Draft_PWS_9.23.2018.docx

PERFORMANCE WORK STATEMENT

Background

In recent years, Federal Housing Authority (FHA) has seen an increase in its volume of FHA insurance products due to the decrease in available financial credit extended by commercial banks and other financial institutions. The success of these products has increased their use, creating a backlog of processing underwritten applications nationwide. This backlog has caused HUD to experience unacceptable delays and extended processing time. Department of Housing and Urban Development (HUD) has developed a standard operating procedure, which contains reference tools in the Multifamily Accelerated Process (MAP) Guide Appendix, checklists and punch lists for processing and underwriting Sections 221(d)(4), 207/223(a)(7) and 223(f) applications. These checklists and punch list are used to assemble the loan application package.

There is a continuing need for Contractor support services. The lapse in Contractor support services has had a detrimental impact to the agency. The Pre-Transformation staffing level was 470. Staffing is 25% below the target post-transformation of 305. Multifamily’s current staffing level is 230. This is exacerbated by the fact that production loan volume is up (70%, from FY16 – FY17). Target response/processing times are lagging due to capacity. Contractor support for loan underwriting is required to relieve the staffing shortage (which is expected to continue into the foreseeable future) and to address the increase in new construction or substantial loan application volume.

1 General Information

1.1 Introduction

The U.S. Department of Housing and Urban Development (HUD) - Office of Multifamily Housing and the Office of Healthcare Programs is seeking Contractor support for project management, loan insurance underwriting, loan closing and monitoring after loan closing/post-loan closing administration for FHA loans under Sections 221(d)(4) new construction or substantial rehabilitation of apartments, 223(f) refinancing or purchase of existing apartments and 223(a)(7) refinancing of FHA insured mortgages. Contractor support is for two (2) Housing Programs: Office of Multifamily Housing Programs (OMHP) and Office of Residential Care Facilities (ORCF). These services are mission critical and considered to be vital to both program offices and are required to support FHA mortgage insurance processing on an as needed basis. Therefore, each loan application may not require all the specific tasks/scope of work identified in the PWS. For example, the Contractor will be assigned the loan underwriting/processing but not the closing support services. The loan applications being processed are ongoing current requests and backlog files that are susceptible to causing unacceptable delays in processing applications for FHA mortgage insurance within established time-frames.

The objective is to decrease the current backlog of applications and process the loan application within the established time-frames to a maximum of twenty (20) calendar days for 223(a)(7); thirty-five (35) calendar days for 223(f) and forty-five (45) calendar days for 221(d)(4) of assignment from the originating Multifamily Housing Point of Contact (MF HUD POC) or ORCF Workload Manager in accordance with the MAP Guide or ORCF’s LEAN Handbook.

Office of Multifamily Housing Programs The Office is responsible for the overall management, development, direction and administration of HUD's Multifamily Housing Programs. Congress created the Federal Housing Administration (FHA) in 1934. FHA became a part of the Department of Housing and Urban Development's (HUD) Office of Housing in 1965. FHA mortgage insurance is not a subsidy or direct loan, but insurance in the event the borrower defaults on the loan. FHA’s OMHP provides insurance to approved lenders to facilitate the construction, rehabilitation, repair, refinancing, and purchase of multifamily housing projects such as apartments and cooperatives. The section 221(d)(4) insures mortgages for the new construction or substantial rehabilitation of rental housing. The Section 223(f) program insures loans for the purchase or refinancing of existing rental properties financed with conventional or FHA loans. The Section 223(a)(7) program offers a streamlined refinancing option for multifamily properties already insured by FHA and can reduce debt service and free up operating income. A lender processes and underwrites the loan and submits the Firm Commitment loan application package to the local HUD Office in one of five regions: Northeast, Southeast, Southwest, Midwest and the West.

The assigned MF HUD POC for each Regional Center, Regional Satellite Office or Headquarters will notify, and coordinate assigned loans to the Contractor with the National Work Share Coordinator. MF has a five-Region field structure. Each of the five Regions includes one Regional Center and one or two Regional Satellite Offices. The Regions are as follows:

1. Southwest Region: Fort Worth (Regional Center) and Kansas City (Regional Satellite Office); (Field Offices: Albuquerque, Des Moines, Houston, Little Rock, New Orleans, Oklahoma City, Omaha, St. Louis, San Antonio, Shreveport, Tulsa);

2. Midwest Region: Chicago (Regional Center), Detroit and Minneapolis (Regional Satellite Offices); (Field Offices: Cleveland, Columbus, Indianapolis, Milwaukee);

3. Southeast Region: Atlanta (Regional Center) and Jacksonville (Regional Satellite Office); (Field Offices: Birmingham, Caribbean, Columbia, Greensboro, Jackson, Knoxville, Louisville, Miami, Nashville);

4. Northeast Region: New York (Regional Center) Boston and Baltimore (Regional Satellite Offices); (Field Offices: Buffalo, Charleston, Hartford, Manchester, Newark, Philadelphia, Pittsburgh, Providence, Richmond, Washington); and

5. West Region: San Francisco (Regional Center) and Denver (Regional Satellite Office); (Field Offices: Honolulu, Las Vegas, Los Angeles, Phoenix).

