[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: 24CFR968.315]



[Page 515-521]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

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

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 968_PUBLIC HOUSING MODERNIZATION--Table of Contents

 

Subpart C_Comprehensive Grant Program (for PHAs That Own or Operate 250 

                      or More Public Housing Units)

 

Sec.  968.315  Comprehensive Plan (including five-year action plan).



    (a) Submission. As soon as possible after modernization funds first 

become available for allocation under this subpart, HUD shall notify 

PHAs in writing of their formula amount. For planning purposes, PHAs may 

use the amount they received under CGP in the prior year in developing 

their comprehensive plan, or they may wait for the annual HUD 

notification of formula amount under Sec.  968.310(b)(1).

    (b)(1) Resident participation. A PHA is required to develop, 

implement, monitor and annually amend portions of its comprehensive plan 

in consultation with residents of the developments covered by the 

comprehensive plan. In addition, the PHA shall consult with resident 

management corporations (RMCs) to the extent that an RMC manages a 

development covered by the comprehensive plan. The PHA, in partnership 

with the residents, must develop and implement a process for resident 

participation that ensures that residents are involved in a meaningful 

way in all phases of the CGP. Such involvement shall involve 

implementing the



[[Page 516]]



Partnership Process as a critical element of the CGP.

    (2) Establishment of Partnership Process. The PHA, in partnership 

with the residents of the developments covered by the plan (and which 

may include resident leaders, resident councils, resident advisory 

councils/boards, and RMCs) must establish a Partnership Process to 

develop and implement the goals, needs, strategies and priorities 

identified in the comprehensive plan. After residents have organized to 

participate in the CGP, they may decide to establish a volunteer 

advisory group of experts in various professions to assist them in the 

CGP Partnership Process. The Partnership Process shall be designed to 

achieve the following:

    (i) To ensure that residents are fully briefed and involved in 

developing the content of, and monitoring the implementation of, the 

comprehensive plan including, but not limited to, the physical and 

management needs assessments, viability analysis, Five-Year Action Plan, 

and Annual Statement. If necessary, the PHA shall develop and implement 

capacity building strategies to ensure meaningful resident participation 

in CGP. Such technical assistance efforts for residents are eligible 

management improvement costs under CGP;

    (ii) To enable residents to participate, on a PHA-wide or area-wide 

basis, in ongoing discussions of the comprehensive plan and strategies 

for its implementation, and in all meetings necessary to ensure 

meaningful participation.

    (3) Public notice. Within a reasonable amount of time before the 

advance meeting for residents under paragraph (b)(4) of this section and 

the public hearing under paragraph (b)(5) of this section, the PHA shall 

provide public notice of the advance meeting and the public hearing in a 

manner determined by the PHA that ensures notice to all duly elected 

resident councils.

    (4) Advance meeting for residents. The PHA shall hold, within a 

reasonable amount of time before the public hearing under paragraph 

(b)(5) of this section, a meeting for residents and duly elected 

resident councils at which the PHA shall explain the components of the 

comprehensive plan. The meeting shall be open to all residents and duly 

elected resident councils.

    (5) Public hearing. The PHA shall hold at least one public hearing, 

and any appropriate number of additional hearings, to present 

information on the comprehensive plan/annual submission and the status 

of prior approval programs. The public hearing shall provide ample 

opportunity for residents, local government officials, and other 

interested parties to express their priorities and concerns. The PHA 

shall give full consideration to the comments and concerns of residents, 

local government officials, and other interested parties.

    (c) Local government participation. A PHA shall consult with and 

provide information to appropriate local government officials with 

respect to the development of the comprehensive plan to ensure that 

there is coordination between the actions taken under the consolidated 

plan (see 24 CFR part 91) for project and neighborhood improvements 

where public housing units are located or proposed for construction and/

or modernization and improvement and to coordinate meeting public and 

human service needs of the public and assisted housing projects and 

their residents. In the case of a PHA with developments in multiple 

jurisdictions, the PHA may meet this requirement by consulting with an 

advisory group representative of all the jurisdictions. At a minimum, 

such consultation must include providing such officials with:

    (1) Advance written notice of the public hearing required under 

paragraph (b)(5) of this section;

    (2) A copy of the summary of total preliminary estimated costs to 

address physical needs by each development and management/operations 

needs PHA-wide and a specific description of the PHA's process for 

maximizing the level of participation by residents and a summary of the 

general issues raised on the plan by residents and others during the 

public comment process and the PHA's response to the general issues. PHA 

records, such as minutes of planning meetings or resident surveys, shall 

be maintained in the PHA's files and made available to residents, 

resident organizations, and other interested parties upon request; and



[[Page 517]]



    (3) An opportunity to express their priorities and concerns to 

ensure due consideration in the PHA's planning process;

    (d) Participation in coordinating entities. To the extent that 

coordinating entities are set up to plan and implement the consolidated 

plans (under 24 CFR part 91), the PHA shall participate in these 

entities to ensure coordination with broader community development 

strategies.

