[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: 24CFR901.5]



[Page 232-237]

 

                 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.  901.5  Definitions.



    Actual vacancy rate is the vacancy rate calculated by dividing the 

total number of vacancy days in the fiscal year by the total number of 

unit days available in the fiscal year.

    Adjusted vacancy rate is the vacancy rate calculated after excluding 

the vacancy days that are exempted for any of the eligible reasons. It 

is calculated by dividing the total number of adjusted vacancy days in 

the fiscal year by the total number of unit days available in the fiscal 

year.

    Alternative management entity (AME) is a receiver, private 

contractor, private manager, or any other entity that is under contract 

with a PHA, or that is otherwise duly appointed or contracted (for 

example, by court order, pursuant to a court ordered receivership 

agreement, if applicable, or agency action), to manage all or part of a 

PHA's operations. Depending upon the scope of PHA management functions 

assumed by the AME, in accordance with Sec.  901.1(b)(2), the AME is 

treated as a PHA or an RMC for purposes of this part and, as 

appropriate, the terms PHA and RMC include AME.

    Assessed fiscal year is the PHA fiscal year that has been reviewed 

for management performance using the PHMAP indicators. Unless otherwise 

indicated, the assessed fiscal year is the immediate past fiscal year of 

a PHA.

    Assistant Secretary means the Assistant Secretary for Public and 

Indian Housing of the Department.

    Available units are dwelling units, (occupied or vacant) under a 

PHA's Annual Contributions Contract, that are available for occupancy, 

after excluding or adjusting for units approved for non-dwelling use, 

employee-occupied units, and vacant units approved for deprogramming 

(units approved for demolition, disposition or units that have been 

combined).

    Average number of days for non-emergency work orders to be completed 

is calculated by dividing the total of the:

    (1) Number of days in the assessed fiscal year it takes to close 

active non-emergency work orders carried over from the previous fiscal 

year;

    (2) The number of days it takes to complete non-emergency work 

orders issued and closed during the assessed fiscal year; and

    (3) The number of days all active non-emergency work orders are open 

in the assessed fiscal year, but not completed, by the total number of 

non-



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emergency work orders used in the calculation of paragraphs (1), (2) and 

(3), of this definition.

    Average turnaround time is the annual average of the total number of 

turnaround days between the latter of the legal expiration date of the 

immediate past lease or the actual move-out date of the former tenant 

(whenever that occurred, including in some previous fiscal year) and the 

date a new lease takes effect. Each time an individual unit is re-

occupied (turned around) during the fiscal year, the turnaround days for 

that unit shall be counted in the turnaround time. Average turnaround 

time is calculated by dividing the total turnaround days for all units 

re-occupied during the assessed fiscal year by the total number of units 

re-occupied during the assessed fiscal year.

    Cash reserve is the amount of cash available for operations at the 

end of an annual reporting period after all necessary expenses of a PHA 

or development have been paid or funds have been set-aside for such 

payment. The cash reserve computation takes into consideration both 

short-term accounts receivable and accounts payable.

    Confirmatory review is an on-site review for the purposes of State/

Area Office verification of the performance level of a PHA, the accuracy 

of the data certified to by a PHA, and the accuracy of the data derived 

from State/Area Office files.

    Correct means to improve performance in an indicator to a level of 

grade C or better.

    Cyclical work orders are work orders issued for the performance of 

routine maintenance work that is done in the same way at regular 

intervals. Examples of cyclical work include, but are not limited to, 

mopping hallways; picking up litter; cleaning a trash compactor; 

changing light bulbs in an entryway; etc. (Cyclical work orders should 

not be confused with preventive maintenance work orders.)

    Deficiency means any grade below C in an indicator or component.

    Down time is the number of calendar days a unit is vacant between 

the later of the legal expiration date of the immediate past lease or 

the actual move-out date of the former resident, and the date the work 

order is issued to maintenance.

    Dwelling rent refers to the resident dwelling rent charges reflected 

in the monthly rent roll(s) and excludes utility reimbursements, 

retroactive rent charges, and any other charges not specifically 

identified as dwelling rent, such as maintenance charges, excess utility 

charges and late charges.

    Dwelling rent to be collected means dwelling rent owed by residents 

in possession at the beginning of the assessed fiscal year, plus 

dwelling rent charged to residents during the assessed fiscal year.

    Dwelling rent uncollected means unpaid resident dwelling rent owed 

by any resident in possession during the assessed fiscal year, but not 

collected by the last day of the assessed fiscal year.

    Dwelling unit is a unit that is either leased or available for lease 

to eligible low-income residents.

