Phas monica hawkins

Public Housing Assessment System

PHAS Interim Rule

Overview and Key Points

October 24, 2011

1 Real Estate Assessment Center Version 2.0 PHAS Interim Rule

Interim PHAS: Four Indicators ·40

points ·25

points Physical

Condition Financial Condition

Capital Fund Program

Management Operations

·10 points

·25 points


Interim PHAS: Global Changes

The Resident Service and Satisfaction Indicator was removed

Substandard Performers are not designated as Troubled PHAs

Interim PHAS scores only the public housing program— financial assessments will not be entity-wide

Mixed-finance projects will not receive financial or management scores; they will receive a physical score


Interim PHAS Data Sources

Self Certifications are eliminated.

Indicators will be measured using data from:

Financial Assessment Sub System (FASS)

Physical Assessment Sub System (PASS) (from Uniform Physical Condition Standards (UPCS)

inspections)

The electronic Line of Credit Control System (eLOCCS)

PIH Information Center (PIC)


Physical Condition Indicator Changes

Points increased from 30 to 40

Exigent Health and Safety violations may now be corrected, remedied or abated by a PHA Physical Condition and Neighborhood Environment adjustment

moved to Management Operations Indicator Technical review requests due 30 days after the date the inspection report is released Database adjustment requests due 45 days after the date the inspection report is released

3-2-1 Incentive for Physical Inspection Frequency

Baseline inspections of all projects will begin for PHAs with FYE March 31, 2011


YEAR(S)

2

3

UPCS Inspection Frequency PHAs with less than 250 units

(Frequency of PHAS based upon PHAS score)

High performer PHAS score: ≥90 (and not Capital Fund Troubled)

PHAS and UPCS Inspections every 3rd year

Standard & Substandard PHAS score: 60-89 PHAS and UPCS Inspections every 2nd year

1


Troubled PHAS score <60 or Capital Fund Troubled PHAS and UPCS Inspections every year

UPCS Inspection Frequency PHAs with 250 units or more

(Frequency based upon the project PASS score)

YEAR(S)

3

2

1 1 Troubled: PHAS score <60 or Capital Fund Troubled

UPCS Inspections of all projects every year

Project score 80 but less than 90 UPCS project Inspection every 2nd year

Project score ≥90 UPCS project Inspection every 3rd year

Project score <80 UPCS project Inspection every year


Financial Indicator Changes

Points decreased from 30 to 25

Three sub-indicators

Quick Ratio (QR) Months Expendable

Net Asset Ratio (MENAR)

Debt Service Coverage Ratio

(DSCR)

Measures liquidity Measures adequacy

of reserves Measures capacity

to cover debt

12 points 11 points 2 points

High Liquidity Adjustment discontinued 8

Real Estate Assessment Center Version 2.0 PHAS Interim Rule

Management Operations Indicator Changes

Points decreased from 30 to 25

Three sub-indicators

Occupancy Tenant Accounts Receivable (TAR)

Accounts Payable (AP) [New]

Includes allowable vacancies

Amount of tenant accounts receivable

against tenant charges

Amount of money owed to vendors

16 points 5 points 4 points 12

Real Estate Assessment Center Version 2.0 PHAS Interim Rule

Physical Condition Neighborhood Environment Projects at least 28 years old based on weighted DOFA data

Projects in census tracts in which at least 40% of families have an

income below poverty rate

1 point 1 point

Physical Condition and Neighborhood Environment (PCNE) adjustments

Management Operations Indicator Changes (continued)

PCNE is automatically calculated using information from PIC and added at the project level before computing the weighted average

MASS score

Real Estate Assessment Center

Version 2.0

1 3 PHAS Interim Rule

PHAS Status Designation Composite PHAS Score

Individual Indicator Score

High Performer Overall PHAS score of 90% or higher

At least 60% of total points available in PASS(24), MASS(15), FASS(15) and 50%

of the total points for CFP(5)

Standard Performer

Overall PHAS score of at least 60%

Not less than 60% of total points available in PASS(24), MASS(15),

FASS(15) and 50% of the total points for CFP(5)

Substandard Performer

Overall PHAS score of at least 60%

Less than 60% in one or more of the PASS, FASS, or MASS indicators

Troubled Less than 60% of the

overall PHAS score ---

Capital Fund Program (CFP)

Troubled ---

Less than 50% on CFP indicator

PHAS Designation Status (24 CFR 902.11)


Designations & Assessments Small PHAs

High Performer

Standard Performer

Substandard Performer

Troubled Capital Fund Program Troubled

Receives PHAS assessment: Every 3 years Every 2 years Every 2 years Every year Every year

Large PHAs

Standard Substandard Troubled High Performer Performer

Performer

Receives PHAS Every Every Every Every assessment: year year year year

Capital Fund Program Troubled

Every year

PASS inspections ≥90 80-89 ≤79 (Based on

Every 3 Every 2 Every individual project Every 2 years*

scores) years* years* year**

Every year**

* Based on individual project scores, the projects will be inspected according to the 3-2-1 rule ** Based on PHAS score designations, ALL projects in the PHA will be inspected every year


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Phas monica hawkins