[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: 24CFR968.325]



[Page 522-525]

 

                 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.  968.325  Annual submission of activities and expenditures.



    (a) General. The Annual Submission is a collective term for all 

documents which the PHA must submit to HUD for review and approval 

before accessing the current FFY grant funds. Such documents include the 

Annual Statement, Work Statements for years two through five of the 

Five-Year Action Plan, local government statement, PHA Board Resolution, 

materials demonstrating the partnership process and any other documents 

as prescribed by HUD. For planning purposes, a PHA may use either the 

amount of funding received in the current year or the actual formula 

amount provided in HUD's notification under Sec.  968.310(b)(1) in 

developing the Five-Year Action Plan for presentation at the resident 

meetings and public hearing. Work Statements cover the second through 

the fifth years of the Five-Year Action Plan and set forth the major 

work categories and costs by development or PHA-wide which the PHA 

intends to undertake in each year of years two through five. In 

preparing these Work Statements, the PHA shall assume that the current 

FFY formula amount will be available in each year of years two through 

five, as discussed in Sec.  968.315(d)(5)(i). The Work Statements for 

all five years will be at the same level of detail so that the PHA may 

interchange work items. A PHA may budget up to 8% of its annual grant in 

a contingency account for cost overruns.

    (b) Submission. After receiving HUD notification of the formula 

amount and estimating how much funding will be available from other 

sources, such as State and local governments, and determining its 

activities and costs based on the current FFY formula amount, the PHA 

shall submit its Annual Submission.

    (c) Acceptance for review. (1) Upon receipt of an Annual Submission 

from a PHA, HUD shall determine whether:

    (i) The Annual Submission contains each of the required components; 

and

    (ii) The PHA has submitted any additional information or assurances 

required as a result of HUD monitoring, findings of inadequate PHA 

performance, audit findings, and civil rights compliance findings.

    (2) If the PHA has submitted a complete Annual Submission and all 

required information and assurances, HUD will accept the submission for 

review, as of the date of receipt. If the



[[Page 523]]



PHA has not submitted all required material, HUD will promptly notify 

the PHA that it has disapproved the submission, indicating the reasons 

for disapproval, the modifications required to qualify the Annual 

Submission for HUD review, and the date by which such modifications must 

be received by HUD.

    (d) Resident and local government participation. A PHA is required 

to develop its Annual Submission, including any proposed amendments to 

its Comprehensive Plan as provided in Sec.  968.315 (b) and (c), in 

consultation with officials of the appropriate governing body (or, in 

the case of a PHA with developments in multiple jurisdictions, in 

consultation with the CEO of each such jurisdiction or with an advisory 

group representative of all jurisdictions) and with residents and duly 

elected resident councils of the developments covered by the 

Comprehensive Plan, as follows:

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

advance meeting for residents under paragraph (d)(2) of this section, 

and the public hearing under paragraph (d)(3) of this section, the PHA 

shall annually provide public notice of the advance meeting and the 

public hearing in a manner determined by the PHA and which ensures 

notice to all duly elected resident councils;

    (2) Advance Meeting with residents. The PHA shall at least annually 

hold a meeting open to all residents and duly elected resident councils. 

The advance meeting shall be held within a reasonable amount of time 

before the public hearing under paragraph (d)(3) of this section. The 

PHA will provide residents with information concerning the contents of 

the PHA's Five-Year Action Plan (and any proposed amendments to the 

PHA's Comprehensive Plan to be submitted with the Annual Submission) so 

that residents can comment adequately at the public hearing on the 

contents of the Five-Year Action Plan and any proposed amendments to the 

Comprehensive Plan.

    (3) Public hearing. The PHA shall annually hold at least one public 

hearing, and any appropriate number of additional hearings, to present 

information on the Annual Submission and the status of prior approved 

programs. The public hearing shall provide ample opportunity for 

residents of the developments covered by the Comprehensive Plan, 

officials of the appropriate governing body, 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 in developing its 

Five-Year Action Plan, or any amendments to its Comprehensive Plan.

    (4) Expedited scheduling. PHAs are encouraged to hold the meeting 

with residents and duly elected resident councils under paragraph (d)(2) 

of this section, and the public hearing under paragraph (d)(3) of this 

section between July 1 (i.e., after the end of the program year--June 

30) and September 30, using the formula amount for the current FFY. If a 

PHA elects to use such expedited scheduling, it must explain at the 

meeting with residents and duly elected resident councils and at the 

public hearing that the current FFY amount is not the actual grant 

amount for the subsequent year, but is rather the amount used for 

planning purposes. It must also explain that the Five-Year Action Plan 

will be adjusted when HUD provides notification of the actual formula 

amount, and explain which major work categories at which developments 

may be added or deleted to adjust for the actual formula amount and that 

any added work categories/developments will come from the Comprehensive 

Plan.

