Attachment A - Statement of Work.pdf

FEDERAL HOUSING FINANCE AGENCY

STATEMENT OF WORK

Professional Services in Support of the

FHFA Duty to Serve Program

BACKGROUND

The Federal Housing Finance Agency (FHFA) was created by the Housing and Economic Recovery Act of 2008 (HERA) to regulate and supervise Fannie Mae, Freddie Mac, the 11 Federal Home Loan Banks, and the FHLBanks’ Office of Finance (together, the Regulated Entities). HERA combined three organizations, the Office of Federal Housing Enterprise Oversight, the Federal Housing Finance Board, and a group from the Department of Housing and Urban Development, which collectively had previously regulated these entities. These institutions play critical roles in supporting our nation’s housing finance system. Fannie Mae and Freddie Mac guarantee mortgage-backed securities (MBS) and hold mortgages and MBS for investment. The Federal Home Loan Banks lend money to banks and other financial institutions using mortgages as collateral and invests in mortgage-related assets. In 2008, FHFA placed Fannie Mae and Freddie Mac in conservatorships, where they remain.

Since September 2008, FHFA has been the conservator of Fannie Mae and Freddie Mac. In this role, FHFA focuses on improving the Enterprises’ operational efficiency and effectiveness, maintaining foreclosure prevention efforts and credit availability for new and refinanced mortgages, reducing the Enterprises’ footprint in current mortgage finance markets, and building infrastructure for future mortgage finance markets.

Additional information on FHFA and its mission can be found at: http://www.fhfa.gov.

FHFA’s responsibilities include both conservatorship and regulatory duties. The Duty to Serve (DTS) Program falls under FHFA’s regulatory responsibilities.

HERA amended the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (Safety and Soundness Act) to require that the Enterprises provide leadership to the market in developing loan products and flexible underwriting guidelines to facilitate a secondary market for mortgages for very low-, low-, and moderate-income families for three “underserved markets: (1) manufactured housing, (2) affordable housing preservation, and (3) rural housing. The DTS provision requires the Enterprises to better serve these markets.

The Safety and Soundness Act also requires FHFA to establish, by regulation, a manner for evaluating whether, and the extent to which, the Enterprises have complied with the DTS. The statute further provides that FHFA shall annually evaluate and rate each Enterprise’s performance in the three DTS underserved markets, taking into consideration four factors: (1) loan product assessment factor, (2) outreach assessment factor, (3) loan purchase assessment factor, and (4) investments and grants assessment factor.

http://www.fhfa.gov/

FHFA’s final DTS rule was published in the Federal Register on December 29, 2016 and became effective on January 30, 2017. The rule may be found at:

https://www.gpo.gov/fdsys/pkg/FR-2016-12-29/pdf/2016-30284.pdf. FHFA published the Enterprises’ draft 2025-2027 3-year Underserved Markets Plans (Plans) on June 11, 2024; and solicited public input. FHFA and the Enterprises continue to refine the proposed Plans, with the goal of finalizing the Plans so that they become effective by January 1, 2025.

1.0 OBJECTIVE

FHFA requires professional services to support its DTS Program. FHFA seeks contractor assistance with ongoing monitoring and evaluation of the Enterprises’ performance in accordance with the 2024 year of their 2022-2024 Plans, their 2025- 2027 Plans, and their 2028-2030 Plans. FHFA staff will develop all final recommendations to the FHFA Director.

2.0 SCOPE

FHFA requires a contractor with deep knowledge, experience, subject matter expertise and skills in a number of markets including, but not limited to:

• Affordable single-family and multifamily rural housing;

• Affordable multifamily housing, including manufactured housing communities, energy efficiency, climate resiliency, expiring use properties; and

• Affordable single-family housing, including manufactured housing units, distressed properties, housing rehabilitation, shared equity housing, energy efficiency, and climate resiliency.

Exhibit 1 to this SOW lists the DTS statutory and regulatory activities that may require a contractor’s specialized expertise.

