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Terry Provance

Managing PHAS. Terry Provance. Managing PHAS. As a result of attending this session, you will: Understand the theory behind PHAS Identify PHAS indicators and how they are measured and scored Understand the new PHAS as proposed Begin to be able to use these assessments as a management tool.

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Terry Provance

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  1. Managing PHAS Terry Provance

  2. Managing PHAS • As a result of attending this session, you will: • Understand the theory behind PHAS • Identify PHAS indicators and how they are measured and scored • Understand the new PHAS as proposed • Begin to be able to use these assessments as a management tool

  3. Introduction • PHAS was designed to be system of accountability to assist HUD in monitoring and evaluating public housing • Defines acceptable standards for key areas • PHAs should use PHAS as a management tool • Don’t wait for a score from HUD!

  4. Introduction • We’ll describe how PHAS should be applied to the asset management projects (AMPs) • AMPS will become the new PHAS measurement focus • We’ll be discussing the new project-based PHAS

  5. PHAS • Four indicators: • Physical condition • Financial condition • Management operations • Resident service and satisfaction

  6. Four Indicators • Physical condition 30 points • Financial condition 30 points • Management operations 30 points • Resident service & satisfaction 10 points

  7. PHAS Scoring • A PHA’s overall PHAS grade will place it in one of the following categories: • High performer 90% to 100% • Standard performer 60% to 89% • Troubled performer 0% to 59%

  8. Mandatory Requirements • Many of the current PHAS indicators are statutory • Vacancy rate • Capital fund obligation and expenditure • Rent collection • Utility consumption • Unit turnaround time…

  9. Mandatory Requirements • PHAS indicators which are statutory: • Work orders • Inspections of units and systems • Screening, eviction, and anti-crime strategies • Economic self-sufficiency • Acceptable basic housing conditions • Other factors as deemed by HUD

  10. PHAS Indicator #1: Physical Condition

  11. Description & Purpose • For HUD to ensure that all PHAs provide housing that is: • Decent • Safe • Sanitary • In good repair

  12. The Condition of Properties • HUD’s intent is to determine condition of PHA’s housing stock • HUD assigns score • UPCS software has all PHA addresses • Physical condition measured numerically • Objective and consistent • For all property types and configurations

  13. What is Inspected • Inspector inspects: • Site Always 100% • Building Exteriors Sampled • Building Systems Sampled • Common Areas Sampled • Units Sampled

  14. How Inspectors Inspect • HUD-contracted inspectors use hand-held computers with PASS software from HUD • Random sample generated • Software starts with a perfect score of 100 • Deficiencies carry point deductions • Health & safety deficiencies biggest deductions

  15. Indicator #2: Financial Condition

  16. Description & Purpose • Measures financial condition of PHA • Does the PHA have, and is it capable of managing, financial resources to support a housing program

  17. Assessment • Six financial condition components: • Current ratio • Number of months expendable fund balance • Tenant receivable outstanding • Occupancy loss • Expense mgmt/utility consumption • Net income or loss

  18. Indicator #3:Management Operations

  19. Assessment • Vacant unit turnaround time • Capital Fund • Work orders • Inspection of units and systems • Security • Economic self sufficiency

  20. Reporting Requirements • PHA must certify on HUD form-50072 on performance under each of the management indicators • This is the indicator which will change from self-certification to onsite management review • Form 5834 will be used

  21. PHAS Indicator #4Resident Service & Satisfaction • 10 points maximum • 5 points implementation and follow-up • 5 points for the survey results

  22. Project-Based PHAS

  23. Project-Based PHAS • PHAS is being revised to be project-based • The AMPs will be the new measurement focus • Each AMP will receive its own PHAS score • The AMPs are the PHA’s groupings of properties for project-based accounting, budgeting, and management

  24. The New PHAS • 9/6/06 Fed Register Guidance Notice on Asset Mgt - HUD would revise PHAS to support the transition to asset mgt • PHAs to be measured at AMP level • March, 2007 Asset Management e-Newsletter - HUD discussed conforming PHAS to multifamily housing standards

  25. HUD Proposed Changes • 03/2007 Asset Mgt e-Newsletter - HUD to: • Conduct and track PIH-REAC physical inspections by AMP • Modify electronic submission of the FDS to support collection of AMP-level data • Replace PHA’s current MASS submission with on-site reviews (similar to multifamily)

  26. HUD Proposed Changes • 03/2007 Asset Mgt e-Newsletter - HUD to: • Establish new “integrated” assessment based on newly developed PHAS indicators • Simplify current scoring methodologies • Significantly reduce PHA submission requirements

  27. HUD Proposed Changes • On-site management reviews of AMPs (similar to multifamily) • Would replace the subject-specific reviews • Will eliminate need for PHAS confirmatory reviews (no PHA certifications)

