PART 985—SECTION 8 MANAGEMENT ASSESSMENT PROGRAM (SEMAP) AND SMALL RURAL PHA ASSESSMENTS Authority: 42 U.S.C. 1437a, 1437c, 1437f, 1437z-10, and 3535(d). Source: 63 FR 48555, Sept. 10, 1998, unless otherwise noted. Editorial Note: Nomenclature changes to part 985 appear at 64 FR 67983, Dec. 3, 1999. Subpart A—General § 985.1 Purpose and applicability. (a) Purpose. (b) Applicability. (c) Small rural PHA assessments. [63 FR 48555, Sept. 10, 1998, as amended at 64 FR 40497, July 26, 1999; 88 FR 30505, May 11, 2023] § 985.2 Definitions. (a) The terms Department, Fair Market Rent, HUD, Secretary, Section 8, (b) The definitions in 24 CFR 982.4 apply to this part. As used in this part: Confirmatory review Corrective action plan MTCS PHA PHA's quality control sample Universe Minimum number of files or records 50 or less 5. 51-600 5 plus 1 for each 50 (or part of 50) over 50. 601-2000 16 plus 1 for each 100 (or part of 100) over 600. Over 2000 30 plus 1 for each 200 (or part of 200) over 2000. Where the universe is: the number of admissions in the last year for each of the two quality control samples under the SEMAP indicator at § 985.3(a) Selection from the Waiting List; the number of families assisted for the SEMAP indicators at § 985.3(b) Reasonable Rent, and 985.3(c) Determination of Adjusted Income; the number of units under HAP contract during the last completed PHA fiscal year for the SEMAP indicator at § 985.3(e) HQS Quality Control Inspections; and the number of failed HQS inspections in the last year for the SEMAP indicator at § 985.3(f) HQS Enforcement. Performance indicator SEMAP certification SEMAP deficiency SEMAP profile [63 FR 48555, Sept. 10, 1998, as amended at 64 FR 40497, July 26, 1999] § 985.3 Indicators, HUD verification methods and ratings. This section states the performance indicators that are used to assess PHA Section 8 management. HUD will use the verification method identified for each indicator in reviewing the accuracy of an PHA's annual SEMAP certification. HUD will prepare a SEMAP profile for each PHA and will assign a rating for each indicator as shown. If the HUD verification method for the indicator relies on data in MTCS and HUD determines those data are insufficient to verify the PHA's certification on the indicator due to the PHA's failure to adequately report family data, HUD will assign a zero rating for the indicator. The method for selecting the PHA's quality control sample under paragraphs (a), (b), (c) and (f) of this section must leave a clear audit trail that can be used to verify that the PHA's quality control sample was drawn in an unbiased manner. A PHA that expends less than its Federal award expenditure threshold in 2 CFR part 200, subpart F, and whose Section 8 programs are not audited by an independent auditor (IA), will not be rated under the SEMAP indicators in paragraphs (a) through (g) of this section for which the annual IA audit report is a HUD verification method. (a) Selection from the waiting list. (2) HUD verification method: The independent auditor (IA) annual audit report covering the PHA fiscal year entered on the SEMAP certification and on-site confirmatory review if performed. (3) Rating: (i) The PHA's SEMAP certification states that: (A) The PHA has written waiting list selection policies in its administrative plan and, (B) Based on the PHA's quality control samples, drawn separately for applicants reaching the top of the waiting list and for admissions, documentation shows that at least 98 percent of the families in both samples of applicants and admissions were selected from the waiting list for admission in accordance with these policies and met the selection criteria that determined their places on the waiting list and their order of selection. 15 points. (ii) The PHA's SEMAP certification does not support the statement in paragraph (a)(3)(i) of this section. 0 points. (b) Reasonable rent. (2) HUD verification method: The IA annual audit report covering the PHA fiscal year entered on the SEMAP certification and on-site confirmatory review if performed. (3) Rating: (i) The PHA's SEMAP certification states that: (A) The PHA has a reasonable written method to determine reasonable rent which considers location, size, type, quality and age of the units and the amenities, housing services, and maintenance and utilities provided by the owners; and (B) Based on the PHA's quality control sample of tenant files, the PHA follows its written method to determine reasonable rent and has documented its determination that the rent to owner is reasonable in accordance with §§ 982.507 and 983.303 of this chapter, as applicable for at least 98 percent of units sampled at the time of initial leasing, if there is any increase in the rent to owner, and at the HAP contract anniversary if there is a 10 percent decrease in the published FMR in effect 60 days before the HAP contract anniversary. 