The scope also requires specialized subject matter expertise and skills in real estate development, lending and secondary mortgage market experience, and familiarity with the Enterprises’ current programs related to the DTS underserved markets, as follows:

• Innovation in addressing the housing-related needs of underserved communities;

• Affordable housing program requirements and subsidy sources;

• Market needs and familiarity with current financial and equity products serving the affordable housing market;

• High-needs rural regions or high-needs populations, or with organizations serving high-needs rural regions or high-needs populations;

• Knowledge of financial institutions of different assets sizes and with different specializations, including but not limited to, community development financial institutions (CDFIs); and

• Knowledge of development, financing, and other support for the development or preservation of affordable and subsidized properties.

https://www.gpo.gov/fdsys/pkg/FR-2016-12-29/pdf/2016-30284.pdf

3.0 TASKS

The Contractor shall undertake specific tasks to accomplish the objectives enumerated above when requested. Some of the tasks enumerated above will require a short turnaround time for completion, sometimes of less than three (3) business days after receiving an assignment. Additionally, from time-to-time the priorities of the tasks that are most urgent to complete may change. To ensure that the Contractor is able to meet short turnaround times for the completion of tasks as well as ensuring that FHFA priorities are understood, the Contractor must be able to engage in regular and frequent communication with FHFA staff. Exhibit I, Statutory and Regulatory Activities, highlights the areas of activities that may require specialized expertise and skills to provide contractor services to the FHFA. The tasks will include:

3.1 Assisting in reviewing and analyzing proposed DTS Plans and Plan modifications prepared by the Enterprises.

a. Use deep experience to help evaluate the potential impact of actions proposed in draft Plans and Plan modifications.

b. Provide insight on the best ways to measure and track Enterprise performance.

c. Provide analysis, specifically including questions as well as recommendations, of opportunities to strengthen actions proposed in the Plans.

3.2 Assisting in reviewing quarterly and annual narrative reports and performance data and evaluating the impact of the Enterprises’ accomplishments under their DTS Plans.

a. Provide expert input to inform annual evaluations of the Enterprises’ impact under their DTS Plans, using narrative reports and other documents submitted by the Enterprises to FHFA, data collected by FHFA, and market knowledge.

b. Compare Enterprise-submitted documents with any views expressed orally or in writing by outside stakeholders to assist FHFA staff in analyzing Enterprise performance.

c. Draw on deep expertise in the specified DTS underserved markets to provide insight to FHFA staff on Enterprise performance.

3.3 Assisting in reviewing and analyzing underserved market data.

a. Assist FHFA staff in monitoring Enterprise activities to facilitate performance data reporting and collection.

b. Assist FHFA in developing tools to track ongoing Enterprise performance in underserved markets.

c. Analyze Enterprise performance data and compare it to benchmark data and objectives included in the final Enterprise Plans.

d. Recommend mid-course revisions to Plan activities, as well as mid-course improvements to data collection and dissemination strategies, where appropriate.

e. Assist FHFA in data analysis to inform FHFA’s policy decisions related to the

DTS.

Other tasks may include:

3.4 Developing communication tools to use in public FHFA documents (such as the Annual Report to Congress).

3.5 Assisting in reviewing, analyzing and compiling public input and making recommendations to FHFA staff.

a. Read and summarize public input on Enterprise performance under their Plans (and on draft Plans published by the Enterprises in the future).

b. Analyze the public input to look for commonalities, trends and ideas that should be given greater weight as FHFA staff develops its recommendations.

3.6 Providing recommendations to FHFA staff on more efficient processes for performing required tasks.

a. FHFA values ongoing process improvement. From time to time, the Contractor may be asked to make suggestions for or assist in developing improvements to the evaluation process.

3.7 The Contractor may be asked to provide subject matter expertise to FHFA’s Office of Housing and Community Investment and other offices within FHFA as identified by the Contracting Officer’s Representative (COR). Tasks may include:

a. Applying best practices approaches to housing finance innovation to serve very low-, low-, and moderate-income families.

b. Providing knowledge of current literature on a specified DTS underserved market.

c. Knowledge of and familiarity with a variety of relevant stakeholders, which may include government agencies, financial services providers, community-based lenders, nonprofit developers and borrowers.

3.8 Additional activities may include but are not limited to the following:

a. Affordable Rural Housing - Providing FHFA with independent assessments, as requested, of financing options for the specified high needs rural regions and populations.

b. Affordable Multifamily Housing - Providing FHFA with independent assessments, as requested, of options for manufactured housing community financing and small multifamily rental financing.

c. Affordable Single-Family Housing - Providing FHFA with independent assessments, as requested, of options for financing of manufactured housing units and shared equity homeownership.