Office of Residential Care Facilities HUD's FHA Section 232 program is authorized by Section 232 of the National Housing Act (12 U.S.C. § 1715w). It is administered by the Office of Residential Care Facilities (ORCF) to insure mortgage loans to facilitate the construction and substantial rehabilitation of nursing homes, intermediate care facilities, board and care homes, and assisted-living facilities. Section 232/223(f) allows for the purchase or refinancing with or without repairs of existing projects not requiring substantial rehabilitation.

These programs allow for long-term, fixed rate financing up to 40 years for new and rehabilitated properties and up to 35 years for existing properties without rehabilitation that can be financed with Government National Mortgage Association (GNMA) Mortgage Backed Securities.

1.2 Background

HUD's Office of Multifamily Housing Programs (OMHP) To streamline OMHP's application process, HUD developed Multifamily Accelerated Processing (MAP), in which Lenders are delegated processing, due diligence and underwriting authority to decrease the processing time of each application from origination to approval. The MAP Guide is on OMHP's website and provides mortgage insurance program descriptions, borrower and Lender eligibility requirements, application requirements, underwriting standards for all technical disciplines and construction loan administration requirements. The first step in underwriting/processing a loan application is for a borrower to contact an approved Multifamily MAP Lender and request a concept meeting with the local MF HUD office with geographical jurisdiction over the property.

Office of Residential Care Facilities (ORCF) To streamline ORCF's application process, HUD developed a LEAN process in 2008 for Section 232 applications. HUD's new LEAN process employs a standardized work product and process, Exhibits A-G, to obtain a consistent, timely result. ORCF's Standardized Punch Lists, Exhibits will be posted to the SharePoint site by ORCF contract staff and evaluated by ORCF’s Workload Managers, Contracting Officer Representative (COR) for approval and submission to ORCF’s Loan Committee (LC) for consideration of authorization of the Firm Commitment. ORFC often begins its legal review immediately when the Firm Commitment Application, Form HUD-90022-ORCF is submitted to cut down the time between Firm Commitment issuance and closing. ORCF polices are established in the LEAN Handbook. Whichever process is used, applications for mortgage insurance are assembled and underwritten by FHA-Approved Lenders before being submitted to HUD for processing of the Firm Commitment.

1.3 Constraints

The Contractor shall adhere to the rules, regulations, laws, standards and conventions identified by HUD as outlined in Section 207 and Section 232 of the National Housing Act.

The Contractor is required by law to abide by all applicable regulations, publications, manuals, guidebooks, handbooks and policies, including administrative procedures to adequately perform loan underwriting services for HUD’s sections 221(d)(4), 223(f) and 223(a)(7) FHA insurance-backed loans.

The Contractor shall strictly adhere to and complete HUD’s MAP Guide Appendix, punch list and/or checklist documents for processing, underwriting and closing the assigned insured loan applications. The punch list shall assist the Contractor with addressing items of concern during the processing, underwriting and closing of the insured loan applications. The HUD MF POC, ORCF's Workload Manager, or Subordinate COR will answer questions the Contractor may have regarding current Mortgagee Letters.

The Contractor shall obtain the pay.gov payment confirmation fee (e.g. application and closing) receipt from the Lender for all the required programs fees for the mortgage insured loan.

The Lender will utilize the online payment system to pay all Multifamily and Healthcare Programs Fees at pay.gov:

https://www.pay.gov/public/form/start/67950760.

The Contractor shall abide by the published Mortgagee Letters and Handbooks which may be accessed through the website at:

https://www.hud.gov/program_offices/administration/hudclips The Contractor shall abide by HUD regulations as outlined in 24 CFR Part 207 of the National Housing Act which may be accessed through the website at:

https://www.gpo.gov/fdsys/browse/collectionCfr.action?collectionCode=CFR The Contractor shall abide by the MAP Guide (guidebook) as modified by Housing Notices and Mortgagee Letters which may be accessed through the website at:

https://www.hud.gov/program_offices/administration/hudclips/guidebooks/hsg-GB4430 For Section 232 projects, the Contractor shall abide by polices established in the LEAN Handbook.

https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh/42321

1.4 Description of Services

HUD seeks Contractor support for project management, loan insurance underwriting, loan application closing and post-loan closing administration for FHA loans under Section 221(d)(4), 223(f) and 223(a)(7). The Contractor support is for two (2) Housing Programs, the Office of Multifamily Housing Program (OMHP) and Office of Residential Care Facilities (ORCF). These services are required to support FHA mortgage insurance processing on an as needed basis. Therefore, each loan application may not require all due diligence functions identified in the PWS. Detailed descriptions of specific tasks are provided in Section 5.

1.5 Non-Personal Services

This is a non-personal services contract to provide underwriting and closing support services for The Office of Multifamily Housing Programs (OMHP) and Office of Residential Care Facilities (ORCF) for FHA insured mortgages under Sections 221(d)(4), 223(f) and 223(a)(7). The Government will neither supervise Contractor employees nor control the method by which the Contractor performs the required tasks. Under no circumstances shall the Government assign tasks to, or prepare work schedules for, individual Contractor employees.

