The Office of Receivership Oversight (ORO) has developed a five-phase
process to restore public housing authorities in receivership to
successful and sustainable operation. Prior to a PHA entering receivership
status, HUD, through its public housing field offices, provides
technical assistance to the troubled PHA to address critical issues
and determine the causes of its current problems. If this effort
does not produce the necessary improvement, and the PHA is found
to be in substantial default of its Annual Contributions Contract
with HUD, the Secretary may put the PHA into administrative receivership.
Phase 1, Situation Assessment, entails additional fact-finding
and diagnosis by HUD staff or contractors to determine the extent
of the PHA's problems. HUD often discovers many additional problems
once the receivership team has had an opportunity to examine the
PHA's files and interview employees. Situation Assessment is continuously
performed throughout the duration of the receivership to monitor
During Phase 2, Stabilization, the focus is on addressing critical issues that may impede a complete recovery, while simultaneously maintaining current operations and program delivery. Adjustments may occur in any of the following areas:
- Organization and Staffing
- Procurement and Contract Management
- Property Management
- Resident Relations
- Capital Funds and Development
- Information Technology
Phase 3, Recovery Plan Development, involves developing a detailed
plan to cure the deficiencies that led to the receivership, and
repositioning the PHA for rapid recovery and sustainable improvement.
The Recovery Plan addresses deep seated problems investigated during
the Situation Assessment phase.
Phase 4, Recovery Plan Implementation, is the implementation and
further revision of the Recovery Plan developed in Phase 3. This
phase emphasizes improving the operational structure and financial
condition of the PHA while introducing processes and procedures
that will standardize efficient and professional PHA operations.
Human, physical, systems, financial and managerial resources are
allocated in an integrated and strategic manner to expedite recovery.
Experienced managers are recruited to fill key vacancies. HUD often
relies on contractors to provide specialized assistance or training
to the PHA and its staff.
The final phase, Transition to Local Control/Sustainability, focuses
on positioning the PHA for transition out of HUD administrative
receivership and back to local control while sustaining the improvements
made to PHA operations. Usually, at this point, a non-voting Advisory
Board is appointed and trained by HUD. The Advisory Board will convert
to a fully-governing Board of Commissioners for the PHA upon termination
of the receivership. Before local control is granted, the PHA management
and its Advisory Board must exhibit evidence of normal and professional
Once HUD determines that the PHA has sufficiently recovered, the PHA is transitioned to local control. The duration of a HUD receivership varies depending on individual circumstances, such as the size of the PHA, the nature and complexity of the PHA's problems, PHA staff capability, and the pace of recovery. The ORO works with HUD's Office of Field Operations to implement post-receivership monitoring provisions to ensure that the PHA continues on the path of improvement started during the receivership.