7460.5

CHAPTER 5. COMPUTING ASSESSMENT SCORE AND

PHA DESIGNATION

5-1 OBJECTIVE. The objective of this Chapter is to provide an
explanation

of how the total weighted assessment score is computed and PHA

designation made.

5-2 PHA ASSESSMENT.

A. PHA assessment will take place by computing a score derived from

an examination of performance relevant to:

1\. The required indicators \# 1 - #7 (refer to Chapter 6 of this

Handbook); and (6)(j)(1)(A),(B),(C),(D),(E),(F) and (G) of

the Act and 24 CFR 901.10(b)(1),(2),(3),(4),(5),(6) and

\(7\)

2\. Additional indicators #8 - #12 (refer to Chapter 6 of this

Handbook). (6)(j)(1)(H) of the Act and 24 CFR

901.10(b)(8),(9),(10),(11) and (12)

3\. Three indicators are divided into components to provide a

fairer and more accurate measure of different aspects of PHA

performance on those indicators. The indicators with

components are:

a\. Indicator #2, modernization; 24 CFR 901.10(b)(2)

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

and systems; and 24 CFR 901.10(b)(7)

c\. Indicator #12, development. 24 CFR 901.10(b)(12)

B. PHMAP is administered flexibly to ensure that PHAs are not

penalized as a result of circumstances beyond their control.

(6)(j)(1)(I)(i) of the Act

1\. A PHA may request a modification or exclusion of an indicator

or component. A PHA shall submit supporting documentation to

justify its request for a modification or exclusion. This

documentation shall provide a PHA\'s reason(s) and the

supporting data for requesting the modification or exclusion.

HUD will then make its determination using the standard of

whether the modification or exclusion request is reasonable

under all of the circumstances considered. Refer to

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7560.5

Chapter 5, paragraph 5-2B1 (continued)

Chapter 7 of this Handbook for examples of modifications and

exclusions. 24 CFR 901.110(a) and (b)

2\. The PHMAP assessment takes into account the differences in

the difficulty of managing individual developments that

result from their physical condition and/or their

neighborhood environment (refer to paragraph 5-8B2, below).

(6)(j)(1)(I)(ii) of the Act

a\. The Regional Administrator shall review all cases in

which a PHA\'s score falls within 10 points below the

point value required for high-performing, troubled and

mod-troubled designations and take into account a PHA\'s

management difficulties that result from the physical

condition and/or the neighborhood environment of a

PHA\'s developments rather than from poor management

practices. 24 CFR 901.125(b)

b\. If the Regional Administrator determines that a PHA\'s

management difficulties result from the physical

condition and/or neighborhood environment of a PHA\'s

developments rather than from poor management

practices, the Regional Administrator shall withhold

troubled or mod-troubled designation or award high

performer designation. The withholding of troubled or

mod-troubled designation and the awarding of high

performer designation does not change a PHA\'s total

weighted PHMAP score; they change a PHA\'s designation.

24 CFR 901.125(b)

3\. A PHA may point out, at the time it submits its

certification, any circumstances where the PHA believes that

its management difficulties result from the physical

condition and/or neighborhood environment of its

developments.

4\. A Regional Administrator may review a PHA\'s score and

modification and exclusion requests prior to the

transmission of the notification letter to the PHA. 24 CFR

901.125(a)

C. This assessment is intended to provide an objective measure for

key management aspects of PHA operations, and place a PHA\'s

overall management performance within a three-tiered system: high

performer; standard; or troubled.

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7460.5

Chapter 5, paragraph 5-2 (continued)

D. The computation of a separate score based upon factors solely

related to a PHA\'s ability to carry out the modernization

program, e.g., indicator #2, modernization, will be used to

designate mod-troubled PHAs (refer to Chapter 6 of this

Handbook). (6)(j)(1)(I)(iii) of the Act

5-3 SCORING INDICATORS AND COMPONENTS.

