HUD Review Process - PHA Plans

Overview of the HUD Review Process

Section 511 of the Quality Housing and Work Responsibility Act of 1998 (Public Housing Reform Act) establishes HUD’s responsibility for reviewing and approving or disapproving each PHA Plan as well as any significant amendments or modifications to a Plan. This responsibility has been entrusted to HUD’s Field Office Public Housing (PH) Directors or HUD Directors for all PHAs, including troubled PHAs. It is the responsibility of the Public Housing Director or designee to ensure that the review process is properly followed and completed within the required 75-day period as established by law.

The PHA Plan review and approval process relies heavily upon use of the Internet. HUD has established two web sites for the PHA Plan:

• The External PHA Plans website which provides PHAs and the public with information about the plan such as new requirements, templates and certifications; and
  
  
• The internal web site which serves as HUD staff’s central administration point for the PHA Plans and also provides information and resources for conducting reviews of the plans. The primary tool for reviewing PHA Plans submission are the PHA Plan Review Checklists and Guidance, provided at the internal HUD web site.
  
  

The Public Housing Director may include other offices such as the Recovery Prevention Corp. (RPC), Community Planning and Development, Field Policy and Management, and Fair Housing and Equal Opportunity to review and comment on the PHA Plan.

Review Process and Timeline

Once the PHA electronically submits the PHA Plan to HUD, the Field Office will access the HUD PHA Plans web site to retrieve and review the Plans submitted by PHAs within their jurisdiction. The PHA Plans are posted on the HUD web site shortly after submission in a readable PDF document, and are listed by the corresponding Field Office and by Fiscal Year Start. PHAs are encouraged to inform the HUD Field Office by electronic mail of the successful transmittal of the Plan.

The official Date of Submission of a PHA Plan is the date when HUD receives the PHA Plan Template (form HUD 50075) and the original signed PHA Certifications of Compliance with PHA Plans and Related Regulations (form HUD-50077). The Field Office will establish the 75-day review period for a Plan upon receipt of these two documents.

The Field Office is responsible for reviewing the PHA Plan based on the following three statutory standards:

1. Completeness
   Does the PHA Plan contain all the information that is required? A primary area of review is to ensure that the PHA Plan is complete. If a deficiency is found during the review period, public housing field office staff must promptly inform the PHA of the deficiency and the corrective action required. The Field Office Staff and the PHA must determine if the correction can be completed within the 75-day review period. An "incomplete" Plan would include, for example, a Plan that does not contain the Capital Fund Annual Statement if the PHA is applying for these funds.
   
   
2. Consistency
   Is the information provided as part of the PHA Plan consistent with the data on record at HUD? This review includes a check for consistency with the applicable Consolidated Plan for the PHA’s jurisdiction. The Field Office staff and the PHA must determine if the correction can be completed within the 75-day HUD review period.
   
   
3. Compliance
   Is the information provided as part of the PHA Plan prohibited or inconsistent with QHWRA, the U.S. Housing Act of 1937 or any other applicable Federal law? The Field Office Staff and the PHA must determine if the correction can be completed within the 75-day review period.

The Field Office is also responsible for reviewing the Capital Fund Program Annual Statement , Five-Year Action Plan, and Performance and Evaluation Reports during the 75-day review period.

Significant amendments or modifications to the plan undergo the same review and approval process as the Annual PHA Plan and are subject to the 75-day review period.

PHA Plan Compliance Review Checklists – a Field Office Tool

Field Offices utilize a PHA Plan Compliance Review Checklist as the official review record for the PHA Plan. There are separate Review Checklists for standard, streamlined annual, and streamlined 5-year/annual plans. The Review checklist for standard plans is used for high performing PHAs with 250 or more public housing units. These checklists are found on the internal HUD PHA Plans web site. Field Offices are responsible for reviewing the contents of the PHA Plan and determining its compliance based on the three statutory standards: Completeness, Consistency and Compliance.

If the reviewer determines that any section of the plan is not in compliance with the three standards, he or she must identify and explain which of the three criteria for disapproval apply in the spaces provided in the checklist.

Reviewers must sign, date and indicate their recommendation for approval or disapproval at the end of the checklists. If deficiencies are noted by the reviewer, those deficiencies should immediately be brought to the attention of the PHA to allow for the additional information to be provided and reviewed by HUD within the 75-day review period.

In addition to the Compliance Review Checklist, Field Offices must perform a Civil Rights Front-End Review of the PHA submitting the PHA Plan to identify any civil rights issues. This review includes a check to see whether the PHA has been found to be a party to any litigation settlements, consent decrees, voluntary consent agreements, or court orders identified by the Office of General Counsel.

