Management and Occupancy Reviews
Q. Are there exceptions allowed to the requirement that an MOR be conducted every twelve months for contracts assigned to the PBCA?
A. When a contract is assigned to the PBCA, the PBCA must conduct the initial MOR within 12 months from the date of contract assignment. However, with prior approval from the CAOM, the PBCA may revise the date and conduct an MOR after the 12-month period if there are extenuating circumstances beyond the PBCA’s control. Additionally, subsequent MORs may be conducted within 9-15 months of the last MOR, if there are extenuating circumstances. Examples of extenuating circumstances include such instances such as weather related issues, regional “groupings” of MORs, timing of multiple contract assignments for a given property etc.
Q. When conducting an MOR, what is the PBCA’s follow up responsibility for REAC physical inspection deficiencies for EH&S and other noted discrepancies in the report?
A. According to guidance provided in the May 24, 2001, memorandum from Fred Tombar regarding “Revised Guidance for Oversight of Multifamily Housing Physical Inspections”, the PBCA should use reasonable judgment to follow-up on a sample of EH&S and other deficiencies cited on the REAC physical inspection with a score of 60 and above. Occupied units may be included in the sampling, if necessary.
Q. What is the PBCA’s responsibility for conducting an MOR on a property with multiple subsidy contracts?
A. The PBCA should conduct and issue one MOR report per property per year for properties with multiple subsidy contracts.
Q. What is the extent of the PBCA’s review of each tenant file when conducting an MOR?
A. Existing guidance related to tenant file reviews do not specifically address the number of years of documentation the reviewer should assess. Therefore, in the interim, the PBCA will be responsible for reviewing the original documents in the tenant file for the initial move-in year and all information relevant for the current year. In the event an error is found in a specific tenant file, a full audit of that file should be conducted as far back as the documentation and problem exist.
Q. Who is responsible for performing physical inspections for contracts assigned to Performance Based Contract Administrators (PBCA)?
A. REAC or an agent for REAC is responsible for performing the physical inspections in accordance with the protocols created by REAC. The PBCA is responsible for follow-up and monitoring of the owners activity to correct any issues cited in the review.
Q. What is the PBCA’s current responsibility for follow-up on REAC physical inspections (IBPS #16) for inspection scores of 60 and above? A. As noted in the PB-ACC, further clarification is provided for follow-up on REAC physical inspections outlined in the May 24, 2001, memorandum from Fred Tombar, Subject: Revised Guidance for Oversight of Multifamily Housing Physical Inspections. The policy as stated in the memorandum for inspection scores of 60 and above are as follows:
- The owner has been instructed to make required repairs indicated in the REAC inspection as part of their ongoing maintenance program.
- The PBCA should contact the owner
following notification of an
inspection where EH&S has been cited.
- The PBCA must confirm the notification in writing to the owner and update REMS. The owner has 72 hours to certify to the correction and mitigation of EH&S deficiencies.
- The PBCA should enter into iREMS the date of receipt (or non-receipt) of the certification.
- Should an owner fail to correct or mitigate EH&S deficiencies within 72 hours, the PBCA should make every attempt to obtain compliance. If the owner does not comply, the PBCA should make note in iREMS and notify the Hub/PC immediately.
Departmental Enforcement Center (DEC)
Q. When a property has been referred to the DEC, what is the contractual responsibility of the PBCA under the ACC?
A. Contracts that are assigned to a PBCA may subsequently have a property referral to the DEC and will require coordination of contract administration activities between HUD and the PBCA. The PBCA is responsible for a number of tasks that will require a determination from HUD prior to performance of the task. The CAOM will serve as the point of contact for the PBCA on all matters pertaining to MORs, contract rent adjustments, HAP contract renewals, and follow-up on the results of a REAC physical inspection. The PBCA should contact the CAOM if any of the aforementioned IBPS tasks are scheduled or submitted to the PBCA for processing. The CAOM will contact the DEC for direction on whether to act on any of the above IBPS tasks and communicate the decision to the PBCA.
OAHP Office of Affordable Housing Preservation (formerly OHMAR)
Q. If a project is assigned to the PBCA, then subsequently referred to OAHP, is servicing of this project returned to HUD field office staff or does it remain with the PBCA?
A. The PBCA will continue to oversee the Section 8 Contract Administration. All communication with OAHP will flow through the field office. Any information provided to the HUD field office by OAHP will be sent to the PBCA as applicable.
Q. What is the Performance Based Contract Administrator’s (PBCA) responsibility for monitoring the Reserve for Replacement Account?
A. Monitoring the Reserve for Replacement Account is the responsibility of HUD since this is considered an FHA related activity. The purpose of the account is to provide for periodic replacement of physical components of the property. These replacements preserve the asset as collateral for the mortgage. However, when the PBCA processes a AAF, the contractor will calculate the new monthly deposit amount and forward the information to HUD for processing the HUD-9250. In addition, when a budget based rent increase is submitted and an increase to the monthly deposit has been requested, the contractor will review the request to ensure the documentation submitted supports the increase in the month deposit. Once approved the information is submitted to HUD for processing the HUD-9250.