4.0 KICK-OFF MEETING

Within five (5) business days after award, the Contractor shall participate in a kick-off meeting with the FHFA Contracting Officer (CO), the COR, and other designated FHFA staff to discuss specific requirements and contracting objectives of the contract. The Contractor shall submit to the CO and the COR a written summary of the meeting describing the Contractor’s understanding of the key points and documenting any clarifications of requirements within five (5) business days after the kick-off meeting.

5.0 PROGRAM MANAGEMENT

The Contractor shall establish a staffing approach to manage the contract that clearly depicts the lines of program authority and oversight. There shall be a clear line of program authority among all organizational elements. The Contractor shall be fully responsible for integration and coordination of the work in this SOW. The Contractor’s Project Manager shall provide day-to-day management of this SOW, including assignment/management of workloads and due dates, SOW requirements, and COR interface.

6.0 DELIVERABLES AND WORK PRODUCTS

Deliverables shall be submitted to the COR. The Contractor shall provide deliverables in draft form on or before the due date. All deliverables must be delivered electronically in the format requested. If the COR does not provide comments to the Contractor within ten (10) business days after receipt of the draft, the draft shall be considered final. If the COR provides comments to the Contractor on the draft, the Contractor shall respond to those comments and submit a revised deliverable to the COR within five (5) business days of receiving the comments for formal acceptance and written approval. All deliverables shall become the sole property of FHFA.

Work products (identified in the table below) shall be submitted simultaneously to the DTS Program Staff. The Contractor shall provide work products (e.g., summaries, assessments, analyses, other work products requested related to the tasks, etc.) in draft form on or before the due date. Work products must be delivered electronically in the format requested. If the DTS Program Staff does not provide comments to the Contractor within ten (10) business days after receipt of the draft, the draft shall be considered final. If the DTS Program Staff provides comments to the Contractor on the draft, the Contractor shall respond to those comments and submit a revised work product to DTS Program Staff within five (5) business days of receiving the comments for formal acceptance and written approval. All work products shall become the sole property of FHFA.

The Contractor and FHFA shall conduct a technical planning meeting (also known as a kick-off meeting) to define expected program outputs, and the results of the meeting will inform the Project Plan. The Contractor shall coordinate with FHFA to develop a Project Plan that details the tasks and activities with milestones and timeframes to achieve the program objectives within 10 business days after the kick-off meeting.

In addition, the Contractor must ensure that written deliverables are in an electronic format (e-documents) - either in a Microsoft Office product format (Word/ PowerPoint/ Project/ Excel) or an Adobe Acrobat PDF format; and are in compliance pursuant to Section 508 of the Rehabilitation Act of 1973, as amended (29 USC 794d), and its implementing standards and guidelines (36 CFR Part 1194).

7.0 STATUS MEETINGS

The Contractor shall be available to meet with the CO, COR, and/or the FHFA Program Office representative(s) upon request to discuss progress, exchange information, and resolve any emerging technical problems and issues. These status meetings will primarily take place via conference calls and shall be expected to occur on a weekly basis. Additional details about the content and frequency of status meetings will be provided at the kick-off meeting. The Contractor shall provide to the COR a summary of the status meeting within three (3) business days after the date of the meeting.

8.0 MONTHLY PROGRESS REPORTS

Monthly progress reports shall be submitted to FHFA by the 5th business day of the month following the month being reported and shall include the following:

a. Summary of progress during the reporting period (include any significant technical information).

b. Unanticipated technical or management problems of significance and suggestions for how to address them.

c. Problems anticipated in future reporting periods.

d. Summary of important meetings, briefings, trips and conferences during the period of the report and those planned for the following period.

e. Requirements for any changes in key personnel.

f. Level of remaining effort (in estimated hours and costs) for any known task that will require more than 10 hours of work in the following month.

All reports and correspondence shall be submitted to the COR, with copies simultaneously forwarded to the CO.

ITEM

NUMBER

DELIVERABLE DUE DATE DELIVER TO

1 Kick-Off Meeting Five business days after award

COR/CO

2 Kick-Off Meeting Summary Within five business days after

COR/CO

kick-off meeting date.