A. Scoring of individual indicators and individual components.

Indicators will be scored individually. Components within an

indicator will be scored individually, and then will be used to

determine a single score for the indicator. A total weighted

score will be determined for each PHA based on its indicator

scores. 24 CFR § 900.105(c)

B. Indicators.

1\. Within the seven indicators explicitly listed in the NAHA

and the additional five indicators (those not explicitly

listed in the NAHA but deemed appropriate by HUD), scoring

will be based upon an examination of performance relevant to

the indicator. (6)(j)(1)(A), (B),(C),(D),(E),(F),(G) and

\(I\) of the Act and 24 CFR 901.10

(b)(1),(2),(3),(4),(5),(6),(7),(8),(9),(10),(11) and (12)

2\. A PHA being scored in all 12 indicators could receive a

maximum total of 220 points. PHAs with indicators not

examined because of exclusion requests would have a smaller

maximum total of points. The percentage score of a PHA is

the result of dividing its actual number of points by its

potential maximum (for the indicators that are examined) and

multiplying by 100. For example, if a PHA were scored on

all 12 indicators and received 176 points, its percentage

score would be 80 (176 divided by 220, with the ratio

multiplied by 100). Or, if a PHA scored 176 points out of a

potential maximum total of 200 points, its percentage score

would be 88 (176 divided by 200, with the ratio multiplied

by 100).

C. Components.

1\. Indicator #2, modernization. 24 CFR 901.10(b)(2)

a\. The modernization indicator consists of five

components, each initially scored from zero to ten

points and then weighted as discussed in paragraph 5-4,

below.

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7560.5

Chapter 5, paragraph 5-3C1 (continued)

b\. The five components, after being weighted, have a

potential maximum score of 80 points. In order to

calibrate the overall modernization indicator to the

zero to ten point scale used for this indicator before

weighting, the total component score of the

modernization indicator is divided by eight, and the

result is rounded to one decimal place. For example,

if a PHA scored 60 points as the weighted sum of its

components on modernization, then its PHMAP indicator

score for modernization would be 7.5 (the result of

dividing 60 by eight and rounding to one decimal

place). In computing the overall PHMAP score, the

modernization indicator score of 7.5 in this example

would be multiplied by the overall indicator weight of

two. 24 CFR 901.105(c)

c\. For determinations of mod-troubled status for the

purposes of the CGP, any score on the PHMAP

modernization indicator of less than 6.0 (or fewer than

48 points on the component-weighted preliminary score)

will designate a PHA as mod-troubled. 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. During the initial year of PHMAP

implementation, HUD will give Field Offices sufficient

time to assess PHA modernization performance, on a risk

analysis basis, and compile accurate data so that

designations of mod-troubled can be made for the second

year of the CGP funding.

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

systems. 24 CFR 901.10(b)(7)

a\. The PHMAP score for the indicator of annual inspection

and condition of units and systems is computed by

scoring its four components from zero to ten points,

and weighting these four components as discussed in

paragraph 5-4, below.

b\. The four components, after being weighted, have a

potential maximum score of 80 points. In order to

calibrate the overall inspection indicator to the zero

and ten point scale used for this indicator before

weighting, the total component score of the inspection

indicator is divided by eight, and the result is

rounded to one decimal place. For example, if a PHA

scored 70 points as the weighted sum of its components

on the inspection indicator,

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7460.5

Chapter 5, paragraph 5-3C2b (continued)

then its PHMAP indicator score for inspection would be

8.8 (the result of dividing 70 by eight and rounding to

one decimal place.) In computing the overall PHMAP

score, the annual inspection and condition of units and

systems indicator score of 8.8 would be multiplied by

the overall indicator weight of three. 24 CFR

901.105(c)

3\. Indicator #12, development. 24 CFR 901.10(12)

a\. The PHMAP score for the development indicator is

computed by scoring its four components from zero to

ten points, then weighting these four component scores

as discussed in paragraph 5-4, below.

b\. The four components, after being weighted, have a

potential maximum score of 70 points. In order to

calibrate the overall development indicator to the zero

and ten point scale used for this indicator before

weighting, the total component score of the development

indicator is divided by seven, and the result is

rounded to one decimal place. For example, if a PHA

scored 40 points as the weighted sum of its components

on the development indicator, then its PHMAP indicator

score for development would be 5.7 (the result of

dividing 40 by seven and rounding to one decimal

place.) 24 CFR 901.105(c)

