[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: 24CFR902.25]



[Page 267-270]

 

                 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 B_PHAS Indicator #1: Physical Condition

 

Sec.  902.25  Physical condition scoring and thresholds.



    (a) Scoring. Under PHAS Indicator 1, REAC will calculate a 

score for the overall condition of a PHA's public housing portfolio 

following the procedures described in the PHAS Notice on the Physical 

Condition Scoring Process (PHAS PASS Notice 3), which will be published 

in the Federal Register. HUD may revise this notice in the future, but 

HUD will publish for comment any significant proposed amendments to this 

notice. After comments have been considered, HUD will publish a notice 

adopting a final notice or amendment. The PHAS Notice on the Physical 

Condition Scoring Process that is currently in effect can be found at 

the REAC Internet site at http://www.hud.gov/reac or obtained from 

REAC's Technical Assistance Center at 888-245-4860 (this is a toll free 

number).

    (b) Adjustment for physical condition (property age) and 

neighborhood environment. In accordance with section 6(j)(1)(I)(2) of 

the Act (42 U.S.C. 1437d(j)(1)(I)(2)), the overall physical score for a 

property will be adjusted upward to the extent that negative conditions 

are caused by situations outside the control of the PHA. These 

situations are related to the poor physical condition of the property or 

the overall depressed condition of the immediately surrounding 

neighborhood. The intent of this adjustment is to avoid penalizing the 

PHA through appropriate application of the adjustment. (See paragraph 

(c) of this section which provides for further adjustments of physical 

condition score under certain circumstances.)

    (1) Adjustments in three areas. Adjustments to the PHA physical 

condition score will be made in three factually observed and assessed 

areas (inspectable areas):

    (i) Physical condition of the site;

    (ii) Physical condition of the common areas on the property; and

    (iii) Physical condition of the building exteriors.

    (2) Definitions. Definitions and application of physical condition 

and neighborhood environment factors are:



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    (i) Physical condition applies to properties over 10 years old and 

that have not received substantial rehabilitation in the last 10 years.

    (ii) Neighborhood environment applies to properties located where 

the immediate surrounding neighborhood (that is a majority of the 

population that resides in the census tracts or census block groups on 

all sides of the development) has at least 51 percent of families with 

incomes below the poverty rate as documented by the most recent census 

data.

    (3) Adjustment for physical condition (property age) and 

neighborhood environment. HUD will adjust the physical score of a PHA's 

property subject to both the physical condition (property age) and 

neighborhood environment conditions. The adjustments will be made to the 

scores assigned to the applicable inspectable areas so as to reflect the 

difficulty in managing. In each instance where the actual physical 

condition of the inspectable area (site, common areas, building 

exterior) is rated below the maximum score for that area, 1 point will 

be added, but not to exceed the maximum number of points available to 

that inspectable area.

    (i) These extra points will be added to the score of the specific 

inspectable area, by property, to which these conditions may apply. A 

PHA is required to certify in the manner prescribed by HUD, the extent 

to which the conditions apply, and to which inspectable area the extra 

scoring point should be added.

    (ii) A PHA that receives the maximum potential weighted points on 

the inspectable areas may not claim any additional adjustments for 

physical condition and/or neighborhood environments for the respective 

inspectable area(s). In no circumstance shall a property's score for the 

inspectable area, after any adjustment(s) for physical condition and/or 

neighborhood environments, exceed the maximum potential weighted points 

assigned to the respective property's inspectable area(s).

    (4) Scattered site properties. The Date of Full Availability (DOFA) 

shall apply to scattered site properties, where the age of units and 

buildings vary, to determine whether the properties have received 

substantial rehabilitation within the past 10 years and are eligible for 

an adjusted score for the Physical Condition Indicator.

    (5) Maintenance of supporting documentation. PHAs shall maintain 

supporting documentation to show how they arrived at the determination 

that the property's score is subject to adjustment under this section.

    (i) If the basis was neighborhood environments, the PHA shall have 

on file the appropriate maps showing the census block groups surrounding 

the development(s) in question with supporting census data showing the 

level of poverty. Properties that fall into this category but which have 

already been removed from consideration for other reasons (permitted 

exemptions and modifications and/or exclusions) shall not be counted in 

this calculation.

    (ii) For the Physical Condition Indicator, a PHA would have to 

maintain documentation showing the age and condition of the properties 

and the record of capital improvements, evidencing that these particular 

properties have not received capital funds.

    (iii) PHAs shall also document that in all cases, properties that 

were exempted for other reasons were not included in the calculation.

    (c) Database adjustment--(1) Adjustments for factors not reflected 

or inappropriately reflected in physical condition score. Under certain 

circumstances, HUD may determine it is appropriate to review the results 

of a PHA's physical inspection which are unusual or incorrect due to 

facts and circumstances affecting the PHA's property which are not 

reflected in the inspection or which are reflected inappropriately in 

the inspection.