20 points. (ii) The PHA's SEMAP certification includes the statements in paragraph (b)(3)(i) of this section, except that the PHA documents its determination of reasonable rent for only 80 to 97 percent of units sampled at initial leasing, if there is any increase in the rent to owner, and at the HAP contract anniversary if there is a 10 percent decrease in the published FMR in effect 60 days before the HAP contract anniversary. 15 points. (iii) The PHA's SEMAP certification does not support the statements in either paragraph (b)(3)(i) or (b)(3)(ii) of this section. 0 points. (c) Determination of adjusted income. (2) HUD verification method: The IA annual audit report covering the PHA fiscal year entered on the SEMAP certification and on-site confirmatory review if performed. (3) Rating: (i) The PHA's SEMAP certification states that, based on the PHA's quality control sample of tenant files, for at least 90 percent of families: (A) The PHA obtains third party verification, as appropriate, of reported family annual income, the value of assets, expenses related to deductions from annual income, and other factors that affect the determination of adjusted income, and uses the verified information in determining adjusted income, and/or documents tenant files to show why third party verification was not available; (B) The PHA properly attributes and calculates allowances for any medical, child care, and/or disability assistance expenses; and (C) The PHA uses the appropriate utility allowances to determine gross rent for the unit leased. 20 points. (ii) The PHA's SEMAP certification includes the statements in paragraph (c)(3)(i) of this section, except that the PHA obtains and uses independent verification of income, properly attributes allowances, and uses the appropriate utility allowances for only 80 to 89 percent of families. 15 points. (iii) The PHA's SEMAP certification does not support the statements in either paragraph (c)(3)(i) or (c)(3)(ii) of this section. 0 points. (d) Utility Allowance Schedule. (2) HUD verification method: The IA annual audit report covering the PHA fiscal year entered on the SEMAP certification and on-site confirmatory review if performed. (3) Rating: (i) The PHA's SEMAP certification states that the PHA reviewed utility rate data within the last 12 months, and adjusted its utility allowance schedule if there has been a change of 10 percent or more in a utility rate since the last time the utility allowance schedule was revised. 5 points. (ii) The PHA's SEMAP certification does not support the statement in paragraph (d)(3)(i) of this section. 0 points. (e) HQS quality control inspections. (2) HUD verification method: The IA annual audit report covering the PHA fiscal year entered on the SEMAP certification and on-site confirmatory review if performed. (3) Rating: (i) The PHA's SEMAP certification states that an PHA supervisor or other qualified person performed quality control HQS reinspections during the PHA fiscal year for a sample of units under contract which meets the minimum sample size requirements specified in § 985.2 under PHA's quality control sample. The PHA's SEMAP certification also states that the reinspected sample was drawn from recently completed HQS inspections (i.e., performed during the 3 months preceding the quality control reinspection) and was drawn to represent a cross section of neighborhoods and the work of a cross section of inspectors. 5 points. (ii) The PHA's SEMAP certification does not support the statements in paragraph (e)(3)(i) of this section. 0 points. (f) HQS enforcement. (2) HUD verification method: The IA annual audit report covering the PHA fiscal year entered on the SEMAP certification and on-site confirmatory review if performed. (3) Rating: (i) The PHA's SEMAP certification states that the PHA's quality control sample of case files with failed HQS inspections shows that, for all cases sampled, any cited life-threatening HQS deficiencies were corrected within 24 hours from the inspection and, for at least 98 percent of cases sampled, all other cited HQS deficiencies were corrected within no more than 30 calendar days from the inspection or any PHA-approved extension, or, if any life-threatening HQS deficiencies were not corrected within 24 hours and all other HQS deficiencies were not corrected within 30 calendar days or any PHA-approved extension, the PHA stopped (abated) housing assistance payments beginning no later than the first of the month following the correction period, or took prompt and vigorous action to enforce family obligations. 10 points. (ii) The PHA's SEMAP certification does not support the statement in paragraph (f)(3)(i) of this section. 