              |           |                     | duplicative or     |
|              |           |                     | burdensome         |
|              |           |                     | reporting          |
|              |           |                     |                    |
|              |           |                     | requirements on    |
|              |           |                     | tenants or public  |
|              |           |                     | housing agencies   |
|              |           |                     | assisted under     |
|              |           |                     | this Act."         |
+--------------+-----------+---------------------+--------------------+
| 960.20       | Selection | Remove the section  | Redundant          |
| 2(a)(2)(iii) |           | from rules as       |                    |
|              |           | redundant and       |                    |
|              |           | include in          |                    |
|              |           | guidance.           |                    |
+--------------+-----------+---------------------+--------------------+
| 960.2        | Selection | Change language to  | An applicant       |
| 02(a)(2)(iv) |           | "*including         | cannot be both a   |
|              |           | documentation and   | citizen and        |
|              |           | verification of     | eligible for       |
|              |           | citizenship         | immigration status |
|              |           | *                   |                    |
|              |           | *[or]{.underline}** |                    |
|              |           | eligible            |                    |
|              |           | immigration status  |                    |
|              |           | under 24 CFR Part   |                    |
|              |           | 5;"*                |                    |
+--------------+-----------+---------------------+--------------------+
| 960.         | Transfers | Eliminate the       | Examples should    |
| 202(a)(2)(v) |           | example. Include    | not be treated as  |
|              |           | this in guidance.   | regulatory         |
+--------------+-----------+---------------------+--------------------+
| 9            | Selection | Eliminate this      | Redundant section  |
| 60.202(c)(3) |           | section             | (see 960.103)      |
+--------------+-----------+---------------------+--------------------+
| 9            | Selection | Eliminate this      | Policy submissions |
| 60.202(c)(4) |           | redundant           | are covered in     |
|              |           | provision.          | Annual Plan        |
|              |           |                     | regulations.       |
+--------------+-----------+---------------------+--------------------+
| 960.203(b)   | Selection | Eliminate redundant |                    |
|              | standards | provision           |                    |
|              |           | concerning PHAS.    |                    |
+--------------+-----------+---------------------+--------------------+
| 960.206      | Local     | Eliminate and move  | Local preferences  |
|              | Pr        | information to      | are optional and   |
|              | eferences | guidance.           | must be in the     |
|              |           |                     | Annual Plan. They  |
|              |           |                     | are subject to     |
|              |           |                     | public comment and |
|              |           |                     | HUD review.        |
+--------------+-----------+---------------------+--------------------+
| 960.253(b)(1 | Choice of | Eliminate           |                    |
| and 2)       | Rent      | references to       |                    |
|              |           | market rents and    |                    |
|              |           | restore local       |                    |
|              |           | agency discretion   |                    |
|              |           | in setting flat     |                    |
|              |           | rents.              |                    |
+--------------+-----------+---------------------+--------------------+
| 961.253(d)   | Ceiling   | Eliminate the       |                    |
|              | Rents     | section as the two  |                    |
|              |           | year transition     |                    |
|              |           | period has expired. |                    |
+--------------+-----------+---------------------+--------------------+
| 9            | Family    | Modify the section  |                    |
| 60.259(c)(1) | In        | to conform with     |                    |
|              | formation | requirements of the |                    |
|              | and       | statute. For        |                    |
|              | Ver       | example, *The PHA   |                    |
|              | ification | must obtain and     |                    |
|              |           | document in the     |                    |
|              |           | family file         |                    |
|              |           | [reas               |                    |
|              |           | onable]{.underline} |                    |
|              |           | verification of     |                    |
|              |           | factors defined by  |                    |
|              |           | statute or by PIH   |                    |
|              |           | notice that affect  |                    |
|              |           | program             |                    |
|              |           | eligibility*.       |                    |
+--------------+-----------+---------------------+--------------------+
| 960          | Family    | Eliminate           |                    |
| .259(c)(1)(i | In        | provisions not      |                    |
| through iv)  | formation | required by         |                    |
|              | and       | statute.            |                    |
|              | Ver       |                     |                    |
|              | ification |                     |                    |
+--------------+-----------+---------------------+--------------------+
| 960.261      | Eviction  | Eliminate these     |                    |
|              | of over   | provisions, as      |                    |
|              | income    | statute appears to  |                    |
|              | families  | grant local         |                    |
|              |           | agencies discretion |                    |
|              |           | in this regard.     |                    |
|              |           | Provide guidance on |                    |
|              |           | these evictions     |                    |
|              |           | through other       |                    |
|              |           | vehicles.           |                    |
+--------------+-----------+---------------------+--------------------+
| 960.403      | Appl      | Eliminate the       |                    |
|              | icability | section that        |                    |
|              |           | references a non    |                    |
|              |           | existent section    |                    |
|              |           | 960.405 of the      |                    |
|              |           | rule.               |                    |
+--------------+-----------+---------------------+--------------------+
| 960.407      | Selection | Eliminate this      | The provision is   |
|              | pr        | section that        | redundant, unclear |
|              | eferences | repeats 945.201 and | and confusing.     |
|              | in mixed  | 203.                |                    |
|              | dev       |                     |                    |
|              | elopments |                     |                    |
+--------------+-----------+---------------------+--------------------+
| 960.503      | Housing   | Expand              | This should be     |
|              | over      | applicability to    | available to all   |
|              | income    | all HAs with        | HAs, even those    |
|              | h         | reasonable notice   | with more than 250 |
|              | ouseholds |                     | units, so long as  |
|              |           |                     | they have          |
|              |           |                     | satisfied the      |
|              |           |                     | regulatory         |
|              |           |                     | conditions for     |
|              |           |                     | admitting          |
|              |           |                     | over-income        |
|              |           |                     | families.          |
+--------------+-----------+---------------------+--------------------+
| 960.600      | De        | Eliminate           | The requirement    |
|              | termining | regulatory          | should be          |
|              | c         | references to       | eliminated (see    |
|              | ompliance | verification or     | below). In the     |
|              | with      | third party         | meantime, agencies |
|              | community | verification.       | should be free to  |
|              | service   | Permit agencies to  | determine          |
|              | req       | comply with the     | compliance as they |
|              | uirements | statute in a manner | deem appropriate,  |
|              |           | that they           | with guidance on   |
|              |           | determine.          | that matter not    |
|              |           |                     | contained in       |
|              |           |                     | regulation.        |
+--------------+-----------+---------------------+--------------------+
| 960.705      | Ownership | Eliminate the       |                    |
|              | of        | provision that      |                    |
|              | a         | duplicates          |                    |
|              | ssistance | requirements for    |                    |
|              | animals   | reasonable          |                    |
|              |           | accommodations for  |                    |
|              |           | people with         |                    |
|              |           | disabilities.       |                    |
+--------------+-----------+---------------------+--------------------+