D. Grades within indicators and components (before weighting) have

the following point values: 24 CFR 901.105(a)

Scoring for Grades Within Indicators and Components

Grade Score

A 10.0 points

B 8.5 points

c 7.0 points

D 5.0 points

E 3.0 points

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7560.5

Chapter 5, paragraph 5-1D (continued)

Grade Score

F 0.0 points

1\. Grade \"C\" equals a percentage of 70%, which is a true

percentage for grade \"C\". Grade \"C\" reflects acceptable

performance by a PHA in the respective indicators.

2\. Indicators #1 (vacancies), #3 (rents uncollected), #4

(energy consumption), #5 (unit turnaround), #6 (outstanding

work orders) and #11 (resident initiatives) and components

#3 (contract administration) and #4 (quality of the physical

work) in indicator #2 (modernization) and components #2

(annual inspection of units), #3 (correction of unit

deficiencies) and #4 (inspection and repair of systems) in

indicator #7 (annual inspection and condition of units and

systems) will be graded or scored according to a six-level

(\"A\", \"B\", \"C\", \"D\", \"E\" or \"F\") grading system (refer to

Chapter 6 of this Handbook). The purpose of the six-level

grading system is to provide for finer differences in

indicators that are based on numerical data (for example,

the number of vacant units). 24 CFR 901.10(b)(1),(2)(iii)

and (iv),(3),(4),(5),(6),(7)(ii),(iii) and (iv), and (11)

3\. Indicators #8 (tenants accounts receivable), #9 (operating

reserve) and #10 (routine operating expenses), and all four

of the components in indicator #12 (development) will be

graded or scored according to a three-level (\"A\", \"C\" or

\"F\") grading system (refer to Chapter 6 of this Handbook).

The purpose of the three-level grading system is to provide

a wider differentiation in indicators/components that may or

may not be based on numerical data (for example, a PHA has

no significant monitoring findings regarding a PHA\'s

contract administration; a PHA has corrected or is in the

process of correcting those monitoring findings related 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)(8),

(9),(10) and (12)(i),(ii),(iii) and (iv)

4\. Components #1 (unexpended funds over three years old), #2

(timeliness of fund obligation) and #5 (budget controls) in

indicator #2 (modernization) and component #1 (system to

track inspection and repair of units and systems) in

indicator #7 (annual inspection and condition of units and

systems) will be graded or scored according to a

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7460.5

Chapter 5, paragraph 5-3D4 (continued)

two-level (\"A\" or \"F\") grading system (refer to Chapter 6 of

this Handbook). The purpose of the two-level grading system

is to provide a more strict differentiation in indicators/

components that may or may not be based on numerical data,

and which presents a pass/fail situation (for example, a PHA

has a system to track the inspection and repair of units and

systems, or the PHA does not have a system to track the

inspection and repair of units and systems). 24 CFR

901.10(b)(1)(b)(2)(i), (ii) and (v) and 901.10

(b)(7)(i)

5-4 ADDITIONAL WEIGHT.

A. Where indicators or components are designated as having

additional weight (x2 or x3), the points in each grade shall be

multiplied times the additional weight. 24 CFR 901.105(b)

1\. Indicators #1 (vacancies) #3 (rents uncollected) #7 (annual

inspection and condition of units and systems) and #11

(resident initiatives) have been designated as having an

additional weight of three for the points awarded for each

of these indicators. Indicators receive a higher weight

primarily if they reflect a management aspect closely

related to the key areas of the condition of PHA stock and

delivery of services to residents. For example, the 10

points awarded for achieving the \"A\" level of each of these

indicators will be multiplied by three, giving a total of 30

points for the respective indicator, since these indicators

are determined to be very important for assessment purposes.

