Attachment 0009 - A and M Tasks (Informational Purposes Only).pdf

Attachment 0009 - Asset Manager (A&M) Tasks

5 SPECIFIC TASKS

5.1 TRANSITION IN

The Contractor shall complete the requirements in Section 1.13 (Transition In) of the PWS.

5.2 MARKETING AND SALES

The Contractor is required to list, market, select the best offer, execute sale documents, oversee the closing process, and ensure that sale proceeds are delivered to HUD in a no more than one (1) business day. Although the PWS prescribes certain requirements for making decisions about how best to dispose of each property, the Contractor has extensive ability to influence HUDs net return per property. The Contractor shall properly exercise its authority to sell properties in a manner that is consistent with the requirements of the PWS, achieves the greatest net return to the government, and minimizes holding time.

The tasks under this PWS, whenever necessary, have been described as outcomes and the Contractor may determine the most efficient method for accomplishing the task. Some tasks are prescribed in part by regulation and legislation and specific process steps have been identified.

5.2.1 QUALITY ASSURANCE REVIEWS

When defective performance is noted through HUDs quality assurance activities, HUD will request the Contractor to correct the defective performance. The Contractor shall, no later than five (5) business days following receipt of HUDs notice of defective performance, respond in writing to this request, describe the corrective actions taken, or to be taken, and when any outstanding corrective actions shall be completed. If corrective action is not possible, HUD reserves the right to take other remedies permitted by the contract.

5.2.1.1 Asset Management Scorecard

The Contractor shall maintain a minimum satisfactory rating on the requirements of the Asset Management (AM) Scorecard. The requirement elements and minimum satisfactory ratings of the AM Scorecard as follows:

1. Marketing Strategy Promotes Sales to Actual Owner Occupants

55%

2. Inspections Initial Ready to List and Ready to Close Inspections are Completed Accurately and Timely

95%

3. Average Days to Close

45 Days

4. Percent of Properties Under Contract

45%

5. Average Days to List

17 Days

6. Average Days on Market

45 Days

7.

Qualitative

7 out of

5.2.2 COMPREHENSIVE MARKETING PLAN

Following contract award, the Contractor shall, as described in Section 1.13.1.1.2, provide to the COR and Contracting Officer an electronic copy of the Comprehensive Marketing Plan that includes innovative strategies to meet the Governments requirements. The Contractor shall utilize the sales methods and listing priorities, described in Section 1.3.25, and may utilize only those alternative sales methods included in the Contractors approved Comprehensive Marketing Plan. Unless otherwise noted in this PWS, or Section 1.3.25, the requirements apply to all sales. Following final approval from the COR, the Comprehensive Marketing Plan will be implemented and included by the Contracting Officer as an attachment in Section J as a modification to the contract after award.

The Comprehensive Marketing Plan shall address the following items:

1. How the Contractor proposes the Marketing of insured, insured with escrow and uninsured properties. The Plan shall also include procedures for timely processing of offers.

2. Advertising to potential customers and the general public (television/ print/ radio/ media/ cable television/ internet/ billboards) - Describe the type of advertising approaches to promote sales and increase awareness of HUD homes to the targeted customer base.

3. Buyer Seminars Describe the type, number and frequency of events to provide training and increase awareness of the benefits of purchasing HUD Homes. The strategy must provide coverage for entire market area.

4. Real Estate Broker Outreach Activities and Industry Meetings Describe the type, number and frequency of events planned, to provide comprehensive training to real estate brokers on the sale of HUD homes, incentives that might be available, FHA financing, etc. Describe whether courses will provide continuing education credit. The strategy must provide coverage for entire market area.

5. The Comprehensive Marketing Plan must include outreach and training for Buyer Select Closing entities. The Plan must describe the type, number and frequency of events planned to cover assigned marketing areas.

6. Lender Outreach Activities and Industry Meetings Describe strategies to work with lenders to improve lender awareness of HUD home sales. Describe plans to attend lender industry meetings, partnering to host lender/broker/buyer training, training on HUD incentives, etc.

7. Marketing Techniques Describe plans to develop and disseminate collateral materials. Describe plans to conduct comprehensive outreach efforts to cover assigned marketing area. Explain strategies that would be used to maximize the visibility and availability of HUD homes through non-traditional marketing channels, i.e., internet based advertising, guests on local community affair programs, distributing flyers, informational materials, etc.

8. Hard to Sell Properties: The Contractor shall set forth with accuracy and detail a comprehensive approach and viable solutions to selling "hard to sell properties”. The Contractor shall recommend to the COR alternative disposition strategies for "hard to sell properties, including, but not limited to, auctions and bulk sales.

