[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: 24CFR964.225]



[Page 460-461]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

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

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 964_TENANT PARTICIPATION AND TENANT OPPORTUNITIES IN PUBLIC HOUSING

--Table of Contents

 

                 Subpart C_Tenant Opportunities Program

 

Sec.  964.225  Resident management requirements.



    The following requirements apply when a HA and its residents are 

interested in providing for resident performance of several management 

functions in one or more projects.

    (a) Resident management corporation responsibilities. Resident 

councils interested in contracting with a HA must establish a resident 

management corporation that meets the requirements for such a 

corporation, as specified in subpart B. The RMC and its employees must 

demonstrate their ability and skill to perform in the particular areas 

of management pursuant to the management contract.

    (b) HA responsibilities. HAs shall give full and serious 

consideration to resident management corporations seeking to enter into 

a management contract with the HA. A HA shall enter into good-faith 

negotiations with a corporation seeking to contract to provide 

management services.

    (c) Duty to bargain in good faith. If a HA refuses to negotiate with 

a resident management corporation in good faith or, after negotiations, 

refuses to enter into a contract, the corporation may file an informal 

appeal with HUD, setting out the circumstances and providing copies of 

relevant materials evidencing the corporation's efforts to negotiate a 

contract. HUD shall require the HA to respond with a report stating the 

HA's reasons for rejecting the corporation's contract offer or for 

refusing to negotiate. Thereafter, HUD shall require the parties (with 

or without direct HUD participation) to undertake or to resume 

negotiations on a contract providing for resident management, and shall 

take such other actions as are necessary to resolve the conflicts 

between the parties. If no resolution is achieved within 90 days from 

the date HUD required the parties to undertake or resume such 

negotiations, HUD shall serve notice on both parties that administrative 

remedies have been exhausted (except that, pursuant to mutual agreement 

of the parties, the time for negotiations may be extended by no more 

than an additional 30 days).

    (d) Management contract. A management contract between the HA and a 

resident management corporation is required for property management. The 

HA and the resident management corporation may agree to the performance 

by the corporation of any or all management functions for which the HA 

is responsible to HUD under the ACC and any other functions not 

inconsistent with the ACC and applicable state and local laws, 

regulations and licensing requirements.

    (e) Procurement requirements. The management contract shall be 

treated as a contracting out of services, and must be subject to any 

provision of a collective bargaining agreement regarding the contracting 

out of services to which the HA is subject. Provisions on competitive 

bidding and requirements of prior written HUD approval of contracts 

contained in the ACC do not apply to the decision of a HA to contract 

with a RMC.

    (f) Rights of families; operation of project. If a resident 

management corporation is approved by the tenant organization 

representing one or more buildings or an area of row houses that are 

part of a public housing project for purposes of part 941 of this 

chapter, the resident management program may not, as determined by the 

HA, interfere with the rights of other residents of such project or harm 

the efficient operation of such project.

    (g) Comprehensive improvement assistance with RMCs. (1) The HA may 

enter into a contract with the RMC to provide comprehensive improvement 

assistance under part 968 of this chapter to modernize a project managed 

by the RMC.

    (2) The HA shall not retain, for any administrative or other reason, 

any



[[Page 461]]



portion of the comprehensive improvement assistance provided, unless the 

PHA and the RMC provide otherwise by contract.

    (3) In assessing the modernization needs of its projects under 24 

CFR part 968, or other grant mechanisms established by the Housing and 

Community Development Act of 1987, the HAs must consult with the tenant 

management corporation regarding any project managed by the corporation, 

in order to determine the modernization needs and preferences of 

resident-managed projects. Evidence of this required consultation must 

be included with a HA's initial submission to HUD.

    (h) Direct provision of operating and capital assistance to RMC--(1) 

Direct provision of assistance to RMC. The ACC shall provide for the 

direct provision of operating and capital assistance by HUD to an RMC 

if:

    (i) The RMC petitions HUD for the release of funds;

    (ii) The contract provides for the RMC to assume the primary 

management responsibilities of the PHA;

    (iii) The RMC has been designated as at least a ``standard 

performer'' under the Public Housing Assessment System (PHAS) (see 24 

CFR part 902); and

    (iv) The RMC is not in violation of any financial, accounting, 

procurement, civil rights, fair housing or other program requirements 

that HUD determines call into question the capability of the RMC to 

effectively discharge its responsibilities under the contract.

    (2) Use of assistance. Any direct capital or operating assistance 

provided to the RMC must be used for purposes of performing eligible 

activities with respect to public housing as may be provided under the 

contract.

    (3) Responsibilities of PHA. If HUD provides direct funding to a RMC 

under paragraph (h)(1) of this section, the PHA is not responsible for 

the actions of the RMC.

    (i) Prohibited activities. A HA may not contract for assumption by 

the resident management corporation of the HA's underlying 

responsibilities to HUD under the ACC.

    (j) Bonding, insurance, and licensing--(1) Bonding and insurance. 

Before assuming any management responsibility under its contract, the 

RMC must provide fidelity bonding and insurance, or equivalent 

protection that is adequate (as determined by HUD and the PHA) to 

protect HUD and the PHA against loss, theft, embezzlement, or fraudulent 

acts on the part of the RMC or its employees.

    (2) Licensing and other local requirements. An RMC must be in 

compliance with any local licensing, or other local requirement, 

governing the qualifications or operations of a property manager.

    (k) Waiver of HUD requirements. Upon the joint request of a resident 

management corporation and the HA, HUD may waive any requirement that 

HUD has established and that is not required by law, if HUD determines, 

after consultation with the resident management corporation and the HA, 

that the requirement unnecessarily increases the costs to the project or 

restricts the income of the project; and that the waiver would be 

consistent with the management contract and any applicable collective 

bargaining agreement. Any waiver granted to a resident management 

corporation under this section will apply as well to the HA to the 

extent the waiver affects the HA's remaining responsibilities relating 

to the resident management corporation's project.

    (l) Monitoring of RMC performance. The HA must review periodically 

(but not less than annually) the management corporation's performance to 

ensure that it complies with all applicable requirements and meets 

agreed-upon standards of performance. (The method of review and criteria 

used to judge performance should be specified in the management 

contract.)



[59 FR 43636, Aug. 24, 1994, as amended at 65 FR 42515, July 10, 2000]