3 Project Plan Within 10 business days after the kick-off meeting.

COR/CO

4 Deliverables As requested. COR 5 Work products

• Scoring Templates

• Scoring Recommendations

• Qualified Allocation Plan

(QAP)

• Trainings and Reference

Manuals

As requested. DTS Program Staff

6 Monthly Progress Reports 5th business day of following month.

COR/CO

7 Transition-Out Plan Within 10 business days after date of COR request.

COR/CO

8 Status Meetings As requested. COR/Program Staff

9 Status Meetings Summary Within three business days after status meeting date.

COR/CO

9.0 GENERAL REPORT REQUIREMENTS

The Contractor shall provide all written work products/deliverables to FHFA in electronic format with read/write capability, using applications compatible with those of FHFA. The Contractor shall ensure that all activities and work products/deliverables are identified, documented, and tracked so that the Contractor’s performance can be continuously evaluated and monitored for timeliness and quality service.

The Contractor shall produce reports with links to associated and referenced documents and shall prepare documents in formats appropriate to the documents and audience.

This may include various formats, such as Word, html, or PowerPoint.

All work products shall be in accordance with FHFA standards, policies and procedures governing documents and presentations.

10.0 QUALITY ASSURANCE

The Contractor shall plan, implement, and comply with a quality control program for activities and work products/deliverables under the contract, which shall conform to quality control best industry practices.

12.0 PERSONNEL SUPERVISION

The day-to-day supervision of Contractor personnel and direct control over the work performed by Contractor personnel shall be the sole responsibility of the Contractor.

However, the COR may require the Contractor to shift Contractor personnel as necessary to meet workload demands and mission requirements under the contract.

The Contractor may be allowed to trade off among the labor categories allowed within the applicable contract line item not-to-exceed amount. Below is a list of key personnel labor categories and descriptions.

13.0 KEY PERSONNEL LABOR CATEGORIES

The Contractor shall provide qualified key personnel to provide the services specified in this SOW.

Project Director (PD)

Description and Responsibilities: Knowledge of the mortgage finance industry and all areas of the secondary mortgage market value chain. Possess deep experience and skills in one or more of the areas required for Subject Matter Experts (SMEs). In addition, the PD must have sufficient knowledge of all of the Duty to Serve areas to bring consistency to the individual work products of multiple SMEs. The PD shall also advise DTS Program Staff in setting overall direction for the project.

Preferred Education and Experience: At least twelve (12) years of mortgage finance industry experience, including at least five (5) years of specialized experience in at least one of the following specific affordable housing finance sectors: 1) Affordable multifamily housing; 2) Affordable single-family housing; or 3) Affordable rural housing.

Further, the PD should have experience working with federal government housing and financing programs at senior agency levels that will allow them to understand agency decision-making processes. A master’s degree is preferred.

Subject Matter Experts (SMEs)

Description and Responsibilities: The SMEs shall collectively possess knowledge of the mortgage finance industry and all areas of the secondary mortgage market value chain, to include the activities listed under Exhibit I, DTS Statutory, Regulatory, and Additional Activity. The SMEs shall possess deep experience and skills in the areas of manufactured housing, affordable housing preservation, and/or rural housing. The SMEs are expected to perform independent research and analysis on key issues related to the Enterprises’ Duty to Serve activities. The SMEs will review and evaluate proposed and ongoing Enterprise Duty to Serve activities and provide FHFA staff with an independent assessment of those strategies. It is expected that the SMEs will utilize available resources to perform the research and analysis needed to develop an independent assessment. FHFA expects that more than one individual will be proposed for this labor category. Some research and other tasks requiring lesser skill may be performed by Functional Experts/Sr. Consultants.

Preferred Education and Experience: At least twelve (12) years of mortgage finance industry experience, including at least five (5) years of specialized experience in: 1) Affordable multifamily housing; 2) Affordable single-family housing; or 3) Affordable rural housing. A master’s degree is preferred.

Functional Expert(s)/Sr. Consultant(s)

Description and Responsibilities: Provide specialized experience on core needs specific to this SOW. Leads research and advises on methodology and design activities.