24 CFR 901.10(b)(1),(3),(7) and (11)

2\. Indicators #2, modernization, and #5, unit turnaround, are

multiplied by two. The higher the multiplier is, the more

weight or importance an indicator carries in the PHMAP

assessment. (Refer to Chapter 6 of this Handbook) 24 CFR

901.10(b)(2) and (5)

3\. Component #4, quality of the physical work of indicator #2,

modernization; and component #2, timeliness of development

of indicator #12, development have a weight of two. 24 CFR

901.10 (b)(2)(iv) and (12)(ii)

4\. Component #1, unexpended funds over three years old, of

indicator #2, modernization; component #3, correction of

unit deficiencies, and component #4, inspection and repair

of systems, of indicator #7, annual inspection and condition

of units and systems; and component

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7560.5

Chapter 5, paragraph 5-4A4 (continued)

#3, quality of the physical work, of indicator #12,

development, have a weight of three. 24 CFR

901.10(b)(2)(i),(7)(iii) and (iv), and (12)(iii)

5\. The SMIRPH PHMAP module includes a scoring column for all

indicators, taking into consideration the additional weights

for respective indicators, as well as the determination of

total weighted score and total weighted modernization score,

which are an automatically calculated.

B. The data in the following chart shows the indicator number,

weight and total points after weighting for each indicator and

components within indicators, with the component points shown in

brackets.

Total

Number Indicator/Component Weight Points

1 Vacancy number and percentage x3 30

2 Modernization x2 20

2a Unexpended funds over three x2 20

years old

2b Timeliness of fund obligation x1 10

2c Contract administration x1 10

2d Quality of the physical work x3 30

2e Budget controls x1 10

3 Rents uncollected x3 30

4 Energy consumption x1 10

5 Unit turnaround x2 20

6 Outstanding work orders x1 10

7 Annual inspection and condition

of units and systems x3 30

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7460.5

Chapter 5, paragraph 5-4B (continued)

Total

Number Indicator/Component Weight Points

7a System to track inspection and

repair of units and systems x1 10

7b Annual inspection of units x1 10

7c Correction of unit deficiencies x3 30

7d Inspection and repair of systems x3 30

8 Tenants accounts receivable x1 10

9 Operating reserves x1 10

10 Routine operating expenses x1 10

11 Resident initiatives x3 30

12 Development x1 10

12a Quality of contract administration x1 10

12b Timeliness of development/MROP x2 20

12c Quality of the physical work x3 30

12d Budget controls x1 10

5-5 PHA DESIGNATION.

A. High performer designation.

1\. A PHA shall be designated high performer and represents the

first tier if:

a\. It achieves a total weighted score of no less than 90%;

or 24 CFR 901.115(a)

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7560.5

Chapter 5, paragraph 5-5A1l (continued)

b\. The Regional Administrator may award high performer

designation as discussed in paragraph 5-2B2, above,

after taking into consideration a PHA\'s management

capabilities and the extent to which a PHA\'s

performance difficulties are attributable to the

physical condition and/or neighborhood environment of

its developments. If the Regional Administrator

determines that a PHA\'s difficulties result from

physical condition and/or neighborhood environment

rather than from poor management practices, the

Regional Administrator shall award high performer

designation, except in accordance with paragraph 5-8D1

through D4, below. The awarding of high performer

designation does not change a PHA\'s total weighted

PHMAP score; it changes a PHA\'s designation; and 24

CFR 901.125(b) and (c)

c\. There are no overriding, serious noncompliance issues

in accordance with paragraph 5-8D5, below.

2\. High-performing PHAs will be afforded incentives that

include substantial relief from reporting and other

requirements, in accordance with Chapter 11 of this

Handbook. 24 CFR 901.115(a)

3\. A PHA may appeal denial of high performer status in

accordance with Chapter 8 of this Handbook. 24 CFR

901.115(g) and 901.130(a)

B. Standard Designation.

1\. A PHA shall be designated standard and represents the second

tier if it achieves a total weighted score of less than 90%

but not less than 60%. A standard PHA is subject to review

and monitoring requirements on a risk analysis basis. 24

CFR 901.115(b)

