Public Housing Assessment System (PHAS); Transition to the PHAS

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 902

[Docket No. FR-4497-N-02]

RIN 2577-AC08

Public Housing Assessment System (PHAS); Transition to the PHAS

AGENCY: Office of the Assistant Secretary for Public and Indian

Housing, and Office of the Director of the Real Estate Assessment

Center, HUD.

ACTION: Notice of delayed implementation.

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SUMMARY: This document advises of transition assistance that will be

provided in connection with implementation of the Public Housing

Assessment System (PHAS) for public housing agencies (PHAs) with fiscal

years ending on September 30, 1999, and December 31, 1999. HUD also

gives notice that it will issue PHAS Advisory Scores and Management

Assessment Scores as provided in the SUPPLEMENTARY INFORMATION of this

document.

FOR FURTHER INFORMATION CONTACT: For further information contact the

Real Estate Assessment Center (REAC), Attention: Wanda Funk, U.S.

Department of Housing and Urban Development, 1280 Maryland Avenue, SW,

Suite 800, Washington DC, 20024; telephone Customer Service Center at

(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. Persons with hearing or speech impairments may access

that number via TTY by calling the Federal Information Relay Service at

(800) 877-8339.

SUPPLEMENTARY INFORMATION: HUD's rule implementing the PHAS was

published on September 1, 1998 (64 FR 46596), and became effective

October 1, 1998. Although the PHAS regulation became effective October

1, 1998, the September 1, 1998 final rule provided PHAs with a delayed

implementation date for the PHAS. The final rule took into

consideration the time that was needed by PHAs to make the transition

to the new assessment system. As provided by the September 1, 1998

final rule, the PHAS was scheduled to be implemented for PHAs with

fiscal years ending on and after September 30, 1999.

On June 22, 1999 (64 FR 33348), HUD published a proposed rule to

amend certain provisions of the PHAS regulation, codified at 24 CFR

part 902. The Quality Housing and Work Responsibility Act of 1998

(Pub.L. 105-276, approved October 21, 1998) (commonly referred to as

the ``Public Housing Reform Act'') made certain changes to the

statutory basis for the PHAS, which needed to be reflected in the

regulation. Additionally, during the scheduled PHAS transition year

(September 1998 to September 1999), HUD gained experience and valuable

information from its physical inspection of PHA properties, testing the

PHAS systems, and talking to PHAs about the PHAS. As a result of the

experience and information gained, HUD determined that certain changes

should be made to the PHAS regulation. These changes were described in

the preamble to the June 22, 1999, proposed rule.

HUD's public comment period on the June 22, 1999, proposed rule

closed August 23, 1999. Many of the PHAs who commented on this rule

have fiscal years ending September 30, 1999, and December 31, 1999,

making them the first PHAs to be issued PHAS scores under the September

1, 1998 rule. These PHAs requested additional time to prepare for

compliance with the PHAS requirements, and HUD will grant them

additional time as provided in this notice.

PHAs With Fiscal Years Ending 9/30/99 and 12/31/99

For PHAs with fiscal years ending September 30, 1999, or December

31, 1999, HUD will not issue PHAS scores for the fiscal years ending on

these dates. For these PHAs, in lieu of a PHAS score, HUD will issue

the following:

PHAS Advisory Score. A PHA with a fiscal year ending September 30,

1999, or December 31, 1999, will be issued a PHAS advisory score. The

PHA must comply with the requirements of 24 CFR part 902 (the PHAS

regulation) so that HUD may issue the advisory score.

1. Physical inspections will continue to be performed by HUD, as

part of the PHAS advisory score process, using HUD's uniform physical

inspection protocols. In the event, however, that changes are made to

HUD's Dictionary of Deficiencies, PHAS advisory scores will be revised

and reissued to reflect these changes.

2. For these PHAs to successfully make the transition to the PHAS,

they must comply with the requirements of PHAS, and be assessed by HUD

under the PHAS, if only on an advisory basis.

Management Assessment Score. A PHA with a fiscal year ending

September 30, 1999, or December 31, 1999, will receive an assessment

score on the basis of HUD's assessment of the PHA's management

operations in accordance with 24 CFR part 902, subpart D of the PHAS

regulation (PHAS Indicator #3, Management Operations).

PHAs With Fiscal Years Ending After 12/31/99

PHAs with fiscal years ending after December 31, 1999 will be

issued PHAS scores.

HUD is completing work on its final rule to follow the June 22,

1999 proposed rule. HUD will issue a consensus-based final rule that

will reflect the provisions of this Notice, address the public

comments, and describe all changes to the PHAS regulation made as a

result of the public comment and review process.

Dated: October 15, 1999.

Deborah Vincent,

General Deputy Assistant Secretary for Public and Indian Housing.

Donald J. LaVoy,

Acting Director, Real Estate Assessment Center.

[FR Doc. 99-27457 Filed 10-20-99; 8:45 am]

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