---
kind: "section"
citation: "24 C.F.R. § 985.107"
title: "24"
number: "985.107"
heading: "Required actions for PHA with troubled performance rating."
url: "https://uscodex.org/cfr/24/985.107"
---

# §985.107. Required actions for PHA with troubled performance rating.

- (a) **On-site reviews—**
  - (1) **Required reviews for troubled PHAs.** Except as provided in [paragraph (a)(2)](#a-2) of this section, HUD will conduct an on-site review of PHA program management for any PHA assigned an overall performance rating of troubled to assess the magnitude and seriousness of the PHA's noncompliance with performance requirements.
  - (2) **On-site reviews for small PHAs.** Notwithstanding [paragraph (a)(1)](#a-1) of this section, HUD may elect not to conduct an on-site review of a troubled PHA, if:
    - (i) The PHA has less than 250 assisted units; and
    - (ii) HUD determines that an on-site review is unnecessary to determine the needs of the PHA and the actions required to address the program deficiencies.
- (b) **HUD written report.** HUD must provide the PHA a written report of its on-site review containing HUD findings of program management deficiencies, the apparent reasons for the deficiencies, and recommendations for improvement.
- (c) **PHA corrective action plan.** Upon receipt of the HUD written report on its on-site review, the PHA must write a corrective action plan and submit it to HUD for approval. The corrective action plan must:
  - (1) Specify goals to be achieved;
  - (2) Identify obstacles to goal achievement and ways to eliminate or avoid them;
  - (3) Identify resources that will be used or sought to achieve goals;
  - (4) Identify an PHA staff person with lead responsibility for completing each goal;
  - (5) Identify key tasks to reach each goal;
  - (6) Specify time frames for achievement of each goal, including intermediate time frames to complete each key task; and
  - (7) **Provide for regular evaluation of progress toward improvement.**
  - (8) **Be signed by the PHA board of commissioners chairperson and by the PHA executive director.** If the PHA is a unit of local government or a state, the corrective action plan must be signed by the [Section 8](/cfr/24/8.md) program director and by the chief executive officer of the unit of government or his or her designee.
- (d) **Monitoring.** The PHA and HUD must monitor the PHA's implementation of its corrective action plan to ensure performance targets are met.
- (e) **Use of administrative fee reserve prohibited.** Any PHA assigned an overall performance rating of troubled may not use any part of the administrative fee reserve for other housing purposes (see [24 CFR 982.155(b)](/cfr/24/982.155.md?p=b)).
- (f) **Upgrading poor performance rating.** HUD shall change an PHA's overall performance rating from troubled to standard or high performer if HUD determines that a change in the rating is warranted because of improved PHA performance and an improved SEMAP score.

## Notes

### Amendments

[63 FR 48555, Sept. 10, 1998, as amended at 68 FR 37672, June 24, 2003]

### Authority

Authority: 42 U.S.C. 1437a, 1437c, 1437f, 1437z-10, and 3535(d).

### Source

Source: 63 FR 48555, Sept. 10, 1998, unless otherwise noted.

### Amendments

[63 FR 48555, Sept. 10, 1998, as amended at 68 FR 37672, June 24, 2003]