It shall be the responsibility of the Contractor to manage its employees and to guard against any actions that are of the nature of personal services, or give the perception of personal services. If the Contractor feels any action constitutes, or is perceived to constitute personal services, it shall be the Contractor’s responsibility to notify the Contracting Officer immediately. These services shall not be used to perform work of a policy or decision-making nature, i.e. inherently Government functions which are reserved to HUD. All decisions relative to programs supported by the Contractor shall be the sole responsibility of the Government.

1.6 Place of Performance

The services to be performed under this contract shall be performed at the Contractor’s facility.

1.7 Hours of Operation

The Contractor shall always maintain an adequate workforce for the uninterrupted performance of all tasks defined within the Contract when the Government facility is not closed. Government agencies will not be available during scheduled holidays, inclement weather, weekends or after duty hours.

The Contractor shall provide services every Monday through Friday, except for Federal Holidays designated for the Washington, D.C., Metropolitan area. The Contractor shall establish hours from 8:30 a.m. to 5:30 p.m., Eastern Standard Time (EST).

1.8 Special Qualifications

The Contractor’s underwriters are required to have one-year experience in FHA mortgage insurance underwriting, processing and loan closing for multifamily and healthcare programs in accordance with OMHP or ORCF guidance. This includes but not limited to review of mortgage insurance application; third-party reports; the lender’s underwriting recommendations and either concur with the lender’s recommendations for approval or rejection of the application based on the mortgage insurance underwriting in the Multifamily Application Processing (MAP) Guide or ORCF’s LEAN Handbook; and complete the loan insurance acceptance for processing or rejection process within the HUD established timeframes. The Contractor’s underwriter shall abide by all applicable regulations, publications, manuals, guidebooks, handbooks and policies and procedures in the performance of this contract.

1.9 Post Award/Kickoff Conference

The Contractor shall attend any post award conference convened by the contracting activity or contract administration office in accordance with FAR Subpart 42.5. The Government intends to convene a Post Award Conference with the Contractor within ten business days after contract award. The Contracting Officer will notify the Contractor of the specific date, location, and agenda within five business days after contract award.

The Contracting Officer, Contract Officer Representative (COR) and other Government personnel, as appropriate may meet periodically with the Contractor to also review Contractor's performance, requirement status, etc. The Contractor will meet at HUD Headquarters in Washington, DC for the post award meeting. The purpose of this meeting is to establish a mutual understanding of the contract objectives and scope of work. Participants in this meeting shall include the Contractor and other government employees. This meeting will be scheduled within thirty (30) calendar days after the contract award. The COR and other Government employees will answer questions the Contractor may have and provide the Contractor with the location of current HUD regulations such as Housing Notices, Mortgagee Letters, Handbooks and Guidebook pertaining to Multifamily and Healthcare programs.

1.10 Status Meetings

At these meetings, the Contracting Officer will apprise the Contractor of how the Government views the Contractor's performance or progress of the requirement. The Contractor shall apprise the Government of problems, if any, being experienced. Appropriate action shall be taken to resolve outstanding issues. These meetings shall be at no additional cost to the Government. Post award conference and subsequent meetings may be held via teleconference.

1.11 Contractor Travel

The Contractor shall be required to travel to HUD Headquarters for a four-day Multifamily Accelerated Processing (MAP) and ORCF training period. The training shall be conducted within thirty (30) calendar days of the contract award.

Training will be arranged by OMHP and shall be for the Contractor’s underwriters, project manager and its Key Personnel. Prior to travel (each planned trip) the Contractor shall coordinate with and receive Government authorization from the COR for all travel. The Contractor shall be responsible for obtaining all passenger transportation, lodging and subsistence. Reimbursement of Continental United States (CONUS) travel costs will be in accordance with the Federal Travel Regulation in accordance with FAR 31.205-46. The Contractor shall travel using the lower cost mode transportation commensurate with the mission requirements. When necessary to use air travel, the Contractor shall use the tourist class, economy class or similar lodging accommodations to the extent they are available and commensurate with the mission requirements. HUD will not reimburse Contractor’s local travel. Local travel is defined as travel within 50 miles of Washington, DC. Note: The Joint Travel Regulation (JTR) applies to OCONUS travel.

2 Definitions and Acronyms

2.1 Definitions

Access: the ability to obtain, view, read, modify, delete, and/or otherwise make use of information resources.

Calendar Day: Any day of the calendar week.

Checklist or Punch list: Document(s) used for reviewing and assuring completion of HUDs processing, underwriting and closing criteria and requirements have been satisfied.

Contracting Officer (CO): A person with authority to enter into, administer, and/or terminate contracts and make related determinations and findings on behalf of the Government. Note: the only individual who can legally bind the Government.

Contracting Officer Representative (COR): An employee of the U.S. Government appointed by the Contracting Officer to perform contract administration activities in regard to technical issues. This individual has authority to provide technical direction to the Contractor as long as direction is within the scope of the contract, does not constitute a change and has no funding implications. This individual does NOT have authority to change the terms and conditions of the contract.

Contractor: A supplier or vendor awarded a contract to provide specific supplies or service to the Government. The term used in this contract refers to the prime.

Contractor Employee: an employee of the prime Contractor or of any subcontractor, affiliate, partner, joint venture, or team members with which the Contractor is associated. It also includes consultants engaged by any of those entities.