0 points. (g) Expanding housing opportunities. (2) HUD verification method: The IA annual audit report covering the PHA fiscal year entered on the SEMAP certification and on-site confirmatory review if performed. (3) Rating: (i) The PHA's SEMAP certification states that: (A) The PHA has a written policy in its administrative plan which includes actions the PHA will take to encourage participation by owners of units located outside areas of poverty or minority concentration, and which clearly delineates areas in its jurisdiction that the PHA considers areas of poverty or minority concentration; (B) PHA documentation shows that the PHA has taken actions indicated in its written policy to encourage participation by owners of units located outside areas of poverty or minority concentration; (C) The PHA has prepared maps that show various areas with housing opportunities outside areas of poverty or minority concentration both within its jurisdiction and neighboring its jurisdiction; has assembled information about the characteristics of those areas which may include information about job opportunities, schools, transportation and other services in these areas; and can demonstrate that it uses the maps and area characteristics information when briefing rental voucher holders about the full range of areas where they may look for housing; (D) The PHA's information packet for rental voucher holders contains either a list of owners who are willing to lease (or properties available for lease) under the rental voucher program; or a current list of other organizations that will help families find units and the PHA can demonstrate that the list(s) includes properties or organizations that operate outside areas of poverty or minority concentration; (E) The PHA's information packet includes an explanation of how portability works and includes a list of portability contact persons for neighboring housing agencies, with the name, address and telephone number of each, for use by families who move under portability; and (F) PHA documentation shows that the PHA has analyzed whether rental voucher holders have experienced difficulties in finding housing outside areas of poverty or minority concentration and, if such difficulties have been found, PHA documentation shows that the PHA has analyzed whether it is appropriate to seek approval of exception payment standard amounts in any part of its jurisdiction and has sought HUD approval of exception payment standard amounts when necessary. 5 points. (ii) The PHA's SEMAP certification does not support the statement in paragraph (g)(3)(i) of this section. 0 points. (h) Deconcentration bonus. (i) Half or more of all Section 8 families with children assisted by the PHA in its principal operating area at the end of the last completed PHA fiscal year reside in low poverty census tracts; (ii) The percent of Section 8 mover families with children who moved to low poverty census tracts in the PHA's principal operating area during the last completed PHA fiscal year is at least 2 percentage points higher than the percent of all Section 8 families with children who reside in low poverty census tracts at the end of the last completed PHA fiscal year; or (iii) The percent of Section 8 families with children who moved to low-poverty census tracts in the PHA's principal operating area over the last two completed PHA fiscal years is at least 2 percentage points higher than the percent of all Section 8 families with children who resided in low poverty census tracts at the end of the second to last completed PHA fiscal year. (iv) State and regional PHAs that provide Section 8 rental assistance in more than one metropolitan area within a State or region make these determinations separately for each metropolitan area or portion of a metropolitan area where the PHA has assisted at least 20 Section 8 families with children in the last completed PHA fiscal year. (2) HUD verification methods: PHA data submitted for the deconcentration bonus, the IA annual audit report covering the PHA fiscal year entered on the SEMAP certification, and on-site confirmatory review if performed. (3) Rating: (i) The data submitted by the PHA for the deconcentration bonus shows that the PHA met the requirements for bonus points in paragraph (h)(1)(i), (ii) or (iii) of this section. 5 points. (ii) The data submitted by the PHA for the deconcentration bonus does not show that the PHA met the requirements for bonus points in paragraph (h)(1)(i), (ii) or (iii) of this section. 0 points. (i) Payment standards. (2) HUD verification method: PHA data submitted on the SEMAP certification form concerning payment standards. (3) Rating: (i) The PHA's voucher program payment standard schedule contains payment standards set in accordance with 24 CFR 982.503. 5 points. (ii) The PHA's voucher program payment standard schedule contains payment standards that were not set in accordance with § 982.503. 0 points. (j) Annual reexaminations. (2) HUD verification method: MTCS report—Shows percent of reexaminations that are more than 2 months overdue. The 2-month allowance is provided only to accommodate a possible lag in the PHA's electronic reporting of the annual reexamination on Form HUD-50058 and to allow the processing of the data into MTCS. The 2-month allowance provided here for rating purposes does not mean that any delay in completing annual reexaminations is permitted. (3) Rating: (i) Fewer than 5 percent of all PHA reexaminations are more than 2 months overdue. 