Applies technical and analytical approaches to address FHFA-identified issues related to underserved market assessment and other related areas. Assists SMEs with research and other tasks, as appropriate. Vendors may propose more than one individual for this position.

Preferred Education and Experience: Minimum of five (5) years of experience in the mortgage finance industry and a four-year degree from an accredited college or university is preferred.

Project Manager

Description and Responsibilities: Oversees project management tasks and projects or significant portions of projects, including planning, monitoring and reporting status (including budget and schedule), identifying and managing/mitigating risks, developing communication strategies and drafting communications, communicating directly with outside stakeholders and FHFA staff, and developing and implementing quality assurance procedures.

Preferred Education and Experience: Minimum of five (5) years of consulting and/or financial services industry experience and a four-year degree from an accredited college or university is preferred. A Project Management Professional (PMP) certification is preferred.

Data Specialist

Description and Responsibilities: Identifies what data FHFA will need to collect from the Enterprises to assess their compliance with the DTS Program. Identifies data proxies to use where data is missing. Proposes innovative solutions for meeting data needs where data is lacking, scarce or uneven in quality.

Preferred Education and Experience: Minimum of five (5) years of consulting and/or financial services industry experience. Advanced degree in Economics, Finance, Public Policy, Urban Planning, or related Social Sciences field is preferred.

14.0 SECURITY

The Contractor shall safeguard all Government property, equipment, information and materials provided during performance of this contract. No Government property shall be removed from FHFA by Contractor personnel without written authorization from the CO or the COR.

The Contractor must adhere to the security requirements contained in this SOW.

15.0 GOVERNMENT-FURNISHED PROPERTY AND INFORMATION

The Contractor shall have access to FHFA office working space. FHFA shall provide the Contractor access to FHFA’s Local Area Network through the use of security hard or soft tokens; the Contractor shall return any hard tokens to the COR at the completion of the contract. FHFA may provide laptop computers, when necessary, for use at FHFA headquarters or the Contractor’s worksite(s). FHFA will provide Contractor personnel with appropriate access to and orientation in the operation of FHFA proprietary systems, as well as all related manuals and guidelines, as necessary and appropriate, and access to standards, policies and procedures governing documents and presentations.

The Contractor may be required to use government-provided software for graphics and design work if required.

16.0 OTHER DIRECT COSTS – TRAVEL

As authorized and approved by the COR, travel by Contractor personnel will be performed in accordance with the terms and conditions of this contract pursuant to the Federal Travel Regulations (FTR). Travel expenses shall not be incurred without Government approval/authorization. All travel required by the Government outside of the 50-mile local commuting area(s) will be reimbursed to the Contractor in accordance with the FTR. The Contractor’s Program Manager shall submit the travel request no later than five (5) days prior to travel to allow for review and approval by the COR.

Local travel is not authorized for reimbursement.

To be considered for reimbursement, travel requests must contain:

• Date(s) and time(s) of travel

• Estimated cost of travel

• Traveler’s name and position title

17.0 TRANSITION-OUT PLAN

The Contractor shall develop a Transition-Out Plan that describes a transition-out strategy.

A. The Contractor shall deliver the Transition-Out Plan to FHFA within ten (10) business days from the date of the COR’s request.

B. The Contractor shall provide to FHFA an inventory of all operational, procedural, educational, and any other documentation and presentations produced as part of supporting the contract upon FHFA request.

C. The Contractor shall continue to fulfill the requirement(s) and continue all current work in progress under the contract until the successor contractor assumes full operational responsibility. The Contractor shall not destroy, delete, or otherwise dispose of any files or data upon expiration or termination of the contract without prior permission from the COR.

D. The Contractor shall permit the successor contractor (and the successor contractor’s personnel) to observe and become familiar with any and all operations specified in the contract for a timeframe specified by the COR, prior to the expiration or termination of the contract.

E. The Contractor shall fully cooperate with the successor contractor and FHFA during transition out so as not to interfere with their work or duties.

F. The Contractor shall fully support all requests for information and data under the contract required to ensure a seamless transition to a new contractor.

18.0 NON-PERSONAL SERVICES

This contract shall not be used to procure services prohibited by FAR Subpart 37.1. To avoid circumstances that may create personal services, the Contractor shall adhere to the following requirements in performance of Statement of Work:

• Provide a Project Director for all Contractor employees assigned to the contract who will manage all personnel matters.