    Effective lease date is the date when the executed lease contract 

becomes effective and rent is due and payable and all other provisions 

of the lease are enforceable.

    Emergency means physical work items that pose an immediate threat to 

life, health, safety, or property, or that are related to fire safety.

    Emergency status abated means that an emergency work order is either 

fully completed, or the emergency condition is temporarily eliminated 

and no longer poses an immediate threat. If the work cannot be 

completed, emergency status can be abated by transferring the resident 

away from the emergency situation.

    Emergency work order is a work order, from any source, that involves 

a circumstance that poses an immediate threat to life, health, safety or 

property, or that is related to fire safety.

    Employee occupied units refers to units that are occupied by 

employees who are required to live in public housing as a condition of 

their job, rather than the occupancy being subject to the normal 

resident selection process.

    HQS means Housing Quality Standards as set forth at Sec.  982.401 of 

this title, except that Sec.  982.401(j) of this title



[[Page 234]]



does not apply and instead part 35, subparts A, B, L, and R of this 

title apply.

    Improvement Plan is a document developed by a PHA, specifying the 

actions to be taken, including timetables, that may be required to 

correct deficiencies where the grade for an indicator is a grade D or E, 

and shall be required to correct deficiencies of failed indicators, 

identified as a result of the PHMAP assessment when an MOA is not 

required.

    Indicators means the major categories of PHA management functions 

that are examined under this program for assessment purposes. The list 

of individual indicators and the way they are graded is provided in 

Sec.  901.10 through Sec.  901.45.

    Lease up time is the number of calendar days between the time the 

repair of a unit is completed and a new lease takes effect.

    Local occupancy/housing codes are the minimum standards for human 

occupancy, if any, as defined by the local ordinance(s) of the 

jurisdiction in which the housing is located.

    Maintenance plan is a comprehensive annual plan of a PHA's 

maintenance operation that contains the fiscal year's estimated work 

schedule and which is supported by a staffing plan, contract schedule, 

materials and procurement plan, training, and approved budget. The plan 

should establish a strategy for meeting the goals and time frames of the 

facilities management planning and execution, capital improvements, 

utilities, and energy conservation activities.

    Major systems include, but are not limited to, structural/building 

envelopes which include roofing, walls, windows, hardware, flashing and 

caulking; mechanical systems which include heating, ventilation, air 

conditioning, plumbing, drainage, underground utilities (gas, electrical 

and water), and fuel storage tanks; electrical systems which include 

underground systems, above ground systems, elevators, emergency 

generators, door bells, electronic security devices, fire alarms, smoke 

alarms, outdoor lighting, and indoor lighting (halls, stairwells, public 

areas and exit signs); and transformers.

    Make ready time is the number of calendar days between the date the 

unit is referred to maintenance for repair by a work order and occupancy 

is notified that the unit is ready for re-occupancy.

    Memorandum of Agreement (MOA) is a binding contractual agreement 

between a PHA and HUD that is required for each PHA designated as 

troubled and/or mod-troubled. The MOA sets forth target dates, 

strategies and incentives for improving management performance; and 

provides sanctions if performance does not result.

    Move-out date is the actual date when the resident vacates the unit, 

which may or may not coincide with the legal expiration of the lease 

agreement.

    Non-emergency work order is any work order that covers a situation 

that is not an immediate threat to life, health, safety, or property, or 

that is unrelated to fire safety.

    Percent of dwelling rent uncollected is calculated by dividing the 

amount of dwelling rent uncollected by the total dwelling rent to be 

collected.

    PHA means a public housing agency. As appropriate in accordance with 

Sec.  901.1(b)(2), PHA also includes AME.

    Percentage of emergency work orders completed within 24 hours is the 

ratio of emergency work orders completed in 24 hours to the total number 

of emergency work orders. The formula for calculating this ratio is: 

total emergency work orders completed (or emergency status abated) in 24 

hours or less, divided by the total number of emergency work orders.

    PHA-generated work order is any work order that is issued in 

response to a request from within the PHA administration.

    Preventive maintenance program is a program under which certain 

maintenance procedures are systematically performed at regular intervals 

to prevent premature deterioration of buildings and systems. The program 

is developed and regularly updated by the PHA, and fully documents what 

work is to be performed and at what intervals. The program includes a 

system for tracking the performance of preventive maintenance work.

    Preventive maintenance work order is any work done on a regularly 

scheduled basis in order to prevent deterioration or breakdowns in 

individual units or major systems.



