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HUD/PIH RIN: 2577-AD17 Publication ID: Fall 2024 
Title: Public Housing Evaluation and Oversight: Changes to the Public Housing Assessment System (PHAS) (FR-6356) 
Abstract:

This rule would revise HUD’s Public Housing Assessment System (PHAS) regulations governing the assessments, evaluation, and oversight of public housing agencies (PHAs) administering public housing and Section 8 voucher programs. Under the rule, performance would focus on key indicators such as occupancy, financial, and physical assessments. To the greatest extent possible, scoring indicators would be based on measurable program outcomes based on data that is already available to HUD as opposed to being process oriented. The rule will also seek to align the PHAS scoring indicators with Section 8 Management Assessment Program (SEMAP) and reduce or eliminate the reliance on PHA self-certifications as a verification method of PHA performance. This rule is being developed with input received from PHAs, industry groups, and advocates during a series of seven in-person and virtual listening sessions HUD held in the fall of 2022, as well as a listening session with industry groups held in early 2023.

 
Agency: Department of Housing and Urban Development(HUD)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 24 CFR 902   
Legal Authority: 42 U.S.C. 1437d(i)    42 U.S.C. 1437F(o)(8)    42 U.S.C. 3535(d)    42 CFR 1437(f)    42 U.S.C. 1437 et seq.    42 U.S.C. 1437 a(a)   
Legal Deadline:  None

Statement of Need:

The current PHAS regulations at 24 CFR part 902 were last updated in February 2011. They lay out four key indicators that are used to determine a score or designation for each PHA. Currently, HUD cannot require a PHA to take corrective action until a full PHAS assessment is complete. However, since PHAS does not assess each component simultaneously, HUD often receives information about poor performance long before it determines a full performance designation. In the rule, HUD aims to provide greater flexibility so that HUD can require corrective action more expeditiously before the PHA receives a full performance designation.

Additionally, the rule would restructure the PHAS performance indicators and revise the weight of such indicators. For example, the rule would limit the Capital Fund program indicator to examining the time it takes a PHA to obligate funds in relation to statutory deadlines and remove it from the overall PHAS score, instead designating a PHA with a failing evaluation under that indicator as a Capital Fund troubled performer.

The rule would result in better measurements of PHA performance with the goal of preserving public housing for the future.

Summary of the Legal Basis:

These regulatory revisions would be implemented consistent with Section (6)(j) of the U.S. Housing Act of 1937.

 

Alternatives:

In developing this rule, HUD sought to ensure its approach would not create additional information collection burdens on PHAs and metrics could be collected reliably and objectively. Another alternative to promulgating this rule would be to maintain HUD’s existing regulations governing PHAS. However, if HUD does not amend its existing regulations it would fail to modernize the assessment system, further align the system with SEMAP, and fail to be responsive to stakeholder concerns about what factors are important to measure and how best to measure such factors.

Anticipated Costs and Benefits:

Executive Order 12866, as amended, requires the agency to provide its best estimate of the combined aggregate costs and benefits of all regulations included in the agency's Regulatory Plan that will be pursued in fiscal year 2025. HUD expects that neither the total economic costs nor the total efficiency gains will be significant for this rulemaking. HUD already uses a scoring system for the public housing program, and the rule does not require any additional recordkeeping. HUD does expect that this rule will result in positive tenant outcomes such as reduced vacancy rates and higher quality services because PHAs will have greater opportunity to resolve operational difficulties before they compound, due to HUD intervention and corrective actions.

Risks:

This rule may impose minimal additional costs on PHAs in terms of learning and adjusting to the new assessment system. The rule may also impose minimal additional costs on HUD in the form of technical assistance; however, HUD already provides technical assistance to PHAs for a variety of purposes. Another risk is that due to the changes in the rule more PHAs could be subject to penalties or could be required to establish corrective action plans; however, these could be necessary to ensure greater compliance in HUD programs for the benefit of public housing residents as well as PHAs.

Timetable:
Action Date FR Cite
NPRM  11/04/2024  89 FR 87518   
NPRM Comment Period End  01/03/2025 
Final Action  06/00/2025 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: Yes 
RIN Data Printed in the FR: No 
Agency Contact:
Todd Thomas
Director, Office of Public Housing Programs
Department of Housing and Urban Development
Office of Public and Indian Housing
451 Seventh Street SW,
Washington, DC 20410
Phone:202 402-4542