[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: 24CFR968.315]

[Page 516-521]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 968--PUBLIC HOUSING MODERNIZATION--Table of Contents
 
Subpart C--Comprehensive Grant Program (for PHAs That Own or Operate 250 
                      or More Public Housing Units)
 
Sec. 968.315  Comprehensive Plan (including five-year action plan).

    (a) Submission. As soon as possible after modernization funds first 
become available for allocation under this subpart, HUD shall notify 
PHAs in writing of their formula amount. For planning purposes, PHAs may 
use the amount they received under CGP in the prior year in developing 
their comprehensive plan, or they may wait for the annual HUD 
notification of formula amount under Sec. 968.310(b)(1).
    (b)(1) Resident participation. A PHA is required to develop, 
implement, monitor and annually amend portions of its comprehensive plan 
in consultation with residents of the developments covered by the 
comprehensive plan. In addition, the PHA shall consult with resident 
management corporations (RMCs) to the extent that an RMC manages a 
development covered by the comprehensive plan. The PHA, in partnership 
with the residents, must develop and implement a process for resident 
participation that ensures that residents are involved in a meaningful 
way in all phases of the CGP. Such involvement shall involve 
implementing the Partnership Process as a critical element of the CGP.
    (2) Establishment of Partnership Process. The PHA, in partnership 
with the residents of the developments covered by the plan (and which 
may include resident leaders, resident councils, resident advisory 
councils/boards, and RMCs) must establish a Partnership Process to 
develop and implement the goals, needs, strategies and priorities 
identified in the comprehensive plan. After residents have organized to 
participate in the CGP, they may decide to establish a volunteer 
advisory group of experts in various professions to assist them in the 
CGP Partnership Process. The Partnership Process shall be designed to 
achieve the following:
    (i) To ensure that residents are fully briefed and involved in 
developing the content of, and monitoring the implementation of, the 
comprehensive plan including, but not limited to, the physical and 
management needs assessments, viability analysis, Five-Year Action Plan, 
and Annual Statement. If necessary, the PHA shall develop and implement 
capacity building strategies to ensure meaningful resident participation 
in CGP. Such technical assistance efforts for residents are eligible 
management improvement costs under CGP;
    (ii) To enable residents to participate, on a PHA-wide or area-wide 
basis, in ongoing discussions of the comprehensive plan and strategies 
for its implementation, and in all meetings necessary to ensure 
meaningful participation.

[[Page 517]]

    (3) Public notice. Within a reasonable amount of time before the 
advance meeting for residents under paragraph (b)(4) of this section and 
the public hearing under paragraph (b)(5) of this section, the PHA shall 
provide public notice of the advance meeting and the public hearing in a 
manner determined by the PHA that ensures notice to all duly elected 
resident councils.
    (4) Advance meeting for residents. The PHA shall hold, within a 
reasonable amount of time before the public hearing under paragraph 
(b)(5) of this section, a meeting for residents and duly elected 
resident councils at which the PHA shall explain the components of the 
comprehensive plan. The meeting shall be open to all residents and duly 
elected resident councils.
    (5) Public hearing. The PHA shall hold at least one public hearing, 
and any appropriate number of additional hearings, to present 
information on the comprehensive plan/annual submission and the status 
of prior approval programs. The public hearing shall provide ample 
opportunity for residents, local government officials, and other 
interested parties to express their priorities and concerns. The PHA 
shall give full consideration to the comments and concerns of residents, 
local government officials, and other interested parties.
    (c) Local government participation. A PHA shall consult with and 
provide information to appropriate local government officials with 
respect to the development of the comprehensive plan to ensure that 
there is coordination between the actions taken under the consolidated 
plan (see 24 CFR part 91) for project and neighborhood improvements 
where public housing units are located or proposed for construction and/
or modernization and improvement and to coordinate meeting public and 
human service needs of the public and assisted housing projects and 
their residents. In the case of a PHA with developments in multiple 
jurisdictions, the PHA may meet this requirement by consulting with an 
advisory group representative of all the jurisdictions. At a minimum, 
such consultation must include providing such officials with:
    (1) Advance written notice of the public hearing required under 
paragraph (b)(5) of this section;
    (2) A copy of the summary of total preliminary estimated costs to 
address physical needs by each development and management/operations 
needs PHA-wide and a specific description of the PHA's process for 
maximizing the level of participation by residents and a summary of the 
general issues raised on the plan by residents and others during the 
public comment process and the PHA's response to the general issues. PHA 
records, such as minutes of planning meetings or resident surveys, shall 
be maintained in the PHA's files and made available to residents, 
resident organizations, and other interested parties upon request; and
    (3) An opportunity to express their priorities and concerns to 
ensure due consideration in the PHA's planning process;
    (d) Participation in coordinating entities. To the extent that 
coordinating entities are set up to plan and implement the consolidated 
plans (under 24 CFR part 91), the PHA shall participate in these 
entities to ensure coordination with broader community development 
strategies.
    (e) Contents of comprehensive plan. The comprehensive plan shall 
identify all of the physical and management improvements needed for a 
PHA and all of its developments, and that represent needs eligible for 
funding under Sec. 968.112. The plan also shall include preliminary 
estimates of the total cost of these improvements. The plan shall set 
forth general strategies for addressing the identified needs, and 
highlight any special strategies, such as major redesign or partial 
demolition of a development, that are necessary to ensure the long-term 
physical and social viability of the development. Where long-term 
physical and social viability of the development is dependent upon 
revitalization of the surrounding neighborhood in the provision of or 
coordination of public services, or the consolidation or coordination of 
drug prevention and other human service initiatives, the PHA shall 
identify these needs and strategies. In addition, the PHA shall identify 
the funds or other resources in the consolidated