    (e) Contents of comprehensive plan. The comprehensive plan shall 

identify all of the physical and management improvements needed for a 

PHA and all of its developments, and that represent needs eligible for 

funding under Sec.  968.112. The plan also shall include preliminary 

estimates of the total cost of these improvements. The plan shall set 

forth general strategies for addressing the identified needs, and 

highlight any special strategies, such as major redesign or partial 

demolition of a development, that are necessary to ensure the long-term 

physical and social viability of the development. Where long-term 

physical and social viability of the development is dependent upon 

revitalization of the surrounding neighborhood in the provision of or 

coordination of public services, or the consolidation or coordination of 

drug prevention and other human service initiatives, the PHA shall 

identify these needs and strategies. In addition, the PHA shall identify 

the funds or other resources in the consolidated plan that are to be 

used to help address these needs and strategies and the activities in 

the comprehensive plan that strengthen the consolidated plan. Each 

comprehensive plan shall contain the following elements:

    (1) Executive summary. A PHA shall include as part of its 

comprehensive plan an executive summary to facilitate review and 

comprehension by development residents and by the public. The executive 

summary shall include the following:

    (i) A summary of total preliminary estimated costs to address 

physical needs by each development and PHA-wide physical and management 

needs; and

    (ii) A specific description of the PHA's process for maximizing the 

level of participation by residents during the development, 

implementation and monitoring of the Comprehensive Plan, a summary of 

the general issues raised on the plan by residents and others during the 

public comment process and the PHA's response to the general issues. PHA 

records, such as minutes of planning meetings or resident surveys, shall 

be maintained in the PHA's files and made available to residents, duly 

elected resident councils, and other interested parties, upon request;

    (2) Physical needs assessment--(i) Requirements. The physical needs 

assessment identifies all of the work that a PHA would need to undertake 

to bring each of its developments up to the modernization and energy 

conservation standards, as required by the Act, to comply with the lead-

based paint requirements in part 35, subparts A, B, L, and R of this 

title, and to comply with other program requirements under Sec.  

968.110. The physical needs assessment is completed without regard to 

the availability of funds, and shall include the following:

    (A) A brief summary of the physical improvements necessary to bring 

each such development to a level at least equal to applicable HUD 

standards with respect to modernization standards, energy conservation 

and life-cycle cost effective performance standards, lead-based paint 

testing and abatement standards. This summary must indicate the relative 

urgency of need. If the PHA has no physical improvement needs at a 

particular development at the time it completes its comprehensive plan, 

it must so indicate. Similarly, if the PHA intends to demolish, 

partially demolish, convert, or dispose of a development (or units 

within a development) it must so indicate in the summary of physical 

improvements;

    (B) The replacement needs of equipment systems and structural 

elements that will be required to be met (assuming routine and timely 

maintenance is performed) during the period covered by the action plan;

    (C) A preliminary estimate of the cost to complete the physical 

work;

    (D) Any physical disparities between buildings occupied 

predominantly by one racial or ethnic group and, in such



[[Page 518]]



cases, the physical improvements required to correct the conditions; and

    (E) In addition, with respect to vacant or non-homebuyer occupied 

Turnkey III units, the estimated number of units that the PHA is 

proposing for substantial rehabilitation and subsequent sale, in 

accordance with Sec.  968.112(d)(3).

    (ii) Source of data. The PHA shall identify in its needs assessment 

the sources from which it derived data to develop the physical needs 

assessment under this paragraph (e)(2) and shall retain such source 

documents in its files;

    (3) Management needs assessment--(i) Requirements. The plan shall 

include a comprehensive assessment of the improvements needed to upgrade 

the management and operation of the PHA and of each viable development 

so decent, safe, and sanitary living conditions will be provided. The 

management needs assessment shall include the following, with the 

relative urgency of need indicated:

    (A) An identification of the most current needs related to the 

following areas (to the extent that any of these needs is addressed in a 

HUD-approved memorandum of agreement or improvement plan, the PHA may 

simply include a cross-reference to these documents):

    (1) The management, financial, and accounting control systems of the 

PHA;

    (2) The adequacy and qualifications of personnel employed by the PHA 

in its management and operation, for each significant category of 

employment;

    (3) The adequacy and efficacy of:

    (i) Resident programs and services;

    (ii) Resident and development security;

    (iii) Resident selection and eviction;

    (iv) Occupancy;

    (v) Maintenance;

    (vi) Resident management and resident capacity building programs;

