40024 Federal Register / Vol. 65, No. 125 / Wednesday, June 28, 2000 / Notices

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

[Docket No. FR–4509–N–14]

Public Housing Assessment System

Management Operations Scoring

Process for Fiscal Years Ending

September 30, 1999, and December 31,

1999, PHAs

AGENCY: Office of the Director, Real

Estate Assessment Center, HUD.

ACTION: Notice.

SUMMARY: This notice provides

additional information to public

housing agencies and members of the

public, regarding HUD’s process for

issuing Management Operations scores

to PHAs under the Public Housing

Assessment System (PHAS).

This notice is an update of the

Management Operations Indicator

scoring notice that was published on

June 23, 1999, and takes into

consideration public comment received

on the June 23, 1999 notice, and

provides the basis for scoring public

housing agencies on their management

operations as provided in the PHAS

Transition Notice published on October

21, 1999. The Notice also reflects the

differences in scoring between advisory

scores and actual Management

Operations scores. This notice is

applicable only to PHAs with fiscal

years ending September 30, 1999, or

December 31, 1999. For PHAs with

fiscal years ending on or after March 31,

2000, a separate Management Scoring

Notice is published elsewhere in this

Federal Register. The changes made to

this notice are discussed in the

SUPPLEMENTARY INFORMATION section of

this notice.

FOR FURTHER INFORMATION CONTACT: For

further information contact Wanda

Funk, Real Estate Assessment Center,

Department of Housing and Urban

Development, 1280 Maryland Avenue,

SW, Suite 800, Washington, DC 20024;

telephone Technical Assistance Center

at 1–888–245–4860 (this is a toll free

number). Persons with hearing or

speech impairments may access that

number via TTY by calling the Federal

Information Relay Service at (800) 877–

8339. Additional information is

available from the REAC Internet Site,

http://www.hud.gov/reac.

SUPPLEMENTARY INFORMATION:

1. Purpose of This Notice

The purpose of this notice is to

provide additional information about

the scoring process for PHAS Indicator

#3, Management Operations. The

purpose of the Management Operations

assessment is to measure certain key

management operations and

responsibilities of a PHA for the

purpose of assessing the PHA’s

management operations capabilities.

The information provided in this

notice was originally published on May

13, 1999 (64 FR 26232), and republished

on June 23, 1999 (64 FR 33708). HUD

solicited public comment on both the

May 13, 1999, and June 23, 1999,

notices. This Management Operations

Scoring Process notice, published in

this edition of the Federal Register, has

been revised, to reflect the public

comments received on the previous

notices and to provide the basis for

scoring PHAs on their management

operations as provided in the PHAS

Transition Notice published on October

21, 1999 (64 FR 56676). This

Management Operations Scoring Notice

is applicable only to PHAs with fiscal

years ending September 30, 1999, or

December 31, 1999. For PHAs with

fiscal years ending on or after March 31,

2000, a separate Management

Operations Scoring Notice is published

elsewhere in this Federal Register.

Additionally, this notice differs from

the June 23, 1999, notice to reflect the

difference in scoring between advisory

scores and actual Management

Operations scores. Eliminated from the

notice published on June 23, 1999, are

the last row and footnote in Table 2,

Possible Grades; and the third paragraph

under Sub-indicator Score. These two

items only applied to PHAS advisory

scores for fiscal year end September 30,

1998, December 31, 1998, March 30,

1999, and June 30, 1999, PHAs.

2. Changes From PHMAP To PHAS

The PHAS assessment of a PHA’s

management operations utilizes six of

the eight PHMAP indicators:

• Vacancy rate and vacant unit turnaround

time;

• Capital Fund;

• Rents uncollected;

• Work orders;

• PHA annual inspection of units and

systems; and

• Security/economic self-sufficiency.

The adjustment for physical condition

and/or neighborhood environment will

be made under PHAS Indicator #1,

Physical Condition. The same

definitions and exemptions that apply

to the PHMAP also apply to the PHAS,

except as noted in 24 CFR 902, subpart

D. The PHMAP indicator for financial

management is assessed under PHAS

Indicator #2, Financial Condition; and

PHMAP indicator #7 for resident

services is assessed under PHAS

Indicator #4, Resident Service and

Satisfaction.

