[Federal Register: May 2, 2006 (Volume 71, Number 84)]
[Notices]
[Page 25911-25913]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02my06-119]
[[Page 25911]]
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Part II
Department of Housing and Urban Development
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Public Housing Assessment System; Revision to the Financial Condition
Scoring Process; Notice
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5066-N-01]
Public Housing Assessment System; Revision to the Financial
Condition Scoring Process
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Notice.
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SUMMARY: This notice provides information to public housing agencies
(PHAs) and members of the public about HUD's process for issuing scores
under the Financial Condition Indicator of the Public Housing
Assessment System (PHAS). This notice includes revised threshold values
and associated points/scores for the expense management component of
the Financial Condition Indicator based on available data for PHAs with
fiscal years ending March 31, 2004, June 30, 2004, September 30, 2004,
and December 31, 2004. The data analyzed is based on generally accepted
accounting principles (GAAP) information submitted by PHAs as part of
the financial data schedule submission.
DATES: Comment Due Date: June 1, 2006.
ADDRESSES: Interested persons are invited to submit comments regarding
this rule to the Department of Housing and Urban Development, Office of
General Counsel, Regulations Division, 451 Seventh Street, SW., Room
10276,Washington, DC 20410-0500. Interested persons also may submit
comments electronically through The Federal eRulemaking Portal at
http://www.regulations.gov. Commenters should follow the instructions
provided on that site to submit comments electronically.
Facsimile (FAX) comments are not acceptable. In all cases,
communications must refer to the docket number and title. All comments
and communications submitted to HUD will be available, without change,
for public inspection and copying between 8 a.m. and 5 p.m. weekdays at
the above address. Due to security measures at the HUD Headquarters
building, an advance appointment to review the public comments must be
scheduled by calling the Regulations Division at (202) 708-3055 (this
is not a toll-free number). Copies of comments submitted electronically
are available for inspection and downloading at http://www.regulations.gov
.
FOR FURTHER INFORMATION: Contact the Office of Public and Indian
Housing, Real Estate Assessment Center (REAC), Attention: Wanda Funk,
Department of Housing and Urban Development, Real Estate Assessment
Center, 550 12th Street, SW., Suite 100, Washington, DC 20410;
telephone the PIH-REAC Technical Assistance Center at (888) 245-4860
(this is a toll free number). Persons with hearing or speech
impairments may access this number through TTY by calling the toll-free
Federal Information Relay Service at (800) 877-8339. Additional
information is available from the PIH-REAC Internet site at http://www.hud.gov/reac/
.
SUPPLEMENTARY INFORMATION:
I. Background
HUD published the first Public Housing Assessment System; Financial
Condition Scoring Process notice in the Federal Register on May 13,
1999 (64 FR 26222). HUD republished the notice to coincide with the
June 22, 1999, publication of the PHAS proposed rule. Subsequently, HUD
revised the notice twice to reflect additional changes to the financial
scoring process. The third notice was published on June 28, 2000 (65 FR
40008), and the fourth notice was published on December 21, 2000 (65 FR
80685). This notice is an update of the financial condition scoring
process notice published on December 21, 2000. In the December 21,
2000, notice HUD stated that any changes to the scoring process and any
modifications to the thresholds would be communicated through a
subsequent Federal Register notice. Accordingly, this notice updates
the December 21, 2000, notice and provides information on the revisions
made to the financial condition scoring process. HUD is revising the
thresholds based on a full year's worth of unaudited and available
audited financial information.
This change has been made in accordance with the threshold
revaluation schedule set forth in the December 21, 2000, notice. The
December 21, 2000, notice stated that the thresholds established in
that notice would remain in effect for all unaudited and audited PHA
financial submissions for PHAs for a three year period, unless REAC
found a need for revisions. In October 2001, July 2003, November 2004,
and May 2005, REAC conducted an analysis of the thresholds established
in the December 21, 2000, notice and determined not to revise the
established thresholds. In August 2005 another analysis was conducted
of the threshold established in the December 21, 2000, notice and it
was determined that a revision to the expense management component was
warranted.
