Local HUD HUBs have been sending out HUD FASS Performance Evaluation letters notifying owners of a HUD-assisted property’s overall financial risk-rating based on the property’s annual audited financial statements. HUD’s FASS Performance Evaluation system is used by HUD to help to identify HUD-insured projects that are at risk for default or HUD-assisted projects at risk of not being able to maintain the real estate and provide essential services for the tenants. However, HUD did not provide property owners and management agents with information on the criteria used to determine a property’s overall financial risk-rating in the notifications.
At NAHMA’s Winter 2012 Meeting in Washington DC, NAHMA asked HUD to provide us with an overview of the financial risk categories for the FASS Performance Evaluation and explain how the criteria for these categories are determined. As a result, HUD’s REAC and Multifamily Office of Asset Management have provided us with copies of the FASS performance indicators for multifamily properties and synopsis of the performance assessment.
A copy of the FASS performance indicators may be found here: http://www.nahma.org/member/New%20HUD%20Docs/FASS%20Performance%20Indicators%2011-05-01.pdf
A copy of the synopsis for FASS assessments may be found here: http://www.nahma.org/member/New%20HUD%20Docs/FASS%20Synopsis%20of%20Performance%20Assessment.pdf