This final rule implements a proposed rule published on June 30, 1998 to provide for the assessment of the physical condition, financial health, management operations and resident services in public housing. The rule also provides for a Troubled Agency Recovery Center to improve poor performers, and an Enforcement Center and possible receivership for agencies that fail to improve performance. Public housing agencies that fail to post significant improvement within a year will be automatically referred to the new HUD Enforcement Center, which will institute proceedings for judicial receivership to remove failed agency management. The purpose of the new Public Housing Assessment System is to enhance public trust by creating a comprehensive management tool that effectively and fairly measures a PHA's performance based on standards that are objective, uniform and verifiable, and provides real rewards for high performers and consequences for poor performers. The final rule takes into consideration public comment received on the June 30, 1998 proposed rule.