There are certain differences between

the PHMAP score and the PHAS score

calculated for a PHA’s management

operations. Under the PHAS, PHA

requested modifications and exclusions

no longer apply. Under the PHAS, a

PHA will not be assessed under a subindicator and/or component if the PHA

does not receive funding for that

program, i.e., Capital Fund. PHAs will

certify to sub-indicator #2, Capital

Fund, and all PHAs will certify to and

be scored on sub-indicator #6, Security/

economic self-sufficiency, under PHAS

Indicator #3.

3. Submission of Management

Operations Certification

Under the PHAS, a PHA is required

to electronically submit certification on

its performance under each of the

management operations sub-indicators.

If circumstances preclude a PHA from

reporting electronically, HUD will

consider granting short-term approval to

allow a PHA to submit its Management

Operations certification manually. A

PHA that seeks approval to submit its

certification manually must ensure that

the REAC receives a request for manual

submission in writing 60 calendar days

prior to the submission due date of its

Management Operations certification.

The written request must include the

reasons why the PHA cannot submit its

certification electronically. The REAC

will respond to such a request and will

manually forward its determination in

writing to the PHA.

4. Elements of Scoring

The Management Operations

Indicator score provides an assessment

of each PHA’s management

effectiveness. The computation of the

score under this PHAS Indicator utilizes

data that was submitted for PHMAP and

requires three main calculations, which

are:

• Scores are first calculated for all of the

components that have been submitted by

the PHA;

• Based upon the component scores, a score

is then calculated for each sub-indicator;

and

• From the six sub-indicator scores, an

indicator score is then calculated.

The three calculations are performed

on the basis of the following:

• The point value of the six sub-indicators

and/or components, which are listed in

Table 1; and

• The point equivalent to the grades assigned

under PHMAP for each sub-indicator and/

or component.

Federal Register / Vol. 65, No. 125 / Wednesday, June 28, 2000 / Notices 40025

TABLE 1.—MANAGEMENT OPERATIONS SUB-INDICATOR AND COMPONENT POINTS

Sub-indicator Sub-indicator points Component Component

points

Vacancy Rate/Unit Turnaround Time (PHMAP Indicator

#1).

8.0 Vacancy Rate ...................................................................

Unit Turnaround Time ......................................................

4.0

4.0

Capital Fund (PHMAP Indicator #2) ................................. 6.0 Unexpended Funds ..........................................................

Timeliness of Fund Obligation .........................................

1.0

1.5

Contract Administration .................................................... 1.0

Quality of Physical Work .................................................. 2.0

Budget Controls ............................................................... 0.5

Rents Uncollected (PHMAP Indicator #3) ........................ 4.0

Work Orders (PHMAP Indicator #4) ................................. 4.0 Emergency Work Orders .................................................

Non-Emergency Work Orders ..........................................

2.0

2.0

Inspections of Units and Systems (PHMAP Indicator #5) 4.0 Inspection of Units ...........................................................

Inspections of Systems ....................................................

2.0

2.0

Security/Economic Self-Sufficiency (PHMAP Indicator

#8).

4.0 Tracking/Reporting Crime-Related Problems ..................

Screening of Applicants ...................................................

1.0

1.0

Lease Enforcement .......................................................... 1.0

Grant Program Goals ....................................................... 1.0

If the PHAS Capital Fund subindicator (PHMAP Indicator #2) is not

applicable, then the 6 points for that

sub-indicator are redistributed among

the other five sub-indicators so that the

total points add up to the 30 points for

Management Operations under the

PHAS. This is accomplished by

multiplying 30/24 or 1.25 by each of the

remaining sub-indicator scores, which is

125 percent of the original points. The

new points for the sub-indicator

‘‘Vacancy Rate and Unit Turnaround

Time’’ would be 10.0, and the new

points for the other four sub-indicators

would be 5.0.

The PHMAP grades for each subindicator/component are assigned

values to indicate the percentage of the

sub-indicator/component points that

will be awarded in the calculations. The

assigned values for the PHMAP grades,

which are listed in Table 2, are the same

for each sub-indicator/component that

is being assessed. For example, a PHA

with an E for the component

‘‘Inspection of Units and Systems’’

would receive 30% of the component

points of 2, for a score of 0.6 for the

component.

TABLE 2.—POSSIBLE GRADES

Grades Value

A ................................................... 1.00

B ................................................... 0.85

TABLE 2.—POSSIBLE GRADES—

Continued

Grades Value

C ................................................... 0.70

D ................................................... 0.50

E ................................................... 0.30

F .................................................... 0.00

Calculations under the PHAS

Management Operations Indicator are

performed as follows:

Component Score. The component

score equals its points multiplied by the

value of the grade for the PHA. For

example, a PHA with an E for the

component ‘‘Inspection of Units and

Systems’’ would receive 30% of the

component points of 2, for a score of 0.6

for the component.

