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In some cases, the findings recorded on the report will now incorporate regulatory and statutory requirements as well as references to HAP contracts and Handbooks. Statutory references include citations from the Code of Federal Regulations. The Code of Federal Regulations, Part 24 addresses Housing requirements. General requirements for HUD programs as well as project-specific regulations are explained here. Handbook references may still be cited, but they are guides only. Thus, the findings written on reports will include additional information related to compliance which may have been missing before.

Another important change is how category and overall ratings on the report are determined.

Going forward, specific, numerical calculations will be used to determine ratings.

HUD calls these “performance indicators”. Below is the overall breakdown of these indicators:

• Superior (90-100)
• Above Average (80-89)
• Satisfactory (70-79)
• Below Average (60-69)
• Unsatisfactory (59 and Below)

Guidance on how to determine these ratings is explained in detail in Chapter 6, which now includes a discussion on the “Above Average” rating. Prior to the release of this chapter, HUD had no guidance related to this rating. Going forward, the following will be applied to determine this rating category:

Above Average Rating.

Performance should be rated above average if:

Owner/agent has established policies and procedures which are successful in carrying out the objectives of HUD housing programs (i.e., provisions of wellmaintained housing at the lowest possible rents and proper use and concern for Federal subsidy and insurance funds);

Owner/agent strictly adheres to procedures, with very few exceptions, resulting in compliance with the regulatory agreement, subsidy and mortgage contracts, and management certifications; and Incidences of errors disclosed in the review are minimal and there are no major adverse findings are made.