Part 966:

+--------------+-----------+---------------------+--------------------+
| Section      | Subject   | Recommendation      | Rationale          |
+--------------+-----------+---------------------+--------------------+
| 966.5(b)     | Posting   | Modify requirement  | The regulation     |
|              | policies  | to posting in       | calls for posting  |
|              |           | rental offices and  | in three           |
|              |           | in other reasonable | conspicuous places |
|              |           | community spaces.   | in the building.   |
|              |           |                     | In some building   |
|              |           |                     | types, it is       |
|              |           |                     | unreasonable to    |
|              |           |                     | post in three      |
|              |           |                     | conspicuous        |
|              |           |                     | places.            |
+--------------+-----------+---------------------+--------------------+
| 966.7        | Acco      | Eliminate the       | Fair Housing and   |
|              | mmodation | redundant           | ADA statutes       |
|              | for       | regulation. Provide | provide sufficient |
|              | persons   | guidance for        | protections.       |
|              | with      | compliance in other |                    |
|              | dis       | vehicles.           |                    |
|              | abilities |                     |                    |
+--------------+-----------+---------------------+--------------------+
| 966.4        | Lease     | Eliminate all       |                    |
|              | terms     | provisions not      |                    |
|              |           | required by         |                    |
|              |           | statute. Statute    |                    |
|              |           | appears to require  |                    |
|              |           | (a)(2)(i and ii),   |                    |
|              |           | (e)(1), (l)(2)(i)   |                    |
|              |           | without the         |                    |
|              |           | subsequent details, |                    |
|              |           | except for          |                    |
|              |           | (l)(2)(i)(3)(B and  |                    |
|              |           | C), (l)(3)(i),      |                    |
|              |           | [only]{.underline}  |                    |
|              |           | the second sentence |                    |
|              |           | of (l)(3)(ii),      |                    |
|              |           | (l)(5)(i)(A) and    |                    |
|              |           | the first sentence  |                    |
|              |           | of (B), and         |                    |
|              |           | (l)(5)(ii). Issue   |                    |
|              |           | the remainder of    |                    |
|              |           | the current         |                    |
|              |           | regulation as       |                    |
|              |           | guidance.           |                    |
+--------------+-----------+---------------------+--------------------+
| 966 Subpart  | Grievance | The regulation has  |                    |
| B            | procedure | taken 350 words in  |                    |
|              |           | statute and created |                    |
|              |           | almost 2,700 words  |                    |
|              |           | of regulation.      |                    |
|              |           |                     |                    |
|              |           | Requirements of     |                    |
|              |           | statute appear to   |                    |
|              |           | be met by           |                    |
|              |           | 966.53(c),          |                    |
|              |           | 966.55(b)(1) and    |                    |
|              |           | 966.55(g).          |                    |
|              |           | Eliminate all other |                    |
|              |           | regulatory language |                    |
|              |           | and reissue the     |                    |
|              |           | material as         |                    |
|              |           | guidance.           |                    |
+--------------+-----------+---------------------+--------------------+
| 966.55(e)    | Escrow    | Eliminate escrow    | Escrow deposits    |
|              | deposits  | language and        | appear to conflict |
|              |           | require payment of  | with many states'  |
|              |           | rent "with          | landlord tenant    |
|              |           | reservation,"       | law, causing       |
|              |           | including hardship  | confusion. The     |
|              |           | provisions and      | "with reservation" |
|              |           | reconciliation of   | language is        |
|              |           | payments after a    | clearer and        |
|              |           | hearing decision.   | compatible with    |
|              |           |                     | most if not all    |
|              |           |                     | state regulations  |
|              |           |                     | for the private    |
|              |           |                     | rental market.     |
+--------------+-----------+---------------------+--------------------+
| 966.55(f)    | S         | Replace with        |                    |
|              | cheduling | simpler language.   |                    |
|              | a hearing | For example, ": *A  |                    |
|              |           | written             |                    |
|              |           | notification        |                    |
|              |           | specifying the      |                    |
|              |           | time, place, and    |                    |
|              |           | the procedures      |                    |
|              |           | governing the       |                    |
|              |           | hearing shall be    |                    |
|              |           | delivered to the    |                    |
|              |           | complainant and the |                    |
|              |           | appropriate PHA     |                    |
|              |           | official(s)         |                    |
|              |           | according the PHA's |                    |
|              |           | policy."*           |                    |
+--------------+-----------+---------------------+--------------------+
| 966.55(g)(i) | Expedited | The statute refers  |                    |
|              | grievance | to "any activity."  |                    |
|              | procedure | The rule refers to  |                    |
|              |           | "any criminal       |                    |
|              |           | activity." Conform  |                    |
|              |           | the rule to the     |                    |
|              |           | statute.            |                    |
+--------------+-----------+---------------------+--------------------+
| 966.56©      | P         | Eliminate the rule  |                    |
|              | rocedures | providing that a    |                    |
|              |           | hearing officer may |                    |
|              |           | render a decision   |                    |
|              |           | without a hearing.  |                    |
+--------------+-----------+---------------------+--------------------+
| 966.56(h)    | Accom     | Eliminate this      | Fair Housing and   |
|              | modations | redundant           | ADA statutes       |
|              | for       | provision.          | provide sufficient |
|              | people    |                     | regulation.        |
|              | with      |                     |                    |
|              | dis       |                     |                    |
|              | abilities |                     |                    |
+--------------+-----------+---------------------+--------------------+

