HUD PIH Proposes Changes to Public Housing Assessment System (PHAS)

HUD’s Office of Public and Indian Housing (PIH) published on November 4 proposed changes to the Public Housing Assessment System (PHAS) regulations (24 CFR part 902). PHAS is a tool used by PIH to assess how public housing agencies (PHAs) manage their public housing. The preamble states that the proposed changes would revise the weight of the PHAS “indicators” to emphasize the importance of public housing occupancy, financial condition, and physical assessments. However, it is not clear how greater weight might be given for the importance of physical assessments. PIH specifically requests comments on 10 topics. Comments are due by January 3.

Key Features of the Current PHAS Regulation

The current PHAS regulation has four indicators: 

  1. Physical condition (PASS), measuring the extent that a PHA is ensuring public housing developments meet acceptable basic conditions (worth up to 40 points); 
  2. Financial condition (FASS), measuring a PHA’s ability to maintain sufficient financial resources (worth up to 25 points);
  3. Management operations (MASS), measuring a PHA’s ability to assist as many households as possible and meet its obligation to residents (worth up to 25 points); and 
  4. Capital Fund (CFP), measuring a PHA’s ability to obligate its Capital Fund in a timely manner and to maintain a high rate of occupancy (worth up to 10 points). 

Various “subindicators” for each indicator are measured to arrive at an indicator’s overall score. For instance, the management operations indicator has three subindicators: occupancy (up to 16 points), tenant accounts receivable (up to five points), and accounts payable (up to four points). PIH issued separate Federal Register notices in 2011 providing specific values and conditions for each subindicator. They can be found on the iNTEGRATED ASSESSMENT SUBSISTEM – PUBLIC HOUSING ASSESSMENT SYSTEM (NASS-PHASS) webpage.

A PHA receives an overall score between zero and 100 based on the four indicators, as well as corresponding performance “designation” of one of the following:

  • High performer. To be designated a High performer, a PHA must have an overall PHAS score of 90% or higher and at least 60% of the total points available in PASS (24), MASS (15), FASS (15), and 50% of the total points for CFP (5).
  • Standard performer. To be designated a Standard performer, a PHA must have an overall PHAS score of at least 60% and receive not less than 60% of the total points available in PASS (24), MASS (15), FASS (15), and 50% of the total points for CFP (5). 
  • Substandard performer. To be designated a Substandard performer, a PHA must have an overall PHAS score of at least 60% and receive less than 60% in one or more of the PASS, FASS, or MASS indicators. 
  • Troubled performer. To be designated a Troubled performer, a PHA must have an overall PHAS score less than 60%.

Prior to 2011 when the PHAS regulations were last modified, there was an additional indicator, the Resident Assessment Subsystem (RASS) as well as a resident satisfaction survey. PIH proposed eliminating both – and did. NLIHC, guided by NLIHC’s Resident Issues Policy Committee, submitted comments in response to the 2011 final rule, writing that PIH should restore RASS and the resident satisfaction survey to the PHAS system. It is important to have an independent, stand-alone measure of resident satisfaction and resident participation. 

Key Provisions of the 2024 Proposed Revisions 

PIH proposes increasing the maximum possible points for the financial condition indicator to 30 points (up from 25 points) as well as increasing the maximum possible points for the management operations indicator to 30 points (up from 25 points). The proposed rule would raise the minimum score to 18 points (up from 15 points) for a PHA to receive a passing score under the financial condition indicator, as well as for the management operations indicator. PIH proposes keeping the physical conditions indicator at 40 points. NLIHC would prefer the physical condition indicator be weighed more heavily at 50 points rather than the financial condition and management operations indicators gaining extra consideration. Because the management operations indicator does offer a subindicator of up to 16 points if a PHA maintains 98% occupancy, NLIHC could offer an alternative of raising the physical condition indicator to 45 points and the management operations indicator to 30 points.

In order to increase the financial and management operations indicators by five points each, PIH proposes eliminating the 10-point scoring system for the Capital Fund indicator and substituting a “pass/fail” system. To do this, PIH proposes removing the current resident occupancy subindicator from the Capital Fund indicator because the management operations indicator also has a resident occupancy subindicator. This leaves in place the current requirement that a PHA obligate at least 90% of its Capital Fund in a timely manner in order to pass. 

To receive a High performer or Standard performer designation, a PHA would have to receive a passing evaluation under the Capital Fund indicator, as well as the existing percentage of available points in its overall PHAS score (as shown above). If a PHA fails a Capital Fund indicator, its overall performance designation will be “Capital Fund troubled” and the PHA will be subject to oversight and corrective actions. PIH may require a PHA to correct deficiencies in performance within a HUD-specified time period.

For each indicator, the proposed rule would issue an indicator score (for example the physical condition score) in advance of an overall PHAS score, and a PHA might be subject to appropriate oversight and action as soon an individual public housing development’s physical condition indicator is issued or as soon as an overall physical condition indicator score is issued. PIH is proposing this change because assessments of the individual indicators take place at different times. PIH might receive information about a poor physical condition, for example, months before an overall PHAS score and full performance designation is available. The proposed change will enable PIH to take corrective action before a full PHAS assessment is complete. The proposed rule would add a sentence at Section 902.81 making it clear that a resident is not restricted from communicating any complaint or concern about a PHA to HUD in writing at any time.

The original Moving to Work (MTW) PHAs were not subject to PHAS and will remain so, but the proposed rule would require the Expansion MTW PHAs (also referred to as the Operations Notice MTWs) to undergo a PHAS assessment.

Although not new in the proposed rule, NLIHC reminds residents and other advocates that the current rule states that “[e]ach PHA shall post a notice of its final PHAS score and designation in appropriate conspicuous and accessible locations in its offices within two weeks of receipt of its final PHAS score and designation. [Section 902.64(b)(3)] In addition, HUD will post every PHA’s PHAS score and designation on HUD’s internet site.” HUD’s posting of PHAS scores 2024 is at: https://tinyurl.com/mutubx6n 

Read the proposed PHAS regulation changes at: https://tinyurl.com/zs9d93cb 

An easier to read version of the proposed PHAS regulation changes is at: https://tinyurl.com/488mw375

Information about PHAS on the PIH website is at: https://tinyurl.com/4k74y92b and at https://tinyurl.com/mutubx6n 

Basic information about public housing is on page 4-36 of NLIHC’s 2024 Advocates’ Guide.