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Federal Register / Vol. 86, No. 8 / Wednesday, January 13, 2021 / Proposed Rules shall include reasons for the reinstatement.
e Consideration of petitions and appeals. 1 Consideration of a petition or the appeal of a final overall assessment score, of a troubled performer designation, or of a petition to remove troubled performer designation.
Upon receipt of such an appeal or a petition from a PHA, HUD will evaluate the appeal and its merits for purposes of determining whether a reassessment of the PHA is warranted. HUD will review the PHAs file and the evidence submitted by the PHA to determine whether an error occurred.
2 Consideration of an appeal of refusal to remove a troubled performer designation. Upon receipt of an appeal of refusal to remove a troubled performer designation, HUD will evaluate the appeal and its merits for the purposes of determining whether a reassessment of the PHA is warranted.
The HUD staff initially evaluating an appeal of refusal to remove a troubled performer designation will not be the same HUD staff who evaluated the PHAs petition to remove the troubled performer designation. The Assistant Secretary will render the final determination of such an appeal.
f Notice and finality of decisions. 1
If HUD determines that one or more objectively verifiable and material error has occurred, HUD will undertake a new inspection of the project, adjust the PHAs score, or perform other reexamination of information, as appropriate in light of the nature of the error that occurred. A new score will be issued and an appropriate performance designation made by HUD. HUDs decision on appeal of an assessment score, issuance of a troubled performer designation, or refusal to remove a troubled performer designation will be final agency action. No reconsideration will be given by HUD of such decisions.
2 HUD will issue a written decision on all appeals and petitions made under this section.
902.111 Sanctions for troubled small rural PHAs.

The sanctions for small rural PHAs with troubled public housing programs that remain troubled as required by 902.108 will be the same as those sanctions for PHAs assessed under PHAs as described in 902.83.
902.113 Incentives for small rural PHAs high performers.

a High performer. PHAs with a weighted average score for all inspections of at least 90 percent of all available points will be considered high performers and will be eligible for
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benefits as described in 902.110b and 905.400l of this title.
b Incentives. High performer small rural PHAs under the public housing program will be eligible for the same incentives as high performer PHAs under PHAS as described in 902.71.
PART 982SECTION 8 TENANTBASED ASSISTANCE: HOUSING
CHOICE VOUCHER PROGRAM
38. The authority for 24 CFR part 982
continues to read as follows:

Authority: 42 U.S.C. 1437f and 3535d.

39. In 982.4, amend paragraph b by revising the definition of Housing quality standards HQS to read as follows:

982.4

Definitions.

b
Housing quality standards HQS.
The minimum quality standards developed by HUD in accordance with 5.703 of this title for the PBV program or the HUD approved alternative standard for the PHA under 5.703g of this title.

40. In 982.352, revise paragraph b1ivA3 to read as follows:
982.352

Eligible housing.

b
1
iv
A
3 To inspect the unit for compliance with the HQS in accordance with 982.305a and 982.405. The independent agency shall communicate the results of each such inspection to the family and the PHA.

41. Revise 982.401 to read as follows:
982.401

Housing quality standards.

As defined in 982.4, housing quality standards HQS refers to the minimum quality standards developed by HUD in accordance with 5.703 of this title for housing assisted under the HCV
program or a HUD approved alternative standard for the PHA under 5.703g.
42. In 982.405, revise paragraph a to read as follows:
982.405 PHA initial and periodic unit inspection.

a1 General Requirements. The PHA
must inspect the unit leased to a family prior to the initial term of the lease, at least biennially during assisted occupancy, and at other times as needed, to determine if the unit meets
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the HQS. See 982.305b2
concerning timing of initial inspection by the PHA.
2 Small rural PHAs. Instead of biennially, a small rural PHA as defined in 902.101 of this chapter must inspect a unit during occupancy at least once every three years.

PART 983PROJECT-BASED
VOUCHER PBV PROGRAM
43. The authority for 24 CFR part 983
continues to read as follows:

Authority: 42 U.S.C. 1437f and 3535d.

44. In 983.3, amend paragraph b by revising the definition of Housing Quality Standards HQS to read as follows:

983.3

PBV definitions.

b
Housing quality standards HQS.
The minimum quality standards developed by HUD in accordance with 5.703 of this title for the PBV program or the HUD approved alternative standard for the PHA under 5.703g of this title.

45. In 983.10, revise paragraph b2ii to read as follows:
983.10 Project-based certificate PBC
program.

b
2
ii Lead-based paint requirements.
The Lead-based Paint Poisoning Prevention Act 42 U.S.C. 48214846, the Residential Lead-based Paint Hazard Reduction Act of 1992 42 U.S.C. 4851
4856, and implementing regulations at part 35, subparts A, B, H, and R of this title, apply to the PBC program.

46. Revise 983.101 to read as follows:
983.101

Housing quality standards.

As defined in 983.3, housing quality standards HQS refers to the minimum quality standards developed by HUD in accordance with 5.703 of this title for housing assisted under the HCV
program or a HUD approved alternative standard for the PHA under 5.703g of this title.
47. In 983.103, revise the heading of paragraph d and add paragraph d4
to read as follows:
983.103

Inspecting units.

d Periodic inspections.
4 Instead of biennially, a small rural PHA as defined in 902.101 of this title
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