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Title II — DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
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(a) The Secretary may require any public housing agency (PHA) to enter into a recovery agreement, as defined by the Secretary, if the PHA has— (1) received a Public Housing Assessment System (PHAS) designation of substandard on the most recent PHAS assessment; (2) received a Section 8 Management Assessment Program (SEMAP) score of 70 percent and below, or having received two out of three years of shortfall funding; or (3) ongoing compliance deficiencies that materially impede effective housing choice voucher performance. (b) PHAs that fail to execute the agreement or meet such agreement’s requirements may be referred to the Assistant Secretary for Public and Indian Housing for progressive remedial action, including a determination of a substantial default, as appropriate and after considering the PHA’s efforts to comply.