Public Housing Assessment System (PHAS)

The Public Housing Assessment System (PHAS) is a management tool that is implemented through the U. S. Department of Housing and Urban Development (HUD) to effectively and fairly measure and monitor Public Housing Authority (PHA) performance on both a PHA-wide basis and individual housing development basis. The program monitors four essential housing functions: (1) management operations, (2) physical condition of the properties, (3) financial operations, and (4) capital fund performance. PHAs that undergo a PHAS assessment receive a performance designation of either high, standard, or substandard.

PHA Designation Status

For a PHA to achieve the status of high performer, the PHA must score at least 60 percent of the points available within the categories of management operations, physical condition of the properties, and financial operations and at least 50 percent of the points available within the category of capital fund performance, and achieve an overall PHAS score of 90 percent or greater of the points available under PHAS. If a PHA scores below the threshold for any of the established rated categories, the PHA may not be designated as a high performance agency. For PHAs that do achieve the designation of high performer, HUD will provide those PHAs with incentives that include relief from reporting requirements. For a PHA to achieve the status of standard performer, the PHA must score at least 60 percent of the points available within the categories of management operations, physical condition of the properties, and financial operations and at least 50 percent of the points available within the category of capital fund performance, and achieve an overall PHAS score of at least 60 percent of the points available under PHAS. For PHAs that achieve the designation of standard performer, the HUD Field Office may require those PHAs to submit and operate under a corrective action plan for performance monitoring. For a PHA that is designated as a substandard performer, the PHA must score below 60 percent of the points available within one of the rated categories of management operations, physical condition of the properties, or financial operations and an overall PHAS score of at least 60 percent of the points available under PHAS. If a PHA scores below the threshold for any of the established rated categories, the PHA may not be designated as a high performance agency. Depending upon the low rated category, the PHA is then either designated as substandard management operations, substandard physical conditions of the properties, or substandard financial operations. For PHAs that are designated as substandard performer, the HUD Field Office shall require the PHA to submit and operate under a corrective action plan and for performance monitoring.

Management Operations Category

The management operations category measures a PHA’s management performance at each housing development and the public housing program on an overall PHA-wide basis. HUD has established three review areas to measure management performance: (1) Occupancy Rate, which measures the occupancy rate of each housing development during the fiscal year (adjusted for HUD allowed vacancies); (2) Tenant Accounts Receivable, which measures tenant receivables of each housing development against tenant charges for each housing development during the fiscal year; and (3) Accounts Payable, which measures funding that a housing development owes to vendors at the end of the fiscal year for products and services that were purchased on credit against each housing development’s total operating expenses. HUD monitors management operations through information that is submitted electronically to HUD throughout a PHA’s fiscal year.

Physical Condition of the Properties Category

The physical condition of the properties category determines whether or not a PHA is meeting the HUD established standard of providing assisted housing that is “safe, decent, sanitary, and good repair.” HUD monitors the physical condition of the properties via independent physical inspection that is conducted by contracted housing inspectors that use HUD’s Uniform Physical Condition Standards (UPCS) protocol.

Financial Operations Category

The financial operations category measures the financial condition of each housing development and the public housing program on an overall PHA-wide basis. A PHA’s financial condition is measured to determine if the PHA has sufficient financial resources to provide assisted housing that is “safe, decent, sanitary, and in good repair.” HUD has established three review areas to measure financial performance: (1) Quick Ratio, which measures liquidity; (2) Months Expendable Net Assets Ratio (MENAR), which measures adequacy of reserves; and (3) Debt Service Coverage Ratio (DSCR), which measures capacity to cover debt. HUD monitors financial operations by measuring the each housing development’s financial performance and the PHA-wide combined financial performance of all public housing developments based on a PHA’s annual financial report that is submitted to HUD at the end of a PHA’s fiscal year.

Capital Fund Performance Category

The capital fund performance category examines the period of time taken by a PHA to obligate funds and reoccupy vacant units in relation to statutory deadlines established for all capital fund program grants for which fund balances remain during a PHA’s assessed fiscal year. HUD has established two review areas to measure capital fund performance: (1) Timeliness of Fund Obligation, which examines the period of time it takes for a PHA to obligate funds from a capital fund program; and (2) Occupancy Rate, which measures the PHA’s occupancy rate at the end of the PHA’s fiscal year. HUD monitors capital fund performance through information that is submitted electronically to HUD throughout a PHA’s fiscal year.