II. Appendix 2, Expense Management, Revision
The analysis of the thresholds conducted in August 2005 is based on
the financial information submitted by PHAs with fiscal years ending
March 31, 2004, June 30, 2004, September 30, 2004, and December 31,
2004. As a result of this analysis, it was determined that a revision
to the expense management thresholds was warranted, but not to the
remaining component thresholds for current ratio, months expendable
fund balance, tenants receivable outstanding, occupancy loss and net
income and loss. The thresholds for the five financial condition
components that will not be changed are included in Appendix 2,
Thresholds for Entity-Wide GAAP Scoring, of the December 21, 2000,
Public Housing Assessment System; Financial Condition Scoring Process.
The table, below, includes the new thresholds for expense management.
The revised expense management thresholds included in this notice,
and the remaining five component thresholds included in the December
21, 2000, financial condition notice, which are based on a full year of
unaudited and audited financial data based on GAAP, will remain in
effect for all unaudited and audited PHA financial submissions for PHAs
with fiscal year end on or after September 30, 2006, for a three year
period, unless the REAC finds a need for revisions. Any revisions to
the thresholds will be communicated through a notice.
The expense management table can be interpreted in the following
manner:
Identify a size category for expense management;
The rows under that size category identify ranges of
possible values for expense management; and
The column to the right labeled ``Points/Score''
identifies the points/scores that is awarded to each expense management
value for that size category.
The thresholds presented here have been rounded for presentation
purposes, whereas those used to calculate scores at the REAC are not
rounded.
[[Page 25913]]
Expense Management (EM)
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Low medium and high Large and extra
Region Very small and small medium large Points/score
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0................................ EM< $112.39.......... EM< $108.52.......... EM< $128.15......... 1.5
0................................ EM>=$112.39......... EM>=$108.52......... EM>=$128.15........ 0
1................................ EM< $114.12.......... EM< $107.69.......... EM< $112.87......... 1.5
1................................ EM>=$114.12......... EM>=$107.69......... EM>=$112.87........ 0
2................................ EM< $94.59........... EM< $118.23......... EM< $117.07......... 1.5
2................................ EM>=$94.59.......... EM>=$118.23......... EM>=$117.07........ 0
3................................ EM< $89.22........... EM< $86.68........... EM< $101.71......... 1.5
3................................ EM>=$89.22.......... EM>=$86.68.......... EM>=$101.71........ 0
4................................ EM< $91.51........... EM< $97.55........... EM< $103.73......... 1.5
4................................ EM>=$91.51.......... EM>=$97.55.......... EM>=$103.73........ 0
5................................ EM< $86.66........... EM< $95.36........... EM< $110.68......... 1.5
5................................ EM>=$86.66.......... EM>=$95.36.......... EM>=$110.68........ 0
6................................ EM< $79.96........... EM< $82.36........... EM< $122.17......... 1.5
6................................ EM>=$79.96.......... EM>=$82.36.......... EM>=$122.17........ 0
7................................ EM< $99.87........... EM< $71.81........... EM< $86.02.......... 1.5
7................................ EM>=$99.87.......... EM>=$71.81.......... EM>=$86.02......... 0
8................................ EM< $111.02.......... EM< $133.50.......... EM< $97.86.......... 1.5
8................................ EM>=$111.02......... EM>=$133.50......... EM>=$97.86......... 0
9................................ EM< $120.96.......... EM< $109.90.......... EM< $136.55......... 1.5
9................................ EM>=$120.96......... EM>=$109.90......... EM>=$136.55........ 0
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Dated: April 24, 2006.
Orlando J. Cabrera,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 06-4086 Filed 5-1-06; 8:45 am]
BILLING CODE 4210-67-P