Senate Considers Bill That Would Alter Definition of ‘Troubled’ Small PHA

The Senate recently debated a bill, the “Economic Growth, Regulatory Relief and Consumer Protection Act” (S. 2155), that includes provisions that would affect public housing. Section 210 of the bill proposes to give HUD discretion to label a small public housing agency (PHA) as troubled.

HUD rules currently provide a concrete, quantitative measure to evaluate the performance of small PHAs. The bill merely states that a small PHA may be designated as troubled if HUD determines the PHA has failed to maintain its properties “in a satisfactory physical condition,” but the legislation does not define what that entails. Public housing advocates are concerned that such an unclear and subjective standard could lead to poor outcomes in enforcement and oversight, putting tenants’ health and safety at risk.

The bill would also postpone physical inspections for public housing for three years, unless the small PHA has been deemed troubled under the new, vague definition. Under current public housing rules, only the highest performing small PHAs are permitted to receive a physical inspection every three years. Small PHAs that achieve an overall Public Housing Assessment System (PHAS) score that classify them as standard or substandard are inspected every two years, while the lowest performing small PHAs, those that are classified as troubled, are inspected every year and are required to take corrective action. S. 2155 would also apply a less rigorous standard for evaluating the physical conditions of a small PHA’s sites.