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On July 1, the U.S. Department of Housing and Urban Development (HUD) announced its selectees for the new performance-based contract administration (PBCA) contracts expected to go into effect on October 1.
In states where a change in PBCA is expected, there are some key communications that owners must diligently be on the look-out for, or risk delays in administrative processing and/or missed subsidy payments.
However, recent developments in the form of protests filed by losing applicants in more than 26 states are having a substantial impact on the hoped-for smooth transition. During a phone call on July 29, the acting deputy assistant secretary for multifamily housing, Janet Golrick, confirmed that HUD will be making a formal announcement that it is suspending any and all transition activity until further notice in states where there is a protest filed.
However, the agency is moving forward with transition plans and with implementation of new PBCA contracts in those states where no protest has been filed. This information will be posted to PBCA.
Golrick further indicated that HUD has filed with the U.S. Government Accountability Organization (GAO) a request to dismiss all protests, and that HUD will conduct future phone calls with LeadingAge and other housing group representatives as details become available regarding the status of the protests and developments regarding suspended transition plans.
In the meantime, owners of properties in states under protest where a change of PBCAs is expected to occur should expect to operate as usual with existing PBCA’s until their current contracts expire on September 30, this includes the scheduling and participation in Management Occupancy Reviews (MOR) during the month of September.
However, at this time, HUD indicated that no MORs should be scheduled into October or later.
Where there is no protest and a PBCA change is expected, owners can expect the incoming PBCA to follow the timeframes outlined below:
In plain language, no MOR reviews are intended to be conducted in the last 30 days of the existing ACC term. All appeals of the MOR rating received within 45 days of the ACC expiration date are to be forwarded to the local MOR office.
Regarding adjustment of Rents and HAP contracts, the current PBCA is expected to diligently continue processing all actions (including issuing approval letters and rent schedules) up to the actual cut-over date, with the noted exception of new packages received within the final 10 days of the current ACC.
All appeals of rent adjustments, rent comparability studies or contract renewal not completed by the ACC expiration date are to be forwarded to the local HUD office for review.
Regardless of status of protests, where a PBCA change may occur, owners must remain vigilant in looking for and responding to communications from the new PBCA, as failure to respond could result in delays in subsidy payments, or other missed information and opportunities. To help us know what is actually happening in the states, we ask you to share with us significant communications you may receive from incoming or current PBCA’s regarding the status of the awards and transition plans.
Please send your communications to Colleen Bloom, firstname.lastname@example.org, and copy Alayna Waldrum, email@example.com, and Nancy Libson, firstname.lastname@example.org, with “PBCA transition” or “PBCA communications” somewhere in the subject line.