SOW MBA FHA 221d4 Affordable.pdf

Statement of Work

Project Title: FHA Affordable/221(d)(4) Training Program

Background

The purpose of this requirement is to ensure that HUD’s underwriters understand large scale lending. The Mortgage Bankers Association (MBA) shall conduct a 3-month instructor-guided training, “FHA Affordable/221(d)(4) Training Program” for the lending industry and FHA-approved lenders that submit loan applications for FHA-insured multifamily mortgages that are funded from tax credit proceeds. The HUD participants will participate in the 3½ months web-based training focused on underwriting affordable multifamily transactions. Participation and successful completion of the course aids in developing the skills of HUD Multifamily staff working in an underwriting or technical assistance role.

Scope of Work/Objective

The objective of this requirement is to obtain training for HUD underwriters to improve their knowledge of affordable housing and affordable housing finance terms; understand the low-income housing tax credit and tax-exempt bonds; clarify HUD's various roles in providing affordable housing; summarize regulations regarding affordable/LIHTC financing; explore the roles of the development team; review requirements for new construction and substantial rehabilitation transactions; clarify HUD Multifamily Application Processing (MAP) Guide requirements; comprehend key underwriting components; categorize sources and uses as mortgageable and non-mortgageable; and outline construction loan administration and servicing affordable 221(d)(4) new construction or substantial loan transactions.

Description of Work

Provide training tailored to processing and underwriting FHA-insured mortgages under the 221(d)(4) new construction and substantial rehabilitation program that are financed with tax credit proceeds. Provide the HUD participant with twice a week, two-hour instructor-guided training and a final exam administered by the contractor to assess participants understanding of and ability to underwrite affordable new construction and substantial rehabilitation transactions financed with LIHTC.

Specific Requirements/Performance Standards

Provide 3-month training from September 4, 2024, to December 17, 2024, for 15 HUD staff tailored to processing and underwriting affordable FHA-insured mortgages under the 221(d)(4) new construction and substantial rehabilitation program. The contractor shall provide the HUD participant with a virtual kick-off for an introduction and overview of the FHA section 221(d)(4) program and the affordable housing market; two-hour instructor-guided training on the course topics shown in the chart below. The contractor shall administer a final exam to assess participants understanding of and ability to underwrite affordable new construction and substantial rehabilitation transactions financed with LIHTC. The course topics that will be covered are:

Course Topics

Virtual kick-off – FHA Program Overview and the Affordable Housing Market

Course 1: Introduction to Affordable Housing and History of LIHTC

Course 2: Tax-Exempt Private Activity Bonds

Course 3: HUD's Various Roles

Course 4: The Development Team and Development Budget

Course 5: AEC Review

Course 6: Appraisal and Market Study

Course 7: Environmental Analysis

Course 8: MAP Guide Chapter 14 and Related Chapters

Course 9: Underwriting the Affordable Deal

Course 10: Legal and Closing Matters

Course 11: Construction Administration/Servicing

Course 12: The Rest of the Industry

Quality Control Plan

The Contractor shall develop, maintain, enforce, and document a Quality Control Plan (QCP). 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 contractors methodology for identifying and recruiting qualified personnel. The QCP shall also provide the contractors methodology for establishing an internal feedback system for support personnel, and for resolving problems identified by that feedback system.

Confidentiality of Information

Unless otherwise specified, all financial and personal data, which is produced or otherwise available to the contractor during the performance of this contract, is considered confidential and shall not be used for any purpose other than performance of the work under this contract.

Regardless of the form of this data, the contractor agrees that no employees will disclose or allow disclosure of any such data or derivatives thereof to third parties, except as may be required in the performance of this task order.

Quality of Support

The Contractor shall ensure that all support personnel are adequately trained, possess the requisite experience, and are otherwise fully qualified to provide the high level of support required by the Department prior to being assigned to this effort.

Period of Performance

The period of performance is from September 4, 2024, to December 17, 2024.