CNA: A CNA is a due diligence report commonly used in the multifamily industry to examine current physical conditions at properties, specify repairs/replacements needed immediately and to budget for long-term capital repair and replacement needs during the life of an asset.

CNA eTool: an automated process for preparation, review, submission, approval and periodic updating of capital needs assessments.

Defective Service: A service output that does not meet the standard of performance associated with the Performance Work Statement.

Deliverable: Anything that can be physically or electronically delivered but may include non-manufactured things such as meeting minutes or reports.

Government Furnished Property (GFP): Government-furnished property means property in the possession of, or directly acquired by, the Government and subsequently furnished to the Contractor for performance of a contract. Government-furnished property also includes Contractor-acquired property if the Contractor-acquired property is a deliverable under a cost contract when accepted by the Government for continued use under the contract.

Key Personnel: “Personnel” means employees of the Contractor, or any subcontractor(s), affiliates, joint venture partners, or team members and consultants engaged by any of those entities.

Lender Quality and Monitoring Division: This Division is in OMHP. They are responsible for approving Lenders who wish to become a MAP Lender and assuring that approved MAP Lenders underwrite and close the insured HUD applications in compliance with the MAP Guide and other HUD published guidelines, standards and requirements. They review the quality of closed loans, poor performing loans, or loans that are currently in default and monitor MAP Lenders on an ongoing basis. Their monitoring requirements and quality control guidelines are outlined in our MAP Guide.

Loan Documents: Any required papers such as but not limited to: HUD forms, templates, appendix, letters, applications, punch lists, checklists, supporting documentation and third-party reports required to complete the underwriting process for the FHA loan for approval or rejection.

MAP Guide: Multifamily Accelerated Processing (MAP) is a guidebook designed to establish national standards for approved lenders to prepare, process and submit loan applications for Federal Housing Administration (FHA) multifamily mortgage insurance. The MAP Guide only applies to FHA multifamily mortgage insurance programs.

Mission-Critical system: means an information technology or telecommunications system used or operated by HUD or by a HUD Contractor, or organization on behalf of HUD, that processes any information, the loss, misuse, disclosure, or unauthorized access to, or modification of which would have a debilitating impact on the mission of the agency.

Pay.gov: An online payment system for Lenders to pay for all Multifamily and Healthcare mortgage insurance program fees.

Performance Requirements Summary (PRS): A listing of the performance requirements under the contract that are to be evaluated by the Government on a regular basis, performance indicators for these requirements, performance standards for these requirement and surveillance methods to be used to determine if performance standards are met.

Performance Standard: The Contractor's performance level required by the Government.

Performance Work Statement (PWS): A statement of work for performance-based acquisitions that describe the required results in clear, specific and objective terms with measurable outcomes.

Personal Identity Verification (PIV) Cards: Allows contractor personnel access to Multifamily FHA internal software systems. The Federal Government-issued identification credential (i.e., identification badge).

Physical Security: Actions that prevent the loss or damage of Government property.

Quality Assurance (QA): Policies and procedures adopted by the Government to ensure that supplies and services acquired under Government contracts conform to the contract’s quality requirements.

Quality Assurance Surveillance Plan (QASP): A plan describing how the agency will survey, observe, test, sample, evaluate and document the Contractor’s performance in meeting critical performance standards identified in the contract.

Quality Control (QC): All necessary measures taken by the Contractor to assure that the quality of an end product of service shall meet contract requirements.

Sensitive Information: any information of which the loss, misuse, or unauthorized access to, or modification of, could adversely affect the national interest, the conduct of federal programs, or the privacy to which individuals are entitled under section 552a of title 5, United States Code (the Privacy Act), but which has not been specifically authorized under criteria established by an Executive Order or an Act of Congress to be kept secret in the interest of national defense or foreign policy.

Service Contract: A contract that directly engages the time and effort of a Contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply.

Subcontractor: Any person, other than the prime Contractor, who offers to furnish or furnishes any supplies, material, equipment, or services of any kind under a prime contract or a subcontract entered into in connection with such prime contract, and any person who offers to furnish or furnishes general supplies to the prime Contractor or a higher tier subcontractor. The Government does not have privity of contract with a subcontractor.

Subordinate Contracting Officer Representative: An employee of the U.S. Government that perform contract administration activities regarding technical issues who assist the COR. This individual does NOT have authority to change the terms and conditions of the contract. The Subordinate COR will receive a delegation memorandum from the Contracting Officer.

Work Day: Defined as 8 hours per day the Contractor provides services in accordance with the contract. Every official work day of the week which are days between and including Monday to Friday. This does not include public holidays and weekends.

Work Week: Defined as 40 hours per week, Monday through Friday, unless specified otherwise.

2.2 Acronyms

ACWP- Actual Cost of Work Performed AQL- Acceptable Quality Level CFO or OCFO- Office of the Chief Financial Officer of HUD CFR- Code of Federal Regulations CIO or OCIO- Office of the Chief Information Officer of HUD CO- Contracting Officer COB- Close of Business CONUS- Continental United States (OCONUS Outside of Continental United States) COR- Contracting Officer Representative CPO- Office of the Chief Procurement Officer of HUD CR- Change Request CNA-Capital Needs Assessment CNA-eTool-Capital Needs Assessment Electronic System DACA- Days After Contract Award DAP- Development Application System EST -Eastern Standard Time (U.S.)

