SOO for Vendor Provided Plan for MFH Physical Inspection Pilot.pdf

Statement of Objectives for Vendor Provided Plan for Multifamily Housing Physical Inspection Pilot

Introduction:

USDA’s Rural Housing Agency’s (the “Agency”) is looking to evaluate the technical feasibility and business aspects of transitioning to a new multifamily housing physical inspection protocol.

The new physical inspection protocol is based on the industry standard used by Fannie Mae (see Fannie Mae Inspection Guide and the MBA Reference Guide: Commercial and Multifamily Property Inspection Reports). Although this protocol has proved effective for private lenders and industry leaders like Fannie Mae and Freddie Mac, the Agency would like to test the “proof of concept” of the new protocol for federally assisted multifamily housing by conducting a pilot inspection program in fiscal year 2022.

Based on the above, the Agency is issuing a request for information (RFI) to determine if there are vendors who have experience designing sufficiently similar pilot program. The information gathered will assist with the development of market research and the development of a possible development of an acquisition strategy.

Background:

The Agency is researching the potential of procuring the services of a vendor to design a physical inspection pilot program to test the reliability and effectiveness of a new physical inspection protocol. As stated above, the new protocol is based on the industry standard used by Fannie Mae (see Fannie Mae Inspection Guide and the MBA Reference Guide: Commercial and Multifamily Property Inspection Reports). The pilot would be used to test the “proof of concept” of using qualified third-party inspectors to conduct inspections using the standard MBA inspection form 3.03 (attached.) and the Fannie Mae rating scale. Inspections would be conducted using the Fannie Mae inspection standard and inspectors would be required to complete the tabs listed below of MBA form 3.03:

• General Information tab

• Physical Condition and DM tab

• Photos tab

• Rent Roll tab

• Management Interview tab

• Multifamily tab

• Fannie Mae Assessment tab

Objectives of the Pilot:

The suitable vendor must be capable of providing a plan for conducting the physical inspection pilot program that meets the criteria below:

• The plan must define the purpose, goals, objectives, and scope of the pilot/proof of concept demonstration project.

• The plan must establish the success criteria for the pilot, with input from all stakeholders, technical staff, records management staff, and users.

• The plan must outline the benefits of conducting a pilot and risks of not doing so.

• The plan must establish an administrative infrastructure to support and guide pilot project activities.

• The plan must recommend an acquisition strategy and establish the time- period need to conduct the pilot.

• The plan must define the evaluation strategy that will be used test the criteria of success.

• The plan must define how the Agency can monitor the quality of inspections during the pilot and define a set of rules for settling disputes over performance.