HAPRSS_RFP_Draft__86546A18R00002__-_12-12-17.docx

SECTION M – EVALUATION FACTORS HAP CONTRACT REGIONAL SUPPORT SERVICES

FOR AWARD

Multi-Family Housing 86546A18R00002

SOURCES SOUGHT MARKET RESEARCH DRAFT SOLICITATION

Housing Assistance Payments (HAP) Contract Regional Support Services (HAPRSS) (Formerly known as Performance-Based Contract Administrator (PBCA) Program)

SOLICITATION NO: 86546A18R00002

The Draft Solicitation is revised to change the due date for comments and questions. Responses are due on Tuesday, January 02, 2018 at 3:00 pm CST to HAPRSS@hud.gov.

TABLE OF CONTENTS HAP CONTRACT REGIONAL SUPPORT SERVICES

Multi-Family Housing 86546A18R00002

Table of Contents Page

PART I - THE SCHEDULE

SECTION A - SOLICITATION/CONTRACT FORM

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS 2

SECTION C – PERFORMANCE WORK STATEMENT 6

SECTION D - PACKAGING AND MARKING 33

SECTION E - INSPECTION AND ACCEPTANCE 34

SECTION F - DELIVERIES OR PERFORMANCE 35

SECTION G - CONTRACT ADMINISTRATION DATA 36

SECTION H - SPECIAL CONTRACT REQUIREMENTS 40

PART II - CONTRACT CLAUSES

SECTION I - CONTRACT CLAUSES 44

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

SECTION J - LIST OF ATTACHMENTS…………………………………………………….….…59

PART IV – REPRESENTATIONS AND INSTRUCTIONS

SECTION K – REPRESENTATIONS, CERTIFICATIONS…………………………….…….…..60

SECTION L – INSTRUCTIONS, CONDITIONS & NOTICES TO OFFERORS/RESPONDENTS……………………………………………………………………

SECTION M – EVALUATION FACTORS FOR AWARD………………………………………..75

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICES/COST PART

B.1 This is a single-award Indefinite Delivery/Indefinite Quantity (IDIQ) Fixed-Price (Fixed Unit Rate) contract with a base and four (4) option periods. Each period has a twelve (12) month period of performance. The period of performance for this entire contract to include option years is TBD 2018 – TBD 2023. Task orders to be placed under this contract will be fixed unit rate.

B.2 CONTRACT DESCRIPTION

The Contractor shall provide Housing Assistance Payments (HAP) Contract Regional Support Services as outlined in Section C. The services are for Region (inserted upon award, Sub-Region (inserted upon award).Orders shall be placed in accordance with the following clauses 52.216-18, Ordering; 52.216-19, Order Limitations; and HUDAR 2452.216-78, Task Ordering Procedures.

B.3 CONTRACT UNIT AND TOTAL PRICES

BASE YEAR

2018- 2019

Region (inserted upon award) Sub-Region (inserted upon award)

IDIQ

IDIQ

IDIQ

OPTION PERIOD 1

2019 - 2020

Region (inserted upon award)

OPTION PERIOD 2

2020 – 2021

Region (inserted upon award)

OPTION PERIOD 3

2021 - 2022

Region (inserted upon award)

IDIQ

IDIQ

OPTION PERIOD 4

2022 – 2023

Region (inserted upon award)

IDIQ

TRANSITION OUT OPTION PERIOD

(PWS 6.2)

SECTION B – SUPPLIES OR SERVICES HAP CONTRACT REGIONAL SUPPORT SERVICES

Multi-Family Housing 86546A18R00002

SECTION C- PERFORMANCE WORK STATEMENT

Performance Work Statement (PWS) Housing Assistance Payments (HAP) Contract Regional Support Services

Vision Statement

Provide efficient and high quality HAP Contract support services which will result in reducing the number of improper payments and effectively monitoring the condition of Section 8 projects.

1.0 General Information

1.1 Introduction

The Department of Housing and Urban Development (HUD) / Office of Multifamily Housing Programs (MFH) has a requirement for HAP Contract support services. Services include conducting Management and Occupancy Reviews (MOR). Investigating and addressing tenant concerns, and processing monthly vouchers.

1.2 Background

Under the Section 8 Project-Based Rental Assistance (PBRA) program, HUD/OMH provides monthly rental assistance payments on behalf of 1.2 million households throughout the United States.

HUD currently engages 53 Performance-Based Contract Administrators (PBCAs), each acting under an Annual Contribution Contracts (ACCs) with HUD to perform various tasks, including the day-to-day monitoring and oversight of approximately 90% of Housing Assistance Payments (HAP) contracts, which govern the legal relationship between the PBCA, which serves as contract administrator under the HAP Contracts, and owners of Section 8 projects (owners). Upon expiration or termination of the existing 53 ACCs, HUD will become the contract administrator for all HAP contracts in MFH’s portfolio. Thus, HUD is now seeking to obtain HAP Contract support services using competitive contracts processes to assist HUD in the administration of approximately 17,000 HAP Contracts.