FHA- Federal Housing Administration GFP- Government Furnished Property HEROS- HUD Environmental Review Online System: an online system for developing, documenting, and managing environmental reviews.

HITS/HUDNET- HUD Information Technology Service HN -Housing Notice Hub/Program Center/Regional Center/Satellite- Multifamily HUD Offices HUD- U.S. Department of Housing and Urban Development HUD-2530 - Previous Participation Certification Property Submission Hub/PC- the HUD or Program Center office HUDAR- HUD Acquisition Regulation iREMS -Integrated Real Estate Management System IT -Information Technology LAN- Local Area Network LEAN- is not an acronym, but rather is a methodology to increase efficiency by reducing waste.

LQMD- Lender Quality and Monitoring Division MAP (Guide)- Multifamily Application Processing (Guidebook 4430.G) MF- Multifamily ML- Mortgagee Letter NHA- National Housing Act RECAP- Office of Recapitalization OCPO- Office of the Chief Procurement Office OGC- Office of General Counsel ORCF -Office of Residential Care Facilities PBV- Project Based Vouchers (Section 8) PBRA- Project Based Rental Assistance (Section 8) PIV- Personal Identity Verification POC- Point of Contact or HUD Representative PL -Public Law PPII -Protection of Personally Identifiable Information QA- Quality Assurance QASP- Quality Assurance Surveillance Plan RAD- Rental Assistance Demonstration SUBORDINATE COR-Contracting Officer Representative who assist the COR.

S.O.A-. Section of the Act U.S.C.- United States Code

3 Government-Furnished Property and Services The Contractor shall ensure accurate control and accountability of all Government Furnished Property in accordance with terms and conditions of this contract. The Government will furnish, at no cost to the Contractor, the following GFP: (1) FHA 221(d)(4), 223(f) and 223(a)(7) electronic loan files, (2) Multifamily Accelerated Processing (MAP) Guide training, (3) Access to HUD’s DAP, iREMS, HEROS, and APPS software systems for the Contractor to update the loan application status and to review and recommend approval of credit of the applicants and other team members.

3.1 Government Services

The Government will provide a four (4) day MAP Guide training class in HUD Headquarters for the Contractor and Key Personnel employed by the Contractor. The government will also provide database access for all required systems to support loan underwriting services.

3.2 Facilities

None

3.3 Equipment

The Government will not provide equipment to the Contractor.

3.4 Materials

The OMHP's HUD POC or the ORCF's Workload Manager will independently provide the required materials electronically or via USB External Drive of the loan applications to the Contractor for processing. HUD will provide MAP Guide Appendix, punch lists, checklists and ORCF's Standardized Punch Lists, Exhibits A-G, documents to be used in conjunction with processing, underwriting and closing each application and the URLs to these documents are provided in the Related Documents section of this PWS. The HUD POC or the ORCF Workload Manager will provide the most current processing checklists and punch lists including a list of the documents required for processing and underwriting a Section 221(d)(4), 223(a)(7) and 223(f) loan applications. OMHP processing checklists are also in the Appendix Section 4.A and 4.B of the MAP Guide. ORFC standardized processing punch lists, ORCF's Standardized Punch Lists, Exhibits A-G, are posted on the Healthcare SharePoint site. The required closing documents are in the Federal Housing Administration Multifamily Program Closing Guide (4300.G). Multifamily’s Closing Guide is located on the website at: https://www.hud.gov/program_offices/administration/hudclips/guidebooks/.

All punch list, checklist materials and loan processing documents will remain the property of the Government. The punch list and checklist materials will be returned to the COR upon request or be returned at the end of the contract period. The Contractor shall only conduct business with the CO, Subordinate COR, MF HUD POC or ORFC Workload Manager and other designated HUD Representatives as it relates to project management support, loan insurance underwriting, loan application closing support and post-loan closing administration services for FHA loans under Sections 221(d)(4), 223(f) and 223(a)(7). Names of authorized personnel shall be provided to the Contractor by the Government, in writing and updated as necessary throughout the contract period.

All HUD provided information including Lender loan application files as well as Contractor analyses, reports, reviews, information exchange materials, approval documents, and electronic documents remain the property of HUD.

3.5 Quality Assurance (QA)

The Government shall evaluate the Contractor’s performance under this contract in accordance with the Quality Assurance Surveillance Plan. This plan is primarily focused on what the Government must do to ensure that the Contractor has performed in accordance with the performance standards. It defines how the performance standards will be applied, the frequency of surveillance and the minimum acceptable quality level.

4 Contractor-Furnished Items and Services The Contractor shall furnish all the necessary services, qualified personnel, materials, and equipment required to perform the statement of work under this contract that are not listed under Government Furnished Property and Services.

4.1 Facilities

The Contractor shall furnish all facilities, equipment and supplies required to perform the work under this contract that are not listed under Government Furnished Property and Services. The Contractor shall provide office space, a computer with internet access, a copier and standard office supplies for Contractor personnel.

