(d) The department shall establish guidelines for designating a housing authority as ''chronically poor performing'' under the monitoring program. The department shall develop these guidelines in consultation with representatives of local housing authorities, municipal officials, public housing residents and public housing industry professional organizations. If a housing authority is designated as ''chronically poor performing'', the department may appoint a chief administrative and financial officer, hereinafter referred to as CAFO, who shall be responsible for the overall administration of the housing authority. The department shall appoint the CAFO for a term of not more than 3 years. The CAFO shall be appointed solely on the basis of administrative and executive qualifications and shall be a person especially fitted by education, training and experience to perform the duties of the office. The CAFO shall not be required to be a resident of the commonwealth or of the same municipality in which the housing authority to be administered is located. The powers and duties of the CAFO shall include the following: (i) coordinating, administering and supervising financial services and activities; (ii) implementing and maintaining uniform systems, controls and procedures for financial activities; (iii) reviewing proposed contracts and obligations; (iv) reviewing the spending plan for each department; and (v) evaluating the housing authority's current annual plan under section 28A and implementing a written plan to meet the department's assessment standards established pursuant to this section, including, but not limited to, merging with another housing authority or regional housing authority. Annually not later than March 30, the CAFO shall submit a 4–year financial plan