From the inception of the PBCA program in 1999, HUD has relied on PBCAs, acting under ACCs with HUD, to provide the day-to-day monitoring and oversight of roughly 90% of these contracts. Under this model, the legal rights and responsibilities of PBCAs are established in an ACC. Between 1999 and 2011, HUD executed each of the 53 separate ACCs that are currently in effect with public housing agencies (PHAs) throughout the country, as “public housing agency” is defined in section 3(b)(6)(A) of the United States Housing Act of 1937 Act (including State Finance Agencies). Each PHA has state-wide jurisdiction over the State or other jurisdiction (i.e., the District of Columbia, Puerto Rico, and the United States Virgin Islands) for which it serves as HUD’s PBCA. Once the existing 53 ACCs expire, the MFH PBCA program will end, and HUD will become the Governmental party to all HAP Contracts.

HAP Contract support services require interaction with the following secured HUD systems:

· TRACS Tenant Rental Assistance Certification System

· iREMS Integrated Real Estate Management System

· EIV Enterprise Income Verification System

1.3 Constraints

The services identified in this PWS will adhere to the rules, regulations, laws, standards, and conventions identified by HUD as well as within the Federal Government. Constraints include the following:

· Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA) http://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title42-section1437f&f=treesort&num=0&saved=%7CKHRpdGxlOjQyIHNlY3Rpb246MTQzN2EgZWRpdGlvbjpwcmVsaW0pIE9SIChncmFudWxlaWQ6VVNDLXByZWxpbS10aXRsZTQyLXNlY3Rpb24xNDM3YSk%3D%7CdHJlZXNvcnQ%3D%7C%7C0%7Cfalse%7Cprelim#miscellaneous-note”

· HUD Handbook 4350.1, Multifamily Asset Management and Project Servicing http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh/4350.1

· Form HUD-9834, HUD Handbook 4350.1 https://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips

· HUD Handbook 4350.3, REV-1 Occupancy Requirements of Subsidized Multifamily Housing Programs http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh/4350.3

· HUD Handbook 4381.5 The Management Agent Handbook http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh/4381.5

· Form HUD-50059, Owners Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures, TRACS Industry User Guide https://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips

· TRACS MAT Guide http://www.hud.gov/offices/hsg/mfh/trx/trxmatg.cfm

· iREMS Users Guide for Contract Administrators https://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/rems/rems

· The United States Housing Act of 1937 http://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title42-chapter8-subchapter1&saved=%7CKHRpdGxlOjQyIHNlY3Rpb246MTQzN2EgZWRpdGlvbjpwcmVsaW0pIE9SIChncmFudWxlaWQ6VVNDLXByZWxpbS10aXRsZTQyLXNlY3Rpb24xNDM3YSk%3D%7CdHJlZXNvcnQ%3D%7C%7C0%7Cfalse%7Cprelim&edition=prelim”

· Special Claims Processing Guide http://www.hud.gov/offices/adm/hudclips/guidebooks/HSG-06-01/HSG-06-01gHBGUID.pdf

· Department Reauthorization Act of 2005 for the Multifamily Project-Based Section 8 Housing Assistance Payments Program https://portal.hud.gov/hudportal/documents/huddoc?id=09-15hsgn.doc

· Rent and Income Determination Quality Control Monitoring Guide for Multifamily Housing Program http://www.hud.gov/offices/hsg/mfh/rhiip/qcguide.pdf

· Joint Agreement, Office of Fair Housing and Equal Opportunity and the Office of Housing, GOP for the Civil Rights Front-End and Limited Monitoring Reviews of Subsidized Multifamily Housing Projects https://www.hud.gov/offices/fheo/promotingfh/MF-GOP.doc

· Department of Housing and Urban Development regulations, as codified in Title 24 of the Code of Federal Regulations https://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title24/24tab_02.tpl

· Utility Analysis Methodology Notice http://portal.hud.gov/hudportal/documents/huddoc?id=15-04hsgn.pdf

TRACS compliant software shall be used in the performance of applicable task(s) stated within this PWS to ensure required data can be transmitted to TRACS.

1.4 Description of Services

HUD/MFH has a requirement for the following HAP Contract support services:

· Management and Occupancy Reviews (MOR)

· HAP Voucher Processing

· Tenant Health and Safety

· HAP Contract Opt-out and Termination Support

The Contractor shall provide HAP Contract support services for the Covered Units in the Service Area(s) assigned. HUD will assign to the Contractor existing HAP contracts for Covered Units in the Service Area(s) for the purpose of providing support services for such HAP Contracts in accordance with the PWS. The Contractor agrees to accept all such assignments by HUD.