Q. For Section 202/811 properties, will HUD deduct debt service payments before funds are sent to the CA?
A. HUD will deduct debt service payments automatically once the voucher payment has been entered into LOCCS (Line of Credit Control System). The mortgage offset or debt service amount will reduce the amount of the HAP payment to the PBCA. All 202/811 offsets can be viewed in the Portfolio Offset screen in LOCCS.
Q. What is the appeal process for Owners who disagree with the PBCA’s decision concerning a Rent Comparability Study (RCS)?
A. The process of Owner Appeals is addressed in Chapter 9 of the Section 8 Policy Renewal Guidebook. Chapter 9, Section 9-21 describes the process, obligations, and time frames for the owner and HUD/CA. If the PBCA finds the RCS deficient, the PBCA will notify the owner in writing of the outstanding issues, allowing for a revised submission. If the resubmitted RCS remains flawed, the PBCA will notify the owner in writing that the RCS is rejected. Owners objecting to the decision of the PBCA can submit their appeal of the RCS to the Hub Director. If the Hub Director determines that the appeal has merit he may issue a short-term renewal to allow the appeal time to proceed. (See Chapter 9, Section 9-21 A-D for an in-depth discussion of the process.) Throughout Section 9-21, the Program Center Director is referenced without identifying the appropriate PBCA counterpart. To clarify, for the PBCA, the staff designation equivalent to the Program Center Director is the PBCA Director.
Q. What is the multifamily help desk systems number?
A. The multifamily help desk systems number is 1-800-767-7588. The help desk supports TRACS, REMS, DAP and MDDR. The hours of operation is Monday thru Friday 9am till 8pm EST.
Q. Will the PBCA have systems access to physical inspection reports and financial statement information?
A. Yes, the PBCA will receive access. The PBCA user must be assigned to one or more contracts associated with the property and are assigned a REMS PBCA role.
Q. What are the correct event tracking date entries for REMS to record the date of owner notification of EH&S deficiencies and the date owner mitigated the EH&S deficiencies?
A. The correct data entry references are as follows:
- Owner notified of Outstanding EH&S Deficiencies
- PBCA should enter the date they called the owner to advise of the EH&S deficiencies
- Owner confirmed that EH&S Deficiencies have been mitigated
- PBCA should enter the date the owner signed the certification
Q. What is the Performance Based Contract Administrator’s (PBCA) responsibility with respect to the payment of Rent Supplement and Rental Assistance Payments?
A. The PBCA is only responsible for payment of Section 8 Housing Assistance Payments. Owners of properties with Rent Supplement or Rent Assistance Payment subsidies will continue to submit the voucher separately to TRACS for payment.
Q. In what capacity will the PBCA work with the Multifamily Hub Office and their Program Centers?
A. The PBCA’s first line of contact is always the Contract Administration Oversight Monitor (CAOM) in the Multifamily HUB for ACC contract related issues. The PBCA will submit their monthly invoices, yearly work-plans, etc, directly to the CAOM. For project related information, the PBCA should contact the project manager responsible for that property.
Q. What is the fiscal year of the Section 8 Contracts?
A. There is no fiscal year for Section 8 contracts, however there is a contract term. The term or length of the contract is specified in the contract as well as the specific effective dates.
Q. When will the CA be responsible for handling special claims?
A. The CA will not be responsible for handling Special Claims until they have begun making HAP payments to the O/A. Once they have begun making the payments then the CA will be responsible for handling the Special Claims.
Q. Can the Performance Based Contract Administrator (PBCA) realign their Annual Contributions Contract (ACC) term to coincide with their fiscal year?
A. No. This realignment would be in violation of the ACC and therefore cannot be approved. The term of the ACC is defined as three years from the “start date”, in other words, the first day of the month in which HUD assigns contracts to the PBCA. The payment year also begins on the “start date”. The ACC also provides that “Each month, HUD will evaluate the PHA’s performance in providing contract administration services for all covered units under the ACC to determine the amount of earned incentive fees paid quarterly”. Therefore, any adjustment of the payment year to conform to the PBCA’s fiscal year would result in certain payments approved for less than a quarterly period and would be in noncompliance with the ACC.
Q. Who is responsible for processing requests to increase the meal charges under the mandatory meals program, the PBCA or HUD?
A. The mandatory meals program is guided by the language in 24 CFR 278 and is not tied directly to the Section 8 program but to the insurance although the charges must be included in the lease. HUD will be responsible for processing requests for increases to the mandatory meals program since the meals program is considered a stand-alone operation within the property, must be self-supporting and cannot utilize any Section 8 funds.