[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: 24CFR901.15]



[Page 239-241]

 

                 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.  901.15  Indicator #2, modernization.



    This indicator is automatically excluded if a PHA does not have a 

modernization program. This indicator examines the amount of unexpended 

funds over three Federal fiscal years (FFY) old, the timeliness of fund 

obligation, the adequacy of contract administration, the quality of the 

physical work, and the adequacy of budget controls. All components apply 

to both the Comprehensive Grant Program (CGP), the Comprehensive 

Improvement Assistance Program (CIAP) and lead based paint risk 

assessment funding (1992-1995), and any successor program(s) to the CGP 

or the CIAP. Only components 3, 4 and 5 apply 

to funding under the Hope VI Program and the Vacancy Reduction Program 

for the assessment of this indicator. This indicator has a weight of 

x1.5.

    (a) Component 1, unexpended funds over three Federal fiscal 

years (FFYs) old. This component has a weight of x1.

    (1) Grade A: The PHA has no unexpended funds over three FFYs old or 

is able to demonstrate one of the following:

    (i) The unexpended funds are leftover funds and will be recaptured 

after audit;

    (ii) There are no unexpended funds past the original HUD-approved 

implementation schedule deadline that allowed longer than three FFYs; or



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    (iii) The PHA has extended the time within 30 calendar days after 

the expenditure deadline and the time extension is based on reasons 

outside of the PHA's control, such as need to use leftover funds, 

unforeseen delays in contracting or contract administration, litigation, 

material shortages, or other non-PHA institutional delay.

    (2) Grade F: The PHA has unexpended funds over three FFYs old and is 

unable to demonstrate any of the above three conditions; or the PHA 

requests HUD approval of a time extension based on reasons within the 

PHA's control.

    (b) Component 2, timeliness of fund obligation. This 

component has a weight of x2.

    (1) Grade A: The PHA has no unobligated funds over two FFYs old or 

is able to demonstrate one of the following:

    (i) There are no unobligated funds past the original HUD-approved 

implementation schedule deadline that allowed longer than two FFYs; or

    (ii) The PHA has extended the time within 30 calendar days after the 

obligation deadline and the time extension is based on reasons outside 

of the PHA's control, such as need to use leftover funds, unforeseen 

delays in contracting or contract administration, litigation, material 

shortages, or other non-PHA institutional delay.

    (2) Grade F: The PHA has unobligated funds over two FFYs old and is 

unable to demonstrate any of the above two conditions; or the PHA 

requests HUD approval of a time extension based on reasons within the 

PHA's control.

    (c) Component 3, adequacy of contract administration. For 

the purposes of this component, the term ``findings'' means a violation 

of a statute, regulation, Annual Contributions Contract or other HUD 

requirement in the area of contract administration. This component has a 

weight of x1.5.

    (1) Grade A: Based on HUD's latest on-site inspection and/or audit, 

where a written report was provided to the PHA at least 75 calendar days 

before the end of the PHA's fiscal year, there were no findings related 

to contract administration or the PHA has corrected all such findings.

    (2) Grade C: Based on HUD's latest on-site inspection and/or audit, 

where a written report was provided to the PHA at least 75 calendar days 

before the end of the PHA's fiscal year, there were findings related to 

contract administration and the PHA is in the process of correcting all 

such findings.

    (3) Grade F: Based on HUD's latest on-site inspection and/or audit, 

where a written report was provided to the PHA at least 75 calendar days 

before the end of the PHA's fiscal year, there were findings related to 

contract administration and the PHA has failed to initiate corrective 

actions for all such findings or those actions which have been initiated 

have not resulted in progress toward remedying all of the findings.

    (d) Component 4, quality of the physical work. For the 

purposes of this component, the term ``findings'' means a violation of a 

statute, regulation, Annual Contributions Contract or other HUD 

requirement in the area of physical work quality. This component has a 

weight of x3.

    (1) Grade A: Based on HUD's latest on-site inspection, where a 

written report was provided to the PHA at least 75 calendar days before 

the end of the PHA's fiscal year, there were no findings related to the 

quality of the physical work or the PHA has corrected all such findings.

    (2) Grade C: Based on HUD's latest on-site inspection, where a 

written report was provided to the PHA at least 75 calendar days before 

the end of the PHA's fiscal year, there were findings related to the 

quality of the physical work and the PHA is in the process of correcting 

all such findings.

    (3) Grade F: Based on HUD's latest on-site inspection, where a 

written report was provided to the PHA at least 75 calendar days before 

the end of the PHA's fiscal year, there were findings related to the 

quality of the physical work and the PHA has failed to initiate 

corrective actions for all such findings or those actions which have 

been initiated have not resulted in progress toward remedying all of the 

findings.

    (e) Component 5, adequacy of budget controls. This 

component has a weight of x1.



[[Page 241]]



    (1) Grade A: The CGP PHA has expended modernization funds only on 

work in HUD-approved CGP Annual Statements, CGP Five-Year Action Plan, 

excluding emergencies, or CIAP Budgets, or has obtained prior HUD 

approval for required budget revisions. The CIAP PHA has expended 

modernization funds only on work in HUD-approved CIAP Budgets or related 

to originally approved work or has obtained prior HUD approval for 

required budget revisions.

    (2) Grade F: The CGP PHA has expended modernization funds on work 

that was not in HUD-approved CGP Annual Statements, CGP Five-Year Action 

Plan, excluding emergencies, or CIAP Budgets, and did not obtain prior 

HUD approval for required budget revisions. The CIAP PHA has expended 

modernization funds on work that was not in HUD-approved CIAP Budgets or 

was unrelated to originally approved work and did not obtain prior HUD 

approval for required budget revisions.