9. Market Analysis Describe plans to conduct continuous market analysis. Plans should include a description of strategy to perform comparative analysis of properties with similar conditions to HUD properties, interpret marketing trends, perform inventory analysis and compare marketing and sales techniques of competitors.

10. Monthly Appraiser Review and Appraisal Analysis Describe goals and strategies for training FHA appraisers and include frequency of training sessions. Training should increase the accuracy and quality of appraisals. Describe plan to analyze appraisals (i.e. % of desk reviews; % of field reviews) and Contractor actions when a poor performing appraiser is identified.

11. Web-based Solutions and Enhancements Describe plans to use effective web-based marketing tools. (i.e., virtual tours of select properties, customer automated e-mail communications, online broker training and etc.)

12. The Contractor shall describe its plans to utilize BPOs or Automated Evaluation Tools to analyze or re-analyze properties in the Contractors inventory or establish bid thresholds.

13. The Contractors Comprehensive Marketing Plan shall include a provision to reanalyze properties that fail to sell within forty-five

(45) days from the Initial List date (24 CFR 291.205 (f)).

5.2.3 CONTINGENCY PLAN

The Contractor shall develop, maintain and implement, a Contingency Plan that addresses the gravest, as well as the most likely, problems that might arise and the Contractors planned response to the adverse events. At a minimum, the plan will cover: Subcontractor default;

data breach and/or cybersecurity strikes; hacking and major system outages, recovery from serious natural disaster as it affects the Contractors operation; employee strike; and civil disorder. Following contract award, the Contractor shall, as described in Section 1.13.1.1.2, provide to the COR and Contracting Officer hardcopy and electronic copies of the final Contingency Plan incorporating all COR comments and changes. If an event covered by the Contractors Contingency Plan occurs, the Contractor shall promptly initiate, within any applicable time periods in the plan and this PWS, and diligently conduct, the responses outlined in the plan. Changes to the Contingency Plan must be accepted in writing by the COR in advance of implementation.

5.3 INSPECTIONS

The Contractor shall perform the following property inspections:

5.3.1 INITIAL INSPECTION

The Contractor shall review the property condition report section of the HPIR, Attachment A3, prepared by the FSM Contractor prior to performing the Initial Inspection. Not later than two (2) business days from assignment to an AM, the Contractor shall ensure the Listing Broker performs an Initial Inspection using Asset Manager (AM) Property Inspection Report (Attachment A2), to ascertain whether the property is in Ready to Show condition. The Contractor shall complete the inspection form in P260 within two (2) business days of the inspection. The Contractor shall scan pictures and supporting documentation and enter comments in P260 related to any property condition variances between its inspection and the FSMs inspection report. The Contractor shall notify the COR of property condition variances. The Contractor shall ensure that the property is in a condition ready to order an appraisal.

5.3.2 PRIOR TO LIST

No sooner than two (2) business days prior to the initial listing of the property for sale, the Contractor shall ensure the Listing Broker performs a walk through inspection to ensure all initial services, work orders and repairs, if applicable, are completed as intended and ensure the property is in Prior to List Condition. The Contractor shall complete the Property Inspection Form (Attachment A2) in P260 and upload the supporting documentation within two (2) business days after the inspection complete date. The Contractor shall notify the COR of any discrepancies.

5.3.3 READY TO CLOSE

Ready to Close - No sooner than five (5) business days before closing, the Contractor shall ensure the Listing Broker performs a walk through inspection to ensure the property is in the same condition as listed or as contracted for sale. The Contractor shall also verify with the appropriate government agency that a Notice of Condemnation has not been issued and is not pending issuance. The Contractor shall complete, scan, and upload the AM Property Inspection Form (Attachment A2) into P260 and upload the supporting documentation into P260 within two (2) business days after the inspection complete date. The Contractor shall notify the COR of any discrepancies. If a Notice of Condemnation has been issued or is pending issuance, the Contractor shall disclose to this information to the buyer. If the buyer chooses not to proceed with the sale, the Contractor shall notify the COR as to the appropriate disposition of this property.

*Note: Inspections completed by the AM subcontractors in the portal are not considered "accepted” until they are approved in P260 by the Contractor.

*Note: ACA Properties are excluded from requirements 5.3.2 and 5.3.3.

5.3.4 RESERVED

5.3.5 APPRAISAL

After completion of the Initial Inspection discussed in Section 5.3.1, prior to listing a property for sale and after the property is in "Ready to Show Condition”, the Contractor shall obtain an AS IS appraisal performed by an FHA roster appraiser. The Contractor shall provide the appraiser with the Property Condition Report generated from P260. The appraisal shall be reported on a HUD-approved appraisal form and shall, along with all photographs, be scanned and uploaded into P260 using a HUD approved appraisal form. Appraisals shall be completed in accordance with the requirements outlined in HUD Handbook

4000.1 and any future policy directives. The Contractor shall work with HUD should alternate methods other than an appraisal be utilized to obtain the initial list price.