2\. A PHA may appeal its management assessment rating in

accordance with Chapter 8 of this Handbook. 24 CFR

901.130(a)

C. Troubled Designation.

1\. A PHA shall be designated troubled and represents the third

tier if it achieves a total weighted score of less than 60%

on all of the applicable indicators. 24 CFR 901.115(c)

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7460.5

Chapter 5, paragraph 5-5C (continued)

2\. The Regional Administrator may withhold troubled designation

as discussed in paragraph 5-2B2, above, after taking into

consideration a PHA\'s management capabilities and the extent

to which a PHA\'s performance difficulties are attributable

to the physical condition and/or neighborhood environment of

its developments. If the Regional Administrator determines

that a PHA\'s difficulties result from physical condition

and/or neighborhood environment rather than from poor

management practices, the Regional Administrator shall

withhold troubled designation. The withholding of troubled

designation does not change a PHA\'s total weighted PHMAP

score; it changes a PHA\'s designation. 24 CFR

901.125(b)

3\. A PHA may appeal troubled designation in accordance with

Chapter 8 of this Handbook. (6)(j)(2)(A)(iii) of the Act

and 24 CFR 901.130 (a)

4\. A PHA designated as troubled shall be required to execute an

MOA with HUD. (6)(j)(2)(B) of the Act and 24 CFR

901.140(a)

D. Mod-Troubled.

1\. A PHA shall be designated as mod-troubled if it achieves a

total weighted modernization score of less than 60% on

indicator #2, modernization. 24 CFR 901.115(d)

2\. The Regional Administrator may withhold mod-troubled

designation as discussed in paragraph 5-2B2, above, after

taking into consideration a PHA\'s management capabilities

and the extent to which a PHA\'s performance difficulties are

attributable to the physical condition and/or neighborhood

environment of its developments. If the Regional

Administrator determines that a PHA\'s difficulties result

from physical condition and/or neighborhood environment

rather than from poor management practices, the Regional

Administrator shall withhold mod-troubled designation. The

withholding of mod-troubled designation does not change a

PHA\'s total weighted PHMAP score; it changes a PHA\'s

designation. 24 CFR 901.125(b)

3\. A PHA may appeal mod-troubled designation in accordance with

Chapter 8 of this Handbook. (6)(j)(2)(A)(iii) of the Act

and 24 CFR 901.130(a)

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7560.5

Chapter 5, paragraph 5-5D (continued)

4\. A PHA designated as mod-troubled shall be required to

execute an MOA with HUD. (6)(j)(2)(B) of the Act and 24

CFR 901.140(a)

5-6 PHA RESPONSIBILITY.

A. PHAs shall submit their certification, Form HUD-50072, Public

Housing Management Assessment Program (PHMAP) Certification,

Appendix 4, for the applicable indicators within 90 calendar days

after PHA FYB in accordance with the time frames in Chapter 4,

paragraph 4-2D, of this Handbook.

B. In the initial year of PHMAP implementation and for the purposes

of the CGP, PHAs shall submit their certification, Form

HUD-50072, Public Housing Management Assessment Program (PHMAP)

Certification, Appendix 4, in accordance with the time frames in

Chapter 4, paragraphs 4-2C1, C2 and C3, of this Handbook.

5-7 FIELD OFFICE RESPONSIBILITY.

A. The Field Office shall assess each PHA within 90 calendar days

after the due date for PHA certification submission (180 calendar

days after PHA FYB). In the initial year of PHMAP implementation

and for the purposes of the CGP, the Field Office shall assess

each PHA in accordance with the time frames in Chapter 4,

paragraphs 4-2C1, C2 and C3 of this Handbook. 24 CFR

901.120(a)

1\. In cases where a PHA submits its certification prior to 90

calendar days after the beginning of its fiscal year, the

Field Office shall have 180 calendar days after the

beginning of a PHA\'s fiscal year to assess the PHA. In such

cases, while 901.120(a) allows the Field Office 180

calendar days after PHA FYB to assess each PHA, the Field

Office should attempt to assess a PHA within 90 calendar

days after receipt of the PHA\'s certification submission.