[Recommendations for Statutory Reform]{.underline}

  ----------------------- ----------------------- -----------------------
  Section                 Subject                 Recommendation

  960.255                 Self Sufficiency        The administrative
                                                  burden far outweighs
                                                  the participation of
                                                  and benefits to public
                                                  housing tenants.
                                                  Incentives are best
                                                  left to local PHA
                                                  discretion.

  960.600                 Community Service       Eliminate this
                                                  requirement. It
                                                  unfairly burdens public
                                                  housing residents and
                                                  has been rendered moot
                                                  by welfare reform work
                                                  requirements. Remove
                                                  this from statute and
                                                  to guidance subject to
                                                  local housing authority
                                                  discretion.
  ----------------------- ----------------------- -----------------------

[The Administrative Reform Initiative and Administrative
Waivers]{.underline}

Workgroup members have discussed the relationship of this work with
possible requests for administrative waivers. We believe that virtually
all of the deregulatory recommendations we have raised are potential
requests for waivers of requirements under 42 USC 3535(q) and 24 CFR
5.110. We advocate that as a part of this process HUD reconsider its
waiver procedures and policies. Changes to the waiver process can
significantly reduce administrative burden for HUD and for HAs. As a
first step, HUD, and its Office of General Counsel should reconsider the
department's policy on blanket waivers. Although HUD has maintained that
it may only grant waivers on a case by case basis, the regulatory
authority exists for blanket waivers (see 24 CFR 903.4(d)), In addition,
we encourage HUD to develop new ways to grant waivers, such as through
the Annual Plan review and approval process. However, we want to stress
that waivers only represent short term remedies. Ultimately, we hope
that redundant, unnecessary regulations will be removed from the CFR
entirely, reducing the need for waivers, blanket or case by case. We
encourage the department to consider seriously these recommendations and
the alternative processes involved in the Administrative Reform
Initiative and the regulatory waiver process.

[Conclusion and Next Steps]{.underline}

Although working group members have expressed skepticism from time to
time regarding the eventual outcome of this initiative, many of us
remain convinced that the effort is critical to the health of the public
housing program in the medium term. We encourage HUD to continue this
effort to engage as broad a set of stakeholders as feasible in ongoing
assessments of program requirements. An ongoing effort will also provide
opportunities for stakeholders to advise the department on regulatory
initiatives before as well as after they become rules. Two recent
examples of the department's extensive collaboration with stakeholders
produced final outcomes that were significantly better than initial
draft documents. HUD developed revisions to its guidance concerning
agents' uses of affiliated organizations and instrumentalities in
administering federal housing programs, and it developed a Moving to
Work Bridge Agreement in consultation with current MTW participating
agencies. Although stakeholders may still object to some content in
final documents, the end products were each improvements over initial
versions. That model of extensive consultation with various segments of
HUD's stakeholder communities should continue to inform HUD's efforts
both to deregulate the public housing policy environment and to draft
regulations in response to statutory initiatives