Upon assignment by HUD, the Contractor shall immediately commence support services for the HAP contract in accordance with the terms and conditions stated within the PWS. HUD retains the right to withdraw such assignments at any time at HUD’s sole discretion.

Detailed descriptions of specific tasks are provided in Section 5 - Specific Tasks and Deliverables.

1.5 Non-Personal Services

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 that give the perception of personal services.

If the Contractor believes that any actions constitute, or are perceived to constitute personal services, it shall be the Contractor's responsibility to notify the Contracting Officer (CO) immediately. These services shall not be used to perform work of a policy, decision making, or management nature, i.e. inherently Government functions. All decisions relative to programs supported by the Contactor shall be the sole responsibility of the Government.

1.6 Period of Performance

The period of performance shall be for one base period of 12 months and four 12-month option periods.

1.7 Place of Performance

The services to be performed under this contract shall be performed at the Contractor's facility and at project locations across assigned Service Areas.

1.8 Hours of Operation

The Contractor shall be available for O/A questions and concerns from 9:00am to 5:00pm local time of assigned projects.

The Contractor shall at all times maintain an adequate workforce for the uninterrupted performance of all tasks defined within the contract. When hiring personnel, the Contractor shall keep in mind that the stability and continuity of the workforce is essential.

1.9 Special Qualifications

See Key Personnel Minimum Qualifications in Section G.

1.10 Post Award/Kickoff Conference

See HUDAR clause 2452.237-79 POST AWARD CONFERENCE in Section I.

1.11 Status Meetings

The Contracting Officer, Contracting Officer’s Representative (COR) and other Government personnel, as appropriate may meet periodically with the Contractor to also review Contractor performance, requirement status, etc. 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.

1.12 Contractor Travel

The Contractor is responsible for all travel related expenses under this contract unless prior authorization is received from the Contracting Officer.

2.0 Definitions and Acronyms

2.1 Definitions

ACCEPTABLE QUALITY LEVEL (AQL). The minimum required performance level for each Performance-Based Task.

BUSINESS / WORK DAYS. Every official work day of the week which are days between and including Monday to Friday. This does not include public holidays and weekends.

CLOSE OF BUSINESS. Contractor’s regularly scheduled closing time.

CONTINGENCY PLAN. Contractor's plan to respond to any threat or emergency that may interrupt essential Contractor functions and that the Contractor has tested and determined it to be sound and effective.

CONTINGENCY PLAN REVIEW and VALIDATION. An annual review and validation by the Contractor that its Contingency Plan documentation is accurate, complete and current and that all employees and applicable sub-contractors have been trained and all backup plans and systems have been tested.

CONTRACT ADMINISTRATION OVERSIGHT MONITOR (CAOM). Employees within the MFH / HUD, who conduct administrative, monitoring, and oversight functions related to the Contractor’s compliance with and performance of the contract.

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’S REPRESENTATIVE (COR). An employee of the U.S. Government appointed by the Contracting Officer to perform contract administration activities regarding technical issues. This individual has authority to provide technical direction to the Contractor if 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. The supplier or vendor responsible for providing HAP Contract support services stated within this PWS.

COVERED UNITS. Dwelling units assisted under a Section 8 HAP Contract in a multifamily housing project located in the Service Area.

DAYS. Unless otherwise stipulated refers to calendar days.

FAIR MARKET RENTS (FMR). The rents established by HUD, as required under section 8(c) (1) of the United States Housing Act of 1937, for units of varying sizes (by number of bedrooms) that must be paid in the market area to rent privately owned, existing, decent, safe, and sanitary rental housing of modest (non-luxury) nature with suitable amenities.

FAIR MARKET RENT AREA. The area for which HUD has established an FMR.

FISCAL YEAR END (FYE). 11:59 p.m. local time - 30 September.

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 includes, but is not limited to, spares and property furnished for repair, maintenance, overhaul, or modification. 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.

HOUSING ASSISTANCE PAYMENTS CONTRACT (HAP Contract). A project-based HAP Contract authorized under Section 8 of the United States Housing Act of 1937 (but not including any such contract authorized under section 8(o)(13) or under former section 8(e)(2) of such Act) including any renewal of such contract, as authorized under the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA).

INDEPENDENT AUDITOR (IA). An auditor who meets the auditor qualifications of Government Auditing Standards, including the qualifications relating to independence and continuing professional education. Additionally, the audit organization is to meet the quality control standards of Government Auditing Standards.