    (vii) Resident opportunities for employment and business development 

and other self-sufficiency opportunities for residents; and

    (viii) Homeownership opportunities for residents;

    (B) Any additional deficiencies identified through PHMAP, audits and 

HUD monitoring reviews that are not addressed under paragraph 

(e)(3)(i)(A) of this section. To the extent that any of these is 

addressed in a HUD-approved memorandum of agreement or improvement plan, 

the PHA may include a cross-reference to these documents;

    (C) Any other management and operations needs that the PHA wants to 

address at the PHA-wide or development level; and

    (D) A PHA-wide preliminary cost estimate for addressing all the 

needs identified in the management needs assessment, without regard to 

the availability of funds;

    (ii) Sources of funds. The PHA shall identify in its needs 

assessment the sources from which it derived data to develop the 

management needs assessment under this paragraph (e)(3) and shall retain 

such source documents in its files;

    (4) Demonstration of long-term physical and social viability. (i) 

General. The plan shall include, on a development-by-development basis, 

an analysis of whether completion of the improvements and replacements 

identified under paragraphs (e)(2) and (e)(3) of this section will 

reasonably ensure the long-term physical and social viability, including 

achieving structural/system soundness and full occupancy, of the 

development at a reasonable cost. For cost reasonableness, the PHA shall 

determine whether the unfunded hard costs satisfy the definition of 

``reasonable cost.'' Where the PHA wishes to fund a development, for 

other than emergencies, where hard costs exceed that reasonable cost, 

the PHA shall submit written justification to the Field Office. If the 

Field Office agrees with the PHA's request, the Field Office shall 

forward its recommendation to Headquarters for final decision. Where the 

estimated per unit unfunded hard cost is equal to or less than the per 

unit TDC for the smallest bedroom size at the development, no further 

computation of the TDC limit is required. The PHA shall keep 

documentation in its files to support all cost determinations. The Field 

Office will review cost reasonableness as part of its review of the 

annual submission and the performance and evaluation report. As 

necessary, HUD will review the PHA's



[[Page 519]]



documentation in support of its cost reasonableness, taking into account 

broader efforts to revitalize the neighborhoods in which the development 

is located;

    (ii) Determination of non-viability. Where a PHA's analysis of a 

development under paragraph (e) of this section establishes that 

completion of the identified improvements and replacements will not 

result in the long-term physical and social viability of the development 

at a reasonable cost, the PHA shall not expend CGP funds for the 

development, except for emergencies and essential non-routine 

maintenance necessary to maintain habitability until residents can be 

relocated. The PHA shall specify in its comprehensive plan the actions 

it proposes to take with respect to the non-viable development (e.g., 

demolition or disposition under 24 CFR part 970);

    (5) Five-year action plan. (i) General. The comprehensive plan shall 

include a rolling five-year action plan to carry out the improvements 

and replacements (or a portion thereof) identified under paragraphs 

(e)(2) and (e)(3) of this section. In developing its five-year action 

plan, the PHA shall assume that the current year funding or formula 

amount will be available for each year of its five-year action plan, 

whichever the PHA is using for planning purposes, plus the PHA's 

estimate of the funds that will be available from other sources, such as 

state and local governments. All activities specified in a PHA's five-

year action plan are contingent upon the availability of funds;

    (ii) Requirements. Under the action plan, a PHA must indicate how it 

intends to use the funds available to it under the CGP to address, over 

a five-year period, the deficiencies (or a portion of the deficiencies) 

identified in its physical and management needs assessments, as follows:

    (A) Physical condition. With respect to the physical condition of a 

PHA's developments, a PHA must indicate in its action plan how it 

intends to address, over a five-year period, the deficiencies (or a 

portion of the deficiencies) identified in its physical needs assessment 

so as to bring each of its developments up to a level at least equal to 

the modernization and energy conservation standards. This includes 

specifying the work to be undertaken by the PHA in major work categories 

(e.g., kitchens, electrical systems, etc.); establishing priorities 

among the major work categories by development and year, based upon the 

relative urgency of need; and estimating the cost of each of the 

identified major work categories. In developing its action plan, a PHA 

shall give priority to the following:

    (1) Activities required to correct emergency conditions;

    (2) Activities required to meet statutory or other legally mandated 

requirements (e.g., compliance with a court-ordered desegregation plan 

or voluntary compliance agreement);

    (3) Activities required to meet the needs identified in the Section 

504 needs assessment within the regulatory timeframe; and

    (4) Activities required to complete lead-based paint testing and 

abatement requirements;

    (B) Management and operations. A PHA must address in its action plan 

the management and operations deficiencies (or a portion of the 

deficiencies) identified in its management needs assessment, as follows:

    (1) With respect to the management and operations needs of the PHA, 

the PHA must identify how it intends to address with CGP funds, if 

necessary, the deficiencies (or a portion thereof) identified in its 

management needs assessment, including work identified through PHMAP, 

audits, HUD monitoring reviews, and self-assessments. The action plan 

must indicate the relative urgency of need;

    (2) A preliminary PHA-wide cost estimate, by major work category.

