LeadingAge Comments on New Contract Administration Services Documents

Regulation | February 02, 2018 | by Colleen Bloom

LeadingAge comments submitted to HUD January 31 on the latest proposal for new contract administration services restructuring and competition focus on the need for broader stakeholder engagement and modifications to the proposed contracts to ensure clear and consistent communications with owner/agents.

As reported previously, HUD posted in Dec 2017 drafts of the contracts that may be used in a future solicitation for Section 8 contract administration services, dividing duties between a national contract and five regional contracts that align with the recently restructure HUD multifamily regions.

LeadingAge historically has not taken a position on the processes for or selection of specific third-party contractors for Section 8 contract administration services outsourcing (currently known as the performance-based contract administration (PBCA) program). However, we along with others national housing provider association groups, have expressed concern about the potential for duplication of efforts and delays that could be caused by the bifurcation of responsibility for inherently interrelated contract administration functions.

Our primary interests on behalf of members are, as they have been throughout the history of the PBCA program to date, to avoid undue reporting/documentation burden on owners, ensure consistency and clarity in procedures and communications, facilitate preservation, address complex transactions, and facilitate resolution to any conflicts or delays. Comments by LeadingAge submitted Jan 31 focus on these issues, taking particular exception to the total absence of information in either of the proposed contracts related to coordination and communication by and between the contracted national and regional entities and housing providers, and raising concerns about the potential impact of additional future adjustments to third-party contracts.

Additionally, just days before the extended comment period closed, a HUD Section 8 PBRA Final Recommendation Report written by Deloitte in 2016 was posted online, providing useful insights. The report analyzed current PBCA operating structures and procurement options, providing HUD with observations of current PBCA contracting, an evaluation of potential options for a new contract structure, and recommendations for a new acquisition strategy. HUD clearly adopted some but not all recommendations made in this report.

While indications are that HUD may move forward with a formalized recompetition sometime soon, LeadingAge has urged HUD to modify the process and contracts to specifically engage owners and administrators, facilitate relationship building, address our concerns regarding communications, and make certain changes to the proposed contracts.

Read LeadingAge’s comments here.