Statement of work for Rent Comp.pdf

Statement of Work for

Rent Comparability Studies on Section 8 Units

A. Background & Objectives

Section 8 laws and administrative procedures require HUD obtain & review Rent

Comparability Studies (RCSs) when initially renewing most Section 8 contracts and when processing some rent increases using the Annual Adjustment Factors. The market rents resulting from these studies determine the rents owners can receive and, hence, greatly influence whether an owner will renew & continue providing assisted housing or opt-out of the Section 8 contract and convert to unassisted, market rent housing. The market rents set in these studies also drive HUD's outlays for Section 8 project-based subsidy. In most cases, owners hire the appraiser and submit the RCS to HUD. However, in some cases HUD must directly contract for the RCS. HUD is required to purchase a study when the owner elects to mark rents up to market under Option 1 of HUD's Policy. This request seeks appraisers to prepare RCSs on these mark-up-to-market cases.

B. Scope of Services

1. The contractor shall prepare Rent Comparability Studies for Section 8 contracts identified by the DESIGNATED PROGRAM OFFICIAL. The contractor shall prepare the study in accordance with the procedures set forth Chapter 9 of Section 8 Renewal Policy Guidance for the Renewal of Project-Based Section 8 Contracts. The Policy is available at:

http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_14528.pdf

2. The contractor shall furnish all personnel, material, supplies, equipment, transportation and facilities necessary to provide the services required by this contract.

C. Tasks Required in Preparing an RCS

1. The contractor shall perform the tasks required by Chapter 9 of the

Section 8 Renewal Guidance for Renewal of Project-Based Section 8

Contracts.

identifying unit types the RCS must cover and classifying unit types as primary or secondary.

inspecting and photographing the property and documenting the project's condition, appeal and other characteristics.

identifying the property's market area and assessing the neighborhood surrounding the property.

http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_14528.pdf

2. Selecting comparables. For each primary unit type, the contractor must try to locate five comparable units that best meet the six conditions in the Policy. If the contractor cannot locate five properties that meet all six conditions, the contractor shall select comparables in accordance with the guidance in the

Policy.

3. Collecting & documenting data on comparables. The contractor must collect data as required by the Policy and document the data as required by the

Policy. For each primary unit type, the contractor must prepare a Comparable

Property Profile and a Rent Comparability Grid (Form HUD 92273-S8). The profile must contain at least the information required by the Policy. The contractor must prepare the Rent Grid in accordance with the narrative instructions in the Policy. The appraiser should use HUD's Excel form to prepare the Grid, unless the DESIGNATED PROGRAM OFFICIAL agrees to another method of filing in the Grid.

4. Computing an adjusted rent for each primary unit type as directed in the

Policy. The contractor must take care to comply with the Policy's direction on non-shelter services.

5. Using the adjusted rents to derive a market rent for each unit type as directed in the Policy.

6. Preparing the report in the format required by the Policy. The report must comply with the Policy. Narratives required in the report must be concise but contain enough information that a person not familiar with the properties and market areas involved can understand how the appraiser arrived at his/her conclusions.

D. Who Can/Can't Perform the Work Requested

1. The Rent Comparability Study must be prepared by, or under the direction of, a state-certified general appraiser who meets all of the qualifications in the

Policy. That appraiser must sign and take full responsibility for the report, but an appraisal assistant may contribute to any of the tasks if: 1) the assistant is employed by the same firm as the appraiser; and 2) the report identifies the roles the assistant appraiser performed.

2. The contractor shall not employ or subcontract with any person who is a current or former civilian employee of the U.S. government if the employment of that person would create a conflict of interest, an appearance of any conflict, or otherwise conflict with Federal or HUD ethics rules. The contractor shall be responsible for resolving any actual or appearance of a conflict of interest and shall not rely on HUD to resolve the issue through reassignment of workload or any other means.

E.

E. Deliverables and Schedule Requirements

Within 30 calendar days of receipt of HUD's RCS order or within any alternate time agreed to by the DESIGNATED PROGRAM OFFICIAL, the contractor shall submit two sets of the following, in hard copy, to the DESIGNATED PROGRAM OFFICIAL. Each of these materials must meet all requirements of the Policy. If the DESIGNATED PROGRAM

OFFICIAL requests it, the contractor must submit the Rent Comp Grid in Excel on disk or via email.

1. Appraiser's Transmittal Letter

2. Scope of Work

3. Description of Subject Property (including color photograph)

4. Identification of the Subject's Market Area

5. Description of Neighborhood

6. Narrative Describing Selection of Comparables

7. Locator map for Subject and Comparables

8. Rent Comparability Grid (HUD 92273-S8) for Each Primary Unit

Type

9. Narrative explaining adjustments and market rent conclusions (one set of explanations for each Rent Grid)

10. Comparable Property Profile for each Comparable

11. Appraiser's Certification

12. Appraiser's License (only if relying upon temporary license)

F. Disclosure of information.

Except as specifically authorized elsewhere in this contract or as directed by the

DESIGNATED PROGRAM OFFICIAL or Contracting Officer, the contractor shall not disclose any information about the conditions or management of properties to any party.