    (i) These circumstances are not those that may addressed by the 

technical review process described in Sec.  902.68. The circumstances 

addressed by this paragraph (c)(1) may include inconsistencies between 

local code requirements and the HUD physical inspection protocol; 

conditions which are permitted by local variance or license or which are 

preexisting physical features that do not conform to, or are 

inconsistent



[[Page 269]]



with, HUD's physical condition protocol; or the PHA has been scored for 

elements (e.g., roads, sidewalks, mail boxes, resident-owned appliances, 

etc.) that it does not own and is not responsible for maintaining, and 

the PHA has notified the proper authorities regarding the deficient 

structure.

    (ii) An adjustment due to these circumstances may be initiated by a 

PHA's notification to the applicable HUD HUB/Program Center and such 

notification shall include appropriate proof of the reasons for the 

unusual or incorrect result. A PHA may submit the request for this 

adjustment either prior to or after the physical inspection has been 

concluded. If the request is made after the conclusion of the physical 

inspection, the request must be made within 15 days of issuance of the 

physical condition score. Based on the recommendation of the applicable 

HUD HUB/Program Center following its review of the PHA's evidence or 

documentation, HUD may determine that a reinspection and/or re-scoring 

of the PHA's property is necessary. HUD shall define, by notice, the 

procedures to be followed to address circumstances described in 

paragraph (c) of this section. The notice will be applicable to both 

public housing and multifamily housing properties covered by 24 CFR part 

5, subpart G.

    (2) Adjustments for adverse conditions beyond the PHA's control. 

Under certain circumstances, HUD may determine that certain deficiencies 

that adversely and significantly affect the physical condition score of 

the PHA were caused by circumstances beyond the control of the PHA. The 

correction of these conditions, however, remains the responsibility of 

the PHA.

    (i) The circumstances addressed by this paragraph (c)(2) may 

include, but are not limited to, damage caused by third parties (such as 

a private entity or public entity undertaking work near a public housing 

development that results in damage to the development) or natural 

disasters. (The circumstances addressed in paragraph (c)(2) of this 

section are not those addressed by the technical review process in Sec.  

902.68.)

    (ii) To adjust a physical condition score based on circumstances 

addressed in paragraph (c)(2) of this section, the PHA must submit a 

request to the applicable HUD HUB/Program Center requesting a 

reinspection of the PHA's properties. The request must be submitted 

within 15 days of the issuance of the physical condition score to the 

PHA and must be accompanied by a certification that all deficiencies 

identified in the original report have been corrected. Based on the 

recommendation of the applicable HUD HUB/Program Center following its 

review of the PHA's evidence or documentation, HUD may determine that a 

reinspection and/or re-scoring of the PHA's property is necessary.

    (3) Adjustments for modernization work in progress. HUD may 

determine that an occupied dwelling unit or other areas of a PHA 

development, subject to physical inspection under this subpart, which 

are undergoing modernization work in progress require an adjustment to 

the physical condition score.

    (i) An occupied dwelling unit or other areas of a PHA development 

undergoing modernization are subject to physical inspection; the unit 

and other areas of the PHA development are not exempt from physical 

inspection. All elements of the unit or of the other areas of the PHA 

development that are subject to inspection and are not undergoing 

modernization at the time of the inspection (even if modernization is 

planned) will be subject to HUD's physical inspection protocol without 

adjustment. For those elements of the unit or of the development that 

are undergoing modernization, deficiencies will be noted in accordance 

with HUD's physical inspection protocol, but the PHA may request 

adjustment of the physical condition score as a result of modernization 

work in progress.

    (ii) An adjustment due to modernization work in progress may be 

initiated by a PHA's notification to the applicable HUD HUB/Program 

Center and the notification shall include supporting documentation of 

the modernization work underway at the time of the physical inspection. 

A PHA may submit the request for this adjustment either prior to or 

after the physical inspection has been concluded. If the request is made 

after the conclusion of the physical inspection, the request must be 

made within 15 days of



[[Page 270]]



issuance of the physical condition score. Based on the recommendation of 

the applicable HUD HUB/Program Center, HUD may determine that a 

reinspection and/or re-scoring of the PHA's property is necessary.

    (d) Overall PHA Physical Condition Indicator score. The overall 

Physical Condition Indicator score for a PHA is the weighted average of 

the PHA's individual property physical inspection scores, where the 

weights are the number of units in each property divided by the total 

number of units in all properties of the PHA.

    (e) Thresholds. (1) The physical condition score is reduced to a 30 

point basis for the PHAS Physical Condition Indicator.

    (2) In order to receive a passing score under the Physical Condition 

Indicator, the PHA must achieve a score of at least 18 points, or 60 

percent of the available points under this indicator. If the PHA fails 

to receive a passing score on the Physical Condition Indicator, the PHA 

shall be categorized as a substandard physical agency.



[65 FR 1738, Jan. 11, 2000, as amended at 65 FR 36044, June 6, 2000]