LIFE-THREATENING HEALTH AND SAFETY ISSUE. Issues that the Contractor may discover through tenant concerns or inquiries, conducting Management Occupancy Reviews, Real Estate Assessment Center (REAC) follow-up, or other means of discovery that pose an immediate health or safety issue to tenants at properties administered under HAP Contracts. Examples of Life-Threatening Health and Safety Issues include lack of heat during winter conditions, lack of air conditioning during hot and humid conditions, electrical issues, exposure to mold, and exposure to airborne asbestos, etc.

MULTIFAMILY ASSISTED HOUSING REFORM AND AFFORDABILITY ACT OF1997, AS AMENDED (MAHRA). The statute authorizing the renewal of HAP Contracts for Project-based rental assistance under Section 8 of the United States Housing Act of 1937 upon termination or expiration of such contracts (42 U.S.C. section 1437f note).

NON LIFE-THREATING HEALTH AND SAFETY ISSUE. Issues that the Contractor may discover through tenant concerns or inquiries, conducting Management Occupancy Reviews, Real Estate Assessment Center (REAC) follow-up, or other means of discovery that do not pose an immediate health or safety issue to tenants at properties administered under HAP Contracts.

OWNER. Any private person or entity, including a cooperative, an agency of the Federal Government, or a public housing agency, having the legal right to lease or sublease dwelling units.

PERFORMANCE-BASED CONTRACT ADMINISTRATOR (PBCA). A PHA acting under a Performance-Based ACC with HUD that previously served as the Governmental party to and the contract administrator of HAP Contracts that HUD assigned to it under the ACC. (Note: The contractors will perform similar functions as the PBCAs under the scope of this PWS but will not be parties to any HAP Contracts.)

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.

PROJECT. A property consisting of more than 4 dwelling units that is covered in whole or in part by a HAP Contract and is under a single property identification number in HUD systems.

QUALITY ASSURANCE (QA) - Policies and procedures adopted by the Government to ensure that supplies and services acquired under Government contracts conform to the contracts 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.

SECTION 8. Section 8 of the United States Housing Act of 1937, as amended (42 U.S.C. section 1437f).

SERVICE AREA. The region in which the Contractor provides contract administration services under the HAP Contract support services contract.

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.

STATE. For the purpose of this contract, the term State shall include the 50 states and the District of Columbia and the US territories of US Virgin Islands and Commonwealth of Puerto Rico.

SUB-CONTRACTOR. 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 sub-contractor.

UNITED STATES HOUSING ACT OF 1937, AS AMENDED (1937 Act). The statute in which the Section 8 statute and related requirements are codified (42 U.S.C. section 1437).

WORK WEEK. Monday through Friday, unless specified otherwise.

2.2 Acronyms

ACC - Annual Contribution Contract AQL - Acceptable Quality Level CO - Contracting Officer CAOM - Contract Administration Oversight Monitor COB - Close of Business COR - Contracting Officer Representative EFT - Electronic Funds Transfer EH&S - Exigent Health and Safety EIV - Enterprise Income Verification FAR - Federal Acquisition Regulation FISMA - Federal Information Security Act FMR - Fair Market Rents FOCC – Field Office CAOM Counterpart FYE - Fiscal Year End GOP - General Operational Procedures HAP - Housing Assistance Payment HAPRSS – HAP Contract Regional Support Services HUD - Department of Housing and Urban Development IA - Independent Auditor iREMS - Integrated Real Estate Management System MAHRA - Multifamily Assisted Housing Reform and Affordability Act of 1997, as amended MFH – Multifamily Housing MOR - Management and Occupancy Review O/A - Property owner / management agent OCI - Organizational Conflict of Interest OMB - Office of Management and Budget OSHA - Occupational Safety and Health Act PBCA - Performance Based Contract Administrator PBRA - Section 8 Project-Based Rental Assistance PD&R – Policy Development and Research PHA - Public Housing Agency PWS - Performance Work Statement QASP - Quality Assurance Surveillance Plan QCP - Quality Control Plan REAC - Real Estate Assessment Center RHIIP - Rental Housing Integrity Improvement Project TPV - Tenant Protection Voucher TRACS - Tenant Rental Assistance Certification System

3.0 Government Services

The Government will provide the Contractor user access privileges to the various HUD systems (iREMS, TRACS, EIV) required to perform the services stated within this PWS. User access privileges will be granted upon successful completion of background/security investigations administered by the Government.

3.1 Facilities

No facilities will be provided by the Government.

3.2 Equipment

No Government equipment will be provided.

3.3 Materials

The Government will provide the Contractor with all HAP Contracts under the Contractor’s jurisdiction, REAC assessments, and other supporting documentation during the Transition-In period or within 10 days of HAP Contract assignment if outside of the Transition-In period. Copies of required materials may be provided to the Contractor in hard copy or soft copy. All materials will remain the property of the Government and will be returned to the COR upon request or at the end of the contract period.

