Federal Register - January 13, 2021
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Source: Federal Register
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Federal Register / Vol. 86, No. 8 / Wednesday, January 13, 2021 / Proposed Rules
from the last PHA inspection. The PHA
would pass the indicator if at least 98
percent of the units were inspected; and Unit condition enforcement would confirm the PHA is taking corrective action as required in cases where the owner fails to correct an identified unit deficiency in accordance with HUD
requirements. The PHA would pass the indicator if 98 percent of inspections with identified life-threatening or other deficiencies were corrected within the required timeframe.
In order for the small rural PHA to be designated as a high performer, additional requirements related to funding would also apply. Proposed 985.205a would state that for a PHA
to be designated as a high performer, the PHA must:
Either utilize at least 98 percent of its HCV budget authority for the most recent calendar year or the percent of HCV units leased by renters or occupied by homeowners for the most recent calendar year must be at least 98
percent;
Not end the calendar year with excess HAP reserves; and Not end the calendar year in a funding shortfall or receive shortfall prevention funding from HUD.
If the small rural PHA passes all four inspection indicators and meets the funding criteria listed above, the PHA is designated as a high performer. If a PHA
passes all four inspection indicators but does not meet the funding criteria listed above, the PHA will be designated as a standard performer. If the small rural PHA fails any one of the four inspection indicators, regardless of whether or not it meets the funding requirements, the PHA is designated as troubled.
In accordance with statutory requirements contained in the Economic Growth Act, proposed 985.207 would establish an assessment frequency of no more than once every three years, except that a troubled small rural PHA
would be subject to an annual assessment in accordance with 985.204.
Proposed 985.209 would cover requirements that apply to small rural PHAs designated as troubled, including the statutorily mandated appeals process and the required corrective action agreement.
Proposed 985.211 would state that HUD would maintain small rural PHAs assessment files, including designations, appeals, and agreements, for at least 3
years.
With regard to small rural PHAs, HUD
is requesting public comments on the following questions:
Question for comment 21: HUD is considering establishing the threshold
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for troubled PHAs under the small rural assessment as a PHA that either has a weighted average of less than 70 percent of all available points on physical inspections, or a PHA that has a weighted average of between 70 and 80
percent of all available points and that also has at least one property that received a score of less than 70 percent of available points. HUD is seeking comment on how this threshold will impact PHAs and residents, and what alternative thresholds HUD should use to define a troubled PHA?
Question for comment 22: HUD is specifically seeking comment on the four indicators proposed to determine if the PHA is failing to fulfill its responsibilities for unit inspections under the HCV program and the method by which HUD is proposing to determine if the PHA has passed or failed the indicator. Are the indicators proposed to make such determination appropriate? If not, are there better alternatives?
Question for comment 23: HUD is specifically seeking comment on the criteria it is proposing to determine if the PHA is a high performer or a standard performer. Are the conditions related to funding utilization appropriate? If not, are there better alternatives? Should HUD be considering other criteria besides utilization to designate a PHA a high performer as opposed to a standard performer? If so, what other performance measures should be taken into account? How would HUD verify the PHAs performance on any suggested additional or alternative performance criteria, keeping in mind HUDs preference to move away from reliance on self-certifications wherever possible and to not require PHAs to report or submit data for PHA
assessments that is not already collected as part of normal HCV PHA operations and HUD oversight?
Question for comment 24: What specifically should be required in the corrective action agreement?
C: Other Regulatory Changes As discussed above, 5.701 would expand the scope of part 5, subpart G.
Therefore, this proposed rule would amend regulations for the HCV part 982, PBV part 983, HOME part 92, HTF part 93, HOPWA part 574, ESG
part 576, and CoC part 578.
The proposed rule would align HOME
property standards requirements for housing with the requirements for ongoing property condition standards of rental housing at 92.251f.
Participating jurisdictions would be required to establish written property
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standards for housing occupied by tenants that meet minimum requirements at 92.251f including compliance with State and local codes and ordinances, health and safety, and lead-based paint requirements.
While most participating jurisdictions are subject to State and local building or rehabilitation codes, many are not subject to comprehensive property condition or habitability codes. The program regulations at 92.251f do not provide a uniform standard for housing that is decent, safe, and sanitary and in good repair where State and local codes are absent. HUD is proposing a uniform standard for what must be inspected during, and corrected as the result of, an ongoing physical inspection of HOMEassisted rental housing during the period of affordability or an annual inspection of housing occupied by a resident.
Also under the proposed rule, the Housing Trust Fund HTF program regulations would be revised to make conforming changes to the HTF property standards requirements at 93.301b1viii, c3, and ei. The specific deficiencies will be a subset of the deficiencies defined for NSPIRE and published in the Federal Register in accordance with 5.705.
The proposed rule would also make conforming changes to apply 5.703 to the Housing Opportunities for Persons with AIDS HOPWA, Continuum of Care CoC, and Emergency Solutions Grants ESG programs. The rule proposes to amend the HOPWA
regulations at 574.310; the CoC
regulations at 578.75; and the ESG
regulations at 576.403 to cite to 5.703. The CoC regulations at 578.75b regarding lead-based paint requirements would be amended only to apply 5.703 where 982.401 currently applies; this proposed rule makes no substantive changes to the lead-based paint requirements. The ESG regulations would be amended to include 5.703 in the minimum standards for permanent housing but not emergency shelters.
These amendments are intended to replace program-specific standards with references to part 5. Further, 5.711
would incorporate and condense the administrative review and enforcement action provisions at 200.857h and 200.857i to align with HUDs current procedures and to eliminate inconsistencies with Section 219, Title II, Division H of the Consolidated Appropriations Act, 2020, Public Law 11694, December 20, 2019.
HUD is also proposing technical changes for HAP contracts at 880.612, 884.217, 886.123 and 886.323 to require
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