[[Page 518]]

plan that are to be used to help address these needs and strategies and 
the activities in the comprehensive plan that strengthen the 
consolidated plan. Each comprehensive plan shall contain the following 
elements:
    (1) Executive summary. A PHA shall include as part of its 
comprehensive plan an executive summary to facilitate review and 
comprehension by development residents and by the public. The executive 
summary shall include the following:
    (i) A summary of total preliminary estimated costs to address 
physical needs by each development and PHA-wide physical and management 
needs; and
    (ii) A specific description of the PHA's process for maximizing the 
level of participation by residents during the development, 
implementation and monitoring of the Comprehensive Plan, a summary of 
the general issues raised on the plan by residents and others during the 
public comment process and the PHA's response to the general issues. PHA 
records, such as minutes of planning meetings or resident surveys, shall 
be maintained in the PHA's files and made available to residents, duly 
elected resident councils, and other interested parties, upon request;
    (2) Physical needs assessment--(i) Requirements. The physical needs 
assessment identifies all of the work that a PHA would need to undertake 
to bring each of its developments up to the modernization and energy 
conservation standards, as required by the Act, to comply with the lead-
based paint requirements in part 35, subparts A, B, L, and R of this 
title, and to comply with other program requirements under Sec. 968.110. 
The physical needs assessment is completed without regard to the 
availability of funds, and shall include the following:
    (A) A brief summary of the physical improvements necessary to bring 
each such development to a level at least equal to applicable HUD 
standards with respect to modernization standards, energy conservation 
and life-cycle cost effective performance standards, lead-based paint 
testing and abatement standards. This summary must indicate the relative 
urgency of need. If the PHA has no physical improvement needs at a 
particular development at the time it completes its comprehensive plan, 
it must so indicate. Similarly, if the PHA intends to demolish, 
partially demolish, convert, or dispose of a development (or units 
within a development) it must so indicate in the summary of physical 
improvements;
    (B) The replacement needs of equipment systems and structural 
elements that will be required to be met (assuming routine and timely 
maintenance is performed) during the period covered by the action plan;
    (C) A preliminary estimate of the cost to complete the physical 
work;
    (D) Any physical disparities between buildings occupied 
predominantly by one racial or ethnic group and, in such cases, the 
physical improvements required to correct the conditions; and
    (E) In addition, with respect to vacant or non-homebuyer occupied 
Turnkey III units, the estimated number of units that the PHA is 
proposing for substantial rehabilitation and subsequent sale, in 
accordance with Sec. 968.112(d)(3).
    (ii) Source of data. The PHA shall identify in its needs assessment 
the sources from which it derived data to develop the physical needs 
assessment under this paragraph (e)(2) and shall retain such source 
documents in its files;
    (3) Management needs assessment--(i) Requirements. The plan shall 
include a comprehensive assessment of the improvements needed to upgrade 
the management and operation of the PHA and of each viable development 
so decent, safe, and sanitary living conditions will be provided. The 
management needs assessment shall include the following, with the 
relative urgency of need indicated:
    (A) An identification of the most current needs related to the 
following areas (to the extent that any of these needs is addressed in a 
HUD-approved memorandum of agreement or improvement plan, the PHA may 
simply include a cross-reference to these documents):
    (1) The management, financial, and accounting control systems of the 
PHA;
    (2) The adequacy and qualifications of personnel employed by the PHA 
in