  28. HUD Proposed Changes • Note that fee income (property management fees, bookkeeping fees, asset management fees, capital fund management fees, etc) is not considered “program income” • No review of the COCC • Not subject to federal review! • Will streamline PHA compliance reviews

  29. HUD Proposed Changes • In Federal Register, February 8, 2008, HUD published for public comment it’s proposed “Management Review for Public Housing Projects” form HUD-5834 • Form to be used by HUD (or contractor) review team

  30. The New PHAS • PIH 2008-18(HA) published March 27, 2008 • HUD is moving forward on project-based PHAS • HUD will issue a proposed PHAS rule in Spring of 2008 – including four scoring notices • Scoring will be in the proposed rule

  31. Notice PIH 2008-18 • The new PHAS indicators will assess, for each AMP: • Physical condition • Financial condition • Management assessment • Capital fund obligation/expenditure

  32. Notice PIH 2008-18 • Notice 2008-18 is mostly FAQs • For first year, will PHA continue to be scored under the old (current) PHAS? • No – the last PHAs to get a score under the current PHAS will be those with FYE March 31, 2008

  33. Notice PIH 2008-18 • Physical condition • No significant changes are anticipated in the protocol for REAC inspections • If a PHA scored 80 or above in the year immediately before the transition year, the PHA’s AMPs won’t get inspected in the transition year • If projects were combined into different AMPs, HUD will use a unit-weighted score

  34. Notice PIH 2008-18 • Financial condition • Although PHAs have to submit the project-based FDS, financial condition will not be scored by project under the transitional PHAS • Only physical condition of each project will be scored

  35. Notice PIH 2008-18 • Financial condition • Financial condition of each AMP will be measured • HUD will issue a final version of the Financial Data Schedule (FDS) • Probably financial liquidity (current ratio) will be assessed • COCC and non-public housing won’t be included in the financial assessment

  36. Notice PIH 2008-18 • Management assessment • HUD will attempt to conduct at least one onsite management review at all PHAs in the transition year, in order to expose PHAs to the new system • Management reviews will not be scored in the transition year

  37. Notice PIH 2008-18 • Management assessment • Onsite management review will utilize HUD-5834 • Form based on HUD-9834 for multifamily • HUD says it will “delineate” between performance, compliance and process • Performance will be what’s scored

  38. Goals of Review Form • To consolidate reviews of performance and compliance in a flexible manner • Allows reviewers to tailor on-site work to the needs of the project and HUD guidance • HUD-5834 contains information related to both performance and compliance

  39. Performance vs. Compliance • Performance items are those that most directly relate to how well the project is operated (e.g. rate of rent collection) • Compliance items are related to project observance of program regulations (e.g. did the staff calculate rent in accordance with HUD rules)

  40. On-Site Reviews • Management review form (5834) will provide the framework for the on-site reviews • Basic review will be high-level, looking at key performance & compliance indicators • More detailed checklists can be incorporated into the review as needed

  41. Notice PIH 2008-18 • Management assessment • Performance will be scored • HUD is “examining” primary vs. secondary performance measures • Primary = indicator of high level financial, physical, or management performance • Secondary = diagnoses potential problems in these areas

  42. Notice PIH 2008-18 • Management assessment • Performance will be scored • HUD states that a project’s vacancy rate is a primary performance indicator, while unit turnaround is a secondary measure

  43. Form HUD-5834 • Let’s look at this form more closely, since it will be an important assessment tool for project-based management under PHAS • 7 sub-indicators

  44. Form HUD-5834Review for Projects • General appearance and security • Appearance and market appeal • Entrance, building exterior, paved surfaces, fencing, porches, trash, landscaping, graffiti, public spaces and amenities windows, debris, units…

  45. Form HUD-5834Review for Projects • General appearance and security • Security • Crime statistics, law enforcement certification, discussions with law enforcement, observations, discussions with resident, policies for screening and evicting for history of drug-related criminal activity, alcohol abuse, and criminal

  46. Form HUD-5834Review for Projects • Follow-up and monitoring of project inspections • Exigent H&S deficiencies • Lead-based paint inspection deficiencies…

  47. Form HUD-5834Review for Projects • Maintenance • Unit inspections • Work orders • Average completion time • Progress in preceding three years

  48. Form HUD-5834Review for Projects • Maintenance • Preventive maintenance • Systems applicable to property and in preventive maintenance plan: • HVAC, security, fire safety, roof, gutters & downspouts, intercoms & doorbells, accessibility, elevators, mechanical, boilers, emergency generators, other

  49. Form HUD-5834Review for Projects • Maintenance • Energy conservation/utility consumption • Energy audit within past 5 years? • Energy audit less than 1 year old? • Audit contains cost-effective recommendations? Implemented? On schedule?

  50. Form HUD-5834Review for Projects • Modernization • Physical needs assessment completed? • Updated in last 5 years? • Estimating the useful life remaining and modernization cost for all major building systems?

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