4.3 Material

The Contractor shall be furnished loan documents, training material and/or documents pertaining to the processing, underwriting and closing of each loan application electronically through email, disc or a SharePoint site.

4.4 Contractor Responsibilities

The Contractor shall only conduct business with the assigned MF HUD POC, ORCF Workload Manager and other designated HUD Representatives as it relates project management, loan insurance underwriting, loan application closing support and post-loan closing administration support services for FHA loans under Section 221(d)(4), 223(f) and 223(a)(7). Names of authorized personnel shall be provided to the Contractor by the Government, in writing and updated as necessary throughout the contract period.

The Contractor shall not disclose any information that a sponsor or Lender shall provide to the Contractor outside of HUD. The Privacy Act remains in full force and effect. All documents and data shall be returned to HUD when requested by HUD in a format required by the COR. This provision shall apply to all document/material and deliverables under this contract. The Contractor shall determine that no one is employed for HUD origination, processing, underwriting or servicing that is debarred, suspended, subject to a Limited Denial of Participation (LDP) or otherwise restricted from participation in the FHA insurance programs.

The Contractor shall determine there is no identity of interest between any contract employee, the borrower/mortgagor, inspector, Capital Needs Assessment assessor, lender or any other team member of the subject transaction.

The Contractor shall treat all information provided by the borrower/mortgagor entity as proprietary and, by performing an analysis, agrees not to divulge information provided to it by the borrower/mortgagor to anyone other than HUD. All drafts, final documents and reports produced by the Contractor under this contract are the property of HUD and the Contractor may not release them to anyone without HUD’s written consent. U.S. Government records, copies of original results and reports, verified original data, corrected data and corrected supporting final reports which are maintained by the Contractor remain the property of the U.S. Government. These files/results must be surrendered to the COR upon request or at the end of the contract in electronic form.

The Contractor’s responsibility for Government information extends from the initial provision for acquisition and receipt of information, through stewardship, custody, and use until returned to, or otherwise disposed of, as directed by the Contracting Officer. The requirement applies to all Government information under the Contractor’s accountability, stewardship, possession or control, including its subcontractors.

The Contractor shall manage, account for, and secure all Government information provided or acquired by the Contractor. All Government information that is also controlled but unclassified information shall be protected from disclosure in accordance with the clause governing Controlled Unclassified Information (CUI) contained in this contract. The Contractor shall be responsible for all Government information provided to its subcontractors. The Contractor agrees to include a requirement in each subcontract under this contract that flows down the protection from disclosure requirements.

4.5 Contractor Personnel

The Contractor shall provide personnel who shall be responsible for the performance of work. An alternate shall also be designated to act in the absence of the Key Personnel. These Contractor personnel are considered Key Personnel by the Government and shall be listed as such in accordance with HUDAR 2452.237-70, Key Personnel. The Contract/Project Manager shall have full authority to act on all contract matters relating to daily operations of this contract.

Accordingly, at a minimum, the points of contact shall have the technical knowledge of the requirement and be in the position to receive assignment, guidance and direction from the COR or Subordinate COR and CO in accordance with HUDAR 2452.237-73, Conduct of Work and Technical Guidance, and shall be allocated enough hours to the requirement to ensure successful performance. These points of contact shall each be an employee of the Contractor. An employee of a subcontractor is not acceptable for either of these positions. The Contract/Project Manager shall be available between the hours of 8:30 am to 4:30pm, Monday through Friday EST, except Federal Holidays or when the Government facility is closed for administrative reasons.

The Contractor shall (i) obtain security clearance by HUD's officials and PIV cards for 100% of all key personnel that will perform the work for use of HUD internal software programs (Development Application Processing System (DAP) and Integrated Real Estate Management Suite (iREMS)) and (ii) agree and sign the Rules of Behavior for Accessing HUD IT System and Protection of Personally Identifiable Information (PPII). The completion of the background check may take weeks for persons that are new to the Federal PIV system. The Contractor shall coordinate and collaborate with the COR or Subordinate COR to ensure all personnel performing underwriting tasks obtain the necessary access to HUD’s IT systems.

4.6 Identification of Contractor Employees

All Contractor/subcontractor personnel shall wear company picture identification badges as to distinguish themselves from Government employees. When conversing with Government personnel during business meetings, over the telephone or via electronic mail, Contractor/subcontractor personnel shall identify themselves as such to avoid situations arising where sensitive topics might be better discussed solely between Government employees.

Contractors/subcontractors shall identify themselves on any attendance sheet or any coordination documents they may review. Electronic mail signature blocks shall identify their company affiliation. Where practicable, Contractor/subcontractors occupying collocated space with their Government program customer shall identify their work space area with their name and company affiliation, or as a minimum, "Contractor” after name.

4.7 Quality Control

The Contractor shall establish and maintain a complete Quality Control Program that shall ensure services are performed in accordance with this contract. The Contractor shall develop and implement procedures to identify, prevent, and ensure non-reoccurrence of defective services. The Contractor’s quality control program is how they assure themselves that their work complies with the requirements of the contract. The Contractor shall provide the associated Quality Control Plan.