[[Page 519]]

its management and operation, for each significant category of 
employment;
    (3) The adequacy and efficacy of:
    (i) Resident programs and services;
    (ii) Resident and development security;
    (iii) Resident selection and eviction;
    (iv) Occupancy;
    (v) Maintenance;
    (vi) Resident management and resident capacity building programs;
    (vii) Resident opportunities for employment and business development 
and other self-sufficiency opportunities for residents; and
    (viii) Homeownership opportunities for residents;
    (B) Any additional deficiencies identified through PHMAP, audits and 
HUD monitoring reviews that are not addressed under paragraph 
(e)(3)(i)(A) of this section. To the extent that any of these is 
addressed in a HUD-approved memorandum of agreement or improvement plan, 
the PHA may include a cross-reference to these documents;
    (C) Any other management and operations needs that the PHA wants to 
address at the PHA-wide or development level; and
    (D) A PHA-wide preliminary cost estimate for addressing all the 
needs identified in the management needs assessment, without regard to 
the availability of funds;
    (ii) Sources of funds. The PHA shall identify in its needs 
assessment the sources from which it derived data to develop the 
management needs assessment under this paragraph (e)(3) and shall retain 
such source documents in its files;
    (4) Demonstration of long-term physical and social viability. (i) 
General. The plan shall include, on a development-by-development basis, 
an analysis of whether completion of the improvements and replacements 
identified under paragraphs (e)(2) and (e)(3) of this section will 
reasonably ensure the long-term physical and social viability, including 
achieving structural/system soundness and full occupancy, of the 
development at a reasonable cost. For cost reasonableness, the PHA shall 
determine whether the unfunded hard costs satisfy the definition of 
``reasonable cost.'' Where the PHA wishes to fund a development, for 
other than emergencies, where hard costs exceed that reasonable cost, 
the PHA shall submit written justification to the Field Office. If the 
Field Office agrees with the PHA's request, the Field Office shall 
forward its recommendation to Headquarters for final decision. Where the 
estimated per unit unfunded hard cost is equal to or less than the per 
unit TDC for the smallest bedroom size at the development, no further 
computation of the TDC limit is required. The PHA shall keep 
documentation in its files to support all cost determinations. The Field 
Office will review cost reasonableness as part of its review of the 
annual submission and the performance and evaluation report. As 
necessary, HUD will review the PHA's documentation in support of its 
cost reasonableness, taking into account broader efforts to revitalize 
the neighborhoods in which the development is located;
    (ii) Determination of non-viability. Where a PHA's analysis of a 
development under paragraph (e) of this section establishes that 
completion of the identified improvements and replacements will not 
result in the long-term physical and social viability of the development 
at a reasonable cost, the PHA shall not expend CGP funds for the 
development, except for emergencies and essential non-routine 
maintenance necessary to maintain habitability until residents can be 
relocated. The PHA shall specify in its comprehensive plan the actions 
it proposes to take with respect to the non-viable development (e.g., 
demolition or disposition under 24 CFR part 970);
    (5) Five-year action plan. (i) General. The comprehensive plan shall 
include a rolling five-year action plan to carry out the improvements 
and replacements (or a portion thereof) identified under paragraphs 
(e)(2) and (e)(3) of this section. In developing its five-year action 
plan, the PHA shall assume that the current year funding or formula 
amount will be available for each year of its five-year action plan, 
whichever the PHA is using for planning purposes, plus the PHA's 
estimate of the funds that will be available from other sources, such as 
state and local governments. All activities specified in a

[[Page 520]]

