Asset Management, Yes—Micromanagement, No

The public housing program will soon undergo a sea change in terms of how it is funded and operated. For several months now, PHADA has reported on its ongoing discussions with HUD as the Department prepares to implement the new operating fund formula and its accompanying asset management requirements. PHADA has now produced a comprehensive publication that clearly identifies its concerns about HUD’s draft guidance, offering proposed solutions to address the problems.

A PDF version of Asset Management, Yes; Micromanagement, No (1.7 MB) is available to all HAs, including non-members (no password is required to access this document). It was mailed to all HAs, HUD offices, and Congress at the end of March 2006. PHADA urges all HAs to review this material and share their views with Congress. The publication’s last two pages of “proposed solutions” are available as a separate document (PDF, 216 KB) and can be used in congressional communications.

PHADA supports the new operating fund formula and will continue working to ensure it moves forward on schedule. In addition, it should be noted that PHADA’s solutions can be implemented without delaying the operating fund rule’s implementation. As this publication details, though, HUD’s draft project-based accounting and management (PBA/PBM) guidance must be revised to make sure it is truly “reasonable” as the rule requires. Otherwise, all HAs—including those expecting financial gains under the new system—will suffer serious negative consequences.