4.7.1 Quality Control Plan

The Contractor shall develop, maintain, enforce and document a Quality Control Plan (QCP). The QCP shall outline all the necessary measures to be taken by the Contractor to assure that the quality of an end product of service shall meet contract requirements. The QCP shall ensure the Government receives the level of quality that is consistent with the requirements specified in this contract. The QCP shall be sufficiently detailed to provide the Contractor’s methodology for identifying and recruiting qualified personnel. The QCP shall also provide the Contractor’s methodology for resolving problems identified by the Government during reviews conducted in accordance with its Quality Assurance Surveillance Plan (QASP). The QCP shall also provide the Contractor’s methodology for establishing an internal feedback system for support personnel, and for resolving problems identified by that feedback system. The QCP shall demonstrate and validate that the services or deliverables to be provided under the contract are completed with a level of quality that meets the minimum performance threshold established in the Government’s QASP. The QCP shall address Performance Management Approach, Quality Assurance, Quality Control and Performance Standards. The QCP shall be submitted within 10 calendar days after contract award date. The Contractor shall provide a Quality Control Plan that contains at least the following, but not limited to:

· Description of plan or processes used to monitor deliverables, and records of corrective or preventive measures taken to ensure quality.

· Description of review specifics such as frequency and whether loan processing/post-closing/post-loan closing administration are within time-frames.

5 Specific Tasks/Scope of Work

The Contractor shall provide loan underwriting/processing and closing support services for the Office of Multifamily Housing Programs. The Contractor’s underwriter and technical consultants (professional consultants engaged by the Contractor for the review of technical documents such as but not limited to architect, engineer, appraiser, environmental consultant) shall review the mortgage credit, appraisal, capital needs assessment (CNA) eTool, valuation, environmental (HEROS) and complete the required punch list, appendix and/or checklist documents. HUD's loan processing/production goal is to complete the loan underwriting process within twenty (20) calendar days for 223(a7), thirty (30) calendar days for 223(f) and forty-five (45) calendar days for 221 (d)(4) of assignment to Contractor support and loan closing within a hundred and twenty (120) calendar days.

The Contractor shall ensure all processed loan documents are provided in draft form and emailed or uploaded onto SharePoint for review in accordance with MAP Guide or ORCF’s Handbook 4232.1 processing instructions. When requested by the region, the Contractor shall prepare final loan documents and ensure all initial/final loan closings occur within one-hundred and twenty (120) days from the date of the executed Firm Commitment in accordance with the Federal Housing Administration Multifamily Program Closing Guide (Multifamily’s Closing Guide). The Multifamily’s Closing Guide provide procedures and protocols to Lenders, Borrower, HUD Closing Attorney, HUD Multifamily Hub Director and other HUD staff in preparing and reviewing documents for the loan closing. Loan closing guidance for the Section 232 programs is not set forth in Multifamily’s Closing Guide. Closing Guidance for the Section 232 programs are set forth in the Healthcare Mortgage Insurance Program Handbook 4232.1(OHP Handbook). The Contractor’s underwriter shall review and recommend approval of all necessary closing loan documents, Firm Commitment conditions and coordinate with the local HUD attorney for closing dates and execution of all final closing documents. Contractor shall submit a Project Work Plan that outline the Contractor's strategy to accomplish all tasks and deliverables detailed in the PWS. The Project Work Plan shall be submitted within 10 calendar days after contract award date.

5.1 Loan Underwriting Due Diligence

The Contractor shall work directly with the MF HUD POC, ORCF Workload Manager or the Alternate COR and approved MAP Lender who submitted the FHA mortgage insurance application to the HUD office. The loan documents, checklists, punch lists and ORCF's Standardized Punch Lists, Exhibits A-G, will be available through a SharePoint site or electronically emailed to the Contractor. The Contractor’s underwriter shall prepare the Loan Committee documents such as but not limited to: Regional Director’s transmittal, Loan Committee template, Lender’s narrative, Forms HUD-92264 or 2013, 92264A, Appendix 5 & 7 checklist (for 207/223(f) & 221d applications) and photos of exterior and interior when applicable including the HUD Data Reports and any required documents to be presented to the local MF HUD Loan Committee or ORCFs Loan Committee in accordance with HUD’s MAP Guide or ORCFs LEAN Handbook and approved by the MF HUD POC or ORFC’s Workload Manager. For 221(d)(4), 207/223(f) and 207/223(a)(7), Appendix 4 of the MAP Guide addresses application exhibits. Section 207/223(a)(7) is applicable only to certain mortgages currently insured by FHA and guidance is found in Chapter 18 of the MAP Guide. For 232/223(f), the Contractor shall abide by policies established in the LEAN Handbook. The Contractor shall update the loan application status through HUD’s DAP system, SharePoint or iREMS secure IT systems on a continuing basis until the loan application is completed, either for final rejection, firm commitment or initial/final endorsement (loan closing).

The Contractor’s underwriter shall determine if the loan application follows program /regulatory /underwriting requirements and is approved to move forward for processing or initially or permanently reject the application upon assignment of the loan application from the MF HUD POC or ORCF Workload Manger. If the loan is not approved by the Loan Committee, the Contractor’s underwriter shall prepare a rejection letter with all reasons cited in the rejection letter. The Contractor will ensure that the MF HUD POC (Government) conducts site visits and provides signed electronic copies of the HUD-4128 and HEROS reports for the file.