PHA's five-year action plan are contingent upon the availability of 
funds;
    (ii) Requirements. Under the action plan, a PHA must indicate how it 
intends to use the funds available to it under the CGP to address, over 
a five-year period, the deficiencies (or a portion of the deficiencies) 
identified in its physical and management needs assessments, as follows:
    (A) Physical condition. With respect to the physical condition of a 
PHA's developments, a PHA must indicate in its action plan how it 
intends to address, over a five-year period, the deficiencies (or a 
portion of the deficiencies) identified in its physical needs assessment 
so as to bring each of its developments up to a level at least equal to 
the modernization and energy conservation standards. This includes 
specifying the work to be undertaken by the PHA in major work categories 
(e.g., kitchens, electrical systems, etc.); establishing priorities 
among the major work categories by development and year, based upon the 
relative urgency of need; and estimating the cost of each of the 
identified major work categories. In developing its action plan, a PHA 
shall give priority to the following:
    (1) Activities required to correct emergency conditions;
    (2) Activities required to meet statutory or other legally mandated 
requirements (e.g., compliance with a court-ordered desegregation plan 
or voluntary compliance agreement);
    (3) Activities required to meet the needs identified in the Section 
504 needs assessment within the regulatory timeframe; and
    (4) Activities required to complete lead-based paint testing and 
abatement requirements;
    (B) Management and operations. A PHA must address in its action plan 
the management and operations deficiencies (or a portion of the 
deficiencies) identified in its management needs assessment, as follows:
    (1) With respect to the management and operations needs of the PHA, 
the PHA must identify how it intends to address with CGP funds, if 
necessary, the deficiencies (or a portion thereof) identified in its 
management needs assessment, including work identified through PHMAP, 
audits, HUD monitoring reviews, and self-assessments. The action plan 
must indicate the relative urgency of need;
    (2) A preliminary PHA-wide cost estimate, by major work category.
    (iii) Procedure for maintaining current five-year action plan. The 
PHA shall maintain a current five-year action plan by annually amending 
its five-year action plan, in conjunction with the annual submission;
    (6) Local government statement. The comprehensive plan shall include 
a statement signed by the chief executive officer of the unit of general 
local government (or, in the case of a PHA with developments in multiple 
jurisdictions, from the CEO of each such jurisdiction) certifying to the 
following:
    (i) The PHA developed the comprehensive plan/five-year action plan 
or amendments thereto in consultation with officials of the appropriate 
governing body and with development residents covered by the 
comprehensive plan/five-year action plan, in accordance with the 
requirements of paragraphs (b) and (c) of this section;
    (ii) The comprehensive plan/five-year action plan or amendments 
thereto are consistent with the appropriate governing body's assessment 
of its low income housing needs (as evidenced by its consolidated plan 
under 24 CFR part 91, if applicable), and that the appropriate governing 
body will cooperate in providing resident programs and services; and
    (iii) The PHA's proposed drug elimination activities are coordinated 
with, and supportive of, local drug elimination strategies and 
neighborhood improvement programs, if applicable; and
    (7) PHA resolution. The plan shall include a resolution, in a form 
prescribed by HUD, adopted by the PHA Board of Commissioners, and signed 
by the Board Chairman of the PHA, approving the comprehensive plan or 
any amendments.
    (f) Amendments to the comprehensive plan--(1) Extension of time for 
performance. A PHA shall have the right to amend its comprehensive plan 
(including the action plan) to extend the time for performance whenever 
HUD has not provided the amount of assistance set forth in the 
comprehensive plan or has

[[Page 521]]

not provided the assistance in a timely manner;
    (2) Amendments to needs assessments. The PHA shall amend its plan by 
revising its needs assessments whenever it proposes to carry out 
activities in its five-year action plan or annual statement that are not 
reflected in its current needs assessments (except in the case of 
emergencies). The PHA may propose an amendment to its needs assessments, 
in connection with the submission of its annual submission (see 
Sec. 968.325) or at any other time. These amendments shall be reviewed 
by HUD in accordance with Sec. 968.320.
    (3) Six-year revision of comprehensive plan. Every sixth year 
following the initial year of participation, the PHA shall submit to 
HUD, with its annual submission, a complete update of its comprehensive 
plan. A PHA may elect to revise some or all parts of the comprehensive 
plan more frequently.
    (4) Annual revision of five-year action plan. Annually, the PHA 
shall submit to HUD, with its annual submission, an update of its five-
year action plan, eliminating the previous year and adding an additional 
year. The PHA shall identify changes in work categories (other than 
those included in the new fifth year) from the previous year five-year 
action plan when making this annual submission.
    (5) Required submissions. Any amendments to the comprehensive plan 
under this section must be submitted with the PHA resolution under 
Sec. 968.315(e)(7).
    (g) Prerequisite for receiving assistance--(1) Prohibition of 
assistance. No financial assistance, except for emergency work to be 
funded under Secs. 968.103(b) and 968.112(a)(1)(ii), and for 
modernization needs resulting from disasters under Sec. 968.103(b), may 
be made available under this subpart unless HUD has approved a 
comprehensive plan submitted by the PHA that meets the requirements of 
this section. A PHA that has failed to obtain approval of its 
comprehensive plan by the end of the FFY shall have its formula 
allocation for that year (less any formula amounts provided to the PHA 
for emergencies) added to the subsequent year's appropriation of funds 
for grants under this part. HUD shall allocate such funds to PHAs and 
IHAs participating in the CGP in accordance with the formula under 
Sec. 968.103(e) and (f) in the subsequent FFY. A PHA that elects in any 
FFY not to participate in the CGP may participate in the CGP in 
subsequent FFYs;
    (2) Requests for emergency assistance. A PHA may receive funds from 
its formula allocation to address emergency modernization needs where 
HUD has not approved a PHA's comprehensive plan. To request such 
assistance, a PHA shall submit to HUD a request for funds in such form 
as HUD may prescribe, including any documentation necessary to support 
its claim that an emergency exists. HUD shall review the request and 
supporting documentation to determine if it meets the definition of 
``emergency work'' as set forth in Sec. 968.305.

(Approved by the Office of Management and Budget under control number 
2577-0157)

[61 FR 8744, Mar. 5, 1996, as amended at 64 FR 50229, Sept. 15, 1999]