3.4 Quality Assurance (QA)

The Government will 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 facilities, equipment, and supplies required to perform the work under this contract that are not listed under Government-Furnished Property and Services.

4.1 Facilities

The Contractor shall furnish the facilities necessary to meet the requirements stated within this PWS.

4.2 Equipment

The contractor shall furnish any equipment necessary to meet the requirements stated within this PWS.

4.3 Material

N/A

4.4 Contractor Responsibilities

The Contractor shall only conduct business with designated Government personnel listed as points of contact (POCs). Names of authorized personnel shall be provided to the Contractor by the Government, in writing, and updated as necessary throughout the contract period.

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 at the end of the contract term or at the request of the Government.

4.5 Contractor Personnel

See Sections G.3, G.4, G.5.

4.6 Identification of Contractor 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.

5.0 Specific Tasks

5.1 Management Occupancy Reviews

The Contractor shall conduct a Management Occupancy Review (MOR) for each assigned multifamily property. While some properties have more than one Housing Assistance Payment (HAP) contract, each property shall be reviewed annually unless otherwise instructed by HUD.

Each review shall evaluate and assess the owner/management agents operating policies and procedures for directing and overseeing property operations, compliance with HAP contracts as set forth in regulations, handbooks, forms, notices, and guidance issued by HUD, as amended and revised, and their adequacy for carrying out daily, front-line activities.

Each MOR shall be conducted in accordance with HUD Handbook 4350.1, Multifamily Asset Management and Project Servicing and HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs.

The Contractor shall complete the following when conducting an MOR:

5.1.1. Prioritize Reviews

The Contractor shall prioritize reviews as set forth in the following order of precedence:

· properties with expiring HAP Contracts, especially if the contract may be terminated due to owner noncompliance;

· within six months after a property commences occupancy;

· within six months for any newly assigned HAP contracts to the Contractor’s portfolio;

· following a change in the property’s ownership/management agent (O/A);

· when desk reviews of available asset management documentation or risk analysis indicate that physical, financial, or management problems exist and the extent or cause of the problems is not readily apparent;

· when the property is managed by an agent whose performance is less than satisfactory at other properties in the Contractor’s portfolio.

5.1.2. Schedule On-site Reviews

The Contractor shall contact the O/A to schedule a date for an on-site review. Once the on-site review is scheduled, the Contractor shall confirm the scheduled review with the O/A in writing at least 14 days in advance. The Contractor shall also notify the O/A of the documents that must be available the day of the review, as indicated on Addendum C of form HUD-9834, and must include Part A of Addendum B of form HUD-9834 for completion by the O/A.

Additionally, the Contractor shall forward Part A, Sections I, II, and III of the checklist for On-Site Limited Monitoring and Section 504 Reviews (Addendum B) of HUD- 9834 to the O/A for completion prior to the on-site review.

5.1.3. Complete Desk Review

The Contractor shall conduct a desk review to determine the status of various property operations, including physical, financial, and management conditions prior to the on-site MOR. The desk review shall include reviewing property files and information systems, FMR. iREMS (Integrated Real Estate Management System), TRACS (Tenant Rental Assistance Certification System), EIV (Enterprise Income Verification System) etc. and entering information into form HUD-9834 - Management Reviews of Multifamily Properties. The Contractor shall, as part of the desk review, verify that properties are in compliance with HUD requirements for occupancy of Covered Units, including performing mandated follow-up on REAC findings.

5.1.4. Conduct On-Site Review

The Contractor shall conduct an on-site review and complete form HUD-9834. For each section included within form HUD-9834, the Contractor shall determine whether existing policies, conditions, and procedures are acceptable or whether corrective actions are needed.

As part of the on-site review, the Contractor shall conduct a close-out meeting with the O/A on the last day of the review, as the last action. The meeting shall be held either on-site or in the O/A’s office. During the meeting, the Contractor shall provide the O/A immediate feedback on what was observed at the property, including any preliminary findings, concerns that were identified, results of the occupancy file review and interviews with staff. The Contractor shall also provide the O/A with the opportunity to explain or comment on findings. The Contractor may also request copies of property policies and procedures for further review as necessary.

5.1.5. Complete MOR Report

Within 30 days of completion of the onsite review, the Contractor shall submit to the O/A an MOR Report to include: a cover letter, summary page, and Summary Report -Findings of the HUD-9834 which provides a rating, outlines findings, cites violations, and recommends corrective actions, and outlines the appeal as applicable.