    (e) Contents of Annual Submission. The Annual Statement for each 

year must include, for each development or on a PHA-wide basis for 

management improvements or certain physical improvements for which work 

is to be funded out of that year's grant:

    (1) A list of development accounts with an identification of major 

work categories;

    (2) The cost for each major work category, as well as a summary of 

cost by development account;

    (3) The PHA-wide or development-specific management improvements to 

be undertaken during the year;



[[Page 524]]



    (4) For each development and for any management improvements not 

covered by a HUD-approved memorandum of agreement or management 

improvement plan, a schedule for the use of current year funds, 

including target dates for the obligation and expenditure of the funds 

(see Sec.  968.125);

    (5) A summary description of the actions to be taken with non-CGP 

funds to meet physical and management improvement needs which have been 

identified by a PHA in its needs assessments;

    (6) Any documentation that HUD needs to assist it in carrying out 

its responsibilities under the National Environmental Policy Act and 

other related authorities in accordance with Sec.  968.110(c) and (d);

    (7) Other information, as specified by HUD and as approved by OMB 

under the Paperwork Reduction Act; and

    (8) A PHA resolution approving the Annual Submission or any 

amendments thereto, as set forth in Sec.  968.315(e)(7).

    (f) Additional submissions with Annual Submission. A PHA shall 

submit with the Annual Submission any amendments to the Comprehensive 

Plan, as set forth in Sec.  968.315(f), and such additional information 

as may be prescribed by HUD. HUD shall review any proposed amendments to 

the Comprehensive Plan in accordance with review standards under Sec.  

968.320(b).

    (g) HUD review and approval of Annual Submission--(1) General. An 

Annual Submission accepted in accordance with paragraph (a) of this 

section shall be considered to be approved, unless HUD notifies the PHA 

in writing, postmarked within 75 calendar days of the date that HUD 

receives the Annual Submission for review under paragraph (c) of this 

section, that HUD has disapproved the Annual Submission, indicating the 

reasons for disapproval, the modifications required to make the Annual 

Submission approvable, and the date by which such modifications must be 

received by HUD. HUD may request additional information (e.g., for 

eligibility determinations) to facilitate review and approval of the 

Annual Submission during the 75-day review period. HUD shall not 

disapprove an Annual Submission on the basis that the Department cannot 

complete its review under this section within the 75-day deadline;

    (2) Bases for disapproval for Annual Submission. HUD shall approve 

the Annual Submission, except where:

    (i) Plainly inconsistent with Comprehensive Plan. HUD determines 

that the activities and expenditures proposed in the Annual Submission 

are plainly inconsistent with the PHA's approved Comprehensive Plan;

    (ii) Contradiction of PHA resolution. HUD has evidence which tends 

to challenge, in a substantial manner, the certifications contained in 

the board resolution, as required by Sec.  968.315(e)(7).

    (h) Amendments to Annual Statement. The PHA shall advise HUD of all 

changes to the PHA's approved Annual Statement in its Performance and 

Evaluation Report submitted under Sec.  968.330. The PHA shall submit to 

HUD for prior approval any additional work categories (except for 

emergency work) which are not within the PHA's approved Five-Year Action 

Plan.

    (i) Failure to obligate formula funds and extension of time for 

performance--(1) Failure to obligate formula funds. If the PHA fails to 

obligate formula funds within the approved or extended time period, the 

PHA may be subject to an alternative management strategy which may 

involve third-party oversight or administration of the modernization 

function. HUD would only require such action after a corrective action 

order had been issued under Sec.  968.335 and the PHA failed to comply 

with the order. HUD could then require an alternative management 

strategy in a corrective action order. A PHA may appeal in writing the 

corrective action order requiring an alternative management strategy 

within 30 calendar days of that order. HUD Headquarters shall render a 

written decision on a PHA's appeal within 30 calendar days of the date 

of its receipt of the PHA's appeal.

    (2) Extension of time for performance. A PHA may extend the target 

dates for fund obligation and expenditure in the approved Annual 

Statement whenever any delay outside the PHA's control occurs, as 

specified by HUD, and the extension is made in a timely manner. Such 

revision is subject to HUD review under Sec.  968.345(a)(2) as to the 

PHA's



[[Page 525]]



continuing capacity. HUD shall not review as to a PHA's continuing 

capacity any revisions to a PHA's Comprehensive Plan and related 

statements where the basis for the revision is that HUD has not provided 

the amount of assistance set forth in the Annual Submission, or has not 

provided such assistance in a timely manner.

    (j) ACC Amendment. After HUD approval of each year's Annual 

Submission, HUD and the PHA shall enter into an ACC amendment in order 

for the PHA to draw down modernization funds. The ACC amendment shall 

require low-income use of housing for not less than 20 years from the 

date of the ACC amendment (subject to sale of homeownership units in 

accordance with the terms of the ACC).

    (k) Declaration of trust. As HUD may require, the PHA shall execute 

and file for record a Declaration of Trust as provided under the ACC to 

protect the rights and interests of HUD throughout the 20-year period 

during which the PHA is obligated to operate its developments in 

accordance with the ACC, the Act, and HUD regulations and requirements.



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

2577-0157)



[57 FR 5575, Feb. 14, 1992, as amended at 59 FR 44841, Aug. 30, 1994. 

Redesignated and amended at 61 FR 8748, Mar. 5, 1996]