The PHA Plan Compliance Review Checklists used by the Field Offices take account of the following components as they apply to the various plan types:

• PHA Name
• PHA Number
• Official Date of Submission
• Date of end of 75 days review period
• PHA FYB Date
• PHA Plan Type (Standard, High Performer, Troubled, Small, and Section 8 only)
• PHA Certifications of Compliance with PHA Plans and Related Regulations
• Five-Year Plan
  • Mission
  • Goals and Objectives
  • Violence Against Women Act
• Annual PHA Plan
• Statement of Housing Needs
• Project-based vouchers
• Mixed Finance Development and/or Modernization
• Capital Improvement Needs (Capital Fund Annual Statement and 5 year Action Plan)
• Capital Improvement Needs Performance and Evaluation Reports
• HOPE VI and Public Housing Development and Replacement Activities
• Demolition and Disposition
• Conversion of Public Housing to tenant-based assistance
• Public Housing and Section 8(y) Homeownership Programs
• Other Information
• Required Attachments
  
  

  Approval or Disapproval of Plans

  Approval
  If the reviewer determines that the PHA Plan conforms to the three statutory standards of completeness, consistency and compliance, the Public Housing (PH) Director, or HUD Director, will approve the Plan. A Plan will be automatically approved if HUD does not disapprove it within the 75-day time frame. Troubled PHAs are exempt from the 75-day automatic approval provision. The plan of a troubled PHA must be approved or disapproved in writing.

  The PH Director will send the PHA a letter approving the Plan. The content of the letter may vary depending on whether the PHA Plan also includes Capital Fund Program (CFP) or other grant program information, whether PHAs will need to revise Capital Fund budgets to reflect actual funding amounts, and current grants processing procedures. If capital or other grant funds are included, the PH Director will inform the Grant Management Center (GMC) of PHA Plan approvals. The PH Director will also notify the HUD web manager of the determination and the approved plan will then be posted in the HUD web site area called "Approved Plans."

  After approval of the PHA Plan by HUD, the PHA must make its approved Plan and the required attachments (if any) and supporting documents related to the Plan available for review and inspection at the principal office of the PHA during normal business hours. PHAs are also required to promptly provide a copy of the HUD award letter (identifying formula share allocations for the Capital Fund Program), plan approval letter and at least one copy of the approved plan to each Resident Advisory Board (RAB).

  Disapproval
  If after reviewing a PHA Plan, the PH Director determines that the Plan does not comply with any of the three statutory standards, the Director will disapprove the Plan.

  The PH Director may disapprove a Plan for technical or substantive deficiencies. Technical deficiencies are those that do not have an effect on the information that was presented to the RAB or the public. Technical deficiencies might include, for example mathematical errors or addition of activities in the Capital Fund Plan that were already included in the PHA’s Five-Year Plan.

  In the case of technical deficiencies, the PH Director will disapprove the plan and specify a date for the re-submission of the plan with the required corrections. Typically, the turn-around time for approval of a corrected plan is approximately three weeks and should fall within the 75-day review period. A PHA with a Plan deemed technically deficient is not required to consult with the Resident Advisory Board (RAB) or the public after correcting the deficiency, and the PHA may re-submit the Plan without the RAB’s assessment or a public comment/review period.

  PHA Plans that are disapproved for substantive deficiencies require consultation with the RAB and are subject to a comment period and a public hearing. The PH Director will specify a reasonable time for resubmission of the plans to allow for correction of deficiencies and the consultation process within the 75-day review period. Substantive deficiencies are those that have an effect on the information that was presented to the RAB or to the public. Omitting a Capital Fund Plan is an example of a "substantive deficiency."

  HUD may determine not to release full funding under the Capital Fund Program until the PHA Plan is approved.

  Review Process Diagram

  

  Troubled PHAS

  Field Offices will conduct the review of PHA Plans of housing authorities designated as "troubled" and those PHAs in transition from or to a "troubled" category. The review may be conducted Recovery Prevention Corp if applicable. The PH Director or HUD Director will issue a written approval or disapproval letter for these PHA Plans. PHA Plans for Troubled PHAs will not be automatically approved if HUD does not release a document by the end of the 75-day review period.

  The Field Office may request additional documentation from the PHA, such as Recovery Plans, to aid in making determinations during review of a PHA Plan from a "troubled" PHA.

  Moving to Work (MTW) Demonstration

  PHAs under the Moving to Work Demonstration (MTW) Program may have distinct requirements in lieu of the PHA Plan, determined by their Moving To Work Demonstration Agreement. PHAs operating block grants are exempt from the requirement to submit a PHA Plan and are directed to submit an Annual MTW Plan and an Annual MTW Report. The Annual MTW Plan is a comprehensive framework for the PHA’s activities, including funding allocations. The Annual MTW Plan must be submitted to HUD with a board resolution approving the plan and certifying that a public hearing was held regarding the plan. The Annual MTW Report includes a Consolidated Financial Report describing the sources and uses of funds and will compare the PHA’s performance with its Annual MTW Plan. HUD’s Office of Public Housing Investments has the lead responsibility for the review and approval of MTW Annual Plans. Field Offices have an advisory role in the review of these plans.

  MTW PHAs that do not operate block grants are not exempt from the requirement to submit a PHA Plan and must include a separate section describing the activities and uses of funding the PHA is undertaking under the MTW Program. These descriptions will be reviewed by the Field Office following the PHA Plan review process.

  Contacting Local Offices

  It is recommended that a PHA contact the Field Office through electronic mail to advise of its submission of the PHA Plan. Field Offices should also be advised when the PHA sends the required certifications or any other supporting document requested by the Field Office for the review of the Plan.

  A complete list of Public and Indian Housing Field Offices is available on the HUD PIH website.