[[Page 235]]



    Reduced actual vacancy rate within the previous three years is a 

comparison of the vacancy rate in the PHMAP assessment year (the 

immediate past fiscal year) with the vacancy rate of that fiscal year 

which is two years previous to the assessment year. It is calculated by 

subtracting the vacancy rate in the assessment year from the vacancy 

rate in the earlier year. If a PHA elects to certify to the reduction of 

the vacancy rate within the previous three years, the PHA shall retain 

justifying documentation to support its certification for HUD post 

review.

    Reduced the average time it took to complete non-emergency work 

orders during the previous three years is a comparison of the average 

time it took to complete non-emergency work orders in the PHMAP 

assessment year (the immediate past fiscal year) with the average time 

it took to complete non-emergency work orders of that fiscal year which 

is two years previous to the assessment year. It is calculated by 

subtracting the average time it took to complete non-emergency work 

orders in the PHMAP assessment year from the average time it took to 

complete non-emergency work orders in the earlier year. If a PHA elects 

to certify to the reduction of the average time it took to complete non-

emergency work orders during the previous three years, the PHA shall 

retain justifying documentation to support its certification for HUD 

post review.

    Resident-generated work order is a work order issued by a PHA in 

response to a request from a lease holder or family member of a lease 

holder.

    Resident management corporation (RMC) means the entity that proposes 

to enter into, or that enters into, a management contract with a PHA in 

accordance with 24 CFR 964.120. As appropriate in accordance with Sec.  

901.1(b)(2), RMC also includes AME.

    Routine operating expenses are all expenses which are normal, 

recurring fiscal year expenditures. Routine expenses exclude those 

expenditures that are not normal fiscal year expenditures and those that 

clearly represent work of such a substantial nature that the expense is 

clearly not a routine occurrence.

    Standards equivalent to HQS are housing/occupancy inspection 

standards that are equal to HUD's Section 8 HQS.

    Substantial default means a PHA is determined by the Department to 

be in violation of statutory, regulatory or contractual provisions or 

requirements, whether or not these violations would constitute a 

substantial default or a substantial breach under explicit provisions of 

the relevant Annual Contributions Contract (ACC) or a Memorandum of 

Agreement.

    Unit days available are the number of days that the available units 

were available for occupancy in a PHA fiscal year. Unit days available 

are calculated by adding the number of days that each unit was available 

for occupancy in the year.

    Units approved for non-dwelling use refers to units approved for 

non-dwelling status for use in the provision of social services, 

charitable purposes, public safety activities and resident services, or 

used in the support of economic self-sufficiency and anti-drug 

activities.

    Units vacant due to circumstances and actions beyond the PHA's 

control are dwelling units that are vacant due to circumstances and 

actions that prohibit the PHA from occupying, selling, demolishing, 

rehabilitating, reconstructing, consolidating or modernizing the units. 

For purposes of this definition, circumstances and actions beyond the 

PHA's control are limited to:

    (1) Litigation. The effect of court litigation such as a court order 

or settlement agreement that is legally enforceable. An example would be 

units that are required to remain vacant because of fire/police 

investigations, coroner's seal, or as part of a court-ordered or HUD-

approved desegregation effort.

    (2) Laws. Federal or State laws of general applicability, or their 

implementing regulations. This category does not include units vacant 

only because they do not meet minimum housing and building code 

standards pertaining to construction or habitability under Federal, 

State, or local laws or regulations, except when these code violations 

are caused for reasons beyond the control of the PHA, rather than as a 

result of management and/or



[[Page 236]]



maintenance failures by the PHA. Examples of exempted units under this 

category are: vacant units that are documented to be uninhabitable for 

reasons beyond the PHA's control due to high/unsafe levels of hazardous/

toxic materials (e.g., lead-based paint or asbestos), by order of the 

local health department or directive of the Environmental Protection 

Agency, where the conditions causing the order are beyond the control of 

the PHA, and units kept vacant because they became structurally unsound 

(e.g., buildings damaged by shrinking/swelling subsoil or similar 

situations). Other examples are vacant units in which resident property 

has been abandoned, but only if State law requires the property to be 

left in the unit for some period of time, and only for the period stated 

in the law and vacant units required to remain vacant because of fire/

police investigations, coroner's seal, or court order.