2\. In cases where a PHA submits its certification after 90

calendar days after the beginning of its fiscal year, the

Field Office shall have 180 calendar days after the

beginning of a PHA\'s fiscal year to assess the PHA.

3\. If extenuating circumstances exist which delays either a

PHA\'s submission of its certification or a Field Office\'s

ability to perform the

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7460.5

Chapter 5, paragraph 5-7A3 (continued)

assessment in a timely manner, a Field Office may request an

extension of Handbook requirements from the Regional

Administrator.

B. The Field Office shall make determinations for high-performing,

standard, troubled and mod-troubled PHAs in accordance with a

PHA\'s total weighted PHMAP score. In the initial year of PHMAP

implementation and for the purposes of the CGP, the Field Office

shall make determinations for high-performing, standard, troubled

and mod-troubled PHAs in accordance with the time frames in

Chapter 4, paragraphs 4-2C1, C2 and C3 of this Handbook. 24 CFR

901.120(a) and (a)(1)

C. The Field Office shall make determinations on exclusion and

modification requests. In the initial year of PHMAP

implementation and for the purposes of the CGP, the Field Office

shall make determinations on exclusion and modification requests

in accordance with the time frames in Chapter 4, paragraph 4-3B,

of this Handbook. In subsequent years, the Field Office shall

make determinations on exclusion and modification requests in

accordance with the time frames in Chapter 4, paragraph 4-3C, of

this Handbook. 24 CFR 901.120(a)(2)

D. The Field Office shall make recommendations on appeals to the

Regional Administrator. Field Office shall make recommendations

on appeals in accordance with Chapter 8, paragraph 8-3B and 3C

and the time frames in paragraph 8-3D, of this Handbook. 24 CFR

901.120(d)

E. The Field Office shall make determinations of intentional false

certification. Where sufficient evidence exists of intentional

false certification, appropriate sanctions shall be imposed

(refer to Chapter 4, paragraph 4-2B4, of this Handbook). For

example, a PHA may certify to unit turnaround without actually

computing the actual data for that indicator. When the Field

Office performed an on-site confirmatory review, the PHA could

not produce worksheets which could substantiate the certification

for unit turnaround; data did not exist at the PHA which could be

used to calculate unit turnaround; and at least one PHA staff

person stated or demonstrated that the PHA has not and did not

keep records to calculate unit turnaround. 24 CFR 901.120(e)

F. An on-site confirmatory review may be conducted of a PHA by the

Field Office in accordance with Chapter 2, paragraph 2-2I, of

this Handbook. Confirmatory reviews shall be conducted on a risk

analysis basis in accordance with paragraph 4-3E of this

Handbook. 24 CFR 901.120(c)

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7560.5

Chapter 5, paragraph 5-7 (continued)

G. PHA notification.

1\. Each Field Office shall notify, within 90 calendar days

after the due date for PHA certification submission, each

PHA of the PHA\'s grade in each indicator, its management

assessment total weighted score and status; any

determination concerning exclusion and modification

requests; request the PHA to negotiate and execute an MOA or

IP, if applicable; and any deadline date by which appeals

must be received in accordance with the time frames in

Chapter 4, paragraphs 4-3C, of this Handbook. 24 CFR

901.120(b)

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

purposes of the CGP, the Field Office shall notify each PHA

of the PHA\'s grade in each indicator, its management

assessment total weighted score and status, any

determination concerning exclusion and modification

requests, request the PHA to submit an MOA or IP, if

applicable, and any deadline date by which appeals must be

received in accordance with the time frames in Chapter 4,

paragraph 4-3B, of this Handbook. 24 CFR 901.120(b)

3\. PHA notification should also include, at a minimum, offers

of pertinent technical assistance in problem areas,

suggestions for means of improving problem areas, and areas

of relief and incentives as a result of high performer

designation. 24 CFR 901.120(b)(1)