10 points. (ii) 5 to 10 percent of all PHA reexaminations are more than 2 months overdue. 5 points. (iii) More than 10 percent of all PHA reexaminations are more than 2 months overdue. 0 points. (k) Correct tenant rent calculations. (2) HUD verification method: MTCS report—Shows percent of tenant rent and family's share of the rent to owner calculations that are incorrect based on data sent to HUD by the PHA on Forms HUD-50058. The MTCS data used for verification cover only voucher program tenancies, and do not include rent calculation discrepancies for manufactured home owner rentals of manufactured home spaces for proration of assistance under the noncitizen rule. (3) Ratings: (i) 2 percent or fewer of PHA tenant rent and family's share of the rent to owner calculations are incorrect. 5 points. (ii) More than 2 percent of PHA tenant rent and family's share of the rent to owner calculations are incorrect. 0 points. (l) Initial unit inspections. (2) HUD verification method: MTCS report—Shows percent of newly leased units where the beginning date of the assistance contract is before the date the unit passed the initial unit inspection or, if the PHA employed the PHA initial inspection option for non-life- threatening deficiencies or alternative inspections, the timing requirements for the applicable PHA initial inspection option. (3) Rating: (i) 98 to 100 percent of newly leased units passed HQS inspection within the time period required. 5 points. (ii) Fewer than 98 percent of newly leased units passed HQS inspection within the time period required. 0 points. (m) Periodic HQS inspections. (2) HUD verification method: MTCS report—Shows percent of HQS inspections that are more than 2 months overdue. The 2-month allowance is provided only to accommodate a possible lag in the PHA's electronic reporting of the annual HQS inspection on Form HUD-50058, and to allow the processing of the data into MTCS. The 2-month allowance provided here for rating purposes does not mean that any delay in completing annual HQS inspections is permitted. (3) Rating: (i) Fewer than 5 percent of periodic HQS inspections of units under contract are more than 2 months overdue. 10 points. (ii) 5 to 10 percent of all periodic HQS inspections of units under contract are more than 2 months overdue. 5 points. (iii) More than 10 percent of all periodic HQS inspections of units under contract are more than 2 months overdue. 0 points. (n) Lease-up. (1) The indicator: (2) HUD verification method: (3) Rating: (ii) The percent of units leased or occupied by homeowners under the voucher homeownership option, or the percent of allocated budget authority expended during the calendar year that ends on or before the assessed PHA fiscal year was 95 to 97 percent. (15 points.) (iii) The percent of units leased or occupied by homeowners under the voucher homeownership option, or the percent of allocated budget authority expended during the calendar year that ends on or before the assessed PHA fiscal year was less than 95 percent. (0 points.) (o) Family self-sufficiency (FSS) enrollment and escrow accounts. (2) HUD verification method: MTCS report—Shows number of families currently enrolled in FSS. This number is divided by the number of mandatory FSS slots, as determined under § 984.105 of this chapter. An MTCS report also shows the percent of FSS families with FSS progress reports who have escrow account balances. HUD also uses information reported on the SEMAP certification by initial PHAs concerning FSS families enrolled in their FSS programs but who have moved under portability to the jurisdiction of another PHA. (3) Rating: (i) The PHA has filled 80 percent or more of its mandatory FSS slots and 30 percent or more of FSS families have escrow account balances. 10 points. (ii) The PHA has filled 60 to 79 percent of its mandatory FSS slots and 30 percent or more of FSS families have escrow account balances. 8 points. (iii) The PHA has filled 80 percent or more of its mandatory FSS slots, but fewer than 30 percent of FSS families have escrow account balances. 5 points. (iv) 30 percent or more of FSS families have escrow account balances, but fewer than 60 percent of the PHA's mandatory FSS slots are filled. 5 points. (v) The PHA has filled 60 to 79 percent of its mandatory FSS slots, but fewer than 30 percent of FSS families have escrow account balances. 3 points. (vi) The PHA has filled fewer than 60 percent of its mandatory FSS slots and less than 30 percent of FSS families have escrow account balances. 