Before drafting the summary page, the Contractor shall assess the impact of all management deficiencies in the summary page and Summary Report -Findings and assign a property rating. Each category on the HUD-9834 is aggregated in an overall rating. There are five possible ratings: superior, above average, satisfactory, below average and unsatisfactory.

In determining an overall rating, the Contractor shall assess whether the O/A demonstrates acceptable management practices. If the overall rating is below average or unsatisfactory the Contractor shall provide the COR a copy of the MOR Report via email at the same time as it is sent to the O/A.

The Contractor shall input the information within the MOR Report into iREMS within 1 business day of sending out the MOR Report to the O/A.

5.1.6. Complete Follow Up Actions

If there are deficiencies identified in the MOR Report, the Contractor shall inform the O/A that deficiencies must be resolved within 30 days. The Contractor shall maintain documentation to support that the deficiencies were corrected by the targeted completion date noted on the MOR Report. If the O/A requires additional time to correct deficiencies, the Contractor shall inform the O/A that a Corrective Action Plan must be submitted within 30 days of receipt of the MOR Report to the Contractor. The Contractor shall transmit the Corrective Action Plan to the COR via email within 5 business days of receipt. The Contractor shall ensure the Corrective Action Plan includes target timeframes for resolving the deficiencies and shall monitor progress of the Corrective Action Plan until all deficiencies have been addressed.

Within 30 days of receiving the owner’s response to the on-site review, the Contractor shall review the response and advise the owner if the MOR Report is complete or if additional actions and follow-up are needed.

5.1.7 Reviews and Appeals

The O/A shall have the opportunity to submit additional information to the Contractor in the event a property receives a score of "Below Average" or "Unsatisfactory". If the O/A elects to submit this additional information, it must be submitted within 30 days of receipt of the MOR Report. If the additional information is received prior to the deadline, the Contractor shall review the MOR and ensure it is a complete and accurate assessment of the property, and shall adjust the MOR and overall rating if necessary.

The Contractor shall conduct a review of the MOR and send a letter to the O/A within 30 days of receipt of additional information. The letter shall include the date of O/A submission, detailed language describing the results of the review and language explaining how the O/A can request a final appeal to HUD within 15 days of the transmittal date of the Contractor’s letter if the O/A wishes to do so. The Contractor shall copy the COR on this letter.

If HUD receives an appeal, HUD will contact the Contractor and request documentation. The Contractor shall submit the requested documentation via email to the COR within 5 business days of the request. Decisions rendered by HUD will be final and will not be subject to further appeal.

5.1.8 Actions to be taken for a nonresponsive O/A

The Contractor shall notify the COR via email of the O/A’s failure to respond to findings in the MOR Report no later than 10 days after the O/A response deadline. The Contractor shall continue to follow-up with the O/A no less than each week until a response is received.

5.1.9 Closing Reviews

After determining that the O/A has taken all corrective actions required in the MOR Report, the Contractor shall notify the O/A in writing within 5 days that the MOR is closed. The close-out date shall be entered into iREMS on the same day as close-out.

Performance Standards

a) Standard: MOR conducted annually (unless otherwise instructed by HUD) for 100% of multifamily properties assigned.

AQL: 2% deviation from standard.

b) Standard: 100% of MORs conducted are in accordance with HUD procedures and policies referenced within the PWS.

AQL: 5% deviation from standard.

c) Standard: 100% of MOR Appeal reviews are conducted within 30 days.

AQL: 100% of MOR reviews are conducted within 45 days.

Deliverables A001 MOR Report A002 Corrective Action Plan A003 Documentation for Appeal

5.2 Monthly HAP Vouchers and Special Claims Processing

The Contractor shall process Section 8 HAP vouchers (Vouchers) and special claims for each assigned property monthly. Each voucher review shall evaluate and assess that payments are made to owners only for those units in compliance with and covered by the contract(s). Each voucher review shall ensure compliance with HAP contracts as set forth in regulations, handbooks, forms, notices, and guidance issued by HUD, as amended and revised.

5.2.1 Voucher Submission

The Contractor shall establish and maintain TRACS compliant software to verify Vouchers were received by the tenth (10th) day of the month prior to preceding the month for which the owner is requesting payment. The Contractor shall follow-up weekly on delinquent Vouchers until received.

5.2.2 Voucher Review and Approval

The Contractor shall review the voucher and verify the accuracy of the voucher. Vouchers submitted to the Contractor by the tenth of the month shall be processed and transmitted to HUD via TRACS by the 25th of the month. Vouchers submitted to the Contractor after the tenth of the month shall be processed and transmitted to HUD via TRACS within 15 days of receiving the Voucher.

5.2.3 Voucher Review Requirements

· The Contractor shall review and verify the owner Voucher request and tenant data prior to payment.

· The Contractor shall monitor the data in TRACS to ensure the timely receipt of valid and error free files.