4\. If a PHA appeals, a second notification letter will be sent

to the PHA and appointing official(s) of a PHA\'s Board of

Commissioners after the appeals process has been concluded

(refer to the time frames in Chapter 8, paragraphs 8-3A,

8-4B and 8-5C, of this Handbook).

a\. The first notification letter will be sent to the PHA,

whereas the second notification letter will also be

sent to the appointing official(s). Out of fairness to

the PHA, the appointing official(s) will not be

notified of a PHA\'s score and status since the PHA has

the opportunity to avail itself of the appeal process.

b\. The local community, residents and the public should

know whether or not a PHA is performing in a capacity

to preserve and protect its public housing

developments. To ensure that those elected to

represent the public are informed of the performance of

the PHAs within their purview, HUD will notify the

appointing

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7460.5

Chapter 5, paragraph 5-7G4b (continued)

official(s) of a PHA\'s Board of Commissioners of a

PHA\'s score once it has been finally determined.

5\. If a PHA does not appeal, a second notification letter will

be sent to the PHA and appointing official(s) within 105

calendar days after the due date for PHA certification

submission when the 15 day period for the PHA to appeal has

expired.

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

purposes of the CGP, if a PHA does not appeal, a second

notification letter will be sent to the PHA and appointing

official(s) when the 15 day period for the PHA to appeal has

expired.

7\. Each Field Office will transmit notification letters

pertaining to all PHAs within its jurisdiction, to the

Governor and members of Congress, once a year, at the

beginning of the FFY.

H. The Field Office shall maintain PHMAP files, including

certifications, the records of exclusion and modification

requests, appeals, PHA scores and the designations of status

based on physical condition and neighborhood environment, as open

records, available for public inspection for a minimum of three

years in accordance with any procedures established by the Field

Office to minimize disruption of normal office operations. Field

Offices are encouraged to maintain PHMAP files for five years for

the purpose of analyzing PHA trends. 24 CFR 901.120(f) and

901.155

5-8 REGIONAL OFFICE RESPONSIBILITY.

A. The Regional Administrator may review a PHA\'s score and

modification and exclusion requests prior to the transmission of

the notification letter to the PHA in accordance with the time

frames in Chapter 4, paragraph 4-3C, of this Handbook, except as

specified in paragraph 5-8B, below. In the initial year of PHMAP

implementation and for the purposes of the CGP, these reviews, if

undertaken, will be made in accordance with the time frames in

Chapter 4, paragraphs 4-2C1, C2 and C3, of this Handbook. 24

CFR 901.125(a)

B. A Regional Administrator should determine which PHA\'s score and

modification and exclusion requests will be reviewed by the

Regional Office based on past experience with a Field Office\'s

workload, the number of troubled PHAs in a Field Office\'s

jurisdiction and the number of borderline

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7460.5

Chapter 5, paragraph 5-8B (continued)

troubled and mod-troubled PHA\'s in a Field Office\'s jurisdiction.

A Regional Administrator may determine to review all PHA scores

and modification and exclusion requests within the jurisdiction

of the Regional Office, or any part of therein.

1\. In cases where a Regional Administrator chooses to exercise

such discretion, the Regional Office shall thoroughly review

the calculation of a PHA\'s total weighted score, individual

indicator scores, and the determination of modification and

exclusion requests.

2\. The purpose of such Regional Office review shall be to ensure

uniformity in the application of the PHMAP assessment.

C. The Regional Administrator shall review all cases in which a

PHA\'s score falls within ten points below the point value

required for designations of high-performing, troubled and

mod-troubled. 24 CFR 901.125(b)

1\. The Regional Administrator shall take into consideration the

extent to which a PHA\'s performance difficulties are

attributable to the physical condition and neighborhood

environment of its developments. 24 CFR 901.125(b)

2\. Management difficulties attributable to the physical

condition for one or more of a PHA\'s developments may

include:

a\. Age of the development(s);

b\. Size of the development(s); and

c\. Modernization needs, i.e., the development has not

undergone comprehensive modernization within the past 20

years or the development has undergone comprehensive

modernization within the past 20 years, but neighborhood

environment has contributed to additional modernization

needs.

