[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR901.135]



[Page 255-256]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 901_PUBLIC HOUSING MANAGEMENT ASSESSMENT PROGRAM--Table of Contents

 

Sec.  901.135  Memorandum of Agreement.



    (a) After consulting the independent assessment team and reviewing 

the report identified in section 6(j)(2)(b) of the 1937 Act, a 

Memorandum of Agreement (MOA), a binding contractual agreement between 

HUD and a PHA, shall be required for each PHA designated as troubled 

and/or mod-troubled. The scope of the MOA may vary depending upon the 

extent of the problems present in the PHA, but shall include:

    (1) Baseline data, which should be raw data but may be the PHA's 

score in each of the indicators identified as a problem, or other 

relevant areas identified as problematic;

    (2) Annual and quarterly performance targets, which may be the 

attainment of a higher grade within an indicator that is a problem, or 

the description of a goal to be achieved, for example, the reduction of 

rents uncollected to 6% or less by the end of the MOA annual period;

    (3) Strategies to be used by the PHA in achieving the performance 

targets within the time period of the MOA;

    (4) Technical assistance to the PHA provided or facilitated by the 

Department, for example, the training of PHA employees in specific 

management areas or assistance in the resolution of outstanding HUD 

monitoring findings;

    (5) The PHA's commitment to take all actions within its control to 

achieve the targets;

    (6) Incentives for meeting such targets, such as the removal of 

troubled or mod-troubled designation and Departmental recognition for 

the most improved PHAs;

    (7) The consequences of failing to meet the targets, including such 

sanctions as the imposition of budgetary limitations, declaration of 

substantial default and subsequent actions, limited denial of 

participation, suspension, debarment, or the imposition of operating 

funding and modernization thresholds; and

    (8) A description of the involvement of local public and private 

entities, including PHA resident leaders, in carrying out the agreement 

and rectifying the PHA's problems. A PHA shall have primary 

responsibility for obtaining active local public and private entity 

participation, including the involvement of public housing resident 

leaders, in assisting PHA improvement efforts. Local public and private 

entity participation should be premised upon the participant's knowledge 

of the PHA, ability to contribute technical expertise with regard to the 

PHA's specific problem areas and authority to make preliminary/tentative 

commitments of support, financial or otherwise.

    (b) A MOA shall be executed by:

    (1) The PHA Board Chairperson and accompanied by a Board resolution, 

or a receiver (pursuant to a court ordered receivership agreement, if 

applicable) or other AME acting in lieu of the PHA Board;

    (2) The PHA Executive Director, or a designated receiver (pursuant 

to a court ordered receivership agreement, if applicable) or other AME-

designated Chief Executive Officer;



[[Page 256]]



    (3) The Director, State/Area Office of Public Housing, except as 

stated in (d) of this section; and

    (4) The appointing authorities of the Board of Commissioners, unless 

exempted by the State/Area Office.

    (c) The Department encourages the inclusion of the resident 

leadership in MOA negotiations and the execution of the MOA.

    (d) Upon designation of a large PHA (1250 or more units under 

management) as troubled, the State/Area Office shall make a referral to 

HUD Headquarters for appropriate recovery intervention and the execution 

of an MOA by the Assistant Secretary for Public and Indian Housing.

    (e) A PHA will monitor MOA implementation to ensure that performance 

targets are met in terms of quantity, timeliness and quality.