0 points. (p) Success rate of voucher holders. (2) HUD verification method: MTCS Report. (3) Rating (5 points): (A) 75 percent; or (B) The proportion of families issued rental vouchers that became participants in the program during the six month period utilized to determine eligibility for success rate payment standards under § 982.503(f) plus 5 percentage points; and [63 FR 48555, Sept. 10, 1998, as amended at 64 FR 40497, July 26, 1999; 64 FR 67983, Dec. 3, 1999; 65 FR 16733, Mar. 29, 2000; 65 FR 16823, Mar. 30, 2000; 65 FR 58875, Oct. 2, 2000; 66 FR 50005, Oct. 1, 2001; 77 FR 32018, May 31, 2012; 81 FR 80583, Nov. 16, 2016; 89 FR 38338, May 7, 2024; 90 FR 56689, Dec. 8, 2025] Subpart B—Program Operation § 985.101 SEMAP certification. (a) An PHA must submit the HUD-required SEMAP certification form within 60 calendar days after the end of its fiscal year. (1) The certification must be approved by PHA board resolution and signed by the PHA executive director. If the PHA is a unit of local government or a state, a resolution approving the certification is not required, and the certification must be executed by the Section 8 program director. (2) An PHA that subcontracts administration of its program to one or more subcontractors shall require each subcontractor to submit the subcontractor's own SEMAP certification on the HUD-prescribed form to the PHA in support of the PHA's SEMAP certification to HUD. The PHA shall retain subcontractor certifications for 3 years. (3) An PHA may include with its SEMAP certification any information bearing on the accuracy or completeness of the information used by the PHA in providing its certification. (b) Failure of an PHA to submit its SEMAP certification within 60 calendar days after the end of its fiscal year will result in an overall performance rating of troubled and the PHA will be subject to the requirements at § 985.107. (c) An PHA's SEMAP certification is subject to HUD verification by an on-site confirmatory review at any time. (Information collection requirements in this section have been approved by the Office of Management and Budget under control number 2577-0215) [63 FR 48555, Sept. 10, 1998, as amended at 66 FR 50006, Oct. 1, 2001] § 985.102 SEMAP profile. Upon receipt of the PHA's SEMAP certification, HUD will rate the PHA's performance under each SEMAP indicator in accordance with § 985.3. HUD will then prepare a SEMAP profile for each PHA which shows the rating for each indicator, sums the indicator ratings, and divides by the total possible points to arrive at an PHA's overall SEMAP score. SEMAP scores shall be rounded off to the nearest whole percent. § 985.103 SEMAP score and overall performance rating. (a) High performer rating. (b) Standard rating. (c) Troubled rating. (d) Modified rating on an indicator. (e) Modified or withheld overall rating. (2) Notwithstanding an PHA's SEMAP score, if the latest IA report submitted for the PHA under the Single Audit Act indicates that the auditor is unable to provide an opinion as to whether the PHA's financial statements are presented fairly in all material respects in conformity with generally accepted accounting principals, or an opinion that the schedule of expenditures of Federal awards is presented fairly in all material respects in relation to the financial statements taken as a whole, the PHA will automatically be given an overall performance rating of troubled and the PHA will be subject to the requirements at § 985.107. (3) When HUD modifies or withholds a rating for any reason, it shall explain in writing to the PHA the reasons for the modification or for withholding the rating. [63 FR 48555, Sept. 10, 1998, as amended at 64 FR 40498, July 26, 1999] § 985.104 PHA right of appeal of overall rating. An PHA may appeal its overall performance rating to HUD by providing justification of the reasons for its appeal. An appeal made to a HUD hub or program center or to the HUD Troubled Agency Recovery Center and denied may be further appealed to the Assistant Secretary. § 985.105 HUD SEMAP responsibilities. (a) Frequency of SEMAP assessments Annual review. (2) Biennial review for small PHAs. (i) Elects to have its performance assessed on an annual basis; or (ii) Is designated as troubled, in accordance with § 985.103. (b) Notification to PHA. (c) On-site confirmatory review. (d) Changing rating from troubled. (e) Appeals. (f) Corrective action plans. [63 FR 48555, Sept. 10, 1998, as amended at 68 FR 37671, June 24, 2003] § 985.106 Required actions for SEMAP deficiencies. (a) When the PHA receives the HUD notification of its SEMAP rating, an PHA must correct any SEMAP deficiency (indicator rating of zero) within 45 calendar days from date of HUD notice. (b) The PHA must send a written report to HUD describing its correction of any identified SEMAP deficiency. (c) If an PHA fails to correct a SEMAP deficiency within 45 calendar days as required, HUD may then require the PHA to prepare and submit a corrective action plan for the deficiency within 30 calendar days from the date of HUD notice. (Information collection requirements in this section have been approved by the Office of Management and Budget under control number 2577-0215) § 985.107 Required actions for PHA with troubled performance rating. (a) On-site