5.3.5.1 New Appraisals and Report

Upon expiration of an appraisal, the Contractor shall order new appraisals other than the appraisal that is used as one or more multiple valuation tools to help establish list price, if applicable, the appraisal can only be ordered with COR approval.

5.4 DATA UPDATES

5.4.1 DAILY POSTING OF RECORDS

The Contractor shall update P260 with all records of actions taken for marketing and sales within one (1) business day of receipt of said documents. HUD will have the ability to view daily activity associated with asset management activities on a real-time basis. At contract award, HUD will provide a list of the required documents to be loaded on P260.

5.4.2 WORK ORDER NOTIFICATIONS

The P260 Work Order Notification modular shall be used between the M&M contractors, HUD CORs and Portal users to communicate property issues that include but not limited to repairs, inspections, defective paint stabilizations, remediation etc. The Contractor shall verify the accuracy and validity of all work orders and the corrective action taken to meet their contractual timelines and requirements.

5.4.3 IMAGING

The Contractor shall scan and upload into P260 all hard copied documents received or created during the course of performing administrative, financial processing and support services.

5.4.4 DATE STAMPS

The Contractor shall date stamp all incoming correspondence with the date the document was received in the Contractors office.

5.4.5 PHYSICAL FILE MAINTENANCE AND RETENTION

The Contractor shall establish and maintain a physical property file that contains all documents and records that pertain to the disposition process for one year after closing. The actual cost of shipping files for record retention or at the termination of the contract, when incurred in accordance with the contract requirements, will be reimbursed as a pass-through expense without prior COR approval.

5.4.6 DELIVERY OF FILES UPON REQUEST

Unless otherwise specified, the Contractor shall, no later than five

(5) business days from receipt of a written request from the Contracting Officer or COR, deliver to HUD complete, accurate, legible, and accessible copies of the requested electronic or physical files.

5.4.7 COMMUNICATIONS LOG

The Contractor shall track and monitor property management related communications in P260. The Contractor shall indicate the source, subject, date received, response and resolution date of each written, email or telephonic communication. Communications in P260 should be written clearly and concisely without abbreviations or industry jargon, so a neutral third party can understand the communication. In addition, a general communications log including the above shall be maintained by the contractor. Electronic copies of this log shall be made available to the COR upon request and the actual log shall be made available at all HUD onsite reviews.

5.5 CUSTOMER SERVICE

The Contractor shall ensure that all contact with the public and HUD employees promote HUDs objectives under this PWS, encourage participation by industry professionals and potential purchasers, and result in a high level of customer satisfaction. Customers, for the purpose of this PWS, include: potential purchasers, real estate brokers, contractors, HUD employees and HUD Contractors under the M&M III structure. Customer service includes answering questions;

resolving complaints; providing property information and status;

crafting remedies and solutions and providing copies of property related documents in a prompt, professional and courteous manner. The Contractor shall respond to any general inquiries or request for information about a HUD property, even for properties not in their inventory, and refer customers to HUD or appropriate parties, when necessary.

The Contractor shall foster a good working relationship with other M&M III Contractors, especially Field Service Managers (FSMs). The AM Contractor shall ensure that any misdirected calls are referred to the proper Contractor and noted in the Communication Log of P260. The Contractor should anticipate the volume of calls to be in direct proportion to their assigned inventory volume and also be prepared to handle walk in and email communications. The Contractor shall ensure they have adequate staff that is properly trained on how to handle REO related calls.

5.5.1 RESPONSE TIME

The Contractor shall provide prompt, courteous and accurate response to all inquiries regarding both individual properties and the disposition program in general. The Contractor shall respond to all inquiries no later than one (1) business day of the date the inquiry was placed to the Contractors office or the expiration of such shorter or longer period of time expressly authorized or required by this

PWS.

5.5.2 TOLL FREE PHONE NUMBER

The Contractor shall maintain a toll free telephone number available for use by HUD employees and customers.

5.5.3 GOVERNMENT INQUIRIES

The Contractor shall notify the COR within one (1) business day following receipt of any request for information from an elected or public official and will, no later than one (1) business day of said request, provide written information to assist HUD in preparing a response.

5.5.4 OTHER CORRESPONDENCE

The Contractor shall provide written information required for response to any contract related issues to the COR or other designated HUD representative no later than two (2) business days from HUDs request for such information.