· The Contractor shall verify that the amount of HAP paid on behalf of each resident is accurate.

· The Contractor shall verify that vacant and abated Section 8 units are not claimed on the Voucher.

· The Contractor shall verify that interim re-certifications, move-in/move-outs, and adjustments to prior claims for Section 8 assistance have been completed accurately and on time.

· The Contractor shall verify pre-approval of Section 8 special claims.

· As part of the verification review process, the Contractor may request that the O/A submit a hardcopy of the Voucher and inform the O/A that requested documentation must be submitted to the Contractor within one business day.

· The Contractor shall endeavor to resolve discrepancies in the Voucher submission prior to the Voucher submission deadline.

5.2.4 Discrepancy Notification and Resolution

The Contractor shall notify the O/As in writing of any necessary adjustments, corrections, and/or TRACS errors that could not be resolved prior to the voucher submission deadline. The Contractor shall fax and/or email the O/A a Voucher Discrepancy Report with a description of any discrepancies within one business day of transmitting the Voucher to HUD. The Voucher discrepancy report shall include a separate line item to address each occurrence where the dollar amount that is approved for payment differs from the amount requested by the O/A. Cases of gross rent increase discrepancies may be consolidated to a single line item if the discrepancy is clearly articulated.

The Contractor shall review the O/A’s subsequent Voucher submissions to verify that the O/A processed all requested corrections.

The Contractor shall notify the COR of repeated, egregious errors, data quality issues, regular transmission of insufficient data, or if the Contractor has reason to believe the Vouchers are not reflective of the properties true composition. The Contractor shall notify the COR via email within 5 business days of making the determination.

5.2.5 Rent and/or Utility Allowance Changes

The Contractor shall verify that all approved rent and/or utility allowance changes are reflected in the Voucher. The Contractor shall verify that the rent and/or utility allowance change(s) were incorporated accurately within 45 days of receiving the Form HUD-92458, Rental Schedule Low Rent Housing (Rent Schedule) from HUD. The Contractor shall ensure that adjustments are made as indicated on the Rent Schedule and that the rent and/or utility allowance changes are made effective on the effective date noted on the signed fully executed Rent Schedule.

The Contractor shall notify the COR via email if the Gross Rent Increase/Utility Allowance Changes are not requested on the voucher within 90 days of execution of the Rent Schedule. This notification email shall be sent within 95 days of the execution of the Rent Schedule.

5.2.6 Special Claim Review, Approval, Rejection, or Adjustment The Contractor shall review and approve special claims forms submitted by the O/A and verify, and either approve, reject, or adjust special claims in accordance with the Special Claims Processing Guide, other applicable HUD guidance and information provided by the O/A. The Contractor shall review and notify the O/A of the determination within 30 days of receipt of the special claim form from the O/A. The Contractor shall execute the forms and indicate whether the claim is approved, rejected, or adjusted. The Contractor shall explain any rejection or adjustment of claims to the O/A. The Contractor shall not approve a special claim on a Voucher without prior review and approval of that special claim.

5.2.7 Special Claim Log

The Contractor shall develop and populate a Special Claims Log that includes the following data:

· project name

· Section 8 project number

· date received

· approved amount

· contact person

· claim status (approved, rejected, adjusted)

· claim approval number (if approved).

The information contained in the Special Claims Log shall be transmitted to iREMS no less than once a month.

5.2.8 Denied or Reduced Claims

The Contractor shall, upon receiving additional information from the O/A after a denied or reduced claim, review any new or additional supporting documentation regarding the special claim. The Contractor shall inform the O/A of the result of this supplementary review within 30 days of receipt of additional information from the O/A. The O/A has one opportunity to submit additional information regarding a denied or reduced claim.

5.2.9 Retaining Copies

The Contractor shall retain copies of approved special claims and supporting documentation for the duration of the contract period of performance. The Contractor shall submit copies of approved special claims and supporting documentation to the COR via email within the last 14 days of the contract period of performance.

Performance Standards

a) Standard: 100% of vouchers are reviewed and transmitted to HUD within 15 days of receipt or by the 25th of the month, whichever is later.

AQL: 2% deviation from standard.

b) Standard: 100% of vouchers are reviewed to verify that rent and/or utility allowance change(s) were incorporated accurately within 45 days of receiving Rent Schedule.

AQL: 5% deviation from standard.

Deliverables A004 HAP Voucher Submissions A005 Discrepancy Notification A006 Gross Rent Increase/Utility Allowance Changes Notification A007 Copies of Approved Special Claims / Supporting Documentation

5.3 Tenant Health and Safety

The Contractor shall accept and record tenant concerns including but not limited to health, safety, and maintenance issues and follow-up with owners to ensure that owners take appropriate corrective action. The Contractor shall have and maintain a tracking system for recording and reporting concerns and inquiries, and input this applicable information in to iREMS within three business days of receipt of each tenant inquiry. The Contractor shall track the following data elements and provide the information as part of the Monthly Status Report (see section 5.7).