    (iii) Procedure for maintaining current five-year action plan. The 

PHA shall maintain a current five-year action plan by annually amending 

its five-year action plan, in conjunction with the annual submission;

    (6) Local government statement. The comprehensive plan shall include 

a statement signed by the chief executive officer of the unit of general 

local government (or, in the case of a PHA with developments in multiple 

jurisdictions, from the CEO of each such jurisdiction) certifying to the 

following:



[[Page 520]]



    (i) The PHA developed the comprehensive plan/five-year action plan 

or amendments thereto in consultation with officials of the appropriate 

governing body and with development residents covered by the 

comprehensive plan/five-year action plan, in accordance with the 

requirements of paragraphs (b) and (c) of this section;

    (ii) The comprehensive plan/five-year action plan or amendments 

thereto are consistent with the appropriate governing body's assessment 

of its low income housing needs (as evidenced by its consolidated plan 

under 24 CFR part 91, if applicable), and that the appropriate governing 

body will cooperate in providing resident programs and services; and

    (iii) The PHA's proposed drug elimination activities are coordinated 

with, and supportive of, local drug elimination strategies and 

neighborhood improvement programs, if applicable; and

    (7) PHA resolution. The plan shall include a resolution, in a form 

prescribed by HUD, adopted by the PHA Board of Commissioners, and signed 

by the Board Chairman of the PHA, approving the comprehensive plan or 

any amendments.

    (f) Amendments to the comprehensive plan--(1) Extension of time for 

performance. A PHA shall have the right to amend its comprehensive plan 

(including the action plan) to extend the time for performance whenever 

HUD has not provided the amount of assistance set forth in the 

comprehensive plan or has not provided the assistance in a timely 

manner;

    (2) Amendments to needs assessments. The PHA shall amend its plan by 

revising its needs assessments whenever it proposes to carry out 

activities in its five-year action plan or annual statement that are not 

reflected in its current needs assessments (except in the case of 

emergencies). The PHA may propose an amendment to its needs assessments, 

in connection with the submission of its annual submission (see Sec.  

968.325) or at any other time. These amendments shall be reviewed by HUD 

in accordance with Sec.  968.320.

    (3) Six-year revision of comprehensive plan. Every sixth year 

following the initial year of participation, the PHA shall submit to 

HUD, with its annual submission, a complete update of its comprehensive 

plan. A PHA may elect to revise some or all parts of the comprehensive 

plan more frequently.

    (4) Annual revision of five-year action plan. Annually, the PHA 

shall submit to HUD, with its annual submission, an update of its five-

year action plan, eliminating the previous year and adding an additional 

year. The PHA shall identify changes in work categories (other than 

those included in the new fifth year) from the previous year five-year 

action plan when making this annual submission.

    (5) Required submissions. Any amendments to the comprehensive plan 

under this section must be submitted with the PHA resolution under Sec.  

968.315(e)(7).

    (g) Prerequisite for receiving assistance--(1) Prohibition of 

assistance. No financial assistance, except for emergency work to be 

funded under Sec. Sec.  968.103(b) and 968.112(a)(1)(ii), and for 

modernization needs resulting from disasters under Sec.  968.103(b), may 

be made available under this subpart unless HUD has approved a 

comprehensive plan submitted by the PHA that meets the requirements of 

this section. A PHA that has failed to obtain approval of its 

comprehensive plan by the end of the FFY shall have its formula 

allocation for that year (less any formula amounts provided to the PHA 

for emergencies) added to the subsequent year's appropriation of funds 

for grants under this part. HUD shall allocate such funds to PHAs and 

IHAs participating in the CGP in accordance with the formula under Sec.  

968.103(e) and (f) in the subsequent FFY. A PHA that elects in any FFY 

not to participate in the CGP may participate in the CGP in subsequent 

FFYs;

    (2) Requests for emergency assistance. A PHA may receive funds from 

its formula allocation to address emergency modernization needs where 

HUD has not approved a PHA's comprehensive plan. To request such 

assistance, a PHA shall submit to HUD a request for funds in such form 

as HUD may prescribe, including any documentation necessary to support 

its claim that an emergency exists. HUD shall review



[[Page 521]]



the request and supporting documentation to determine if it meets the 

definition of ``emergency work'' as set forth in Sec.  968.305.



(Approved by the Office of Management and Budget under control number 

2577-0157)



[61 FR 8744, Mar. 5, 1996, as amended at 64 FR 50229, Sept. 15, 1999]