5.5.5 MEETINGS

As requested by HUD, the Contractor shall participate in meetings, conference calls, working sessions and any other discussions relative to the marketing and selling of HUD properties. This shall include, but shall not be limited to, answering questions, addressing processes and performance issues, and advising HUD on other concerns.

5.6 REQUIRED REPORTS

Reviewing the periodic reports that the Contractor submits provides the COR with regular, standardized information about specific performance matters. Reviewing these reports will be the first means of monitoring the Contractors adherence to the PWS and of measuring its performance against the Performance Requirements Summary (PRS). The COR will review these reports when they are submitted and, as appropriate, request supporting or clarifying information. The required reports are inclusive of, but not limited to the following:

5.6.1 QUALITY CONTROL REVIEW REPORT

The Contractor shall conduct regular quality control reviews in accordance with its QC plan and submit monthly reports on the tenth (10th) day of the month following the month of activity covered in the report, by emailing to the appropriate COR, a monthly report summarizing the results of its QC actions and findings including any policy, procedural, personnel or system changes or corrective actions taken as a result of the QC findings.

5.6.2 ASSET CONTROL AREA (ACA) STATUS REPORT

Contractor shall submit a weekly report including the number of eligible properties acquired in each ACA area, and NOAs delivered to the participant, executed sales contracts, demolitions pending, valuation appeals pending, delayed closings and properties closed.

5.6.3 ANNUAL AUDITED FINANCIAL STATEMENTS

No later than ninety (90) calendar days after the Contractors fiscal year ends, the Contractor shall promptly furnish the Contracting Officer with audited, year-end financial statements (balance sheet also known as statement of financial position, income statement, statement of cash flow) for the most recent fiscal year prepared in accordance with generally accepted accounting principles and reporting practices.

5.6.4 INFORMATION TO SATISFY PROGRAM INQUIRIES

HUD intends to capture all relevant and applicable property data directly in P260. However, there may be property information that is in the Contractors case files and not in P260. From time to time, the COR or Contracting Officer may request such information to satisfy program inquiries from Federal and non-federal agencies, entities, and individuals. When requested by the COR or Contracting Officer, the Contractor shall provide the requested information. The request from the COR or CO will specify the required format, content, distribution, and due date.

5.7 TRAINING

The Contractor shall conduct the following trainings monthly:

Benefits of purchasing HUD Homes Training to real estate brokers on the sale of HUD homes, incentives that might be available, FHA financing Buyer Select Closing Entities FHA appraisers and include frequency of training sessions Broker/Agent training

The Contractor shall submit a monthly training report to the COR. The training report shall include:

1. Type of trainings conducted

2. Number of trainings conducted for each type of training

3. Any future scheduled trainings

4. Dates of trainings conducted

5. Number of attendees in trainings

6. Location of trainings

5.8 TRANSITION OUT

Upon expiration or termination of this contract, new acquisitions shall be assigned to the new contractors, by the government, beginning the first day following expiration or contract termination. To ensure a smooth transition out and continuity of services to external customers, Contractors shall cooperate in good faith for transfer and assignment of ongoing sales contract activities to new Contractors. AM Contractors will not continue to receive new acquisitions upon expiration of their contract but shall follow an orderly approach to transfer property files and assignment of unsold inventory and properties with pending contracts to new Contractors.

Contractors shall perform all duties assigned to “Former Contractors” in Section 1.13 Transition–In. The transition out period for assignment of unsold pending contracts to new Contractors shall not exceed 75 calendar days. Prior to beginning a Transition Out, the Contracting Officer may provide the Contractor with specific detailed protocol for transfer of ongoing contract activities as may be required to facilitate a smooth transition.

6 DELIVERABLES

The Contractor shall complete all work and submit all deliverables as specified herein. The Government reserves the right to make changes to delivery dates.

Number Name Frequency Quantity

A001 Comprehensive Marketing Plan once 1 Due 10 Business days after post award conference

A002 Contingency Plan once 1 Due 10 Business days after post award conference

A003 Training Report monthly 1 Due 10th day of the month following the month of activity covered in the report.

A004 Quality Control Review Report monthly 1 Due 10th day of the month following the month of activity covered in the report.

A005 Asset Control Area (ACA) Status Report weekly 1

A006 Annual Audited Financial Statements

Annual 1

Due no later than ninety (90) calendar days after the Contractors fiscal year ends

A007 Quality Control Plan once 1 Due 10 business days after the post award conference

A008 RDOA Spreadsheet once 1 Due within 5 business days after request from COR

As Required A009 Information to Satisfy Program Inquiries Per Section C 1.3.1.6