• Avoid discussing administrative and personnel matters affecting Contractor employees with the COR or DTS Program Staff.

• Ensure close communication and coordination with the COR, reporting problems to the COR as they occur.

• Do not permit government employees to interview potential Contractor employees, discuss individual Contractor employees’ performance, approve leave, terminate Contractor employees, or assume any other responsibilities characteristic of an employer-employee relationship.

• Do not assign Contractor personnel to work under direct government supervision.

• Communicate and consistently reinforce to Contractor employees that they are not Government employees.

• Ensure proper, frequent communication with the COR regarding performance.

19.0 INFORMATION TECHNOLOGY ACCESSIBILITY (SECTION 508)

Section 508 of the Rehabilitation Act, as amended by the Workforce Investment Act of 1998 (P.L. 105-220) requires that when Federal agencies develop, procure, maintain, or use information and communication technology (ICT), it shall be accessible to people with disabilities. Federal employees and members of the public who have disabilities must have access to, and use of, information and data that is comparable to people without disabilities.

Products, platforms and services delivered as part of this work statement that are ICT, or contain ICT, must conform to the Revised 508 Standards, which are located at 36 C.F.R. § 1194.1 & Apps. A, C & D, and available at https://www.access-board.gov/guidelines-and-standards/communications-and- it/about-the-ict-refresh/final-rule/text-of-the-standards-and-guidelines

E102 / 702.10 – Web Content Accessibility Guidelines (WCAG) success criteria level A & AA are incorporated as a requirement. The referenced WCAG criteria is available at http://www.w3.org/TR/WCAG20/

Applicable Functional Performance Criteria

All functional performance criteria apply when using an alternative design or technology that achieves substantially equivalent or greater accessibility and usability by individuals with disabilities than would be provided by conformance to one or more of the requirements in Chapters 4-6 of the Revised 508 Standards, or when Chapters 4-6 do not address one or more functions of ICT.

Applicable Requirements for Software and Web Products

Web deliverables/tools and access shall conform to the following standards:

• E207 – WCAG Level A & AA Success Criteria

• E302 – Functional Performance Criteria

• E502 – Interoperability with Assistive Technology

• E503 – Application

Electronic Documents and/or Support Services

All services and deliverables such as reports, training materials, support documentation and plans, shall conform to the following standards:

• E205 – WCAG Level A & AA Success Criteria

• E302 – Functional Performance Criteria

• E602 – Support Documentation

• E603 – Support Services https://www.access-board.gov/guidelines-and-standards/communications-and-it/about-the-ict-refresh/final-rule/text-of-the-standards-and-guidelines https://www.access-board.gov/guidelines-and-standards/communications-and-it/about-the-ict-refresh/final-rule/text-of-the-standards-and-guidelines https://www.access-board.gov/guidelines-and-standards/communications-and-it/about-the-ict-refresh/final-rule/text-of-the-standards-and-guidelines https://www.access-board.gov/guidelines-and-standards/communications-and-it/about-the-ict-refresh/final-rule/text-of-the-standards-and-guidelines http://www.w3.org/TR/WCAG20/

EXHIBIT I

DTS Statutory, Regulatory and Additional Activity

Statutory Activity

• Section 8

• Section 202

• Section 515

• Low Income Housing Tax Credit (LIHTC)

• Comparable state and local programs

Regulatory Activity

• Manufactured homes titled as real-estate

• Manufactured homes titled as personal property

• Manufactured housing communities, instrumentalists, non-profits, or residents

• Manufactured housing communities with specified tenant pad lease protections

• Small, multifamily, rental properties

• Multifamily energy or water efficiency improvement financing

• Single family energy or water efficiency improvement financing

• Affordable homeownership preservation

• HUD’s Rental Assistance Demonstration

• Purchase and rehabilitation financing of distressed properties

• Housing in high needs rural regions

• Housing for high needs rural populations

• Rural small financial institution financing in rural housing

• Rural small multifamily rental properties

Additional Activity

• Rehabilitation of single-family homes

• Residential economic diversity

• Support for loan purchases from certified community development financial institutions (CDFIs) that serve the rural housing market.

• Disaster preparedness and weather resiliency