[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR902.69]

[Page 275-276]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 902--PUBLIC HOUSING ASSESSMENT SYSTEM--Table of Contents
 
                         Subpart F--PHAS Scoring
 
Sec. 902.69  PHA right of petition and appeal.

    (a) Appeal of troubled designation and petition for removal troubled 
designation. A PHA may:
    (1) Appeal its troubled designation (including designation as 
troubled with respect to its performance under the Capital Fund 
subindicator as provided in Sec. 902.67(c)(2)); and
    (2) Petition for removal of troubled designation.
    (b) Appeal of PHAS score. If a PHA believes that an objectively 
verifiable and material error (or errors) exists in any of the scores 
for its PHAS Indicators, which, if corrected, will result in a 
significant change in the PHA's PHAS score and its designation (i.e., as 
troubled, standard, or high performer), the PHA may appeal its PHAS 
score in accordance with the procedures of paragraphs (c), (d) and (e) 
of this section. A significant change in a PHAS score is a change that 
would cause the PHA's PHAS score to increase, resulting in a higher PHAS 
designation for the PHA (i.e., from troubled performer to standard 
performer, or from standard performer to high performer).
    (c) Appeal and petition procedures. (1) To appeal troubled 
designation or a PHAS score, a PHA must submit a request in writing to 
the Director of the Real Estate Assessment Center that must be received 
by REAC no later than 30 days following the issuance of the overall PHAS 
score to the PHA. To petition removal of troubled designation, a PHA 
also must submit its request in writing to the Director of the Real 
Estate Assessment Center. The written request must be received by REAC 
no later than 30 days after HUD's decision to refuse to remove the PHA's 
troubled designation.
    (2) An appeal of troubled designation or petition for removal of 
troubled designation must include the PHA's supporting documentation and 
reasons for the appeal. An appeal of a PHAS score must be accompanied by 
the PHA's reasonable evidence that an objectively verifiable and 
material error occurred. An appeal submitted to REAC without appropriate 
documentation will not be considered and will be returned to the PHA.
    (d) Consideration of appeal. (1) Consideration of appeal of PHAS 
score. Upon receipt of an appeal of a PHAS score from a PHA, REAC will 
review the PHA's file and the evidence submitted by the PHA to support 
that an error occurred. If REAC determines that an objectively 
verifiable and material error has been documented by the PHA, REAC will 
convene a Board of Review, in accordance with the procedures of 
paragraphs (d) and (e) of this section, to evaluate the appeal and its 
merits for purposes of determining whether a reassessment of the PHA is 
warranted. For appeal of PHAS scores, the Board of Review may determine 
that REAC should undertake a new inspection of the property, and/or a 
reexamination of the financial information, management information, or 
resident information (the components of the PHAS score), depending upon 
which PHAS Indicator the PHA believes was scored erroneously and the 
type of evidence submitted by the PHA to support its position that an 
error occurred.
    (2) Consideration of appeal of troubled designation or refusal to 
remove troubled designation. Upon receipt of an appeal of a troubled 
designation from a PHA, REAC will convene a Board of Review (the Board) 
to evaluate the appeal and its merits for the purpose of determining 
whether a reassessment of the PHA is warranted. Board membership will be 
comprised of a representative from REAC, from the Office of Public and 
Indian Housing, and from such other office or representative as the 
Secretary may designate (excluding,

[[Page 276]]

however, representation from the Troubled Agency Recovery Center). For 
purposes of reassessment, REAC will schedule a reinspection and/or 
acquire audit services, as determined by the Board, and a new score will 
be issued, if appropriate. Decisions by the Board will be reported to 
the PHA by the Assistant Secretary for Public and Indian Housing.
    (e) Final appeal decisions. HUD will make final decisions of 
appeals, made under this section, within 30 days of receipt of an 
appeal, and may extend this period for an additional 30 days if further 
inquiry is necessary. Failure by a PHA to submit supporting 
documentation with its request for appeal, or within any additional 
period granted by HUD is grounds for denial of an appeal. Final appeal 
decisions will be reported to the PHA by the Assistant Secretary for 
Public and Indian Housing.

[65 FR 36045, June 6, 2000]