Required data elements:

1. Identifies type of concern- Life Threatening or Non-Life Threatening

2. Date and Time the call or correspondence was received by the Contractor

3. Property identification number such as: IREMS number or Contract Number

4. Property information- Name, address, phone number

5. O/A information- Name, address, phone number, and email address

6. Caller /Resident Name

7. Caller/Resident contact information (phone number, mailing address, email address (if applicable)

8. Date, time, and method of O/A notification

9. Date and time concern is closed

10. Nature of the concern- The Contractor must provide a detailed description of the concern(s) that are being raised

11. Actions Taken- The Contractor must provide a detailed accounting of the actions taken by the Contractor and O/A. The narrative must include details regarding all follow up contact that has taken place, including date, time, and method of follow up. In addition, a detailed accounting of proposed and then the actual corrective actions that have been taken by the O/A to address / mitigate the concern(s), including scheduled completion dates and actual completion dates.

The Contractor shall notify the O/A of non-life-threatening tenant concerns or inquiries within one business day of receipt of the tenant concern or inquiry. The Contractor shall direct the O/A to contact the tenant to clarify the nature of the issue. The Contractor shall direct the O/A to report the planned actions and scheduled completion date of corrective measures by the next business day. In addition, the Contractor shall:

· Notify tenant of O/A’s planned corrective actions and scheduled completion date not later than one business day after receipt of that information from the O/A.

· Contact O/A to verify completion of corrective actions within one business day following the scheduled completion date and notify the tenant.

· Monitor O/A’s corrective action completion performance and keep tenant informed of changes in corrective actions and/or scheduled completion dates until corrective actions are completed and verified by the tenant.

The Contractor shall respond, document and notify the O/A and the COR of life-threatening health and safety issues within one business hour of receipt of complaint or inquiry or other knowledge of the issue, or before Close of Business (COB) (whichever is sooner). The Contractor shall contact the tenant within 24 hours of the tenant’s inquiry to provide an update. Until final resolution of issue, the Contractor shall continue to provide follow-up information to the tenant daily. All action taken in response to life-threatening health and safety issues shall be documented by the Contractor. When responding to life-threatening health and safety issues, the Contractor shall:

· Follow-up with O/A on life-threatening health and safety issues and corrective actions needed.

· Provide O/A with time-frame to correct life-threatening health and safety issues.

· Ensure the O/A takes appropriate steps to eliminate life-threatening health and safety issues.

· Notify the COR of O/A’s failure to take corrective action.

· Notify the COR of the completion of required corrective actions within one business day of completion.

The table below summarizes the required response times for life threatening and non-life threatening tenant concerns:

In some cases, however, the Contractor staff shall not become actively involved in resolving a concern. The Contractor staff shall refrain from involvement in:

· disputes involving third parties;

· lawsuits involving residents and O/As;

· eviction matters; and

· interpretations of local laws and ordinances.

5.3.1 Follow up on HUD REAC Inspection

When exigent Health and Safety issues are found during a REAC inspection, REAC places a task in iREMS which is sent to the Contractor. The Contractor shall request by the next business day following iREMS notification that the O/A provide an Owners Certification that All Health and Safety Items Have Been Corrected form to the Contractor within three business days following iREMS notification. If the form is not received within 3 business days, the Contractor shall notify the COR via email within five business days of iREMS notification.

5.3.2 Interaction with Groups and Inquiries

Responding to Outside Inquiries If the Contractor receives an inquiry from an outside group, including but not limited to congress, the media, advocacy groups, or resident organizations, the Contractor shall notify the COR of receipt and provide a written copy of the inquiry to the COR within one business day. Upon request of the COR, the Contractor shall gather information relevant to the inquiry and submit that information to the COR within five business days of the request. If necessary, the Contractor shall contact the O/A, tenant(s), or other parties regarding the inquiry.

Relations with Resident Organizations O/As are expected to recognize legitimate resident organizations that meet regularly, operate democratically, and are representative of all residents in the development. The Contractor shall monitor to ensure that:

· O/As do not impede either residents' reasonable efforts to organize, or activities of resident organizations to reasonably represent resident interests (24 CFR, 245.105);

· O/As provide an accessible meeting space on the property's premises, if available, to allow legitimate resident associations to hold meetings. O/As may not unreasonably withhold the use of this space when it is requested by:

a) a resident organization in connection with the representational functions of the organization;

or

b) residents seeking to organize…