1. Public Housing
Assessment System
PHAS Interim Rule
Overview and Key Points
October 24, 2011
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Real Estate Assessment Center Version 2.0 PHAS Interim Rule
2. Interim PHAS: Four Indicators
40 points 25 points
Physical Financial
Condition Condition
Capital Fund Management
Program Operations
10 points 25 points
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Real Estate Assessment Center Version 2.0 PHAS Interim Rule
3. 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
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Real Estate Assessment Center Version 2.0 PHAS Interim Rule
4. 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)
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Real Estate Assessment Center Version 2.0 PHAS Interim Rule
5. 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
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Real Estate Assessment Center Version 2.0 PHAS Interim Rule
6. UPCS Inspection Frequency
PHAs with less than 250 units
(Frequency of PHAS based upon PHAS score)
YEAR(S)
High performer PHAS score: ≥90 (and not Capital
3 Fund Troubled)
PHAS and UPCS Inspections every 3rd year
2 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
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Real Estate Assessment Center Version 2.0 PHAS Interim Rule
7. UPCS Inspection Frequency
PHAs with 250 units or more
(Frequency based upon the project PASS score)
YEAR(S) Project score ≥90
UPCS project Inspection every 3rd year
3
Project score 80 but less than 90
2 UPCS project Inspection every 2nd year
Project score <80
1 UPCS project Inspection every year
1 Troubled: PHAS score <60 or Capital Fund Troubled
UPCS Inspections of all projects every year
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Real Estate Assessment Center Version 2.0 PHAS Interim Rule
8. Financial Indicator Changes
Points decreased from 30 to 25
Three sub-indicators
Months Expendable Debt Service
Quick Ratio (QR) Net Asset Ratio Coverage Ratio
(MENAR) (DSCR)
Measures adequacy Measures capacity
Measures liquidity of reserves to cover debt
12 points 11 points 2 points
High Liquidity Adjustment discontinued
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Real Estate Assessment Center Version 2.0 PHAS Interim Rule
9. Management Operations Indicator
Changes
Points decreased from 30 to 25
Three sub-indicators
Tenant Accounts Accounts Payable
Occupancy Receivable (TAR) (AP) [New]
Amount of tenant
Includes allowable accounts receivable Amount of money
vacancies against tenant owed to vendors
charges
16 points 5 points 4 points
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Real Estate Assessment Center Version 2.0 PHAS Interim Rule
10. Management Operations Indicator
Changes (continued)
Physical Condition and Neighborhood
Environment (PCNE) adjustments
Physical Condition Neighborhood Environment
Projects at least 28 years old Projects in census tracts in which
based on weighted DOFA data at least 40% of families have an
income below poverty rate
1 point 1 point
PCNE is automatically calculated using information from PIC and
added at the project level before computing the weighted average
MASS score
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Real Estate Assessment Center Version 2.0 PHAS Interim Rule
11. PHAS Designation Status (24 CFR 902.11)
PHAS Status Individual Indicator
Designation Composite PHAS Score Score
At least 60% of total points available in
Overall PHAS score of 90% PASS(24), MASS(15), FASS(15) and 50%
High Performer of the total points for CFP(5)
or higher
Not less than 60% of total points
Standard Overall PHAS score of at available in PASS(24), MASS(15),
Performer least 60% FASS(15) and 50% of the total points for
CFP(5)
Substandard Overall PHAS score of at Less than 60% in one or more of the
Performer least 60% PASS, FASS, or MASS indicators
Less than 60% of the
Troubled overall PHAS score ---
Capital Fund Less than 50% on CFP indicator
Program (CFP) ---
Troubled
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Real Estate Assessment Center Version 2.0 PHAS Interim Rule
12. Designations & Assessments
Small PHAs
High Standard Substandard Troubled Capital Fund
Performer Performer Performer Program
Troubled
Receives PHAS
assessment: Every 3 years Every 2 years Every 2 years Every year Every year
Large PHAs
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Performer Capital Fund
Program
Receives PHAS Every Every Every Every Troubled
assessment: year year year year Every
year
PASS inspections ≥90 80-89 ≤79 Every year**
(Based on
Every 3 Every 2 Every
individual project Every 2 years*
scores) years* years* 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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Real Estate Assessment Center Version 2.0 PHAS Interim Rule