The Contractor shall review the borrower and other principals through HUD’s 2530 document. The Contractor’s underwriter shall upload, or email processed letters to the MF HUD POC or the ORCF Workload Manager to obtain the Regional Director’s signature on all Firm Commitment letters and rejection letters. The Contractor shall coordinate with and inform the MF HUD POC and the ORCF Workload Manager throughout the process.

All loan documents will be posted to the local MF HUD SharePoint site or emailed by the Contractor to be reviewed by the MF HUD POC in the local HUD office.

Performance Standards

a) STD: Review loan application and determine if the loan application follows program/regulatory/underwriting requirements to move forward for processing or initially or permanently reject the application.

AQL: Within fifteen (15) calendar days of loan assignment in accordance with MAP Guide or ORCF’s LEAN Handbook.

b) STD: Enter project data/status in HUDs IT systems i.e., DAP, SharePoint site and/or iREMS.

AQL: Within five (5) calendar days from loan assignment and ongoing throughout the loan processing.

c) STD: Coordinate the site visit/inspection of subject property with the MF HUD POC or the ORCF Workload Manager. Obtain the signed HUD-4128 and the HEROS report from the MF HUD POC for the file.

AQL: Within five (5) calendar days of loan assignment in accordance with MAP Guide or ORCF’s LEAN Handbook.

d) STD: Prepare the Firm Commitment letter or rejection letter for non-compliance for approval by the MF HUD POC or ORCF Workload Manager for Director's signature.

AQL: Within (15) calendar days of assignment from the MF HUD POC or ORCF Workload Manager in accordance with MAP Guide or ORCF’s LEAN Handbook.

e) STD: Review HUD’s 2530 of the borrower, management agent and/or principal.

AQL: Within fifteen (15) calendar days of assignment and completed in accordance with MAP Guide or ORCF’s LEAN Handbook.

f) STD: Review application and complete the MAP Guide appendix, checklist and/or exhibits for the mortgage credit, appraisal, valuation, CNA eTool, environmental (HEROS) and any other third-party report.

AQL: Within twenty (20) calendar days for 223(a7), thirty (30) calendar days for 223(f) and forty-five (45) calendar days for 221 (d)(4) of assignment from the originating MF HUD POC or ORCF Workload Manager in accordance with MAP Guide or ORCF’s LEAN Handbook.

g) STD: Prepare the required loan documents and exhibits for the Loan Committee approval. The completed documents and exhibits are to be uploaded onto a SharePoint site or emailed to the MF HUD POC or ORCF Workload Manager for review.

AQL: Within ten (10) calendar days of loan assignment and completed in accordance with MAP or ORCF’s guidelines.

Deliverables A01 Processed loan documents (refer to MAP Guide or ORCF’s loan application checklists) A07 Project Work Plan A08 Quality Control Plan

5.2 Loan Closing

At the discretion of the Region, the Contractor shall review the loan closing documents upon assignment of the executed Firm Commitment package from the lender and assess for completeness and accuracy. When necessary, prepare deficiency letters to the lender’s attorney for corrections. The Contractor shall review the loan closing documents and complete the appropriate closing punch list or exhibits. For OMHP loans, the Contractor shall coordinate the loan closing date in two (2) to five (5) calendar days after issuance of the executed Firm Commitment.

For ORCF loans, the Contractor shall coordinate the loan closing date with ORFC's Workload Manager within two (2) to five (5) calendar days upon assignment of the loan application for processing in accordance with LEAN Handbook.

The Contractor shall ensure all Special Conditions identified in the Firm Commitment have been satisfied in accordance with ORCF’s LEAN Handbook.

The Contractor shall prepare and process Firm Commitment extensions (if necessary), amendments to the Firm Commitment submitted by the lender and any other documents including but not limited to the Regulatory Agreement, Escrow Agreement and Mortgage Note. The Contractor shall coordinate the loan closing date with HUD’s Office of General Counsel (OGC) attorney or ORCF’s Workload Manager, and the lender’s attorney to execute the loan closing documents.

Performance Standards

a) STD: Coordinate the loan closing date with HUD's closing coordinator, lender's attorney and the OGC attorney assigned to the closing.

AQL: Within five (5) calendar days after the loan application has been assigned for processing or five (5) days after fully executed Firm Commitment for OMHP loans in accordance with MAP Guide or ORCF’s LEAN Handbook. Note: ORFC's Workload Manager may request the closing process to start upon loan assignment for processing.

b) STD: Complete HUD's closing punch-list, closing checklist, prepare required forms and certifications, and obtain contact information for the lender's attorney and the OGC attorney assigned to the loan closing.

AQL: Within ten (10) calendar days after the date of the fully executed Firm Commitment and draft closing documents in accordance with MAP Guide or ORCF’s LEAN Handbook.

c) STD: Resolve any closing document deficiencies or corrections.

AQL: Within ten (10) calendar days of notification of deficiencies or corrections in accordance with MAP Guide or ORCF’s LEAN Handbook.

d) STD: Prepare and process amendments, request for Firm Commitment extension, special conditions, as needed.

AQL: Within…