Sub-indicator Score. The subindicator score is the sum of the

component scores with the points of

non-assessed components being

proportionately redistributed across

components that have been assessed.

Indicator Score. The Indicator score

equals the sum of the sub-indicator

scores with the points of non-assessed

sub-indicators being proportionately

redistributed across sub-indicators that

have been assessed. The Management

Operations Indicator score equals the

sum of the five other redistributed subindicator scores multiplied by 30/24 or

1.25, which is 125 percent of the

original score.

If the Capital Fund sub-indicator

(PHMAP indicator #2) is not applicable

(the PHA does not have a Capital Fund

Program), then the 6 points for that subindicator are redistributed among the

other five sub-indicators in the

calculation of the Management

Operations Indicator score so that the

total points add up to the 30 points for

Management Operations under the

PHAS.

5. Examples of Score Computations

An Example of Computing a SubIndicator Score With a Non-Assessed

Component. The following provides an

example for the calculation of a Capital

Fund sub-indicator score and its

component scores, when the Quality of

Physical Work component has not been

assessed. For this example, Table 3

provides the necessary information,

which is:

• The weight of the Capital Fund subindicator components from Table 1;

• The sample grade for each component;

• The value of each grade from Table 2;

• The calculations for the component score;

and

• The component scores.

The component score is calculated in

this table by multiplying the points by

the values in Table 3. These scores are

included in the PHAS Report. Note that

for reporting purposes, all scores are

rounded to one decimal place.

TABLE 3.—EXAMPLE ASSESSMENT OF THE CAPITAL FUND SUB-INDICATOR

Component Points Grade Value Calculations Score

#1 Unexpended Funds ............................................................ 1.0 A 1.0 (1.0) × (1.0) = 1.0 1.0

#2 Timeliness of Fund Obligation ............................................ 1.5 A 1.0 (1.5) × (1.0) = 1.5 1.5

#3 Contract Administration ...................................................... 1.0 C 0.7 (1.0) × (0.7) = 0.7 0.7

#4 Quality of Physical Work .................................................... 2.0 NA NA NA NA

#5 Budget Controls .................................................................. 0.5 F 0.0 (0.5) × (0.0) = 0.0 0.0

40026 Federal Register / Vol. 65, No. 125 / Wednesday, June 28, 2000 / Notices

In this example, the 4th component

has not been assessed for sub-indicator

#2, Capital Fund. Consequently, the

points of the non-assessed component

need to be redistributed proportionately

across assessed components in order to

calculate the Capital Fund sub-indicator

score. This redistribution is

accomplished by multiplying the sum of

the component scores by 6 (the points

for the sub-indicator) and dividing this

result by the sum of the points of the

components that have been assessed (4).

This calculation for the Capital Fund

sub-indicator score is provided below:

Capital Fund Score = (1.0 +1.5 + 0.7 + 0.0) (6.0) ×

10 15 10 05 ... . +++

An Example of Computing the

Indicator Score for a PHA Without a

Capital Fund Program and That Has

Less Than 250 Units. For this example,

the PHA’s sub-indicator scores are:

• The Vacancy Rate/Unit Turnaround

Time score equals 6.8;

• The Capital Fund sub-indicator was not

assessed;

• The Rents Uncollected score equals 4.0;

• The Work Orders score equals 2.8;

• The Inspection of Units/Systems score

equals 3.7; and

• The Security/Economic Self-Sufficiency

score equals 4.0.

The Capital Fund sub-indicator has

not been assessed. Consequently, the

points for the non-assessed subindicator need to be redistributed

proportionately across assessed subindicators in order to calculate the

Management Operations Indicator score.

This redistribution is accomplished by

multiplying the sum of the sub-indicator

scores by 30 (the points for the

Management Operations Indicator) and

dividing this result by the sum of the

points of the sub-indicators that have

been assessed (24). The calculation for

the Management Operations Indicator is

provided below:

Management Operations Indicator Score = (6.8 + 4.0 + 2.8 + 3.7 + 4.0) (30.0) ×

++++ = 80 40 40 40 40

26 6 ..... .

Dated: June 20, 2000.

Donald J. LaVoy,

Director Real Estate Assessment Center.

[FR Doc. 00–16155 Filed 6–27–00; 8:45 am]

BILLING CODE 4210–01–P