Sneak Preview: HUD Proposal Calls for a More In-Depth Needs Assessment

July 28, 2011 | By Jerry Ashworth | Post a Comment

(This post is based on an upcoming article in the Federal Grants Management Handbook.) Public housing agencies would have to consider the health of their facilities over the next two decades under proposed regulations that the Department of Housing and Urban Development said would enhance long-term PHA modernization and repairs.

Every five years, PHAs with 250 units or more must submit to HUD a physical needs assessment, which identifies all the work that they must do to bring their projects up to the applicable modernization and energy conservation standards for the next five years. Under the proposed rule, HUD would require all PHAs to project the modernization and repair needs over a 20-year span because this time frame coincides better with the useful life of the properties. The assessment under the proposal would be submitted electronically every year, with a full revision every five years.

By requiring physical needs assessments to determine modernization and repair needs over 20 years, HUD said PHAs can better ensure the long-term viability of the property, and it will improve PHA capital planning and portfolio management practices. In addition, assessments covering 20 years or more of projected capital needs are standard in real estate management, HUD said. Comments are due on the proposed rule by Sept. 19.

More information on the proposed rule, what comments HUD is requesting and what this could mean for housing authorities will be available to subscribers of the Federal Grants Management Handbook in their September issue.

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