    (3) Changing market conditions. Example of units in this category 

are small PHAs that are located in areas experiencing population loss or 

economic dislocations that face a lack of demand in the foreseeable 

future, even after the PHA has taken aggressive marketing and outreach 

measures. Where a PHA claims extraordinary market conditions, the PHA 

will be expected to document the market conditions to which it refers 

(the examples of changing population base and competing projects are the 

simplest), the explicit efforts that the PHA has made to address those 

conditions, the likelihood that those conditions will be mitigated or 

eliminated in the near term, and why the market conditions are such that 

the PHA is prevented from occupying, selling, demolishing, 

rehabilitating, reconstructing, consolidating or modernizing the vacant 

units. In order to justify the adjustment, the PHA will need to document 

the specific market conditions that exist and document marketing and 

outreach efforts. The PHA will need to describe when the downturn in 

market conditions occurred, the location(s) of the unit(s) effected, the 

likelihood that these circumstances will be mitigated or eliminated in 

the near term and why the market conditions are such that they are 

preventing the PHA from occupying, selling, demolishing, rehabilitating, 

reconstructing, consolidating, or modernizing the vacant units.

    (4) Natural disasters. These are vacant units that are documented to 

be uninhabitable because of damaged suffered as a result of natural 

disasters such as floods, earthquakes, hurricanes, tornadoes, etc. In 

the case of a ``natural disaster'' claim, the PHA would be expected to 

point to a proclamation by the President or the Governor that the county 

or other local area in question has, in fact, been declared a disaster 

area.

    (5) Insufficient funding. Lack of funding for otherwise approvable 

applications made for Comprehensive Improvement Assistance Program 

(CIAP) funds (only PHAs with less than 250 units are eligible to apply 

and compete for CIAP funds). This definition will cease to be used if 

CIAP is replaced by a formula grant.

    (6) Casualty Losses. Vacant units that have sustained casualty 

damage and are pending resolution of insurance claims or settlements, 

but only until the insurance claim is adjusted, i.e., funds to repair 

the unit are received. The vacancy days exempted are those included in 

the period of time between the casualty loss and the receipt of funds 

from the insurer to cover the loss in whole or in part.

    Vacancy day is a day when an available unit is not under lease by an 

eligible low-income resident. The maximum number of vacancy days for any 

unit is the number of days in the year, regardless of the total amount 

of time the unit has been vacant. Vacancy days are calculated by adding 

the total number of days vacant from all available units that were 

vacant for any reason during the PHA's fiscal year.

    Vacant unit is an available unit that is not under lease to an 

eligible low-income family.

    Vacant unit turnaround work order is a work order issued that 

directs a vacant unit to be made ready to lease to a new resident and 

reflects all work items to prepare the unit for occupancy.



[[Page 237]]



    Vacant unit undergoing modernization as defined in 24 CFR Sec.  

990.102. In addition, the following apply when computing time periods 

for a vacant unit undergoing modernization:

    (1) If a unit is vacant prior to being included in a HUD-approved 

modernization budget, those vacancy days that had accumulated prior to 

the unit being included in the modernization budget must be included as 

non-exempted vacancy days in the calculation.

    (2) The calculation of turnaround time for newly modernized units 

starts when the unit in turned over to the PHA from the contractor and 

ends when the lease is effective for the new or returning resident. 

Thus, the total turnaround time would be the sum of the pre-

modernization vacancy time, and the post-modernization vacancy time.

    (3) Unit-by-unit documentation, showing when a vacant unit was 

included in a HUD-approved modernization budget, when it was released to 

the PHA by the contractor, and when a new lease is effective for the new 

or returning resident, must be maintained by the PHA.

    (4) Units remaining vacant more than two FFYs after the FFY in which 

the modernization funds are approved, may no longer be exempted from the 

calculation of the adjusted vacancy rate if the construction contract 

has not been let. These units may be exempted again, but only after a 

contract is let.

    Vacant units approved for deprogramming exist when a PHA's 

application for the demolition and/or disposition of public housing 

units has received written approval from HUD; or when a PHA's 

application to combine/convert has received written approval from HUD.

    Work order is a directive, containing one or more tasks issued to a 

PHA employee or contractor to perform one or more tasks on PHA property. 

This directive describes the location and the type of work to be 

performed; the date and time of receipt; date and time issued to the 

person or entity performing the work; the date and time the work is 

satisfactorily completed; the parts used to complete the repairs and the 

cost of the parts; whether the damage was caused by the resident; and 

the charges to the resident for resident-caused damage. The work order 

is entered into a log which indicates at all times the status of all 

work orders as to type (emergency, non-emergency), when issued, and when 

completed.

    Work order completed during the immediate past fiscal year is any 

work order that is completed during the PHA's fiscal year regardless of 

when it may have been received.

    Work order deferred for modernization is any work order that is 

combined with similar work items and completed within the current PHMAP 

assessment year, or will be completed in the following year if there are 

less than three months remaining before the end of the PHA fiscal year 

when the work order was generated, under the PHA's modernization program 

or other PHA capital improvements program.



[61 FR 68933, Dec. 30, 1996, as amended at 64 FR 50228, Sept. 15, 1999]