reviews Required reviews for troubled PHAs. (2) On-site reviews for small PHAs. (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. (c) PHA corrective action plan. (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 program director and by the chief executive officer of the unit of government or his or her designee. (d) Monitoring. (e) Use of administrative fee reserve prohibited. (f) Upgrading poor performance rating. (Information collection requirements in this section have been approved by the Office of Management and Budget under control number 2577-0215) [63 FR 48555, Sept. 10, 1998, as amended at 68 FR 37672, June 24, 2003] § 985.108 SEMAP records. HUD shall maintain SEMAP files, including certifications, notifications, appeals, corrective action plans, and related correspondence for at least 3 years. (Information collection requirements in this section have been approved by the Office of Management and Budget under control number 2577-0215) § 985.109 Default under the Annual Contributions Contract (ACC). HUD may determine that an PHA's failure to correct identified SEMAP deficiencies or to prepare and implement a corrective action plan required by HUD constitutes a default under the ACC. Subpart C—Physical Assessment Component [Reserved] Subpart D—Small Rural PHA Assessment Source: 88 FR 30505, May 11, 2023, unless otherwise noted. § 985.201 Applicability. (a) This subpart applies to small rural PHAs as defined in § 902.101 of this chapter. (b) Small rural PHAs shall be assessed and rated on the indicators and methodology of this subpart and shall not be subject to the SEMAP requirements. § 985.203 Assessment indicators and HUD verification methods. (a) This section describes the performance indicators used to assess a PHA's designation as troubled resulting from the small rural PHA assessment. HUD will use the verification method identified for each indicator. The four indicators are determined on a pass or fail basis. (b)(1) Inspection standards. (2) HUD verification method. (3) Rating. (c)(1) Initial unit inspections. (2) HUD verification method. (3) Rating. (d)(1) Frequency of HQS inspections. (2) HUD verification method. (3) Rating. (e)(1) Unit condition enforcement. (2) HUD verification method. (3) Rating. (f)(1) PHA submission of certifications. Federal Register (2) Failure to submit. § 985.205 Determination of assessment rating. (a) High performer designation. (i) Has utilized at least 98 percent of its HCV budget authority in the two most recent calendar years, or the percent of HCV units leased by renters or occupied by homeowners in the two most recent calendar years was at least 98 percent; (ii) Did not end that calendar year with excess HAP reserves; and (iii) Did not end that calendar year in a funding shortfall or receive shortfall prevention funding from HUD. (2) HUD shall publish the calculation for determining excess HAP reserves in the Federal Register, (b) Standard performer designation. (c) Troubled PHA designation. § 985.207 Frequency of assessments. (a) Frequency of small rural PHA assessments Initial assessment. (2) Triennial assessments. (b) [Reserved] § 985.209 Troubled small rural PHAs. (a) Appeals HUD action. (2) Deciding HUD official. (b) Corrective action agreement. (1) Have a term of one year, and shall be renewable at the option of HUD; (2) Specify goals to be achieved; (3) Identify obstacles to goal achievement and ways to eliminate or avoid them; (4) Identify resources that will be used or sought to achieve goals; (5) Provide, where feasible, for technical assistance to assist the PHA in curing its deficiencies; (6) Identify a PHA staff person with lead responsibility for completing each goal; (7) Identify key tasks to reach each goal; (8) Specify time frames for achievement of each goal, including intermediate time frames to complete each key task; (9) Provide for regular evaluation of progress toward improvement; (10) Provide for the reconsideration of the PHA's designation as a troubled PHA no less than annually, and provide for the termination of the CAA when HUD determines the PHA is no longer troubled; (11) Provide that in the event of substantial noncompliance by the PHA under the CAA, HUD may (i) contract with another PHA or a private entity to administer the HCV program; and (ii) withhold funds otherwise distributable to the troubled PHA; (12) 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 CAA must be signed by the Section 8 program director and by the chief executive officer of the unit of government or his or her designee. (c) Monitoring. (d) Annual small rural assessment. (e) Use of administrative fee reserve prohibited. see (f) Upgrading poor performance rating. (g) Default under the Annual Contributions Contract (ACC). § 985.211 Small rural PHA assessment records. HUD shall maintain small rural PHA assessment files, including designations, notifications, appeals, corrective action agreements, and related correspondence for at least 3 years.