3\. Management difficulties attributable to neighborhood

environment for one or more of a PHA\'s developments may

include:

a\. Crime;

b\. Drug activity;

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7460.5

Chapter 5, paragraph 5-8C3 (continued)

c\. Lack of commercial, employment and social services;

d\. Age and/or poor condition of the infrastructure;

e\. Amount and type of financial resources and services

provided by the locality;

f\. Population density; and

g\. Demographics.

4\. If the Regional Administrator determines that a PHA\'s

management difficulties result from physical condition

and/or neighborhood environment rather than from poor

management practices, the Regional Administrator shall

withhold troubled or mod-troubled designation or award high

performer designation, except as specified in paragraph

5-8C, below. The withholding of troubled or mod-troubled

designation and the awarding of high performer designation

does not change a PHA\'s total weighted PHMAP score; they

change a PHA\'s designation. 24 CFR 901.125(b)

D. In exceptional circumstances, even though a PHA has satisfied all

of the indicators for high performer designation, the Regional

Administrator may perform any review as necessary to address the

particular deficiencies and may deny or rescind high performer

status in the case of a PHA that: 24 CFR 901.115(e) and

901.125(c)

1\. Is operating under a special agreement with HUD, such as a

conciliation agreement under Title VI of the Civil Rights

Act of 1964; or 24 CFR 901-115(e)(1)

2\. Is involved in litigation that bears directly upon the

management of a PHA; or 24 CFR 901.115(e)(2)

3\. Is operating under a court order; or 24 CFR 901.115(e)

\(3\)

4\. Demonstrates substantial evidence of fraud or misconduct

resulting from such sources as an Office of Inspector

General audit or investigation, or an investigation by any

appropriate legal authority; or 24 CFR 901.115(e)(4)

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7560.5

Chapter 5, paragraph 5-8D (continued)

5\. Demonstrates substantial noncompliance in one or more

program areas. Substantial noncompliance would cast doubt

on the PHA\'s capacity to preserve and protect its public

housing developments and operate them consistent with

Federal law and regulations. Areas of substantial

noncompliance include, but are not limited to: 24 CFR

901.115(e)(5) and 901.125(c)

a\. Noncompliance with statutes (e.g., Fair Housing and

Equal Opportunity statutes); 24 CFR 901.125(c)

b\. Noncompliance with regulations (e.g., 24 CFR Part 85);

or 24 CFR 901.125(c)

c\. Noncompliance with the ACC (e.g., the ACC, Part II,

201, Use of Projects). 24 CFR 901.125(c)

6\. If high performer designation is rescinded, the Regional

Administrator will send written notification to the PHA,

within 15 calendar days of the decision, with a specific

explanation of the reasons. An information copy shall be

forwarded to the Assistant Secretary for Public and Indian

Housing. 24 CFR 901.125(d)

E. The Regional Administrator shall decide the initial appeals of

PHAs. In the initial year of PHMAP implementation and for the

purposes of the CGP, the Regional Administrator shall decide the

initial appeals of PHAs in accordance with the time frames in

Chapter 8, paragraph 8-4B, of this Handbook. 24 CFR

901.125(e)

F. The Regional Administrator shall rule on petitions to remove

troubled or mod-troubled designations. In the initial year of

PHMAP implementation and for the purposes of the CGP, the

Regional Administrator shall rule on petitions to remove troubled

or mod-troubled designations in accordance with the time frames

in Chapter 8, paragraph 8-4B, of this Handbook. 24 CFR

901.125(e)

G. The Regional Administrator may review Field Office determinations

of intentional false certifications. In cases where the Regional

Administrator reviews a Field Office\'s determination of

intentional false certification, such reviews shall be performed

to verify that sufficient documentation exists to support such a

determination. 24 CFR 901.125(e)

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7460.5

Chapter 5, paragraph 5-8 (continued)

H. If the Regional Administrator reverses or rejects a determination

or recommendation made by the Field Office, the reasons for the

reversal or rejection shall be included in the notification to

the PHA and shall be a part of the PHMAP public record. 24 CFR

901.125(f)

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