LeadingAge Prepares to Comment on New Contract Administration Documents

Regulation | January 03, 2018 | by Colleen Bloom

HUD released in December draft procurement documents that would significantly restructure 3rd party contract administration roles, responsibilities and relationships with owners/agents and properties. As initial feedback dates have been extended from Dec 22 to Jan 31 for both, LeadingAge is working on preparing comments and welcomes member feedback.

Since 2011, we have all been waiting to see how HUD would resolve the issue of restructuring and rebidding the third-party contract administration roles and duties that were contested in court. These draft procurement documents confirm previously rumored HUD plans to eliminate the current state-based contractor (PBCA) model. Under the two draft contract offerings, current PBCA roles would be separated out and bifurcated contracts issued to a national entity responsible for HAP contract renewals and portfolio risk assessment, and 5 regional entities (each with 3 subregions) responsible for MORs and processing monthly rental assistance vouchers.

According to the draft documents, upon expiration or termination of the existing 53 ACCs (which fund the current PBCA structured program of 3rd party oversight and contract administration), HUD will become the contract administrator for all HAP contracts in the multifamily housing portfolio. These documents articulate the current expectation of what the new contracts should look like in the new environment and division of duties, but are not actual solicitations for bids. That will come later, after HUD has received comments and gauged the level of interest of potential future contractors to respond to such a program offering.

As articulated in the proposed HAP Contract National Support Services documents, a national support services contractor would initiate auto-OCAF renewals, review owners requests for adjusting HAP contract rents (including budget-based rent adjustments and RCS reviews) and performing portfolio risk assessments on assigned portfolios of properties. Under the proposed HAP Contract Regional Support Services documents, a new regional support services contractors would conduct Management and Occupancy Reviews (MOR), investigate and address tenant concerns, and process monthly rental assistance vouchers.

LeadingAge is reviewing these performance work statements and preparing to comment on the proposals, and currently expect to seek the addition of clear standards of performance and deliverables related to regular communications with owner/agents; O/A and general public disclosure of information related to contractors and subcontractor roles, responsibilities and points of contact; and participation in national and state/local trade association meetings.

LeadingAge encourages member review of and comments concerning these proposed contract offerings and performance work statements.  Please submit your thoughts to us by Friday, January 26.